0001702924
2020-01-01
2020-12-31
0001702924
2020-12-31
0001702924
2019-12-31
0001702924
us-gaap:CommonStockMember
2019-12-31
0001702924
us-gaap:CommonStockMember
2020-12-31
0001702924
us-gaap:AdditionalPaidInCapitalMember
2019-12-31
0001702924
us-gaap:AdditionalPaidInCapitalMember
2020-12-31
0001702924
us-gaap:RetainedEarningsMember
2019-12-31
0001702924
us-gaap:RetainedEarningsMember
2020-12-31
0001702924
us-gaap:RetainedEarningsMember
2020-01-01
2020-12-31
0001702924
us-gaap:OfficeEquipmentMember
2020-12-31
0001702924
us-gaap:OfficeEquipmentMember
2019-12-31
0001702924
us-gaap:ToolsDiesAndMoldsMember
2020-12-31
0001702924
us-gaap:ToolsDiesAndMoldsMember
2019-12-31
0001702924
us-gaap:ComputerEquipmentMember
2020-12-31
0001702924
us-gaap:ComputerEquipmentMember
2019-12-31
0001702924
us-gaap:FurnitureAndFixturesMember
2020-12-31
0001702924
us-gaap:FurnitureAndFixturesMember
2019-12-31
0001702924
us-gaap:CommonStockMember
2020-01-01
2020-12-31
0001702924
us-gaap:AdditionalPaidInCapitalMember
2020-01-01
2020-12-31
0001702924
2019-01-01
2019-12-31
0001702924
us-gaap:CommonStockMember
2019-01-01
2019-12-31
0001702924
us-gaap:CommonStockMember
2018-12-31
0001702924
us-gaap:AdditionalPaidInCapitalMember
2019-01-01
2019-12-31
0001702924
us-gaap:AdditionalPaidInCapitalMember
2018-12-31
0001702924
us-gaap:RetainedEarningsMember
2019-01-01
2019-12-31
0001702924
us-gaap:RetainedEarningsMember
2018-12-31
0001702924
2018-12-31
0001702924
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2020-01-01
2020-12-31
0001702924
us-gaap:ResearchAndDevelopmentExpenseMember
2020-01-01
2020-12-31
0001702924
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-01-01
2019-12-31
0001702924
us-gaap:ResearchAndDevelopmentExpenseMember
2019-01-01
2019-12-31
0001702924
WRTC:PatentCostsMember
2020-12-31
0001702924
WRTC:PatentCostsMember
2019-12-31
0001702924
WRTC:AccruedCompensationMember
2020-12-31
0001702924
WRTC:AccruedCompensationMember
2019-12-31
0001702924
WRTC:WarrantyCostsMember
2020-12-31
0001702924
WRTC:WarrantyCostsMember
2019-12-31
0001702924
WRTC:OtherAccruedLiabilitiesMember
2020-12-31
0001702924
WRTC:OtherAccruedLiabilitiesMember
2019-12-31
0001702924
WRTC:RangeOneMember
2020-01-01
2020-12-31
0001702924
WRTC:RangeOneMember
2020-12-31
0001702924
WRTC:RangeTwoMember
2020-01-01
2020-12-31
0001702924
WRTC:RangeTwoMember
2020-12-31
0001702924
WRTC:PurchaseWarrantsMember
2020-01-01
2020-12-31
0001702924
WRTC:AgentWarrantsMember
2020-01-01
2020-12-31
0001702924
WRTC:AgentWarrantsMember
2020-12-31
0001702924
WRTC:PurchaseWarrantsMember
2020-12-31
0001702924
us-gaap:PatentsMember
2020-12-31
0001702924
us-gaap:TrademarksAndTradeNamesMember
2020-12-31
0001702924
us-gaap:PatentsMember
2019-12-31
0001702924
us-gaap:TrademarksAndTradeNamesMember
2019-12-31
0001702924
WRTC:PurchaseWarrants2Member
2020-12-31
0001702924
WRTC:PurchaseWarrants2Member
2020-01-01
2020-12-31
0001702924
WRTC:RangeThreeMember
2020-12-31
0001702924
WRTC:RangeThreeMember
2020-01-01
2020-12-31
0001702924
srt:AmericasMember
2020-01-01
2020-12-31
0001702924
srt:AmericasMember
2019-01-01
2019-12-31
0001702924
WRTC:EuropeMiddleEastAndAfricaMember
2020-01-01
2020-12-31
0001702924
WRTC:EuropeMiddleEastAndAfricaMember
2019-01-01
2019-12-31
0001702924
srt:AsiaPacificMember
2020-01-01
2020-12-31
0001702924
srt:AsiaPacificMember
2019-01-01
2019-12-31
0001702924
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-01-01
2020-12-31
0001702924
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-31
0001702924
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-12-31
0001702924
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-12-31
0001702924
us-gaap:EquipmentMember
2020-12-31
0001702924
WRTC:SoftwareMember
2020-12-31
0001702924
us-gaap:CustomerContractsMember
2020-12-31
0001702924
us-gaap:TradeNamesMember
2020-12-31
0001702924
us-gaap:NoncompeteAgreementsMember
2020-12-31
0001702924
WRTC:DeferredRevenueMember
2020-12-31
0001702924
us-gaap:SoftwareLicenseArrangementMember
2020-12-31
0001702924
WRTC:CustomerContractMember
2020-12-31
0001702924
us-gaap:TradeNamesMember
2020-12-31
0001702924
WRTC:NonCompeteAgreementMember
2020-12-31
0001702924
us-gaap:SoftwareLicenseArrangementMember
2020-01-01
2020-12-31
0001702924
WRTC:CustomerContractMember
2020-01-01
2020-12-31
0001702924
us-gaap:TradeNamesMember
2020-01-01
2020-12-31
0001702924
WRTC:NonCompeteAgreementMember
2020-01-01
2020-12-31
0001702924
us-gaap:MoneyMarketFundsMember
2020-01-01
2020-12-31
0001702924
WRTC:UsTreasurySecuritiesConsideredCashEquivalentsMember
2020-01-01
2020-12-31
0001702924
WRTC:UsTreasurySecuritiesInShortTermInvestmentsMember
2020-01-01
2020-12-31
0001702924
WRTC:PurchasedSoftwareMember
2020-12-31
0001702924
WRTC:PurchasedSoftwareMember
2019-12-31
0001702924
WRTC:OtherMember
2020-12-31
0001702924
WRTC:OtherMember
2019-12-31
0001702924
WRTC:ConsultingCostsMember
2020-12-31
0001702924
WRTC:ConsultingCostsMember
2019-12-31
0001702924
WRTC:RangeFourMember
2020-12-31
0001702924
WRTC:RangeFourMember
2020-01-01
2020-12-31
0001702924
2020-06-30
0001702924
2021-03-03
0001702924
WRTC:NorrisMember
2020-01-01
2020-12-31
0001702924
WRTC:V3Member
2020-01-01
2020-12-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
WRAP TECHNOLOGIES, INC.
10-K
2020-12-31
false
0001702924
--12-31
Non-accelerated Filer
true
false
true
false
Yes
DE
000-55838
Yes
No
No
2020
FY
16646811
16983864
12358896
1870934
195347
2655390
2244541
759445
250947
46926940
19674699
357287
242876
139088
260931
1396484
230283
12681
12681
48832480
20421470
1232349
406967
721075
194294
64800
9851
562792
144193
48140
13923
43260
18827
2083
7500
2095
343724
16015
2684
94011
128131
2340545
1075800
56006
150018
2419051
1225818
0
0
3756
2983
71704857
31922493
-25310033
-12729824
46413429
19195652
2983
3756
31922493
71704857
-12729824
-25310033
2736
16791254
-4404336
12389654
0
0
14849
48832480
20421470
5000000
5000000
0.0001
0.0001
0
0
150000000
150000000
0.0001
0.0001
37554162
29829916
37554162
29829916
3868384
656071
75673
40719
3944057
696790
1442822
481622
1046499
116547
1454736
98621
2601323
420016
1342734
276774
11630644
6653465
2788887
2236985
14419531
8890450
-13076797
-8613676
83272
291494
-3367
-3306
496588
288188
-12580209
-12580209
-8325488
-8325488
-0.37
-0.29
33846338
28652625
29829916
37554162
27364607
1923076
11351214
192
11351022
328458
127649
961026
33
960993
382947
13
382934
3890839
345834
18718994
389
18718605
1700504
35
1700469
371000
38750
705350
37
705313
58125
4
58121
2236743
2236743
1536096
1536096
1956818
279925
1410095
126001
30000
102600
3
102597
163262
46945
30364
13495
-68108
-193506
121843
80069
0
102600
1685727
190951
342741
1892768
508498
136084
825382
174052
-128132
-62851
-341629
343724
492564
112346
0
-96000
-1669
2684
-12186924
-8485637
248897
256742
128914
114274
0
11169
-26110885
-382185
12400002
12499994
732796
1148780
26190483
2112117
1016645
28666
705350
58125
37960756
13492790
-337053
4624968
0
341000
0
205894
7566502
9857457
287266
165119
747443
433172
75106
22177
62679
21414
48140
13923
1248893
653323
64451
413
1342046
1590805
574755
315608
147781
44454
80936
59004
180573
83368
165465
128782
217468
72732
144736
44239
1075508
234344
279294
83964
176425
57919
662250
0
50000
0
22587
4061
1396484
230283
18526
2706
150017
278149
121844
80069
137228
94599
P1Y6M14D
.07
3206910
6620620
5017181
2066667
2076922
5155976
473483
6.36
5.41
4.82
6.00
6.62
5.08
4.46
3931586
2928750
2067500
1422750
85000
2073836
350000
1423836
1000000
371000
38750
50000
100000
4.41
2.96
1.68
1.50
3.75
5.29
11.22
6.66
5.41
1.90
1.50
3.00
1.50
P3Y8M16D
P4Y5M8D
P4Y10M20D
P3Y8M16D
P3Y4M20D
P2Y10M10D
P5Y10M20D
P9Y6M29D
.4700
0.4900
.0038
0.0241
0.0000
0.0000
0.0000
0.0000
P5Y7M20D
P3Y6M
2.90
2.06
143390
23297
0
0
3158000
1800000
-3158000
-1800000
0
0
2642000
1748000
216000
114000
300000
-62000
5444000
2430000
45000
26000
542000
239000
169000
9000
6200000
2704000
396000
58000
396000
58000
5804000
2646000
5804000
2646000
0
0
18000
265000
24994360
0
275000
0
78506
150018
22500
0
14849
0
416683
0
-12580209
-8325488
-12565360
-8325488
14849
0
14849
261679
1646318
26
1646292
675000
3847500
68
3847432
130603
0
13
-13
10140
0
2321
0
3853
0
210000
0
543563
0
10000000
0
34979511
0
414362
0
14849
0
15000
0
297500
0
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Organization and Business Description</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Wrap Technologies, Inc., a Delaware corporation
(the “<i>Company</i>”, “<i>we</i>”, “<i>us</i>”, and “<i>our</i>”), is a publicly
traded company with our Common Stock, par value $0.0001 per share (“<i>Common Stock</i>”), listed on the Nasdaq Capital
Market (“<i>Nasdaq</i>”) under the trading symbol “WRAP”. The Company is a developer and supplier of public
safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap®
remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South
America, Europe, Middle East and Asia.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of Consolidation</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one wholly-owned subsidiary,
Wrap Reality, Inc. formed in December 2020 (see Note 3) and has commenced selling its virtual reality training system primarily
targeting law enforcement agencies. The consolidated financial statements include the accounts of this subsidiary after elimination
of intercompany transactions and accounts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation and Use of Estimates</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America (“<i>U.S. GAAP</i>”).
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts,
valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets
and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses
during the reporting period. Actual results could materially differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Concentrations of Risk</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Credit Risk</i> – Financial instruments
that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, U.S. treasury
bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial
institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash
and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash
and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate
risks. To date, the Company has not experienced any losses on its cash and cash equivalents.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Concentrations of Accounts Receivable and
Revenue</i> – The Company has a limited number of domestic and international customers. The Company may experience concentrations
in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 16).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Concentration of Suppliers</i> – The
Company relies on a limited number of component suppliers and contract suppliers. In particular, a single supplier is currently
the sole manufacturer of the Company’s laser assembly with some parts sole sourced from other suppliers. If supplier shortages
occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could
in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Impact of COVID-19</i> – <font style="background-color: white">In
December 2019, a novel strain of coronavirus <i>(“COVID-19</i>”) emerged in China.</font> In March 2020, the World
Health Organization declared the outbreak of a novel coronavirus (“<i>COVID-19</i>”) as a pandemic. <font style="background-color: white">While
initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it spread to other
countries and infections have been reported globally. The extent to which the coronavirus impacts our operations will continue
to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of
the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus
or treat its impact, among others. In particular, the continued spread of the coronavirus globally or emergence of new strains
could adversely impact our operations, including our manufacturing and supply chain. Our operations could be negatively affected
if employees are quarantined as the result of exposure to a contagious illness. Similarly, travel restrictions resulting from the
rapid spread of contagious illnesses may have a material adverse effect on our business and results of operations.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist
primarily of amounts invested in Money Market Funds and United States (“U.S.”) Treasury bills and are stated at fair
value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Short-Term Investments</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s short-term investments consist
of U.S. Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance
sheet date. As of December 31, 2020, all of the Company’s short-term investments were classified as available-for-sale and
are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive
income in our consolidated statements of stockholders’ equity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">We adopted</font> Accounting
Standards Codification (“<i>ASC</i>”) <font style="background-color: white">Topic 326 issued by the</font> Financial
Accounting Standards Board (“<i>FASB</i>”) <font style="background-color: white">effective January 1, 2020, and
applied the credit loss guidance related to short-term investments prospectively as we had no historical short-term investments<font style="color: #212529">.
Because we do not have any history of losses for our short-term investments, o</font>ur expected loss allowance methodology is
developed using published or estimated credit default rates for similar investments and current and future economic and market
conditions.</font> Any unrealized losses related to credit loss factors are recorded through an allowance for credit losses
in other (expense) income, in our consolidated statements of operations, rather than as a reduction to the amortized cost basis
in other comprehensive (loss) income, when a decline in fair value has resulted from a credit loss. We determine realized gains
or losses on the sale of investments on a specific identification method, and record such gains or losses as other (expense) income,
in our consolidated statements of operations. <font style="background-color: white">We did not record a credit loss reserve
for short-term investments during the year ended December 31, 2020.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Share-Based Compensation</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the fair value recognition
provisions issued by the Financial Accounting Standards Board (“<i>FASB</i>”) in Accounting Standards Codification
(“<i>ASC</i>”) Topic 718, Stock Compensation (“<i>ASC 718</i>”) and has adopted Accounting Standards Update
(“<i>ASU</i>”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized
during 2020 and 2019 includes stock option and restricted stock unit compensation expense. <font style="background-color: white">The
grant date fair value of stock options is determined using the Black-Scholes option-pricing model.</font> The grant date is the
date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based
payment award. <font style="background-color: white">The Black-Scholes option-pricing model requires inputs including the market
price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding,
the implied stock volatilities of several publicly-traded peers over the expected term of stock options, risk-free interest rate
and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine.</font> The
grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date
of the grant. We determine the amount of share-based compensation expense based on awards that we ultimately expect to vest
and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense
over the vesting term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Loss per Share</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per common share is computed by
dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted
net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s
losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock
options, restricted stock units and warrants exercisable or issuable for a total of 7,566,502 and 9,857,457 shares of Common Stock
were outstanding at December 31, 2020 and 2019, respectively. These securities are not included in the computation of diluted
net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable and Allowance for Doubtful
Accounts</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company carries accounts receivable at historical
cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates accounts receivable and establishes an
allowance for doubtful accounts for estimated losses. The Company’s expected loss allowance methodology for accounts receivable
is developed using historical collection experience, when available any published or estimated credit default rates for entities
that represent our customer base, current and future economic and market conditions and a review of the current status of customers'
trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers
that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment
confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined
to be uncollectible.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020 the Company had an allowance
of $10,140 resulting in part from global uncertainty resulting from the COVID-19 virus. There was no allowance for doubtful accounts
recorded at December 31, 2019. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical
experience, such estimates could change and impact our future reported financial results.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Inventories</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories are valued at the lower of cost
or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory
is comprised of raw materials, assemblies and finished products intended for sale to customers<i>.</i> The Company evaluates the
need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s
products.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020 and 2019 the Company had
no reserve for obsolescence.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Contract Manufacturers</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company employs contract manufacturers for
production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to
time, but recognizes no revenue or markup on such transactions. During 2020 and 2019, the Company performed assembly of products
in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property, Equipment and Depreciation</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost. Depreciation
on property and equipment is computed over the estimated useful lives of three years using the straight-line method. The Company
intends, on any retirement or disposition of property and equipment, that the related cost and accumulated depreciation or amortization
will be removed and a gain or loss recorded.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Business Combinations</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Transactions in which the Company obtains control
of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets
acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company
measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the
acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with
a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition
date and until paid is re-measured on a recurring basis and classified as a liability.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Intangible Assets</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets consisted of (a) capitalized
legal fees and filing costs related to obtaining patents and trademarks, (b) customer agreements, tradenames, software, non-solicitation
and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date, and (c) the purchase
cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives
have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject
to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair
value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment
loss shall be recognized.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of intangibles is periodically
reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than
its carrying value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Impairment of Long-Lived Assets</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets and identifiable intangibles
held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes
in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. The Company
did not recognize any impairment loss during the years ended December 31, 2020 and 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Classification and Valuation of Warrants</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants as either
equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified
as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation
is made. As of December 31, 2020, the Company has no warrants or other derivative financial instruments that require separate accounting
as liabilities and periodic revaluation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising and Promotion Costs</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising costs are charged to expense as
incurred and were $287,266 and $165,119 for the years ended December 31, 2020 and 2019, respectively. The Company also incurred
product promotion costs for demonstration products delivered to prospective customers of $747,443 and $433,172 for the years ended
December 31, 2020 and 2019, respectively. Advertising and promotion costs are included in selling, general and administrative expenses
in the accompanying statements of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Demonstration and Training Costs</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains a demonstration and training
department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training
is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts
local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement
agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or
field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen
demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Research and Development Costs</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development costs consist primarily
of contract development costs and experimental work materials and certain startup costs. Research and development costs with no
alternative use are expensed as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Leases</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the commencement date of a lease, the Company
recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease
term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not
provide an implicit rate and due to lack of borrowing history or ability, the Company uses as its incremental borrowing rate a
low-grade debt rate published by the Federal Reserve Bank. The right-of-use (“ROU”) asset is measured at cost, which
includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives.
Lease liabilities are recorded as a current liability for the portion due within one year with the balance as a long-term
liability. ROU assets are recorded as operating lease right-of-use asset, net.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued ASU 2014-09, Revenue
from Contracts with Customers (“ASU 2014-09”) and ASC Subtopic 340-40, Other Assets and Deferred Costs - Contracts
with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2018, the Company adopted Topic
606 and, as it had no prior revenue or contracts with customers, there was no transition required nor any impact on prior results.
ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification
of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction
price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. See Note 2
for additional information.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Shipping and Handling Costs</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shipping and handling costs are included in
cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs
were $75,106 and $22,177 for the years ended December 31, 2020 and 2019, respectively. Actual revenues from shipping and handling
were $62,679 and $21,414 for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Warranty Reserves</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company warrants its products and accessories
to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally
limited. The Company currently provides direct warranty service. International market warranties are generally similar to the U.S.
market.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company establishes a warranty reserve based
on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the
number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the
adequacy of the provision for warranty costs each reporting period. The warranty reserve was $48,140 and $13,923 at December 31,
2020 and 2019. Actual warranty costs could differ from estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Segment Information</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 280, “Segment Reporting,”
requires use of the “management approach” model for segment reporting. The management approach model is based on the
way a company’s management organizes segments within the company for making operating decisions and assessing performance.
The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No income tax expense was recorded for the periods
ended December 31, 2020 and 2019 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary
differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains a valuation allowance
with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing
the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current
period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward
period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change
in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in
income in the year of the change in estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Subsequent Events</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has evaluated events subsequent to
December 31, 2020 through the date the accompanying financial statements were filed with the Securities and Exchange Commission
and noted that there have been no events or transactions which would affect the Company’s financial statements for the year
ended December 31, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recently Issued Accounting Guidance</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Adopted First Quarter of 2020:</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-13,
Fair Value Measurement (“<i>Topic 820</i>”): Disclosure Framework Changes to the Disclosure Requirements for Fair Value
Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, to improve the effectiveness of
fair value measurement disclosures by removing or modifying certain disclosure requirements and adding other requirements. This
ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after
December 15, 2019. The adoption of this standard in the first quarter ended March 31, 2020 had no impact on the Company’s
financial statements or disclosures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13, Financial
Instruments - Credit Losses <i>(“Topic 326”):</i> Measurement of Credit Losses on Financial Instruments which
was further updated and clarified by the FASB through issuance of additional related ASUs<i>.</i> Under ASU 2016-13, existing
guidance on reporting credit losses for trade and other receivables and available for sale debt securities have been replaced with
a new forward-looking “expected loss” model that has resulted in the earlier recognition of allowances for losses.
The adoption of these standards in the first quarter ended March 31, 2020 had no impact on the Company’s financial statements
or disclosures. As part of our assessment of the adequacy of our allowances for credit losses, we consider a number of factors
including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of
receivables, expected loss rates and collateral exposures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Other Guidance:</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued
Accounting Standards Update 2019-12, Income Taxes (“<i>Topic 740</i>”): Simplifying the Accounting for
Income Taxes (“<i>ASU 2019-12</i>”), which is intended to simplify various aspects related to accounting
for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies
and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December
15, 2020, with early adoption permitted. We do not expect that the adoption of this ASU will have a significant impact on
our financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06, <i>Debt—Debt
with Conversion and Other Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s
Own Equity “(Subtopic 815-40”): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity</i>,
which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The
ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception
and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years,
and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is
currently evaluating the impact of this standard on its financial statements and related disclosures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed other recently issued,
but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected
to cause a material impact on its financial condition or the results of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company enters into contracts that include
various combinations of products, accessories. software and services, each of which are generally distinct and are accounted for
as separate performance obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A performance obligation is a promise in a contract
to transfer a distinct good or service to a customer, and is the unit of account in Topic 606. For contracts with a single performance
obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance
obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate
of the standalone selling price (“<i>SSP</i>”) of each distinct good or service in a contract. The Company determines
standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling
price is not observable through past transactions, the Company estimates the standalone selling price considering available information
such as market conditions and internally approved pricing guidelines related to the performance obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Most of the Company’s products and accessories
are sold through domestic and international distributors. Performance obligations to deliver products and accessories are generally
satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our
standard terms and conditions. Periodically, certain customers request bill and hold transactions for future delivery as scheduled
and designated by them. In such cases, revenue is not recognized until after control, title and risk of ownership has transferred
which is generally when the customer has requested such transaction under normal billing and payment terms and has been notified
that the product (i) has been completed according to customer specifications, (ii) has passed quality control inspections, and
(iii) has been tagged and packed for shipment, separated from other inventory and ready for physical transfer to the customer. The
value associated with custodial storage services is deemed immaterial in the context of such contracts and in total, and accordingly,
none of the transaction price is allocated to such service.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has elected to recognize shipping
costs as an expense in cost of revenue when control has transferred to the customer.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Time-based virtual reality system contracts
generally include setup, training and the use of software and hardware for a fixed term, generally one to five years and support
and upgrade services during the same period. The Company does not sell time-based arrangements without setup, training and support
services and therefore revenues for the entire arrangement are recognized on a straight-line basis over the term. When hardware
is bundled and not sold separately the Company allocates the contract transaction price to each performance obligation using the
SSP of each distinct good and service in the contract.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The timing of revenue recognition may differ
from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are
invoiced and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract
liability (deferred revenue) when revenue will be recognized subsequent to invoicing. At December 31, 2020 the Company’s
deferred revenue totaled $16,015, of which $14,125 related to virtual reality training and $1,890 related to extended warranties.
At December 31, 2019 the Company had deferred revenue of $2,684 related to future training contracted as part of a sale.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may also receive consideration,
per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a
contract liability.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes an asset if there are
incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the
underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for any
such underlying performance obligations. The Company had no such assets at December 31, 2020 and December 31, 2019. The Company
will apply the practical expedient to expense any sales commissions related to performance obligations with an amortization of
one year or less when incurred within selling, general and administrative expense.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Estimated costs for the Company’s standard
one-year warranty are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged
to cost of products sold.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 14, 2020, the Company, through a
new wholly-owned subsidiary, Wrap Reality, Inc., entered into an Asset Purchase Agreement with NSENA Inc, a Delaware corporation,
to acquire all of NSENA’s tangible and intangible assets, properties, and rights held for use in connection with NSENA’s
virtual reality training business. The acquisition enhances the Company’s training services primarily targeting law enforcement
agencies.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company paid to NSENA cash consideration
of $210,000 and recorded a short-term business acquisition liability of $275,000. The liability is payable $100,000 on March 15,
2021, $100,000 on June 15, 2021 and $75,000 on September 15, 2021. In addition, the Company assumed a $15,000 liability for unearned
revenues. As additional earn-out consideration, the Company agreed to pay NSENA 10% of net revenues (or a lesser amount equal to
50% of direct profit) from specific identified prospects that become revenue customers before September 30, 2021 but only on amounts
collected between Closing and June 30, 2022. <font style="color: #212529">The fair value of contingent consideration determined
as $22,500 is included as a long-term business acquisition liability on our consolidated balance sheet.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The acquisition was accounted for under the
acquisition method of accounting. Under acquisition accounting, the acquired tangible and intangible assets and liabilities of
NSENA have been recorded at their respective fair values. The following table summarizes the estimates of fair value of the assets
acquired and liabilities assumed on December 14, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">10,250</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Software</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">460,250</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Customer contracts</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Tradenames</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Noncompete agreements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">10,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred revenue</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(15,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">  Total consideration</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">507,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A portion of the fair value of the consideration
transferred has been assigned to identifiable intangible assets as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Description</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Useful life in years</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Fair Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 84%; text-align: justify"><font style="font-size: 8pt">Software</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: center"><font style="font-size: 8pt">5</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: right"><font style="font-size: 8pt">460,250</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Customer contracts</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">1</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Tradenames</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">1</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2,000</font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Noncompete agreements</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">2</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">10,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total acquired intangible assets</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">512,250</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All assets acquired were determined to be finite-lived
intangible assets and are being amortized on a straight-line basis over its estimated useful life with no residual value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets and liabilities recorded at fair value
on a recurring basis in the Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis
or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair
values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about
how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer
a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance
also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value
based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent
sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs
to valuation techniques is briefly summarized as follows: </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 1</i>—Inputs are unadjusted,
quoted prices in active markets for identical assets or liabilities at the measurement date;</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 2—</i>Inputs are observable,
unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar
assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable
market data for substantially the full term of the related assets or liabilities; and </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 3—</i>Unobservable inputs that
are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s cash equivalent Money Market
Funds and short-term investments consisting of U.S. Treasury bill securities are classified as Level 1 because they are valued
using quoted market prices.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table shows the Company’s
cash and cash equivalents, Money Market Funds and short-term investments by significant investment category as of December
31, 2020. The Company only had cash and cash equivalents, including Money Market Funds of $16,618,498 at December 31, 2019 all
which were considered Level 1.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of December 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Adjusted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Unrealized</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Unrealized</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Market</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Cost</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Gains</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Losses</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Level 1:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Money Market Funds</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">6,034,757</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">6,034,757</font></td>
<td style="width: 4%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">U.S. Treasury securities considered cash equivalents</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,997,812</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,997,812</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">U.S. Treasury securities in short-term investments</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">24,979,511</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">14,849</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">24,994,360</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Total Financial Assets</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">41,012,080</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">14,849</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">41,026,929</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Unrealized
gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss. As of
December 31, 2020, $14,849 was recorded to accumulated other comprehensive gain.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our financial instruments also include accounts
receivable, accounts payable, accrued liabilities and business acquisition liabilities. Due to the short-term nature of these instruments,
their fair values approximate their carrying values on the balance sheet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory is recorded at the lower of cost or
net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventories
consisted of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Finished goods</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,248,893</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">653,323</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Work in process</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">64,451</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">413</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Raw materials</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,342,046</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,590,805</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Inventories, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,655,390</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,244,541</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the years ended December 31, 2020 and
2019 the Company wrote off $68,108 and $193,506, respectively, of raw material and scrap parts primarily due to startup production,
model changes and improvements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment consisted of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Production and lab equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">147,781</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">44,454</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Tooling</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,936</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">59,004</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Computer equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">180,573</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">83,368</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Furniture, fixtures and improvements</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">165,465</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">128,782</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">574,755</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">315,608</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accumulated depreciation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(217,468</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(72,732</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Property and equipment, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">357,287</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">242,876</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense was $144,736 and $44,239
for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets consisted of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Amortizable intangible assets:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Patents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">279,294</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">176,425</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Trademarks</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">83,964</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">57,919</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Purchased software</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">662,250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,075,508</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">234,344</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Accumulated amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,587</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(4,061</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Total amortizable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,052,921</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">230,283</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Indefinite life assets (non-amortizable)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">343,563</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Total intangible assets-net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,396,484</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">230,283</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense was $18,526 and $2,706
for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020, annual amortization of
intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">186,266</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">150,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">278,591</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total estimated amortization expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,052,921</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts payable includes $52,950 due to related
party Syzygy Licensing, LLC (“<i>Syzygy</i>”) as of December 31, 2020. Accounts payable at December 31, 2020 also included
$10,000 due to related party V3 Capital Partners, LLC (see Note 14).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued liabilities consist of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Patent and legal costs</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">64,800</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,851</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accrued compensation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">562,792</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">144,193</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Warranty costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">48,140</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">13,923</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Consulting costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,083</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">7,500</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Taxes and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">43,260</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">18,827</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accrued liabilities</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">721,075</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">194,294</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued compensation includes $555,000 in bonuses
and $7,792 in commissions payable at December 31, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASU 2016-02, Leases (<i>“Topic
842”</i>) on January 1, 2019 using the modified retrospective approach. The Company has elected not to apply ASC Topic 842
to arrangements with lease terms of 12 months or less. The adoption of the standard resulted in the recognition of a ROU asset
and lease liability of $12,900 for one operating lease as of January 1, 2019, with no impact to retained earnings. Prior year
amounts have not been restated. That lease is for 1,890 square feet of improved office and warehouse space in Las Vegas, Nevada.
In January 2019, the Company recorded an additional $17,101 ROU remeasurement asset and liability from an extension of the facility
lease to December 31, 2020. In March 2019, the Company recorded a $57,587 ROU asset and liability for a two-year facility operating
lease for 1,906 square feet of improved office and warehouse space in Lake Forest, California expiring in February 2021. In June
2019, the Company recorded a $253,412 ROU asset and liability for a 38-month facility operating lease for 11,256 square feet of
improved office, assembly, training and warehouse space in Tempe, Arizona expiring in July 2022.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization of ROU operating lease assets was
$121,844 and $80,069 for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating lease expense for capitalized operating
leases included in operating activities was $137,228 and $94,599 for the years ended December 31, 2020 and 2019, respectively.
Operating lease obligations recorded on the balance sheet at December 31, 2020 are:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Operating lease liability- short term</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">94,011</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Operating lease liability - long term</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">56,006</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Total Operating Lease Liability</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">150,017</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future lease payments included in the measurement
of lease liabilities on the balance sheet at December 31, 2020 for future periods are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">101,406</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2022</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">57,328</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt">Total future minimum lease payments</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">158,734</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Less imputed interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(8,717</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">150,017</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The weighted average remaining lease term is
1.54 years and the weighted average discount rate is 7.0%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not have any short-term lease
expense during the years ended December 31, 2020 and December 31, 2019. The Company does not have any finance leases.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s debt at December 31, 2020
included operating lease liabilities (see Note 9) and business acquisition liabilities (see Note 3). Debt at December 31, 2019
consisted of operating lease liabilities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2020, the Company received loan proceeds
of $414,362 from Bank of America, N.A. (the “<i>Lender</i>”), as a potentially forgivable loan (the “<i>PPP Loan</i>”)
from the U.S. Small Business Administration pursuant to the Paycheck Protection Program (the “<i>PPP</i>”) enacted
by Congress under Division A, Title 1 of the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 636(a)(36)) (the “<i>CARES
Act</i>”), which was enacted March 27, 2020. The PPP Loan was in the form of a two-year Promissory Note dated May 1, 2020
payable to the Lender (the “<i>PPP Note</i>”), bearing interest at a rate of 1% per annum.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of the CARES Act, the Company
subsequently applied for and in December 2020 was granted forgiveness for the PPP Loan plus interest. The Company’s PPP Loan
in the amount of $414,362 and accrued interest was forgiven in full by the Small Business Administration. The Company recognized
$416,683 in debt forgiveness income as a result of the forgiveness.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s authorized capital consists
of 150,000,000 shares of Common Stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001
per share (“<i>Preferred Stock</i>”).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>2019 Follow-On Public Offering</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 18, 2019, the Company consummated the
June 2019 Follow-On Offering, pursuant to which a total of 1,923,076 Units were offered and sold at the public offering price of
$6.50 per Unit. Each Unit sold consisted of one</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">share of Common Stock and one detachable two-year
warrant to purchase one share of Common Stock at an exercise price of $6.50 per share. The offering resulted in the Company’s
receipt of gross cash proceeds of $12.5 million, or net cash proceeds of $11.35 million after deduction of commissions and offering
costs.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the June 2019 Follow-On Offering,
the Company also issued placement agent warrants exercisable for 153,846 shares of Common Stock for two years at an exercise price
of $8.125 per share. The estimated fair value of these warrants was $205,894, as determined using the Black-Scholes methodology
(assuming estimated volatility of 49%, risk-free interest rate of 1.86%, and expected dividend yield of 0.0%). This amount was
recorded as both an increase to additional paid in capital and as a non-cash issuance cost of the offering.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>2020 Follow-On Public Offering</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 2, 2020, the Company consummated a follow-on
public offering (the “<i>Unit Offering</i>”) whereby the Company offered and sold certain securities consisting of
one share of Common Stock and one detachable two-year warrant to purchase one share of Common Stock at an exercise price of $6.00
per share (a “Unit”) at the public offering price of $6.00 per Unit. Pursuant to the Unit Offering, the Company sold
2,066,667 Units, resulting in the Company’s receipt of gross cash proceeds of $12.4 million and net cash proceeds of $11.67
million after deduction of commissions and offering costs.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Summary of Stock Purchase Warrants</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes warrant activity
during the years ended December 31, 2020 and 2019:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Average Purchase</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price Per Share</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2018</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">5,017,181</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">4.82</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,076,922</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.62</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants exercised</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(473,483</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">4.46</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">6,620,620</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,066,667</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.00</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(5,155,976</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.08</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants cancelled</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(324,401</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">5.00</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2020</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,206,910</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 3pt; text-align: right"><font style="font-size: 8pt">6.36</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2020 the
Company received gross proceeds of $26,190,483 from the exercise of 5,155,976 warrants and paid $1,016,645 as an agent fee to facilitate
exercise of certain warrants resulting in net proceeds of $25,173,838. Company officer Elwood Norris exercised 333,334 of these
warrants at $5.00 per share for cash of $1,666,670.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2019 the
Company received gross proceeds of $2,112,117 from the exercise of 2,076,922 warrants and paid an agent fee of $28,666 for net
proceeds of $2,083,451.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has outstanding Common Stock purchase
warrants as of December 31, 2020 as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Number of</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Exercise Price</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 8pt"><b>Description</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Common Shares</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Per Share</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Expiration
Date</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 43%; text-align: justify"><font style="font-size: 8pt">Purchase Warrants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt">1,661,397</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt">6.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 21%; text-align: center"><font style="font-size: 8pt">June 18, 2021</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Agent Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">153,846</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">8.125</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">June 18, 2021</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Purchase Warrants</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,391,667</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.00</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">June 1, 2022</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,206,910</font></td>
<td style="padding-bottom: 3pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2017, the Company adopted and the
stockholders approved the 2017 Stock Incentive Plan (the “<i>Plan</i>”) authorizing 2,000,000 shares of Company Common
Stock for issuance as stock options and restricted stock units (“<i>RSUs</i>”) to employees, directors or consultants.
In May 2019, the stockholders ratified an increase in the Plan authorizing an additional 2,100,000 shares of Common Stock and in
June 2020 ratified a further authorization of 1,900,000 shares of Common Stock for a total of 6,000,000 shares subject to the Plan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generally recognizes share-based
compensation expense on the grant date and over the period of vesting or period that services will be provided.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock Options</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes stock option
activity for the years ended December 31, 2019 and 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Options on</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Aggregate</b></font></td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Common</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Intrinsic</b></font></td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Shares</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 46%; text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">2,067,500</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">1.68</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">4.44</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1,000,000</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(38,750</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeited, cancelled, expired</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(100,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2,928,750</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2.96</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.71</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1,423,836</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.66</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(371,000</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.90</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeited, cancelled, expired</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(50,000</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.00</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,931,586</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4.41</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4.89</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,176,337</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Vested and exercisable at December 31, 2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,091,084</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2.68</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2.60</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,965,155</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the NSENA acquisition in
December 2020 the Company granted 190,000 service-based options and 100,000 performance-based options for future services as employees
and consultants at an exercise price of $5.46 per share. Other than the 100,000 performance-based options, all outstanding options
at December 31, 2020 are service-based options.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to December 31, 2020 a total of 58,500
options were exercised for cash proceeds of $87,750.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the Black-Scholes option pricing
model to determine the fair value of the options granted. The following table summarizes the assumptions used to compute the fair
value of options granted to employees and non-employees:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected stock price volatility</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">47</font></td>
<td style="width: 1%"><font style="font-size: 8pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">49</font></td>
<td style="width: 2%"><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.38</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2.41</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeiture rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected life of options - years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.64</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3.50</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Weighted-average fair value of options granted</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2.90</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2.06</font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Estimated volatility is a measure of the amount
by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s
estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available.
The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period
equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient
historical data of its stock price.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The risk-free interest rate assumption is based
upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options.
The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to
pay cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock
options as the Company does not have sufficient historical data.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information about
stock options outstanding at December 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Range of</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercise Prices</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Outstanding</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Life (Years)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercisable</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 22%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1,422,750</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">2.39</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1,422,750</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.15 - $3.61</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">85,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2.86</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.75</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">85,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.75</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">4.26 - $6.58</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,073,836</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.89</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.29</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">583,334</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">11.22</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">350,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9.58</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">11.22</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Restricted Stock Units</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Plan provides for the grant of restricted
stock units (“<i>RSUs”</i>). RSUs are settled in shares of the Company’s Common Stock as the RSUs become vested.
In January 2019 the Company granted 263,087 service-based RSUs to officers and employees vesting over a period of three years.
In August and September 2019, the Company granted 45,000 service-based RSUs to employees vesting over a period of three years.
In January 2020 the Company granted 73,992 service-based RSUs to officers and directors vesting over a period of three years. In
April 2020 the Company granted 122,222 service-based RSUs to employees vesting over a period of three years. Also, in April 2020
the Company granted an officer 35,211 performance-based RSUs. During the period July 2020 to December 2020 the Company granted
114,660 service-based RSU’s to employees vesting over three and four years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes RSU activity
under the Plan for the years ended December 31, 2019 and 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Service-Based</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Grant Date</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Vesting</b></font></td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>RSU's</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Fair Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Period</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 64%; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 0%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 0%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 12%"> </td>
<td> </td>
<td> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - service based</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">308,087</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.77</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">3.00 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">308,087</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.77</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - service based</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">310,874</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.02</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">3.02 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - performance based</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">35,211</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4.26</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Vested</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(144,687</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.17</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Forfeited and cancelled</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(81,479</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.47</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2020</font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt double; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">428,006</font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.13</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">2.27 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Share-Based Compensation Expense</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recorded share-based compensation
in its statements of operations for the relevant periods for options and RSUs as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Selling, general and administrative</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,956,818</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,410,095</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Research and development</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">279,925</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">126,001</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total share-based expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,236,743</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,536,096</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, total estimated compensation
cost of stock options granted and outstanding but not yet vested was $4.6 million which is expected to be recognized over the weighted
average period of 2.8 years. As of December 31, 2020, total estimated compensation cost of RSUs granted and outstanding but not
yet vested was $2.2 million which is expected to be recognized over the weighted average period of 2.3 years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Facility Leases</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 9.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Related Party Technology License Agreement</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is obligated to pay royalties and
development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated as of
September 30, 2016 with Syzygy, a company owned and controlled by stockholders/officers Mr. Elwood Norris and Mr. James Barnes.
The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology
up to an aggregate of $1,000,000 in royalties or until September 30, 2026, whichever occurs earlier. The Company recorded $143,390
and $23,297 for royalties incurred during the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Purchase Commitments</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020 the Company was committed
for approximately $2.2 million for future component deliveries and contract services that are generally subject to modification
or rescheduling in the normal course of business.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Indemnifications and Guarantees</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our officers and directors are indemnified as
to personal liability as provided by the Delaware law and the Company’s articles and bylaws. The Company may also undertake
indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with
any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future.
Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could
range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary
course of business. The Company has no liabilities recorded for such indemnities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Regulatory Agencies</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may be subject to oversight from
regulatory agencies regarding firearms that arise in the ordinary course of its business.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Litigation</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Securities Litigation</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 23, 2020, Carone Cobden filed a
putative class action complaint against the Company, former Chief Executive Officer David Norris (“<i>Norris</i>”),
Chief Financial Officer, James A. Barnes (“<i>Barnes</i>”), and President, Thomas Smith (“<i>Smith</i>”)
in the United States District Court for the Central District of California, docketed as Case No. 2-20-cv-08760-DMG-PVCx (the “<i>Cobden
Complaint</i>”). The Cobden Complaint alleges that the named defendants, in their capacities as officers of the Company,
knowingly made false or misleading statements or omissions regarding trials of the Company’s BolaWrap product conducted by
the Los Angeles Police Department (the “<i>BolaWrap Pilot Program</i>”).  The Cobden Complaint also alleges that
the conduct of the named defendants artificially inflated the price of the Company’s traded securities, and that the disclosure
of certain adverse information to the public led to a decline in the market value of the Company’s securities.  The
Cobden Complaint further alleges violations of Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder,
and defines the class period as July 31, 2020 through September 23, 2020. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2020, Joseph Mercurio filed a
second putative class action complaint against the Company, Norris, Smith, and Barnes in the same court, which contains substantially
the same factual allegations and legal claims as set forth in the Cobden Complaint, and is docketed as Case No. 2-20-cv-09030-DMG-PVCx
(the “<i>Mercurio Complaint</i>”).  On October 15, 2020, Paula Earley filed a third putative class action
complaint against the Company, Smith, Norris, Barnes, Chief Strategy Officer Mike Rothans (“Rothans”), and former Chief
Executive Officer, Marc Thomas (“<i>Thomas</i>”) in the same court, which contains many of the same factual allegations
and legal claims as set forth in the Cobden and Mercurio Complaints, but defines the class period as April 29, 2020 through September
23, 2020, and alleges additional false or misleading statements in connection with BolaWrap and the BolaWrap Pilot Program (the
“<i>Earley Complaint</i>”).  The Earley Complaint is docketed as Case No. 2-20-cv-09444-DMG-PVCx. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 3, 2020, the Hon. Dolly M.
Gee consolidated the three above-mentioned cases under the caption <i>In re Wrap Technologies, Inc. Securities Exchange
Act Litigation</i>, Case No. 20-8760-DMG (“<i>PVCx</i>”) (the “<i>Securities Action</i>”).  On January
7, 2021, the Court appointed a lead plaintiff in the Securities Action, who designated its attorneys as lead counsel.  On
January 21, 2021, Judge Gee ordered that a consolidated amended complaint be filed in the Securities Action on or before March
12, 2021, with defendants’ motion to dismiss to be filed on or before April 26, 2021, and a hearing on the motion to dismiss
to be held on July 23, 2021.  The Company believes that the complaints underlying the Securities Action are without merit
and intends to vigorously defend against the claims raised therein.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Shareholder Derivative Litigation</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 13, 2020, Naresh Rammohan filed
a shareholder derivative action in the United States District Court for the Central District of California against Smith, Barnes,
Rothans, Thomas, Norris, and Messrs. Scot Cohen, Patrick Kinsella, Michael Parris, and Wayne Walker, alleging unjust enrichment,
breach of fiduciary duty, waste of corporate assets, and contribution claims under the Securities Exchange Act of 1934, docketed
as Case No. 2:20-cv-10444-DMG-PVCx (the “<i>Rammohan Complaint</i>”).  The Rammohan Complaint names the Company
as a nominal defendant and recites many of the allegations set forth in the Securities Action relating to the BolaWrap Pilot Program. 
On January 20, 2021, Ray Westerman filed a second derivative complaint in the same court against the same parties, alleging breach
of fiduciary duty and contribution claims under the Securities Exchange Act of 1934, docketed as Case No. 2:21-cv-00550-DMG-PVCx
(the “<i>Westerman Complaint</i>”).  On January 22, 2021, Jesse Lowe filed a third derivative complaint in the
same court against the same parties, alleging breach of fiduciary duty and asserting various claims under the Securities Exchange
Act of 1934, docketed as Case No. 2:21-cv-00597-DMG-PVCx (the “<i>Lowe Complaint</i>”). </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The above-mentioned derivative cases (collectively,
the “<i>Derivative Actions</i>”) each been have been transferred to Judge Gee as cases related to the Securities Action. 
On January 27, 2021, the Judge Gee issued an order to show cause why the Derivative Actions should not be consolidated under the
caption <i>In re Wrap Technologies, Inc. Shareholder Derivative Litigation</i>, Case No. 2:20-10444-DMG-PVCx and stayed pending
the resolution of the anticipated motion to dismiss in the Securities Action.  On February 5, 2021, the parties in the Derivative
Actions responded jointly to the order to show cause, stipulating that the case should be consolidated and stayed as suggested
by the Court.  We believe that the Derivative Actions will be consolidated and stayed by the Court.  As with the Securities
Action, the Company believes that the Derivative Actions are without merit and intends to vigorously defend against the claims
raised therein.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Commencing in October 2017 the Company began
reimbursing Mr. Elwood Norris, an officer and stockholder of the Company, $1,500 per month on a month-to-month basis for laboratory
facility costs, for an aggregate of $18,000 during the year ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From April 2020 through December 2020 the Company
engaged V3 Capital Partners, LLC (“<i>V3</i>”), a company owned and controlled by Scot Cohen, the Company’s Executive
Chairman, to provide certain investor, shareholder and marketing services, in consideration for the payment to V3 of $10,000 per
month on a month-to-month basis for an aggregate of $90,000 during the year ended December 31, 2020. In addition, the Company paid
V3 a bonus of $175,000 for assistance in a financing that was consummated in July 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Notes 8, 11 and 13 for additional information
on related party transactions and obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Until its reverse recapitalization on March
31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. The
Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences
between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that
will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance
for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets
will not be realized.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not provide any current or deferred
U.S. federal income tax provision or benefit for the periods presented because of operating losses since inception. As of December
31, 2020, the Company has federal net operating loss carryforwards of approximately $24,449,000 to reduce future taxable income
that will expire beginning in 2038. Certain changes in stock ownership can result in a limitation on the amount of net operating
loss and tax credit carryovers that can be utilized each year. As of December 31, 2020, management has not determined the extent
of any such limitations, if any.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provided a full valuation allowance
on the net deferred tax asset, consisting primarily of net operating loss carry forwards, because management has determined that
it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry
forward period. As a result of the change in future Federal statutory tax rates due to the passing of the Tax Cuts and Jobs Act
of 2017, management determined that the deferred tax assets and liabilities should be valued at a federal statutory rate of 21%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has not taken a tax position that,
if challenged, would have a material effect on the financial statements for the periods ended December 31, 2020 and 2019 applicable
under FASB ASC 740. The Company did not recognize any adjustment to the liability for uncertain tax position and therefore did
not record any adjustment to the beginning balance of accumulated deficit on the balance sheet. All tax returns for the Company
remain open.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for (benefit from) income taxes
consist of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year Ended December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Current tax benefit</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax benefit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3,158,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,800,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(3,158,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,800,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Income tax benefit (provision)</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of the provision for income
taxes at the federal statutory rate of 21% to the Company’s provision for income tax is as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year Ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Income taxes benefit computed at federal statutory rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,642,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,748,000</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">State income taxes, net of federal effect</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">216,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">114,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Permanent differences and other</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">300,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(62,000</font></td>
<td><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(3,158,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,800,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Income tax benefit (provision)</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred income taxes reflect the net tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets
and liabilities for the periods presented:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax assets:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Net operating losses</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">5,444,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,430,000</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Research tax credits</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">45,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">26,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Stock compensation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">542,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">239,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Accruals and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">169,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">9,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">6,200,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,704,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax liabilities:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Depreciation and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">396,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">58,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">396,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">58,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Net deferred tax assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,804,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,646,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Less valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(5,804,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(2,646,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Net deferred taxes after valuation allowance</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASU 2016-09, <i>Compensation-Stock
Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting</i>, the Company recognizes windfall tax benefits
associated with the exercise of stock options as a component of tax expense (rather than equity). Accordingly, our federal and
state operating loss carryforwards include net windfall tax deductions from stock option exercises and RSU vesting of approximately
$720,000 and $144,000 during the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Major Customers</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the year ended December 31, 2020, revenues
from two distributors accounted for approximately 17% and 16% of revenues with no other single customer accounting for more than
10% of total revenues. These distributors accounted for 28% and 26% of accounts receivable at December 31, 2020. For the year ended
December 31, 2019, revenues from one distributor accounted for 22% revenues with no other single customer accounting for more than
10% of total revenues. This customer accounted for 54% of accounts receivable at December 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes revenues by geographic
region. Revenues are attributed to countries based on customer’s delivery location.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Ended December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Americas</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,442,822</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">481,622</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Europe, Middle East and Africa</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,046,499</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">116,547</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Asia Pacific</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,454,736</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">98,621</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,944,057</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">696,790</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 1 – <i>Concentrations of Risks</i>
for information on reliance on suppliers.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Wrap Technologies, Inc., a Delaware corporation
(the “<i>Company</i>”, “<i>we</i>”, “<i>us</i>”, and “<i>our</i>”), is a publicly
traded company with our Common Stock, par value $0.0001 per share (“<i>Common Stock</i>”), listed on the Nasdaq Capital
Market (“<i>Nasdaq</i>”) under the trading symbol “WRAP”. The Company is a developer and supplier of public
safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap®
remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South
America, Europe, Middle East and Asia.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one wholly-owned subsidiary,
Wrap Reality, Inc. formed in December 2020 (see Note 3) and has commenced selling its virtual reality training system primarily
targeting law enforcement agencies. The consolidated financial statements include the accounts of this subsidiary after elimination
of intercompany transactions and accounts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America (“<i>U.S. GAAP</i>”).
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts,
valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets
and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses
during the reporting period. Actual results could materially differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Credit Risk</i> – Financial instruments
that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, U.S. treasury
bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial
institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash
and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash
and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate
risks. To date, the Company has not experienced any losses on its cash and cash equivalents.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Concentrations of Accounts Receivable and
Revenue</i> – The Company has a limited number of domestic and international customers. The Company may experience concentrations
in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 16).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Concentration of Suppliers</i> – The
Company relies on a limited number of component suppliers and contract suppliers. In particular, a single supplier is currently
the sole manufacturer of the Company’s laser assembly with some parts sole sourced from other suppliers. If supplier shortages
occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could
in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Impact of COVID-19</i> – <font style="background-color: white">In
December 2019, a novel strain of coronavirus <i>(“COVID-19</i>”) emerged in China.</font> In March 2020, the World
Health Organization declared the outbreak of a novel coronavirus (“<i>COVID-19</i>”) as a pandemic. <font style="background-color: white">While
initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it spread to other
countries and infections have been reported globally. The extent to which the coronavirus impacts our operations will continue
to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of
the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus
or treat its impact, among others. In particular, the continued spread of the coronavirus globally or emergence of new strains
could adversely impact our operations, including our manufacturing and supply chain. Our operations could be negatively affected
if employees are quarantined as the result of exposure to a contagious illness. Similarly, travel restrictions resulting from the
rapid spread of contagious illnesses may have a material adverse effect on our business and results of operations.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist
primarily of amounts invested in Money Market Funds and United States (“U.S.”) Treasury bills and are stated at fair
value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s short-term investments consist
of U.S. Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance
sheet date. As of December 31, 2020, all of the Company’s short-term investments were classified as available-for-sale and
are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive
income in our consolidated statements of stockholders’ equity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the fair value recognition
provisions issued by the Financial Accounting Standards Board (“<i>FASB</i>”) in Accounting Standards Codification
(“<i>ASC</i>”) Topic 718, Stock Compensation (“<i>ASC 718</i>”) and has adopted Accounting Standards Update
(“<i>ASU</i>”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized
during 2020 and 2019 includes stock option and restricted stock unit compensation expense. <font style="background-color: white">The
grant date fair value of stock options is determined using the Black-Scholes option-pricing model.</font> The grant date is the
date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based
payment award. <font style="background-color: white">The Black-Scholes option-pricing model requires inputs including the market
price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding,
the implied stock volatilities of several publicly-traded peers over the expected term of stock options, risk-free interest rate
and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine.</font> The
grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date
of the grant. We determine the amount of share-based compensation expense based on awards that we ultimately expect to vest
and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense
over the vesting term.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company carries accounts receivable at historical
cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates accounts receivable and establishes an
allowance for doubtful accounts for estimated losses. The Company’s expected loss allowance methodology for accounts receivable
is developed using historical collection experience, when available any published or estimated credit default rates for entities
that represent our customer base, current and future economic and market conditions and a review of the current status of customers'
trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers
that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment
confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined
to be uncollectible.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020 the Company had an allowance
of $10,140 resulting in part from global uncertainty resulting from the COVID-19 virus. There was no allowance for doubtful accounts
recorded at December 31, 2019. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical
experience, such estimates could change and impact our future reported financial results.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories are valued at the lower of cost
or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory
is comprised of raw materials, assemblies and finished products intended for sale to customers<i>.</i> The Company evaluates the
need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s
products.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020 and 2019 the Company had
no reserve for obsolescence.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company employs contract manufacturers for
production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to
time, but recognizes no revenue or markup on such transactions. During 2020 and 2019, the Company performed assembly of products
in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost. Depreciation
on property and equipment is computed over the estimated useful lives of three years using the straight-line method. The Company
intends, on any retirement or disposition of property and equipment, that the related cost and accumulated depreciation or amortization
will be removed and a gain or loss recorded.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Transactions in which the Company obtains control
of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets
acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company
measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the
acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with
a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition
date and until paid is re-measured on a recurring basis and classified as a liability.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets consisted of (a) capitalized
legal fees and filing costs related to obtaining patents and trademarks, (b) customer agreements, tradenames, software, non-solicitation
and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date, and (c) the purchase
cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives
have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject
to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair
value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment
loss shall be recognized.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of intangibles is periodically
reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than
its carrying value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets and identifiable intangibles
held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes
in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. The Company
did not recognize any impairment loss during the years ended December 31, 2020 and 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants as either
equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified
as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation
is made. As of December 31, 2020, the Company has no warrants or other derivative financial instruments that require separate accounting
as liabilities and periodic revaluation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising costs are charged to expense as
incurred and were $287,266 and $165,119 for the years ended December 31, 2020 and 2019, respectively. The Company also incurred
product promotion costs for demonstration products delivered to prospective customers of $747,443 and $433,172 for the years ended
December 31, 2020 and 2019, respectively. Advertising and promotion costs are included in selling, general and administrative expenses
in the accompanying statements of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains a demonstration and training
department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training
is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts
local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement
agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or
field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen
demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development costs consist primarily
of contract development costs and experimental work materials and certain startup costs. Research and development costs with no
alternative use are expensed as incurred.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the commencement date of a lease, the Company
recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease
term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not
provide an implicit rate and due to lack of borrowing history or ability, the Company uses as its incremental borrowing rate a
low-grade debt rate published by the Federal Reserve Bank. The right-of-use (“ROU”) asset is measured at cost, which
includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives.
Lease liabilities are recorded as a current liability for the portion due within one year with the balance as a long-term
liability. ROU assets are recorded as operating lease right-of-use asset, net.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued ASU 2014-09, Revenue
from Contracts with Customers (“ASU 2014-09”) and ASC Subtopic 340-40, Other Assets and Deferred Costs - Contracts
with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2018, the Company adopted Topic
606 and, as it had no prior revenue or contracts with customers, there was no transition required nor any impact on prior results.
ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification
of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction
price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. See Note 2
for additional information.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shipping and handling costs are included in
cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs
were $75,106 and $22,177 for the years ended December 31, 2020 and 2019, respectively. Actual revenues from shipping and handling
were $62,679 and $21,414 for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company warrants its products and accessories
to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally
limited. The Company currently provides direct warranty service. International market warranties are generally similar to the U.S.
market.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company establishes a warranty reserve based
on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the
number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the
adequacy of the provision for warranty costs each reporting period. The warranty reserve was $48,140 and $13,923 at December 31,
2020 and 2019. Actual warranty costs could differ from estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 280, “Segment Reporting,”
requires use of the “management approach” model for segment reporting. The management approach model is based on the
way a company’s management organizes segments within the company for making operating decisions and assessing performance.
The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No income tax expense was recorded for the periods
ended December 31, 2020 and 2019 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary
differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains a valuation allowance
with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing
the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current
period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward
period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change
in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in
income in the year of the change in estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has evaluated events subsequent to
December 31, 2020 through the date the accompanying financial statements were filed with the Securities and Exchange Commission
and noted that there have been no events or transactions which would affect the Company’s financial statements for the year
ended December 31, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">10,250</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Software</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">460,250</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Customer contracts</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Tradenames</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Noncompete agreements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">10,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred revenue</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(15,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">  Total consideration</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">507,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Description</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Useful life in years</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Fair Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 84%; text-align: justify"><font style="font-size: 8pt">Software</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: center"><font style="font-size: 8pt">5</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: right"><font style="font-size: 8pt">460,250</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Customer contracts</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">1</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">40,000</font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Tradenames</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">1</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2,000</font></td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Noncompete agreements</font></td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">2</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">10,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total acquired intangible assets</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt; text-align: right"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">512,250</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of December 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Adjusted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Unrealized</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Unrealized</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Market</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Cost</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Gains</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Losses</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Level 1:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Money Market Funds</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">6,034,757</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">6,034,757</font></td>
<td style="width: 4%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">U.S. Treasury securities considered cash equivalents</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,997,812</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,997,812</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">U.S. Treasury securities in short-term investments</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">24,979,511</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">14,849</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">24,994,360</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Total Financial Assets</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">41,012,080</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">14,849</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">41,026,929</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Finished goods</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,248,893</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">653,323</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Work in process</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">64,451</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">413</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Raw materials</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,342,046</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,590,805</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Inventories, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,655,390</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,244,541</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Production and lab equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">147,781</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">44,454</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Tooling</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,936</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">59,004</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Computer equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">180,573</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">83,368</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Furniture, fixtures and improvements</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">165,465</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">128,782</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">574,755</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">315,608</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accumulated depreciation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(217,468</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(72,732</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Property and equipment, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">357,287</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">242,876</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Amortizable intangible assets:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Patents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">279,294</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">176,425</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Trademarks</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">83,964</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">57,919</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Purchased software</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">662,250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,075,508</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">234,344</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Accumulated amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,587</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(4,061</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Total amortizable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,052,921</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">230,283</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Indefinite life assets (non-amortizable)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">343,563</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; text-align: justify"><font style="font-size: 8pt">Total intangible assets-net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,396,484</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">230,283</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Patent and legal costs</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">64,800</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,851</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accrued compensation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">562,792</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">144,193</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Warranty costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">48,140</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">13,923</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Consulting costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,083</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">7,500</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Taxes and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">43,260</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">18,827</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Accrued liabilities</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">721,075</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">194,294</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Operating lease liability- short term</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">94,011</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Operating lease liability - long term</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">56,006</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Total Operating Lease Liability</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">150,017</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">101,406</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2022</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">57,328</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt">Total future minimum lease payments</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">158,734</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Less imputed interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(8,717</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">150,017</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Average Purchase</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price Per Share</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2018</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">5,017,181</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">4.82</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,076,922</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.62</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants exercised</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(473,483</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">4.46</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">6,620,620</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,066,667</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.00</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(5,155,976</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.08</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Stock purchase warrants cancelled</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(324,401</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 8pt">5.00</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Shares purchasable under outstanding warrants at December 31, 2020</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,206,910</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"><font style="font-size: 8pt">$</font></td>
<td style="padding-bottom: 3pt; text-align: right"><font style="font-size: 8pt">6.36</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Number of</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Exercise Price</b></font></td>
<td style="vertical-align: bottom"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 8pt"><b>Description</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Common Shares</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Per Share</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Expiration
Date</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 43%; text-align: justify"><font style="font-size: 8pt">Purchase Warrants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt">1,661,397</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt">6.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 21%; text-align: center"><font style="font-size: 8pt">June 18, 2021</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Agent Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">153,846</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">8.125</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">June 18, 2021</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Purchase Warrants</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,391,667</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">6.00</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">June 1, 2022</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,206,910</font></td>
<td style="padding-bottom: 3pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Options on</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Aggregate</b></font></td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Common</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Intrinsic</b></font></td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Shares</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 46%; text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">2,067,500</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">1.68</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 8pt">4.44</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1,000,000</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(38,750</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeited, cancelled, expired</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(100,000</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2,928,750</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">2.96</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.71</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1,423,836</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.66</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(371,000</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">1.90</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeited, cancelled, expired</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(50,000</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">3.00</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Outstanding December 31, 2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,931,586</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4.41</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4.89</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,176,337</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Vested and exercisable at December 31, 2020</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,091,084</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2.68</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2.60</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,965,155</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected stock price volatility</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">47</font></td>
<td style="width: 1%"><font style="font-size: 8pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">49</font></td>
<td style="width: 2%"><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.38</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2.41</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Forfeiture rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Expected life of options - years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.64</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3.50</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-align: justify"><font style="font-size: 8pt">Weighted-average fair value of options granted</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2.90</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2.06</font></td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Range of</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercise Prices</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Outstanding</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Life (Years)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercisable</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 22%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1,422,750</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">2.39</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1,422,750</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.15 - $3.61</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">85,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2.86</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.75</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">85,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.75</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">4.26 - $6.58</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,073,836</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.89</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.29</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">583,334</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">11.22</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">350,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9.58</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">11.22</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td colspan="3"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Service-Based</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Grant Date</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt"><b>Vesting</b></font></td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>RSU's</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Fair Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Period</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 64%; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 0%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 0%"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 12%"> </td>
<td> </td>
<td> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - service based</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">308,087</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.77</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">3.00 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2019</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">308,087</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.77</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - service based</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">310,874</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.02</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">3.02 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Granted - performance based</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">35,211</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">4.26</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Vested</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(144,687</font></td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">5.17</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">  Forfeited and cancelled</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">(81,479</font></td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.47</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 8pt">Unvested at December 31, 2020</font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt double; vertical-align: bottom; text-align: right"><font style="font-size: 8pt">428,006</font></td>
<td style="vertical-align: bottom; padding-bottom: 3pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 8pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt">6.13</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 8pt">2.27 Years</font></td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Selling, general and administrative</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,956,818</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,410,095</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Research and development</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">279,925</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">126,001</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total share-based expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,236,743</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,536,096</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year Ended December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Current tax benefit</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax benefit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3,158,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,800,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(3,158,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,800,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Income tax benefit (provision)</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year Ended December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Income taxes benefit computed at federal statutory rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,642,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,748,000</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">State income taxes, net of federal effect</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">216,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">114,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Permanent differences and other</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">300,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(62,000</font></td>
<td><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(3,158,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,800,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Income tax benefit (provision)</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax assets:</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Net operating losses</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">5,444,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,430,000</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Research tax credits</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">45,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">26,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Stock compensation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">542,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">239,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Accruals and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">169,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">9,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">6,200,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,704,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Deferred tax liabilities:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.5in; text-align: justify"><font style="font-size: 8pt">Depreciation and other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">396,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">58,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">396,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">58,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Net deferred tax assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,804,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,646,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Less valuation allowance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(5,804,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(2,646,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Net deferred taxes after valuation allowance</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 8pt"><b>For the Year</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Ended December 31,</b></font></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 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Americas</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,442,822</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">481,622</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Europe, Middle East and Africa</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,046,499</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">116,547</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Asia Pacific</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,454,736</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">98,621</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,944,057</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">696,790</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
507500
10250
460250
40000
2000
10000
-15000
P5Y
P1Y
P1Y
P2Y
512250
460250
40000
2000
10000
41012080
6034757
9997812
24979511
14849
0
0
14849
0
0
0
0
41026929
6034757
9997812
24994360
1052921
230283
343563
0
186266
150766
145766
145766
145766
278591
1052921
101406
57328
158734
8717
-324401
0
5.00
.00
3206910
153846
1661397
1391667
8.125
6.50
6.00
2021-06-18
2021-06-18
2022-06-01
2.68
1.50
3.75
5.41
.00
P2Y7M6D
5176337
4965155
1422750
85000
583334
0
428006
308087
0
310874
308087
144687
0
81479
0
35211
0
6.13
6.77
.00
6.02
6.77
4.26
.00
5.17
.00
6.47
.00
P2Y3M7D
P3Y
2200000
P2Y3M18D
2200000
720000
144000
37644556
196229092
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Adopted First Quarter of 2020:</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-13,
Fair Value Measurement (“<i>Topic 820</i>”): Disclosure Framework Changes to the Disclosure Requirements for Fair Value
Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, to improve the effectiveness of
fair value measurement disclosures by removing or modifying certain disclosure requirements and adding other requirements. This
ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after
December 15, 2019. The adoption of this standard in the first quarter ended March 31, 2020 had no impact on the Company’s
financial statements or disclosures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13, Financial
Instruments - Credit Losses <i>(“Topic 326”):</i> Measurement of Credit Losses on Financial Instruments which
was further updated and clarified by the FASB through issuance of additional related ASUs<i>.</i> Under ASU 2016-13, existing
guidance on reporting credit losses for trade and other receivables and available for sale debt securities have been replaced with
a new forward-looking “expected loss” model that has resulted in the earlier recognition of allowances for losses.
The adoption of these standards in the first quarter ended March 31, 2020 had no impact on the Company’s financial statements
or disclosures. As part of our assessment of the adequacy of our allowances for credit losses, we consider a number of factors
including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of
receivables, expected loss rates and collateral exposures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Other Guidance:</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued
Accounting Standards Update 2019-12, Income Taxes (“<i>Topic 740</i>”): Simplifying the Accounting for
Income Taxes (“<i>ASU 2019-12</i>”), which is intended to simplify various aspects related to accounting
for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies
and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December
15, 2020, with early adoption permitted. We do not expect that the adoption of this ASU will have a significant impact on
our financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06, <i>Debt—Debt
with Conversion and Other Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s
Own Equity “(Subtopic 815-40”): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity</i>,
which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The
ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception
and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years,
and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is
currently evaluating the impact of this standard on its financial statements and related disclosures.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has reviewed other recently issued,
but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected
to cause a material impact on its financial condition or the results of operations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per common share is computed by dividing
net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net loss
per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s
losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock
options, restricted stock units and warrants exercisable or issuable for a total of 7,566,502 and 9,857,457 shares of Common Stock
were outstanding at December 31, 2020 and 2019, respectively. These securities are not included in the computation of diluted net
loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p>
2066667
11667206
207
11666999
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">186,266</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">150,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">145,766</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">278,591</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Total estimated amortization expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,052,921</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>