# EDGAR Filing Document

**Accession Number:** 0001892492
**File Stem:** 0001493152-25-019484
**Filing Date:** 2025-10
**Character Count:** 249762
**Document Hash:** 4125e64f908191e04871a8b946aee468
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-019484.hdr.sgml**: 20251027

**ACCESSION NUMBER**: 0001493152-25-019484

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251027

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251027

**DATE AS OF CHANGE**: 20251027

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Eightco Holdings Inc.
- **CENTRAL INDEX KEY:** 0001892492
- **STANDARD INDUSTRIAL CLASSIFICATION:** SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 872755739
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41033
- **FILM NUMBER:** 251417437

**BUSINESS ADDRESS:**
- **STREET 1:** 101 LARRY HOLMES DR.
- **STREET 2:** SUITE 313
- **CITY:** EASTON
- **STATE:** PA
- **ZIP:** 18042
- **BUSINESS PHONE:** 888-765-8933

**MAIL ADDRESS:**
- **STREET 1:** 101 LARRY HOLMES DR.
- **STREET 2:** SUITE 313
- **CITY:** EASTON
- **STATE:** PA
- **ZIP:** 18042

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cryptyde, Inc.
- **DATE OF NAME CHANGE:** 20211105

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 27, 2025

**EIGHTCO HOLDINGS INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41033** | **87-2755739** |
| (State or other jurisdiction<br> of incorporation or organization) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**101 Larry Holmes Drive**

**Suite 313**

**Easton, PA 18042**

(Address of principal executive office) (Zip Code)

**(888) 765-8933**

(Registrants' telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, par value $0.001** | **ORBS** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01 Entry into a Material Definitive Agreement.**

As previously disclosed, Eightco Holdings Inc. (the "***Company***") entered into a Sales Agreement, dated September 10, 2025 (the "***Sales Agreement***") with R.F. Lafferty & Co., Inc. ("***R.F. Lafferty***"). On October 27, 2025, the Company entered into an amended and restated Sales Agreement (the "***A&R Sales Agreement***") with Cantor Fitzgerald & Co. ("***Cantor***," together with R.F. Lafferty, the "***Agents***") and R.F. Lafferty, pursuant to which Cantor was added as an additional sales agent. Pursuant to the A&R Sales Agreement, the Company, from time to time, may issue and sell to or through Cantor, acting as principal and/or the sole designated sales agent, shares (the "***ATM Shares***") of its common stock, par value $0.001 per share ("***Common Stock***") having an aggregate sales price of up to $2,700,000,000. The material terms and conditions of the Sales Agreement otherwise remain unchanged.

This description of the A&R Sales Agreement does not purport to be complete and is qualified in its entirety by reference to the A&R Sales Agreement, which is attached hereto as Exhibit 1.1 and incorporated by reference herein.

The Common Stock to be sold under the A&R Sales Agreement, if any, will be issued and sold pursuant to the Company's automatic shelf registration statement on Form S-3 (File No. 333- 290181) (the "***Registration Statement***"), which was filed with the Securities and Exchange Commission (the "***SEC***") on September 10, 2025, which included an "at the market offering" prospectus covering the offer and sale of the ATM Shares pursuant to the ATM Offering. Subsequently, on October 27, 2025, the Company filed an additional prospectus supplement to the Registration Statement with the SEC in connection with the offer and sale of the ATM Shares pursuant to the A&R Sales Agreement, which included updated disclosure under the sections entitled "Risk Factors" and "Business." Such disclosures are filed as Exhibits 99.1 and 99.2, respectively, in this Current Report on Form 8-K and are incorporated herein by reference. The information contained in Exhibits 99.1 and 99.2 supplements, and should be read together with, the information set forth in the Company's prior periodic filings with the SEC.

This Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy any shares of Company Common Stock nor shall there be any sale of shares of Company Common Stock in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

**Item 9.01 Financial Statements and Exhibits**

***(d) Exhibits.***

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 1.1 | [Amended and Restated Sales Agreement, dated as of October 27, 2025, by and among the Company, Cantor Fitzgerald & Co. and R.F. Lafferty & Co., Inc.](ex1-1.htm) |
| 99.1 | [Supplemental Risk Factors Disclosure of the Prospectus Supplement filed on October 27, 2025.](ex99-1.htm) |
| 99.2 | [Supplemental Business Section Disclosure of the Prospectus Supplement filed on October 27, 2025.](ex99-2.htm) |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Eightco Holdings Inc.** | **Eightco Holdings Inc.** |
| Dated: October 27, 2025 | By: | */s/ Brett Vroman* |
|  | Name: | Brett Vroman |
|  | Title: | Chief Financial Officer |

---

## Exhibit 1.1

**Exhibit 1.1**

**EIGHTCO HOLDINGS INC.**

Shares of Common Stock

(par value $0.001 per share)

**Controlled Equity Offering<sup>SM</sup>**

**<u>Amended and Restated Sales Agreement</u>**

October 27, 2025

Cantor Fitzgerald & Co.

110 East 59th Street

New York, NY 10022

R.F. Lafferty & Co., Inc.

40 Wall Street, Suite 3602

New York, NY 10005

Ladies and Gentlemen:

Eightco Holdings Inc., a Delaware corporation (the "**<u>Company</u>**"), confirms its agreement (this "**<u>Agreement</u>**") with Cantor Fitzgerald & Co. ("**<u>Cantor</u>**") and R.F. Lafferty & Co., Inc. (each an "**<u>Agent</u>**" and together, the "**<u>Agents</u>**"), as set forth herein. This Agreement amends and restates the terms of the Controlled Equity Offering<sup>SM</sup> Sales Agreement, dated as of September 10, 2025, by and between the Company and R.F. Lafferty & Co., Inc. (the "**<u>Prior Agreement</u>**").

1. <u>Issuance and Sale of Placement Shares</u>. The Company agrees that, from time to time during the term
 of this Agreement, on the terms and subject to the conditions set forth herein, it may issue
 and sell to or through Cantor, as principal and/or the sole designated sales agent, shares
 of common stock (the "  **<u>Placement Shares</u>**") of the Company, par value
 $0.001 per share (the "  **<u>Common Stock</u>** "); *provided*, *however*,
 that in no event shall the Company issue or sell through the Agents such number or dollar
 amount of Placement Shares, inclusive of amounts sold pursuant to the Prior Agreement, that
 would (a) exceed the number or dollar amount of shares of Common Stock registered on the
 effective Registration Statement (defined below) pursuant to which the offering is being
 made, (b) exceed the number of authorized but unissued shares of Common Stock (less shares
 of Common Stock issuable upon exercise, conversion or exchange of any outstanding securities
 of the Company or otherwise reserved from the Company's authorized capital stock),
 (c) exceed the number or dollar amount of shares of Common Stock permitted to be sold under
 Form S-3 (including General Instruction I.B.6 thereof, if applicable) or (d) exceed the number
 or dollar amount of shares of Common Stock for which the Company has filed a Prospectus Supplement
 (defined below) (the lesser of (a), (b), (c) and (d), the "  **<u>Maximum Amount</u>** ").
 Notwithstanding anything to the contrary contained herein, the parties hereto agree that
 compliance with the limitations set forth in this <u>Section 1</u> on the amount of Placement
 Shares issued and sold under this Agreement shall be the sole responsibility of the Company
 and that the Agents shall have no obligation in connection with such compliance. The offer
 and sale of Placement Shares through the Agents will be effected pursuant to the Registration
 Statement (defined below) filed by the Company and which will be declared or deemed effective
 by the Securities and Exchange Commission (the "  **<u>Commission</u>** "), although
 nothing in this Agreement shall be construed as requiring the Company to use the Registration
 Statement to issue Common Stock.

The Company will file, in accordance with the provisions of the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), and the rules and regulations thereunder (the "**<u>Securities Act Regulations</u>**"), with the Commission a registration statement on Form S-3, including a base prospectus, relating to certain securities, including the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the "**<u>Exchange Act</u>**"), and the rules and regulations thereunder. The Company has prepared a prospectus included as part of the registration statement, which prospectus relates to the Placement Shares to be issued from time to time by the Company (the "**<u>Sales Prospectus</u>**"). Except where the context otherwise requires, such registration statement, as amended by any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations, and any one or more additional effective registration statements on Form S-3 from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable (which shall be a "**<u>Prospectus Supplement</u>**"), with respect to the Placement Shares, is herein called the "**<u>Registration Statement</u>**." The base prospectus or base prospectuses (including the Sales Prospectus), including all documents incorporated therein by reference, included in the Registration Statement, as they may be supplemented, if necessary, by a Prospectus Supplement, in the form in which such prospectus or prospectuses and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with the then issued **Issuer Free Writing Prospectus**(es) (defined below), is herein called the "**<u>Prospectus</u>**."

Any reference herein to the Registration Statement, any Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus, and, in each case, any amendments and supplements thereto, shall be deemed to refer to and include the documents, if any, incorporated by reference therein (the "**<u>Incorporated Documents</u>**"), including, unless the context otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the terms "amend," "amendment" or "supplement" with respect to the Registration Statement, any Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the Prospectus Supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference. For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval system, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, "**<u>EDGAR</u>**").

2. <u>Placements</u>.
 Each time that the Company wishes and determines in its sole discretion to issue and sell
 Placement Shares hereunder (each, a "  **<u>Placement</u>** "), it will notify
 Cantor by email notice (or other method mutually agreed to by the parties) of the number
 of Placement Shares to be issued, the time period during which sales are requested to be
 made, any limitation on the number of Placement Shares that may be sold in any one day and
 any minimum price below which sales may not be made (a "  **<u>Placement Notice</u>** "),
 the form of which is attached hereto as <u>Schedule 1</u>. The Placement Notice shall originate
 from any of the individuals from the Company set forth on <u>Schedule 3</u> (with a copy
 to each of the other individuals from the Company listed on such schedule), and shall be
 addressed to each of the individuals from Cantor set forth on <u>Schedule 3</u>, as such <u>Schedule 3</u> may be amended in writing from time to time. The Placement Notice shall
 be effective unless and until (i) Cantor declines to accept the terms contained therein for
 any reason, in its sole discretion, (ii) the entire amount of the Placement Shares thereunder
 have been sold, (iii) the Company suspends or terminates the Placement Notice, or (iv) this
 Agreement has been terminated under the provisions of <u>Section 12</u>. The amount of any
 discount, commission or other compensation to be paid by the Company to Cantor in connection
 with the sale of the Placement Shares shall be calculated in accordance with the terms set
 forth in <u>Schedule 2</u>. It is expressly acknowledged and agreed that neither the Company
 nor Cantor will have any obligation whatsoever with respect to a Placement or any Placement
 Shares unless and until the Company delivers a Placement Notice to Cantor and Cantor does
 not decline such Placement Notice pursuant to the terms set forth above, and then only upon
 the terms specified therein and herein. In the event of a conflict between the terms of this
 Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control
 (unless such Placement Notice is declined, suspended or otherwise terminated in accordance
 with the terms of this Agreement).

3. <u>Sale of Placement Shares by Cantor</u>. Subject to the provisions of <u>Section 5(a)</u>, Cantor,
 for the period specified in the Placement Notice, will use its commercially reasonable efforts
 consistent with its normal trading and sales practices and applicable state and federal laws,
 rules and regulations and the rules of The Nasdaq Capital Market (the "  **<u>Exchange</u>** "),
 to sell the Placement Shares up to the amount specified in, and otherwise in accordance with
 the terms of, such Placement Notice. Cantor will provide written confirmation to the Company
 no later than the opening of the Trading Day (defined below) immediately following the Trading
 Day on which it has made sales of Placement Shares hereunder setting forth the number of
 Placement Shares sold on such day, the compensation payable by the Company to Cantor pursuant
 to <u>Section 2</u> with respect to such sales, and the Net Proceeds (defined below) payable
 to the Company, with an itemization of the deductions made by Cantor (as set forth in <u>Section 5(b)</u>) from the gross proceeds that it receives from such sales. Subject to the terms
 of the Placement Notice, Cantor may sell Placement Shares by any method permitted by law
 deemed to be an "at the market offering" as defined in Rule 415(a)(4) of the
 Securities Act Regulations. "  **<u>Trading Day</u>**" means any day on which
 the Common Stock is traded on the Exchange.

4. <u>Suspension of Sales</u>. The Company or Cantor may, upon notice to the other party in writing (including
 by email correspondence to each of the individuals of the other party set forth on <u>Schedule 3</u>, if receipt of such correspondence is actually acknowledged by any of the individuals
 to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately
 by verifiable facsimile transmission or email correspondence to each of the individuals of
 the other party set forth on <u>Schedule 3</u>), suspend any sale of Placement Shares (a
 "  **<u>Suspension</u>** "); *provided*, *however*, that such Suspension
 shall not affect or impair any party's obligations with respect to any Placement Shares
 sold hereunder prior to the receipt of such notice. While a Suspension is in effect any obligation
 under <u>Sections 7(l)</u>, <u>7(m)</u>, and <u>7(n)</u> with respect to the delivery of
 certificates, opinions, or comfort letters to the Agents, shall be waived. Each of the parties
 agrees that no such notice under this <u>Section 4</u> shall be effective against any other
 party unless it is made to one of the individuals named on <u>Schedule 3</u> hereto, as such
 Schedule may be amended from time to time. Notwithstanding any other provision of this Agreement,
 during any period in which the Company is in possession of material non-public information,
 the Company and the Agents agree that (i) no sale of Placement Shares will take place, (ii)
 the Company shall not request the sale of any Placement Shares, and (iii) the Agents shall
 not be obligated to sell or offer to sell any Placement Shares.

5. <u>Sale and Delivery to Cantor; Settlement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Sale of Placement Shares</u> *.* On the basis of the representations and warranties herein
 contained and subject to the terms and conditions herein set forth, upon Cantor's acceptance
 of the terms of a Placement Notice, and unless the sale of the Placement Shares described
 therein has been declined, suspended, or otherwise terminated in accordance with the terms
 of this Agreement, Cantor, for the period specified in the Placement Notice, will use its
 commercially reasonable efforts consistent with its normal trading and sales practices and
 applicable law and regulations to sell such Placement Shares up to the amount specified,
 and otherwise in accordance with the terms of such Placement Notice. The Company acknowledges
 and agrees that (i) there can be no assurance that Cantor will be successful in selling Placement
 Shares, (ii) Cantor will incur no liability or obligation to the Company or any other person
 or entity if it does not sell Placement Shares for any reason other than a failure by Cantor
 to use its commercially reasonable efforts consistent with its normal trading and sales practices
 and applicable law and regulations to sell such Placement Shares as required under this Agreement
 and (iii) Cantor shall be under no obligation to purchase Placement Shares on a principal
 basis pursuant to this Agreement, except as otherwise agreed by Cantor and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Settlement of Placement Shares</u> *.* Unless otherwise specified in the applicable Placement Notice,
 settlement for sales of Placement Shares will occur on the first (1st) Trading Day (or such
 earlier day as is industry practice for regular-way trading) following the date on which
 such sales are made (each, a "  **<u>Settlement Date</u>** "). Cantor shall notify
 the Company of each sale of Placement Shares no later than the opening of the Trading Day
 immediately following the Trading Day on which it has made sales of Placement Shares hereunder.
 The amount of proceeds to be delivered to the Company on a Settlement Date against receipt
 of the Placement Shares sold (the "  **<u>Net Proceeds</u>**") will be equal
 to the aggregate sales price received by Cantor, after deduction for (i) the Cantor's
 commission, discount or other compensation for such sales payable by the Company pursuant
 to <u>Section 2</u> hereof, and (ii) any transaction fees imposed by any Governmental Authority
 (defined below) in respect of such sales.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery of Placement Shares</u>. On or before each Settlement Date, the Company will, or will cause
 its transfer agent to, electronically transfer the Placement Shares being sold by crediting
 the Cantor's or its designee's account (provided Cantor shall have given the
 Company written notice of such designee at least one Trading Day prior to the Settlement
 Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System
 or by such other means of delivery as may be mutually agreed upon by the parties hereto which
 in all cases shall be freely tradable, transferable, registered shares in good deliverable
 form. On each Settlement Date, Cantor will deliver the related Net Proceeds in same day funds
 to an account designated by the Company on, or prior to, the Settlement Date. The Company
 agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation
 to deliver Placement Shares on a Settlement Date, the Company agrees that in addition to
 and in no way limiting the rights and obligations set forth in <u>Section 10(a)</u> hereto,
 it will (i) hold Cantor harmless against any loss, claim, damage, or expense (including reasonable
 legal fees and expenses), as incurred, arising out of or in connection with such default
 by the Company or its transfer agent (if applicable) and (ii) pay to Cantor any commission,
 discount, or other compensation to which it would otherwise have been entitled absent such
 default.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Denominations; Registration</u> *.* Certificates for the Placement Shares, if any, shall be in such
 denominations and registered in such names as the Agents may request in writing at least
 one full Business Day (defined below) before the applicable Settlement Date. The certificates
 for the Placement Shares, if any, will be made available by the Company for examination and
 packaging by the Agents in The City of New York not later than noon (New York time) on the
 Business Day prior to the applicable Settlement Date.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitations on Offering Size</u> *.* Under no circumstances shall the Company cause or request the
 offer or sale of any Placement Shares if, after giving effect to the sale of such Placement
 Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this Agreement
 would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement,
 the Maximum Amount and (B) the amount authorized from time to time to be issued and sold
 under this Agreement by the Company's board of directors, a duly authorized committee
 thereof or a duly authorized executive committee, and notified to Cantor in writing. Under
 no circumstances shall the Company cause or request the offer or sale of any Placement Shares
 pursuant to this Agreement at a price lower than the minimum price authorized from time to
 time by the Company's board of directors, a duly authorized committee thereof or a
 duly authorized executive committee. Further, under no circumstances shall the Company cause
 or permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement
 to exceed the Maximum Amount.

6. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to, and agrees with
 each Agent that as of the date of this Agreement and as of each Applicable Time (defined
 below):

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Registration Statement and Prospectus</u>. The Company and the transactions contemplated by this Agreement
 meet the requirements for and comply with the applicable conditions set forth in Form S-3
 (including General Instructions I.A and I.B) under the Securities Act. The Registration Statement
 has been or will be filed with the Commission and has been or will be declared or deemed
 effective by the Commission under the Securities Act prior to the issuance of any Placement
 Notices by the Company. As of each Applicable Time, the Registration Statement is effective.
 The Sales Prospectus will name the Agents as the agents in the section entitled "Plan
 of Distribution." The Company has not received, and has no notice of, any order of
 the Commission preventing or suspending the use of the Registration Statement, or threatening
 or instituting proceedings for that purpose. The Registration Statement and the offer and
 sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the
 Securities Act and comply in all material respects with said Rule. Any statutes, regulations,
 contracts or other documents that are required to be described in the Registration Statement
 or the Prospectus or to be filed as exhibits to the Registration Statement have been so described
 or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or
 supplements and all documents incorporated by reference therein that were filed with the
 Commission on or prior to the date of this Agreement have been delivered, or are available
 through EDGAR, to the Agents and their counsel. The Company has not distributed and, prior
 to the later to occur of each Settlement Date and completion of the distribution of the Placement
 Shares, will not distribute any offering material in connection with the offering or sale
 of the Placement Shares other than the Registration Statement and the Prospectus and any
 Issuer Free Writing Prospectus to which the Agents have consented. The Common Stock is registered
 pursuant to Section 12(b) of the Exchange Act and is currently listed on the Exchange under
 the trading symbol "OCTO." The Company has taken no action designed to, or likely
 to have the effect of, terminating the registration of the Common Stock under the Exchange
 Act, delisting the Common Stock from the Exchange, nor has the Company received any notification
 that the Commission or the Exchange is contemplating terminating such registration or listing.
 To the Company's knowledge, it is in compliance with all applicable listing requirements
 of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Misstatement or Omission</u>. The Registration Statement, when it became or becomes effective,
 and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus
 or amendment or supplement, conformed and will conform in all material respects with the
 requirements of the Securities Act. At each Settlement Date, the Registration Statement and
 the Prospectus, as of such date, will conform in all material respects with the requirements
 of the Securities Act. The Registration Statement, when it became or becomes effective, did
 not, and will not, contain an untrue statement of a material fact or omit to state a material
 fact required to be stated therein or necessary to make the statements therein not misleading.
 The Prospectus and any amendment and supplement thereto, on the date thereof and at each
 Applicable Time (defined below), did not or will not include an untrue statement of a material
 fact or omit to state a material fact necessary in order to make the statements therein,
 in the light of the circumstances under which they were made, not misleading. The documents
 incorporated by reference in the Prospectus or any Prospectus Supplement did not, and any
 further documents filed and incorporated by reference therein will not, when filed with the
 Commission, contain an untrue statement of a material fact or omit to state a material fact
 required to be stated in such document or necessary in order to make the statements in such
 document, in the light of the circumstances under which they were made, not misleading. The
 foregoing shall not apply to statements in, or omissions from, any such document made in
 reliance upon, and in conformity with, information furnished to the Company by the Agents
 in writing specifically for use in the preparation thereof, it being understood and agreed
 that the only such information furnished by the Agents to the Company consists of Agents'
 Information (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conformity with the Securities Act and Exchange Act</u>. The Registration Statement, the Prospectus,
 any Issuer Free Writing Prospectus or any amendment or supplement thereto, and the documents
 incorporated by reference in the Registration Statement, the Prospectus or any amendment
 or supplement thereto, when such documents were or are filed with the Commission under the
 Securities Act or the Exchange Act or became or become effective under the Securities Act,
 as the case may be, conformed or will conform in all material respects with the requirements
 of the Securities Act and the Exchange Act, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Financial Information</u>. The consolidated financial statements of the Company included or incorporated
 by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses,
 if any, together with the related notes and schedules, present fairly, in all material respects,
 the consolidated financial position of the Company and the Subsidiaries (defined below) as
 of the dates indicated and the consolidated results of operations, cash flows and changes
 in stockholders' equity of the Company for the periods specified and have been prepared
 in compliance with the requirements of the Securities Act and Exchange Act and in conformity
 with U.S. Generally Accepted Accounting Principles ("  **<u>GAAP</u>**") applied
 on a consistent basis during the periods involved; the other financial and statistical data
 with respect to the Company and the Subsidiaries (defined below) contained or incorporated
 by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses,
 if any, are accurately and fairly presented and prepared on a basis consistent with the financial
 statements and books and records of the Company; there are no financial statements (historical
 or pro forma) that are required to be included or incorporated by reference in the Registration
 Statement, or the Prospectus that are not included or incorporated by reference as required;
 the Company and the Subsidiaries (defined below) do not have any material liabilities or
 obligations, direct or contingent (including any off-balance sheet obligations), not described
 in the Registration Statement (excluding the exhibits thereto), and the Prospectus; and all
 disclosures contained or incorporated by reference in the Registration Statement, the Prospectus
 and the Issuer Free Writing Prospectuses, if any, regarding "non-GAAP financial measures"
 (as such term is defined by the rules and regulations of the Commission) comply with Regulation
 G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent
 applicable. The interactive data in eXtensible Business Reporting Language included or incorporated
 by reference in the Registration Statement and the Prospectus fairly presents the information
 called for in all material respects and has been prepared in accordance with the Commission's
 rules and guidelines applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Conformity with EDGAR Filing</u>. The Prospectus delivered to the Agents for use in connection with
 the sale of the Placement Shares pursuant to this Agreement will be identical to the versions
 of the Prospectus created to be transmitted to the Commission for filing via EDGAR, except
 to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Organization</u>.
 The Company and each of its Subsidiaries are duly organized, validly existing as a corporation
 or other business entity, as applicable, and in good standing under the laws of their respective
 jurisdictions of organization. The Company and each of its Subsidiaries are duly licensed
 or qualified as a foreign corporation for transaction of business and in good standing under
 the laws of each other jurisdiction in which their respective ownership or lease of property
 or the conduct of their respective businesses requires such license or qualification, and
 have all corporate power and authority necessary to own or hold their respective properties
 and to conduct their respective businesses as described in the Registration Statement and
 the Prospectus, except where the failure to be so qualified or in good standing or have such
 power or authority would not, individually or in the aggregate, have a material adverse effect
 or would reasonably be expected to have a material adverse effect on or affecting the assets,
 business, operations, earnings, properties, condition (financial or otherwise), prospects,
 stockholders' equity or results of operations of the Company and the Subsidiaries taken
 as a whole, or prevent or materially interfere with consummation of the transactions contemplated
 hereby (a "  **<u>Material Adverse Effect</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Subsidiaries</u>.
 The subsidiaries set forth on <u>Schedule 4</u> (collectively, the "  **<u>Subsidiaries</u>** "),
 are the Company's only significant subsidiaries (as such term is defined in Rule 1-02
 of Regulation S-X promulgated by the Commission). Except as set forth in the Registration
 Statement and in the Prospectus, the Company owns, directly or indirectly, all of the equity
 interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance,
 right of first refusal or other restriction, and all the equity interests of the Subsidiaries
 are validly issued and are fully paid, nonassessable and free of preemptive and similar rights.
 No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends
 to the Company, from making any other distribution on such Subsidiary's capital stock,
 from repaying to the Company any loans or advances to such Subsidiary from the Company or
 from transferring any of such Subsidiary's property or assets to the Company or any
 other Subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Violation or Default</u>. Neither the Company nor any of its Subsidiaries is (i) in violation
 of its charter or by-laws or similar organizational documents; (ii) in default, and no event
 has occurred that, with notice or lapse of time or both, would constitute such a default,
 in the due performance or observance of any term, covenant or condition contained in any
 indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument
 to which the Company or any of its Subsidiaries is a party or by which the Company or any
 of its Subsidiaries is bound or to which any of the property or assets of the Company or
 any of its Subsidiaries are subject; or (iii) in violation of any law or statute or any judgment,
 order, rule or regulation of any Governmental Authority, except, in the case of each of clauses
 (ii) and (iii) above, for any such violation or default that would not, individually or in
 the aggregate, have a Material Adverse Effect. To the Company's knowledge, no other
 party under any material contract or other agreement to which it or any of its Subsidiaries
 is a party is in default in any respect thereunder where such default would have a Material
 Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Material Adverse Change</u>. Subsequent to the respective dates as of which information is
 given in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses,
 if any (including any document deemed incorporated by reference therein), there has not been
 (i) any Material Adverse Effect or the occurrence of any development that the Company reasonably
 expects will result in a Material Adverse Effect, (ii) any transaction which is material
 to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability,
 direct or contingent (including any off-balance sheet obligations), incurred by the Company
 or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole,
 (iv) any material change in the capital stock or outstanding long-term indebtedness of the
 Company or any of its Subsidiaries or (v) any dividend or distribution of any kind declared,
 paid or made on the capital stock of the Company or any Subsidiary, other than in each case
 above in the ordinary course of business or as otherwise disclosed in the Registration Statement
 or the Prospectus (including any document deemed incorporated by reference therein).

&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Capitalization</u>.
 The issued and outstanding shares of capital stock of the Company have been validly issued,
 are fully paid and nonassessable and, other than as disclosed in the Registration Statement
 or the Prospectus, are not subject to any preemptive rights, rights of first refusal or similar
 rights. The Company has an authorized, issued and outstanding capitalization as set forth
 in the Registration Statement and the Prospectus as of the dates referred to therein (other
 than the grant of additional options under the Company's existing stock option plans,
 or changes in the number of outstanding shares of Common Stock of the Company due to the
 issuance of shares upon the exercise or conversion of securities exercisable for, or convertible
 into, Common Stock outstanding on the date hereof) and such authorized capital stock conforms
 to the description thereof set forth in the Registration Statement and the Prospectus. The
 description of the securities of the Company in the Registration Statement and the Prospectus
 is complete and accurate in all material respects. Except as disclosed in or contemplated
 by the Registration Statement or the Prospectus, as of the date referred to therein, the
 Company does not have outstanding any options to purchase, or any rights or warrants to subscribe
 for, or any securities or obligations convertible into, or exchangeable for, or any contracts
 or commitments to issue or sell, any shares of capital stock or other securities.

&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Authorization; Enforceability</u>. The Company has full legal right, power and authority to enter into this
 Agreement and perform the transactions contemplated hereby. This Agreement has been duly
 authorized, executed and delivered by the Company and is a legal, valid and binding agreement
 of the Company enforceable in accordance with its terms, except to the extent that enforceability
 may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
 creditors' rights generally and by general equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Authorization of Placement Shares</u>. The Placement Shares, when issued and delivered pursuant to the
 terms approved by the board of directors of the Company or a duly authorized committee thereof,
 or a duly authorized executive committee, against payment therefor as provided herein, will
 be duly and validly authorized and issued and fully paid and nonassessable, free and clear
 of any pledge, lien, encumbrance, security interest or other claim, including any statutory
 or contractual preemptive rights, resale rights, rights of first refusal or other similar
 rights, and will be registered pursuant to Section 12 of the Exchange Act. The Placement
 Shares, when issued, will conform to the description thereof set forth in or incorporated
 into the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Consents Required</u>. No consent, approval, authorization, order, registration or qualification
 of or with any Governmental Authority is required for the execution, delivery and performance
 by the Company of this Agreement, the issuance and sale by the Company of the Placement Shares,
 except for such consents, approvals, authorizations, orders and registrations or qualifications
 as may be required under applicable state securities laws or by the by-laws and rules of
 the Financial Industry Regulatory Authority ("  **<u>FINRA</u>**") or the Exchange
 in connection with the sale of the Placement Shares by the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Preferential Rights</u>. Except as set forth in the Registration Statement and the Prospectus,
 (i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the
 Securities Act (each, a "  **<u>Person</u>** "), has the right, contractual or
 otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares
 of any other capital stock or other securities of the Company, (ii) no Person has any preemptive
 rights, resale rights, rights of first refusal, rights of co-sale, or any other rights (whether
 pursuant to a "poison pill" provision or otherwise) to purchase any Common Stock
 or shares of any other capital stock or other securities of the Company, (iii) no Person
 has the right to act as an underwriter or as a financial advisor to the Company in connection
 with the offer and sale of the Common Stock, and (iv) no Person has the right, contractual
 or otherwise, to require the Company to register under the Securities Act any Common Stock
 or shares of any other capital stock or other securities of the Company, or to include any
 such shares or other securities in the Registration Statement or the offering contemplated
 thereby, whether as a result of the filing or effectiveness of the Registration Statement
 or the sale of the Placement Shares as contemplated thereby or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Independent Public Accounting Firm</u>. Stephano Slack LLC (the "  **<u>Accountant</u>** "),
 whose report on the consolidated financial statements of the Company is filed with the Commission
 as part of the Company's most recent Annual Report on Form 10-K filed with the Commission
 and incorporated by reference into the Registration Statement and the Prospectus, are and,
 during the periods covered by their report, were an independent registered public accounting
 firm within the meaning of the Securities Act and the Public Company Accounting Oversight
 Board (United States) ("  **<u>PCAOB</u>** "). To the Company's knowledge,
 the Accountant is not in violation of the auditor independence requirements of the Sarbanes-Oxley
 Act of 2002 (the "  **<u>Sarbanes-Oxley Act</u>**") with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Enforceability of Agreements</u>. All agreements between the Company and third parties expressly referenced
 in the Prospectus are legal, valid and binding obligations of the Company enforceable in
 accordance with their respective terms, except to the extent that (i) enforceability may
 be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
 creditors' rights generally and by general equitable principles and (ii) the indemnification
 provisions of certain agreements may be limited by federal or state securities laws or public
 policy considerations in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Litigation</u>. Except as set forth in the Registration Statement or the Prospectus, there
 are no actions, suits or proceedings by or before any Governmental Authority pending, nor,
 to the Company's knowledge, any audits or investigations by or before any Governmental
 Authority to which the Company or a Subsidiary is a party or to which any property of the
 Company or any of its Subsidiaries is the subject that, individually or in the aggregate,
 would have a Material Adverse Effect and, to the Company's knowledge, no such actions,
 suits, proceedings, audits or investigations are threatened or contemplated by any Governmental
 Authority or threatened by others; and (i) there are no current or pending audits or investigations,
 actions, suits or proceedings by or before any Governmental Authority that are required under
 the Securities Act to be described in the Prospectus that are not so described; and (ii)
 there are no contracts or other documents that are required under the Securities Act to be
 filed as exhibits to the Registration Statement that are not so filed.

&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Consents and Permits</u>. The Company and each Subsidiary possess such valid and current certificates,
 authorizations or permits issued by the appropriate state, federal or foreign regulatory
 agencies or bodies necessary to conduct their respective businesses, and neither the Company
 nor any Subsidiary has received, or has any reason to believe that it will receive, any notice
 of proceedings relating to the revocation or modification of, or non-compliance with, any
 such certificate, authorization or permit which, singly or in the aggregate, if the subject
 of an unfavorable decision, ruling or finding, could result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Intellectual Property</u>. Except as disclosed in the Registration Statement and the Prospectus, the Company
 and its Subsidiaries own, possess, license or have other rights to use all foreign and domestic
 patents, patent applications, trade and service marks, trade and service mark registrations,
 trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain
 names, know-how and other intellectual property (collectively, the "  **<u>Intellectual Property</u>** "), necessary for the conduct of their respective businesses as now
 conducted except to the extent that the failure to own, possess, license or otherwise hold
 adequate rights to use such Intellectual Property would not, individually or in the aggregate,
 have a Material Adverse Effect. Except as disclosed in the Registration Statement and the
 Prospectus (i) there are no rights of third parties to any such Intellectual Property owned
 by the Company and its Subsidiaries; (ii) to the Company's knowledge, there is no infringement
 by third parties of any such Intellectual Property; (iii) there is no pending or, to the
 Company's knowledge, threatened action, suit, proceeding or claim by others challenging
 the Company's and its Subsidiaries' rights in or to any such Intellectual Property,
 and the Company is unaware of any facts which could form a reasonable basis for any such
 action, suit, proceeding or claim; (iv) there is no pending or, to the Company's knowledge,
 threatened action, suit, proceeding or claim by others challenging the validity or scope
 of any such Intellectual Property; (v) there is no pending or, to the Company's knowledge,
 threatened action, suit, proceeding or claim by others that the Company and its Subsidiaries
 infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary
 rights of others; (vi) to the Company's knowledge, there is no third-party U.S. patent
 or published U.S. patent application which contains claims for which an Interference Proceeding
 (as defined in 35 U.S.C. § 135) has been commenced against any patent or patent application
 described in the Prospectus as being owned by or licensed to the Company; and (vii) the Company
 and its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual
 Property has been licensed to the Company or such Subsidiary, and all such agreements are
 in full force and effect, except, in the case of any of clauses (i)-(vii) above, for any
 such infringement by third parties or any such pending or threatened suit, action, proceeding
 or claim as would not, individually or in the aggregate, result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Market Capitalization</u>. At the time the Registration Statement was or will be originally declared
 effective, and at the time the Company's most recent Annual Report on Form 10-K was
 filed with the Commission, the Company met or will meet the then applicable requirements
 for the use of Form S-3 under the Securities Act, including, but not limited to, General
 Instruction I.B.1 of Form S-3. The Company is not a shell company (as defined in Rule 405
 under the Securities Act) and has not been a shell company for at least 12 calendar months
 previously and if it has been a shell company at any time previously, has filed current Form
 10 information (as defined in Instruction I.B.6 of Form S-3) with the Commission at least
 12 calendar months previously reflecting its status as an entity that is not a shell company.

&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>FINRA Matters</u>. The information provided to the Agents by the Company, its counsel, and its
 officers and directors for purposes of the Agents' compliance with applicable FINRA
 rules in connection with the offering of the Shares is true, complete, and correct and compliant
 with FINRA's rules.

&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Material Defaults</u>. Neither the Company nor any of the Subsidiaries has defaulted on any
 installment on indebtedness for borrowed money or on any rental on one or more long-term
 leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect.
 The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act
 since the filing of its last Annual Report on Form 10-K, indicating that it (i) has failed
 to pay any dividend or sinking fund installment on preferred stock or (ii) has defaulted
 on any installment on indebtedness for borrowed money or on any rental on one or more long-term
 leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Certain Market Activities</u>. Neither the Company, nor any of the Subsidiaries, nor any of their respective directors, officers or controlling persons
has taken, directly or indirectly, any action designed, or that has constituted or would reasonably be expected to cause or result in,
under the Exchange Act or otherwise, the stabilization or manipulation of the price of (i) Worldcoin ("  **<u>WLD</u>** ")
or (ii) any security of the Company to facilitate the sale or resale of the Placement Shares. Further, to the best of the Company's
knowledge, neither the Company nor MOZAYYX, or any of their respective affiliates, has taken any action designed, or that has constituted
or would reasonably be expected to cause and result in, stabilization or manipulation of the price of WLD.

&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Broker/Dealer Relationships</u>. Neither the Company nor any of the Subsidiaries (i) is required to register
 as a "broker" or "dealer" in accordance with the provisions of the
 Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls
 or is a "person associated with a member" or "associated person of a member"
 (within the meaning set forth in the FINRA Manual).

&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>No Reliance</u>. The Company has not relied upon the Agents or legal counsel for the Agents
 for any legal, tax or accounting advice in connection with the offering and sale of the Placement
 Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Taxes</u>.
 The Company and each of its Subsidiaries have filed all federal, state, local and foreign
 tax returns which have been required to be filed and paid all taxes shown thereon through
 the date hereof, to the extent that such taxes have become due and are not being contested
 in good faith, except where the failure to so file or pay would not have a Material Adverse
 Effect. Except as otherwise disclosed in or contemplated by the Registration Statement or
 the Prospectus, no tax deficiency has been determined adversely to the Company or any of
 its Subsidiaries which has had, or would have, individually or in the aggregate, a Material
 Adverse Effect. The Company has no knowledge of any federal, state or other governmental
 tax deficiency, penalty or assessment which has been or might be asserted or threatened against
 it which would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Title to Real and Personal Property</u>. Except as set forth in the Registration Statement or the
 Prospectus, the Company and its Subsidiaries have good and marketable title in fee simple
 to all items of real property owned by them, good and valid title to all personal property
 described in the Registration Statement or the Prospectus as being owned by them, in each
 case free and clear of all liens, encumbrances and claims, except those matters that (i)
 do not materially interfere with the use made and proposed to be made of such property by
 the Company and any of its Subsidiaries or (ii) would not, individually or in the aggregate,
 have a Material Adverse Effect. Any real or personal property described in the Registration
 Statement or the Prospectus as being leased by the Company and any of its Subsidiaries is
 held by them under valid, existing and enforceable leases, except those that (A) do not materially
 interfere with the use made or proposed to be made of such property by the Company or any
 of its Subsidiaries or (B) would not be reasonably expected, individually or in the aggregate,
 to have a Material Adverse Effect. Each of the properties of the Company and its Subsidiaries
 complies with all applicable codes, laws and regulations (including, without limitation,
 building and zoning codes, laws and regulations and laws relating to access to such properties),
 except if and to the extent disclosed in the Registration Statement or the Prospectus or
 except for such failures to comply that would not, individually or in the aggregate, reasonably
 be expected to interfere in any material respect with the use made and proposed to be made
 of such property by the Company and its Subsidiaries or otherwise have a Material Adverse
 Effect. None of the Company or its subsidiaries has received from any Governmental Authorities
 any notice of any condemnation of, or zoning change affecting, the properties of the Company
 and its Subsidiaries, and the Company knows of no such condemnation or zoning change which
 is threatened, except for such that would not reasonably be expected to interfere in any
 material respect with the use made and proposed to be made of such property by the Company
 and its Subsidiaries or otherwise have a Material Adverse Effect, individually or in the
 aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Environmental Laws</u>. Except as set forth in the Registration Statement or the Prospectus, the Company
 and its Subsidiaries (i) are in compliance with any and all applicable federal, state, local
 and foreign laws, rules, regulations, decisions and orders relating to the protection of
 human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
 or contaminants (collectively, "  **<u>Environmental Laws</u>** "); (ii) have
 received and are in compliance with all permits, licenses or other approvals required of
 them under applicable Environmental Laws to conduct their respective businesses as described
 in the Registration Statement and the Prospectus; and (iii) have not received notice of any
 actual or potential liability for the investigation or remediation of any disposal or release
 of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case
 of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to
 receive required permits, licenses, other approvals or liability as would not, individually
 or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Disclosure Controls</u>. The Company and each of its Subsidiaries maintain systems of internal accounting
 controls sufficient to provide reasonable assurance that (i) transactions are executed in
 accordance with management's general or specific authorizations; (ii) transactions
 are recorded as necessary to permit preparation of financial statements in conformity with
 GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance
 with management's general or specific authorization; and (iv) the recorded accountability
 for assets is compared with the existing assets at reasonable intervals and appropriate action
 is taken with respect to any differences. The Company's internal control over financial
 reporting is effective and the Company is not aware of any material weaknesses in its internal
 control over financial reporting (other than as set forth in the Prospectus). Since the date
 of the latest audited financial statements of the Company included in the Prospectus, there
 has been no change in the Company's internal control over financial reporting that
 has materially affected, or is reasonably likely to materially affect, the Company's
 internal control over financial reporting (other than as set forth in the Prospectus). The
 Company has established disclosure controls and procedures (as defined in Exchange Act Rules
 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to
 ensure that material information relating to the Company and each of its Subsidiaries is
 made known to the certifying officers by others within those entities, particularly during
 the period in which the Company's Annual Report on Form 10-K or Quarterly Report on
 Form 10-Q, as the case may be, is being prepared. The Company's certifying officers
 have evaluated the effectiveness of the Company's disclosure controls and procedures
 as of a date within 90 days prior to the filing date of the Annual Report on Form 10-K for
 the fiscal year most recently ended (such date, the **" <u>Evaluation Date</u>** ").
 The Company presented in its Annual Report on Form 10-K for the fiscal year most recently
 ended the conclusions of the certifying officers about the effectiveness of the disclosure
 controls and procedures based on their evaluations as of the Evaluation Date and the disclosure
 controls and procedures are effective. Since the Evaluation Date, there have been no significant
 changes in the Company's internal controls (as such term is defined in Item 307(b)
 of Regulation S-K under the Securities Act) or, to the Company's knowledge, in other
 factors that could significantly affect the Company's internal controls.

&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Sarbanes-Oxley</u>.
 There is and has been no failure on the part of the Company or any of the Company's
 directors or officers, in their capacities as such, to comply in all material respects with
 any applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated
 thereunder. Each of the principal executive officer and the principal financial officer of
 the Company (or each former principal executive officer of the Company and each former principal
 financial officer of the Company as applicable) has made all certifications required by Sections
 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements
 and other documents required to be filed by it or furnished by it to the Commission. For
 purposes of the preceding sentence, "principal executive officer" and "principal
 financial officer" shall have the meanings given to such terms in the Sarbanes-Oxley
 Act.

&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Finder's Fees</u>. Neither the Company nor any of the Subsidiaries has incurred any liability for
 any finder's fees, brokerage commissions or similar payments in connection with the
 transactions herein contemplated, except as may otherwise exist with respect to the Agents
 pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Labor Disputes</u>. No labor disturbance by or dispute with employees of the Company or any of
 its Subsidiaries exists or, to the knowledge of the Company, is threatened which would result
 in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Investment Company Act</u>. Neither the Company nor any of the Subsidiaries is or, after giving effect
 to the offering and sale of the Placement Shares and the application of the Net Proceeds,
 will be an "investment company" or an entity "controlled" by an "investment
 company," as such terms are defined in the Investment Company Act of 1940, as amended
 (the "  **<u>Investment Company Act</u>** "). The Company shall conduct its business
 in a manner so that it will not become an "investment company" subject to registration
 under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Operations</u>.
 The operations of the Company and its Subsidiaries are and have been conducted at all times
 in compliance with applicable financial record keeping and reporting requirements of the
 Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
 statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules
 and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
 administered or enforced by any Governmental Authority (collectively, the "  **<u>Money Laundering Laws</u>** "); and no action, suit or proceeding by or before any Governmental
 Authority involving the Company or any of its Subsidiaries with respect to the Money Laundering
 Laws is pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Off-Balance Sheet Arrangements</u>. There are no transactions, arrangements and other relationships between
 and/or among the Company, and/or any of its affiliates and any unconsolidated entity, including,
 but not limited to, any structured finance, special purpose or limited purpose entity (each,
 an "  **<u>Off-Balance Sheet Transaction</u>**") that could reasonably be expected
 to affect materially the Company's liquidity or the availability of or requirements
 for its capital resources, including those Off-Balance Sheet Transactions described in the
 Commission's Statement about Management's Discussion and Analysis of Financial
 Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to
 be described in the Prospectus which have not been described as required.

&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Underwriter Agreements</u>. The Company is not a party to any agreement with an agent or underwriter
 for any other "at the market" or continuous equity transaction.

&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>ERISA</u>.
 To the knowledge of the Company, each material employee benefit plan, within the meaning
 of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("  **<u>ERISA</u>** "),
 that is maintained, administered or contributed to by the Company or any of its affiliates
 for employees or former employees of the Company and any of its Subsidiaries has been maintained
 in material compliance with its terms and the requirements of any applicable statutes, orders,
 rules and regulations, including but not limited to ERISA and the Internal Revenue Code of
 1986, as amended (the "  **<u>Code</u>** "); no prohibited transaction, within
 the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would
 result in a material liability to the Company with respect to any such plan excluding transactions
 effected pursuant to a statutory or administrative exemption; and for each such plan that
 is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no "accumulated
 funding deficiency" as defined in Section 412 of the Code has been incurred, whether
 or not waived, and the fair market value of the assets of each such plan (excluding for these
 purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued
 under such plan determined using reasonable actuarial assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Forward-Looking Statements</u>. No forward-looking statement (within the meaning of Section 27A of the Securities
 Act and Section 21E of the Exchange Act) (a "  **<u>Forward-Looking Statement</u>** ")
 contained in the Registration Statement and the Prospectus has been made or reaffirmed without
 a reasonable basis or has been disclosed other than in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Agent Purchases</u>. The Company acknowledges and agrees that the Agents have informed the Company
 that each Agent may, to the extent permitted under the Securities Act and the Exchange Act,
 purchase and sell Common Stock for its own account while this Agreement is in effect, *provided*,
 that the Company shall not be deemed to have authorized or consented to any such purchases
 or sales by such Agent.

&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>Margin Rules</u>. Neither the issuance, sale and delivery of the Placement Shares nor the application
 of the proceeds thereof by the Company as described in the Registration Statement and the
 Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve
 System or any other regulation of such Board of Governors.

&nbsp;&nbsp;&nbsp;&nbsp;(qq) <u>Insurance</u>.
 The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts
 and covering such risks as the Company and each of its Subsidiaries reasonably believe are
 adequate for the conduct of their properties and as is customary for companies engaged in
 similar businesses in similar industries.

&nbsp;&nbsp;&nbsp;&nbsp;(rr) <u>No Improper Practices</u>. (i) Neither the Company nor the Subsidiaries, nor any director, officer,
 or employee of the Company or any Subsidiary nor, to the Company's knowledge, any agent,
 affiliate or other person acting on behalf of the Company or any Subsidiary has, in the past
 five years, made any unlawful contributions to any candidate for any political office (or
 failed fully to disclose any contribution in violation of applicable law) or made any contribution
 or other payment to any official of, or candidate for, any federal, state, municipal, or
 foreign office or other person charged with similar public or quasi-public duty in violation
 of any applicable law or of the character required to be disclosed in the Prospectus; (ii)
 no relationship, direct or indirect, exists between or among the Company or any Subsidiary
 or any affiliate of any of them, on the one hand, and the directors, officers and stockholders
 of the Company or any Subsidiary, on the other hand, that is required by the Securities Act
 to be described in the Registration Statement and the Prospectus that is not so described;
 (iii) no relationship, direct or indirect, exists between or among the Company or any Subsidiary
 or any affiliate of them, on the one hand, and the directors, officers, or stockholders of
 the Company or any Subsidiary, on the other hand, that is required by the rules of FINRA
 to be described in the Registration Statement and the Prospectus that is not so described;
 (iv) except as described in the Registration Statement and the Prospectus, there are no material
 outstanding loans or advances or material guarantees of indebtedness by the Company or any
 Subsidiary to or for the benefit of any of their respective officers or directors or any
 of the members of the families of any of them; and (v) the Company has not offered, or caused
 any placement agent to offer, Common Stock to any person with the intent to influence unlawfully
 (A) a customer or supplier of the Company or any Subsidiary to alter the customer's
 or supplier's level or type of business with the Company or any Subsidiary or (B) a
 trade journalist or publication to write or publish favorable information about the Company
 or any Subsidiary or any of their respective products or services, and, (vi) neither the
 Company nor any Subsidiary nor any director, officer or employee of the Company or any Subsidiary
 nor, to the Company's knowledge, any agent, affiliate or other person acting on behalf
 of the Company or any Subsidiary has (A) violated or is in violation of any applicable provision
 of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other applicable anti-bribery
 or anti-corruption law (collectively, "  **<u>Anti-Corruption Laws</u>** "),
 (B) promised, offered, provided, attempted to provide or authorized the provision of anything
 of value, directly or indirectly, to any person for the purpose of obtaining or retaining
 business, influencing any act or decision of the recipient, or securing any improper advantage;
 or (C) made any payment of funds of the Company or any Subsidiary or received or retained
 any funds in violation of any Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;(ss) <u>Status Under the Securities Act</u>. The Company was not and is not an ineligible issuer as defined
 in Rule 405 under the Securities Act at the times specified in Rules 164 and 433 under the
 Securities Act in connection with the offering of the Placement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(tt) <u>No Misstatement or Omission in an Issuer Free Writing Prospectus</u>. Each Issuer Free Writing
 Prospectus, as of its issue date and as of each Applicable Time (as defined in <u>Section 23</u> below), did not, does not and will not include any information that conflicted, conflicts
 or will conflict with the information contained in the Registration Statement or the Prospectus,
 including any incorporated document deemed to be a part thereof that has not been superseded
 or modified. The foregoing sentence does not apply to statements in or omissions from any
 Issuer Free Writing Prospectus based upon and in conformity with written information furnished
 to the Company by the Agents specifically for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;(uu) <u>No Conflicts</u>. Neither the execution of this Agreement, nor the issuance, offering or sale
 of the Placement Shares, nor the consummation of any of the transactions contemplated herein
 and therein, nor the compliance by the Company with the terms and provisions hereof and thereof
 will conflict with, or will result in a breach of, any of the terms and provisions of, or
 has constituted or will constitute a default under, or has resulted in or will result in
 the creation or imposition of any lien, charge or encumbrance upon any property or assets
 of the Company pursuant to the terms of any contract or other agreement to which the Company
 may be bound or to which any of the property or assets of the Company is subject, except
 (i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts,
 breaches and defaults that would not have a Material Adverse Effect; nor will such action
 result (x) in any violation of the provisions of the organizational or governing documents
 of the Company, or (y) in any material violation of the provisions of any statute or any
 order, rule or regulation applicable to the Company or of any Governmental Authority having
 jurisdiction over the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(vv) <u>Sanctions</u>.
 (i) The Entity represents that, neither the Company nor any of its Subsidiaries (collectively,
 the "  **<u>Entity</u>**") or any director, officer, employee, agent, affiliate
 or representative of the Company, is a government, individual, or entity (in this paragraph
 (vv), "  **<u>Person</u>**") that is, or is owned or controlled by a Person
 that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control ("**<u>OFAC</u>**"), the United Nations Security Council, the European Union, His Majesty's Treasury, or other relevant sanctions authorities, including, without limitation, designation on OFAC's Specially Designated Nationals and Blocked Persons List or OFAC's Foreign Sanctions Evaders List (as amended, collectively, "**<u>Sanctions</u>**"), nor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) located, organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings with that country or territory (including, without limitation, Cuba, Iran, North Korea, Syria, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic and the Crimea Region of the Ukraine) (the "**Sanctioned Countries**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) The Company represents and covenants that the Entity will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions or is a Sanctioned Country; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) The Company represents and covenants that, except as detailed in the Registration Statement and the Prospectus, since April 24, 2019, the Entity has not engaged in, is not now engaging in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions or is or was a Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;(ww) <u>Stock Transfer Taxes</u>. On each Settlement Date, all stock transfer or other taxes (other than
 income taxes) which are required to be paid in connection with the sale and transfer of the
 Placement Shares to be sold hereunder will be, or will have been, fully paid or provided
 for by the Company and all laws imposing such taxes will be or will have been fully complied
 with.

&nbsp;&nbsp;&nbsp;&nbsp;(xx) <u>Compliance with Laws</u>. The Company and each of its Subsidiaries are in compliance with all applicable
 laws, regulations and statutes (including all Environmental Laws and regulations) in the
 jurisdictions in which it carries on business; the Company has not received a notice of non-compliance,
 nor knows of, nor has reasonable grounds to know of, any facts that could give rise to a
 notice of non-compliance with any such laws, regulations and statutes, and is not aware of
 any pending change or contemplated change to any such applicable law or regulation or governmental
 position; in each case that would have a Material Adverse Effect on the business of the Company
 or the business or legal environment under which the Company operates.

&nbsp;&nbsp;&nbsp;&nbsp;(yy) <u>Statistical and Market-Related Data</u>. The statistical, demographic and market-related data included
 in the Registration Statement and Prospectus are based on or derived from sources that the
 Company believes to be reliable and accurate or represent the Company's good faith
 estimates that are made on the basis of data derived from such sources.

&nbsp;&nbsp;&nbsp;&nbsp;(zz) <u>Cybersecurity</u>.
 The Company and its subsidiaries' information technology assets and equipment, computers,
 systems, networks, hardware, software, websites, applications, and databases (collectively,
 "  **<u>IT Systems</u>**") are adequate for, and operate and perform in all
 material respects as required in connection with the operation of the business of the Company
 as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses,
 time bombs, malware and other corruptants. The Company and its subsidiaries have implemented
 and maintained commercially reasonable physical, technical and administrative controls, policies,
 procedures, and safeguards to maintain and protect their material confidential information
 and the integrity, continuous operation, redundancy and security of all IT Systems and data,
 including all "Personal Data" (defined below) and all sensitive, confidential
 or regulated data ("  **<u>Confidential Data</u>**") used in connection with
 their businesses. "Personal Data" means (i) a natural person's name, street
 address, telephone number, e-mail address, photograph, social security number or tax identification
 number, driver's license number, passport number, credit card number, bank information,
 or customer or account number; (ii) any information which would qualify as "personally
 identifying information" under the Federal Trade Commission Act, as amended; (iii)
 "personal data" as defined by the European Union General Data Protection Regulation
 ("  **<u>GDPR</u>**") (EU 2016/679); (iv) any information which would qualify
 as "protected health information" under the Health Insurance Portability and
 Accountability Act of 1996, as amended by the Health Information Technology for Economic
 and Clinical Health Act (collectively, "  **<u>HIPAA</u>** "); (v) any "personal
 information" as defined by the California Consumer Privacy Act ("  **<u>CCPA</u>** ");
 and (vi) any other piece of information that allows the identification of such natural person,
 or his or her family, or permits the collection or analysis of any data related to an identified
 person's health or sexual orientation. There have been no breaches, violations, outages
 or unauthorized uses of or accesses to same, except for those that have been remedied without
 material cost or liability or the duty to notify any other person, nor any incidents under
 internal review or investigations relating to the same. The Company and its subsidiaries
 are presently in material compliance with all applicable laws or statutes and all judgments,
 orders, rules and regulations of any court or arbitrator or governmental or regulatory authority,
 internal policies and contractual obligations relating to the privacy and security of IT
 Systems, Confidential Data, and Personal Data and to the protection of such IT Systems, Confidential
 Data, and Personal Data from unauthorized use, access, misappropriation or modification.

&nbsp;&nbsp;&nbsp;&nbsp;(aaa) <u>Compliance with Data Privacy Laws</u>. The Company and its subsidiaries are, and at all prior times
 were, in material compliance with all applicable state and federal data privacy and security
 laws and regulations, including without limitation HIPAA, CCPA, and GDPR (collectively, the
 "  **<u>Privacy Laws</u>** "). To ensure compliance with the Privacy Laws, the
 Company has in place, complies with, and takes appropriate steps to ensure compliance in
 all material respects with their policies and procedures relating to data privacy and security
 and the collection, storage, use, processing, disclosure, handling, and analysis of Personal
 Data and Confidential Data (the "  **<u>Policies</u>** "). The Company has at
 all times made all disclosures to users or customers required by applicable laws and regulatory
 rules or requirements, and none of such disclosures made or contained in any Policy have
 been inaccurate or in violation of any applicable laws and regulatory rules or requirements
 in any material respect. The Company further certifies that neither it nor any subsidiary:
 (i) has received notice of any actual or potential liability under or relating to, or actual
 or potential violation of, any of the Privacy Laws, and has no knowledge of any event or
 condition that would reasonably be expected to result in any such notice; (ii) is currently
 conducting or paying for, in whole or in part, any investigation, remediation, or other corrective
 action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement
 that imposes any obligation or liability under any Privacy Law.

&nbsp;&nbsp;&nbsp;&nbsp;(bbb) <u>Emerging Growth Company Status</u>. From the time of the initial filing of the Company's first
 registration statement with the Commission through the date hereof, the Company has been
 and is an "emerging growth company," as defined in Section 2(a) of the Securities
 Act (an "  **<u>Emerging Growth Company</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;(ccc) <u>Smaller Reporting Company</u>. As of the time of filing of the Registration Statement, the Company
 was a "smaller reporting company," as defined in Rule 12b-2 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;(ddd) <u>Loans to Directors or Officers</u>. There are no outstanding loans, advances (except normal advances
 for business expenses in the ordinary course of business) or guarantees or indebtedness by
 the Company or its Subsidiaries to or for the benefit of any of the officers or directors
 of the Company, its Subsidiaries or any of their respective family members, except as disclosed
 in the Registration Statement and the Prospectus.

Any certificate signed by an officer of the Company and delivered to the Agents or to counsel for the Agents pursuant to or in connection with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the Agents as to the matters set forth therein.

7. <u>Covenants of the Company</u>. The Company covenants and agrees with each Agent that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Registration Statement Amendments</u>. After the date of this Agreement and during any period in which
 a Prospectus relating to any Placement Shares is required to be delivered by the Agents under
 the Securities Act (including in circumstances where such requirement may be satisfied pursuant
 to Rule 172 under the Securities Act or similar rule), (i) the Company will notify the Agents
 promptly of the time when any subsequent amendment to the Registration Statement, other than
 documents incorporated by reference, has been filed with the Commission and/or has become
 effective or any subsequent supplement to the Prospectus has been filed and of any request
 by the Commission for any amendment or supplement to the Registration Statement or the Prospectus
 or for additional information, (ii) the Company will prepare and file with the Commission,
 promptly upon the Agents' request, any amendments or supplements to the Registration
 Statement or the Prospectus that, in the Agents' reasonable opinion, may be necessary
 or advisable in connection with the distribution of the Placement Shares by the Agents (*provided*, *however*, that the failure of the Agents to make such request shall not relieve the
 Company of any obligation or liability hereunder, or affect the Agents' right to rely
 on the representations and warranties made by the Company in this Agreement and *provided*, *further*, that the only remedy the Agents shall have with respect to the failure to
 make such filing shall be to cease making sales under this Agreement until such amendment
 or supplement is filed); (iii) the Company will not file any amendment or supplement to the
 Registration Statement or the Prospectus relating to the Placement Shares or a security convertible
 into the Placement Shares unless a copy thereof has been submitted to the Agents within a
 reasonable period of time before the filing and the Agents have not objected thereto (*provided*, *however*, that the failure of the Agents to make such objection shall not relieve the
 Company of any obligation or liability hereunder, or affect the Agents' right to rely
 on the representations and warranties made by the Company in this Agreement and *provided*, *further*, that the only remedy the Agents shall have with respect to the failure by
 the Company to obtain such consent shall be to cease making sales under this Agreement) and
 the Company will furnish to the Agents at the time of filing thereof a copy of any document
 that upon filing is deemed to be incorporated by reference into the Registration Statement
 or the Prospectus, except for those documents available via EDGAR; and (iv) the Company will
 cause each amendment or supplement to the Prospectus to be filed with the Commission as required
 pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case
 of any document to be incorporated therein by reference, to be filed with the Commission
 as required pursuant to the Exchange Act, within the time period prescribed (the determination
 to file or not file any amendment or supplement with the Commission under this <u>Section 7(a)</u>, based on the Company's reasonable opinion or reasonable objections, shall
 be made exclusively by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Commission Stop Orders</u>. The Company will advise the Agents, promptly after it receives
 notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission
 of any stop order suspending the effectiveness of the Registration Statement, of the suspension
 of the qualification of the Placement Shares for offering or sale in any jurisdiction, or
 of the initiation or threatening of any proceeding for any such purpose; and it will promptly
 use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain
 its withdrawal if such a stop order should be issued. The Company will advise the Agents
 promptly after it receives any request by the Commission for any amendments to the Registration
 Statement or any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus
 or for additional information related to the offering of the Placement Shares or for additional
 information related to the Registration Statement, the Prospectus or any Issuer Free Writing
 Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery of Prospectus; Subsequent Changes</u>. During any period in which a Prospectus relating to
 the Placement Shares is required to be delivered by the Agents under the Securities Act with
 respect to the offer and sale of the Placement Shares, (including in circumstances where
 such requirement may be satisfied pursuant to Rule 172 under the Securities Act or similar
 rule), the Company will comply with all requirements imposed upon it by the Securities Act,
 as from time to time in force, and to file on or before their respective due dates all reports
 and any definitive proxy or information statements required to be filed by the Company with
 the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or
 under the Exchange Act. If the Company has omitted any information from the Registration
 Statement pursuant to Rule 430B under the Securities Act, it will use its best efforts to
 comply with the provisions of and make all requisite filings with the Commission pursuant
 to said Rule 430B and to notify the Agents promptly of all such filings. If during such period
 (i) any event occurs as a result of which the Prospectus as then amended or supplemented
 would include an untrue statement of a material fact or omit to state a material fact necessary
 to make the statements therein, in the light of the circumstances then existing, not misleading,
 or (ii) for any other reason it shall be necessary during such same period to amend or supplement
 the Prospectus, to file any post-effective amendment to the Registration Statement or to
 file under the Exchange Act any document incorporated by reference in the Prospectus in order
 to comply with the Securities Act or the Exchange Act, the Company will promptly notify the
 Agents to suspend the offering of Placement Shares during such period and the Company will
 promptly amend or supplement the Registration Statement or the Prospectus (at the expense
 of the Company) so as to correct such statement or omission or effect such compliance and
 to prepare and furnish without charge to the Agents and to any dealer in securities as many
 written and electronic copies as the Agents may from time to time reasonably request of an
 amended Prospectus or a supplement to the Prospectus which will correct such statement or
 omission or effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Listing of Placement Shares</u>. Prior to the date of the first Placement Notice, the Company will
 use its reasonable best efforts to cause the Placement Shares to be listed on the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Delivery of Registration Statement and Prospectus</u>. The Company will furnish to the Agents and
 their counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus
 (including all documents incorporated by reference therein) and all amendments and supplements
 to the Registration Statement or the Prospectus that are filed with the Commission during
 any period in which a Prospectus relating to the Placement Shares is required to be delivered
 under the Securities Act (including all documents filed with the Commission during such period
 that are deemed to be incorporated by reference therein), in each case as soon as reasonably
 practicable and in such quantities as the Agents may from time to time reasonably request
 and, at the Agents' request, will also furnish copies of the Prospectus to each exchange
 or market on which sales of the Placement Shares may be made; *provided*, *however*,
 that the Company shall not be required to furnish any document (other than the Prospectus)
 to the Agents to the extent such document is available on EDGAR.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Earning Statement</u>. The Company will make generally available to its security holders as soon
 as practicable, but in any event not later than 15 months after the end of the Company's
 current fiscal quarter, an earning statement covering a 12-month period that satisfies the
 provisions of Section 11(a) and Rule 158 of the Securities Act (except to the extent posted
 on EDGAR).

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Use of Proceeds</u>. The Company will use the Net Proceeds as described in the Prospectus in
 the section entitled "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notice of Other Sales</u>. Without the prior written consent of the Agents, the Company will not,
 directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
 otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to
 this Agreement) or securities convertible into or exchangeable for Common Stock, warrants
 or any rights to purchase or acquire, Common Stock during the period beginning on the fifth
 (5<sup>th</sup>) Trading Day immediately prior to the date on which any Placement Notice
 is delivered to the Agents hereunder and ending on the fifth (5<sup>th</sup>) Trading Day
 immediately following the final Settlement Date with respect to Placement Shares sold pursuant
 to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior
 to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension
 or termination); and will not directly or indirectly in any other "at the market"
 or continuous equity transaction offer to sell, sell, contract to sell, grant any option
 to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered
 pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock,
 warrants or any rights to purchase or acquire, Common Stock prior to the sixtieth (60<sup>th</sup>)
 day immediately following the termination of this Agreement; *provided*, *however*,
 that such restrictions will not be required in connection with the Company's issuance
 or sale of (i) Common Stock, options to purchase Common Stock or Common Stock issuable upon
 the exercise of options, pursuant to any employee or director stock option or benefits plan,
 stock ownership plan or dividend reinvestment plan (but not Common Stock subject to a waiver
 to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect
 or hereafter implemented, (ii) Common Stock issuable upon conversion of securities or the
 exercise of warrants, options or other rights in effect or outstanding, and disclosed in
 filings by the Company available on EDGAR or otherwise in writing to the Agents and (iii)
 Common Stock or securities convertible into or exchangeable for shares of Common Stock as
 consideration for mergers, acquisitions, other business combinations or strategic alliances
 occurring after the date of this Agreement which are not issued for capital raising purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Change of Circumstances</u>. The Company will, at any time during the pendency of a Placement Notice,
 advise the Agents promptly after it shall have received notice or obtained knowledge thereof,
 of any information or fact that would alter or affect in any material respect any opinion,
 certificate, letter or other document required to be provided to the Agents pursuant to this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Due Diligence Cooperation</u>. The Company will cooperate with any reasonable due diligence review
 conducted by the Agents or their representatives in connection with the transactions contemplated
 hereby, including, without limitation, providing information and making available documents
 and senior corporate officers, during regular business hours and at the Company's principal
 offices, as the Agents may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Required Filings Relating to Placement of Placement Shares</u>. The Company shall disclose, in its
 Quarterly Reports on Form 10-Q and in its Annual Report on Form 10-K to be filed by the Company
 with the Commission from time to time, the number of the Placement Shares sold through the
 Agents under this Agreement, and the net proceeds to the Company from the sale of the Placement
 Shares pursuant to this Agreement during the relevant quarter or, in the case of an Annual
 Report on Form 10-K, during the fiscal year covered by such Annual Report and the fourth
 quarter of such fiscal year. The Company agrees that on such dates as the Securities Act
 shall require, the Company will (i) file a prospectus supplement with the Commission under
 the applicable paragraph of Rule 424(b) under the Securities Act (each and every filing date
 under Rule 424(b), a "  **<u>Filing Date</u>** "), which prospectus supplement
 will set forth, within the relevant period, the amount of Placement Shares sold through the
 Agents, the Net Proceeds to the Company and the compensation payable by the Company to the
 Agents with respect to such Placement Shares, and (ii) deliver such number of copies of each
 such prospectus supplement to each exchange or market on which such sales were effected as
 may be required by the rules or regulations of such exchange or market.

&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Representation Dates; Certificate</u>. (1) Prior to the date of the first Placement Notice and (2) each
 time the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) files the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus supplement relating solely to an offering of securities other than the Placement Shares) the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating to the Placement Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) files an Annual Report on Form 10-K under the Exchange Act (including any Annual Report on Form 10-K/A containing amended or restated financial information or a material amendment to the previously filed Annual Report on Form 10-K);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) files its Quarterly Reports on Form 10-Q under the Exchange Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) files a Current Report on Form 8-K containing amended financial information (other than information "furnished" pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a "**<u>Representation Date</u>**");

the Company shall furnish the Agents (but in the case of clause (iv) above only if the Agents reasonably determine that the information contained in such Current Report on Form 8-K is material) with a certificate dated the Representation Date, in the form and substance satisfactory to the Agents and their counsel, substantially similar to the form previously provided to the Agents and their counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as amended or supplemented. The requirement to provide a certificate under this <u>Section 7(l)</u> shall be waived for any Representation Date occurring at a time a Suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers instructions for the sale of Placement Shares hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when a Suspension was in effect and did not provide the Agents with a certificate under this <u>Section 7(l)</u>, then before the Company delivers the instructions for the sale of Placement Shares or the Agents sell any Placement Shares pursuant to such instructions, the Company shall provide the Agents with a certificate in conformity with this <u>Section 7(l)</u> dated as of the date that the instructions for the sale of Placement Shares are issued.

&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Legal Opinion</u>. (1) Prior to the date of the first Placement Notice and (2) within five (5)
 Trading Days of each Representation Date with respect to which the Company is obligated to
 deliver a certificate pursuant to <u>Section 7(l)</u> for which no Suspension or waiver is
 applicable and excluding the date of this Agreement, the Company shall cause to be furnished
 to the Agents a written opinion and negative assurance letter of Winston & Strawn LLP
 ("  **<u>Company Counsel</u>** "), in form and substance reasonably satisfactory
 to the Agents and their counsel; *provided*, that in lieu of such opinions or negative
 assurance letters for subsequent periodic filings under the Exchange Act, counsel may furnish
 the Agents with a letter (a "  **<u>Reliance Letter</u>**") to the effect that
 the Agents may rely on a prior opinion or negative assurance letter delivered under this <u>Section 7(m)</u> to the same extent as if it were dated the date of such letter (except
 that statements in such prior opinion or negative assurance letter, as the case may be, shall
 be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented
 as of the date of the Reliance Letter).

&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Comfort Letter</u>. (1) Prior to the date of the first Placement Notice and (2) within five (5) Trading
 Days of each Representation Date with respect to which the Company is obligated to deliver
 a certificate pursuant to <u>Section 7(l)</u> for which no waiver is applicable and excluding
 the date of this Agreement, the Company shall cause the Accountant (and any other independent
 accountant whose report is included in or incorporated by reference into the Registration
 Statement or the Prospectus) to furnish the Agents letters (the "  **<u>Comfort Letters</u>** "),
 dated the date the Comfort Letter is delivered, which shall meet the requirements set forth
 in this <u>Section 7(n)</u>; *provided*, that if requested by the Agents, the Company
 shall cause a Comfort Letter to be furnished to the Agents within ten (10) Trading Days after
 the date of occurrence of any material transaction or event requiring the filing of a Current
 Report on Form 8-K containing financial information (including the restatement of the Company's
 financial statements). The Comfort Letter from the Accountant (and any other independent
 accountant whose report is included in or incorporated by reference into the Registration
 Statement or the Prospectus) shall be in a form and substance satisfactory to the Agents,
 (i) confirming that they are an independent registered public accounting firm within the
 meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions
 and findings of such firm with respect to the financial information and other matters ordinarily
 covered by accountants' "comfort letters" to underwriters in connection
 with registered public offerings (the first such letter, the "  **<u>Initial Comfort Letter</u>**") and (iii) updating the Initial Comfort Letter with any information
 that would have been included in the Initial Comfort Letter had it been given on such date
 and modified as necessary to relate to the Registration Statement and the Prospectus, as
 amended and supplemented to the date of such letter.

&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Market Activities; Compliance with Regulation M</u>. The Company will not, directly or indirectly,
 (i) take any action designed to cause or result in, or that constitutes or would reasonably
 be expected to constitute, the stabilization or manipulation of the price of any security
 of the Company to facilitate the sale or resale of Common Stock or (ii) sell, bid for, or
 purchase Common Stock in violation of Regulation M, or pay anyone any compensation for soliciting
 purchases of the Placement Shares other than the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Investment Company Act</u>. The Company will conduct its affairs in such a manner so as to reasonably
 ensure that neither it nor any of its Subsidiaries will be or become, at any time prior to
 the termination of this Agreement, required to register as an "investment company,"
 as such term is defined in the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Offer to Sell</u>. Other than an Issuer Free Writing Prospectus approved in advance by the
 Company and the Agents in their capacity as agents hereunder, neither of the Agents nor the
 Company (including its agents and representatives, other than the Agents in their capacity
 as such) will make, use, prepare, authorize, approve or refer to any written communication
 (as defined in Rule 405 under the Securities Act), required to be filed with the Commission,
 that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Blue Sky and Other Qualifications</u> *.* The Company will use its commercially reasonable
 efforts, in cooperation with the Agents, to qualify the Placement Shares for offering and
 sale, or to obtain an exemption for the Placement Shares to be offered and sold, under the
 applicable securities laws of such states and other jurisdictions (domestic or foreign) as
 the Agents may designate and to maintain such qualifications and exemptions in effect for
 so long as required for the distribution of the Placement Shares (but in no event for less
 than one year from the date of this Agreement); *provided*, *however*, that the
 Company shall not be obligated to file any general consent to service of process or to qualify
 as a foreign corporation or as a dealer in securities in any jurisdiction in which it is
 not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction
 in which it is not otherwise so subject. In each jurisdiction in which the Placement Shares
 have been so qualified or exempt, the Company will file such statements and reports as may
 be required by the laws of such jurisdiction to continue such qualification or exemption,
 as the case may be, in effect for so long as required for the distribution of the Placement
 Shares (but in no event for less than one year from the date of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Sarbanes-Oxley Act</u>. The Company and the Subsidiaries will maintain and keep accurate books and records
 reflecting their assets and maintain internal accounting controls in a manner designed to
 provide reasonable assurance regarding the reliability of financial reporting and the preparation
 of financial statements for external purposes in accordance with GAAP and including those
 policies and procedures that (i) pertain to the maintenance of records that in reasonable
 detail accurately and fairly reflect the transactions and dispositions of the assets of the
 Company, (ii) provide reasonable assurance that transactions are recorded as necessary to
 permit the preparation of the Company's consolidated financial statements in accordance
 with GAAP, (iii) that receipts and expenditures of the Company are being made only in accordance
 with management's and the Company's directors' authorization, and (iv)
 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
 use or disposition of the Company's assets that could have a material effect on its
 financial statements. The Company and the Subsidiaries will maintain such controls and other
 procedures, including, without limitation, those required by Sections 302 and 906 of the
 Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure
 that information required to be disclosed by the Company in the reports that it files or
 submits under the Exchange Act is recorded, processed, summarized and reported, within the
 time periods specified in the Commission's rules and forms, including, without limitation,
 controls and procedures designed to ensure that information required to be disclosed by the
 Company in the reports that it files or submits under the Exchange Act is accumulated and
 communicated to the Company's management, including its principal executive officer
 and principal financial officer, or persons performing similar functions, as appropriate
 to allow timely decisions regarding required disclosure and to ensure that material information
 relating to the Company or the Subsidiaries is made known to them by others within those
 entities, particularly during the period in which such periodic reports are being prepared.

&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Secretary's Certificate; Further Documentation</u>. Prior to the date of the first Placement Notice,
 the Company shall deliver to the Agents a certificate of the Secretary of the Company and
 attested to by an executive officer of the Company, dated as of such date, certifying as
 to (i) the Certificate of Incorporation of the Company, as amended, (ii) the Bylaws of the
 Company, (iii) the resolutions of the Board of Directors of the Company authorizing the execution,
 delivery and performance of this Agreement and the issuance of the Placement Shares and (iv)
 the incumbency of the officers duly authorized to execute this Agreement and the other documents
 contemplated by this Agreement. Within five (5) Trading Days of each Representation Date,
 the Company shall have furnished to the Agents such further information, certificates and
 documents as the Agents may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Emerging Growth Company Status</u>. The Company will promptly notify the Agent if the Company ceases
 to be an Emerging Growth Company at any time during the term of this Agreement.

8. <u>Payment of Expenses</u>.
The Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i) the preparation
and filing of the Registration Statement, including any fees required by the Commission, and the printing or electronic delivery of the
Prospectus as originally filed and of each amendment and supplement thereto, in such number as the Agents shall deem necessary, (ii)
the printing and delivery to the Agents of this Agreement and such other documents as may be required in connection with the offering,
purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the certificates, if any,
for the Placement Shares to the Agents, including any stock or other transfer taxes and any capital duties, stamp duties or other duties
or taxes payable upon the sale, issuance or delivery of the Placement Shares to the Agents, (iv) the fees and disbursements of the counsel,
accountants and other advisors to the Company, (v) the fees and expenses of the Agents including but not limited to the fees and expenses
of the counsel to the Agents, payable upon the execution of this Agreement, (a) in an amount not to exceed $175,000 in connection with
the execution of this Agreement, (b) in an amount not to exceed $25,000 per calendar quarter thereafter payable in connection with each
Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to <u>Section 7(l)</u> for which
no waiver is applicable and excluding the date of this Agreement, and (c) in an amount not to exceed $40,000 for each program "refresh"
(filing of a new registration statement, prospectus or prospectus supplement relating to the Placement Shares and/or an amendment of
this Agreement) executed pursuant to this Agreement, (vi) the qualification or exemption of the Placement Shares under state securities
laws in accordance with the provisions of <u>Section 7(r)</u> hereof, including filing fees, but excluding fees of the Agents'
counsel, (vii) the printing and delivery to the Agents of copies of any Permitted Issuer Free Writing Prospectus and the Prospectus and
any amendments or supplements thereto in such number as the Agents shall deem necessary, (viii) the preparation, printing and delivery
to the Agents of copies of the blue sky survey, (ix) the fees and expenses of the transfer agent and registrar for the Common Stock,
(x) the filing and other fees incident to any review by FINRA of the terms of the sale of the Placement Shares including the fees of
the Agents' counsel (subject to the cap, set forth in clause (v) above), and (xi) the fees and expenses incurred in connection
with the listing of the Placement Shares on the Exchange. The Company agrees to pay the fees and expenses of counsel to the Agents set
forth in clause (v) above by wire transfer of immediately available funds directly to such counsel upon presentation of an invoice containing
the requisite payment information prepared by such counsel, and such counsel shall be a third-party beneficiary of the expense reimbursement
obligations set forth in this <u>Section 8</u>.

9. <u>Conditions to the Agents' Obligations</u>. The obligations of the Agents hereunder with respect
 to a Placement will be subject to the continuing accuracy and completeness of the representations
 and warranties made by the Company herein, to the due performance by the Company of its obligations
 hereunder, to the completion by the Agents of a due diligence review satisfactory to it in
 its reasonable judgment, and to the continuing satisfaction (or waiver by the Agents in their
 sole discretion) of the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Registration Statement Effective</u>. The Registration Statement shall have become effective and shall
 be available for the (i) resale of all Placement Shares issued to the Agents and not yet
 sold by the Agents and (ii) sale of all Placement Shares contemplated to be issued by any
 Placement Notice.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Material Notices</u>. None of the following events shall have occurred and be continuing:
 (i) receipt by the Company of any request for additional information from the Commission
 or any other federal or state Governmental Authority during the period of effectiveness of
 the Registration Statement, the response to which would require any post-effective amendments
 or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the
 Commission or any other federal or state Governmental Authority of any stop order suspending
 the effectiveness of the Registration Statement or the initiation of any proceedings for
 that purpose; (iii) receipt by the Company of any notification with respect to the suspension
 of the qualification or exemption from qualification of any of the Placement Shares for sale
 in any jurisdiction or the initiation or threatening of any proceeding for such purpose;
 or (iv) the occurrence of any event that makes any statement of a material fact made in the
 Registration Statement or the Prospectus or any document incorporated or deemed to be incorporated
 therein by reference untrue or that requires the making of any changes in the Registration
 Statement, the Prospectus or any such documents so that, in the case of the Registration
 Statement, it will not contain an untrue statement of a material fact or omit to state any
 material fact required to be stated therein or necessary in order to make the statements
 therein not misleading and, that in the case of the Prospectus, it will not contain an untrue
 statement of a material fact or omit to state a material fact required to be stated therein
 or necessary in order to make the statements therein, in the light of the circumstances under
 which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Misstatement or Material Omission</u>. The Agents shall not have advised the Company that
 the Registration Statement or the Prospectus, or any amendment or supplement thereto, contains
 an untrue statement of fact that in the Agents' reasonable opinion is material, or
 omits to state a fact that in the Agents' reasonable opinion is material and is required
 to be stated therein or is necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Material Changes</u>. Except as contemplated in the Registration Statement or the Prospectus, or disclosed
 in the Company's reports filed with the Commission, there shall not have been any material
 adverse change in the authorized capital stock of the Company or any Material Adverse Effect
 or any development that would cause a Material Adverse Effect, or a downgrading in or withdrawal
 of the rating assigned to any of the Company's securities (other than asset backed
 securities) by any rating organization or a public announcement by any rating organization
 that it has under surveillance or review its rating of any of the Company's securities
 (other than asset backed securities), the effect of which, in the case of any such action
 by a rating organization described above, in the reasonable judgment of the Agents (without
 relieving the Company of any obligation or liability it may otherwise have), is so material
 as to make it impracticable or inadvisable to proceed with the offering of the Placement
 Shares on the terms and in the manner contemplated in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legal Opinions</u>. The Agents shall have received the opinions and negative assurance letters
 of Company Counsel required to be delivered pursuant to <u>Section 7(m)</u> on or before
 the date on which such delivery of such opinions and negative assurance letters, as applicable,
 is required pursuant to <u>Section 7(m)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Comfort Letter</u>. The Agents shall have received the Comfort Letter required to be delivered pursuant
 to <u>Section 7(n)</u> on or before the date on which such delivery of such Comfort Letter
 is required pursuant to <u>Section 7(n)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Representation Certificate</u>. The Agents shall have received the certificate required to be delivered
 pursuant to <u>Section 7(l)</u> on or before the date on which delivery of such certificate
 is required pursuant to <u>Section 7(l)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Suspension</u>. Trading in the Common Stock shall not have been suspended on the Exchange
 and the Common Stock shall not have been delisted from the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Other Materials</u>. On each date on which the Company is required to deliver a certificate pursuant
 to <u>Section 7(l)</u>, the Company shall have furnished to the Agents such appropriate further
 information, opinions, certificates, letters and other documents as the Agents may reasonably
 request. All such opinions, certificates, letters and other documents will be in compliance
 with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Securities Act Filings Made</u>. All filings with the Commission required by Rule 424 under the Securities
 Act to have been filed prior to the issuance of any Placement Notice hereunder shall have
 been made within the applicable time period prescribed for such filing by Rule 424.

&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Approval for Listing</u>. The Placement Shares shall either have been (i) approved for listing on
 the Exchange, subject only to notice of issuance, or (ii) the Company shall have filed an
 application for listing of the Placement Shares on the Exchange at, or prior to, the issuance
 of any Placement Notice and the Exchange shall have reviewed such application and not provided
 any objections thereto.

&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>FINRA</u>.
 If applicable, FINRA shall have raised no objection to the terms of this offering and the
 amount of compensation allowable or payable to the Agents as described in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Termination Event</u>. There shall not have occurred any event that would permit the Agents
 to terminate this Agreement pursuant to <u>Section 12(a)</u>.

10. <u>Indemnification and Contribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Indemnification</u>. The Company agrees to indemnify and hold harmless each Agent, its affiliates and their respective partners, members, directors, officers, employees and agents and each person, if any, who controls such Agent or any affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any Governmental Authority, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; *provided* that (subject to <u>Section 10(d)</u> below) any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be delayed or withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any Governmental Authority, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission (whether or not a party), to the extent that any such expense is not paid under (i) or (ii) above, *provided, however*, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with the Agents' Information (defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Agents Indemnification</u>. Each Agent, severally but not jointly, agrees to indemnify and hold harmless the Company and its directors and each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in <u>Section 10(a)</u>, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto), the Prospectus, any Prospectus Supplement (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with information relating to such Agent and furnished to the Company in writing by such Agent expressly for use therein. The Company hereby acknowledges that the only information that the Agents have furnished to the Company expressly for use in the Registration Statement, the Prospectus, any Prospectus Supplement or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) are the statements set forth in the [first sentence of the fifth paragraph and the seventh and eighth paragraphs under the caption "Plan of Distribution"]<sup>1</sup> in the Sales Prospectus (the "**<u>Agents' Information</u>**").

<sup>1</sup> **NTD**: To be updated to match final pro supp disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Procedure</u>. Any party that proposes to assert the right to be indemnified under this <u>Section 10</u> will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this <u>Section 10</u>, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than under this <u>Section 10</u> and (ii) any liability that it may have to any indemnified party under the foregoing provision of this <u>Section 10</u> unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any other legal expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action or counsel reasonably satisfactory to the indemnified party, in each case, within a reasonable time after receiving notice of the commencement of the action; in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm (plus local counsel) admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this <u>Section 10</u> (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent (1) includes an express and unconditional release of each indemnified party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out of such litigation, investigation, proceeding or claim and (2) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Settlement Without Consent if Failure to Reimburse</u>*.* If an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by <u>Section 10(a)(ii)</u> effected without its written consent if (1) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (2) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (3) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Contribution</u>. In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this <u>Section 10</u> is applicable in accordance with its terms but for any reason is held to be unavailable or insufficient from the Company or an Agent, the Company and such Agent will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted) to which the Company and the Agents may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Agents on the other hand. The relative benefits received by the Company on the one hand and the Agents on the other hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agents from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and such Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or such Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and each Agent agree that it would not be just and equitable if contributions pursuant to this <u>Section 10(e)</u> were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this <u>Section 10(e)</u> shall be deemed to include, for the purpose of this <u>Section 10(e)</u>, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim to the extent consistent with <u>Section 10(c)</u> hereof. Notwithstanding the foregoing provisions of this <u>Section 10(e)</u>, an Agent shall not be required to contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of <u>Section 11(f)</u> of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this <u>Section 10(e)</u>, any person who controls a party to this Agreement within the meaning of the Securities Act, any affiliates of an Agent and any officers, directors, partners, employees or agents of an Agent or any of its affiliates, will have the same rights to contribution as that party, and each director of the Company and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this <u>Section 10(e)</u>, will notify any such party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this <u>Section 10(e)</u> except to the extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of <u>Section 10(c)</u> hereof, no party will be liable for contribution with respect to any action or claim settled without its written consent if such consent is required pursuant to <u>Section 10(c)</u> hereof. The Agents' respective obligations to contribute pursuant to this <u>Section 10(e)</u> are several in proportion to the respective number of Placement Shares they have sold hereunder, and not joint.

11. <u>Representations and Agreements to Survive Delivery</u>. The indemnity and contribution agreements contained
 in <u>Section 10</u> of this Agreement and all representations and warranties of the Company
 herein or in certificates delivered pursuant hereto shall survive, as of their respective
 dates, regardless of (i) any investigation made by or on behalf of any Agent, any controlling
 persons, or the Company (or any of their respective officers, directors, employees or controlling
 persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii)
 any termination of this Agreement.

12. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Agent may terminate this Agreement with respect to itself, by notice to the Company and the
 other Agents, as hereinafter specified at any time (1) if there has been, since the time
 of execution of this Agreement or since the date as of which information is given in the
 Prospectus, any change, or any development or event involving a prospective change, in the
 condition, financial or otherwise, or in the business, properties, earnings, results of operations
 or prospects of the Company and its Subsidiaries considered as one enterprise, whether or
 not arising in the ordinary course of business, which individually or in the aggregate, in
 the sole judgment of such Agent is material and adverse and makes it impractical or inadvisable
 to market the Placement Shares or to enforce contracts for the sale of the Placement Shares,
 (2) if there has occurred any material adverse change in the financial markets in the United
 States or the international financial markets, any outbreak of hostilities or escalation
 thereof or other calamity or crisis or any change or development involving a prospective
 change in national or international political, financial or economic conditions, in each
 case the effect of which is such as to make it, in the judgment of such Agent, impracticable
 or inadvisable to market the Placement Shares or to enforce contracts for the sale of the
 Placement Shares, (3) if trading in the Common Stock has been suspended or limited by the
 Commission or the Exchange, or if trading generally on the Exchange has been suspended or
 limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension
 of trading of any securities of the Company on any exchange or in the over-the-counter market
 shall have occurred and be continuing, (5) if a major disruption of securities settlements
 or clearance services in the United States shall have occurred and be continuing, or (6)
 if a banking moratorium has been declared by either U.S. Federal or New York authorities.
 Any such termination shall be without liability of any party to any other party except that
 the provisions of <u>Section 8</u> (Payment of Expenses), <u>Section 10</u> (Indemnification
 and Contribution), <u>Section 11</u> (Representations and Agreements to Survive Delivery), <u>Section 17</u> (Governing Law and Time; Waiver of Jury Trial) and <u>Section 18</u> (Consent
 to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
 If an Agent elects to terminate this Agreement as provided in this <u>Section 12(a)</u>,
 such Agent shall provide the required notice as specified in <u>Section 13</u> (Notices).
 For the avoidance of doubt, the termination by one Agent of its rights and obligations under
 this Agreement pursuant to this <u>Section 12(a)</u> shall not affect the rights and obligations
 of the other Agents under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company shall have the right, by giving ten (10) days' notice as hereinafter specified
 to terminate this Agreement in its sole discretion at any time after the date of this Agreement.
 Any such termination shall be without liability of any party to any other party except that
 the provisions of <u>Section 8</u>, <u>Section 10</u>, <u>Section 11</u>, <u>Section 17</u> and <u>Section 18</u> hereof shall remain in full force and effect notwithstanding such termination.
 For the avoidance of doubt, the termination by the Company of this Agreement with respect
 to one Agent pursuant to this <u>Section 12(b)</u> shall not affect the rights and obligations
 of the other Agents under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Each
 Agent shall have the right, by giving ten (10) days' notice as hereinafter specified
 to terminate this Agreement with respect to itself in its sole discretion at any time after
 the date of this Agreement. Any such termination shall be without liability of any party
 to any other party except that the provisions of <u>Section 8</u>, <u>Section 10</u>, <u>Section 11</u>, <u>Section 17</u> and <u>Section 18</u> hereof shall remain in full force and effect
 notwithstanding such termination. For the avoidance of doubt, the termination by one Agent
 of its rights and obligations under this Agreement pursuant to this <u>Section 12(c)</u> shall not affect the rights and obligations of the other Agents under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(d) This
 Agreement shall remain in full force and effect unless terminated pursuant to <u>Sections 12(a)</u>, <u>(b)</u>, or <u>(c)</u> above or otherwise by mutual agreement of the parties; *provided*, *however*, that any such termination by mutual agreement shall in all
 cases be deemed to provide that <u>Section 8</u>, <u>Section 10</u>, <u>Section 11</u>, <u>Section 17</u> and <u>Section 18</u> shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Any
 termination of this Agreement shall be effective on the date specified in such notice of
 termination; *provided*, *however*, that such termination shall not be effective
 until the close of business on the date of receipt of such notice by the Agents or the Company,
 as the case may be. If such termination shall occur prior to the Settlement Date for any
 sale of Placement Shares, such Placement Shares shall settle in accordance with the provisions
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>.
 All notices or other communications required or permitted to be given by any party to any
 other party pursuant to the terms of this Agreement shall be in writing, unless otherwise
 specified, and if sent to the Agents, shall be delivered to:

Cantor Fitzgerald & Co.

110 East 59<sup>th</sup> Street

New York, New York 10022

Attention: Capital Markets

Email: CFCEO@cantor.com

and:

Cantor Fitzgerald & Co.

110 East 59<sup>th</sup> Street

New York, New York 10022

Attention: General Counsel

Email: legal-IBD@cantor.com

and:

R.F. Lafferty & Co., Inc.

40 Wall Street, Suite 3602

New York, New York 10005

Attention: Robert Hackel, Chief Operating Officer

Email: rhackel@rflafferty.com

with copies to:

DLA Piper LLP (US)

1251 Avenue of the Americas

New York, New York 10020

Attention: Stephen P. Alicanti

Email: stephen.alicanti@us.dlapiper.com

and if to the Company, shall be delivered to:

Eightco Holdings Inc.

101 Larry Holmes Dr., Suite 313

Easton, Pennsylvania 18042

Telephone: (888) 765-8933

Attention: Kevin O'Donnell

Email: ko@8co.holdings

with a copy to:

Winston & Strawn LLP

800 Capitol Street, Suite 2400

Houston, Texas 77002

Telephone: (713) 651-2600

Attention: Michael Blankenship

Email: mblankenship@winston.com

Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) by Electronic Notice, as set forth below, (iii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iv) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, "**<u>Business Day</u>**" shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.

An electronic communication ("**<u>Electronic Notice</u>**") shall be deemed written notice for purposes of this Section 13 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form ("**<u>Nonelectronic Notic</u>e**") which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

14. <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the Company
 and each Agent and their respective successors and the parties referred to in <u>Section 10</u> hereof. References to any of the parties contained in this Agreement shall be deemed
 to include the successors and permitted assigns of such party. Nothing in this Agreement,
 express or implied, is intended to confer upon any party other than the parties hereto or
 their respective successors and permitted assigns any rights, remedies, obligations or liabilities
 under or by reason of this Agreement, except as expressly provided in this Agreement. Neither
 party may assign its rights or obligations under this Agreement without the prior written
 consent of the other party; *provided*, *however*, that each Agent may assign its
 rights and obligations hereunder to an affiliate thereof without obtaining the Company's
 consent.

15. <u>Adjustments for Stock Splits</u>. The parties acknowledge and agree that all share-related numbers contained
 in this Agreement shall be adjusted to take into account any stock split, stock dividend
 or similar event effected with respect to the Common Stock.

16. <u>Entire Agreement; Amendment; Severability; Waiver</u>. This Agreement (including all schedules and
 exhibits attached hereto, and Placement Notices issued pursuant hereto, any contemporaneous
 side letters and any prior engagement letters between the Company and either of the Agents,
 including the engagement letter dated September 10, 2025 between the Company and Cantor Fitzgerald
 & Co.) constitutes the entire agreement and supersedes all other prior and contemporaneous
 agreements and undertakings, both written and oral, among the parties hereto with regard
 to the subject matter hereof. Neither this Agreement nor any term hereof may be amended except
 pursuant to a written instrument executed by the Company and each Agent. No waiver of any
 provision of this Agreement shall be effective unless in a written instrument executed by
 the party against whom such waiver is to be effective. In the event that any one or more
 of the provisions contained herein, or the application thereof in any circumstance, is held
 invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such
 provision shall be given full force and effect to the fullest possible extent that it is
 valid, legal and enforceable, and the remainder of the terms and provisions herein shall
 be construed as if such invalid, illegal or unenforceable term or provision was not contained
 herein, but only to the extent that giving effect to such provision and the remainder of
 the terms and provisions hereof shall be in accordance with the intent of the parties as
 reflected in this Agreement. No implied waiver by a party shall arise in the absence of a
 waiver in writing signed by such party. No failure or delay in exercising any right, power,
 or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
 exercise thereof preclude any other or further exercise thereof or the exercise of any right,
 power, or privilege hereunder.

17.  **<u>GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.** 

18.  **<u>CONSENT TO JURISDICTION</u>. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.** 

19. <u>Counterparts</u>.
 This Agreement may be executed in two or more counterparts, each of which shall be deemed
 an original, but all of which together shall constitute one and the same instrument. Delivery
 of an executed Agreement by one party to the other may be made by facsimile, electronic mail
 (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform
 Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable
 law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered
 shall be deemed to have been duly and validly delivered and be valid and effective for all
 purposes.

20. <u>Construction</u>.
 The section and exhibit headings herein are for convenience only and shall not affect the
 construction hereof. References herein to any law, statute, ordinance, code, regulation,
 rule or other requirement of any Governmental Authority shall be deemed to refer to such
 law, statute, ordinance, code, regulation, rule or other requirement of any Governmental
 Authority as amended, reenacted, supplemented or superseded in whole or in part and in effect
 from time to time and also to all rules and regulations promulgated thereunder.

21. <u>Permitted Free Writing Prospectuses</u>. The Company represents, warrants and agrees that, unless it
 obtains the prior written consent of the Agents, and each Agent represents, warrants and
 agrees that, unless it obtains the prior written consent of the Company, it has not made
 and will not make any offer relating to the Placement Shares that would constitute an Issuer
 Free Writing Prospectus, or that would otherwise constitute a "free writing prospectus,"
 as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus
 consented to by the Agents or by the Company, as the case may be, is hereinafter referred
 to as a "Permitted Free Writing Prospectus." The Company represents and warrants
 that it has treated and agrees that it will treat each Permitted Free Writing Prospectus
 as an "issuer free writing prospectus," as defined in Rule 433, and has complied
 and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing
 Prospectus, including timely filing with the Commission where required, legending and record
 keeping. For the purposes of clarity, the parties hereto agree that all free writing prospectuses,
 if any, listed in <u>Exhibit 21</u> hereto are Permitted Free Writing Prospectuses.

22. <u>Absence of Fiduciary Relationship</u>. The Company acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) each
 Agent is acting solely as agent in connection with the public offering of the Placement Shares
 and in connection with each transaction contemplated by this Agreement and the process leading
 to such transactions, and no fiduciary or advisory relationship between the Company or any
 of its respective affiliates, stockholders (or other equity holders), creditors or employees
 or any other party, on the one hand, and the Agents, on the other hand, has been or will
 be created in respect of any of the transactions contemplated by this Agreement, irrespective
 of whether or not any Agent has advised or is advising the Company on other matters, and
 the Agents have no obligation to the Company with respect to the transactions contemplated
 by this Agreement except the obligations expressly set forth in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 is capable of evaluating and understanding, and understands and accepts, the terms, risks
 and conditions of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(c) neither
 of the Agents nor their respective affiliates have provided any legal, accounting, regulatory
 or tax advice with respect to the transactions contemplated by this Agreement and it has
 consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed
 appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 is aware that each Agent and its affiliates are engaged in a broad range of transactions
 which may involve interests that differ from those of the Company and such Agent and its
 affiliates have no obligation to disclose such interests and transactions to the Company
 by virtue of any fiduciary, advisory or agency relationship or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 waives, to the fullest extent permitted by law, any claims it may have against each Agent
 or its affiliates for breach of fiduciary duty or alleged breach of fiduciary duty in connection
 with the sale of Placement Shares under this Agreement and agrees that such Agent and its
 affiliates shall not have any liability (whether direct or indirect, in contract, tort or
 otherwise) to the Company in respect of such a fiduciary duty claim or to any person asserting
 a fiduciary duty claim on its behalf or in right of the Company, including stockholders,
 employees or creditors of the Company.

23. <u>Definitions</u>.
 As used in this Agreement, the following terms have the respective meanings set forth below:

"**<u>Applicable Time</u>**" means (i) each Representation Date, (ii) the time of each sale of any Placement Shares pursuant to this Agreement and (iii) each Settlement Date.

"**<u>Governmental Authority</u>**" means (i) any federal, provincial, state, local, municipal, national or international government or governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court, tribunal, arbitrator or arbitral body (public or private); (ii) any self-regulatory organization; or (iii) any political subdivision of any of the foregoing.

"**<u>Issuer Free Writing Prospectus</u>**" means any "issuer free writing prospectus," as defined in Rule 433, relating to the Placement Shares that (1) is required to be filed with the Commission by the Company, (2) is a "road show" that is a "written communication" within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g) under the Securities Act Regulations.

"**<u>Rule 164</u>**," "**<u>Rule 172</u>**," "**<u>Rule 405</u>**," "**<u>Rule 415</u>**," "**<u>Rule 424</u>**," "**<u>Rule 424(b)</u>**," "**<u>Rule 430B</u>**," and "**<u>Rule 433</u>**" refer to such rules under the Securities Act Regulations.

All references in this Agreement to financial statements and schedules and other information that is "contained," "included" or "stated" in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information that is incorporated by reference into the Registration Statement or the Prospectus, as the case may be.

All references in this Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to "supplements" to the Prospectus shall include, without limitation, any supplements, "wrappers" or similar materials prepared in connection with any offering, sale or private placement of any Placement Shares by the Agents outside of the United States.

[***Signature Page Follows***]

If the foregoing correctly sets forth the understanding between the Company and each Agent, please so indicate in the space provided below for that purpose, whereupon this Agreement shall constitute a binding agreement between the Company and each Agent.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| EIGHTCO HOLDINGS INC. | EIGHTCO HOLDINGS INC. |
| By: | */s/ Kevin O'Donnell* |
| Name: | Kevin O'Donnell |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| ACCEPTED as of the date first-above written: | ACCEPTED as of the date first-above written: |
| CANTOR FITZGERALD & CO. | CANTOR FITZGERALD & CO. |
| By: | */s/ Sameer Vasudev* |
| Name: | Sameer Vasudev |
| Title: | Managing Director |

---

---

| | |
|:---|:---|
| R.F. LAFFERTY & CO., INC. | R.F. LAFFERTY & CO., INC. |
| By: | */s/ Robert Hackel* |
| Name: | Robert Hackel |
| Title: | Chief Operating Officer |

---

[*Signature Page to Amended and Restated Sales Agreement*]

## Exhibit 99.1

**Exhibit 99.1**

***This exhibit contains estimates, projections, market research and other information concerning, among other things, our industry, our business, and the digital asset ecosystems in which we operate. Unless otherwise expressly stated, we obtain this information from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, digital asset and general publications, government data and similar sources as well as from our own internal estimates and research and from publications, research, surveys and studies conducted by third parties on our behalf. We believe this information is accurate in all material respects as of the filing date of this exhibit. Information that is based on estimates, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances that are reflected in this information.***

**Risks Related to Worldcoin**

***Opaque governance, concentration of ownership, and a potential lack of meaningful separation between the World Foundation and Tools for Humanity may create conflicts of interest; material decisions may be made to the detriment of third-party holders of WLD and could also adversely affect the value of WLD and the Company.***

Tools for Humanity, a for-profit company, was created to develop and operate the core hardware and software behind the WLD protocol. It established the World Foundation as a separate non-profit entity to steward the protocol. The World Foundation relies on Tools for Humanity for engineering, product and operational execution and it may provide WLD as consideration for these services. According to Worldcoin's blog, the total supply of WLD when launched was 10 billion. Before launch, 75% of the total WLD were allocated to the World Foundation (the "WF WLD"), and 25% of the total of WLD were allocated to Tools for Humanity, those individuals linked to the owners of Tools for Humanity, and other early founders of Tools for Humanity (the "TFH WLD"). As of April 2025, about 1.3 billion or 13% of the total supply was in circulation.

The timing and conditions under which the tokens are released into circulation are important to understand the governance of the WLD ecosystem and the potential impact on the value of WLD. While the World Foundation and Tools for Humanity are legally separate entities and have separate allocations, the decision-making authority governing when and how tokens are released may rest with a small group of individuals. The allocations and governance of TFH WLD and WF WLD are governed by arrangements that are not transparent to the public, and there is no autonomous on-chain code, third party reporting, audit or other objective processes that tie the statements made to the public to those actions of World Foundation or Tools for Humanity.

With respect to WF WLD, it is unclear what the WF WLD release schedule is, but it is purportedly determined based upon the number of WLD users in the public. According to Worldcoin's blog, the decision as to when to release the WF WLD currently rests with the World Foundation's Board of Directors. The composition of the Board of Directors is disclosed as Chris Waclawek, Phillip Sippl, Weinberger Ventures GmbH and a Cayman Islands based professional director. It is not disclosed as to how they are compensated, and it is possible they are compensated in WLD. It is also possible that the Board of Directors and the World Foundation employees overlap with or are connected to Tools for Humanity. Because there is no transparency as to how the decisions related to the user-reward programs, airdrops and the release of WF WLD, there is a risk that they may act in their self-interest, including the risk of inequitable distribution, concentration of token ownership, self-dealing and acting on inside information.

These risks are also applicable to the release schedule for Tools of Humanity. The release schedule for TFH WLD is a disclosed 5-year lock-up period (released daily, in a linear fashion). The unlocking of TFH WLD commenced in July of 2023 and will end in July of 2028. However, the original lock-up period was amended by Tools for Humanity from a 3-year period to a 5-year period in 2024 and there is no assurance that this schedule will not be amended again. The release schedule may be amended at any time at the discretion of insiders and without notice to the public.

Tools for Humanity's and the World Foundation's executives, employees and investors are likely significant beneficiaries of WLD allocations. Releases of WLD could be made in ways that conflict with the interest of public token holders, including through accelerated releases during favorable market conditions or based upon internal funding needs. In addition, there could be a misalignment between insiders seeking liquidity and community members seeking network stability. These factors may disrupt market dynamics, depress or increase WLD prices, and create actual or perceptions of insider advantage that deter broader participation and have an adverse impact on WLD. Public materials indicate that the intent is for governance of WLD to be transferred to the WLD user community. However, there is no process as to how or when this will happen. As a result, the disclosed objective to create a decentralized autonomous organization for WLD may take significant time or may never be met. Given the conflicts of interest, the lack of transparency, and the risks of self-dealing, the value of WLD may decline significantly, even to zero. If the value of WLD were to decline, any negative decline could materially and adversely impact the Company's operations and financial condition and could result, in extreme circumstances, in the Company's insolvency.

***The Worldcoin ecosystem has a limited operating history.***

Worldcoin, launched in 2023, is an early-stage project with a limited operating history. Developers, consumers and businesses may not adopt Worldcoin's technology, and we believe that Worldcoin's adoption will likely depend on significant protocol development and differentiation in a highly competitive market. A failure to scale, unexpected technical flaws, privacy issues or the lack of engagement could materially reduce demand for WLD and adversely affect their value.

The World Foundation was established to govern the Worldcoin ecosystem by Tools for Humanity, which was founded by Sam Altman. Although Mr. Altman has been successful with other ventures, there is no assurance that Worldcoin will also be successful.

Because our treasury strategy is currently focused on holdings of WLD, our treasury assets are highly dependent upon the value and performance of the WLD ecosystem. If the WLD ecosystem fails to achieve its objective, or has significant setbacks or delays, the value of WLD may severely decline, which could materially and adversely impact the value of the Company's treasury assets, the liquidity of the Company, and our financial condition, which could have a substantial impact on the value of the Company's common stock.

***Worldcoin's credibility and direction are heavily tied to founder Sam Altman and other key employees. WLD tokens may represent a substantial portion of these individuals' wealth, which concentrates influence and creates uncertainty over how personal decision, priorities and sales might hurt the ecosystem.***

Worldcoin's credibility is heavily dependent on the reputation of founder Sam Altman, in addition to its founding team and key early contributors that include, but are not limited to, Alex Blania, Max Novendstern, Adrian Ludwig, Damien Kieran and Ajay Patel. The departure, diminished participation, or reputational issues of these individuals could disrupt governance, slow development, or weaken market confidence of WLD and the Company. In addition, their concentrated token holdings create the possibility of significant market impact should the insiders choose to make announcements, share information, sell or transfer positions. In particular, to the extent that Sam Atman, believed to be a large holder of WLD, or other of the key early contributors make personal decisions or priorities that do not support WLD or that the market does not perceive as favorable to WLD, this could have an adverse impact on the ecosystem, the value of our treasury assets and our stock price. Even if the project transitions to a decentralized autonomous organization, a small number of "whale" holders could dominate votes, frustrating efforts to build an open, community-driven model.

Early token allocations could create long-term misalignment between insiders seeking liquidity and community members seeking network stability. All of these factors could create significant friction in the growth of the WLD ecosystem, which could have an adverse impact on the value of the Company's common stock.

 ****

***Liquidity of WLD is not guaranteed, and WLD could be subject to manipulation.***

Adequate liquidity of WLD is not guaranteed. Venues that offer WLD trading may not be transparent about their liquidity and order flow, and they may be subject to limited regulations. These factors may create opportunities for manipulative practices, such as wash trading, pump and dump schemes and other means of artificial price support. Limited independent oversight makes it difficult to assess whether price discovery is organic or influenced by external factors, which could have an adverse impact on the value and reputation of WLD.

In addition, the illiquidity of WLD is likely to have a direct impact on the execution and success of the Company's treasury strategy. If, for example, the Company's treasury needs liquidity and there is no or an insufficient liquid market for WLD, the Company may have to request liquidity from large holders of WLD. To date, the Company has primarily acquired WLD via over-the-counter purchases through trading desks. Additionally, the Company has plans to purchase WLD directly from existing large holders. These transactions may not be successful and the Company may determine that the terms of offers from such holders, or any future holders, to be off-market and not favorable to the Company. Without liquidity, the offer to sell or buy WLD may be at prices or terms that are not commercially reasonable. It may also mean that the Company may not be able to fulfill its treasury strategy if it cannot source or sell WLD or it can only do so at prices it deems unreasonable. The illiquidity of WLD, if it continues, is likely to have a material adverse effect on the value of the Company's common stock.

***Privacy risks from biometric verification are extensive and may lead to significant barriers to entry***.

Worldcoin's identity-verification process relies on collecting biometric data through its Orb iris-scanning hardware. Because an iris pattern is a unique biometric identifier, there are numerous concerns about how that data is protected, retained, used, controlled and deleted, in addition to what happens to the data if it is stolen and fraudulently used. Regulators globally have opened inquiries or expressed concern regarding data protection and privacy due to its biometric collection practices through Worldcoin's Orb iris-scanning device. The concern about the risks of biometric data has been linked to privacy issues in other contexts. For example, in the U.S., while the Health Insurance Portability and Accountability Act ("HIPAA") does not apply directly, the statute illustrates the heightened security standards regulators evaluate when considering biometric data, including HIPAA's standards for encryption, consent, data protection and breach notification. There are additional privacy concerns that are relevant under applicable law, such as the accuracy of data, the age of the participants, cross-border transfers, and national security implications, all of which may heighten regulatory scrutiny. There are also risks, such as key employees that may be focused on building an infrastructure to enter new markets, and obtaining new users may otherwise be focused on building an infrastructure that complies with multiple different and inconsistent regulatory frameworks. Litigation and regulatory scrutiny can take significant amounts of time and resources and create uncertainty, which can lead to business delays, which may threaten the business overall even if the product is ultimately found to be acceptable. If Worldcoin is unable to comply with these regulations, adoption of Worldcoin technology and the utility of WLD may be limited. Collectively, these privacy concerns could present substantial barriers to adoption and could materially and adversely affect the value and long-term viability of WLD tokens and the Worldcoin project, which, because of the Company's focus on its WLD treasury strategy, could have an adverse impact on the value of the Company's common stock.

***Worldcoin's requirement for in-person iris scans could create a significant adoption barrier compared to digital-only identity systems.***

Worldcoin's reliance on in-person iris scanning through proprietary Orb devices may present a significant hurdle to Worldcoin's adoption. Digital-only identity protocols or other Web3 self-sovereign identity platforms allow users to enroll and verify their identities online. However, Worldcoin requires individuals to locate and travel to an Orb operator and undergo a physical biometric capture. According to Worldcoin's blog, more than 1,500 Orb centers are active as of April 2025 in 23 countries. This extra step of going to an Orb may slow user growth, particularly in regions where Orb coverage is limited, travel is difficult, religious norms discourage biometric sign-ups, or regulatory frameworks do not allow biometric capture. Orbs may not be broadly available, for example, they are not currently available in the New York metropolitan area. These barriers for adoption could cause Worldcoin to fall behind competing companies that offer identity solutions that are potentially less privacy-invasive or difficult to undergo, negatively impacting the value of WLD and therefore the value of the Company's common stock.

 ****

***Worldcoin's biometric data is a high-value attack target for cyber-criminals and other bad actors.***

Worldcoin and other digital assets and the entities that provide services to participants in blockchain ecosystems have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities. For example, in October 2021 it was reported that hackers exploited a flaw in the account recovery process and stole from the accounts of at least 6,000 customers of the Coinbase exchange, although the flaw was subsequently fixed and Coinbase reimbursed affected customers. Similarly, in November 2022, hackers exploited weaknesses in the security architecture of the FTX Trading digital asset exchange and reportedly stole over $400 million in digital assets from customers.

Worldcoin's operations specifically involve the collection and storage of sensitive biometric information, which makes it an attractive target for sophisticated cyber-criminals and other bad actors. Unlike passwords or credit card numbers, biometric traits are permanent and cannot be re-issued, so any compromise could cause irreversible harm to affected individuals and expose Worldcoin to legal and reputational consequences. The market value of biometric data is significant; stolen iris templates can be used to create deepfakes, spoof identity systems, and facilitate account takeovers in financial, governmental, and healthcare contexts. Attackers may attempt to circumvent Worldcoin's safeguards through creative and unconventional methods.

A successful security breach or cyberattack could result in:

● a partial or total loss of our digital assets in a manner that may not be covered by insurance or the liability provisions of the custody agreements with the custodians who hold our digital assets;

● harm to our reputation and brand;

● improper disclosure of data and violations of applicable data privacy and other laws; or

● significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, contractual and financial exposure.

Further, any actual or perceived data security breach or cybersecurity attack directed at other companies with digital assets or companies that operate digital asset networks, regardless of whether we are directly impacted, could lead to a general loss of confidence in the broader Worldcoin ecosystem or in the use of the Worldcoin network to conduct financial transactions, which could negatively impact us.

Attacks upon systems across a variety of industries, including industries related to Worldcoin, are increasing in frequency, persistence, and sophistication, and, in many cases, are being conducted by sophisticated, well organized groups and individuals, including state actors. The techniques used to obtain unauthorized, improper or illegal access to systems and information (including personal data and digital assets), disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect quickly, and often are not recognized or detected until after they have been launched against a target. These attacks may occur on our systems or those of our third-party service providers or partners. We may experience breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities or other irregularities. In particular, we expect that unauthorized parties will attempt to gain access to our systems and facilities, as well as those of our partners and third-party service providers, through various means, such as hacking, social engineering, phishing and fraud. Threats can come from a variety of sources, including criminal hackers, hacktivists, state intrusions, industrial espionage, and insiders. In addition, certain types of attacks could harm us even if our systems are left undisturbed. For example, certain threats are designed to remain dormant or undetectable, sometimes for extended periods of time, or until launched against a target and we may not be able to implement adequate preventative measures. Further, there has been an increase in such activities due to the increase in work arrangements. The risk of cyberattacks could also be increased by cyberwarfare in connection with the ongoing Russia and Israel conflicts, or other future conflicts, including potential proliferation of malware into systems unrelated to such conflicts. Any future breach of our operations or those of others in the Worldcoin industry, including third-party services on which we rely, could materially and adversely affect its financial condition and results of operations.

Breaches could also lead to class action litigation, regulatory investigations, mandatory breach notifications, substantial fines under the EU GDPR, India's DPDP Act, or similar regimes, a permanent loss of user trust, or damage to the ecosystem, among other risks. Even if a hack or breach does not actually occur and is only an advertised threat, for example through social media, any publicity about a breach or a hack could cause regulatory scrutiny and severe reputational risk. Because Worldcoin's system links each user's biometric "uniqueness" to a persistent digital identity and many have been given tokens, any compromise could also cause a manipulation of governance votes across the network if the hack is large enough. These factors, many of which are outside Worldcoin's direct control, represent a material and continuing risk to its business, financial condition, and reputation, potentially having an adverse impact on the value of the Company's common stock,

***Opposition and accusations of "data colonialism" toward large-scale biometric systems could limit Worldcoin's acceptance and trigger regulatory backlash.***

Worldcoin's global collection of biometric identifiers exposes it to heightened reputational risk and criticism from civil groups, privacy advocates, and non-governmental organizations ("NGOs") that view all organizations collecting biometric data from individuals as a form of "data colonialism." Particularly in the Global South, technology companies and investors in wealthier nations that collect personal biometric data may be considered entities that are replicating historical patterns of exploitation by providing technology companies and investors financial incentives to vulnerable communities in exchange for very valuable personal data that may be used beyond the purpose of establishing an identity. These groups argue that individuals in lower-income regions may have limited understanding of the use of the data required to give fully informed consent. Opposition of this kind can produce both regulatory and reputational consequences. While regulatory scrutiny is a risk, even in the absence of regulatory scrutiny, public criticism regarding privacy practices could damage the project's brand. With social media increasing the ability to communicate to large numbers of people in a short period of time, negative public sentiment could occur quickly. Negative public sentiment could discourage new users from enrolling and cause current users to close out their accounts. Loss of public confidence would likely limit market expansion, weaken strategic partnerships, and reduce liquidity or demand for WLD, regardless of the project's legal compliance. Allegations of data colonialism or exploitation could discourage Orb operators, enterprise partners and prospective users from engaging with Worldcoin, slowing adoption even in markets where the system is legal. Negative media coverage, NGO reports, or coordinated campaigns could also lead to investigations, mandatory audits, and costly compliance obligations, any of which could materially reduce user growth, impair token demand, and damage Worldcoin's long-term prospects. Any of these events could have an adverse impact on the value of the Company's common stock.

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***Worldcoin's proof-of-personhood model, on its own, is likely to not comply with current global KYC/AML requirements in many jurisdictions, including in the US, UK and EU; the model of biometric scanning replaces the obligation to deliver documentation of a person's country of origin and proof of residence, for example, and therefore by itself is non-compliant with existing frameworks. Systems liked Wordcoin's "proof-of-personhood" do not verify identity but verify uniqueness.***

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Worldcoin's "proof-of-personhood" approach, which verifies that each participant is a unique human through biometric scanning while allowing them to remain pseudonymous, is likely to not comply by itself with current know-your-customer ("KYC") and anti-money laundering ("AML") obligations in many jurisdictions. Financial services and virtual asset regulations in the United States, the European Union, India, and numerous other markets require service providers to collect and retain personally identifying information, such as legal name, government-issued identification, and address, particularly if the transaction involve the transfer of financial assets. By design, Worldcoin's business directly conflicts with AML and KYC processes. Interestingly, the processes were developed because of the pseudonymous ecosystem of digital assets. In 2019, the Financial Action Task Force ("FATF") adopted global standards for virtual asset service providers ("VASPs") requiring them to verify their customer's identity and share sender and recipient information (the "Travel Rule"). Jurisdictions that fail to implement the FATF VASP standards risk being placed on the FATF "grey" or "black" lists, which could limit access to global banking systems and international financial assistance.

Worldcoin's current proof-of-personhood model presents an inherent conflict with the existing VASP framework's requirement for traceable, legally verifiable customer identification. Because Worldcoin's business model does not contemplate the manual collection and storage of key information, the process does not comply with AML and KYC laws. This structural tension could lead regulators to view Worldcoin's compliance program as inadequate on its own, even if Worldcoin complies with the spirit of AML and KYC. Given the significant regulatory requirements in many countries and the global importance of FATF and the Travel Rule, Worldcoin may have to either seek an exemption or change in law in order to operate. This process could take months or years, may not ultimately be possible in many countries, and violation of these laws could lead to significant fines. Any of the foregoing could impede Worldcoin's adoption and adversely impact the value of the Company and its common stock.

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***Worldcoin is created and transmitted on a public blockchain network, Ethereum, which is a decentralized peer-to-peer network of computers running the Ethereum protocol. If the Ethereum network is disrupted or encounters any unanticipated difficulties, including power outages or grid failures, the value of WLD could be negatively impacted and there could be significant impact on the operation of financial and other markets.***

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Worldcoin has no ability to prevent or correct network disruptions, including power outages or grid failures. If the Ethereum network is disrupted or encounters any unanticipated difficulties, then the processing of transactions of Worldcoin may be disrupted, which in turn may prevent us from depositing or withdrawing WLD from our accounts with our custodian or otherwise affecting WLD transactions. Any disruption of the Ethereum network could materially impact the ability of the Company to transfer or sell WLD, and the price of WLD would likely decrease.

In addition, if Worldcoin's business objective were to be widely adopted, the reliance upon Worldcoin's proof-of-personhood model could create significant difficulties in many industries that rely upon the Worldcoin model if there were a power disruption. For example, if Worldcoin's model were to be incorporated in financial transactions, and the Ethereum network was disrupted, it is possible that there could be difficulty for financial markets to operate generally. Users could theoretically lose access to the bank balances or not be able to make financial transactions. Adverse developments tied to the inability to use the Worldcoin network could result in a material reduction in the value of WLD, and could render WLD worthless, which would have a material, adverse impact on the Company and the value of its common stock.

**Risks Related to the Company's Business and Worldcoin Strategy and Holdings**

***We have adopted a digital asset treasury strategy with a focus on WLD, and we may be unable to successfully implement this new strategy.***

We have adopted a digital asset treasury primarily dedicated to WLD, including acquisitions of WLD, including through a process similar to staking and other decentralized finance activities. There is no assurance that we will be able to successfully implement this new strategy or operate Worldcoin-related activities at the scale currently anticipated. Worldcoin is an ERC-20 token operating on the Ethereum Mainnet. The identity layer (iris verification, World identification credentials and the Orb hardware network) is built entirely off-chain. This business requires specialized employee skillsets and operational, technical and compliance infrastructure to support WLD and identity-layer activities. This also requires the implementation of different security protocols and treasury management practices and adherence to privacy laws. Further, there is ongoing scrutiny and limited formal guidance from regulatory agencies, including Nasdaq and the Securities and Exchange Commission (the "SEC"), with respect to the treatment of public company cryptocurrency strategies. There is no assurance that we will be able to execute this strategy by building out the needed infrastructure within the timeframe that we currently anticipate. Errors by key management could result in significant loss of funds and reduced rewards. As a result, our shift towards WLD could have a material adverse effect on our business and financial condition.

***Our shift towards a Worldcoin-focused treasury strategy requires substantial changes in our day-to-day operations and may expose us to significant operational risks.***

Our shift towards a WLD treasury-focused strategy, including decentralized finance activities, exposes us to significant operational risks. The Worldcoin ecosystem rapidly evolves. The upgrades may require that we incur unanticipated costs and could cause temporary service disruptions to the Worldcoin network. We may also need to employ third-party service providers in our operations, which may introduce risks outside of our control, including significant cybersecurity risks. Any of these operational risks could materially and adversely affect our ability to execute our WLD treasury strategy and may prevent us from realizing positive returns and could severely hurt our financial condition.

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***We intend to purchase WLD, the price of which has been, and will likely continue to be, highly volatile. Our operating results and share price may significantly fluctuate, including due to the highly volatile nature of the price of such digital assets and erratic market movements.***

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We intend to purchase or otherwise acquire WLD for the furtherance of our digital asset treasury operations. Digital assets, such as WLD, generally are highly volatile assets, including as a result of shifts in market sentiment, speculative trading, macroeconomic trends, technology-related disruptions and regulatory announcements. Our operating results and share price may significantly fluctuate, including due to the highly volatile nature of the price of such digital assets and erratic market movements. In addition, digital assets do not pay interest or other returns, unless utilized in financial applications, and so the ability to generate a return on investment from the net proceeds of any capital raising activities will depend on whether there is appreciation in the value of digital assets following our purchases, which is highly speculative. Future fluctuations in digital asset trading prices may result in our converting digital assets into cash with a value substantially below what we paid for such digital assets. There is no guarantee that digital assets such as WLD will continue to represent any measure of value. Any decreases in the value of WLD could have a material adverse effect on our financial condition and results of operations. See also ***"—Ownership of WLD is believed to be highly concentrated*."**

***The concentration of our WLD holdings enhances the risks inherent in our Worldcoin-focused strategy.***

We have and intend to purchase WLD and increase our overall holdings of WLD in the future. The intended concentration of our WLD holdings limits the risk mitigation that we could achieve if we were to purchase a more diversified portfolio of treasury assets, and the absence of diversification enhances the risks inherent in our Worldcoin-focused strategy. Any future significant declines in the price of WLD could have a pronounced impact on our financial condition than if we used our cash to purchase a more diverse portfolio of assets. See also *"—Ownership of WLD is believed to be highly concentrated*" and "*—We intend to purchase WLD, the price of which has been, and will likely continue to be, highly volatile. Our operating results and share price may significantly fluctuate, including due to the highly volatile nature of the price of such digital assets and erratic market movements.*"

***In connection with our WLD treasury strategy, we expect to interact with various smart contracts deployed on the Worldcoin network, which may expose us to risks and technical vulnerabilities.***

In connection with our WLD treasury strategy, including decentralized finance activities, we expect to interact with various smart contracts deployed on the Ethereum network in order to optimize our strategy and generate income. Smart contracts are self-executing code that operate without human intervention once deployed. Although smart contracts are integral to the functionality of decentralized finance applications, they are subject to many known risks such as technical vulnerabilities, coding errors, security flaws, and exploits. Any vulnerability in a smart contract we interact with could result in the loss or theft of WLD or other digital assets, which could have a materially adverse impact on our business. In addition, certain smart contracts are upgradable or subject to certain governance controls which could result in unforeseen code errors, asset or account freezing, or the loss of digital assets. A vulnerability in a smart contract could create an unintended and unforeseeable consequence that has adverse financial consequences, such as the loss of or inability to access funds. There is no assurance that the smart contracts we integrate with or rely upon will function as intended or remain secure. Exploitation of such vulnerabilities could have a material adverse effect on our business and financial condition.

***Part of our future business strategy may include acquisitions and investments in companies with Worldcoin-focused or blockchain strategies, and there are risks associated with the integration of any assets or operations acquired and our ability to manage those risks. In addition, we may be unable to make attractive acquisitions or successfully integrate acquired businesses, assets or properties, and any inability to do so may disrupt our business and hinder our ability to grow.***

We intend to pursue a strategy focused on both WLD accumulation and future acquisitions. Accordingly, in the future we may make acquisitions of businesses or assets that we expect to complement or expand our current assets. However, we may not be able to identify attractive acquisition opportunities in the future. Even if we do identify attractive acquisition opportunities, we may not be able to complete the acquisition or do so on commercially acceptable terms. No assurance can be given that we will be able to identify additional suitable acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms or successfully acquire identified targets.

The success of any acquisition will depend on our ability to integrate effectively the acquired business or asset into our existing operations. The process of integrating acquired businesses and assets may involve unforeseen difficulties and may require a disproportionate amount of our managerial and financial resources. The integration of acquisitions is a complex, costly and time-consuming process, and our management may face significant challenges in such process. Some of the factors affecting integration will be outside of our control, and any one of them could result in increased costs and diversion of management's time and energy, as well as decreases in the amount of expected revenue.

Our failure to achieve consolidation savings, to incorporate the acquired businesses and assets into our existing operations successfully or to minimize any unforeseen operational difficulties could have a material and adverse effect on our financial condition and results of operations.

Additional ability to achieve the objectives of our business strategy depends in significant part on our ability to obtain equity and debt financing. If we are unable to obtain equity or debt financing on favorable terms or at all, we may not be able to successfully execute on our business strategy.

***Certain members of our management have been, and may continue to be, the subjects of legal and regulatory proceedings and investigations.***

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Certain of our directors and officers have been, and may continue to be, the subjects of legal and regulatory proceedings and investigations. For example, the SEC issued a cease-and-desist proceeding against our Chairman, Daniel Ives, in 2022 (prior to becoming Chairman of our Board), alleging that while he was executive vice president at Synchronoss, Mr. Ives contributed to improper accounting at that company by recklessly disregarding information in violation of relevant regulations. Mr. Ives was fined $15,000 and was prohibited from participating as a salesperson in transactions for three years. Any adverse outcome in any other future litigation or regulatory inquiries could negatively affect public perception of the Company and divert management's time and energy, which could constrain trading activity and suppress the price and liquidity of WLD. Any such development could materially and adversely affect the value of our digital asset treasury, the market price of our stock and our ability to execute on our digital asset treasury strategy.

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***Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our proposed holdings of digital assets. Accordingly, it may be difficult to evaluate the Company's business and future prospects, and the Company may not be able to achieve or maintain profitability in any given period.***

Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future from holding or selling digital assets. The price of digital assets generally has historically been subject to dramatic price fluctuations and is highly volatile. We will need to perform an analysis each quarter to identify whether events or changes in circumstances indicate that our digital assets are impaired. As a result, volatility in our earnings may be significantly more than what we experienced in prior periods.

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***Digital asset holdings are less liquid than cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.***

Historically, the digital asset market has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, concerns regarding pseudonymity of digital asset addresses, a developing regulatory landscape, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of market instability, we may not be able to sell our digital assets at favorable prices or at all. As a result, digital asset holdings may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents. Further, digital assets we hold with our custodians and transact with our trade execution partners do not enjoy the same protections or insurance as are available to cash or securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Additionally, we may be unable to enter into term loans or other capital raising transactions collateralized by our unencumbered digital assets or otherwise generate funds using our digital asset holdings, including in particular during times of market instability or when the price of digital assets has declined significantly. If we are unable to sell our digital assets, enter into additional capital raising transactions, including capital raising transactions using WLD as collateral, or otherwise generate funds using our WLD holdings, or if we are forced to sell our digital assets at a significant loss, in order to meet our working capital requirements, our business and financial condition could be negatively impacted.

***The availability of spot ETPs for WLD and other digital assets may adversely affect the market price of our listed securities.***

Although bitcoin, WLD and other digital assets have experienced a surge of investor attention since bitcoin was developed in 2008, until recently investors in the United States had limited means to gain direct exposure to WLD through traditional investment channels, and instead generally were only able to hold WLD through "hosted" wallets provided by digital asset service providers or through "unhosted" wallets that expose the investor to risks associated with loss or hacking of their private keys. Given the relative novelty of digital assets, general lack of familiarity with the processes needed to hold WLD directly, as well as the potential reluctance of financial planners and advisers to recommend direct WLD holdings to their retail customers because of the manner in which such holdings are custodied, some investors have sought exposure to bitcoin, WLD and other digital assets through investment vehicles that hold bitcoin, WLD and other digital assets and issue shares representing fractional undivided interests in their underlying digital asset holdings. These vehicles, which were previously offered only to "accredited investors" on a private placement basis, have in the past traded at substantial premiums (and sometimes discounts) to net asset value, possibly due to the relative scarcity of traditional investment vehicles providing investment exposure to digital assets.

On January 10, 2024, the SEC approved the listing and trading of spot bitcoin exchange-traded products ("ETPs"), the shares of which can be sold in public offerings and are traded on U.S. national securities exchanges. The approved ETPs commenced trading directly to the public on January 11, 2024, with a trading volume of $4.6 billion on the first trading day. The SEC has not yet approved the listing of spot WLD ETPs. To the extent investors view our common stock as providing exposure to WLD, it is possible that the value of our common stock may also include a premium over the value of our WLD due to the prior scarcity of traditional investment vehicles providing investment exposure to WLD and other digital assets, and that the value of our common stock may decline due to investors having a greater range of options to gain exposure to WLD if WLD ETPs are approved and investors choosing to gain such exposure through ETPs rather than our common stock. The listing and trading of spot ETPs for WLD or other digital assets offers investors another alternative to gain exposure to digital assets, which could result in a decline in the trading price of WLD as well as a decline in the value of our common stock relative to the value of our WLD.

Although we are an operating company, and we believe we offer a different value proposition than a WLD investment vehicle such as a spot WLD ETP, investors may nevertheless view our common stock as an alternative to an investment in an ETP, and choose to purchase shares of a spot WLD ETP instead of our common stock. They may do so for a variety of reasons, including if they believe that ETPs offer a "pure play" exposure to WLD that is generally not subject to federal income tax at the entity level as we are, or the other risk factors applicable to an operating business, such as ours. Additionally, unlike spot WLD ETPs, we (i) do not seek for our shares of common stock to track the value of the underlying WLD we hold before payment of expenses and liabilities, (ii) do not benefit from various exemptions and relief under the Securities Exchange Act of 1934, as amended, including Regulation M, and other securities laws, which enable ETPs to continuously align the value of their shares to the price of the underlying assets they hold through share creation and redemption, (iii) are a Delaware corporation rather than a statutory trust, and do not operate pursuant to a trust agreement that would require us to pursue one or more stated investment objectives, and (iv) are not required to provide daily transparency as to our WLD holdings or our daily net asset value. Furthermore, recommendations by broker-dealers to buy, hold, or sell complex products and non-traditional ETPs, or an investment strategy involving such products, may be subject to additional or heightened scrutiny that would not be applicable to broker-dealers making recommendations with respect to our common stock. Based on how we are viewed in the market relative to ETPs, and other vehicles which offer economic exposure to WLD, such as WLD futures exchange-traded funds ("ETFs"), leveraged WLD futures ETFs, and similar vehicles offered on international exchanges, any premium or discount in our common stock relative to the value of our WLD holdings may increase or decrease in different market conditions.

As a result of the foregoing factors, availability of spot ETPs for bitcoin, WLD and other digital assets could have a material adverse effect on the market price of our listed securities.

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***Digital asset lending arrangements may expose us to risks of borrower default, operational failures and cybersecurity threats***.

Although we are not initially planning to lend WLD to counterparties, from time to time, we may generate income through lending of digital assets, which carries significant risks. The volatility of such digital assets increases the likelihood that borrowers may default due to market downturns, liquidity crises, fraud or other financial distress. These lending transactions may be unsecured, and so may be subordinated to secured debt of the borrower. If a borrower becomes insolvent, we may be unable to recover the loaned WLD, leading to substantial financial losses.

Additionally, digital asset lending platforms are vulnerable to operational and cybersecurity risks. Technical failures, software bugs or system outages could disrupt lending activities, delay transactions or result in inaccurate record-keeping. Cybersecurity threats, including hacking, phishing and other malicious attacks, pose further risks, potentially leading to the loss, theft or misappropriation of our loaned WLD. A successful cyberattack or security breach could materially and adversely impact our financial position, reputation and ability to conduct future lending activities.

***Decentralized finance arrangements may expose us to risks of smart contract risk, operational failures and cybersecurity threats.***

From time to time, we may generate income through the use of digital assets including WLD or stablecoins in decentralized protocols including decentralized finance ("DeFi") applications. DeFi applications include over-collateralized borrow-lend vaults, token-exchange pools, and other financial or commercial arrangements. Although these protocols are largely designed to limit counterparty risk in transactions, they introduce novel risks relating to software code bugs, liquidation risks, and governance risks that are designed to operate in decentralized environments but can be subject to failures or exploits. In addition: (a) network congestion or downtime can increase the likelihood of asset loss or liquidation; (b) the volatility of digital assets deployed into DeFi applications may increase the likelihood of liquidation due to market downturns, liquidity crises, governance attacks or other exploits, leading to substantial financial losses; (c) the uncertainty in the accounting treatment of certain DeFi applications; (d) DeFi applications generally operate on a user-to-protocol basis where a user of a DeFi application does not know the identity of other parties utilizing the DeFi application; and (e) the use of monitoring and forensics software to mitigate risks of engaging in DeFi application may not prevent engaging in DeFi pools that are also used by bad actors.

***The Company will face risks relating to the custody of its digital assets. If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our private keys, or if our private keys are lost or destroyed, or other similar circumstances or events occur, we may lose some or all of our digital assets and our financial condition and results of operations could be materially adversely affected.***

We expect our primary counterparty risk with respect to our WLD will be custodian performance obligations under the custody arrangements we enter into. A series of recent high-profile bankruptcies, closures, liquidations, regulatory enforcement actions and other events relating to companies operating in the digital asset industry, the closure or liquidation of certain financial institutions that provided lending and other services to the digital assets industry, SEC enforcement actions against other providers, or placement into receivership or civil fraud lawsuit against digital asset industry participants have highlighted the perceived and actual counterparty risk applicable to digital asset ownership and trading. Legal precedent created in these bankruptcy and other proceedings may increase the risk of future rulings adverse to our interests in the event one or more of our custodians becomes a debtor in a bankruptcy case or is the subject of other liquidation, insolvency or similar proceedings.

While our custodians will be subject to regulatory regimes intended to protect customers in the event of a custodial bankruptcy, receivership or similar insolvency proceeding, no assurance can be provided that our custodially held WLD will not become part of the custodian's insolvency estate if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if we pursue any strategies to create income streams or otherwise generate funds using our WLD holdings, we would become subject to additional counterparty risks. We will need to carefully evaluate market conditions, including price volatility as well as service provider terms and market reputations and performance, among others, prior to implementing any such strategy, all of which could affect our ability to successfully implement and execute on any such future strategy. These risks, along with any significant non-performance by counterparties, including in particular the custodian or custodians with which we will custody substantially all of our WLD, could have a material adverse effect on our business, prospects, financial condition, and operating results.

***We face risks relating to the use of third-party trading platforms in connection with our Worldcoin-focused strategy.***

We intend to use third-party trading platforms and over-the-counter brokers to purchase WLD for our treasury. However, the entities with which we enter into agreements may close, go bankrupt, or change their business direction, and we may no longer be able to utilize them to implement our strategy. If we cannot find replacement counterparties, it may severely adversely impact our strategy. We also may be forced to enter into agreements that do not have favorable terms, which could have a material adverse effect on our business, financial condition or the results of our operations.

***The irreversibility of digital asset transactions exposes us to risks of theft, loss and human error, which could negatively impact our business.***

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Digital asset transactions are not, from an administrative perspective, reversible without the consent and active participation of the recipient of the transaction or, in theory, control or consent of a majority of the processing power on that digital asset network. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer of digital assets or a theft of digital assets generally will not be reversible, and we may not be capable of seeking compensation for any such transfer or theft.

Although we plan to regularly transfer digital assets to or from vendors, consultants and services providers, it is possible that, through computer or human error, or through theft or criminal action, such assets could be transferred in incorrect amounts or to unauthorized third parties.

To the extent we are unable to seek a corrective transaction to identify the third party which has received our digital assets through error or theft, we will be unable to revert or otherwise recover the impacted digital assets, and any such loss could adversely affect our business, results of operations and financial condition.

***We will be subject to significant competition in the growing digital asset industry and the Company's business, operating results, and financial condition may be adversely affected if the Company is unable to compete effectively.***

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Following the launch of the Company's proposed digital asset treasury strategy, the Company will operate in a competitive environment and will compete against other companies and other entities with similar strategies, including companies that may have significant holdings in WLD and other digital assets, and the Company's business, operating results, and financial condition may be adversely affected if the Company is unable to compete effectively.

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***Our dependence on a strategic advisor exposes us to significant risks regarding the operation of our business.***

We rely on Worldcoin Tower Instance LLC to provide guidance on our treasury management with respect to operational, strategic, capital deployment, and other advice, including the overall business, operations, strategic planning, growth initiatives, and industry trends in the digital asset and technology sectors. Our dependence on this advisor exposes us to significant risks regarding the operation of our business. If the advisor engages in fraudulent, negligent, or otherwise improper conduct, including regulatory violations, or suffers reputational harm from unrelated activities, our business and the market perception of the Company could be materially and adversely affected. Further, the advisor's own operational, financial, and technological competencies will directly reflect on the operation of our business. There may be key employees or key service providers that have a significant impact on our business that the advisor no longer employs or has a relationship with, which could have a material and adverse impact on the operation of our business. Because certain decisions may be influenced by this advisor's recommendations, its misjudgments or conflicts of interest could lead to losses, strategic errors, delays and loss of investment opportunities that may negatively impact our operations, token economics, and growth. We may have limited ability to monitor or control the advisor's activities or to recover damages if it fails to perform. Further, the advisor in the strategic operating agreement is not bound by any time commitment for providing its services. If the advisor fails to advise effectively because it is too busy or otherwise, we may not get the benefit of the services, which could cause a material and adverse impact on the Company.

**Risks Related to Cryptocurrency**

***WLD and other digital assets are novel assets, and are subject to significant legal, commercial, regulatory and technical uncertainty, which could materially adversely affect the Company's financial position, operations and prospects.***

WLD and other digital assets, as well as applications on blockchain networks such as Worldcoin, are relatively novel and are subject to significant uncertainty, which could adversely impact their price. The application of state and federal securities laws and other laws and regulations to digital assets and blockchain-based applications is unclear in certain respects, and it is possible that regulators in the United States or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of WLD or other digital assets, or the ability of blockchain-based applications to operate.

The U.S. federal government, states, regulatory agencies, and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that could materially impact the price of WLD or the ability of individuals or institutions such as us to own or transfer WLD and utilize blockchain-based applications on networks such as Worldcoin. For example, the U.S. executive branch, the SEC, the European Union's Markets in Crypto Assets Regulation, among others, have been active in recent years, and in the United Kingdom, the Financial Services and Markets Act 2023, or FSMA 2023, became law. It is not possible to predict whether, or when, any of these developments will lead to Congress granting additional authorities to the SEC, Commodity Futures Trading Commission ("CFTC"), or other regulators, or whether, or when, any other federal, state or foreign legislative bodies will take any similar actions. It is also not possible to predict the nature of any such additional authorities, how additional legislation or regulatory oversight might impact the ability of digital asset markets to function or the willingness of financial and other institutions to continue to provide services to the digital assets industry, nor how any new regulations or changes to existing regulations might impact the value of digital assets generally and WLD specifically. The consequences of increased regulation of digital assets and digital asset activities could adversely affect the market price of WLD and in turn adversely affect the market price of our common stock.

Moreover, the risks of engaging in a digital asset treasury strategy are relatively novel and have created, and could continue to create, complications due to the lack of experience that third parties have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential inability to obtain such coverage on acceptable terms in the future.

The growth of the digital assets industry in general, and the use and acceptance of WLD in particular, may also impact the price of WLD and is subject to a high degree of uncertainty. The pace of worldwide growth in the adoption and use of the Worldcoin network and WLD may depend, for instance, on public familiarity with digital assets, ease of buying, accessing or gaining exposure to WLD, institutional demand for WLD as an investment asset, the participation of traditional financial institutions in the digital assets industry, consumer demand for WLD as a means of payment, and the availability and popularity of alternatives to WLD. Even if growth in WLD adoption occurs in the near or medium-term, there is no assurance that WLD and Worldcoin network usage will continue to grow over the long term.

Because WLD have no physical existence beyond the record of transactions on the Worldcoin blockchain, a variety of technical factors related to the Worldcoin blockchain could also impact the price of WLD. For example, malicious attacks by validators, inadequate validation and staking rewards to incentivize validating of Worldcoin transactions, hard "forks" of the Worldcoin blockchain into multiple blockchains, difficulties with upgrades to the Worldcoin network and advances in digital computing, algebraic geometry, and quantum computing could undercut the integrity of the Worldcoin blockchain and negatively affect the price of WLD. The liquidity of WLD may also be reduced and damage to the public perception of Worldcoin may occur, if financial institutions were to deny or limit banking services to businesses that hold WLD, provide Worldcoin-related services or accept WLD as payment, which could also decrease the price of WLD.

The liquidity of WLD may also be impacted to the extent that changes in applicable laws and regulatory requirements negatively impact the ability of exchanges and trading venues to provide services for WLD and other digital assets.

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***If any of the digital assets that we hold are classified as a security, we may be subject to extensive regulation, which could result in significant costs or force us to cease operations.***

Regulatory changes or interpretations that classify digital assets that we hold as a security under the Securities Act of 1933, as amended, or the Investment Company Act of 1940, as amended (the "Investment Company Act"), could require us to register and comply with additional regulations. Compliance with these requirements could impose extraordinary, non-recurring expenses on our business. If the costs and regulatory burdens become too great, we may be forced to modify or cease certain operations, which could be detrimental to our investors.

The SEC has previously indicated that certain digital assets may be considered securities depending on their structure and use. For instance, if regulators were to determine that WLD meets the Howey Test, it would be a security. The Howey Test is (1) an investment of money, (2) in a common enterprise, (3) with a reasonable expectation of profit, (4) derived from the efforts of others. The application of the Howey Test, and other precedents for the determination of a security, are not always straightforward. Future developments could change the legal status of digital assets that we may hold, requiring us to comply with securities laws. If we fail to do so, we may be forced to discontinue some or all of our business activities, negatively impacting investments in our securities.

If the SEC or other regulators determine that digital assets that we may hold qualify as securities, we may be required to change our operations, wind down our operations, or register as an investment company under the Investment Company Act. This classification would subject us to additional periodic reporting, disclosure requirements, and regulatory compliance obligations, significantly increasing our operational costs. Compliance with the requirements of the Investment Company Act applicable to registered investment companies may make it difficult for us to continue our current operations, and this would materially and adversely affect our business, financial condition and results of operations. In addition, if WLD or another digital asset we hold were determined to constitute a security for purposes of the federal securities laws, we would likely take steps to reduce the percentage of WLD or such other digital assets that constitute investment assets under the Investment Company Act. These steps may include, among others, selling WLD that we might otherwise hold for the long term and deploying our cash in non-investment assets, and we may be forced to sell our WLD or other digital assets at unattractive prices, or cease our operations.

Although we do not currently engage in investing, reinvesting, or trading securities, and we do not hold ourselves out as an investment company, we could inadvertently be deemed one under the Investment Company Act. If we are unable to rely on an exclusion, we would be required to register with the SEC, which could impose additional financial and regulatory burdens.

Further, state regulators may conclude that the digital assets we hold are securities under state laws, requiring us to comply with state-specific securities regulations. States like California have stricter definitions of "investment contracts" than the SEC, increasing the risk of additional regulatory scrutiny.

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***The classification of digital assets that we hold as a commodity could subject us to additional CFTC regulation, resulting in significant compliance costs or the cessation of certain operations.***

Under current interpretations, WLD are classified as a commodity under the Commodity Exchange Act and are subject to regulation by the CFTC. If our activities require CFTC registration, we may be required to comply with extensive regulatory obligations, which could result in significant costs and operational disruptions. Additionally, current and future legislative or regulatory developments, including new CFTC interpretations, could further impact how WLD and WLD derivatives are classified and traded.

***We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers. Due to the unregulated nature and lack of transparency surrounding the operations of many digital asset trading venues, digital asset trading venues experience greater risk of fraud, market manipulation and other deceptive marketing practices, as well as security failures or regulatory or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in digital asset trading venues and adversely affect the value of digital assets, and the Company's financial position, operations and prospects.***

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Digital asset trading venues are relatively new and, in many cases, unregulated. For instance, Mutual funds, exchange-traded funds ("ETFs") and their management are subject to extensive regulation as "investment companies" and "investment advisers" under U.S. federal and state law; this regulation is intended for the benefit and protection of investors. We are not subject to, and do not otherwise voluntarily comply with, these laws and regulations. This means, among other things, that the execution of our changes to our digital asset strategy, our use of leverage, our ability to engage in transactions with affiliated parties and our operating and investment activities generally are not subject to the extensive legal and regulatory requirements and prohibitions that apply to investment companies and investment advisers. Therefore, our investors are not protected to the same extent that investors in Mutual Funds and ETFs would be if they were trying to get exposure to WLD through us.

Furthermore, there are many digital asset trading venues that do not provide the public with significant information regarding their ownership structure, management teams, corporate practices and regulatory compliance. As a result, the marketplace may lose confidence in digital asset trading venues, including prominent exchanges that handle a significant volume of such trading and/or are subject to regulatory oversight, in the event one or more digital asset trading venues cease or pause for a prolonged period the trading of digital assets, or experience fraud, significant volumes of withdrawal, security failures or operational problems.

Negative perception, a lack of stability in the broader digital asset markets and the closure, temporary shutdown or operational disruption of digital asset trading venues, lending institutions, institutional investors, institutional miners, custodians, or other major participants in the digital asset ecosystem, due to fraud, business failure, cybersecurity events, government-mandated regulation, bankruptcy, or for any other reason, may result in a decline in confidence in digital assets and the broader digital asset ecosystem and greater volatility in the price of digital assets. The price of our listed securities may be affected by the value of our future digital asset holdings, and the failure of a major participant in the ecosystem could have a material adverse effect on the market price of our listed securities.

***Changes in regulatory interpretations could require us to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns.***

The regulatory regime for digital assets in the U.S. and elsewhere is uncertain. The Company may be unable to effectively react to proposed legislation and regulation of digital assets, which could adversely affect its business.

If regulatory changes or interpretations require us to register as a money services business with The Financial Crimes Enforcement Network ("FinCEN") under the U.S. Bank Secrecy Act, or as a money transmitter under state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance costs and operational burdens. In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine that continued operations are not viable. If we decide to cease certain operations in response to new regulatory obligations, such actions could occur at a time that is unfavorable to investors.

Multiple states have implemented or proposed regulatory frameworks for digital asset businesses. Compliance with such state-specific regulations may increase costs or impact our business operations. Further, if we or our service providers are unable to comply with evolving federal or state regulations, we may be forced to dissolve or liquidate certain operations, which could materially impact our investors.

***The reliance on open-source code by digital asset networks exposes us to risks related to competitive networks and products built on such code, the failure of individuals to maintain that code, and discovery of security vulnerabilities that could threaten the ability of such networks to operate.***

Digital asset networks are open-source projects and, although there may be an influential group of leaders in the network community, generally there is no official developer or group of developers that formally controls the digital asset network. Without guaranteed financial incentives, there may be insufficient resources to address emerging issues, upgrade security or implement necessary improvements to the network in a timely manner. If the digital asset network's software is not properly maintained or developed, it could become vulnerable to security threats, operational inefficiencies and reduced trust, all of which could negatively impact the digital assets' long-term viability and our business.

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***The lack of legal recourse and insurance for digital assets increases the risk of total loss in the event of theft or destruction.***

Digital assets that we acquire will not be insured against theft, loss or destruction. If an event occurs where we lose our digital assets, whether due to cyberattacks, fraud or other malicious activities, we may not have any viable legal recourse or ability to recover the lost assets. Unlike funds held in insured banking institutions, our digital assets are not protected by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. If our digital assets are lost under circumstances that render another party liable, there is no guarantee that the responsible party will have the financial resources to compensate us. As a result, we and our stockholders could face significant financial losses.

***Worldcoin is subject to technological obsolescence, including competition from emerging blockchain and artificial intelligence protocols.***

The digital asset ecosystem is characterized by rapid technological innovation, short development cycles, and intense competition among blockchains and related infrastructure providers. Worldcoin faces intense competition among existing companies and new entrants that are currently being developed. Competitors may in the future offer superior offerings to Worldcoin and may attract developers away from the Worldcoin ecosystem. Advancements in AI and blockchain technology are likely to accelerate the development of competing entities, including the development of networks that natively integrate AI into consensus mechanisms and other core features. If Worldcoin is unable to evolve to address such increased competition or if market participants believe that Worldcoin's core technology stack is outdated or less attractive compared with other companies, Worldcoin may be considered technologically obsolete by the next-generation of protocols. The decline in the Worldcoin network would materially impact the market value of WLD and adversely affect the value of our WLD treasury holdings and our stock price.

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***The emergence or growth of other digital assets, including those with significant private or public sector backing, including by governments, consortiums or financial institutions, could have a negative impact on the price of WLD and adversely affect the Company's securities.***

Following the launch of the Company's proposed digital asset treasury strategy, as a result of our Worldcoin strategy, we expect our assets to be concentrated in WLD holdings. Accordingly, the emergence or growth of digital assets other than WLD, including those with significant private or public sector backing, including by governments, consortiums or financial institutions, may have a material adverse effect on our financial condition.

Many of the blockchain applications on large blockchain networks involve the use of "stablecoins," which are designed to maintain a constant price related to or based on some other asset or traditional currency because of, for instance, their issuers' promise to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury securities) equal to the total value of stablecoins in circulation. In July 2025, the U.S. President signed into law the "GENIUS Act," which establishes a federal framework for "payment stablecoins," treating them as payment systems, not securities, and mandating fiat-backed reserves, monthly disclosures, anti-money laundering safeguards, and similar measures. Stablecoins have grown rapidly as a medium of exchange and store of value, particularly on digital asset trading platforms, and their use as an alternative to digital assets such as bitcoin and WLD could expand further as rules are promulgated under the GENIUS Act. As of June 30, 2025, two of the seven largest digital assets by market capitalization were U.S. dollar-pegged stablecoins. If merchants, consumers and decentralized applications choose stablecoins, the demand for the use case for WLD as a medium of exchange could decrease and, therefore, the value of WLD could decline and there could be an adverse impact on the value of the Company's common stock.

## Exhibit 99.2

**Exhibit 99.2**

 

*This exhibit contains estimates, projections, market research and other information concerning, among other things, our industry, our business, and the digital asset ecosystems in which we operate. Unless otherwise expressly stated, we obtain this information from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, digital asset and general publications, government data and similar sources as well as from our own internal estimates and research and from publications, research, surveys and studies conducted by third parties on our behalf. We believe this information is accurate in all material respects as of the filing date of this exhibit. Information that is based on estimates, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances that are reflected in this information.*

**Worldcoin and the Worldcoin Ecosystem**

***Overview***

Tools for Humanity, a for-profit company, was created to develop and operate the core hardware and software behind the Worldcoin protocol. It established the World Foundation as a separate non-profit entity to steward the protocol. The World Foundation is an open-source digital identity and cryptocurrency platform designed to establish a universal, privacy-preserving proof-of-personhood and to serve as a foundational layer for digital trust in the age of digital assets and technological innovation, like artificial intelligence. The World Foundation operates a protocol and a token layer, WLD, which is the native cryptocurrency of the Worldcoin Foundation network. WLD is used to incentivize participation, facilitate transactions, and support the network's operations. The Worldcoin Foundation was launched with the mission to create a global network of verified humans; it leverages proprietary biometric technology, most notably the Orb, a device that verifies unique human identity through iris scanning, to enable secure, privacy-centric digital identity verification. Tools for Humanity, founded by Sam Altman and others, provides the core technology behind the Worldcoin Foundation, including biometric software, mobile wallet, identity verification hardware, cryptography, security and research and development.

Worldcoin seeks to become a leading platform for digital identity and authentication that addresses the growing challenges of distinguishing humans from bots and artificial intelligence. As of 2025, according to Worldcoin's blog, Worldcoin created more than 17 million zero-knowledge Proof of Human accounts across more than 45 countries, making it one of the largest digital identity projects globally. The Worldcoin ecosystem is believed to be supported by a diverse and expanding community of developers, users, and institutional partners, and is increasingly recognized for its potential to underpin next-generation online trust, verification, and economic exchange.

The Worldcoin network is programmable and interoperable, supporting a range of applications that require secure, decentralized identity-verification. Its zero-knowledge proof technology enables users to prove the accuracy of their data without revealing it (such as, for example, entering a captcha phrase). Sensitive biometric information is not stored on the blockchain, the goal of which is to preserve user privacy while enabling robust authentication. The Orb hardware serves as the backbone of the network, verifying unique humans, distributing WLD, and creating a digital identity system for the AI era.

Worldcoin's ecosystem is growing, with increasing adoption by individuals, enterprises, and institutions seeking reliable digital identity solutions. The platform is also attracting attention from the broader blockchain and cryptocurrency community, as well as from traditional financial and technology sectors interested in integrating secure, decentralized identity verification into their products and services. Worldcoin's programmability and focus on privacy and security make it a compelling choice for a wide range of use cases, from online authentication and access control to digital asset issuance and economic participation.

The Worldcoin community is actively pursuing technological advancements to enhance scalability, security, and usability. Ongoing initiatives are believed to include the development of more efficient biometric verification methods, improvements to the Orb hardware, and the expansion of the network's global reach. However, the Worldcoin ecosystem faces a variety of risks and potential conflicts of interests, including opaque governance, liquidity concerns, regulatory uncertainty related to data and privacy concerns from its biometric verification process, and compliance of its proof-of personhood model with current global KYC/AML requirements, among other risks. Other risks include technological and operational challenges, competition from other digital identity and authentication platforms, and potential vulnerabilities in its biometric and blockchain infrastructure. The value of WLD and the success of the Worldcoin network depend on continued adoption, technological innovation, and the ability to address these risks effectively. See "*Risk Factors*—*Risks Related to Worldcoin*" for additional information.

***Locked WLD***

According to Worldcoin's blog, the total supply of WLD when launched was 10 billion. Before launch, 75% of the total WLD were allocated to the World Foundation (the "WF WLD"), and 25% of the total of WLD were allocated to Tools for Humanity, those individuals linked to the owners of Tools for Humanity, and other early founders of Tools for Humanity (the "TFH WLD"). As of April 2025, about 1.3 billion or 13% of the total supply was in circulation. Accordingly, a significant majority of outstanding WLD is held by the World Foundation, which remains locked.

It is unclear what the WF WLD release schedule is, but it is purportedly determined based upon the number of WLD users in the public. According to Worldcoin's blog, the decision as to when to release the WF WLD currently rests with the World Foundation's Board of Directors. The release schedule for Tools of Humanity, however, is a disclosed 5-year lock-up period (released daily, in a linear fashion). The unlocking of TFH WLD commenced in July of 2023 and will end in July of 2028. However, the original lock-up period was amended by Tools for Humanity from a 3-year period to a 5-year period in 2024 and there is no assurance that this schedule will not be amended again. According to Worldcoin's blog, "governance" currently rests with the World Foundation's Board of Directors. The composition of the Board of Directors is disclosed as Chris Waclawek, Phillip Sippl, Weinberger Ventures GmbH and a Cayman Islands based professional director. It is not disclosed as to how they are compensated, and it is possible they are compensated in WLD. It is also possible that the Board of Directors and the World Foundation employees overlay with or are connected to Tools of Humanity. This structure could lead to certain risks. For example, because there is no transparency as to how the decisions are made related to the user-reward programs, airdrops and the release of WF WLD, there is a risk that they may act in their self-interest, including the risk of inequitable distribution, concentration of token ownership, self-dealing and acting on inside information. According to certain reports, the World Foundation remains closely affiliated with Tools for Humanity. If this is true, this further exacerbates the risks of conflicts of interest within the WLD user community. See "*Risk Factors*—*Risks Related to Worldcoin*—*"Opaque governance, concentration of ownership, and a potential lack of meaningful separation between the World Foundation and Tools for Humanity may create conflicts of interest; material decisions may be made to the detriment of third-party holders of WLD and could also adversely affect the value of WLD and the Company,*" for additional information.

***Regulations***

Depending on the regulatory characterization of Worldcoin, the markets for cryptocurrency in general, and our activities in particular, our business and our Worldcoin acquisition strategy may be subject to regulation by one or more regulators in the United States and globally. Ongoing and future regulatory actions may alter, to a materially adverse extent, the nature of digital assets markets, the participation of industry participants, including service providers and financial institutions in these markets, and our ability to pursue our WLD strategy. Additionally, U.S. state and federal and foreign regulators and legislatures have taken action against industry participants, including digital assets businesses, and enacted restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from digital assets activity.

The Commodities Futures Trading Commission (the "CFTC") takes the position that some digital assets fall within the definition of a "commodity" under the Commodities Exchange Act of 1936, as amended (the "CEA"). Under the CEA, the CFTC has broad enforcement authority to police market manipulation and fraud in spot digital assets markets in which we may transact. Beyond instances of fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges or transactions involving digital asset commodities that do not utilize margin, leverage, or financing. In addition, CFTC regulations and CFTC oversight and enforcement authority apply with respect to futures, swaps, other derivative products and certain retail leveraged commodity transactions involving digital asset commodities, including the markets on which these products trade. See *"Risk Factors—Risks Related to Cryptocurrency—The classification of digital assets that we hold as a commodity could subject us to additional CFTC regulation, resulting in significant compliance costs or the cessation of certain operations"* for more information.

In addition, the Securities and Exchange Commission (the "SEC") has previously indicated that certain digital assets may be considered securities depending on their structure and use. Future developments could change the legal status of digital assets that we may hold, requiring us to comply with securities laws. If the SEC or other regulators determine that digital assets that we may hold qualify as securities, we may be required to change our operations, wind down our operations, or register as an investment company under the Investment Company Act. See *"Risk Factors—Risks Related to Cryptocurrency—If any of the digital assets that we hold are classified as a security, we may be subject to extensive regulation, which could result in significant costs or force us to cease operations"* for more information.

In addition, because transactions in WLD may provide limited degrees of pseudonymity, they could still be susceptible to misuse for criminal activities, such as money laundering or other unlawful activities. This misuse, or the perception of such misuse, could lead to greater regulatory oversight of WLD and WLD platforms, and there is the possibility that law enforcement or regulatory agencies could close WLD platforms or other WLD-related infrastructure with little or no notice, potentially preventing users from accessing or retrieving WLD held via such platforms or infrastructure.

As digital assets have grown in both popularity and market size, the U.S. Executive Branch, Congress and a number of U.S. federal and state agencies, including the Financial Crimes Enforcement Network, the CFTC, the SEC, the Financial Industry Regulatory Authority, the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the Internal Revenue Service and state financial regulators, have been examining the operations of digital asset networks, digital asset users and digital asset exchanges, with particular focus on the extent to which digital assets can be used to violate state or federal laws, including to facilitate the laundering of proceeds of illegal activities or the funding of criminal or terrorist enterprises, and the safety and soundness and consumer-protective safeguards of exchanges or other service-providers that hold, transfer, trade or exchange digital assets for users. There is additional evaluation by agencies of biometric data collection generally, which would impact Worldcoin. There are several states that have or are considering implementing strict biometric privacy laws. For example, Illinois requires written informed consent before collecting or using biometric identifiers, enforced through the Illinois Attorney General's office. Laws are being considered in New York, Vermont, Oregon, among others. Given growing scrutiny of biometric data, and digital assets in general, US federal and state authorities may increase their inquiries and investigations as to the operation of Worldcoin.

In addition, regulators in multiple jurisdictions, including in Europe, Africa, Asia and Latin America, have opened inquiries or expressed concern regarding data protection and privacy related to Worldcoin's biometric collection practices through the Orb iris-scanning device. In Europe, the Bavarian Data Protection Authority (Worldcoin's lead supervisory authority under the GDPR) ordered that EU citizens must be able to delete their biometric data. The Spanish Data Protection Agency separately directed Worldcoin to cease collecting and processing such data in Spain. In Africa, the High Court of Kenya ruled that Worldcoin's biometric collection and processing were unconstitutional, violating the nation's data-protection and privacy laws, and ordered deletion of previously collected data. In Latin America, Argentine authorities fined Worldcoin 194 million pesos for improper handling of biometric data, a sanction imposed by the Ministry of Production, Science and Technological Innovation. In Asia, India's new privacy regime has effectively prevented Worldcoin's operation. The company halted its in-person Orb verification program in late 2023 amid privacy and legal concerns, and soon afterward India enacted the Digital Personal Data Protection Act, 2023, classifying biometric information as sensitive personal data and imposing strict limits on its processing and transfer. Taken together, these actions highlight potential obstacles in the growth and adoption of Worldcoin on a large-scale basis. Worldcoin is operating in an environment of regulatory uncertainty, rising compliance costs, and consistent constraints on its ability to operate and expand internationally. See, for example, "*Risk Factors*—*Risks Related to Worldcoin— Privacy risks from biometric verification are extensive and may lead to significant barriers to entry*" and "—*Opposition and accusations of "data colonialism" toward large-scale biometric systems could limit Worldcoin's acceptance and trigger regulatory backlash*."