<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

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

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">WASHINGTON, D.C. 20549</P>

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

<P STYLE="font: 18pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM S-8</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">Registration Statement Under the Securities
Act of 1933</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Novation Companies, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 7pt; text-align: center">Exact name of registrant as specified
in its charter</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: 10%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 37%; padding-top: 2pt; padding-bottom: 2pt; text-align: center">Maryland</TD>
    <TD STYLE="width: 10%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 33%; padding-top: 2pt; padding-bottom: 2pt; text-align: center">74-2830661</TD>
    <TD STYLE="width: 10%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">State or other jurisdiction of incorporation or organization</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">IRS Employer Identification Number</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-align: center">9229 Ward Parkway, Suite 340</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2pt; text-align: center">Kansas City, MO</P></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">64114</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Address of Principal Executive Offices</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Zip Code</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>2015 Incentive Stock Plan</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Full Title of the Plan</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-align: center">David W. Pointer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Chief Executive Officer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Novation Companies, Inc.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">9229 Ward Parkway, Suite 340<BR>
        Kansas City, MO 64114</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2pt; text-align: center">(816) 237-7000</P></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Name, Address and Telephone Number of Agent for Service</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 15pt 0 7pt; text-indent: 0.25in">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>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 29%; padding-top: 2pt; padding-bottom: 2pt">Large accelerated filer</TD>
    <TD STYLE="width: 3%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9744;</FONT></TD>
    <TD STYLE="width: 36%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 29%; padding-top: 2pt; padding-bottom: 2pt">Accelerated filer</TD>
    <TD STYLE="width: 3%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9744;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">Non-accelerated filer</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9744;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">Smaller reporting company</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9745;</FONT></TD></TR>
<TR>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">Emerging growth company</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9744;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 15pt 0 0; text-indent: 0.25in">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.&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Arial Unicode MS,sans-serif; color: #333333">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 7pt; text-align: center; text-indent: 0.25in"><B>CALCULATION
OF REGISTRATION FEE</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">
    <TD STYLE="width: 32%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Title of Securities to be Registered</B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Amount to be Registered <SUP>1</SUP></B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Proposed Maximum Offering Price per Share <SUP>2</SUP></B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Proposed Maximum Aggregate Offering Price <SUP>2</SUP></B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 16%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Amount of Registration Fee</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">Common Stock, par value $0.01 per share</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">3,926,211</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">$0.028</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">$109,934</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">$14.27</TD></TR>
</TABLE>
<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><SUP>1</SUP></TD><TD>In addition, pursuant to Rule 416(c) under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), this
Registration Statement also covers an indeterminate number of interests to be offered or sold pursuant to the employee benefit
plan described herein.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><SUP>2</SUP></TD><TD>Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(c) and Rule 457(h) under the Securities
Act, based on the average of the high and low sales price per share of the common stock of the Registrant as reported on the OTC
Pink Open Market on September 16, 2020.</TD></TR></TABLE>

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

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXPLANATORY NOTE</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Novation Companies, Inc. (the &ldquo;Company,&rdquo;
 &ldquo;Novation,&rdquo; &ldquo;we,&rdquo; or &ldquo;us&rdquo;) has prepared this registration statement in accordance with the
requirements of Form S-8 under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), to register 3,926,211
shares of our common stock, par value $0.01 per share (&ldquo;Common Stock&rdquo;), issuable pursuant to our 2015 Incentive Stock
Plan (as amended, the &ldquo;2015 Incentive Plan&rdquo;). We previously registered (i) 5,397,974 shares of Common Stock issuable
in the aggregate under both the 2015 Incentive Plan and our Amended and Restated 2004 Incentive Stock Plan (as amended, the &ldquo;A&amp;R
2004 Plan&rdquo;) in a Registration Statement on Form S-8 filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;)
on August 7, 2015 (Registration No. 333-206184), (ii) 3,500,000 shares of Common Stock issuable under the A&amp;R 2004 Plan in
a Registration Statement on Form S-8 filed with the SEC on June 19, 2014 (Registration No. 333-196909) and (iii) 2,500,000 shares
of Common Stock issuable under the NovaStar Financial, Inc. 2004 Incentive Stock Plan (the &ldquo;NovaStar 2004 Plan&rdquo;) in
a Registration Statement on Form S-8 filed with the SEC on June 30, 2004 (Registration No. 333-116998). Pursuant to General Instruction
E to Form S-8, the contents of the prior registration statements relating to our 2015 Incentive Plan, A&amp;R 2004 Plan and NovaStar
2004 Plan, and all periodic reports that we filed after such registration statements to maintain current information about us,
are hereby incorporated by reference.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This registration statement includes a
reoffer prospectus prepared in accordance with Part I of Form S-3 under the Securities Act. The reoffer prospectus may be used
by selling shareholders for reoffers and resales of our Common Stock acquired pursuant to our employee benefit plans.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART I</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN THE SECTION
10(a) PROSPECTUS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The documents containing the information
specified in Part I will be sent or given to employees, officers, directors or others as specified by Rule 428(b)(1) under the
Securities Act. In accordance with the rules and regulations of the SEC and the instructions to Form S-8, such documents are not
being filed with the SEC either as part of this registration statement or as a prospectus or prospectus supplement pursuant to
Rule 424 under the Securities Act. These documents and the documents incorporated by reference in this registration statement
pursuant to Item 3 of Part II of this registration statement, taken together, constitute a prospectus that meets the requirements
of Section 10(a) of the Securities Act.&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>12,170,952 SHARES OF COMMON STOCK</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOVATION COMPANIES, INC.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 40.5pt">This prospectus relates to the reoffer
and resale from time to time of up to 12,170,952 shares of common stock, par value $0.01 per share (&ldquo;Common Stock&rdquo;),
of Novation Companies, Inc. (the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;our&rdquo; or &ldquo;us&rdquo;), by certain selling
shareholders named herein.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 40.5pt">The selling shareholders may offer and
sell the shares of Common Stock described in this prospectus in a number of different ways and at varying prices. The selling shareholders
may sell any, all or none of such shares and we do not know when or in what amount the selling shareholders may sell such shares.
The inclusion of such shares in this prospectus does not necessarily represent a present intention by the selling shareholders
to sell any or all such shares. We will not receive any of the proceeds from the offering or sale of such shares by the selling
shareholders.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Common Stock is traded on the OTC Pink
Open Market under the symbol &ldquo;NOVC&rdquo;. On September 16, 2020, the closing price for our Common Stock as reported by the
OTC Pink Open Market was $0.028.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B><I>Investing in our Common Stock involves
a high degree of risk. See &ldquo;<FONT STYLE="color: blue"><U>Risk Factors</U></FONT>&rdquo; beginning on page I-2 for a discussion
of information that should be considered in connection with an investment in our Common Stock.</I></B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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/120% Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">The date of this prospectus is September 21, 2020.&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="TableOfContents"></A><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 7pt; 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: rgb(204,238,255)">
    <TD STYLE="width: 94%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#PROSPECTUSSUMMARY">PROSPECTUS
    SUMMARY</A></FONT></TD>
    <TD STYLE="width: 6%; padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#PROSPECTUSSUMMARY">I
    - 1</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#SPECIALNOTEREGARDINGFORWARDLOOKINGSTATEMENTS">SPECIAL
    NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#SPECIALNOTEREGARDINGFORWARDLOOKINGSTATEMENTS">I
    - 2</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#RISKFACTORS">RISK FACTORS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#RISKFACTORS">I - 3</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#USEOFPROCEEDS">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#USEOFPROCEEDS">I - 7</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#SELLINGSHAREHOLDERS">SELLING SHAREHOLDERS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#SELLINGSHAREHOLDERS">I - 7</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#PLANOFDISTRIBUTION">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#PLANOFDISTRIBUTION">I - 8</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#LEGALMATTERS">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#LEGALMATTERS">I - 10</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#EXPERTS">EXPERTS</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#EXPERTS">I - 10</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#DISCLOSUREOFCOMMISSIONPOSITIONONINDEMNIFICATIONFORSECURITIESACTLIABILITIES">DISCLOSURE
    OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#DISCLOSUREOFCOMMISSIONPOSITIONONINDEMNIFICATIONFORSECURITIESACTLIABILITIES">I
    - 10</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#INCORPORATIONBYREFERENCE">INCORPORATION
    BY REFERENCE</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#INCORPORATIONBYREFERENCE">I - 10</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#WHEREYOUCANFINDMOREINFORMATION">WHERE
    YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="padding-top: 1.5pt; padding-bottom: 1.5pt"><FONT STYLE="color: Blue"><A HREF="#WHEREYOUCANFINDMOREINFORMATION">I
    - 11</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 3pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus is part of a registration
statement we filed with the Securities and Exchange Commission. You should rely only on the information provided or incorporated
by reference in this prospectus or any related supplement. We have not authorized anyone else to provide you with different information.
The selling shareholders will not make an offer to sell these securities in any jurisdiction where an offer or sale is not permitted.
You should assume that the information appearing in this prospectus is accurate as of the date on the front cover of this prospectus
only, regardless of the time of delivery of this prospectus or of any sale of our Common Stock. Our business, financial condition,
results of operations and prospects may have changed since that date.</P>

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

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

<!-- Field: Page; Sequence: 5; Options: NewSection -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="PROSPECTUSSUMMARY"></A><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>This summary highlights selected information
contained elsewhere or incorporated by reference in this prospectus. This summary may not contain all the information that you
should consider before determining whether to invest in our securities. You should read this entire prospectus carefully, including
the information included in the &ldquo;<FONT STYLE="color: blue"><U>Risk Factors</U></FONT>&rdquo; section, as well as our consolidated
financial statements, notes to the consolidated financial statements and the other information incorporated by reference into this
prospectus, before making an investment decision.</I></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Overview</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Novation Companies, Inc. and its
subsidiaries (the &ldquo;Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo;, or &ldquo;our&rdquo;) through our wholly-owned subsidiary
Healthcare Staffing, Inc. acquired on July 27, 2017, provides outsourced health care staffing and related services in the State
of Georgia. We also previously owned a portfolio of mortgage securities which generated earnings to support on-going financial
obligations through the end of 2018. The mortgage securities were sold during 2018 for a total of $13 million.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock, par value $0.01 per
share, is traded on the OTC Pink Open Market under the symbol &ldquo;NOVC&rdquo;. Our website is <I>www.novationcompanies.com</I>.
The information contained on, or that can be accessed through, our website is not a part of this prospectus.&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 6; Options: NewSection -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="SPECIALNOTEREGARDINGFORWARDLOOKINGSTATEMENTS"></A><B>SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The information included or incorporated
by reference in this prospectus contains &ldquo;forward-looking statements&rdquo; within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;) regarding Novation Companies, Inc. and its business. Forward-looking
statements are those that predict or describe future events, do not relate solely to historical matters and include statements
regarding management&rsquo;s beliefs, estimates, projections, and assumptions with respect to, among other things, our future operations,
business plans and strategies, as well as industry and market conditions, all of which are subject to change at any time without
notice. Words such as &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;promise,&rdquo; &ldquo;plan,&rdquo;
and other expressions or words of similar meanings, as well as future or conditional auxiliary verbs such as &ldquo;would,&rdquo;
 &ldquo;should,&rdquo; &ldquo;could,&rdquo; or &ldquo;may&rdquo; are generally intended to identify forward-looking statements.
Risks, uncertainties, contingencies, and developments, including those discussed in &ldquo;Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations&rdquo; in the Company&rsquo;s periodic reports and those identified in &ldquo;Risk
Factors&rdquo;, could cause our future operating results to differ materially from those set forth in any forward-looking statement.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any
obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements
contained herein to reflect future results, events or developments.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 22pt 0 0; text-align: center"></P>

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 22pt 0 0; text-align: center"><A NAME="RISKFACTORS"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Investing in our Common Stock involves
a high degree of risk. Investors should carefully consider all of the information set forth in this Prospectus, the risk factors
in the Company&rsquo;s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and the risk factors and other information
in the Company&rsquo;s subsequent filings with the SEC, before deciding to invest in our Common Stock. Such risks disclosed therein
are not exhaustive, and additional risks and uncertainties that we are unaware of may become important factors that affect us.
If any of these risks actually occur, our business, financial condition or operating results may suffer, the trading price of
our Common Stock could decline, and you may lose all or part of your investment.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="USEOFPROCEEDS"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The shares of Common Stock offered
hereby are being registered for the account of the selling shareholders identified in this prospectus. See &ldquo;<FONT STYLE="color: blue"><U>Selling
Shareholders</U></FONT>&rdquo;. All net proceeds from the sale of the Common Stock will go to the shareholders who
offer and sell their shares. We will not receive any part of the proceeds from such sales of Common Stock.</P>

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

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="SELLINGSHAREHOLDERS"></A>SELLING SHAREHOLDERS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">This prospectus relates to the reoffer
and resale from time to time of up to 12,170,952 shares of Common Stock issued to the selling shareholders, or underlying equity
awards issued to the selling shareholders, under our employee benefit plans. The selling shareholders may sell any, all or none
of such shares and we do not know when or in what amount the selling shareholders may sell such shares. The inclusion of such shares
in the table below does not necessarily represent a present intention by the selling shareholders to sell any or all such shares.
However, for the purposes of the table below, we have assumed that, after the completion of this offering, all Common Stock covered
by this prospectus has been sold.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">The following table sets forth (i)&nbsp;the
number of shares of Common Stock beneficially owned by each selling shareholder as of September 18, 2020, (ii)&nbsp;the number
of shares to be offered for resale by each selling shareholder and (iii)&nbsp;the number and percentage of shares of Common Stock
that each selling shareholder will beneficially own after completion of the offering, assuming that all shares of Common Stock
that may be offered for resale are sold and no other shares of Common Stock beneficially owned by the selling shareholders also
are sold.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Unless otherwise indicated, the address
for each of the selling shareholders named below is c/o Novation Companies, Inc., 9229 Ward Parkway, Suite 340, Kansas City, MO
64114.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 8 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->
<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="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Shares Beneficially Owned After the Offering</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Name</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Number of Shares Beneficially Owned</B></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Number of Shares to be Offered for Resale</B></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 2.25pt solid; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Number</B></TD>
    <TD STYLE="border-top: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-top: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 2.25pt solid; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Percentage <FONT STYLE="font-size: 10pt"><SUP>1</SUP></FONT></B></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: bottom; width: 35%; padding-top: 2pt; padding-bottom: 2pt">David W. Pointer</TD>
    <TD STYLE="vertical-align: bottom; width: 14%; padding-top: 2pt; padding-bottom: 2pt; text-align: right">3,000,000</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 14%; padding-top: 2pt; padding-bottom: 2pt; text-align: right">3,000,000</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 14%; padding-top: 2pt; padding-bottom: 2pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; padding-top: 2pt; padding-right: -6.7pt; padding-bottom: 2pt; text-align: center">&mdash;</TD>
    <TD STYLE="vertical-align: bottom; width: 2%; padding-top: 2pt; padding-bottom: 2pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Carolyn K. Campbell</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">565,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">565,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 3pt; text-align: center">&mdash;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Barry A. Igdaloff</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">5,939,286</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">5,939,286</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 3pt; text-align: center">&mdash;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Howard M. Amster</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">500,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">500,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 3pt; text-align: center">&mdash;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Lee D. Keddie</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">1,333,333</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">1,333,333</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 3pt; text-align: center">&mdash;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Howard T. Eriksen</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">1,333,333</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">833,333</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right">500,000</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">*</TD></TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">*</TD><TD>Less than 1%</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD>Based on 114,655,893 shares of Common Stock outstanding as of September 18, 2020. Shares of Common Stock issuable upon exercise
of options, warrants or other rights or the conversion of other convertible securities beneficially owned that are exercisable
or convertible within 60 days are deemed outstanding for the purpose of computing the percentage ownership of the person holding
such securities and rights.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 9 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="PLANOFDISTRIBUTION"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are registering the shares of Common
Stock covered by this prospectus for the selling shareholders listed in the table set forth under the caption &ldquo;Selling Shareholders&rdquo;.
We will bear all expenses in connection with the preparation of this prospectus. The selling shareholders will bear all expenses
associated with the sale of the shares of Common Stock. We will not receive any of the proceeds from the offering or sale of the
selling shareholders&rsquo; shares of Common Stock.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders may offer their
shares of our Common Stock directly or through pledgees, donees, transferees or other successors-in-interest in one or more of
the following transactions:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>On any stock exchange on which the shares of Common Stock may be listed at the time of sale;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>In negotiated transactions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>In the over-the-counter market; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>In a combination of any of the above transactions.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders may offer their
shares of Common Stock at any of the following prices:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Fixed prices that may be changed;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Market prices prevailing at the time of sale;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>Prices related to such prevailing market prices; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>At negotiated prices.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Because selling shareholders may be deemed
to be &ldquo;underwriters&rdquo; within the meaning of Section 2(11) of the Securities Act, the selling shareholders will be subject
to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus that qualify
for sale pursuant to Rule 144 promulgated under the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders will act independently
of us in making decisions with respect to the timing, manner and size of each sale. We have advised the selling shareholders that
the anti-manipulative rules of Regulation M under the Exchange Act may apply to sales in the market and have informed them of the
possible need for delivery of copies of this prospectus.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Common Stock is traded on the OTC Pink
Open Market under the symbol &ldquo;NOVC&rdquo;.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders may effect such
transactions by selling shares of Common Stock to or through broker-dealers, and all such broker-dealers may receive compensation
in the form of discounts, concessions, or commissions from the selling shareholders and/or the purchasers of shares of Common
Stock for whom such broker-dealers may act as agents or to whom they sell as principals, or both (which compensation as to a particular
broker-dealer might be in excess of customary commissions).</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 10 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any broker-dealer acquiring shares of Common
Stock from the selling shareholders may sell the shares either directly, in its normal market-making activities, through or to
other brokers on a principal or agency basis or to its customers. Any such sales may be at prices then prevailing on the OTC Pink
Open Market or at prices related to such prevailing market prices or at negotiated prices to its customers or a combination of
such methods. The selling shareholders and any broker-dealers that act in connection with the sale of the shares of Common Stock
hereunder might be deemed to be &ldquo;underwriters&rdquo; within the meaning of Section 2(11) of the Securities Act; any commissions
received by them and any profit on the resale of shares as principal might be deemed to be underwriting discounts and commissions
under the Securities Act. Any such commissions, as well as other expenses incurred by the selling shareholders and applicable transfer
taxes, are payable by the selling shareholders.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders reserve the right
to accept, and together with any agent of the selling shareholder, to reject in whole or in part any proposed purchase of the shares
of Common Stock. The selling shareholders will pay any sales commissions or other seller&rsquo;s compensation applicable to such
transactions.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have not registered or qualified offers
and sales of shares of Common Stock under the laws of any country other than the United States. To comply with certain states&rsquo;
securities laws, if applicable, the selling shareholders will offer and sell their shares of Common Stock in such jurisdictions
only through registered or licensed brokers or dealers. In addition, in certain states the selling shareholders may not offer or
sell shares of Common Stock unless we have registered or qualified such shares for sale in such states or we have complied with
an available exemption from registration or qualification.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">There can be no assurance that the selling
shareholders will sell any or all of the shares offered by them hereunder or otherwise.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="LEGALMATTERS"></A><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Certain legal matters in connection with
the issuance of the shares of Common Stock offered hereby have been passed upon for us by Olshan Frome Wolosky LLP, 1325 Avenue
of the Americas, New York, New York 10019.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 11 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="EXPERTS"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Boulay PLLP, our independent registered
public accounting firm, has audited our consolidated financial statements as of December 31, 2019 and 2018, and for the years then
ended, contained in our Annual Report on Form 10-K for the year ended December 31, 2019. These financial statements are incorporated
by reference in this prospectus and elsewhere in this registration statement. Such financial statements are incorporated by reference
in reliance on the reports given by such independent accounting firm upon its authority as an expert in auditing and accounting.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="DISCLOSUREOFCOMMISSIONPOSITIONONINDEMNIFICATIONFORSECURITIESACTLIABILITIES"></A>DISCLOSURE OF COMMISSION POSITION ON</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers or persons controlling the Company, we have been advised
that the SEC&rsquo;s opinion is that such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="INCORPORATIONBYREFERENCE"></A><B>INCORPORATION BY REFERENCE</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following documents we filed with the
SEC are incorporated by reference in this prospectus:</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC on May 13, 2020;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>Our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on August 13, 2020; and</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">4.</TD><TD>The description of our Common Stock contained in Exhibit 4.6 to our Annual Report on Form 10-K for the fiscal year ended December
31, 2019, filed with the SEC on March 23, 2020.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.75in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Additionally, all documents we subsequently
file with the SEC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective
amendment that indicates that all securities offered herein have been sold or that deregisters all securities then remaining unsold,
shall be deemed to be incorporated by reference herein and to be part hereof from the respective dates of filing of such documents.
Any statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed
to be modified or superseded for purposes hereof or of the related prospectus to the extent that a statement contained herein
or in any other subsequently filed document that is also incorporated or deemed to be incorporated herein modifies or supersedes
such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute
a part of this registration statement.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 12 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You may request a copy of these filings,
excluding the exhibits to such filings which we have not specifically incorporated by reference in such filings, at no cost, by
writing or telephoning us at the following address:</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">Novation Companies, Inc.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">9229 Ward Parkway, Suite 340</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">Kansas City, MO 64114</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">Attention: Chief Financial Officer</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center">(816) 237-7000</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="WHEREYOUCANFINDMOREINFORMATION"></A><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have filed with the SEC a registration
statement on Form S-8, including exhibits and schedules, under the Securities Act, with respect to the shares of our Common Stock
to be sold pursuant to this prospectus. This prospectus does not contain all the information contained in the registration statement.
For additional information with respect to the Company and the shares that may be sold pursuant to this prospectus, we refer you
to the registration statement and the exhibits and schedules attached to the registration statement. Statements contained in this
prospectus as to the contents of any contract, agreement or other document referred to are not necessarily complete. When we make
such statements, we refer you to the copies of the contracts or documents that are filed as exhibits to the registration statement
because those statements are qualified in all respects by reference to those exhibits.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are also subject to the informational
requirements of the Exchange Act. In accordance with the Exchange Act, we file periodic reports, proxy and information statements
and other information with the SEC. Our filings with the SEC are also available to the public over the Internet at the SEC&rsquo;s
website at www.sec.gov. You may also find documents we filed on our website at www.novationcompanies.com. Information contained
in or accessible through our website does not constitute a part of this prospectus.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 13; Options: NewSection -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">I-<!-- Field: Sequence; Type: Arabic; Value: 8; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN THE REGISTRATION
STATEMENT</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 3. Incorporation of Certain Documents by Reference.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following documents we filed with the
SEC are incorporated by reference in this prospectus:</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.</TD><TD>Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.</TD><TD>Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC on May 13, 2020;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.</TD><TD>Our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on August 13, 2020; and</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.</TD><TD>The description of our Common Stock contained in Exhibit 4.6 to our Annual Report on Form 10-K for the fiscal year ended December
31, 2019, filed with the SEC on March 23, 2020.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 40.5pt">Additionally, all documents we subsequently
file with the SEC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment
that indicates that all securities offered herein have been sold or that deregisters all securities then remaining unsold, shall
be deemed to be incorporated by reference herein and to be part hereof from the respective dates of filing of such documents. Any
statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be
modified or superseded for purposes hereof or of the related prospectus to the extent that a statement contained herein or in any
other subsequently filed document that is also incorporated or deemed to be incorporated herein modifies or supersedes such statement.
Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of
this registration statement.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 4. Description of Securities.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Not applicable.&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 14; Options: NewSection -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 5. Interest of Named Experts and Counsel.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Not applicable.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 6. Indemnification of Officers and Directors.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Maryland General Corporation Law (&ldquo;MGCL&rdquo;)
permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the
corporation and its shareholders for money damages except for liability resulting from (a) actual receipt of an improper benefit
or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material
to the cause of action. The charter of the Registrant contains such a provision which eliminates such liability to the maximum
extent permitted by Maryland law.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The charter of the Registrant requires
it, to the full extent required or permitted by Maryland law, to indemnify (a) its present and former directors and officers, whether
serving the Registrant or at its request any other entity, including the advance of expenses under the procedures and to the full
extent permitted by law and (b) other employees and agents to such extent as shall be authorized by the Board of Directors or the
Registrant&rsquo;s bylaws and be permitted by law. The bylaws of the Registrant establish certain procedures for indemnification
and advancement of expenses pursuant to Maryland law and the Registrant&rsquo;s charter.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The MGCL requires a corporation (unless
its charter provides otherwise, which the Registrant&rsquo;s charter does not) to indemnify a director or officer who has been
successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made, or threatened to be made,
a party by reason of his or her service in that capacity or in the defense of any claim, issue or matter in the proceeding, against
reasonable expenses incurred by him or her in connection with the proceeding, claim, issue, or matter in which he or she has been
successful. The MGCL permits a corporation to indemnify its present and former directors and officers, among others, against judgments,
penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they
may be made, or threatened to be made, a party by reason of their service in those or other capacities unless it is established
that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed
in bad faith or (ii) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper
personal benefit in money, property or services, or (c) in the case of any criminal proceeding, the director or officer had reasonable
cause to believe that the act or omission was unlawful. However, under the MGCL, a Maryland corporation may not indemnify for
an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that personal
benefit was improperly received, unless in either case a court orders indemnification, and then only for expenses. In addition,
the MGCL permits a corporation to advance reasonable expenses to a director or officer upon the corporation&rsquo;s receipt of
(x) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct
necessary for indemnification by the corporation and (y) a written undertaking by him or her or on his or her behalf to repay
the amount paid or reimbursed by the corporation if it shall ultimately be determined that the standard of conduct was not met.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 15 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Registrant has entered into indemnification
agreements with certain of its directors and officers. Under the indemnification agreements, the Registrant will indemnify each
indemnitee to the maximum extent permitted by Maryland law for liabilities and expenses arising out of the indemnitee&rsquo;s service
to the Registrant or other entity for which such indemnitee is or was serving at the request of the Registrant. The indemnification
agreements also provide (a) for the advancement of expenses by the Registrant, subject to certain conditions, (b) a procedure for
determining an indemnitee&rsquo;s entitlement to indemnification and (c) for certain remedies for the indemnitee. In addition,
the indemnification agreements require the Registrant to use its reasonable best efforts to obtain directors and officers liability
insurance on terms and conditions deemed appropriate by the Registrant&rsquo;s Board of Directors.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Registrant maintains insurance for
its directors and officers against certain liabilities, including liabilities under the Securities Act, under insurance policies,
the premiums of which are paid by the Registrant. The effect of these insurance policies is to indemnify any directors or officers
of the Registrant against expenses, judgments, attorneys&rsquo; fees and other amounts paid in settlements incurred by a director
or officer upon a determination that such person acted in accordance with the requirements of such insurance policy.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 7. Exemption from Registration Claimed.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A total of 2,540,815 shares of Common Stock
that may be reoffered or resold pursuant to the reoffer prospectus included with this registration statement were issued to the
selling shareholders under the 2015 Incentive Plan in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act in transactions not involving a public offering.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 7pt"><B>Item 8. Exhibits. </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">
    <TD STYLE="width: 17%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-indent: 2pt"><FONT STYLE="color: Black"><B>Exhibit
    No.</B></FONT></TD>
    <TD STYLE="width: 83%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Black"><B>Exhibit
    Description</B></FONT></TD></TR>
<TR STYLE="background-color: #D6F0F6">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex41tos811464001_09212020.htm">4.1</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex41tos811464001_09212020.htm">2015 Incentive
    Stock Plan, as amended</A></FONT></TD></TR>
<TR>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex51tos811464001_09212020.htm">5.1</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex51tos811464001_09212020.htm">Opinion
    of Olshan Frome Wolosky LLP</A></FONT></TD></TR>
<TR STYLE="background-color: #D6F0F6">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex231tos811464001_09212020.htm">23.1</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex231tos811464001_09212020.htm">Consent
    of Boulay PLLP</A></FONT></TD></TR>
<TR>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex51tos811464001_09212020.htm">23.2</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="ex51tos811464001_09212020.htm">Consent
    of Olshan Frome Wolosky LLP (included in Exhibit 5.1)</A></FONT></TD></TR>
<TR STYLE="background-color: #D6F0F6">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#PowerofAttorney">24.1</A></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="color: Blue"><A HREF="#PowerofAttorney">Power of Attorney (included
    on the signature page hereto)</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 3pt 0 0">&nbsp;</P>

<!-- Field: Page; Sequence: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Item 9. Undertakings.</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The undersigned registrant hereby undertakes:</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or
high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>to include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><I>Provided, however</I>, that paragraphs (a)(1)(i) and (a)(1)(ii)
of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement; and</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD>To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<!-- Field: Page; Sequence: 17 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933,
each filing of the registrant&rsquo;s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of
1934 (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the registration statement 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 <I>bona fide</I> offering thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(h)</TD><TD>Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that
in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Act and will be governed by the final adjudication of such issue.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 18 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B><P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 7pt; text-indent: 0.5in">Pursuant to the requirements of the
Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Kansas City, State of Missouri, on September 21, 2020.</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="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt">NOVATION COMPANIES, INC.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 53%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 8%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 39%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 2pt; padding-left: 3pt">/s/ David W. Pointer</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">Name:</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">David W. Pointer</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">Title:</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 2pt; padding-left: 3pt">Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 -22pt; text-align: center"><A NAME="PowerofAttorney"></A><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">KNOW ALL BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints David W. Pointer and Carolyn K. Campbell and each of them, as his
or her true and lawful&nbsp;attorneys-in-fact&nbsp;and agents, each with the full power of substitution, for him or her and in
his or her name, place or stead, in any and all capacities, to sign any and all amendments to this Registration Statement (including
post-effective amendments), and to file the same, with exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said&nbsp;attorneys-in-fact&nbsp;and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully
to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said&nbsp;attorneys-in-fact&nbsp;and
agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 19 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates
indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 7pt; text-indent: 0.5in">&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">
    <TD STYLE="width: 27%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Name</B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 45%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Title</B></TD>
    <TD STYLE="width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="width: 26%; border-bottom: Black 2.25pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><B>Date</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ David W. Pointer</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">David W. Pointer</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-align: center; text-indent: 2pt">Chief Executive Officer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2pt; text-align: center; text-indent: 2pt">(principal executive
        officer)</P></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">September 21, 2020</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ Carolyn K. Campbell</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">Carolyn K. Campbell</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-align: center; text-indent: 2pt">Chief Financial Officer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0; text-align: center">(principal financial officer and principal
        accounting officer)</P></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">September 21, 2020</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ Howard M. Amster</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Howard M. Amster</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">Director</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center; text-indent: 2pt">September 21, 2020</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ Howard T. Eriksen</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">Howard T. Eriksen</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">Director</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center; text-indent: 2pt">September 21, 2020</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ Barry A. Igdaloff</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Barry A. Igdaloff</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">Director</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center; text-indent: 2pt">September 21, 2020</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">/s/ Lee D. Keddie</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">Lee D. Keddie</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center">Director</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-bottom: 2pt; text-align: center; text-indent: 2pt">September 21, 2020</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 20; Options: Last -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: center"><TD STYLE="width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

</BODY>
</HTML>
[{"type": "S-8", "sequence": "1", "filename": "s811464001_09212020.htm", "secsgml_size_bytes": 110655}]
{"company-data": {"conformed-name": "NOVATION COMPANIES, INC.", "cik": "0001025953", "assigned-sic": "6531", "irs-number": "742830661", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-248947", "film-number": "201187079"}, "business-address": {"street1": "9229 WARD PARKWAY", "street2": "SUITE 340", "city": "KANSAS CITY", "state": "MO", "zip": "64114", "phone": "8162377000"}, "mail-address": {"street1": "9229 WARD PARKWAY", "street2": "SUITE 340", "city": "KANSAS CITY", "state": "MO", "zip": "64114"}, "former-company": {"former-conformed-name": "NOVASTAR FINANCIAL INC", "date-changed": "19970723"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
Registration Statement Under the Securities
Act of 1933
Novation Companies, Inc.
Exact name of registrant as specified
in its charter
Maryland
74-2830661
State or other jurisdiction of incorporation or organization
IRS Employer Identification Number
9229 Ward Parkway, Suite 340
Kansas City, MO
64114
Address of Principal Executive Offices
Zip Code
2015 Incentive Stock Plan
Full Title of the Plan
David W. Pointer
Chief Executive Officer
Novation Companies, Inc.
9229 Ward Parkway, Suite 340
Kansas City, MO 64114
(816) 237-7000
Name, Address and Telephone Number of Agent for Service
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
2
Proposed Maximum Aggregate Offering Price
2
Amount of Registration Fee
Common Stock, par value $0.01 per share
3,926,211
$0.028
$109,934
$14.27
1
In addition, pursuant to Rule 416(c) under the Securities Act of 1933, as amended (the "Securities Act"), this
Registration Statement also covers an indeterminate number of interests to be offered or sold pursuant to the employee benefit
plan described herein.
2
Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(c) and Rule 457(h) under the Securities
Act, based on the average of the high and low sales price per share of the common stock of the Registrant as reported on the OTC
Pink Open Market on September 16, 2020.
EXPLANATORY NOTE
Novation Companies, Inc. (the "Company,"
 "Novation," "we," or "us") has prepared this registration statement in accordance with the
requirements of Form S-8 under the Securities Act of 1933, as amended (the "Securities Act"), to register 3,926,211
shares of our common stock, par value $0.01 per share ("Common Stock"), issuable pursuant to our 2015 Incentive Stock
Plan (as amended, the "2015 Incentive Plan"). We previously registered (i) 5,397,974 shares of Common Stock issuable
in the aggregate under both the 2015 Incentive Plan and our Amended and Restated 2004 Incentive Stock Plan (as amended, the "A&R
2004 Plan") in a Registration Statement on Form S-8 filed with the Securities and Exchange Commission ("SEC")
on August 7, 2015 (Registration No. 333-206184), (ii) 3,500,000 shares of Common Stock issuable under the A&R 2004 Plan in
a Registration Statement on Form S-8 filed with the SEC on June 19, 2014 (Registration No. 333-196909) and (iii) 2,500,000 shares
of Common Stock issuable under the NovaStar Financial, Inc. 2004 Incentive Stock Plan (the "NovaStar 2004 Plan") in
a Registration Statement on Form S-8 filed with the SEC on June 30, 2004 (Registration No. 333-116998). Pursuant to General Instruction
E to Form S-8, the contents of the prior registration statements relating to our 2015 Incentive Plan, A&R 2004 Plan and NovaStar
2004 Plan, and all periodic reports that we filed after such registration statements to maintain current information about us,
are hereby incorporated by reference.
This registration statement includes a
reoffer prospectus prepared in accordance with Part I of Form S-3 under the Securities Act. The reoffer prospectus may be used
by selling shareholders for reoffers and resales of our Common Stock acquired pursuant to our employee benefit plans.
PART I
INFORMATION REQUIRED IN THE SECTION
10(a) PROSPECTUS
The documents containing the information
specified in Part I will be sent or given to employees, officers, directors or others as specified by Rule 428(b)(1) under the
Securities Act. In accordance with the rules and regulations of the SEC and the instructions to Form S-8, such documents are not
being filed with the SEC either as part of this registration statement or as a prospectus or prospectus supplement pursuant to
Rule 424 under the Securities Act. These documents and the documents incorporated by reference in this registration statement
pursuant to Item 3 of Part II of this registration statement, taken together, constitute a prospectus that meets the requirements
of Section 10(a) of the Securities Act.
PROSPECTUS
12,170,952 SHARES OF COMMON STOCK
NOVATION COMPANIES, INC.
This prospectus relates to the reoffer
and resale from time to time of up to 12,170,952 shares of common stock, par value $0.01 per share ("Common Stock"),
of Novation Companies, Inc. (the "Company," "we," "our" or "us"), by certain selling
shareholders named herein.
The selling shareholders may offer and
sell the shares of Common Stock described in this prospectus in a number of different ways and at varying prices. The selling shareholders
may sell any, all or none of such shares and we do not know when or in what amount the selling shareholders may sell such shares.
The inclusion of such shares in this prospectus does not necessarily represent a present intention by the selling shareholders
to sell any or all such shares. We will not receive any of the proceeds from the offering or sale of such shares by the selling
shareholders.
Our Common Stock is traded on the OTC Pink
Open Market under the symbol "NOVC". On September 16, 2020, the closing price for our Common Stock as reported by the
OTC Pink Open Market was $0.028.
Investing in our Common Stock involves
a high degree of risk. See "
Risk Factors
" beginning on page I-2 for a discussion
of information that should be considered in connection with an investment in 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.
The date of this prospectus is September 21, 2020.
TABLE OF CONTENTS
PROSPECTUS
    SUMMARY
I
    - 1
SPECIAL
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
I
    - 2
RISK FACTORS
I - 3
USE OF PROCEEDS
I - 7
SELLING SHAREHOLDERS
I - 7
PLAN OF DISTRIBUTION
I - 8
LEGAL MATTERS
I - 10
EXPERTS
I - 10
DISCLOSURE
    OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
I
    - 10
INCORPORATION
    BY REFERENCE
I - 10
WHERE
    YOU CAN FIND MORE INFORMATION
I
    - 11
This prospectus is part of a registration
statement we filed with the Securities and Exchange Commission. You should rely only on the information provided or incorporated
by reference in this prospectus or any related supplement. We have not authorized anyone else to provide you with different information.
The selling shareholders will not make an offer to sell these securities in any jurisdiction where an offer or sale is not permitted.
You should assume that the information appearing in this prospectus is accurate as of the date on the front cover of this prospectus
only, regardless of the time of delivery of this prospectus or of any sale of our Common Stock. Our business, financial condition,
results of operations and prospects may have changed since that date.
TABLE OF CONTENTS
PROSPECTUS SUMMARY
This summary highlights selected information
contained elsewhere or incorporated by reference in this prospectus. This summary may not contain all the information that you
should consider before determining whether to invest in our securities. You should read this entire prospectus carefully, including
the information included in the "
Risk Factors
" section, as well as our consolidated
financial statements, notes to the consolidated financial statements and the other information incorporated by reference into this
prospectus, before making an investment decision.
Overview
Novation Companies, Inc. and its
subsidiaries (the "Company", "we", "us", or "our") through our wholly-owned subsidiary
Healthcare Staffing, Inc. acquired on July 27, 2017, provides outsourced health care staffing and related services in the State
of Georgia. We also previously owned a portfolio of mortgage securities which generated earnings to support on-going financial
obligations through the end of 2018. The mortgage securities were sold during 2018 for a total of $13 million.
Our common stock, par value $0.01 per
share, is traded on the OTC Pink Open Market under the symbol "NOVC". Our website is
www.novationcompanies.com
.
The information contained on, or that can be accessed through, our website is not a part of this prospectus.
I-
1
TABLE OF CONTENTS
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
The information included or incorporated
by reference in this prospectus contains "forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") regarding Novation Companies, Inc. and its business. Forward-looking
statements are those that predict or describe future events, do not relate solely to historical matters and include statements
regarding management's beliefs, estimates, projections, and assumptions with respect to, among other things, our future operations,
business plans and strategies, as well as industry and market conditions, all of which are subject to change at any time without
notice. Words such as "believe," "expect," "anticipate," "promise," "plan,"
and other expressions or words of similar meanings, as well as future or conditional auxiliary verbs such as "would,"
 "should," "could," or "may" are generally intended to identify forward-looking statements.
Risks, uncertainties, contingencies, and developments, including those discussed in "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in the Company's periodic reports and those identified in "Risk
Factors", could cause our future operating results to differ materially from those set forth in any forward-looking statement.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any
obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements
contained herein to reflect future results, events or developments.
I-
2
TABLE OF CONTENTS
RISK FACTORS
Investing in our Common Stock involves
a high degree of risk. Investors should carefully consider all of the information set forth in this Prospectus, the risk factors
in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and the risk factors and other information
in the Company's subsequent filings with the SEC, before deciding to invest in our Common Stock. Such risks disclosed therein
are not exhaustive, and additional risks and uncertainties that we are unaware of may become important factors that affect us.
If any of these risks actually occur, our business, financial condition or operating results may suffer, the trading price of
our Common Stock could decline, and you may lose all or part of your investment.
USE OF PROCEEDS
The shares of Common Stock offered
hereby are being registered for the account of the selling shareholders identified in this prospectus. See "
Selling
Shareholders
". All net proceeds from the sale of the Common Stock will go to the shareholders who
offer and sell their shares. We will not receive any part of the proceeds from such sales of Common Stock.
SELLING SHAREHOLDERS
This prospectus relates to the reoffer
and resale from time to time of up to 12,170,952 shares of Common Stock issued to the selling shareholders, or underlying equity
awards issued to the selling shareholders, under our employee benefit plans. The selling shareholders may sell any, all or none
of such shares and we do not know when or in what amount the selling shareholders may sell such shares. The inclusion of such shares
in the table below does not necessarily represent a present intention by the selling shareholders to sell any or all such shares.
However, for the purposes of the table below, we have assumed that, after the completion of this offering, all Common Stock covered
by this prospectus has been sold.
The following table sets forth (i) the
number of shares of Common Stock beneficially owned by each selling shareholder as of September 18, 2020, (ii) the number
of shares to be offered for resale by each selling shareholder and (iii) the number and percentage of shares of Common Stock
that each selling shareholder will beneficially own after completion of the offering, assuming that all shares of Common Stock
that may be offered for resale are sold and no other shares of Common Stock beneficially owned by the selling shareholders also
are sold.
Unless otherwise indicated, the address
for each of the selling shareholders named below is c/o Novation Companies, Inc., 9229 Ward Parkway, Suite 340, Kansas City, MO
64114.
I-
3
TABLE OF CONTENTS
Shares Beneficially Owned After the Offering
Name
Number of Shares Beneficially Owned
Number of Shares to be Offered for Resale
Number
Percentage
1
David W. Pointer
3,000,000
3,000,000
—
—
Carolyn K. Campbell
565,000
565,000
—
—
Barry A. Igdaloff
5,939,286
5,939,286
—
—
Howard M. Amster
500,000
500,000
—
—
Lee D. Keddie
1,333,333
1,333,333
—
—
Howard T. Eriksen
1,333,333
833,333
500,000
*
*
Less than 1%
1.
Based on 114,655,893 shares of Common Stock outstanding as of September 18, 2020. Shares of Common Stock issuable upon exercise
of options, warrants or other rights or the conversion of other convertible securities beneficially owned that are exercisable
or convertible within 60 days are deemed outstanding for the purpose of computing the percentage ownership of the person holding
such securities and rights.
I-
4
TABLE OF CONTENTS
PLAN OF DISTRIBUTION
We are registering the shares of Common
Stock covered by this prospectus for the selling shareholders listed in the table set forth under the caption "Selling Shareholders".
We will bear all expenses in connection with the preparation of this prospectus. The selling shareholders will bear all expenses
associated with the sale of the shares of Common Stock. We will not receive any of the proceeds from the offering or sale of the
selling shareholders' shares of Common Stock.
The selling shareholders may offer their
shares of our Common Stock directly or through pledgees, donees, transferees or other successors-in-interest in one or more of
the following transactions:
•
On any stock exchange on which the shares of Common Stock may be listed at the time of sale;
•
In negotiated transactions;
•
In the over-the-counter market; and
•
In a combination of any of the above transactions.
The selling shareholders may offer their
shares of Common Stock at any of the following prices:
•
Fixed prices that may be changed;
•
Market prices prevailing at the time of sale;
•
Prices related to such prevailing market prices; and
•
At negotiated prices.
Because selling shareholders may be deemed
to be "underwriters" within the meaning of Section 2(11) of the Securities Act, the selling shareholders will be subject
to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus that qualify
for sale pursuant to Rule 144 promulgated under the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.
The selling shareholders will act independently
of us in making decisions with respect to the timing, manner and size of each sale. We have advised the selling shareholders that
the anti-manipulative rules of Regulation M under the Exchange Act may apply to sales in the market and have informed them of the
possible need for delivery of copies of this prospectus.
Our Common Stock is traded on the OTC Pink
Open Market under the symbol "NOVC".
The selling shareholders may effect such
transactions by selling shares of Common Stock to or through broker-dealers, and all such broker-dealers may receive compensation
in the form of discounts, concessions, or commissions from the selling shareholders and/or the purchasers of shares of Common
Stock for whom such broker-dealers may act as agents or to whom they sell as principals, or both (which compensation as to a particular
broker-dealer might be in excess of customary commissions).
I-
5
TABLE OF CONTENTS
Any broker-dealer acquiring shares of Common
Stock from the selling shareholders may sell the shares either directly, in its normal market-making activities, through or to
other brokers on a principal or agency basis or to its customers. Any such sales may be at prices then prevailing on the OTC Pink
Open Market or at prices related to such prevailing market prices or at negotiated prices to its customers or a combination of
such methods. The selling shareholders and any broker-dealers that act in connection with the sale of the shares of Common Stock
hereunder might be deemed to be "underwriters" within the meaning of Section 2(11) of the Securities Act; any commissions
received by them and any profit on the resale of shares as principal might be deemed to be underwriting discounts and commissions
under the Securities Act. Any such commissions, as well as other expenses incurred by the selling shareholders and applicable transfer
taxes, are payable by the selling shareholders.
The selling shareholders reserve the right
to accept, and together with any agent of the selling shareholder, to reject in whole or in part any proposed purchase of the shares
of Common Stock. The selling shareholders will pay any sales commissions or other seller's compensation applicable to such
transactions.
We have not registered or qualified offers
and sales of shares of Common Stock under the laws of any country other than the United States. To comply with certain states'
securities laws, if applicable, the selling shareholders will offer and sell their shares of Common Stock in such jurisdictions
only through registered or licensed brokers or dealers. In addition, in certain states the selling shareholders may not offer or
sell shares of Common Stock unless we have registered or qualified such shares for sale in such states or we have complied with
an available exemption from registration or qualification.
There can be no assurance that the selling
shareholders will sell any or all of the shares offered by them hereunder or otherwise.
LEGAL MATTERS
Certain legal matters in connection with
the issuance of the shares of Common Stock offered hereby have been passed upon for us by Olshan Frome Wolosky LLP, 1325 Avenue
of the Americas, New York, New York 10019.
I-
6
TABLE OF CONTENTS
EXPERTS
Boulay PLLP, our independent registered
public accounting firm, has audited our consolidated financial statements as of December 31, 2019 and 2018, and for the years then
ended, contained in our Annual Report on Form 10-K for the year ended December 31, 2019. These financial statements are incorporated
by reference in this prospectus and elsewhere in this registration statement. Such financial statements are incorporated by reference
in reliance on the reports given by such independent accounting firm upon its authority as an expert in auditing and accounting.
DISCLOSURE OF COMMISSION POSITION ON
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers or persons controlling the Company, we have been advised
that the SEC's opinion is that such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.
INCORPORATION BY REFERENCE
The following documents we filed with the
SEC are incorporated by reference in this prospectus:
1.
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020;
2.
Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC on May 13, 2020;
3.
Our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on August 13, 2020; and
4.
The description of our Common Stock contained in Exhibit 4.6 to our Annual Report on Form 10-K for the fiscal year ended December
31, 2019, filed with the SEC on March 23, 2020.
Additionally, all documents we subsequently
file with the SEC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective
amendment that indicates that all securities offered herein have been sold or that deregisters all securities then remaining unsold,
shall be deemed to be incorporated by reference herein and to be part hereof from the respective dates of filing of such documents.
Any statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed
to be modified or superseded for purposes hereof or of the related prospectus to the extent that a statement contained herein
or in any other subsequently filed document that is also incorporated or deemed to be incorporated herein modifies or supersedes
such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute
a part of this registration statement.
I-
7
TABLE OF CONTENTS
You may request a copy of these filings,
excluding the exhibits to such filings which we have not specifically incorporated by reference in such filings, at no cost, by
writing or telephoning us at the following address:
Novation Companies, Inc.
9229 Ward Parkway, Suite 340
Kansas City, MO 64114
Attention: Chief Financial Officer
(816) 237-7000
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-8, including exhibits and schedules, under the Securities Act, with respect to the shares of our Common Stock
to be sold pursuant to this prospectus. This prospectus does not contain all the information contained in the registration statement.
For additional information with respect to the Company and the shares that may be sold pursuant to this prospectus, we refer you
to the registration statement and the exhibits and schedules attached to the registration statement. Statements contained in this
prospectus as to the contents of any contract, agreement or other document referred to are not necessarily complete. When we make
such statements, we refer you to the copies of the contracts or documents that are filed as exhibits to the registration statement
because those statements are qualified in all respects by reference to those exhibits.
We are also subject to the informational
requirements of the Exchange Act. In accordance with the Exchange Act, we file periodic reports, proxy and information statements
and other information with the SEC. Our filings with the SEC are also available to the public over the Internet at the SEC's
website at www.sec.gov. You may also find documents we filed on our website at www.novationcompanies.com. Information contained
in or accessible through our website does not constitute a part of this prospectus.
I-
8
PART II
INFORMATION REQUIRED IN THE REGISTRATION
STATEMENT
Item 3. Incorporation of Certain Documents by Reference.
The following documents we filed with the
SEC are incorporated by reference in this prospectus:
1.
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020;
2.
Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC on May 13, 2020;
3.
Our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on August 13, 2020; and
4.
The description of our Common Stock contained in Exhibit 4.6 to our Annual Report on Form 10-K for the fiscal year ended December
31, 2019, filed with the SEC on March 23, 2020.
Additionally, all documents we subsequently
file with the SEC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment
that indicates that all securities offered herein have been sold or that deregisters all securities then remaining unsold, shall
be deemed to be incorporated by reference herein and to be part hereof from the respective dates of filing of such documents. Any
statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be
modified or superseded for purposes hereof or of the related prospectus to the extent that a statement contained herein or in any
other subsequently filed document that is also incorporated or deemed to be incorporated herein modifies or supersedes such statement.
Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of
this registration statement.
Item 4. Description of Securities.
Not applicable.
II-
1
Item 5. Interest of Named Experts and Counsel.
Not applicable.
Item 6. Indemnification of Officers and Directors.
The Maryland General Corporation Law ("MGCL")
permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the
corporation and its shareholders for money damages except for liability resulting from (a) actual receipt of an improper benefit
or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material
to the cause of action. The charter of the Registrant contains such a provision which eliminates such liability to the maximum
extent permitted by Maryland law.
The charter of the Registrant requires
it, to the full extent required or permitted by Maryland law, to indemnify (a) its present and former directors and officers, whether
serving the Registrant or at its request any other entity, including the advance of expenses under the procedures and to the full
extent permitted by law and (b) other employees and agents to such extent as shall be authorized by the Board of Directors or the
Registrant's bylaws and be permitted by law. The bylaws of the Registrant establish certain procedures for indemnification
and advancement of expenses pursuant to Maryland law and the Registrant's charter.
The MGCL requires a corporation (unless
its charter provides otherwise, which the Registrant's charter does not) to indemnify a director or officer who has been
successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made, or threatened to be made,
a party by reason of his or her service in that capacity or in the defense of any claim, issue or matter in the proceeding, against
reasonable expenses incurred by him or her in connection with the proceeding, claim, issue, or matter in which he or she has been
successful. The MGCL permits a corporation to indemnify its present and former directors and officers, among others, against judgments,
penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they
may be made, or threatened to be made, a party by reason of their service in those or other capacities unless it is established
that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed
in bad faith or (ii) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper
personal benefit in money, property or services, or (c) in the case of any criminal proceeding, the director or officer had reasonable
cause to believe that the act or omission was unlawful. However, under the MGCL, a Maryland corporation may not indemnify for
an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that personal
benefit was improperly received, unless in either case a court orders indemnification, and then only for expenses. In addition,
the MGCL permits a corporation to advance reasonable expenses to a director or officer upon the corporation's receipt of
(x) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct
necessary for indemnification by the corporation and (y) a written undertaking by him or her or on his or her behalf to repay
the amount paid or reimbursed by the corporation if it shall ultimately be determined that the standard of conduct was not met.
II-
2
The Registrant has entered into indemnification
agreements with certain of its directors and officers. Under the indemnification agreements, the Registrant will indemnify each
indemnitee to the maximum extent permitted by Maryland law for liabilities and expenses arising out of the indemnitee's service
to the Registrant or other entity for which such indemnitee is or was serving at the request of the Registrant. The indemnification
agreements also provide (a) for the advancement of expenses by the Registrant, subject to certain conditions, (b) a procedure for
determining an indemnitee's entitlement to indemnification and (c) for certain remedies for the indemnitee. In addition,
the indemnification agreements require the Registrant to use its reasonable best efforts to obtain directors and officers liability
insurance on terms and conditions deemed appropriate by the Registrant's Board of Directors.
The Registrant maintains insurance for
its directors and officers against certain liabilities, including liabilities under the Securities Act, under insurance policies,
the premiums of which are paid by the Registrant. The effect of these insurance policies is to indemnify any directors or officers
of the Registrant against expenses, judgments, attorneys' fees and other amounts paid in settlements incurred by a director
or officer upon a determination that such person acted in accordance with the requirements of such insurance policy.
Item 7. Exemption from Registration Claimed.
A total of 2,540,815 shares of Common Stock
that may be reoffered or resold pursuant to the reoffer prospectus included with this registration statement were issued to the
selling shareholders under the 2015 Incentive Plan in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act in transactions not involving a public offering.
Item 8. Exhibits.
Exhibit
    No.
Exhibit
    Description
4.1
2015 Incentive
    Stock Plan, as amended
5.1
Opinion
    of Olshan Frome Wolosky LLP
23.1
Consent
    of Boulay PLLP
23.2
Consent
    of Olshan Frome Wolosky LLP (included in Exhibit 5.1)
24.1
Power of Attorney (included
    on the signature page hereto)
II-
3
Item 9. Undertakings.
(a)
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or
high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
(iii)
to include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
Provided, however
, that paragraphs (a)(1)(i) and (a)(1)(ii)
of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement; and
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
II-
4
(b)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933,
each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of
1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the registration statement 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.
(h)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that
in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Act and will be governed by the final adjudication of such issue.
II-
5
SIGNATURES
Pursuant to the requirements of the
Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Kansas City, State of Missouri, on September 21, 2020.
NOVATION COMPANIES, INC.
By:
/s/ David W. Pointer
Name:
David W. Pointer
Title:
Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints David W. Pointer and Carolyn K. Campbell and each of them, as his
or her true and lawful attorneys-in-fact and agents, each with the full power of substitution, for him or her and in
his or her name, place or stead, in any and all capacities, to sign any and all amendments to this Registration Statement (including
post-effective amendments), and to file the same, with exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully
to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and
agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
II-
6
Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates
indicated.
Name
Title
Date
/s/ David W. Pointer
David W. Pointer
Chief Executive Officer
(principal executive
        officer)
September 21, 2020
/s/ Carolyn K. Campbell
Carolyn K. Campbell
Chief Financial Officer
(principal financial officer and principal
        accounting officer)
September 21, 2020
/s/ Howard M. Amster
Howard M. Amster
Director
September 21, 2020
/s/ Howard T. Eriksen
Howard T. Eriksen
Director
September 21, 2020
/s/ Barry A. Igdaloff
Barry A. Igdaloff
Director
September 21, 2020
/s/ Lee D. Keddie
Lee D. Keddie
Director
September 21, 2020
II-
7