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<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Related Party payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: left; padding-bottom: 1pt">Gold Street Capital Corp.</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">(2,551</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">(39,237</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Related Party Receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Luca Pasquini</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,123</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
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1549917
476047
520725
32405
8038
312824
258448
57598
62795
72526
88262
45372
58504
374169
231312
630161
569700
73875
4953
1405134
5052645
12527980
15857027
9929495
10037980
75583
260318
262552
1663385
15102118
20560632
12761177
12289853
6615905
1562295
1183550
1249970
22653481
27825182
750000
1000000
1056430
298476
7417173
16417841
5395212
4393736
615564
281553
10450390
7204930
225131
96786
12714078
19023897
944
1194
-57431
-176717
-13967030
-23241835
22653481
27825182
0.0001
0.0001
160000000
80000000
9442537
11949042
9442537
11949042
1021052
1242005
1049423
1735650
3361337
4463046
608728
619544
211734
168706
407810
440021
23962920
32218643
3969532
6800765
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>7.</b></td><td style="text-align: justify"><b>Intangible Assets</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Intangible assets consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Cost</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Accumulated depreciation</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 36%; font-size: 10pt; text-align: left">Betting platform software</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">5,689,965</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">(637,320</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">5,052,645</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">1,405,134</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Licenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,694,227</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(764,732</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">9,929,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,037,980</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Location contracts</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,000,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(768,688</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">231,312</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">374,169</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Customer relationships</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">870,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(301,227</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">569,700</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">630,161</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Trademarks</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">116,175</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(42,300</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">73,875</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">75,583</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-bottom: 1pt">Websites</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">40,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(40,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,953</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">18,411,294</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,554,267</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">15,857,027</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">12,527,980</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company evaluates intangible assets
for impairment on an annual basis during the last month of each year and at an interim date if indications of impairment exist.
Intangible asset impairment is determined by comparing the fair value of the asset to its carrying amount with an impairment being
recognized only when the fair value is less than carrying value and the impairment is deemed to be permanent in nature.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company recorded $771,665 and
$468,551 in amortization expense for finite-lived assets for the years ended December 31, 2019 and 2018, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Licenses obtained by the Company in
the acquisitions of Multigioco and Rifa include a Gioco a Distanza (“GAD”) online license as well as a Bersani and
Monti land-based licenses issued by the Italian gaming regulator to Multigioco and Rifa, respectively, as well as an Austrian Bookmaker
License through the acquisition of Ulisse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company believes that the carrying
amounts of its intangible assets are recoverable. However, if adverse events were to occur or circumstances were to change indicating
that the carrying amount of such assets may not be fully recoverable, the assets would be reviewed for impairment and the assets
may be impaired.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>3.</b></td><td style="text-align: justify"><b>Acquisition of subsidiaries</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Ulisse GmbH (“Ulisse”)
Acquisition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On June 30, 2016, the Company entered
into a Share Exchange Agreement (“Ulisse SPA”), which closed on July 1, 2016, with the shareholders of Ulisse organized
under the laws of Austria. Ulisse operates a network of approximately 170 land-based agency locations. Pursuant to the agreement,
the Company issued 416,400 shares of common stock in consideration for 100% of the issued and outstanding shares of Ulisse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the Ulisse SPA, the purchase
price was subject to an adjustment equal to two times earnings before income taxes calculated on a pro rata basis from the closing
date upon completion of the license tender auction held by the Italian gaming regulator, Agenzia delle Dogane e dei Monopoli (“ADM”).
The sellers were also permitted to exercise the option to resell to the Company 50% of the shares of common stock (or 208,200 shares)
issued in consideration for the purchase price at a fixed price of $4.00 per share (the “Ulisse Put Option”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On May 31, 2018, the Company and Ulisse
mutually agreed to exercise the Ulisse Put Option in lieu of completion of the ADM license tender auction. The Company repurchased
and retired the shares issued in June 2016 with a purchase price adjustment to 10 million Euros (approximately $11.7 million).
The purchase price adjustment was paid half in cash of €5 million (approximately $5.85 million) and the Company issued 591,950
shares of common stock to the sellers on May 31, 2018 to settle the balance of the purchase price adjustment at a closing price
of $9.44 per share on May 31, 2018</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Multigioco Acquisition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On May 31, 2018, the Company and Multigioco
mutually agreed to exercise the option to repurchase the shares issued to the shareholders of Multigioco at the closing of the
acquisition of Multigioco on August 15, 2014 (“Multigioco Put Option”). The Company repurchased and retired the balance
of 255,000 shares issued to the Multigioco sellers in exchange for €510,000 (approximately $595,000).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Virtual Generation Limited (“VG”)
Acquisition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On January 30, 2019, the Company entered
into a Share Exchange Agreement (“VG SPA”), with the shareholders of Virtual Generation (“VG”) organized
under the laws of Republic of Malta (the “Sellers”) and acquired all of the issued and outstanding ordinary shares
of VG., together with all the ordinary shares of Naos Holding Limited, a company organized under the laws of Republic of Malta
(“Naos”) that owned 3,999 of the 4,000 issued and outstanding ordinary shares of VG. VG owns and has developed a virtual
gaming software platform.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the Purchase Agreement,
on the Closing Date, the Company agreed to pay the Sellers the previously agreed to consideration of €4,000,000 ($4,576,352)
in consideration for all the ordinary shares of VG and Naos, on the Closing Date as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; padding-right: 0.8pt"> </td>
<td style="width: 3%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(i)</font></td>
<td style="width: 92%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a cash payment of €108,000;</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(ii)</font></td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">the issuance of shares of the Company’s common stock valued at €89,000; and</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(iii)</font></td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: justify">the delivery of a non-interest bearing
promissory note of €3,803,000, providing for the payment of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: justify">(a) an aggregate of €2,392,000
in cash in 23 equal and consecutive monthly instalments of €104,000 with the first such payment due and payable on the date
that was one month after the Closing Date; and</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: justify">(b) an aggregate of €1,411,000
in shares of the Company’s common stock in 17 equal and consecutive monthly instalments of €83,000 as determined by
the average of the closing prices of such shares on the last 10 trading days immediately preceding the determination date of each
monthly issuance, which issuances commenced on March 1, 2019.</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The €3,803,000 promissory note was originally recorded
as a liability owing to related parties of €1,521,200 (Note 15) and to third parties of €2,281,800 (Note 12).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the terms of the Purchase
Agreement that the Company entered into with VG, the Company agreed to pay the sellers of VG an earnout payment in shares of our
common stock equal to an aggregate amount of €500,000 (approximately $561,500), if the amounts of bets made by users of the
VG platform grew by more than 5% for the year ended December 31, 2019 compared to the year ended December 31, 2018, based on the
18,449,380 tickets sold in 2019 the VG Sellers have qualified for the earnout payment. The earnout payment was considered remote
at the time of entering into the transaction and was not recorded as a component of deferred purchase consideration, accordingly
it has been expensed through the statement of operations for the year ended December 31, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Virtual Generation Limited (“VG”)
Acquisition (continued)</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In terms of the agreement, the purchase
price was allocated to the fair market value of tangible and intangible assets acquired and liabilities assumed, as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; width: 70%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase consideration, net of discount of $382,778</font></td>
<td style="width: 10%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; width: 18%; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,193,375</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Fair value of assets acquired</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Cash</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">47,268</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">178,181</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Property, Plant and Equipment</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">41,473</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Betting Platform</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,004,594</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,271,516</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Less: liabilities assumed</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(78,141</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Less: Imputed Deferred taxation on identifiable intangible acquired (Betting platform)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,401,608</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total identifiable assets less liabilities assumed</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,791,767</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Goodwill arising on acquisition</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,401,608</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total purchase consideration</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,193,375</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">   </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Betting Platform value was determined
by management, based on prior experience, and is being amortized over a period of 15 years, the expected useful life.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>4.</b></td><td style="text-align: justify"><b>Restricted Cash</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Restricted cash consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 27pt"></td><td style="width: 18pt"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">cash held in a segregated bank account at Intesa Sanpaolo Bank S.p.A.
(“Intesa Sanpaolo Bank”) as collateral against a bank loan <font>with Intesa Sanpaolo
Bank</font> for Multigioco as well as Wirecard Bank as a security deposit for Ulisse betting operations. </font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 27pt"></td><td style="width: 18pt"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">The Company maintains a $1,000,000 deposit at Metropolitan Commercial
bank held as security against a $1,000,000 line of credit. See Note 10.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>14.</b></td><td style="text-align: justify"><b>Other Long-term Liabilities</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Other long-term liabilities represent
the Italian “Trattamento di Fine Rapporto” which is a severance amount set up by Italian companies to be paid to employees
on termination or retirement as well as shop deposits that are held by Ulisse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Balances of other long-term liabilities
were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 10pt; text-align: left">Severance liability</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">211,734</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">168,706</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Customer deposit balance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">407,810</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">440,021</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">619,544</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">608,727</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 27pt"><b>10.</b></td><td style="text-align: justify"><b>Line of Credit - Bank</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company maintains a $1,000,000
secured revolving line of credit from Metropolitan Commercial Bank in New York, which bears a fixed rate of interest of 3.00% on
the outstanding balance with an interest only monthly minimum payment, no maturity or due date and is secured by a $1,000,000 security
deposit, see Note 4.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>13.</b></td><td style="text-align: justify"><b>Bank Loan Payable</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In September 2016, the Company obtained
a loan of €500,000 (approximately $545,000) from Intesa Sanpaolo Bank in Italy, which loan is secured by the Company's assets.
The loan has an underlying interest rate of 4.5% above the Euro Inter Bank Offered Rate, subject to quarterly review and is amortized
over 57 months ending March 31, 2021. Monthly repayments of €9,760 began in January 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company made payments of €117,120
(approximately $131,163) for the year ended December 31, 2019 which included principal of €110,518 (approximately $123,769)
and interest of €6,602 approximately $7,394) for the year ended December 31, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>17.</b></td><td style="text-align: justify"><b>Warrants</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In connection with the convertible
debenture agreements entered into with accredited investors in the first and second quarters of 2018, for each $1,000 debenture
unit the Company issued two-year warrants to purchase up to 135.28 shares of the Company’s common stock and for each CDN
$1,000 debenture unit the Company issued two-year warrants to purchase up to 104.06 shares of the Company’s common stock
at an exercise price of $4.00 per share.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The warrants were valued at fair value
of $2,929,712 in terms of ASC 820 at the date of issuance, using a Black Sholes valuation model.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">A summary of all of the Company’s
warrant activity during the period January 1, 2018 to December 31, 2019 is as follows:</p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Year ended December 31, 2018</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><font style="font-size: 10pt">Exercise price/shares at issuance</font></td>
<td style="width: 9%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4.00 – 4.60</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Common stock share price</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2.08</font></td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Risk free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.91</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Expected life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.37 years</font></td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected volatility of underlying stock</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">459</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Expected dividend rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Number of shares</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Exercise price per share</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="width: 25%; font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding January 1, 2018</b></font></td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 18%; font-size: 10pt; text-align: right">76,566</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 21%; font-size: 10pt; text-align: right">4.32</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 19%; font-size: 10pt; text-align: right">4.32</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,096,224</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(27,000</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5.04</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5.04</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(40,761</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.64</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.64</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Expired</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,555</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.64</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.64</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding December 31, 2018</b></font></td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding December 31, 2019</b></font></td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,089,474</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.00</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.00</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following tables summarize information
about warrants outstanding as of December 31, 2019:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="padding-right: 2.8pt; text-align: center"> </td>
<td style="padding-right: 0.8pt; text-align: center"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; padding-right: 0.15in; text-align: center"><font style="font-size: 10pt"><b>Warrants outstanding</b></font></td>
<td style="padding-right: 0.8pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; padding-right: 6.8pt; text-align: center"><font style="font-size: 10pt"><b>Warrants exercisable</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 9%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 19%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Number of shares</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 17%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average remaining years</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 13%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 12%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Number of shares</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 13%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1,089,474</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">0.41</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1,089,474</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td></tr>
</table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%; font-weight: bold">1.</td><td style="text-align: justify; width: 95%"><b>Nature of Business</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Established in the state of Delaware in 1998,
Newgioco Group, Inc. (“Newgioco Group” or the “Company”) is an international, vertically integrated commercial-stage
company engaged in various aspects of the leisure gaming industry. The Company is a licensed gaming operator in the regulated
Italian leisure betting market offering gaming services, including a variety of lottery, casino gaming and sports betting products
through two distribution channels: an online channel and a land-based retail channel. Additionally, the Company is a global gaming
technology company (known as a “Provider”), which owns and operates a betting software designed with a unique “distributed
model” (“shop-client”) software architecture colloquially named Elys Game Board (the “Platform”).
The Platform is a fully integrated “omni-channel” framework that combines centralized technology for updating, servicing
and operations with multi-channel functionality to accept all forms of customer payment through the two distribution channels
described above. The omni-channel software design is fully integrated with a built-in player gaming account management system
and sports book.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company and its subsidiaries are as follows:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 48%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Name</td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 16%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Acquisition date</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 10%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Domicile</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 19%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Functional Currency</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Group, Inc.</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Parent Company</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">USA</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">US Dollar</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Multigioco Srl (“Multigioco”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">August 15, 2014</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Italy</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Rifa Srl (“Rifa”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 1, 2015</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Italy</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Ulisse GmbH (“Ulisse”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">July 1, 2016</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Austria</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Odissea Betriebsinformatik Beratung GmbH (“Odissea”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">July 1, 2016</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Austria</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Virtual Generation Limited (“VG”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 31, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Naos Holdings limited (“Naos”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 31, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Group Inc. (“NG Canada”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 17, 2017</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Canadian Dollar</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Elys Technology Group Limited (“Elys”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">April 4, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Colombia SAS</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">November 22, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Colombia</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Colombian Peso</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates in two lines of business:
(i) provider of certified betting Platform software services to leisure betting establishments in Italy and 11 other countries
and; (ii) the operating of web based as well as land based leisure betting establishments situated throughout Italy. The Company’s
operations are carried out through the following three geographically organized groups:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0">
<tr style="vertical-align: top">
<td style="width: 5%; padding-right: 0.8pt; text-align: justify"> </td>
<td style="width: 3%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a)</font></td>
<td style="width: 92%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an operational group is based in Europe and maintains administrative offices headquartered in Rome, Italy with satellite offices for operations administration in Naples and Teramo, Italy and San Gwann, Malta;</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">b)</font></td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a technology group which is based in Innsbruck, Austria and manages software development, training and administration; and</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">c)</font></td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a corporate group which is based in North America and operates out of our principal executive offices in Toronto, Canada and satellite offices in the USA in Fort Lauderdale and Boca Raton, Florida, through which we carry-out corporate activities, handle day-to-day reporting and U.S. development planning, and through which various independent contractors and vendors are engaged.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Notes to the Consolidated Financial Statements</b></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>16.</b></td><td style="text-align: justify"><b>Stockholders’ Equity</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company issued the following shares
of common stock to promissory note holders in terms of the agreement entered into for the acquisition of Virtual Generation, as
disclosed in Note 3 above.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On January 31, 2019, 32,450 shares of common stock valued at $101,763;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On March 1, 2019, 32,848 shares of common stock valued at $101,249;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On April 1, 2019, 29,975 shares of common stock valued at $86,328;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On May 1, 2019, 33,105 shares of common stock valued at $93,018;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On June 1, 2019, 37,256 shares of common stock valued at $92,961;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On July 1, 2019, 35,751 shares of common stock valued at $93,875;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On August 1, 2019, 35,048 shares of common stock valued at $91,810;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On September 1, 2019, 33,353 shares of common stock valued at $91,255;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On October 1, 2019, 26,285 shares of common stock valued at $90,526</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On November 1, 2019, 28,565 shares of common stock valued at $92,608</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On December 8, 2019, 26,610 shares of common stock valued at $91,922</font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For the year ended December 31, 2019,
the Company issued a total of 1,866,528 shares of common stock, valued at $5,972,507, upon the conversion of convertible debentures
into equity (Note 11).</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On April 22, 2019, the Company issued
14,083 shares of common stock, valued at $45,066, to certain convertible debenture holders as an incentive for them to transfer
their convertible debentures to another investor.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Between September 4, 2019 and September
17, 2019, the Company issued 284,721 shares of common stock, valued at $728,884 in settlement of promissory notes amounting to
$457,461 and other liabilities amounting to $553,525.</p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%; font-weight: bold">2.</td><td style="text-align: justify; width: 95%"><b>Accounting Policies and Estimates</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>a)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Basis of Presentation</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The accompanying consolidated financial
statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">All amounts referred to in the notes
to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>b)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Principles of consolidation</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The consolidated financial statements
include the financial statements of the Company and its subsidiaries, all of which are wholly-owned. All significant inter-company
transactions are eliminated upon consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Certain items in the prior periods
were reclassified to conform to the current period presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">All amounts referred to in the Notes
to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>c)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Foreign operations</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company translated the assets and liabilities of its
foreign subsidiaries into US Dollars at the exchange rate in effect at year end and the results of operations and cash flows at
the average rate throughout the year. The translation adjustments are recorded directly as a separate component of stockholders’
equity, while transaction gains (losses) are included in net income (loss).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt">All revenues were generated in Euro during the years presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gains and losses from foreign currency
transactions are recognized in current operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>d)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Business Combinations</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company allocates the fair value
of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair
values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities
is recorded as goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Such valuations require management
to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade
names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon
assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may
differ from estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>e)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Use of Estimates</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The preparation of consolidated financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts
of revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions
include valuing equity securities issued in share-based payment arrangements, determining the fair value of assets acquired, allocation
of purchase price, impairment of long-lived assets, the collectability of receivables, leasing arrangements, convertible debentures,
contingencies and the value of deferred taxes and related valuation allowances. Certain estimates, including evaluating the collectability
of receivables and advances, could be affected by external conditions, including those unique to the Company’s industry and
general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that
could cause actual results to differ from the Company’s estimates. The Company re-evaluates all of its accounting estimates
at least quarterly based on these conditions and records adjustments when necessary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>f)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Loss Contingencies</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company may be subject to claims,
suits, government investigations, and other proceedings involving competition and antitrust, intellectual property, privacy, indirect
taxes, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or
publishers using the Company’s website platforms, and other matters. Certain of these matters include speculative claims
for substantial or indeterminate amounts of damages. The Company records a liability when it believes that it is both probable
that a loss has been incurred, and the amount can be reasonably estimated. If the Company determines that a loss is possible, and
a range of the loss can be reasonably estimated, it discloses the range of the possible loss in the Notes to the Consolidated Financial
Statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company evaluates, on a regular
basis, developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters
and related ranges of possible losses disclosed and makes adjustments and changes to our disclosures as appropriate. Significant
judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. Until
the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could
be material. Should any of the Company’s estimates and assumptions change or prove to have been incorrect, it could have
a material impact on its business, consolidated financial position, results of operations, or cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">To date, none of these types of litigation
matters, most of which are typically covered by insurance, has had a material impact on the Company’s operations or financial
condition. The Company has insured and continues to insure against most of these types of claims.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>g)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Fair Value Measurements</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC Topic 820, Fair Value Measurement
and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and
unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 1: Observable inputs such as
quoted prices (unadjusted) in active markets for identical assets or liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 2: Inputs other than quoted
prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active
markets and quoted prices for identical or similar assets or liabilities in markets that are not active.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 3: Unobservable inputs in which
little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that
a market participant would use.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The carrying value of the Company's
accounts receivables, gaming accounts receivable, lines of credit - bank, accounts payable, gaming accounts payable and bank loans
payable approximate fair value because of the short-term maturity of these financial instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>h)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Derivative Financial Instruments</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC 815 generally provides three criteria
that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing
derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks
of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host
contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured
at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings
as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative
instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is
deemed to be conventional, as described.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The conversion feature of our convertible
debt was assessed in terms of ASC480 and the Company determined that the beneficial conversion feature was classified as equity
and did not give rise to a derivative liability.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>i)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Cash and Cash Equivalents</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company considers all highly liquid
debt instruments with maturities of three months or less at the time acquired to be cash equivalents. The Company had no cash equivalents
as of December 31, 2019 and 2018, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company primarily places cash
balances in the USA with high-credit quality financial institutions located in the United States which are insured by the Federal
Deposit Insurance Corporation up to a limit of $250,000 per institution, in Canada which are insured by the Canadian Deposit Insurance
Corporation up to a limit of CDN$100,000 per institution, in Italy which is insured by the Italian deposit guarantee fund Fondo
Interbancario di Tutela dei Depositi (FITD) up to a limit of €100,000 per institution, and in Germany which is a member of
the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes deutscher Banken) up
to a limit of €100,000 per institution.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>j)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Gaming Accounts Receivable</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gaming accounts receivable represent
gaming deposits made by customers to their online gaming accounts either directly by credit card, bank wire, e-wallet or other
accepted method through one of our websites or indirectly by cash collected at the cashier of a betting shop but not yet credited
to the Company’s bank accounts and subject to normal trade collection terms without discounts. The Company periodically evaluates
the collectability of its gaming accounts receivable and considers the need to record or adjust an allowance for doubtful accounts
based upon historical collection experience and specific customer information. Actual amounts could vary from the recorded estimates.
The Company does not require collateral to support customer receivables. The Company recorded a bad debt expense of $163,942 and
$0 for the years ended December 31, 2019 and 2018, respectively. All balances previously recorded as allowance for doubtful accounts
were written off as uncollectible.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>k)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Gaming Accounts Payable</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gaming accounts payable represent
customer balances, including winnings and deposits, that are held as credits in online gaming accounts and have not as of yet been
used or withdrawn by the customers. Customers can request payment of winnings from the Company at any time and the payment to customers
can be made through bank wire, credit card, or cash disbursement from one of our locations. Online gaming account credit balances
are non-interest bearing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>l)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Long-Lived Assets</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company evaluates the carrying
value of its long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net
book value of the assets when events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable.
If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value
over the estimated fair value will be charged to earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Fair value is based upon discounted
cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, appraisals, and, if
appropriate, current estimated net sales proceeds from pending offers.’’</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>m)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Property, Plant and Equipment</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Plant and equipment is stated at acquisition
cost less accumulated depreciation and adjustments for impairment losses. Expenditures are capitalized only when they increase
the future economic benefits embodied in an item of plant and equipment. All other expenditures are recognized as expenses in the
statement of operations as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Depreciation is charged on a straight-line
basis over the estimated remaining useful lives of the individual assets. Amortization commences from the time an asset is put
into operation. The range of the estimated useful lives is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Life of the underlying lease</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer and office equipment</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Furniture and fittings</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">7 to 10</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to 5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Vehicles</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4 to 5</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>n)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Intangible Assets</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Intangible assets are stated at acquisition
cost less accumulated amortization, if applicable, less any adjustments for impairment losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Amortization is charged on a straight-line
basis over the estimated remaining useful lives of the individual intangibles. Where intangibles are deemed to be impaired the
Company recognizes an impairment loss measured as the difference between the estimated fair value of the intangible and its book
value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The range of the estimated useful
lives is as follows:</p>
<p style="font: 10pt 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%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Betting Platform Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">15</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Ulisse Bookmaker License</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Indefinite</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Multigioco and Rifa ADM Licenses</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1.5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Location contracts</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Customer relationships</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">10 - 15</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Trademarks/Tradenames</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">14</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Websites</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Ulisse Bookmaker has no expiration
date and is therefore not amortized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>o)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Goodwill</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company allocates the fair value
of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair
values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities
is recorded as goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Such valuations require management
to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade
names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon
assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may
differ from estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company annually assesses whether
the carrying value of its goodwill exceeds its fair value and, if necessary, records an impairment loss equal to any such excess.
Each interim reporting period, the Company assesses whether events or circumstances have occurred which indicate that the carrying
amount of goodwill exceeds its fair value. If the carrying amount of the goodwill exceeds its fair value, an asset impairment charge
will be recognized in an amount equal to that excess.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">In terms of ASC 350, the Company skipped
the requirement to perform a qualitative assessment and performed a quantitative assessment on its goodwill and other intangible
assets as of December 31, 2019, concluding that no impairment was considered necessary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>p)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Income Taxes</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company uses the asset and liability
method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax
expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences
of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided
to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely
than not some portion or all of the deferred tax assets will not be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC Topic 740-10-30 clarifies the
accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold
and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods
presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">In Italy, tax years beginning 2015
forward, are open and subject to examination, while in Austria companies are open and subject to inspection for five years and
ten years for inspection of serious infractions. In the United States and Canada, tax years beginning 2015 forward, are subject
to examination. The Company is not currently under examination and it has not been notified of a pending examination.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>q)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Revenue Recognition</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company recognizes revenue when
control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects
to receive from its customers in exchange for those products and services. Revenues from sports-betting, casino, cash and skill
games, slots, bingo and horse race wagers represent the gross pay-ins (also referred to as turnover) from customers less gaming
taxes and payouts to customers. Revenues are recorded when the game is closed which is representative of the point in time at which
the Company has satisfied its performance obligation. In addition, the Company receives commissions from the sale of scratch tickets
and other lottery games. Commissions are recorded when the ticket for scratch off tickets and lottery tickets are sold.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Revenues from the Betting Platform
include software licensing fees, training, installation, and product support services. The Company does not sell its proprietary
software. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation
has been fulfilled. License fees are calculated as a percentage of each licensee’s level of activity and are contingent upon
the licensee’s usage. The license fees are recognized on an accrual basis as earned.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>r)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Stock-Based Compensation</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company records its compensation
expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using
the Black-Scholes option pricing model. Stock-based compensation includes amortization related to stock option awards based on
the estimated grant date fair value. Stock-based compensation expense related to stock options is recognized ratably over the vesting
period of the option. In addition, the Company records expense related to Restricted Stock Units (“RSU’s”) granted
based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the
vesting term of those awards. Forfeitures of stock options and RSUs are recognized as they occur.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Stock-based compensation expense for
a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined
to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense
is recognized and any previously recognized compensation expense is reversed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>s)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Comprehensive Income (Loss)</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Comprehensive income (loss) is defined
as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner
sources, including foreign currency translation adjustments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>t)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Earnings Per Share</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 260, “Earnings Per Share” provides for calculation
of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed
by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period.
Diluted earnings per share reflects the dilutive impact on the number of shares outstanding should they be exercised. Securities
that have the potential to dilute shareholder's interests include unexercised stock options and warrants as well as unconverted
debentures.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">On December 12, 2019, the Company
effected an 1 for 8 reverse stock split, all references made to share or per share amounts in the accompanying consolidated financial
statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>u)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Related Parties</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Parties are considered to be related
to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under
common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate
families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls
or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions
are recorded at fair value of the goods or services exchanged.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>v)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Adoption of Accounting Standards</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"><b><i>In February 2016, the Financial
Accounting Standards Board (“FSAB”) issued Accounting Standards Update (“ASU”), No. 2016-02, Leases (Topic
842) (ASC 842)</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The amendments in this update establishes
a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach
to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet
as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. The new standard
is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. A modified
retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative
period presented in the financial statements, including a number of optional practical expedients that entities may elect to apply.
In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, an update which provides another transition
method, the prospective transition method, which allows entities to initially apply the new lease standard at the adoption date
and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company
adopted the new standard on January 1, 2019 using the prospective transition method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The Company has identified all material
leases and reviewed the leases to determine the impact of ASC 842 on its consolidated financial statements. The Company has elected
to apply all of the practical expedients to all leases, which include not reassessing (1) whether any expired or existing contracts
are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing
leases. The adoption of the new standard resulted in; (i) the recording of a right-of-use asset of $646,138 and an operating lease
liability of $617,352 on the consolidated balance sheet with effect from January 1, 2019 utilizing implicit borrowing rates where
available and incremental borrowing rates where rates were not readily available. The right of use asset and operating lease liability
are subsequently amortized. No cumulative effect adjustment to opening retained earnings was made as the amounts are immaterial.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>w)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Recent Accounting Pronouncements</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">In June 2016, the FASB issued
ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): “Measurement of Credit Losses on Financial
Instruments,” which replaces the incurred loss methodology with an expected credit loss methodology that is referred to
as the current expected credit loss (CECL) methodology. ASU 2016-13 is effective for fiscal years beginning after December
15, 2019, with early adoption permitted. The amendments in this update are required to be applied using the modified
retrospective method with an adjustment to accumulated deficit and are effective for the Company beginning with fiscal year
2020, including interim periods. The measurement of expected credit losses under the CECL methodology is applicable to
financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. An entity with
trade receivables will be required to use historical loss information, current conditions, and reasonable and supportable
forecasts to determine expected lifetime credit losses. Pooling of assets with similar risk characteristics is also
required.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The Company adopted ASU 2016-13
on January 1, 2020 on a modified retrospective basis, and is currently evaluating the impact of adoption of the
amendments in these updates, which are not expected to have a material impact on the Company’s financial position,
results of operations, and related disclosures.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"><i>In December 2019, the FASB issued
ASU 2019-12, Income Taxes (Topic 740), </i>the Amendments in this update reduce the complexity in accounting for income taxes by
removing certain exceptions to accounting for income taxes and deferred taxes and simplifying the accounting treatment of franchise
taxes, a step up in the tax basis of goodwill as part of business combinations, the allocation of current and deferred tax to a
legal entity not subject to tax in its own financial statements, reflecting changes in tax laws or rates in the annual effective
rate in interim periods that include the enactment date and minor codification improvements.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">This ASU is effective for fiscal
years and interim periods beginning after December 15, 2020.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The effects of this ASU on the Company’s
financial statements is not considered to be material.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The FASB issued several updates during
the period, none of these standards are either applicable to the Company or require adoption at a future date and none are expected
to have a material impact on the consolidated financial statements upon adoption.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>x)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Reporting by segment</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company has two operating segments
from which it derives revenue. These segments are:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt">(i)</font></td><td style="text-align: justify"><font style="font-size: 10pt">provider of certified betting Platform software services to leisure
betting establishments in Italy and 11 other countries and;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt">(ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">the operating of web based as well as land based leisure betting
establishments situated throughout Italy.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>y)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Comparatives</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">Certain items in the prior year were
reclassified to conform to the current period presentation. These reclassifications had no impact on net loss or comprehensive
loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>15.</b></td><td style="text-align: justify"><b>Related Parties</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Notes Payable, Related Party</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company had three promissory notes
entered into in 2015 and 2016 with a related party with an aggregate principal amount outstanding of $318,078. The promissory notes
bore interest at 12% to 24% per annum and were due on demand.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On September 4, 2019, in terms of
an agreement entered into with the note holder, the promissory notes amounting to $318,078 together with interest thereon of $139,383,
totaling $457,461 were exchanged for 142,956 shares of common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The movement on notes payable, Related
Party, consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: left">Opening balance</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">318,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">318,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Settled by issuance of common shares</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(318,078</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">318,078</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Accrued Interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Opening balance</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">113,553</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">75,384</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Interest expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">25,830</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">38,169</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Conversion to equity</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(139,383</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">113,553</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Convertible Debentures, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$ </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$ </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">431,631</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Deferred Purchase consideration,
Related Party</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In terms of the acquisition of Virtual
Generation on January 31, 2019, disclosed in Note 3 above, the Company issued non-interest bearing promissory notes in the principal
amount of €3,803,000 owing to both related parties and non-related parties. The value of the promissory notes payable to non-related
parties was €2,281,800 and to related parties was €1,521,200.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The related party promissory notes
are due to Luca Pasquini, a director and officer of the Company and Gabriele Peroni, an officer of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The promissory notes are to be settled
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 2%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(a)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 96%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an aggregate of €956,800 in cash in 23 equal and consecutive monthly instalments of €41,600 with the first such payment due and payable on the date that is one month after the Closing Date; and</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(b)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an aggregate of €564,400 in shares of the Company’s common stock in 17 equal and consecutive monthly instalments of €33,200 as determined by the average of the closing prices of such shares on the last 10 trading days immediately preceding the determination date of each monthly issuance, commencing on March 1, 2019.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the terms of the Purchase
Agreement that the Company entered into with VG, the Company agreed to pay the sellers of VG an earnout payment in shares of our
common stock equal to an aggregate amount of €500,000 (approximately $561,500), if the amounts of bets made by users of the
VG platform grew by more than 5% for the year ended December 31, 2019 compared to the year ended December 31, 2018, based on the
18,449,380 tickets sold in 2019 the VG Sellers have qualified for the earnout payment. The earnout payment was considered remote
at the time of entering into the transaction and was not recorded as a component of deferred purchase consideration, accordingly
it has been expensed through the statement of operations for the year ended December 31, 2019. The amount due to the related party
VG sellers amounts to €200,000 (approximately $224,540).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The future payments on the promissory
notes were discounted to present value using the Company’s average cost of funding of 10%. The discount is being amortized
over the repayment period of the promissory note using the effective interest rate method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The movement on deferred purchase
consideration consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; font-size: 10pt; text-align: left">Promissory notes due to related parties</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">1,830,541</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Additional earnout earned</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">224,540</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Settled by the issuance of common shares</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(410,925</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Repayment in cash</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(328,734</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(35,992</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,279,430</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Present value discount on future payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Present value discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(161,393</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Amortization</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">78,128</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,195</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(80,069</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,199,361</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold">Disclosed as follows:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Current liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,157,407</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Long term liability</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,954</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,199,361</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Related party (payables) receivables</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">Related party payables and receivables
represent non-interest-bearing (payables) receivables that are due on demand.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">The balances outstanding are as
follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Related Party payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: left; padding-bottom: 1pt">Gold Street Capital Corp.</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">(2,551</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">(39,237</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Related Party Receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Luca Pasquini</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,123</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Amounts due to Gold Street Capital
Corp., the major stockholder of Newgioco Group, are for reimbursement of expenses. The Company paid no management fees and $72,000
in management fees to Gold Street Capital Corp. during the years ended December 31, 2019 and 2018, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In January 2018, the Company advanced
€100,000 (approximately $116,000) to an officer to cover fees related to an application for a gaming license in Malta, under
the name Ulisse Services, Ltd. The advance has been repaid and the gaming license in Malta is still under consideration.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">During the year ended December 31,
2018, the Company paid management fees of approximately €480,000 (approximately $549,000) to Ulisse Services, Ltd. to cover
office and set-up expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b><i>Michele
Ciavarella</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On July 5, 2019, the Company issued
to Mr. Ciavarella, the Chief Executive Officer and chairman of the board and officer of the Company, ten year options to purchase
39,375 shares of common stock at an exercise price of $2.96 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On August 29, 2019, the Company issued
to Mr. Ciavarella ten year options to purchase 25,000 shares of common stock at an exercise price of $2.80 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On September 4, 2019, Mr. Ciavarella
converted $500,000 of accrued salaries into 125,000 shares of common stock at a conversion price of $4 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Gold Street Capital</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Gold Street Capital is wholly owned
by Gilda Ciavarella, the spouse of Mr. Ciavarella.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On September 4, 2019, the Company
issued 15,196 shares of common stock to Gold Street Capital in settlement of $48,508 of advances made to the Company for certain
reimbursable expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Luca Pasquini</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On January 31, 2019, the Company
acquired Virtual Generation for €4,000,000 (approximately $4,576,352), Mr. Pasquini was a 20% owner of Virtual
Generation and was due gross proceeds of €800,000 (approximately $915,270). The gross proceeds of €800,000 was to
be settled by a payment in cash of €500,000 over a twelve month period and by the issuance of common stock valued at
€300,000 over an eighteen month period. As of December 31, 2019, the Company has paid Mr. Pasquini cash of
€125,600 (approximately $141,014) and issued 68,247 shares valued at €183,800 (approximately $205,463).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In addition, due to the attainment
of an earnout clause per the agreement, a further €500,000 (approximately $561,351) was earned as of December 31, 2019, which
earnout is to be settled by the issue of shares of common stock of which Mr. Pasquini’s shares is €100,000 (approximately
$112,270).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On August 29, 2019, the Company issued
to Mr. Pasquini, ten year options to purchase 25,000 shares of common stock at an exercise price of $2.80 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Gabriele Peroni</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On January 31, 2019, the Company
acquired Virtual Generation Limited for €4,000,000 (approximately $4,576,352), Mr. Peroni was a 20% owner of Virtual
Generation and was due gross proceeds of €800,000 (approximately $915,270). The gross proceeds of €800,000 was to
be settled by a payment in cash of €500,000 over a twelve month period and by the issuance of common stock valued at
€300,000 over an eighteen month period. As of December 31, 2019, the Company has paid Mr. Peroni cash of €167,200
(approximately $187,720) and issued 68,247 shares valued at €183,800 (approximately $205,463).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In addition, due to the attainment
of an earnout clause per the agreement, a further €500,000 (approximately $561,351) was earned as of December 31, 2019, which
earnout is to be settled by the issue of shares of common stock of which Mr. Peroni’s shares is €100,000 (Approximately
$112,270).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On August 29, 2019, the Company issued
to Mr. Peroni, ten year options to purchase 25,000 shares of common stock at an exercise price of $2.80 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Franco Salvagni</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On August 29, 2019, the Company issued
to Mr. Salvagni, an officer of the Company, ten year options to purchase 25,000 shares of common stock at an exercise price of
$2.80 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Beniamino Gianfelici</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On August 29, 2019, the Company issued
to Mr. Gianfelici, an officer of the Company, ten year options to purchase 25,000 shares of common stock at an exercise price of
$2.80 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b><i>Mark Korb</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On July 1, 2019, the Company issued
to Mr. Korb, the chief financial officer of the Company, seven year options to purchase 25,000 shares of common stock at an exercise
price of $2.72 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b><i>Paul Sallwasser</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On July 5, 2019, the Company issued
to Mr. Sallwasser, a director of the Company, ten year options to purchase 20,625 shares of common stock at an exercise price of
$2.96 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b><i>Steven
Shallcross</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -27pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On July 5, 2019, the Company issued
to Mr. Shallcross, a director of the Company, ten year options to purchase 10,313 shares of common stock at an exercise price of
$2.96 per share.</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; width: 70%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase consideration, net of discount of $382,778</font></td>
<td style="width: 10%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; width: 18%; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,193,375</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Fair value of assets acquired</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Cash</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">47,268</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">178,181</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Property, Plant and Equipment</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">41,473</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Betting Platform</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,004,594</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,271,516</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Less: liabilities assumed</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(78,141</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Less: Imputed Deferred taxation on identifiable intangible acquired (Betting platform)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,401,608</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total identifiable assets less liabilities assumed</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,791,767</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Goodwill arising on acquisition</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,401,608</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Total purchase consideration</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,193,375</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
0.0001
0.0001
20000000
5000000
1866528
14083
284721
457461
4.00
4.00
4.00
175550
68247
68247
-27000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>23.</b></td><td style="text-align: justify"><b>Subsequent Events</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Subsequent to year end, between January
12, 2020 and May 20, 2020, the Company converted convertible debentures in the aggregate principal amount of $400,000 including
interest thereon of $70,492 and CDN$305,600 (approximately $227,227) including interest thereon of CDN$42,504 (approximately $31,604)
into 226,792 shares of common stock at a conversion price of $3.20 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company also repurchased a convertible
debenture in the aggregate principal amount of CDN$10,000 (approximately $7,289, including interest thereon of CDN2,000 (approximately
$1,458) on February 26, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Additionally, Company issued the
following shares of common stock to promissory note holders in terms of the agreement entered into for the acquisition of Virtual
Generation, as disclosed in Note 3 above:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On January 1, 2020, 22,030 shares of common stock valued at $93,077;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On February 1, 2020, 23,890 shares of common stock valued at $91,542;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On March 1, 2020, 25,690 shares of common stock valued at $96,372;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On April 1, 2020, 61,040 shares of common stock valued at $90,745;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt">On May 1, 2020, 24,390 shares of common stock valued at $91,265</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">On June 1, 2020, 29,300 shares of common stock valued at $92,321</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 15, 2020 the Company and Handle
19, Inc. a District of Columbia corporation (the “Customer”) entered into a Management Services Provider (“MSP”)
agreement which is in effect for an initial term of 12 months commencing from the first date on which both parties receive the
necessary licenses from the District of Columbia Office of Lottery and Gaming (“DC Lottery”), and the Customer may
extend for an additional forty-eight (48) months at its sole discretion. The Customer has defined the first installation location
at 319 Pennsylvania Ave, Southeast, Washington, DC (the “Establishment”). Under terms of the agreement, the Company
shall:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.5in"><font style="font-size: 10pt">a)</font></td><td style="text-align: justify"><font style="font-size: 10pt">design, create, install and operate unique sports betting products
and services for the Customer at the Establishment in compliance with District of Columbia law. This shall be a customized Americanized
Interface. All equipment and software provided by Licensor shall meet the latest version of the GLI-33 or other generally accepted
standards that are approved by the DC Lottery</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.5in"><font style="font-size: 10pt">b)</font></td><td style="text-align: justify"><font style="font-size: 10pt">provide a customized Shop Client design as well as Ancillary Services
for each individual Gaming Application activated by the Customer including the processing of payments of wagers for each of the
activated Gaming Applications;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.5in"><font style="font-size: 10pt">c)</font></td><td style="text-align: justify"><font style="font-size: 10pt">provide Ancillary Services including customer support, technical
support, financial support, risk management and Reporting Service for Settlement by the Service Provider, in full compliance with
this Agreement and all applicable laws including, without limitation, the Legislation.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company shall invoice the Customer a fee
based on the Gross Gaming Revenue calculated after the assessment and payment of all relevant taxes imposed under the District
of Columbia Sports Wagering Lottery Amendment of 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 28, 2020 the Company formed Elys Gameboard
Technologies, LLC, a wholly owned subsidiary in the State of Delaware for the purposes of operating the Company’s US sports
betting operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The global coronavirus pandemic has created
a significant disruption and uncertainty since March 2020. On March 11, 2020, the Company reported that approximately 150 betting
shop locations throughout Italy were temporarily closed and that the closing of the physical locations did not affect the Company’s
continuing online and mobile operations. The Company has also implemented a smart-work initiative to permit the safe separation
of office staff during this period because government forced lockdowns made it impossible for the Company to access its administrative
offices in Europe. Additionally, the cancellation of sports events around the world disrupted our ability to provide our sports
betting products through our land-based establishments and online channels. These restrictions and other difficulties, in both
not having sports betting events available to wager on and the backlog of tasks imposed on our employees upon the return to work, are
affecting our ability to consistently deliver our products to market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated subsequent events
through the date the financial statements were issued, other than disclosed above, we did not identify any other subsequent events
that would have required adjustment or disclosure in the financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>19.</b></td><td style="text-align: justify"><b>Revenues</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following table represents disaggregated
revenues from our gaming operations for the years ended December 31, 2019 and 2018. Net Gaming Revenues represents Turnover (also
referred to as “Handle”), the total bets processed for the period, less customer winnings paid out, commissions paid
to agents, and taxes due to government authorities, while Commission Revenues represents commissions on lotto ticket sales and
Service Revenues is revenue invoiced for our Elys software service and royalties invoiced for the sale of virtual products.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">For the Year Ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Handle (Turnover)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: justify">Handle web-based</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">328,385,837</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">235,891,170</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Handle land-based</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">125,747,337</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">177,334,592</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Total Handle (Turnover)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">454,133,174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">413,225,762</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Winnings/Payouts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Winnings web-based</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">309,214,993</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">223,064,978</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Winnings land-based</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">105,011,619</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">152,446,130</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Total Winnings/Payouts</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">414,226,612</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">375,511,108</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Gross Gaming Revenues</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">39,906,562</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">37,714,654</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Less: ADM Gaming Taxes</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,697,085</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,417,150</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Net Gaming Revenues</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">35,209,477</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">34,297,504</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Betting platform software and services</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">373,654</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">277,593</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Revenues</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">35,583,131</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">34,575,097</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">For the Year Ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Handle (Turnover)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: justify">Handle web-based</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">328,385,837</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">235,891,170</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Handle land-based</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">125,747,337</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">177,334,592</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Total Handle (Turnover)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">454,133,174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">413,225,762</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Winnings/Payouts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Winnings web-based</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">309,214,993</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">223,064,978</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Winnings land-based</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">105,011,619</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">152,446,130</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Total Winnings/Payouts</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">414,226,612</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">375,511,108</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Gross Gaming Revenues</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">39,906,562</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">37,714,654</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Less: ADM Gaming Taxes</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,697,085</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,417,150</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify">Net Gaming Revenues</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">35,209,477</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">34,297,504</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Betting platform software and services</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">373,654</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">277,593</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Revenues</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">35,583,131</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">34,575,097</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
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771665
104.06
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28720
135.28
31.25
31.25
31.25
31.25
26
Newgioco Group, Inc.
0001080319
10-K
2019-12-31
false
--12-31
Yes
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false
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5587675
18
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200866
200866
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Life of the underlying lease</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer and office equipment</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Furniture and fittings</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">7 to 10</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to 5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Vehicles</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4 to 5</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%; font-weight: bold"></td><td style="text-align: justify; width: 95%"><b>Nature of Business</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Established in the state of Delaware in 1998,
Newgioco Group, Inc. (“Newgioco Group” or the “Company”) is an international, vertically integrated commercial-stage
company engaged in various aspects of the leisure gaming industry. The Company is a licensed gaming operator in the regulated
Italian leisure betting market offering gaming services, including a variety of lottery, casino gaming and sports betting products
through two distribution channels: an online channel and a land-based retail channel. Additionally, the Company is a global gaming
technology company (known as a “Provider”), which owns and operates a betting software designed with a unique “distributed
model” (“shop-client”) software architecture colloquially named Elys Game Board (the “Platform”).
The Platform is a fully integrated “omni-channel” framework that combines centralized technology for updating, servicing
and operations with multi-channel functionality to accept all forms of customer payment through the two distribution channels
described above. The omni-channel software design is fully integrated with a built-in player gaming account management system
and sports book.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company and its subsidiaries are as follows:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 48%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Name</td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 16%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Acquisition date</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 10%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Domicile</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 19%; font-weight: bold; text-align: justify; padding-left: 5.4pt">Functional Currency</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Group, Inc.</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Parent Company</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">USA</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">US Dollar</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Multigioco Srl (“Multigioco”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">August 15, 2014</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Italy</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Rifa Srl (“Rifa”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 1, 2015</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Italy</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Ulisse GmbH (“Ulisse”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">July 1, 2016</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Austria</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Odissea Betriebsinformatik Beratung GmbH (“Odissea”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">July 1, 2016</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Austria</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Virtual Generation Limited (“VG”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 31, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Naos Holdings limited (“Naos”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 31, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Group Inc. (“NG Canada”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">January 17, 2017</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Canadian Dollar</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Elys Technology Group Limited (“Elys”)</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">April 4, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Malta</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Euro</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Newgioco Colombia SAS</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">November 22, 2019</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Colombia</td><td> </td>
<td style="text-align: justify; padding-left: 5.4pt">Colombian Peso</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates in two lines of business:
(i) provider of certified betting Platform software services to leisure betting establishments in Italy and 11 other countries
and; (ii) the operating of web based as well as land based leisure betting establishments situated throughout Italy. The Company’s
operations are carried out through the following three geographically organized groups:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0">
<tr style="vertical-align: top">
<td style="width: 5%; padding-right: 0.8pt; text-align: justify"> </td>
<td style="width: 3%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a)</font></td>
<td style="width: 92%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an operational group is based in Europe and maintains administrative offices headquartered in Rome, Italy with satellite offices for operations administration in Naples and Teramo, Italy and San Gwann, Malta;</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">b)</font></td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a technology group which is based in Innsbruck, Austria and manages software development, training and administration; and</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">c)</font></td>
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">a corporate group which is based in North America and operates out of our principal executive offices in Toronto, Canada and satellite offices in the USA in Fort Lauderdale and Boca Raton, Florida, through which we carry-out corporate activities, handle day-to-day reporting and U.S. development planning, and through which various independent contractors and vendors are engaged.</font></td></tr></table>
11700000
4576352
4576352
5850000
108000
915270
7394
31604
1458
1411000
2392000
123769
800000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>11.</b></td><td style="text-align: justify"><b>Convertible Debentures</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On February 26, 2018, the Company
issued debenture units to certain accredited investors (the “February 2018 Private Placement”). Each debenture unit
was comprised of (i) a debenture in the principal amount of CDN $1,000 bearing interest at a rate of 10% per annum, with a maturity
date of two years from the date of issuance, (ii) warrants to purchase up to 31.25 shares of the Company’s common stock at
an exercise price equal to the lesser of $5.00 or 125% of the proposed initial Canadian public offering price per warrant, expiring
on February 25, 2020, and (iii) 20 shares of restricted common stock. The investors in the February 2018 Private Placement purchased
an aggregate principal amount of CDN $670,000 ($521,900) debentures and received warrants to purchase up to 20,938 shares of the
Company’s common stock and 13,875 shares of common stock. As a result of the lower debenture conversion price and the warrant
exercise price of the May 31, 2018 Private Placement described below, the whole or any part of the principal amount of the February
2018 Private Placement debentures plus any accrued and unpaid interest may be converted into shares of the Company’s common
stock at a price equal to $3.20 per share and the warrants can be exercised at a price equal to $4.00 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In April 2018, the Company issued
debenture units to certain investors (the “April 2018 Private Placement”). Each debenture unit was comprised of (i)
a debenture in the principal amount of CDN $1,000 bearing interest at a rate of 10% per annum, with a maturity date of two years
from the date of issuance, (ii) warrants to purchase up to 31.25 shares of the Company’s common stock at an exercise price
equal to the lesser of $5.00 or 125% of the proposed initial Canadian public offering price per warrant, expiring in April 2020,
and (iii) 20 shares of restricted common stock. The investors in the April 2018 Private Placement purchased an aggregate principal
amount of CDN $135,000 ($105,200) debentures and received warrants to purchase up to 4,218.75 shares of the Company’s common
stock and 2,700 shares of restricted common stock. As a result of the lower debenture conversion price and the warrant exercise
price of the May 31, 2018 Private Placement described below, the whole or any part of the principal amount of the April 2018 Private
Placement debentures plus any accrued and unpaid interest may be converted into shares of the Company’s common stock at a
price equal to $3.20 per share and the warrants can be exercised at a price equal to $4.00 per share</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On April 19, 2018, the Company re-issued
debenture units that were first issued to certain investors between January 24, 2017 and January 31, 2018 in order to simplify
the various debentures into a single series with the same terms as new convertible debenture units issued on February 26, 2018
(the “April 19, 2018 Debentures”). Each debenture unit was comprised of (i) a debenture in the principal amount of
CDN $1,000 bearing interest at a rate of 10% per annum, with a maturity date of two years from the date of issuance, (ii) warrants
to purchase up to 31.25 shares of the Company’s common stock at an exercise price equal to the lesser of $5.00 or 125% of
the proposed initial Canadian public offering price per warrant, expiring on April 19, 2020, and (iii) 20 shares of restricted
common stock. The investors in the April 19, 2018 Private Placement received an aggregate principal amount of CDN $1,436,000 ($1,118,600)
debentures, warrants to purchase up to 44,875 shares of the Company’s common stock and 28,720 restricted shares of common
stock. As a result of the lower debenture conversion price and the warrant exercise price of the May 31, 2018 Private Placement
described below, the whole or any part of the principal amount of the April 19, 2018 Debentures plus any accrued and unpaid interest
may be converted into shares of the Company’s common stock at a price equal to $3.20 per share and the warrants can be exercised
at a price equal to $4.00 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On May 11, 2018, the Company issued
debenture units to certain investors (the “May 11, 2018 Private Placement”). Each debenture unit was comprised of (i)
a debenture in the principal amount of CDN $1,000 bearing interest at a rate of 10% per annum, with a maturity date of two years
from the date of issuance, (ii) warrants to purchase up to 31.25 shares of the Company’s common stock at an exercise price
equal to the lesser of $5.00 or 125% of the proposed initial Canadian public offering price per warrant, expiring on May 11, 2020,
and (iii) 20 shares of restricted common stock. The investors in the May 11, 2018 Private Placement purchased an aggregate principal
amount of CDN $131,000 ($102,000) debentures and received warrants to purchase up to 4,093.75 shares of the Company’s common
stock and 2,620 restricted shares of common stock. As a result of the lower debenture conversion price and the warrant exercise
price of the May 31, 2018 Private Placement described below, the whole or any part of the principal amount of the May 11, 2018
Private Placement plus any accrued and unpaid interest may be converted into shares of the Company’s common stock at a price
equal to $3.20 per share and the warrants can be exercised at a price equal to $4.00 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On May 31, 2018, the Company closed
a private placement offering of up to 7,500 units and entered into Subscription Agreements (the “Agreements”) with
certain accredited investors (the “May 31, 2018 Private Placement”). The units were offered in both U.S. and Canadian
dollar denominations. Each unit sold to U.S. investors was sold at a per unit price of $1,000 and was comprised of (i) a 10% convertible
debenture in the principal amount of $1,000 (the “U.S. Debentures”) maturing on May 31, 2020, (ii) 26 shares of our
common stock and (ii) warrants to purchase up to 135.25 shares of the Company’s common stock (the “U.S. Warrants”).
Each unit sold to Canadian investors was sold at a per unit price of CND $1,000 and was comprised of (i) a 10% convertible debenture
in the principal amount of CND $1,000 (the “Canadian Debentures” and together with the U.S. Debentures, the “May
Debentures”), (ii) 20 shares of our common stock and (ii) warrants to purchase up to 104.06 shares of our common stock (the
“Canadian Warrants” and together with the U.S. Warrants, the “May Warrants”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The May 31, 2018 Warrants are exercisable
at an exercise price of $4.00 per share and expire on May 31, 2020.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The accounting treatment relating
to the convertible debentures issued was in accordance with the guidance in ASC 480 and ASC 815.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The proceeds received from the convertible
debentures were; (i) net of finders fees issued to certain brokers; (ii) in addition, the Company issued shares of common stock
to the convertible debenture holders; as well as (iii) certain two year warrants exercisable for shares of common stock at an exercise
price of $4.00 per share; (iv) in conjunction with the finders fees paid, the Company also issued warrants to certain brokers on
the same terms and conditions as the warrants issued to the convertible debenture holders; and (v) the convertible debentures are
convertible into shares of common stock at a conversion price of $3.20 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The accounting treatment of the above
is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(i)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The convertible debentures were recorded at gross value;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The cash fee paid to the brokers was $427,314 and the fair value
of the warrants issued to the brokers were valued at fair value as described in (iv) below and were recorded as a debt discount
against the gross value of the convertible debentures;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(iii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The shares of common stock issued to the convertible debenture holders
were valued at $582,486, the market price of the common stock on the date of issue and were recorded as debt discount against the
gross value of the convertible debt;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(iv)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The warrants issued to the convertible debenture holders and brokers
were valued at $2,929,712 using a Black-Scholes valuation model, the value of the warrants was recorded as a discount against the
gross value of the convertible debentures and initially recorded as a derivative liability on the basis of standard anti-dilution
language being interpreted as a down round feature, the warrants do not provide for any down round features and subsequent to the
initial recording the Company adopted ASU 2017-11in September 2018 and eliminated the derivative liability;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(v)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The conversion feature of the convertible debentures was in-the-money
at date of issuance, giving rise to a beneficial conversion feature valued at intrinsic value of $2,585,055. </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 81pt"></td><td style="width: 36pt"><font style="font-size: 10pt">(vi)</font></td><td style="text-align: justify"><font style="font-size: 10pt">The company originally recorded the conversion feature as a derivative
liability on the basis that the standard anti-dilution clauses in the convertible debt agreements relating to stock splits and
stock mergers amounted to a down-round feature, the convertible debentures do not provide for down round features and accordingly,
the Company adopted ASU2017-11 in September 2018 and eliminated the derivative liability.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The total debt discount above amounted
to $6,524,567 which is being amortized over the two year life of the debentures on a straight line basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">As of December 31, 2019 and 2018,
the Company has outstanding, US Dollar convertible debentures of $2,083,000 and $3,268,000, respectively and Canadian Dollar denominated
Convertible debentures of CDN$1,794,600 and CDN$6,801,165, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">During the year ended December 31,
2019, investors in Canadian Dollar convertible debentures converted the aggregate principal amount of CDN$5,367,400, including
interest thereon of CDN$791,861 and investors in US Dollar convertible debentures converted the aggregate principal amount of $1,185,000,
including interest thereon of $133,959, into 1,866,528 shares of common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Aggregate convertible debentures
outstanding consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Principal Outstanding</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 56%"><font style="font-size: 10pt">Opening balance</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">8,529,751</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">1,610,980</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7,080,308</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Conversion to equity</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,240,736</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">175,722</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(161,537</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,464,737</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">8,529,751</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Accrued Interest</b></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; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Opening balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">719,931</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Conversion to equity</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(731,731</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">15,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">524,227</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Debenture Discount</b></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; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Opening balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,587,228</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(462,872</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(6,119,484</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,959,601</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,995,128</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(627,627</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4,587,228</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Convertible Debentures, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,361,337</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,463,046</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
719931
25830
133959
139383
520523
38169
627627
4587228
120104
80069
462872
524227
520523
113553
75384
4.00
5.04
4.64
4.64
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="padding-right: 2.8pt; text-align: center"> </td>
<td style="padding-right: 0.8pt; text-align: center"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; padding-right: 0.15in; text-align: center"><font style="font-size: 10pt"><b>Warrants outstanding</b></font></td>
<td style="padding-right: 0.8pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; padding-right: 6.8pt; text-align: center"><font style="font-size: 10pt"><b>Warrants exercisable</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 9%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 19%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Number of shares</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 17%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average remaining years</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 13%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 12%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Number of shares</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 1%; padding-right: 0.8pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; width: 13%; padding-right: 0.8pt; text-align: center"><font style="font-size: 10pt"><b>Weighted average exercise price</b></font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1,089,474</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">0.41</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1,089,474</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4.00</font></td>
<td style="padding-right: 0.8pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
option to resell to the Company 50% of the shares of common stock (or 208,200 shares) issued in consideration for the purchase price at a fixed price of USD $4.00 per share (the “Ulisse Put Option”)
9.44
255000
595000
-2261307
34575097
35583131
35583131
34575097
35662253
34693524
3212865
2310506
-3291987
-2428933
24142110
27584492
25583913
24142110
2000579
10588162
10994554
5109135
4968280
1294617
2360357
4590802
3259525
34730272
38579046
33532259
31279260
3747972
2620420
4590802
3259525
-3291987
-2428933
-155175
-2995915
2129994
3414264
-535107
-309914
-4590802
-3259525
619709
972443
190206
25910
-3
782240
593799
761
761
516120
516120
-75000
-97500
-97500
-75000
-2370881
-5680714
-75388
-25910
3
-5605329
-2344971
-2526056
-8676629
2054606
3388354
-535104
-309914
-10196131
-5604496
1102701
598176
641528
1082919
43352
18042
1740
-3628757
-9274805
1413078
2305435
-491752
-327956
-10196131
-5606236
-184043
-119286
-3812800
-9394091
-0.38
-0.91
9485993
10226432
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>a)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Basis of Presentation</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The accompanying consolidated financial
statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">All amounts referred to in the notes
to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.</p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Betting Platform Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">15</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Ulisse Bookmaker License</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Indefinite</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Multigioco and Rifa ADM Licenses</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1.5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Location contracts</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Customer relationships</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">10 - 15</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Trademarks/Tradenames</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">14</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Websites</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5</font></td></tr>
</table>
<p style="margin: 0pt"></p>
250000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>20.</b></td><td style="text-align: justify"><b>Net Loss per Common Share</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Basic loss per share is based on the
weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined
above, plus the incremental shares that would be issued upon the assumed exercise of “in-the-money” warrants using
the treasury stock method and the inclusion of all convertible securities, including convertible debentures, assuming these securities
were converted at the beginning of the period or at the time of issuance, if later. The computation of diluted net loss per share
does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">For the years ended December 31, 2019
and 2018, the following options, warrants and convertible debentures were excluded from the computation of diluted loss per share
as the result of the computation was anti-dilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 10pt">Options</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">315,938</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Warrants</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Convertible debentures</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,246,551</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,856,764</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">2,651,963</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3,946,238</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 10pt">Options</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">315,938</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 12%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Warrants</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Convertible debentures</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,246,551</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,856,764</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">2,651,963</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3,946,238</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
235891170
177334592
328385837
125747337
454133174
413225762
223064978
152446130
309214993
105011619
414226612
375511108
39906562
37714654
4697085
3417150
34575097
35583131
35209477
34297504
35209477
34433461
373654
141636
P0Y4M1D
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Cost</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Accumulated depreciation</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 36%; font-size: 10pt; text-align: left">Betting platform software</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">5,689,965</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">(637,320</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">5,052,645</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">1,405,134</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Licenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,694,227</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(764,732</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">9,929,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,037,980</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Location contracts</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,000,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(768,688</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">231,312</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">374,169</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Customer relationships</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">870,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(301,227</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">569,700</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">630,161</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Trademarks</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">116,175</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(42,300</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">73,875</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">75,583</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-bottom: 1pt">Websites</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">40,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(40,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,953</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">18,411,294</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,554,267</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">15,857,027</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">12,527,980</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
3803000
P15Y
1000000
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Principal Outstanding</b></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; background-color: #CCEEFF">
<td style="width: 56%"><font style="font-size: 10pt">Opening balance</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">8,529,751</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">1,610,980</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7,080,308</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Conversion to equity</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,240,736</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">175,722</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(161,537</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,464,737</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">8,529,751</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Accrued Interest</b></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; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Opening balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">719,931</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Conversion to equity</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(731,731</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">15,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">524,227</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">520,523</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Debenture Discount</b></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; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Opening balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,587,228</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(462,872</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(6,119,484</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,959,601</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,995,128</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(627,627</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4,587,228</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Convertible Debentures, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,361,337</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,463,046</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
1995128
4154922
3959601
4154922
1995128
1995128
-5240736
227227
2234
-1022
175722
-161537
-731731
15504
0.10
0.10
0.10
0.10
0.10
2020-02-25
2020-04-30
2020-05-11
2020-04-19
2020-05-31
5.00
5.00
5.00
5.00
135.25
20
20
20
20
20
521900
105200
102000
1118600
20938
4218.75
4093.75
44875
95313
150000
200000
39375
30938
25000
70625
3464737
8529751
1610980
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 10pt; text-align: left">Opening balance</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">318,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">318,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Settled by issuance of common shares</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(318,078</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">318,078</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Accrued Interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Opening balance</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">113,553</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">75,384</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Interest expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">25,830</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">38,169</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Conversion to equity</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(139,383</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">113,553</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Convertible Debentures, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">431,631</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
318078
318078
1279430
1830541
-616387
-318078
226792
1866528
-410925
-56295
-35992
120104
242089
-98907
161393
-80069
161393
117192
56604
78128
4793
5882
3195
1682280
1682280
1147963
1199361
5972507
45066
728884
553525
72000
3268000
2083000
1185000
400000
7500
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Number of shares</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Exercise price per share</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="width: 25%; font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding January 1, 2018</b></font></td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 18%; font-size: 10pt; text-align: right">76,566</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 21%; font-size: 10pt; text-align: right">4.32</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 19%; font-size: 10pt; text-align: right">4.32</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,096,224</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(27,000</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5.04</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">5.04</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(40,761</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.64</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.64</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Expired</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,555</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.64</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.64</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding December 31, 2018</b></font></td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">1,089,474</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4.00</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Outstanding December 31, 2019</b></font></td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,089,474</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.00</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.00</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
5296905
2606056
1266145
833859
1339911
457461
139383
<p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>18.</b></td><td style="text-align: justify"><b>Stock options</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In September 2018, our stockholders
approved our 2018 Equity Incentive Plan, which provides for a maximum of 1,150,000 awards that can be issued as options, stock
appreciation rights, restricted stock, stock units, other equity awards or cash awards. No awards were granted under the 2018 Equity
Incentive Plan as of December 31, 2018. During July 2019, we issued an aggregate of 95,313 options to purchase common stock, of
which options to purchase 25,000 shares of common stock were issued to our Chief Financial Officer, options to purchase 39,375
shares of common stock were issued to our Chief Executive Officer and options to purchase 30,938 shares of common stock were issued
to directors. During August 2019, we issued an aggregate of 150,000 options to purchase shares of common stock of which options
to purchase 25,000 shares of common stock were issued to each of Michele Ciavarella, our Chief Executive Officer, Alessandro Marcelli,
our Vice President of Operations, Luca Pasquini, our Vice President of Technology, Gabriele Peroni, our Vice President Business
Development, Franco Salvagni, our Vice President of Land-based Operations and Beniamino Gianfelici, our Vice President Regulatory
Affairs. On November 11,2019 we issued options to purchase 70,625 shares of common stock to various employees at an exercise price
of $2.80 per share. As of December 12, 2019, there was an aggregate of 315,938 options to purchase shares of common stock granted
under our 2018 Equity Incentive Plan and 834,062 reserved for future grants.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">There were no option awards during
or prior to the year ended December 31, 2018.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The options awarded during the year
ended December 31, 2019 were valued using a Black-Scholes option pricing model.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following assumptions were used
in the Black-Scholes model:</p>
<p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>Year ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>December 31, 2019</b></p></td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Exercise price</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">2.72 to 2.96</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Risk free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">1.50 to 2.04</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Expected life of options</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">7 to 10 years</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected volatility of underlying stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">237.4 to 270.2</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left">Expected dividend rate</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">0</td><td style="width: 1%; text-align: left">%</td>
</tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">A summary of all of the Company’s option activity
during the period January 1, 2019 to December 31, 2019 is as follows:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Number of shares</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Exercise price per share</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 20%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 19%; font-size: 10pt; text-align: right">315,938</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 19%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">$2.72 to $2.96</font></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 19%; font-size: 10pt; text-align: right">2.84</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Outstanding December 31, 2019</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">315,938</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">$2.72 to $2.96</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.84</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The following tables summarize information about stock
options outstanding as of December 31, 2019:</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom; background-color: White">
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Options outstanding</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Options exercisable</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">Exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"> Number of
shares</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted average remaining years</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted Average exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"> Number of
shares</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted average exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font-size: 10pt; text-align: left">$</td>
<td style="width: 13%; font-size: 10pt; text-align: right">2.72</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 11%; font-size: 10pt; text-align: right">25,000</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 15%; font-size: 10pt; text-align: right">6.50</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 13%; text-align: right"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 13%; font-size: 10pt; text-align: right">—  </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 13%; text-align: right"> </td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">$</td>
<td style="font-size: 10pt; text-align: right">2.80</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">220,625</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">9.73</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">13,971</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.96</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">70,313</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.52</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">35,859</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">315,938</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.30</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.83</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">49,830</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.92</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">The weighted-average grant-date
fair values of options granted during the year ended December 31, 2019 was $899,704 ($2.85 per share), of which $201,106 was recorded
as compensation cost for the year ended December 31, 2019. As of December 31, 2019, there were unvested options to purchase 237,982
shares of common stock. Total expected unrecognized compensation cost related to such unvested options is $698,598 which is expected
to be recognized over a period of 47 months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">The intrinsic value of the options
at December 31, 2019 was $354,078.</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>Year ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>December 31, 2019</b></p></td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Exercise price</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">2.72 to 2.96</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Risk free interest rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">1.50 to 2.04</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Expected life of options</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">7 to 10 years</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected volatility of underlying stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">237.4 to 270.2</font></td><td style="text-align: left"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left">Expected dividend rate</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">0</td><td style="width: 1%; text-align: left">%</td>
</tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Number of shares</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Exercise price per share</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">Weighted average exercise price</td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 20%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Granted</font></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 19%; font-size: 10pt; text-align: right">315,938</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 19%; font-size: 10pt; text-align: right"><font style="font-size: 10pt">$2.72 to $2.96</font></td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 5%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 19%; font-size: 10pt; text-align: right">2.84</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Forfeited/cancelled</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Exercised</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">Outstanding December 31, 2019</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">315,938</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">$2.72 to $2.96</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.84</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Options outstanding</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Options exercisable</td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">Exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">Options Number of
shares</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted average remaining years</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted Average exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">Options Number of
shares</td>
<td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">Weighted average exercise price</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; font-size: 10pt; text-align: left">$</td>
<td style="width: 13%; font-size: 10pt; text-align: right">2.72</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 11%; font-size: 10pt; text-align: right">25,000</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 15%; font-size: 10pt; text-align: right">6.50</td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 13%; text-align: right"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 13%; font-size: 10pt; text-align: right">—  </td>
<td style="width: 1%; font-size: 10pt; text-align: left"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td>
<td style="width: 13%; text-align: right"> </td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">$</td>
<td style="font-size: 10pt; text-align: right">2.80</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">220,625</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">9.73</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; text-align: right">13,971</td>
<td style="font-size: 10pt; text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.96</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">70,313</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.52</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">35,859</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">315,938</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.30</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.83</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">49,830</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td>
<td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.92</td>
<td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
1.50
2.04
2.374
2.702
P9Y3M0D
P7Y
P10Y
P6Y5M
P9Y7M3D
P9Y5M2D
0.00
2.72
2.96
2.72
2.80
2.96
315938
315938
25000
220625
70313
1150000
834062
25000
25000
25000
20625
10313
39375
25000
25000
25000
315938
2.83
2.72
2.72
899704
237982
698598
15697029
792078
275000
177500
1682280
1199361
12476
12476
41954
548747
548747
25025
25025
-196403
-196403
149565
114818
34747
-44063
-44063
-561351
-561351
112270
112270
4338217
9939403
8801285
927
944
1194
14548951
23962920
32218643
126612
-57431
-176717
-10338273
-13967030
-23241835
697266
946185
1995128
4154922
745762
1514
1003
37021
90353
3062419
2973916
-100053
95147
-142779
240559
-498941
-438235
43157
368894
1401302
-145520
4725856
252198
137965
118336
-177060
4499088
-479445
381855
24614
5588008
2307569
2551856
643860
222915
792679
-1117927
7057763
-518354
201106
6354
225433
-701029
76048
22294
45065
-4725856
-468348
750000
250000
6883906
619709
227006
339274
884295
582486
-672871
-14989
-11371
58144
49914
508572
1560539
1549917
20
1009981
5972508
1027313
9267948
9442537
11949042
1514
1514
228903
1866467
582486
5972508
22
187
5972321
582464
2551856
2551856
-3628757
-9274805
-3628757
-9274805
-184043
-119286
-184043
-119286
2951429
2951429
-225000
2260974
26
2260948
284721
15196
1009981
28
1009953
48508
201106
201106
500000
341235
1027313
34
1027279
14082
45065
1
45064
3828133
47268
216150
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>b)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Principles of consolidation</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The consolidated financial statements
include the financial statements of the Company and its subsidiaries, all of which are wholly-owned. All significant inter-company
transactions are eliminated upon consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Certain items in the prior periods
were reclassified to conform to the current period presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">All amounts referred to in the Notes
to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>c)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Foreign operations</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company translated the assets and liabilities of its
foreign subsidiaries into US Dollars at the exchange rate in effect at year end and the results of operations and cash flows at
the average rate throughout the year. The translation adjustments are recorded directly as a separate component of stockholders’
equity, while transaction gains (losses) are included in net income (loss).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt">All revenues were generated in Euro during the years presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gains and losses from foreign currency
transactions are recognized in current operations.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>d)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Business Combinations</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company allocates the fair value
of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair
values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities
is recorded as goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Such valuations require management
to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade
names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon
assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may
differ from estimates.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>e)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Use of Estimates</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The preparation of consolidated financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts
of revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions
include valuing equity securities issued in share-based payment arrangements, determining the fair value of assets acquired, allocation
of purchase price, impairment of long-lived assets, the collectability of receivables, leasing arrangements, convertible debentures,
contingencies and the value of deferred taxes and related valuation allowances. Certain estimates, including evaluating the collectability
of receivables and advances, could be affected by external conditions, including those unique to the Company’s industry and
general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that
could cause actual results to differ from the Company’s estimates. The Company re-evaluates all of its accounting estimates
at least quarterly based on these conditions and records adjustments when necessary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>f)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Loss Contingencies</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company may be subject to claims,
suits, government investigations, and other proceedings involving competition and antitrust, intellectual property, privacy, indirect
taxes, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or
publishers using the Company’s website platforms, and other matters. Certain of these matters include speculative claims
for substantial or indeterminate amounts of damages. The Company records a liability when it believes that it is both probable
that a loss has been incurred, and the amount can be reasonably estimated. If the Company determines that a loss is possible, and
a range of the loss can be reasonably estimated, it discloses the range of the possible loss in the Notes to the Consolidated Financial
Statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company evaluates, on a regular
basis, developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters
and related ranges of possible losses disclosed and makes adjustments and changes to our disclosures as appropriate. Significant
judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. Until
the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could
be material. Should any of the Company’s estimates and assumptions change or prove to have been incorrect, it could have
a material impact on its business, consolidated financial position, results of operations, or cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">To date, none of these types of litigation
matters, most of which are typically covered by insurance, has had a material impact on the Company’s operations or financial
condition. The Company has insured and continues to insure against most of these types of claims.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>g)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Fair Value Measurements</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC Topic 820, Fair Value Measurement
and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and
unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 1: Observable inputs such as
quoted prices (unadjusted) in active markets for identical assets or liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 2: Inputs other than quoted
prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active
markets and quoted prices for identical or similar assets or liabilities in markets that are not active.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Level 3: Unobservable inputs in which
little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that
a market participant would use.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The carrying value of the Company's
accounts receivables, gaming accounts receivable, lines of credit - bank, accounts payable, gaming accounts payable and bank loans
payable approximate fair value because of the short-term maturity of these financial instruments.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>h)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Derivative Financial Instruments</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC 815 generally provides three criteria
that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing
derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks
of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host
contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured
at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings
as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative
instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is
deemed to be conventional, as described.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company determined that the conversion
feature of the convertible debt did not qualify as a derivative liability and is not bifurcated from the host instrument but contains
a beneficial conversion feature.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>i)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Cash and Cash Equivalents</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company considers all highly liquid
debt instruments with maturities of three months or less at the time acquired to be cash equivalents. The Company had no cash equivalents
as of December 31, 2019 and 2018, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company primarily places cash
balances in the USA with high-credit quality financial institutions located in the United States which are insured by the Federal
Deposit Insurance Corporation up to a limit of $250,000 per institution, in Canada which are insured by the Canadian Deposit Insurance
Corporation up to a limit of CDN$100,000 per institution, in Italy which is insured by the Italian deposit guarantee fund Fondo
Interbancario di Tutela dei Depositi (FITD) up to a limit of €100,000 per institution, and in Germany which is a member of
the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes deutscher Banken) up
to a limit of €100,000 per institution.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>j)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Gaming Accounts Receivable</b></font></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gaming accounts receivable represent
gaming deposits made by customers to their online gaming accounts either directly by credit card, bank wire, e-wallet or other
accepted method through one of our websites or indirectly by cash collected at the cashier of a betting shop but not yet credited
to the Company’s bank accounts and subject to normal trade collection terms without discounts. The Company periodically evaluates
the collectability of its gaming accounts receivable and considers the need to record or adjust an allowance for doubtful accounts
based upon historical collection experience and specific customer information. Actual amounts could vary from the recorded estimates.
The Company does not require collateral to support customer receivables. The Company recorded a bad debt expense of $163,942 and
$0 for the years ended December 31, 2019 and 2018, respectively. All balances previously recorded as allowance for doubtful accounts
were written off as uncollectible.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>k)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Gaming Accounts Payable</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Gaming accounts payable represent
customer balances, including winnings and deposits, that are held as credits in online gaming accounts and have not as of yet been
used or withdrawn by the customers. Customers can request payment of winnings from the Company at any time and the payment to customers
can be made through bank wire, credit card, or cash disbursement from one of our locations. Online gaming account credit balances
are non-interest bearing.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>l)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Long-Lived Assets</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company evaluates the carrying
value of its long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net
book value of the assets when events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable.
If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value
over the estimated fair value will be charged to earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Fair value is based upon discounted
cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, appraisals, and, if
appropriate, current estimated net sales proceeds from pending offers.’’</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>m)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Property, Plant and Equipment</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Plant and equipment is stated at acquisition
cost less accumulated depreciation and adjustments for impairment losses. Expenditures are capitalized only when they increase
the future economic benefits embodied in an item of plant and equipment. All other expenditures are recognized as expenses in the
statement of operations as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Depreciation is charged on a straight-line
basis over the estimated remaining useful lives of the individual assets. Amortization commences from the time an asset is put
into operation. The range of the estimated useful lives is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Life of the underlying lease</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer and office equipment</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Furniture and fittings</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">7 to 10</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Computer Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">3 to 5</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Vehicles</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">4 to 5</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>n)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Intangible Assets</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Intangible assets are stated at acquisition
cost less accumulated amortization, if applicable, less any adjustments for impairment losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Amortization is charged on a straight-line
basis over the estimated remaining useful lives of the individual intangibles. Where intangibles are deemed to be impaired the
Company recognizes an impairment loss measured as the difference between the estimated fair value of the intangible and its book
value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The range of the estimated useful
lives is as follows:</p>
<p style="font: 10pt 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%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; width: 76%; padding-right: 0.8pt"><font style="font-size: 10pt"><b>Description</b></font></td>
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 22%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>Useful Life</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: right"><b>(in years)</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"> </td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Betting Platform Software</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">15</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Ulisse Bookmaker License</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">Indefinite</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Multigioco and Rifa ADM Licenses</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">1.5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Location contracts</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5 - 7</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Customer relationships</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">10 - 15</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCECFF">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Trademarks/Tradenames</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">14</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">Websites</font></td>
<td style="padding-right: 0.8pt"> </td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 10pt">5</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Ulisse Bookmaker has no expiration
date and is therefore not amortized.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>o)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Goodwill</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company allocates the fair value
of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair
values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities
is recorded as goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Such valuations require management
to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade
names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon
assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may
differ from estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company annually assesses whether
the carrying value of its goodwill exceeds its fair value and, if necessary, records an impairment loss equal to any such excess.
Each interim reporting period, the Company assesses whether events or circumstances have occurred which indicate that the carrying
amount of goodwill exceeds its fair value. If the carrying amount of the goodwill exceeds its fair value, an asset impairment charge
will be recognized in an amount equal to that excess.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">In terms of ASC 350, the Company skipped
the requirement to perform a qualitative assessment and performed a quantitative assessment on its goodwill and other intangible
assets as of December 31, 2019, concluding that no impairment was considered necessary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>p)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Income Taxes</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company uses the asset and liability
method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax
expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences
of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided
to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely
than not some portion or all of the deferred tax assets will not be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">ASC Topic 740-10-30 clarifies the
accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold
and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods
presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">In Italy, tax years beginning 2015
forward, are open and subject to examination, while in Austria companies are open and subject to inspection for five years and
ten years for inspection of serious infractions. In the United States and Canada, tax years beginning 2015 forward, are subject
to examination. The Company is not currently under examination and it has not been notified of a pending examination.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>q)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Revenue Recognition</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company recognizes revenue when
control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects
to receive from its customers in exchange for those products and services. Revenues from sports-betting, casino, cash and skill
games, slots, bingo and horse race wagers represent the gross pay-ins (also referred to as turnover) from customers less gaming
taxes and payouts to customers. Revenues are recorded when the game is closed which is representative of the point in time at which
the Company has satisfied its performance obligation. In addition, the Company receives commissions from the sale of scratch tickets
and other lottery games. Commissions are recorded when the ticket for scratch off tickets and lottery tickets are sold.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Revenues from the Betting Platform
include software licensing fees, training, installation, and product support services. The Company does not sell its proprietary
software. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation
has been fulfilled. License fees are calculated as a percentage of each licensee’s level of activity and are contingent upon
the licensee’s usage. The license fees are recognized on an accrual basis as earned.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>r)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Stock-Based Compensation</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company records its compensation
expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using
the Black-Scholes option pricing model. Stock-based compensation includes amortization related to stock option awards based on
the estimated grant date fair value. Stock-based compensation expense related to stock options is recognized ratably over the vesting
period of the option. In addition, the Company records expense related to Restricted Stock Units (“RSU’s”) granted
based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the
vesting term of those awards. Forfeitures of stock options and RSUs are recognized as they occur.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Stock-based compensation expense for
a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined
to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense
is recognized and any previously recognized compensation expense is reversed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>s)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Comprehensive Income (Loss)</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Comprehensive income (loss) is defined
as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner
sources, including foreign currency translation adjustments.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>t)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Earnings Per Share</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 260, “Earnings Per Share” provides for calculation
of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed
by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period.
Diluted earnings per share reflects the dilutive impact on the number of shares outstanding should they be exercised. Securities
that have the potential to dilute shareholder's interests include unexercised stock options and warrants as well as unconverted
debentures.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">On December 12, 2019, the Company
effected an 1 for 8 reverse stock split, all references made to share or per share amounts in the accompanying consolidated financial
statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>u)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Related Parties</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Parties are considered to be related
to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under
common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate
families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls
or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions
are recorded at fair value of the goods or services exchanged.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>w)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Recent Accounting Pronouncements</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">In June 2016, the FASB issued
ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): “Measurement of Credit Losses on Financial
Instruments,” which replaces the incurred loss methodology with an expected credit loss methodology that is referred to
as the current expected credit loss (CECL) methodology. ASU 2016-13 is effective for fiscal years beginning after December
15, 2019, with early adoption permitted. The amendments in this update are required to be applied using the modified
retrospective method with an adjustment to accumulated deficit and are effective for the Company beginning with fiscal year
2020, including interim periods. The measurement of expected credit losses under the CECL methodology is applicable to
financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. An entity with
trade receivables will be required to use historical loss information, current conditions, and reasonable and supportable
forecasts to determine expected lifetime credit losses. Pooling of assets with similar risk characteristics is also
required.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The Company adopted ASU 2016-13
on January 1, 2020 on a modified retrospective basis, and is currently evaluating the impact of adoption of the
amendments in these updates, which are not expected to have a material impact on the Company’s financial position,
results of operations, and related disclosures.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"><i>In December 2019, the FASB issued
ASU 2019-12, Income Taxes (Topic 740), </i>the Amendments in this update reduce the complexity in accounting for income taxes by
removing certain exceptions to accounting for income taxes and deferred taxes and simplifying the accounting treatment of franchise
taxes, a step up in the tax basis of goodwill as part of business combinations, the allocation of current and deferred tax to a
legal entity not subject to tax in its own financial statements, reflecting changes in tax laws or rates in the annual effective
rate in interim periods that include the enactment date and minor codification improvements.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">This ASU is effective for fiscal
years and interim periods beginning after December 15, 2020.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The effects of this ASU on the Company’s
financial statements is not considered to be material.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The FASB issued several updates during
the period, none of these standards are either applicable to the Company or require adoption at a future date and none are expected
to have a material impact on the consolidated financial statements upon adoption.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>v)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Adoption of Accounting Standards</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"><b><i>In February 2016, the Financial
Accounting Standards Board (“FSAB”) issued Accounting Standards Update (“ASU”), No. 2016-02, Leases (Topic
842) (ASC 842)</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The amendments in this update establishes
a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach
to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet
as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. The new standard
is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. A modified
retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative
period presented in the financial statements, including a number of optional practical expedients that entities may elect to apply.
In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, an update which provides another transition
method, the prospective transition method, which allows entities to initially apply the new lease standard at the adoption date
and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company
adopted the new standard on January 1, 2019 using the prospective transition method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">The Company has identified all material
leases and reviewed the leases to determine the impact of ASC 842 on its consolidated financial statements. The Company has elected
to apply all of the practical expedients to all leases, which include not reassessing (1) whether any expired or existing contracts
are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing
leases. The adoption of the new standard resulted in; (i) the recording of a right-of-use asset of $646,138 and an operating lease
liability of $617,352 on the consolidated balance sheet with effect from January 1, 2019 utilizing implicit borrowing rates where
available and incremental borrowing rates where rates were not readily available. The right of use asset and operating lease liability
are subsequently amortized. No cumulative effect adjustment to opening retained earnings was made as the amounts are immaterial.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>x)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b>Reporting by segment</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company has two operating segments
from which it derives revenue. These segments are:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt">(i)</font></td><td style="text-align: justify"><font style="font-size: 10pt">provider of certified betting Platform software services to leisure
betting establishments in Italy and 11 other countries and;</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt">(ii)</font></td><td style="text-align: justify"><font style="font-size: 10pt">the operating of web based as well as land based leisure betting
establishments situated throughout Italy.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 5%"></td><td style="width: 3%"><font style="font-size: 10pt"><b>y)</b></font></td><td style="text-align: justify; width: 92%"><font style="font-size: 10pt"><b><i>Comparatives</i></b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.6in; text-align: justify">Certain items in the prior year were
reclassified to conform to the current period presentation. These reclassifications had no impact on net loss or comprehensive
loss.</p>
No
No
false
P3Y
P5Y
P4Y
P5Y
P3Y
P5Y
P7Y
P10Y
4004594
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>5.</b></td><td style="text-align: justify"><b>Plant and equipment</b></td></tr></table>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0"><br />
<br />
</p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Cost</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Accumulated depreciation</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; font-size: 10pt; text-align: left">Leasehold improvements</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">47,291</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">(14,886</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">32,405</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">8,038</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Computer and office equipment</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">835,793</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(522,969</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">312,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">258,448</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Fixtures and fittings</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">135,869</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(78,271</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">57,598</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">62,795</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Vehicles</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">98,115</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(25,589</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">72,526</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">88,262</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Computer software</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">125,831</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(80,459</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">45,372</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">58,504</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">1,242,899</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(722,174</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">520,725</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">476,047</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The aggregate depreciation charge
to operations was $283,497 and $228,715 for the years ended December 31, 2019 and 2018, respectively. The depreciation policies
followed by the Company are described in Note 2.</p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Cost</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Accumulated depreciation</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Net book<br /> value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; font-size: 10pt; text-align: left">Leasehold improvements</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">47,291</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">(14,886</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">32,405</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">8,038</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Computer and office equipment</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">835,793</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(522,969</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">312,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">258,448</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Fixtures and fittings</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">135,869</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(78,271</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">57,598</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">62,795</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Vehicles</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">98,115</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(25,589</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">72,526</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">88,262</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Computer software</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">125,831</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(80,459</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">45,372</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">58,504</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">1,242,899</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(722,174</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">520,725</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">476,047</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
228715
283497
1242899
47291
835793
135869
98115
125831
722174
14886
522969
78271
25589
80459
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>6.</b></td><td style="text-align: justify"><b>Leases</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"><b>Adoption of ASC Topic 842, “Leases”</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On January 1, 2019, the Company adopted
Topic 842 using the modified retrospective method applied to leases that were in place as of January 1, 2019. Results for reporting
periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue
to be reported in accordance with the Company’s historic accounting under Topic 840. The Company’s portfolio of leases
contains both finance and operating leases that relate to real estate agreements, vehicles and office equipment agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Practical Expedients and Elections</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company elected the package of
practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification,
the Company’s assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that exist
prior to adoption of the new standard. The Company also elected to combine lease and non-lease components on the office equipment
leases and elected the short-term lease recognition exemption for all leases that qualify.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Discount Rate</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">To determine the present value of
minimum future lease payments for leases at January 1, 2019, the Company was required to use the rate implicit in the lease unless
the rate is not determinable then a rate of interest that it would have to pay to borrow on a collateralized basis over a similar
term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Operating leases</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Property and vehicle leases</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company determined the rate implicit
in the lease or an IBR where that rate was not determinable. The Company used country specific rates based on the country the assets
are located in.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt"><b>Property leases</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify">The Company determined that rates
ranging from 2.12% to 4.5% were a appropriate discount rates to apply to its real-estate operating leases.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify">The Company entered into new real
estate operating leases during the current period and determined an appropriate discount rate to apply to its operating leases
was 2.12%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font: 10pt Symbol">·</font></td><td style="text-align: justify"><font style="font-size: 10pt"><b>Vehicle leases</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify">The Company determined that appropriate
discount rates to apply to its vehicle operating leases ranged from 5.1% to 6.7%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b><i>Finance leases</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>Computer and office equipment
leases</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company has financed several
items of computer and office equipment through vendor financing. The discount rates for finance leases ranged from 2.5% to 4.2%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><b>Right of use assets</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Upon adoption of ASC 842, effective January 1, 2019, the
Company recorded a right of use asset for operating leases of $646,138.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Right of use assets are included in the consolidated balance
sheet are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Non-Current assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; font-size: 10pt; text-align: left">Right-of-use assets - operating leases, net of amortization</td><td style="width: 4%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">792,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Right-of-use assets – finance leases, net of amortization (included in plant and equipment)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">37,091</td><td style="font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Lease costs consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 76%; font-size: 10pt; text-align: left; padding-bottom: 1pt">Finance lease cost:</td><td style="width: 4%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 18%; font-size: 10pt; text-align: right">13,292</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Amortization of right-of-use assets</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">11,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Interest expense on lease liabilities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,402</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Operating lease cost</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">210,881</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total lease cost</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">224,173</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Other lease information:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; font-size: 10pt; text-align: left; padding-left: 0.25in">Operating cash flows from finance leases</td><td style="width: 4%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">(1,252</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Operating cash flows from operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(210,881</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Financing cash flows from finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(11,371</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Right-of-use assets obtained in exchange for new finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">14,989</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Right-of-use assets disposed of under operating leases prior to lease maturity</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(81,263</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Right-of -use assets obtained in exchange for new operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">442,281</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Weighted average remaining lease term – finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">3.46 years</font></td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Weighted average remaining lease term – operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">3.74 years</font></td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Weighted average discount rate – finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3.52</td><td style="font-size: 10pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Weighted average discount rate – operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3.42</td><td style="font-size: 10pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b>Maturity of Leases</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Finance lease liability</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The amount of future minimum lease payments under finance
leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 48%; font-size: 10pt; text-align: right">2020</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 38%; font-size: 10pt; text-align: right">13,611</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2021</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,413</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2022</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">8,431</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2023</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">6,560</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2024</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">802</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Total undiscounted minimum future lease payments</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">39,967</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Imputed interest</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,466</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Total finance lease liability</b></font></td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">37,501</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Disclosed as:</b></font></td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Current portion</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">12,476</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Non-Current portion</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">25,025</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">37,501</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Operating lease liability</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The amount of future minimum lease
payments under operating leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-size: 10pt; text-align: right">2020</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">222,497</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">2021</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">214,693</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">2022</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">180,470</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">2023</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">150,570</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">2024 and beyond</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">28,741</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">Total undiscounted minimum future lease payments</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">796,971</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Imputed interest</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(47,358</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Total operating lease liability</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">749,613</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Disclosed as:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">Current portion</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">200,866</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Non-Current portion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">548,747</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">749,613</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>8.</b></td><td style="text-align: justify"><b>Goodwill</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"><b> </b></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 56%"><font style="font-size: 10pt">Opening balance</font></td>
<td style="width: 8%"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">262,552</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">260,318</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Acquisition of Virtual Generation</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,401,608</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Impairment charge</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(775</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,234</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Closing balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,663,385</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">262,552</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Goodwill represents the excess purchase
price paid over the fair value of assets acquired, including any other identifiable intangible assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On January 30, 2019, the Company acquired
Virtual Generation Limited, as disclosed in Note 3 above. The goodwill on acquisition arose as the Proceeds paid on acquisition
exceeded the fair value of the identifiable assets less assumed liabilities and imputed deferred tax liabilities on identifiable
intangible assets by $1,401,608.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company evaluates goodwill for
impairment on an annual basis during the last month of each year and at an interim date if indications of impairment exist. Goodwill
impairment is determined by comparing the fair value of the asset to its carrying amount with an impairment being recognized only
when the fair value is less than carrying value and the impairment is deemed to be permanent in nature.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 56%"><font style="font-size: 10pt">Opening balance</font></td>
<td style="width: 8%"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">262,552</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">260,318</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Acquisition of Virtual Generation</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,401,608</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Impairment charge</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Foreign exchange movements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(775</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,234</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Closing balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,663,385</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">262,552</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 27pt"><b>9.</b></td><td style="text-align: justify"><b>Marketable Securities </b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Investments in marketable securities
consists of 2,500,000 shares of Zoompass Holdings (“Zoompass”) and is accounted for at fair value, with changes recognized
in earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt/0.05pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On December 31, 2019, the shares of
Zoompass were last quoted at $0.071 per share on the OTC market, resulting in an unrealized loss recorded to earnings related to
these securities of $97,500 and $75,000 for the years ended December 31, 2019, and 2018 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>12.</b></td><td style="text-align: justify"><b>Deferred Purchase Consideration</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">In terms of the acquisition of Virtual
Generation on January 31, 2019, disclosed in Note 3 above, the Company issued non-interest bearing promissory notes of €3,803,000
owing to both related parties and non-related parties. The value of the promissory notes payable related parties was €1,521,200
and to non-related parties was €2,281,800.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The promissory notes payable to non-related
parties are to be settled as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 2%; padding-right: 0.8pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 2%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(a)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 96%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an aggregate of €1,435,200 in cash in 23 equal and consecutive monthly instalments of €62,400 with the first such payment due and payable on the date that was one month after the Closing Date; and</font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 0.8pt"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">(b)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><font style="font-size: 10pt">an aggregate of €846,600 in shares of the Company’s common stock in 17 equal and consecutive monthly instalments of €49,800 as determined by the average of the closing prices of such shares on the last 10 trading days immediately preceding the determination date of each monthly issuance, which issuances commenced on March 1, 2019.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the terms of the Purchase
Agreement that the Company entered into with VG, the Company agreed to pay the sellers of VG an earnout payment in shares of our
common stock equal to an aggregate amount of €500,000 (approximately $561,500), if the amounts of bets made by users of the
VG platform grew by more than 5% for the year ended December 31, 2019 compared to the year ended December 31, 2018, based on the
18,449,380 tickets sold in 2019 the VG Sellers have qualified for the earnout payment. The earnout payment was considered remote
at the time of entering into the transaction and was not recorded as a component of deferred purchase consideration, accordingly
it has been expensed through the statement of operations for the year ended December 31, 2019. The amount due to the non-related
party VG sellers amounts to €300,000 (Approximately $336,810).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The future payments on the promissory
notes were discounted to present value using the Company’s average cost of funding of 10%. The discount is being amortized
over the repayment period of the promissory note using the effective interest rate method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The movement on deferred purchase
consideration consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; font-size: 10pt; text-align: left">Promissory note due to non-related parties</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">2,745,811</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Additional earnout earned</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">336,810</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Settled by the issuance of common shares</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(616,387</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Repayment in cash</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(607,555</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(56,295</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,802,384</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Present value discount on future payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Present value discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(242,089</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Amortization</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">117,192</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,793</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(120,104</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,682,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold">Disclosed as follows:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Current liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,619,349</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Long term liability</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">62,931</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,682,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; font-size: 10pt; text-align: left">Promissory note due to non-related parties</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">2,745,811</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Additional earnout earned</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">336,810</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Settled by the issuance of common shares</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(616,387</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Repayment in cash</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(607,555</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(56,295</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,802,384</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Present value discount on future payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Present value discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(242,089</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Amortization</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">117,192</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,793</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(120,104</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,682,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold">Disclosed as follows:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Current liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,619,349</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Long term liability</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">62,931</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,682,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold">Description</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Principal Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; font-size: 10pt; text-align: left">Promissory notes due to related parties</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">1,830,541</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Additional earnout earned</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">224,540</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Settled by the issuance of common shares</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(410,925</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Repayment in cash</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(328,734</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(35,992</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,279,430</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Present value discount on future payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt">Present value discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(161,393</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt">Amortization</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">78,128</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Foreign exchange movements</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,195</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(80,069</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,199,361</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold">Disclosed as follows:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Current liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,157,407</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Long term liability</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,954</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred purchase consideration, net</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,199,361</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>21.</b></td><td style="text-align: justify"><b>Income Taxes</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company is incorporated in the
United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the
Company had no U.S. taxable income for the years ended December 31, 2019 and December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company's Italian subsidiaries
are governed by the income tax laws of Italy. The corporate tax rate in Italy is 28.82% (IRES at 24% plus IRAP ordinary at 4.82%)
on income reported in the statutory financial statements after appropriate tax adjustments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company's Austrian subsidiaries
are governed by the income tax laws of Austria. The corporate tax rate in Austria is 25% on income reported in the statutory financial
statements after appropriate tax adjustments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company's Canadian subsidiary
is governed by the income tax laws of Canada and the Province of Ontario. The combined Federal and Provincial corporate tax rate
in Canada is 26.5% on income reported in the statutory financial statements after appropriate tax adjustments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company continues to evaluate
the accounting for uncertainty in tax positions at the end of each reporting period. The guidance requires companies to recognize
in their financial statements the impact of a tax position if the position is more likely than not of being sustained if the position
were to be challenged by a taxing authority. The position ascertained inherently requires judgment and estimates by management.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The reconciliation of income tax expense
at the U.S. statutory rate of 21% and 35% during 2019 and 2018, respectfully, to the Company’s effective tax rate is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 56%"><font style="font-size: 10pt">U.S. Statutory rate</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">1,822,092</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">530,472</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Items not allowed for tax purposes</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,142,776</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(716,534</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Foreign tax rate differential</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(66,163</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">394,401</font></td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font-size: 10pt">Additional foreign taxation</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: 10pt">(15,190</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Prior year over provision</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,167</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Prior year net operating loss adjustment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(917,820</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Movement in valuation allowances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(279,486</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,311,040</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Income tax expense</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(598,176</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,102,701</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company has accumulated a net
operating loss carry forward (“NOL”) of approximately $16.7 million as of December 31, 2019 in the U.S. The U.S. NOL
carry forward includes adjustments based on prior year assessments of $4.9 million due the assessment of tax losses carried forward.
This NOL may be offset against future taxable income through the year 2038. The company also has net operating loss carry forwards
in Italy, Austria and Malta of approximately €0.12 million ($0.14 million) and in Canada of approximately CDN$0.4 million
($0.32 million). The use of these losses to reduce future income taxes will depend on the generation of sufficient taxable income
prior to the expiration of the NOL. The Company periodically evaluates whether it is more likely than not that it will generate
sufficient taxable income to realize the deferred income tax asset. At the present time, management cannot presently determine
when the Company will be able to generate sufficient taxable income to realize the deferred tax asset; accordingly, a 100% valuation
allowance has been established to offset the asset.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Utilization of NOLs are subject to
limitation due to any ownership change (as defined under Section 382 of the Internal Revenue Code of 1986) which resulted in a
change in business direction. Unused limitations may be carried over to future years until the NOLs expire. Utilization of NOLs
may also be limited in any one year by alternative minimum tax rules.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Under Italian tax law, the operating
loss carryforwards available for offset against future profits can be used indefinitely. Operating loss carryforwards are only
available for offset against national income tax, up to the limit of 80% of taxable annual income. This restriction does not apply
to the operating loss incurred in the first three years of the Company's activity, which are therefore available for 100% offsetting.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Under Austrian tax law, the operating
loss carryforwards available for offset against future profits can be used indefinitely. Operating loss carryforwards are only
available for offset against national income tax, up to the limit of 75% of taxable annual income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Under Canadian tax law, the operating
loss carryforwards available for offset against future profits can be used indefinitely.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The provisions for income taxes consist
of currently payable income tax in Italy, Malta and Austria and deferred tax movements on intangible assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The provisions for income taxes are
summarized as follows: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right"><font style="font-size: 10pt">Current</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">(683,830</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">(1,102,701</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">Deferred</font></td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">85,654</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">Total</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(598,176</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,102,701</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The tax effects of temporary differences
that give rise to the Company’s net deferred tax assets and liabilities are as follows: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; width: 56%"><font style="font-size: 10pt">Working capital movements</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%">$ </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">641,089</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%">$ </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Net loss carryforward - Foreign</font></td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">119,251</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">124,407</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Net loss carryforward - US</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,505,182</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,861,629</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,265,522</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,986,036</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Less valuation allowance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,265,522</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(3,986,036</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Deferred tax assets</font></td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intangible assets</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$ </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,315,954</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$ </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,315,954</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Net loss carry forward for US
entities includes an adjustment of $917,821 based on taxation assessments which differed to the amounts originally provided for.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify">The following tax years remain
subject to examination:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 17%; text-align: justify"><font style="font-size: 10pt">USA:</font></td>
<td style="width: 83%; text-align: justify"><font style="font-size: 10pt">Three years from the date of tax return filing which is currently the 2017 to 2019 tax years</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">Italy and Austria:</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Five years from the date of filing which is currently the 2015 to 2019 tax years</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">Malta:</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Eight years from fiscal year end which is currently 2012 to 2019.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify">The Company is not currently under
examination and it has not been notified of a pending examination.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27.35pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">There are no unrecognized tax benefits.</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 56%"><font style="font-size: 10pt">U.S. Statutory rate</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">1,822,092</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">530,472</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Items not allowed for tax purposes</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,142,776</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(716,534</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Foreign tax rate differential</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(66,163</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">394,401</font></td>
<td> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font-size: 10pt">Additional foreign taxation</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: 10pt">(15,190</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Prior year over provision</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,167</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Prior year net operating loss adjustment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(917,820</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Movement in valuation allowances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(279,486</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,311,040</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Income tax expense</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(598,176</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,102,701</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right"><font style="font-size: 10pt">Current</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">(683,830</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">(1,102,701</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">Deferred</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">85,654</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-size: 10pt">Total</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(598,176</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,102,701</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; width: 56%"><font style="font-size: 10pt">Working capital movements</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%">$ </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">641,089</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%">$ </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 12%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Net loss carryforward - Foreign</font></td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">119,251</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">124,407</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Net loss carryforward - US</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,505,182</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,861,629</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">4,265,522</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">3,986,036</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">Less valuation allowance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,265,522</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(3,986,036</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Deferred tax assets</font></td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intangible assets</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$ </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,315,954</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$ </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,315,954</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt"><b>22.</b></td><td style="text-align: justify"><b>Segmental Reporting</b></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The Company has two reportable operating segments. These
segments are:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt"><b>(i)</b></font></td><td><font style="font-size: 10pt"><b>Betting establishments</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">Provider of certified betting Platform software services
to leisure betting establishments in Italy and 11 other countries and;</p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 45pt"></td><td style="width: 18pt"><font style="font-size: 10pt"><b>(ii)</b></font></td><td><font style="font-size: 10pt"><b>Betting platform software and services</b></font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 63pt">The operating of web based as well as land based leisure
betting establishments situated throughout Italy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify">The operating assets and (liabilities)
of the reportable segments are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Betting establishments</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Betting platform software and services</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>All other</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 35%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase of Non-Current assets</font></td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">202,042</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 18%; text-align: right"><font style="font-size: 10pt">5,456,358</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 8%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt"><b>5,658,400</b></font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Assets</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">6,620,800</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">470,127</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">216,948</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>7,307,875</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">12,761,177</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">6,615,905</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,183,550</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>20,560,632</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Liabilities</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(5,395,212</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(615,564</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(10,450,390</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(16,461,166</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,266,145</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,339,911</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(2,696,056</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intercompany balances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">5,461,766</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">423,926</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(5,885,692</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>—</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net asset position</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">18,182,386</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">5,554,483</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(14,935,584</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>8,801,285</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<p style="font: 1pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The segment operating results of the reportable segments
are disclosed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting establishments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting platform software and services</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">All other</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Adjustments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; font-size: 10pt; text-align: left">Net Gaming Revenue</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">35,209,477</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">373,654</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; font-weight: bold"> </td>
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-size: 10pt; font-weight: bold; text-align: right">35,583,131</td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Intercompany Service revenue</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">452,776</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,839,211</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">35,662,253</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,212,865</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">35,583,131</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Intercompany service expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,839,211</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">452,776</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(3,291,987</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Selling expenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">25,583,913</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,000,579</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">27,584,492</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 8.75pt">General and administrative expenses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,109,135</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,294,617</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,590,802</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">10,994,554</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">33,532,259</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,747,972</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">4,590,802</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">38,579,046</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">(Loss) income from operations</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,129,994</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(535,107</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(4,590,802</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(2,995,915</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 5.8pt">Other (expense) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Interest expense, net</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(190,206</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(782,240</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(972,443</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Amortization of debt discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(4,154,922</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(4,154,922</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Virtual Generation earnout</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(561,351</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(561,351</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Loss on share issuances</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(44,063</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(44,063</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Other income</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,818</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">34,747</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">149,565</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Loss on marketable securities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(97,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(97,500</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Total other (expenses) income</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,388</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,605,329</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(5,680,714</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Loss before Income Taxes</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,054,606</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(535,104</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(10,196,131</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(8,676,629</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Income tax provision</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(641,528</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(43,352</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(598,176</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 5.8pt">Net Loss</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">1,413,078</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(491,752</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(10,196,131</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(9,274,802</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify">The operating assets and (liabilities)
of the reportable segments are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Betting establishments</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Betting platform software and services</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>All other</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 40%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase of fixed assets</font></td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">10,019,807</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">167,322</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">6,856</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt"><b>10,193,985</b></font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Assets</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">7,026,752</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">62,395</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">462,216</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>7,551,363</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">12,289,853</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,562,295</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,249,970</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>15,102,118</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Liabilities</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,393,736</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(281,553</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(2,741,884</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(7,417,173</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(833,859</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,463,046</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(5,296,905</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intercompany balances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,177,319</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">223,409</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(2,400,728</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>—</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net asset position</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">16,266,329</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,566,546</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(7,893,472</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>9,939,403</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The segment operating results of the reportable segments
are disclosed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting establishments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting platform software and services</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">All other</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Adjustments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; font-size: 10pt; text-align: left">Net Gaming Revenue</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">34,433,461</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">141,636</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; font-weight: bold"> </td>
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-size: 10pt; font-weight: bold; text-align: right">34,575,097</td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Intercompany Service revenue</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">260,063</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,168,870</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,693,524</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2,310,506</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,575,097</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Intercompany service expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,168,870</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">260,063</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(2,428,933</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Selling expenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">24,142,110</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">24,142,110</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 8.75pt">General and administrative expenses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,968,280</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,360,357</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,259,525</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">10,588,162</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">31,279,260</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2,620,420</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,259,525</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,730,272</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">(Loss) income from operations</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,414,264</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(309,914</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(3,259,525</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(155,175</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 5.8pt">Other (expense) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Interest expense, net</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(25,910</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(593,799</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(619,709</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Amortization of debt discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(1,995,128</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(1,995,128</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Gain on litigation settlement</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">516,120</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">516,120</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Imputed interest on related party advances</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(761</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(761</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Loss on issuance of debt</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(196,403</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(196,403</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Mark-to-market of marketable securities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(75,000</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Total other (expenses) income</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(25,910</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,344,971</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,370,881</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Loss before Income Taxes</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,388,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(309,914</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(5,604,496</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(2,526,056</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Income tax provision</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,082,919</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(18,042</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,740</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(1,102,701</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 5.8pt">Net Loss</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">2,305,435</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(327,956</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(5,606,236</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(3,628,757</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Betting establishments</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Betting platform software and services</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>All other</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 36%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase of Non-Current assets</font></td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">202,042</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 14%; text-align: right"><font style="font-size: 10pt">5,456,358</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt"><b>5,658,400</b></font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Assets</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">6,620,800</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">470,127</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">216,948</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>7,307,875</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">12,761,177</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">6,615,905</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,183,550</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>20,560,632</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Liabilities</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(5,395,212</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(615,564</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(10,450,390</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(16,461,166</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,266,145</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(1,339,911</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(2,696,056</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intercompany balances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">5,461,766</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">423,926</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(5,885,692</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>—</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net asset position</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">18,182,386</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">5,554,483</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(14,935,584</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>8,801,285</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>December 31, 2018</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Betting establishments</b></p></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Betting platform software and services</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>All other</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; width: 40%; padding-bottom: 1pt"><font style="font-size: 10pt">Purchase of fixed assets</font></td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">10,019,807</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">167,322</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt">6,856</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 3%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; width: 10%; text-align: right"><font style="font-size: 10pt"><b>10,193,985</b></font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Assets</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">7,026,752</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">62,395</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">462,216</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>7,551,363</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current assets</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">12,289,853</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,562,295</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,249,970</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>15,102,118</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>Liabilities</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,393,736</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(281,553</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(2,741,884</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(7,417,173</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Non-Current liabilities</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(833,859</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(4,463,046</font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>(5,296,905</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">Intercompany balances</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">2,177,319</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">223,409</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(2,400,728</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>—</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net asset position</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">16,266,329</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">1,566,546</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt">(7,893,472</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt"><b>9,939,403</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting establishments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting platform software and services</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">All other</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Adjustments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; font-size: 10pt; text-align: left">Net Gaming Revenue</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">35,209,477</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">373,654</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; font-weight: bold"> </td>
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-size: 10pt; font-weight: bold; text-align: right">35,583,131</td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Intercompany Service revenue</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">452,776</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,839,211</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">35,662,253</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,212,865</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">35,583,131</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Intercompany service expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,839,211</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">452,776</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(3,291,987</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Selling expenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">25,583,913</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,000,579</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">27,584,492</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 8.75pt">General and administrative expenses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,109,135</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,294,617</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,590,802</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">10,994,554</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">33,532,259</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,747,972</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">4,590,802</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(3,291,987</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">38,579,046</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">(Loss) income from operations</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,129,994</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(535,107</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(4,590,802</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(2,995,915</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 5.8pt">Other (expense) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Interest expense, net</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(190,206</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(782,240</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(972,443</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Amortization of debt discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(4,154,922</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(4,154,922</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Virtual Generation earnout</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(561,351</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(561,351</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Loss on share issuances</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(44,063</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(44,063</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Other income</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,818</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">34,747</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">149,565</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Loss on marketable securities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(97,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(97,500</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Total other (expenses) income</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,388</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,605,329</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(5,680,714</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Loss before Income Taxes</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,054,606</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(535,104</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(10,196,131</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(8,676,629</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Income tax provision</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(641,528</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(43,352</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(598,176</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 5.8pt">Net Loss</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">1,413,078</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(491,752</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(10,196,131</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(9,274,802</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting establishments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Betting platform software and services</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">All other</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Adjustments</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; font-size: 10pt; text-align: left">Net Gaming Revenue</td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">34,433,461</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">141,636</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; font-weight: bold"> </td>
<td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-size: 10pt; font-weight: bold; text-align: right">34,575,097</td><td style="width: 1%; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Intercompany Service revenue</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">260,063</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,168,870</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,693,524</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2,310,506</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,575,097</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Intercompany service expense</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,168,870</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">260,063</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(2,428,933</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 8.75pt">Selling expenses</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">24,142,110</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">24,142,110</td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 8.75pt">General and administrative expenses</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,968,280</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,360,357</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,259,525</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">10,588,162</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">31,279,260</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2,620,420</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">3,259,525</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,428,933</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">34,730,272</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">(Loss) income from operations</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,414,264</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(309,914</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(3,259,525</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(155,175</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.8pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 5.8pt">Other (expense) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Interest expense, net</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(25,910</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(593,799</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(619,709</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Amortization of debt discount</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(1,995,128</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(1,995,128</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Gain on litigation settlement</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">516,120</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">516,120</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Imputed interest on related party advances</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(761</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(761</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.8pt">Loss on issuance of debt</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(196,403</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(196,403</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Mark-to-market of marketable securities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(75,000</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Total other (expenses) income</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(25,910</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,344,971</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,370,881</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.8pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Loss before Income Taxes</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,388,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(309,914</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(5,604,496</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold"> </td>
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right">(2,526,056</td><td style="font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.8pt">Income tax provision</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,082,919</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(18,042</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,740</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(1,102,701</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 5.8pt">Net Loss</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">2,305,435</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(327,956</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(5,606,236</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(3,628,757</td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: justify"> </p>
373654
277593
452776
260063
2839211
2168870
-3291987
-2428933
2839211
2168870
452776
260063
-3291987
-2428933
10193985
5658400
202042
10019807
5456358
167322
6856
5461766
2177319
423926
223409
-5885692
-2400728
124407
119251
3861629
3505182
3986036
4265522
3986036
4265522
641089
-1102701
-683830
85654
-1102701
-598176
530472
1822092
-1102701
-598176
1167
0.2882
0.25
0.265
0.35
0.21
16700000
315938
1089474
1089474
2856764
1246551
3946238
2651963
49830
13971
35859
2.92
354078
<table cellpadding="0" cellspacing="0" align="center" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 10pt; text-align: left">Severance liability</td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">211,734</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">168,706</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Customer deposit balance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">407,810</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">440,021</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">619,544</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">608,727</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
607555
328734
336810
224540
7080308
-6119484
2929712
2929712
427314
6524567
2585055
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Right of use assets are included in the consolidated balance
sheet are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Non-Current assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; font-size: 10pt; text-align: left">Right-of-use assets - operating leases, net of amortization</td><td style="width: 4%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">792,078</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Right-of-use assets – finance leases, net of amortization (included in plant and equipment)</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">37,091</td><td style="font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Lease costs consists of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 76%; font-size: 10pt; text-align: left; padding-bottom: 1pt">Finance lease cost:</td><td style="width: 4%; font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 18%; font-size: 10pt; text-align: right">13,292</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Amortization of right-of-use assets</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">11,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Interest expense on lease liabilities</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,402</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Operating lease cost</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">210,881</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total lease cost</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">224,173</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">Other lease information:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; font-weight: bold; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; font-size: 10pt; text-align: left; padding-left: 0.25in">Operating cash flows from finance leases</td><td style="width: 4%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">(1,252</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Operating cash flows from operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(210,881</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 0.25in">Financing cash flows from finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(11,371</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Right-of-use assets obtained in exchange for new finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">14,989</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Right-of-use assets disposed of under operating leases prior to lease maturity</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">(81,263</td><td style="font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Right-of -use assets obtained in exchange for new operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">442,281</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Weighted average remaining lease term – finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">3.46 years</font></td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Weighted average remaining lease term – operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">3.74 years</font></td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left">Weighted average discount rate – finance leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3.52</td><td style="font-size: 10pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left">Weighted average discount rate – operating leases</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3.42</td><td style="font-size: 10pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Finance lease liability</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt">The amount of future minimum lease payments under finance
leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><b> </b> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 48%; font-size: 10pt; text-align: right">2020</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 38%; font-size: 10pt; text-align: right">13,611</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2021</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,413</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2022</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">8,431</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2023</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">6,560</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2024</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">802</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Total undiscounted minimum future lease payments</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">39,967</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Imputed interest</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,466</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Total finance lease liability</b></font></td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">37,501</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; text-align: right"><font style="font-size: 10pt"><b>Disclosed as:</b></font></td><td style="font-size: 10pt; font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Current portion</font></td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">12,476</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">Non-Current portion</font></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">25,025</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">37,501</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><b><i>Operating lease liability</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The amount of future minimum lease
payments under operating leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-size: 10pt; text-align: right">2020</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">222,497</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">2021</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">214,693</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">2022</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">180,470</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">2023</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">150,570</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">2024 and beyond</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">28,741</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">Total undiscounted minimum future lease payments</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">796,971</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Imputed interest</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(47,358</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Total operating lease liability</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">749,613</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Disclosed as:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: right">Current portion</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">200,866</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: right">Non-Current portion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">548,747</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">749,613</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
646138
792078
37091
224173
210881
11890
1402
13292
-1252
81263
442281
P3Y167DT21H36M
P3Y270DT2H24M
0.0342
0.0352
42956
549000
P10Y
P10Y
P7Y
P10Y
P10Y
P10Y
P10Y
P10Y
P10Y
125000
12332996
1315954
4463046
85654
1401608
2791767
1401608
1401608
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Year ended December 31, 2018</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><font style="font-size: 10pt">Exercise price/shares at issuance</font></td>
<td style="width: 9%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4.00 – 4.60</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Common stock share price</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2.08</font></td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Risk free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.91</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Expected life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.37 years</font></td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected volatility of underlying stock</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">459</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Expected dividend rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
1315954
716534
1142776
394401
-66163
-15190
1311040
279486
0.0091
P1Y135DT1H12M
0.00
4.59
9939403
8801285
18182386
16266329
5554483
1566546
-14935584
-7893472
917821
33200
41600
2500000
0.071
25136
3
-3
7850442
6732515
Yes
13611
222497
10413
214693
8431
180470
6560
150570
802
28741
39967
796971
2466
47358
37501
749613
0
163942
2.08
3.20
-917820
4900000
7289
Six Executive Officers
VG platform grew by more than 5% for the year ended December 31, 2019 compared to the year ended December 31, 2018, based on the 18,449,380 tickets sold in 2019 the VG Sellers have qualified for the earnout payment.