0001534154
2019-01-01
2019-12-31
0001534154
2019-12-31
0001534154
2018-12-31
0001534154
us-gaap:CommonStockMember
2018-12-31
0001534154
us-gaap:CommonStockMember
2019-12-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2018-12-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2019-12-31
0001534154
us-gaap:RetainedEarningsMember
2018-12-31
0001534154
us-gaap:RetainedEarningsMember
2019-12-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-12-31
0001534154
us-gaap:ComputerEquipmentMember
2019-12-31
0001534154
idty:AcquiredAndDevelopedSoftwareMember
2019-12-31
0001534154
us-gaap:IntellectualPropertyMember
2019-12-31
0001534154
us-gaap:NoncompeteAgreementsMember
2019-12-31
0001534154
idty:PatentsPendingMember
2019-12-31
0001534154
us-gaap:CustomerRelationshipsMember
2019-12-31
0001534154
idty:VehicleMember
2019-12-31
0001534154
idty:NotesPayableOtherPayablesNineMember
2019-12-31
0001534154
idty:NotesPayableOtherPayablesNineMember
2018-04-29
2018-04-30
0001534154
idty:NotesPayableOtherPayablesNineMember
2017-01-30
2017-01-31
0001534154
idty:NotesPayableOtherPayablesNineMember
2017-01-31
0001534154
idty:CashCollectionServicesMember
2016-09-01
2016-09-30
0001534154
idty:CashCollectionServicesMember
2016-09-30
0001534154
idty:NewOfficeFacilitiesMember
country:CO
idty:MultiPaySASMember
2017-04-01
2017-04-30
0001534154
idty:NewOfficeFacilitiesMember
idty:AlpharettaMember
2018-10-01
2018-10-31
0001534154
idty:EquipmentUnderCapitalLeaseMember
2019-12-31
0001534154
2020-01-01
2020-03-31
0001534154
2020-04-30
0001534154
2020-03-31
0001534154
us-gaap:CommonStockMember
2020-01-01
2020-03-31
0001534154
us-gaap:CommonStockMember
2019-01-01
2019-03-31
0001534154
us-gaap:CommonStockMember
2020-03-31
0001534154
us-gaap:CommonStockMember
2019-03-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2020-01-01
2020-03-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2019-01-01
2019-03-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2020-03-31
0001534154
us-gaap:AdditionalPaidInCapitalMember
2019-03-31
0001534154
us-gaap:RetainedEarningsMember
2020-01-01
2020-03-31
0001534154
us-gaap:RetainedEarningsMember
2019-01-01
2019-03-31
0001534154
us-gaap:RetainedEarningsMember
2020-03-31
0001534154
us-gaap:RetainedEarningsMember
2019-03-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-01-01
2020-03-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-01-01
2019-03-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-03-31
0001534154
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-03-31
0001534154
2019-01-01
2019-03-31
0001534154
2019-03-31
0001534154
us-gaap:ComputerEquipmentMember
2020-03-31
0001534154
idty:EquipmentUnderCapitalLeaseMember
2020-03-31
0001534154
us-gaap:CustomerRelationshipsMember
2020-01-01
2020-03-31
0001534154
idty:AcquiredAndDevelopedSoftwareMember
2020-01-01
2020-03-31
0001534154
us-gaap:IntellectualPropertyMember
2020-01-01
2020-03-31
0001534154
us-gaap:NoncompeteAgreementsMember
2020-01-01
2020-03-31
0001534154
idty:PatentsPendingMember
2020-01-01
2020-03-31
0001534154
us-gaap:NoncompeteAgreementsMember
2020-03-31
0001534154
us-gaap:IntellectualPropertyMember
2020-03-31
0001534154
idty:AcquiredAndDevelopedSoftwareMember
2020-03-31
0001534154
idty:PatentsPendingMember
2020-03-31
0001534154
us-gaap:CustomerRelationshipsMember
2020-03-31
0001534154
idty:NotesPayableOtherPayablesNineMember
2020-03-31
0001534154
idty:VehicleMember
2020-03-31
0001534154
idty:VehicleMember
2020-01-01
2020-03-31
0001534154
idty:NewOfficeFacilitiesMember
country:ZA
2020-01-01
2020-03-31
0001534154
idty:ApartmentMember
country:CO
2020-01-01
2020-03-31
0001534154
idty:NewOfficeFacilitiesMember
idty:LongBeachNewYorkMember
2020-01-01
2020-03-31
0001534154
idty:NewOfficeFacilitiesMember
idty:PlantationMember
2020-01-01
2020-03-31
0001534154
us-gaap:EmployeeStockOptionMember
2019-01-01
2019-03-31
0001534154
us-gaap:WarrantMember
2019-01-01
2019-03-31
0001534154
us-gaap:EmployeeStockOptionMember
2020-01-01
2020-03-31
0001534154
us-gaap:WarrantMember
2020-01-01
2020-03-31
0001534154
idty:ConvertibleNotesPayableIssuedMember
2020-03-31
0001534154
idty:ConvertibleNotesPayableIssuedOneMember
2020-03-31
0001534154
idty:ConvertibleNotesPayableIssuedTwoMember
2020-03-31
0001534154
us-gaap:InvestorMember
2019-12-01
2019-12-13
0001534154
us-gaap:InvestorMember
2019-12-13
0001534154
idty:ExercisePriceMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceSevenMember
2020-01-01
2020-03-31
0001534154
idty:ExercisesPriceSixMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceOneMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceTenMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceFiveMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceTwoMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceEightMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceNineMember
2020-01-01
2020-03-31
0001534154
idty:ExercisesPriceNineMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceFourMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceThreeMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceSixMember
2020-01-01
2020-03-31
0001534154
idty:ExercisePriceMember
2020-03-31
0001534154
idty:ExercisePriceSevenMember
2020-03-31
0001534154
idty:ExercisesPriceSixMember
2020-03-31
0001534154
idty:ExercisePriceOneMember
2020-03-31
0001534154
idty:ExercisePriceTenMember
2020-03-31
0001534154
idty:ExercisePriceFiveMember
2020-03-31
0001534154
idty:ExercisePriceTwoMember
2020-03-31
0001534154
idty:ExercisePriceEightMember
2020-03-31
0001534154
idty:ExercisePriceNineMember
2020-03-31
0001534154
idty:ExercisesPriceNineMember
2020-03-31
0001534154
idty:ExercisePriceFourMember
2020-03-31
0001534154
idty:ExercisePriceThreeMember
2020-03-31
0001534154
idty:ExercisePriceSixMember
2020-03-31
0001534154
us-gaap:EmployeeStockOptionMember
2020-03-31
0001534154
us-gaap:EmployeeStockOptionMember
2020-01-01
2020-03-31
0001534154
us-gaap:ConvertibleNotesPayableMember
idty:TheodoreSternandPhilipBeckMember
2020-03-31
0001534154
us-gaap:ConvertibleNotesPayableMember
idty:HerbertSelzerMember
2020-03-31
0001534154
us-gaap:ConvertibleNotesPayableMember
2020-01-01
2020-03-31
0001534154
idty:Network1FinancialSecuritiesIncMember
2020-01-01
2020-03-31
0001534154
srt:NorthAmericaMember
2020-01-01
2020-03-31
0001534154
srt:NorthAmericaMember
2019-01-01
2019-03-31
0001534154
srt:SouthAmericaMember
2020-01-01
2020-03-31
0001534154
srt:SouthAmericaMember
2019-01-01
2019-03-31
0001534154
srt:AfricaMember
2020-01-01
2020-03-31
0001534154
srt:AfricaMember
2019-01-01
2019-03-31
0001534154
idty:PaymentProcessingMember
2020-01-01
2020-03-31
0001534154
idty:PaymentProcessingMember
2019-01-01
2019-03-31
0001534154
idty:IdentitySolutionsMember
2020-01-01
2020-03-31
0001534154
idty:IdentitySolutionsMember
2019-01-01
2019-03-31
0001534154
srt:NorthAmericaMember
2020-03-31
0001534154
srt:SouthAmericaMember
2020-03-31
0001534154
srt:AfricaMember
2020-03-31
0001534154
us-gaap:ConvertibleNotesPayableMember
idty:HerbertSelzerMember
2020-01-01
2020-03-31
0001534154
2020-02-01
2020-02-14
0001534154
2020-02-14
0001534154
idty:PhilipD.BeckMember
2020-03-31
0001534154
idty:TheodoreSternMember
2020-03-31
0001534154
idty:HerbertSelzerMember
2020-03-31
0001534154
idty:Mr.SelzerMember
2020-03-31
0001534154
idty:SeniorSecuredConvertibleNotesMember
2020-02-14
0001534154
us-gaap:SubsequentEventMember
2020-05-31
0001534154
idty:WarrantHoldersMember
2020-03-31
0001534154
idty:NoteOfferingMember
2020-03-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
idty:Kiosks
idty:Segment
utr:sqft
5218861
4347054
793789
740378
133554
227041
113624
125328
546611
388009
113624
125328
680165
615050
-2672608
-2168374
-406392
-737962
-1212152
-1256952
-1054064
-173460
-1212152
-1256952
-1460456
-911422
-3836421
-3836421
-2262739
-2262739
1147500
4500000
169110
415379
7000
439183
282316
156867
441577
284710
156867
277363
291888
14525
18630
5593612
3651924
862792
108877
970019
5308851
825696
3439013
113802
930340
26722
811798
9866
1976278
11584
1976278
11584
P2Y
P36M
306000
1020000
1500000
3000000
100000
1510000
120000
104800
869057
1158743
1065409
1014420
790106
411116
2215912
1836034
323971
467782
242650
217131
386165
418119
641834
43736
621292
689266
2012866
11584
8275771
14591096
47895
51812
90770682
94982167
-76435235
-86935593
207754
177385
4595689
52273
47895
95254309
91186061
-90772014
-78697974
61121
231982
12767964
1000000000
1000000000
-116264
-116264
24228
24228
518125454
478950996
518125454
522731646
522731646
478950996
5341
5486
1970937
6098
2012866
12866
2000000
11584
11584
830018
Ipsidy Inc.
0001534154
10-Q
2020-03-31
false
--12-31
000-54545
DE
Yes
Yes
true
Non-accelerated Filer
true
false
false
Q1
2020
522731646
169110
450
168660
415379
415379
95223
95223
4500000
106192
8270
11
8259
128005
198010
171141
130504
83920
178303
4925
4925
289686
39679
212911
37096
7284960
14087
1498363
4071550
113802
1587159
1976110
14087
672667
632537
656819
-1282
9866
26722
-1282
36588
0.108
539
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td>Year ending December 31</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">32,322</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">43,096</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">2022</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,774</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Total minimum lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,192</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Amount representing interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,900</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Present value of minimum lease payments</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">76,292</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
112364
32322
43096
10774
86192
9900
76292
99115
0.12
2022-03-31
223526
107814
329495
223750
96607
49716
370073
40578
99000
8500
3800
8000
2000
2700
5000
P2Y
P30D
P1Y9M18D
0.1355
0.03
428000
5444818
428000
0.0001
0.0001
518125454
522731646
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Net Loss per Common Share</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes net loss per share
in accordance with FASB ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings
per share ("EPS") on the face of the statement of operations. Basic EPS is computed by dividing net loss available
to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect
to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method,
and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for
the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and
conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The
following potentially dilutive securities were excluded from the calculation of diluted loss per share for the three months ended
March 31, 2020 and 2019 because their effect was antidilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid">Security</td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Stock Options</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">109,823,340</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">106,253,339</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Warrants</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,453,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,201,477</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">157,276,567</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">152,454,816</td></tr></table>
157276567
152454816
106253339
46201477
109823340
47453227
425000
5444818
428000
5265000
662000
98384
6355000
6355000
0.15
0.08
0.15
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid">Security</td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Stock Options</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">109,823,340</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">106,253,339</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Warrants</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,453,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,201,477</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">157,276,567</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">152,454,816</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number of<br /> Shares</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Life</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 63%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at December 31, 2019 </font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,453,227</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">0.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.4 Years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at March 31, 2020</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,453,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.09</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.2 Years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Expected
Volatility – 75%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Expected
Term – 6.5 Years</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Risk
Free Rate – 0.6%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Dividend
Rate – 0.00%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Weighted<br /> Average</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Weighted<br /> Average</td><td> </td><td> </td>
<td colspan="2">Aggregate</td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: center">Number of</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Exercise</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Contractual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intrinsic</td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> Shares</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Term (Yrs.)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> Value</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; padding-bottom: 4pt">Outstanding as of December 31, 2019</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">109,400,006</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">0.20</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">6.5</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">280,000</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">990,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.06</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Forfeitures</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(566,666</td><td style="padding-bottom: 1.5pt; text-align: left">) </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt">Outstanding as of March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">109,823,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0.20</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.6</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">104,650</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Exercisable as of March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">102,475,006</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.20</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.3</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">104,650</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Exercise Price </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Outstanding</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Weighted Average</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Contractual</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> Life (Yrs.)</p>
</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Exercisable</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0; text-align: right; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; width: 20%; text-align: right; text-indent: 0">0.00001</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 25%; text-align: right; text-indent: 0">3,500,000</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 24%; text-align: right; text-indent: 0">5.75</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 21%; text-align: right; text-indent: 0">3,500,000</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.05</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">35,700,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.60</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">31,950,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.06</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">990,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">9.80</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">-</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.10</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">27,200,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.75</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">27,200,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.12</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,133,334</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">9.00</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">358,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.13</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">250,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.80</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.15</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,800,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">5.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,800,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.22</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,583,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">8.05</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,500,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.25</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,500,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,833,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.26</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">8.30</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.29</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.30</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.40</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.17</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.45</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">31,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">5.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">31,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0"></td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">109,</font>823,340</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.32</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">102,475,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr></table>
47453227
47453227
0.09
0.08
P1Y4M24D
P1Y2M12D
0.75
P6Y6M0D
0.006
0.0000
109400006
109823340
990000
566666
102475006
0.20
0.20
0.06
0.23
0.20
P6Y6M0D
P10Y0M0D
P6Y7M6D
P6Y3M19D
280000
104650
104650
3500000
35700006
990000
27200000
1133334
250000
2800000
2583333
2500000
166667
1000000
1000000
31000000
P6Y3M26D
P5Y9M0D
P6Y7M6D
P9Y9M18D
P6Y9M0D
P9Y0M0D
P7Y9M18D
P5Y10M6D
P8Y0M18D
P7Y10M6D
P8Y3M19D
P7Y3M19D
P6Y2M1D
P5Y10M6D
3500000
31950006
27200000
358333
166667
2800000
1500000
1833333
166667
1000000
1000000
31000000
121000
293000
1500000
106000
20000
2021-11-30
50000
100000
1500000
15000
22275
104800
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td>Year ending December 31</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">91,611</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,864</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Sub-total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">743,067</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less deferred revenue</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(198,717</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Net investment in lease</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">544,350</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
91611
122148
122148
122148
122148
162864
743067
198717
544350
78
P10Y
11900
142272
15000
1677
40
748000
1422000
474000
11856
-975891
6226
2
7300000
700000
1300000
Mr. Selzer provided $50,000 on the closing date and has provided the balance of the funding in April 2020. Mr. Selzer holds 880,000 2015 Warrants, which were also extended as a result of his investment.
1510000
50000
50000
50000
100000
50000
1.50
1.50
0.20
104800
If the Company's volume weighted average price for any preceding 20-day period is equal to or greater than $0.30.
425000
547000
5000
P10Y
P5Y
P10Y
P10Y
2000000
4500000
150000
2100
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Going Concern</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2020, the Company had an
accumulated deficit of approximately $90.8 million. For the three months ended March 31, 2020 the Company earned revenue of approximately
$0.8 million and incurred a loss from operations of approximately $2.7 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reports of our independent registered
public accounting firm on our consolidated financial statements for the years ended December 31, 2019 and 2018 contained an explanatory
paragraph regarding our ability to continue as a going concern based upon our net losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated
financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations
and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial
support from the Company's current shareholders, the ability of the Company to obtain additional financing to continue
operations, the Company's ability to generate sufficient cash flows from operations, successfully locating and negotiating
with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 14, 2020 the Company, entered into Securities Purchase Agreements with several accredited investors (the "2020
Note Investors") providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes
in the aggregate amount of $1,510,000 (the "2020 Notes"). In connection with this private offering, the Company paid
Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2020, the Company was received a loan of approximately $485,000 under the Paycheck Protection Program of the U.S.
Small Business Association related to its U.S. operations. The Company anticipates most of the loan will be forgiven in
accordance with the provisions of the program.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no assurance that the Company
will ever be profitable or be able to secure funding or generate sufficient revenues to sustain operations. As such, there is substantial
doubt about the Company's ability to continue as a going concern. These unaudited condensed consolidated financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the
amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<font style="font: 10pt Times New Roman, Times, Serif">Covid-19 </font>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.25pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A novel strain of coronavirus ("Covid-19") emerged
globally in December 2019 and has been declared a pandemic. The extent to which Covid-19 will impact our customers, business, results
and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this
time. The Company's day-to-day operations beginning March 2020 have been impacted differently depending on geographic location
and services that are being performed. The Cards Plus business located in South Africa has not had any operations in April 2020
as the Company is following the guidance and requirements of the South African government. Our operations in the United States
and Colombia have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.25pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">That
said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with
Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and
agreements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Inventories</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories of kiosks held by IDGS
S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value. The kiosks provide
electronic ticketing for transit systems. Inventory of plastic/ID cards, digital printing material, which are held by Cards
Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing
material are used to provide plastic loyal ID and other types of cards. Inventories at March 31, 2020 consist solely of
the cards inventory. As of December 31, 2019, inventory consisted of kiosks that were not placed into service and were
held for sale and cards inventory. Any adjustments to reduce the cost of inventories to their net realizable value are
recognized in earnings in the current period. As of December 31, 2019, the Company had an inventory valuation allowance
of approximately $236,000 to reflect net realizable value of the kiosks that are being held for sale and the Company believed
no valuation allowance was necessary regarding the cards inventory. As of March 31, 2020, the Company did not believe a
valuation allowance was necessary for the cards inventory. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue Recognition</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Below is the Company's revenue recognition
policy determined by revenue stream for its significant revenue generating activities during the period ended March 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cards Plus - The Company recognizes revenue for the design and
production of cards when products are shipped or services have been performed due to the short term nature of the contracts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment Processing – The Company recognizes revenue for
variable fees generated for payment processing solutions that are earned on a usage fee over time based on monthly transaction
volumes or on a monthly flat fee rate. Additionally, the Company also sells certain equipment from time to time for which revenue
is recognized upon delivery to the customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Identity Solutions Software –
The Company recognizes revenue based on the identified performance obligations over the performance period for fixed
consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction
volumes or on a monthly flat fee rate. The Company had a deferred revenue contract liability of approximately $547,000 and
$425,000 as of March 31, 2020 and December 31, 2019 for certain revenue that will be earned in future periods. The
majority of the $425,000 of deferred revenue contract liability as of December 31, 2019 was earned in the three months
ended March 31, 2020. The $547,000 of deferred revenue contract liability as of March 31, 2020 will be earned ratably
over the ensuing four quarters. We have allocated the selling price in the contract to one customer which has multiple
performance obligations based on the contract selling price that we believe represents a fair market price for the service
rendered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All contracts are reviewed for their respective performance
obligations and related revenue and expense recognition implications. Certain of the revenues are derived from the identity services
could include multiple performance obligations. A performance obligation under the revenue standard is defined as a promise
to provide a "distinct" good or service to a customer. The Company has determined that one possible treatment under
the standard is that these services will represent a stand-ready series of distinct daily services that are substantially the
same, with the same pattern of transfer to the customer. Further, the Company has determined that the performance obligation to
provide account access and facilitate transactions may meet the criteria for the "as invoiced" practical expedient,
in that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer
of the Company's performance completed to date. As a result, the Company anticipates it may recognize revenue in the amount
to which the Company has a right to invoice, based on completed performance at the relevant date. Additionally, the contracts could
include implementation services, or support on an "as needed" basis and we will review each contract and determine
whether such performance obligations are separate and distinct and apply the standard accordingly to the revenue and expense
derived from or related to each such service.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the Company capitalizes the incremental costs
of acquiring and fulfilling a contract with a customer if the Company expects to recover those costs. The incremental costs of
acquiring and fulfilling a contract are those that the Company incurs to acquire and fulfill a contract with a customer that it
would not have incurred if the contract had not been acquired (for example, a sales commission or specific incremental costs associated
with the contract).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company capitalizes the costs incurred to acquire and fulfill
a contract only if those costs meet all the following criteria:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">a.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">b.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">c.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs are expected to be recovered.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will capitalize contract acquisition and fulfillment
costs related to signing or renewing contracts that meet the above criteria, which will be classified as contract cost assets in
the Company's Consolidated Balance Sheets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract cost assets will be amortized using the straight-line
method over the expected period of benefit beginning at the time revenue begins to be realized. The amortization of contract fulfillment
cost assets associated with facilitating transactions will be recorded as cost of services in the Company's Consolidated
Statements of Operations. The amortization of contract acquisition cost assets associated with sales commissions that qualify for
capitalization will be recorded as selling, general and administrative expense in the Company's Consolidated Statements of
Operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2020, the Company had deferred contract costs,
represented by contract cost assets of approximately $5,000 which are included in other currents assets for certain costs incurred
for the future delivery of election support services. The performance obligation will be met over the next year and the costs
will be expensed as the associated revenue is recognized as the Company performances it obligations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue related to direct financing leases is outside the scope
of Topic 606 and is recognized over the term of the lease using the effective interest method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><b>NOTE 2 – PROPERTY AND EQUIPMENT, NET</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment consisted of the following as of March
31, 2020 and December 31, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Property and equipment</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">284,710</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">282,316</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Equipment under capital lease (see Note 10)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">439,183</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(291,888</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(277,363</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Property and equipment, net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">149,689</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">161,820</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense totaled $14,525 and $18,630 for the three
months ended March 31, 2020 and 2019, respectively.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; width: 76%">Property and equipment</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">284,710</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">282,316</td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Equipment under capital lease (see Note 10)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,867</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">441,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">439,183</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(291,888</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(277,363</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Property and equipment, net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">149,689</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">161,820</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 3 – OTHER ASSETS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s other assets consist of software being developed
for new product offerings that have not been placed into service. Other assets consisted of the following at March 31, 2020 and
December 31, 2019 :</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Software and development</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">198,010</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,005</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating lease right of use assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,504</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">171,141</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">178,303</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">83,920</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">506,817</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">383,066</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Software and development</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">198,010</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">128,005</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating lease right of use assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">130,504</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">171,141</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">178,303</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">83,920</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">506,817</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">383,066</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 4 – INTANGIBLE ASSETS, NET
(OTHER THAN GOODWILL)</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's intangible assets consist
of intellectual property acquired from MultiPay and FIN and are amortized over their estimated useful lives as indicated below.
The following is a summary of activity related to intangible assets for the three months ended March 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Acquired and</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2" style="text-align: center">Customer</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Developed</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intellectual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Non-</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Patents</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Relationships</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Software</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Property</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Compete</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Pending</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Useful Lives</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">5 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">N/A</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 46%">Carrying Value at December 31, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">970,019</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">3,651,924</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">862,792</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">108,877</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">5,593,612</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in">Additions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">Amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,679</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(212,911</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(37,096</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(289,686</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 4pt">Carrying Value at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">930,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,439,013</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">825,696</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,802</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of
intangible assets as of March 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Acquired and</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2" style="text-align: center">Customer</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Developed</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intellectual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Non-</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Patents</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Relationships</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Software</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Property</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Compete</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Pending</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 46%">Cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,587,159</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">4,071,550</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,498,363</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">14,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">113,802</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">7,284,960</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(656,819</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(632,537</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(672,667</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,087</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,976,110</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 4pt">Carrying Value at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">930,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,439,013</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">825,696</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,802</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amortization expense totaled $289,686 and $141,047 for the
three months ended March 31, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Future expected amortization of intangible assets is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left">Fiscal Year Ending December 31,</td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; width: 91%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">869,057</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,158,743</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,065,409</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,014,420</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">790,106</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">411,116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left">Fiscal Year Ending December 31,</td><td> </td>
<td colspan="2" style="text-align: justify"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; width: 91%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">869,057</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,158,743</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,065,409</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,014,420</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">790,106</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">411,116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Acquired and</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2" style="text-align: center">Customer</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Developed</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intellectual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Non-</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Patents</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Relationships</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Software</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Property</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Compete</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Pending</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Useful Lives</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">5 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">10 Years</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">N/A</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 46%">Carrying Value at December 31, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">970,019</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">3,651,924</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">862,792</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">108,877</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">5,593,612</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in">Additions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">Amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,679</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(212,911</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(37,096</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(289,686</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 4pt">Carrying Value at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">930,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,439,013</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">825,696</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,802</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Acquired and</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td>
<td colspan="2" style="text-align: center">Customer</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Developed</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intellectual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Non-</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Patents</td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Relationships</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Software</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Property</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Compete</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Pending</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 46%">Cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,587,159</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">4,071,550</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,498,363</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">14,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">113,802</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">7,284,960</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(656,819</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(632,537</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(672,667</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,087</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,976,110</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 4pt">Carrying Value at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">930,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,439,013</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">825,696</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,802</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,308,851</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts payable and accrued expenses consisted of the following
as of March 31, 2020 and December 31, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br />2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br />2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade payables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">689,266</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">621,292</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">43,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">641,834</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued payroll and related obligations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">418,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">386,165</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Current portion of operating lease liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">217,131</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">242,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">467,782</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">323,971</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,836,034</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,215,912</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br />2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br />2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade payables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">689,266</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">621,292</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">43,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">641,834</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued payroll and related obligations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">418,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">386,165</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Current portion of operating lease liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">217,131</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">242,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">467,782</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">323,971</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,836,034</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,215,912</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31,<br /> 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31,<br /> 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in; width: 82%">In January 2017, the Company issued a Senior Unsecured Note ("Note") a face value of $3,000,000, payable two years from issuance, along with an aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The Company allocated the proceeds to the note payable and common stock based on their relative fair value and recorded a discount of $830,018 to be amortized into interest expense over the two-year term of the note. The Company also paid debt issuance costs consisting of a cash fee of $120,000 and 1,020,000 shares of common stock of the Company with a fair value of $306,000. On April 30, 2018, the Company and the Noteholder agreed to extend the due date of the note until April 30, 2020 for an extension fee of 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in terms of the Note payable has been determined to be a debt extinguishment in accordance with ASC 470. The reported amounts under the debt extinguishment are not significantly different than that of the Company's reported amounts. The Note was amended on February 14, 2020 to conform to the terms of the 2020 Convertible Notes Payable offering. See below</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 6%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 6%">2,000,000</td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,584</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,866</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Total Principal Outstanding</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">11,584</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,012,866</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Unamortized Deferred Debt Discount</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26,722</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Unamortized Deferred Debt Issuance Costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,866</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, Net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,976,278</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, current portion, net of discounts and current portion</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">5,486</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">5,341</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, net of discounts and current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,970,937</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,976,278</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Principal Balance</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Debt Discounts</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Debt Issuance Costs</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.1in; padding-left: 0.1in; width: 52%">Balance at December 31, 2019</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">2,012,866</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">(9,866</td><td style="text-align: left; width: 1%">)</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">(26,722</td><td style="text-align: left; width: 1%">)</td><td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 9%">1,976,278</td><td style="text-align: left; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.1in; padding-left: 0.1in">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,282</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,282</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.1in; padding-left: 0.1in">Conversion of note payable to convertible notes payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,866</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">26,722</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,588</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in">Balance at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
-2000000
-2000000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 8 – RELATED PARTY TRANSACTIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Convertible Notes Payable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Theodore Stern and Philip Beck, members
of the board of directors of the Company, invested $50,000 each in consideration of the 2020 Note. Another director, Herbert Selzer
invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Mr. Selzer provided $50,000 on the closing
date and has provided the balance of the funding in April 2020. Mr. Selzer holds 880,000 2015 Warrants, which were also extended
as a result of his investment. See Note 7</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: justify">Further, the Company
and the Stern Trust entered the Restated Stern Note providing that the $2,000,000 principal of the Stern Note will be due and
payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and subject to
the same Security Agreement and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000
will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of
such interest shall be extended to the same maturity date as the 2020 Notes. The Restated Stern Note includes a 50% repayment
premium. Mr. Stern, the Trustee of the Stern Trust also entered into the Security Agreement as one of the joint collateral
agents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Issuance of Common Stock</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the quarter ended March 31, 2020,
the Company granted 1,500,000 shares of Restricted Common Stock to each of Phillip Kumnick and Philip Broenniman, new members of
our Board of Directors, in connection with their compensation for service as Board Members. The restricted stock vests upon the
achievement of certain performance criteria. The performance criteria have not been met as of March 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Other</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the offering of the 2020 Notes, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer
("Network 1"), a cash fee of approximately $104,800. A former member of the Company's Board of Director's
maintains a partnership with a principal of Network 1.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Company rents office space in Long Beach, New York at a monthly cost of $5,000 (as of January 1, 2020). The agreement is month
to month and can be terminated on 30 days' notice. The agreement is between the Company and Bridgeworks LLC, an entity principally
owned by Mr. Beck, our CEO, and his family. During each of the three months ended March 31, 2020 and 2019, the Company paid rent
of $15,000 and $22,275, respectively.</font></p>
The right to acquire 6,380,000 shares of common stock. Mr. Selzer, a director of the Company, holds 880,000 2015 Warrants, which were also extended as a result of his investment.
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
12 – COMMITMENTS AND CONTINGENCIES</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Legal
Matters</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">From
time to time, the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business.
While any litigation contains an element of uncertainty, we have no reason to believe the outcome of such proceedings will have
a material adverse effect on the financial condition or results of operations of the Company.  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Leases</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">For
the three months ended March 31, 2020, lease expense was approximately $99,000 inclusive of short-term leases.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
lease related balances included in the Condensed Consolidated Balance Sheet as of March 31, 2020 were as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-style: italic">Assets:</td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; padding-bottom: 4pt">Current portion of operating lease ROU assets - included in other current assets</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">223,526</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Operating lease ROU assets – included in Other Assets</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">107,814</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; width: 88%">Total operating lease assets</td><td style="padding-bottom: 4pt; width: 1%"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 9%">331,340</td><td style="padding-bottom: 4pt; text-align: left; width: 1%"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-style: italic">Liabilities:</td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Current portion of ROU liabilities – included in Accounts payable and accrued expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">217,131</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term portion of ROU liabilities – included in Other liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">112,364</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">329,495</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
weighted average lease term is 1.8 years and weighted average discount rate used in the calculations were 13.55%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
following table presents the maturity of the Company's operating lease liabilities as of March 31, 2020:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">223,750</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">96,607</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">2022</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,716</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Total operating lease payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">370,073</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(40,578</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">329,495</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company leases approximately 2,100 square feet of office space in Plantation, Florida. Monthly rental is approximately $2,700
per month with a 3% increase on each annual anniversary. The Company will be responsible for their respective share of building
expenses. The lease term is through August 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Company rents office space in Long Beach, New York at a monthly cost of 5,000. The agreement is month to month and can be
terminated on 30 days' notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by
Mr. Beck, our CEO and his family.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
October 2018, the Company a entered into an office lease in Alpharetta, Ga. for approximately $3,800 per month through March 31,
2020. The Company did not renew the lease.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company leases an office location in Bogota, Colombia. In April 2017, MultiPay S.A.S. entered an office lease beginning April
22, 2017. The lease cost is approximately $8,500 per month with an inflation adjustment after one year. The lease is automatically
extended for one additional year unless written notice to the contrary is provided at least six months in advance. The Company
extended the lease through April 2021. Furthermore, the Company leased an apartment at approximately $2,000 a month for one of
the management team which has now been terminated.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company also leases space for its operation in South Africa. The current lease is through June 30, 2022 and the approximate monthly
rent is $8,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-style: italic">Assets:</td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left; padding-bottom: 4pt">Current portion of operating lease ROU assets - included in other current assets</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">223,526</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Operating lease ROU assets – included in Other Assets</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">107,814</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; width: 88%">Total operating lease assets</td><td style="padding-bottom: 4pt; width: 1%"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 4pt double; text-align: right; width: 9%">331,340</td><td style="padding-bottom: 4pt; text-align: left; width: 1%"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-style: italic">Liabilities:</td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Current portion of ROU liabilities – included in Accounts payable and accrued expenses</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">217,131</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term portion of ROU liabilities – included in Other liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">112,364</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">329,495</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">223,750</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">96,607</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">2022</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">49,716</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Total operating lease payments</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">370,073</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(40,578</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">329,495</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
331340
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
13- IMPAIRMENT LOSS</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Goodwill</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
is recorded when the purchase price paid for an acquisition exceeds the fair value of net identified tangible and intangible assets
acquired. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment
develop between annual impairment tests. The Company's impairment review process compares the fair value of the reporting
unit to its carrying value, including the goodwill related to the reporting unit utilizing qualitative considerations. To determine
the fair value of the reporting unit, the Company may use various approaches including an asset or cost approach, market approach
or income approach or any combination thereof. These approaches may require the Company to make certain estimates and assumptions
including future cash flows, revenue and expenses. These estimates and assumptions are reviewed each time the Company tests goodwill
for impairment and are typically developed as part of the Company's routine business planning and forecasting process. While
the Company believes its estimates and assumptions are reasonable, variations from those estimates could produce materially different
results. As a result of the current pandemic and its potential impact on future results, the Company updated its reporting unit
projections, and it indicated a goodwill impairment at Cards Plus as the carrying value may not be recovered as
revenue assumptions and related revenue were revised downward. The fair value of the reporting unit was determined using discounted
cash flow as well as future realizable value. The goodwill impairment loss for the quarter ended March 31, 2020 was approximately
$872,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
14 – SEGMENT INFORMATION</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>General
information</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
segment and geographic information provided in the table below is being reported consistent with the Company's method of
internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is
available and which is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate
resources and in assessing performance. The CODM regularly reviews net revenue and gross profit by geographic regions. The Company's
products and services operate in two reportable segments; identity management and payment processing.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Information
about revenue, profit/loss and assets</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
CODM evaluates performance and allocates resources based on net revenue and operating results of the geographic region as the
current operations of each geography are either primarily identity management or payment processing. Identity management revenue
is generated in North America and Africa and payment processing revenue is earned in South America which are the three geographic
regions of the Company. We have included the lease income in payment processing as the leases are related to unattended ticketing
kiosks.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Long
lived assets are in North America, South America and Africa. Most assets are intangible assets recorded from the acquisition of
MultiPay (South America) in 2015 and FIN Holdings (North America and Africa) in 2016. Assets for North America, South America
and Africa amounted to approximately $7.3 million, $0.7 million and $1.3 million.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.6pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Analysis
of revenue by segment and geographic region and reconciliation to consolidated revenue, gross profit, and net loss are provided
below. The Company has included in the schedule below an allocation of corporate overhead based on management's estimate
of resource requirements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.6pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">(unaudited)<br />
Three Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br /> 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br /> 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Net Revenues:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">North America</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">133,554</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">227,041</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">South America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">113,624</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,328</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Africa</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">546,611</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">388,009</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">793,789</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">740,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Identity Management</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">680,165</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">615,050</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Payment Processing</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">113,624</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">125,328</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">793,789</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">740,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Loss From Operations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">North America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(406,392</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(737,962</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">South America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,212,152</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,256,952</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Africa</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,054,064</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(173,460</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,672,608</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,168,374</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Identity Management</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,460,456</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(911,422</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Payment Processing</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,212,152</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,256,952</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,672,608</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,168,374</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Interest Expense</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(179,050</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(86,890</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other income/(expense)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(975,891</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,226</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Loss before income taxes</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,827,547</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,249,038</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Income tax expense</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(8,874</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Net loss</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(3,836,421</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(2,262,739</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr></table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">(unaudited)<br />
Three Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br /> 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br /> 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Net Revenues:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">North America</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">133,554</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">227,041</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">South America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">113,624</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,328</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Africa</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">546,611</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">388,009</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">793,789</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">740,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Identity Management</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">680,165</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">615,050</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Payment Processing</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">113,624</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">125,328</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">793,789</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">740,378</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Loss From Operations</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">North America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(406,392</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(737,962</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">South America</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,212,152</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,256,952</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Africa</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,054,064</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(173,460</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,672,608</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,168,374</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Identity Management</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,460,456</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(911,422</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Payment Processing</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,212,152</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,256,952</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,672,608</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,168,374</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Interest Expense</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(179,050</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(86,890</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other income/(expense)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(975,891</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,226</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Loss before income taxes</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,827,547</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,249,038</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Income tax expense</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(8,874</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Net loss</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(3,836,421</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(2,262,739</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0pt"></p>
13537415
12623776
177385
61121
-86935593
-90772014
94982167
95254309
51812
52273
5261644
8028087
131568
112364
49794
40421
1970937
6098
2681345
2424386
425276
546995
5341
5486
34816
35871
2215912
1836034
13537415
12623776
494703
477222
5593612
5308851
383066
506817
161820
149689
1685353
1834143
753505
397625
173575
157445
65333
67128
125859
649697
519436402
478950996
-0.01
0
8874
13701
-3827547
-2249038
-1154939
-80664
-975889
6226
179050
86890
3466397
2908752
325344
160788
871807
430401
430670
1483122
2140831
355723
176463
14851
16437
778938
723941
-3952685
-2238511
514473
16510
8270
2662000
95223
8874
13701
2792
4223
567081
4972331
562248
2920895
-4833
-2051436
-96653
30817
1395600
-7381
9600
7381
104800
1510000
-131070
-330182
128676
315282
2394
14900
-1172710
-1744690
-121719
-315624
156446
-28964
-37714
42424
-355880
-213842
-15686
-14100
450291
557737
871807
95948
27441
304211
160788
-985481
The Company's subsidiaries, entered into a security agreement with the 2020 Note Investors ("Security Agreement"), the holders of the 8% Notes and the Theodore Stern Revocable Trust (the "Stern Trust"), which is the holder of the Promissory Note in the principal amount of $2,000,000 (the "Stern Note"). The Security Agreement provides that until the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company's obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu. The Security Agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust. Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes.
0.15
485000
289686
141047
The Company and the Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and that the interest due under the Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes detailed in Note 7. The Company accounted for the Restated Stern Note as an extinguishment of the Note and recorded a charge of $985,000 included in other expenses in accompanying condensed statements of operations.
The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay any interest on the 8% Notes at the rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder's option, shares of common stock of the Company. At the option of the 8% Note investors, all or a portion of the 8% Notes may be converted into shares of common stock of the Company at a conversion price of $0.08 per share. If the holders of the 8% Notes owning outstanding 8.0% Notes representing in excess of half of the aggregate outstanding principal amount of all 8% Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and other amounts owing to each of the holders shall be automatically converted.
The Exercise Price (as defined therein) to $0.06 per share, providing that such warrant holders invested a minimum $100,000 in the 2020 Note private offering. As a result, a portion of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period two years for the 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. The fair market value of the modification of warrants extended were approximately $95,000. Mr. Selzer holds 2015 Warrants to acquire 880,000 shares of common stock, which were also extended as a result of his investment.
The Company and the Stern Trust entered the Restated Stern Note providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and subject to the same Security Agreement and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. The Restated Stern Note includes a 50% repayment premium.
95000
872000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">8% convertible notes payable issued December 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">428,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">15% convertible notes payable issued February 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,265,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">10% convertible notes payable issued February 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">662,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized discount on convertible notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(811,798</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Unamortized debt issuance costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,384</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,444,818</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">2020</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt; width: 1%"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">6,355,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,355,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 1 – BASIS OF PRESENTATION</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the opinion of Management, the accompanying
unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments
(consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the
periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared
in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It
is suggested that these condensed consolidated financial statements be read in conjunction with the Company's Annual Report
on Form 10-K for the year ended December 31, 2019. The results of operations for the three months ended March 31, 2020 are not
necessarily indicative of the results to be expected for future periods or the full year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The condensed consolidated financial statements
include the accounts of Ipsidy Inc. and its wholly-owned subsidiaries MultiPay S.A.S., ID Global LATAM, IDGS S.A.S., ID Solutions,
Inc., FIN Holdings Inc., Ipsidy Enterprises Limited, Cards Plus Pty Ltd. and Ipsidy Peru S.A.C. (collectively the "Company").
All significant intercompany balances and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Going Concern</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2020, the Company had an
accumulated deficit of approximately $90.8 million. For the three months ended March 31, 2020 the Company earned revenue of approximately
$0.8 million and incurred a loss from operations of approximately $2.7 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reports of our independent registered
public accounting firm on our consolidated financial statements for the years ended December 31, 2019 and 2018 contained an explanatory
paragraph regarding our ability to continue as a going concern based upon our net losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated
financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations
and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial
support from the Company's current shareholders, the ability of the Company to obtain additional financing to continue
operations, the Company's ability to generate sufficient cash flows from operations, successfully locating and negotiating
with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 14, 2020 the Company, entered into Securities Purchase Agreements with several accredited investors (the "2020
Note Investors") providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes
in the aggregate amount of $1,510,000 (the "2020 Notes"). In connection with this private offering, the Company paid
Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2020, the Company received a loan of approximately $485,000 under the Paycheck Protection Program of the U.S.
Small Business Association related to its U.S. operations. The Company anticipates most of the loan will be forgiven in
accordance with the provisions of the program.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no assurance that the Company
will ever be profitable or be able to secure funding or generate sufficient revenues to sustain operations. As such, there is
substantial doubt about the Company's ability to continue as a going concern. These unaudited condensed consolidated financial
statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets
or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Covid-19</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.25pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A novel strain of coronavirus ("Covid-19") emerged
globally in December 2019 and has been declared a pandemic. The extent to which Covid-19 will impact our customers, business, results
and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this
time. The Company's day-to-day operations beginning March 2020 have been impacted differently depending on geographic location
and services that are being performed. The Cards Plus business located in South Africa has not had any operations in April 2020
as the Company is following the guidance and requirements of the South African government. Our operations in the United States
and Colombia have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.25pt 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">That
said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with
Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and
agreements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Net Loss per Common Share</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes net loss per share
in accordance with FASB ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings
per share ("EPS") on the face of the statement of operations. Basic EPS is computed by dividing net loss available
to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect
to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method,
and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for
the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and
conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The
following potentially dilutive securities were excluded from the calculation of diluted loss per share for the three months ended
March 31, 2020 and 2019 because their effect was antidilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid">Security</td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Stock Options</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">109,823,340</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">106,253,339</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Warrants</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,453,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,201,477</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">157,276,567</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">152,454,816</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Inventories</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories of kiosks held by IDGS
S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value. The kiosks provide
electronic ticketing for transit systems. Inventory of plastic/ID cards, digital printing material, which are held by Cards
Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing
material are used to provide plastic loyal ID and other types of cards. Inventories at March 31, 2020 consist solely of
the cards inventory. As of December 31, 2019, inventory consisted of kiosks that were not placed into service and were
held for sale and cards inventory. Any adjustments to reduce the cost of inventories to their net realizable value are
recognized in earnings in the current period. As of December 31, 2019, the Company had an inventory valuation allowance
of approximately $236,000 to reflect net realizable value of the kiosks that are being held for sale and the Company believed
no valuation allowance was necessary regarding the cards inventory. As of March 31, 2020, the Company did not believe a
valuation allowance was necessary for the cards inventory. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue Recognition</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Below is the Company's revenue recognition
policy determined by revenue stream for its significant revenue generating activities during the period ended March 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cards Plus - The Company recognizes revenue for the design and
production of cards when products are shipped or services have been performed due to the short term nature of the contracts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment Processing – The Company recognizes revenue for
variable fees generated for payment processing solutions that are earned on a usage fee over time based on monthly transaction
volumes or on a monthly flat fee rate. Additionally, the Company also sells certain equipment from time to time for which revenue
is recognized upon delivery to the customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Identity Solutions Software –
The Company recognizes revenue based on the identified performance obligations over the performance period for fixed
consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction
volumes or on a monthly flat fee rate. The Company had a deferred revenue contract liability of approximately $547,000 and
$425,000 as of March 31, 2020 and December 31, 2019 for certain revenue that will be earned in future periods. The
majority of the $425,000 of deferred revenue contract liability as of December 31, 2019 was earned in the three months
ended March 31, 2020. The $547,000 of deferred revenue contract liability as of March 31, 2020 will be earned ratably
over the ensuing four quarters. We have allocated the selling price in the contract to one customer which has multiple
performance obligations based on the contract selling price that we believe represents a fair market price for the service
rendered.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All contracts are reviewed for their respective performance
obligations and related revenue and expense recognition implications. Certain of the revenues are derived from the identity services
could include multiple performance obligations. A performance obligation under the revenue standard is defined as a promise
to provide a "distinct" good or service to a customer. The Company has determined that one possible treatment under
the standard is that these services will represent a stand-ready series of distinct daily services that are substantially the
same, with the same pattern of transfer to the customer. Further, the Company has determined that the performance obligation to
provide account access and facilitate transactions may meet the criteria for the "as invoiced" practical expedient,
in that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer
of the Company's performance completed to date. As a result, the Company anticipates it may recognize revenue in the amount
to which the Company has a right to invoice, based on completed performance at the relevant date. Additionally, the contracts could
include implementation services, or support on an "as needed" basis and we will review each contract and determine
whether such performance obligations are separate and distinct and apply the standard accordingly to the revenue and expense
derived from or related to each such service.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the Company capitalizes the incremental costs
of acquiring and fulfilling a contract with a customer if the Company expects to recover those costs. The incremental costs of
acquiring and fulfilling a contract are those that the Company incurs to acquire and fulfill a contract with a customer that it
would not have incurred if the contract had not been acquired (for example, a sales commission or specific incremental costs associated
with the contract).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company capitalizes the costs incurred to acquire and fulfill
a contract only if those costs meet all the following criteria:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">a.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">b.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0px"></td>
<td style="text-align: justify; width: 24px; font-size: 10pt"><font style="font-size: 10pt">c.</font></td>
<td style="text-align: justify; font-size: 10pt"><font style="font-size: 10pt">The costs are expected to be recovered.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will capitalize contract acquisition and fulfillment
costs related to signing or renewing contracts that meet the above criteria, which will be classified as contract cost assets in
the Company's Consolidated Balance Sheets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract cost assets will be amortized using the straight-line
method over the expected period of benefit beginning at the time revenue begins to be realized. The amortization of contract fulfillment
cost assets associated with facilitating transactions will be recorded as cost of services in the Company's Consolidated
Statements of Operations. The amortization of contract acquisition cost assets associated with sales commissions that qualify for
capitalization will be recorded as selling, general and administrative expense in the Company's Consolidated Statements of
Operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2020, the Company had deferred contract costs,
represented by contract cost assets of approximately $5,000 which are included in other currents assets for certain costs incurred
for the future delivery of election support services. The performance obligation will be met over the next year and the costs
will be expensed as the associated revenue is recognized as the Company performances its obligations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue related to direct financing leases is outside the scope
of Topic 606 and is recognized over the term of the lease using the effective interest method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 6 - NOTES PAYABLE, NET</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a summary of notes payable as of March 31,
2020 and December 31, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31,<br /> 2020</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">December 31,<br /> 2019</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 82%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">In January 2017, the Company issued a Senior Unsecured Note ("Note") a face value of $3,000,000, payable two years from issuance, along with an aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The Company allocated the proceeds to the note payable and common stock based on their relative fair value and recorded a discount of $830,018 to be amortized into interest expense over the two-year term of the note. The Company also paid debt issuance costs consisting of a cash fee of $120,000 and 1,020,000 shares of common stock of the Company with a fair value of $306,000. On April 30, 2018, the Company and the Noteholder agreed to extend the due date of the note until April 30, 2020 for an extension fee of 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in terms of the Note payable has been determined to be a debt extinguishment in accordance with ASC 470. The reported amounts under the debt extinguishment are not significantly different than that of the Company's reported amounts. The Note was amended on February 14, 2020 to conform to the terms of the 2020 Convertible Notes Payable offering. See below</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">2,000,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,584</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,866</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Total Principal Outstanding</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">11,584</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,012,866</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Unamortized Deferred Debt Discount</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(26,722</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Unamortized Deferred Debt Issuance Costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,866</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, Net</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,976,278</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, current portion, net of discounts and current portion</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">5,486</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">5,341</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Notes Payable, net of discounts and current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,970,937</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,976,278</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As noted above, the Company and the
Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the
$2,000,000 Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date
as the 2020 Notes and that the interest due under the Note as of January 31, 2020 in the amount of $662,000 will remain due
and payable on the same terms as exist in the Note prior to modification provided that the maturity of such interest shall be
extended to the same maturity date as the 2020 Notes detailed in Note 7. The Company accounted for the Restated Stern Note as
an extinguishment of the Note and recorded a charge of $985,000 included in Other expenses in accompanying condensed
consolidated statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a roll-forward of the
Company's notes payable and related discounts for the three months ended March 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Principal Balance</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Debt Discounts</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Debt Issuance Costs</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-indent: -0.1in; padding-left: 0.1in">Balance at December 31, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,012,866</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(9,866</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(26,722</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,976,278</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -0.1in; padding-left: 0.1in">Payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,282</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,282</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.1in; padding-left: 0.1in">Conversion of note payable to convertible notes payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-indent: -0.1in; padding-left: 0.1in">Amortization</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,866</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">26,722</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,588</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; text-indent: -0.1in; padding-left: 0.1in">Balance at March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,584</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See Note 7 with the respect to the
conversion of the $2,000,000 Senior Unsecured Note.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 7 – CONVERTIBLE NOTES PAYABLE</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 13, 2019, the Company
entered into Securities Purchase Agreements with several accredited investors (the "8% Note Investors") providing
for the sale by the Company to the Investors of 8% Convertible Notes in the aggregate amount of $428,000 (the "8%
Notes"). The 8% Notes were to mature on November 30, 2021 and were a general unsecured obligation of the Company. The
Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay any interest on the 8% Notes at the
rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder's
option, shares of common stock of the Company. At the option of the 8% Note investors, all or a portion of the 8% Notes may
be converted into shares of common stock of the Company at a conversion price of $0.08 per share. If the holders of the 8%
Notes owning outstanding 8.0% Notes representing in excess of half of the aggregate outstanding principal amount of all 8%
Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and
other amounts owing to each of the holders shall be automatically converted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2020, the Company and the
holders of the 8% Notes entered into an amendment agreement pursuant to which the principal and interest due under the 8%
Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, that the maturity shall
be extended to the same maturity date as the 2020 Notes, namely February 28, 2022 and the 8% Notes became a secured
obligation of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 14, 2020 the Company,
entered into Securities Purchase Agreements with several accredited investors (the "2020 Note Investors")
providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes in the aggregate
amount of $1,510,000 (the "2020 Notes"). Philip D. Beck, Chief Executive Officer and Chairman of the Board,
invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000 paid by a deduction from his salary.
Theodore Stern, a director of the Company, invested $50,000 in consideration of a 2020 Note in the principal amount of
$50,000. Herbert Selzer, a director of the Company invested $100,000 in consideration of a 2020 Note in the principal amount
of $100,000. Mr. Selzer provided $50,000 on the closing date and provided the balance of the funding in April 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2020 Notes mature February 28, 2022
and are a secured obligation of the Company. The Company can prepay all or a portion of the 2020 Notes at any time provided that
such amount prepaid shall be equal to 150% of the principal due. The Company shall pay interest on the 2020 Notes at the rate of
15% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the investor's option, shares
of common stock of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company prepays all or a
portion of the 2020 Note prior to the one-year anniversary of the 2020 Note issuance date (the ("2020 Note
Anniversary"), then the Company will be required to pay interest on the principal prepaid or paid at maturity through
the 2020 Note Anniversary. Further, upon maturity or in the event of default and/or bankruptcy of the 2020 Notes, the Company
will be required to pay 150% of the principal due under the 2020 Notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the option of the 2020 Note Investors,
they may at any time convert the 2020 Notes. The amount of shares delivered shall be equal to 150% of the amount of the principal
converted divided by the conversion price of $0.20 per share. Following the 2020 Note Anniversary, the Company may require that
the 2020 Note Investors convert all or a portion of the 2020 Notes, if the Company's volume weighted average price for any
preceding 20-day period is equal to or greater than $0.30.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2020 Note Investors are entitled to
nominate and the Company will not unreasonably reject the appointment of a new member to the Company's Board of Directors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="background-color: white">The
Company and </font>FIN Holdings, Inc. and ID Solutions, Inc., two of the Company's subsidiaries, entered into a
security agreement with the 2020 Note Investors ("Security Agreement"), <font style="background-color: white">the
holders of the 8% Notes and the </font>Theodore Stern Revocable Trust (the "Stern Trust"), which is the holder of
the <font style="background-color: white">Promissory Note in the principal amount of $2,000,000 </font>(the "Stern
Note"). The Security Agreement provides that until <font style="background-color: white">the principal and accrued but
unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the
Company's obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the
Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks <i>pari
passu</i></font>. The Security Agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for
working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security
interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party
investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, the Company and the Stern Trust
entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 principal
of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date
as the 2020 Notes and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain
due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest
shall be extended to the same maturity date as the 2020 Notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with this private offering,
the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2020, the Company offered
all warrant holders holding warrants to purchase shares of Company common stock issued in July 2015 ("2015
Warrants") the right to extend the term of the 2015 Warrants for a period of two years, subject to an increase in the
Exercise Price (as defined therein) to $0.06 per share, providing that such warrant holders invested a minimum $100,000 in
the 2020 Note private offering. As a result, a portion of the 2015 Warrant holders participated in the 2020 Note offering and
the Company extended the exercise period two years for the 2015 Warrants representing the right to acquire 6,380,000 shares
of common stock. The fair market value of the modification of warrants extended was approximately $95,000. Mr. Selzer holds
2015 Warrants to acquire 880,000 shares of common stock, which were also extended as a result of his investment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the convertible notes payable outstanding at March 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">8% convertible notes payable issued December 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">428,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">15% convertible notes payable issued February 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,265,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">10% convertible notes payable issued February 2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">662,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized discount on convertible notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(811,798</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Unamortized debt issuance costs</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,384</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,444,818</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Future maturities of convertible notes payable are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">2020</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify; padding-bottom: 1.5pt">2022</td><td style="padding-bottom: 1.5pt; width: 1%"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">6,355,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,355,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
9</b> – <b>STOCKHOLDER'S EQUITY</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Common
Stock</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the quarter ended March 31, 2020, the Company granted 4,500,000 shares of Restricted Common Stock of which 3,000,000 shares were
granted to two new members of our Board of Directors in connection with their compensation for service as Board Members and 1,500,000
to an employee in connection with his employment compensation . The shares were valued at the fair market value at the date of
grant. The restricted stock vests upon the achievement of certain performance criteria.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the quarter ended March 31, 2020, the Company issued approximately 106,000 shares of common stock to a third party provider of
services in lieu of cash compensation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Warrants</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following is a summary of the Company's warrant activity for the three months ended March 31, 2020:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number of<br /> Shares</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Life</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 63%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at December 31, 2019 </font></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">47,453,227</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">0.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.4 Years</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at March 31, 2020</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,453,227</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.09</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1.2 Years</font></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the quarter ended March 31, 2020, certain of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period two years, subject to an increase in the Exercise Price from $0.05 per
share (as defined
therein) to $0.06 per share of 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. Mr. Selzer,
a director of the Company, holds 880,000 2015 Warrants, which were also extended as a result of his investment. The fair
market value of the modification of warrants extended was approximately $95,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Stock
Options</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company did not grant any stock options in the first quarter of 2019. During the three months ended March 31, 2020 , the Company
determined the grant date fair value of the options granted using the Black Scholes Method. The following assumptions were used
in the three months ended March 31, 2020:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Expected
Volatility – 75%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Expected
Term – 6.5 Years</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Risk
Free Rate – 0.6%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Dividend
Rate – 0.00%</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">   </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Activity
related to stock options for the three months ended March 31, 2020 is summarized as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Weighted<br /> Average</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Weighted<br /> Average</td><td> </td><td> </td>
<td colspan="2">Aggregate</td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: center">Number of</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Exercise</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Contractual</td><td> </td><td> </td>
<td colspan="2" style="text-align: center">Intrinsic</td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> Shares</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Term (Yrs.)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"> Value</td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; padding-bottom: 4pt">Outstanding as of December 31, 2019</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">109,400,006</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">0.20</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">6.5</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">280,000</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">990,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.06</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Forfeitures</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(566,666</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt">Outstanding as of March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">109,823,340</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">0.20</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.6</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">104,650</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt">Exercisable as of March 31, 2020</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">102,475,006</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">0.20</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">6.3</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">104,650</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
following table summarizes stock option information as of March 31, 2020:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Exercise Price </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Outstanding</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Weighted Average</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Contractual</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> Life (Yrs.)</p>
</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">Exercisable</td><td style="padding: 0 0 1.5pt; text-align: center; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0; text-align: right; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td colspan="2" style="padding: 0; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; width: 20%; text-align: right; text-indent: 0">0.00001</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 25%; text-align: right; text-indent: 0">3,500,000</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 24%; text-align: right; text-indent: 0">5.75</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 1%; text-indent: 0"> </td>
<td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td><td style="padding: 0; width: 21%; text-align: right; text-indent: 0">3,500,000</td><td style="padding: 0; width: 1%; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.05</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">35,700,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.60</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">31,950,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.06</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">990,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">9.80</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">-</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.10</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">27,200,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.75</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">27,200,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.12</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,133,334</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">9.00</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">358,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.13</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">250,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.80</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.15</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,800,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">5.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,800,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.22</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,583,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">8.05</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,500,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.25</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">2,500,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,833,333</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.26</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">8.30</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">166,667</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.29</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">7.30</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0">0.40</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.17</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">1,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0; text-align: right; text-indent: 0">0.45</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">31,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">5.85</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">31,000,000</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0; text-align: right; text-indent: 0"></td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0"><font style="font: 10pt Times New Roman, Times, Serif">109,</font>823,340</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-align: right; text-indent: 0">6.32</td><td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="padding: 0; text-indent: 0"> </td>
<td style="padding: 0; text-align: left; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; padding: 0; text-align: right; text-indent: 0">102,475,006</td><td style="padding: 0; text-align: left; text-indent: 0"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the three months ended March 31, 2020, the Company recognized approximately $121,000 of stock-based compensation expense related
to options of which non-employees expense was approximately $7,000. As of March 31, 2020, there was approximately $293,000 of
unrecognized compensation costs related to stock options outstanding of which approximately $20,000 was related to non-employees
and will be expensed through 2022.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
10 – DIRECT FINANCING LEASE</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
September 2015, the Company and an entity in Colombia entered into a rental contract for the rental of 78 kiosks to provide cash
collection and fare services at transportation stations. The lease term began in May 2016 when the kiosk was installed and operational
and when the lease commenced. The term of the rental contract is ten years at an approximate monthly rental of $11,900. The lease
has the option at the end of the lease term to purchase each unit for approximately $40. The term of the lease approximates the
expected economic life of the kiosks. The lease was accounted for as a direct financing lease.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has recorded the transaction as it net investment in the lease and will receive monthly payments of $11,856 before estimated
executory costs, or $142,272, annually, to reduce investment in the lease and record income associated with the related amount
due. Executory costs are estimated to be $1,677 month and initial direct costs are not considered significant. The transaction
resulted in incremental revenue in the quarter ended March 31, 2020 of approximately $15,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
equipment is subject to direct lease valued at approximately $748,000. At the inception of the lease term, the aggregate minimum
future lease payments to be received is approximately $1,422,000 before executory cost. Unearned income is recorded at the inception
of this lease was approximately $474,000 and will be recorded over the term of the lease using the effective income rate method.
Future minimum lease payments to be received under the lease for the next five years and thereafter are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td>Year ending December 31</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">91,611</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">122,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,864</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Sub-total</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">743,067</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Less deferred revenue</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(198,717</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Net investment in lease</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">544,350</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
11 – LEASE OBLIGATION PAYABLE</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products
business under an arrangement that is classified as a capital lease. The leased equipment is amortized on a straight-line basis
over its lease term including the last payment (61 payments) which would transfer ownership to the Company. Total amortization
related to the lease equipment as of March 31, 2020 is $99,115. The following is a schedule showing the future minimum lease payments
under capital lease by year and the present value of the minimum lease payments as of March 31, 2020. The interest rate related
to the lease obligation is 12% and the maturity date is March 31, 2022.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td>Year ending December 31</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Remainder of 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">32,322</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">43,096</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">2022</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,774</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Total minimum lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,192</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Amount representing interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,900</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 4pt">Present value of minimum lease payments</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">76,292</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
0.05
0.06