# EDGAR Filing Document

**Accession Number:** 0001946957
**File Stem:** 0001683168-23-000750
**Filing Date:** 2023-2
**Character Count:** 516946
**Document Hash:** d406f2096c08cbe3689d34e1eeabeabd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-000750.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001683168-23-000750

**CONFORMED SUBMISSION TYPE**: 1-A/A

**PUBLIC DOCUMENT COUNT**: 25

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Nixplay Inc
- **CENTRAL INDEX KEY:** 0001946957
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **IRS NUMBER:** 882803019
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12011
- **FILM NUMBER:** 23613201

**BUSINESS ADDRESS:**
- **STREET 1:** 12301 WHITEWATER DR STE 115
- **CITY:** MINNETONKA
- **STATE:** MN
- **ZIP:** 55343-3932
- **BUSINESS PHONE:** 7206713895

**MAIL ADDRESS:**
- **STREET 1:** 12301 WHITEWATER DR STE 115
- **CITY:** MINNETONKA
- **STATE:** MN
- **ZIP:** 55343-3932

## Part

**AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF THE COMPANY'S SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.**

 **PRELIMINARY OFFERING CIRCULAR DATED FEBRUARY 10, 2023**

**NIXPLAY, INC.**

![](image_167.jpg)

**12301 Whitewater Dr.** 

**Ste 115**

**Minnetonka, MN 55343-3932**

**Phone: (213) 407-8763**

 **UP TO 2,707,183 SHARES OF COMMON STOCK <sup>(1)</sup>** 

 **PRICE: $6.0949 PER SHARE**

 **MINIMUM INVESTMENT: $505.88, or 83 shares**

**SEE "[SECURITIES BEING OFFERED](#a_017)" AT PAGE 55** 

Nixplay, Inc. is a holding company that owns a 73.77% interest in its various operating subsidiaries. Nixplay Inc. (and its operating subsidiaries) produce smart, Wi-Fi enabled digital photo frames that are supported by the "Nixplay Platform" – our private platform that enables families to share, store, and view their photos, videos, and other digital content through our frames and Nixplay mobile app. Nixplay, Inc. is offering up to 2,461,075 shares of its Common Stock to investors in this offering, plus up to 246,108 Bonus Shares that may be issued to eligible investors. For a summary of the organizational structure of Nixplay Inc. and its operating subsidiaries, please see "[The Company's Business](#a_011)."

The Company's Chief Executive Officer, Mark Palfreeman, beneficially owns 100% of the outstanding capital stock of the Company as of the date of this offering circular. Assuming all 2,461,075 shares of Common Stock are sold in this offering, and the maximum number of Bonus Shares (246,108 shares) are issued, Mr. Palfreeman would own approximately 59.6% of the outstanding capital stock of the Company and a majority of the voting power of all of the Company's equity at the conclusion of this offering.

---

| | | | |
|:---|:---|:---|:---|
|  | **Price to <br> Public**  | **Underwriting<br> discount and<br> commissions <sup>(2)</sup>** | **Proceeds to <br> Issuer**  |
| **Per share of Common Stock <sup>(4)</sup>** | $6.0949 | $0.2438 | $5.8511 |
| **StartEngine Investor Fee Per Share <sup>(3)</sup>** | 0.2133 |  |  |
| **Per Share Plus Investor Fee** | 6.3082 | 0.2438 | 6.0644 |
| **Total Maximum<sup>(3)</sup>** | $15524953 | $600000 | $14400000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company is offering up to 2,461,075 shares of Common Stock,
 plus up to 246,108 additional shares of Common Stock eligible to be issued as Bonus Shares
 (as defined elsewhere in this offering circular). This amount assumes that the maximum amount
 of Bonus Shares are issued in this offering to investors. *See*" [Plan of Distribution and Selling Securityholders](#a_019) " for more information on Bonus Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company has engaged StartEngine Primary, LLC ("StartEngine
 Primary") to act as an underwriter of this offering and its affiliate StartEngine Crowdfunding,
 Inc. to perform administrative and technology-related functions in connection with this offering.
 The Company will pay a cash commission of 4% to StartEngine Primary on sales of Common Stock
 sold through StartEngine Primary (excluding Bonus Shares). The Company will also pay a $15,000
 advance fee for reasonable accountable out of pocket expenses actually anticipated to be
 incurred by StartEngine Primary. Any unused portion of this fee not actually incurred by
 StartEngine Primary will be returned to the Company. FINRA fees will be paid by the Company.
 This does not include processing fees paid directly to StartEngine Primary by investors.
 for details of compensation payable to third parties in connection with the offering. See
 " [Plan of Distribution and Selling Securityholders](#a_019) " for details
 of compensation payable to third parties in connection with this offering on page 18.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Investors will be required to pay directly to StartEngine Primary
 a processing fee equal to 3.5% of the investment amount at the time of the investors'
 subscription (excluding Bonus Shares), up to $700 per investor, and to the extent any investor
 invests more than $20,000, the Company will pay the balance of such 3.5% fee. This fee will
 be refunded in the event the Company does not raise any funds in this offering. See " [Plan of Distribution and Selling Securityholders](#a_019) " for additional discussion of this
 Investor Fee. Assuming the offering is fully subscribed and all investors invest $20,000
 or less, investors would pay StartEngine Primary total Investor Fees of $525,000. This amount
 is included in the Total Maximum offering amount since it counts towards the rolling 12-month
 maximum offering amount that the Company is permitted to raise under Regulation A. However,
 it is not included in the " [Proceeds to Issuer](#a_020) " column of
 the table above.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Does not reflect effective discount that would result from the
 issuance of Bonus Shares. For details of this effective discount, see " [Plan of Distribution and Selling Securityholders](#a_019) ."

 **The Company has engaged The Bryn Mawr Trust Company of Delaware as an escrow agent (the "Escrow Agent") to hold funds tendered by investors. This offering (the "Offering") will terminate at the earlier of the date at which the maximum offering amount has been sold, and the date at which the Offering is earlier terminated by the Company, in its sole discretion. At least every 12 months after this Offering has been qualified by the United States Securities and Exchange Commission (the "Commission"), the Company will file a post-qualification amendment to include the Company's recent financial statements. The Offering is being conducted on a best-efforts basis without any minimum target. There is no minimum number of shares that needs to be sold in order for funds to be released to the Company and for this Offering to close, which may mean that the Company does not receive sufficient funds to cover the cost of this Offering. The Company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be available to the Company.**

 **INVESTING IN THE COMMON STOCK OF NIXPLAY, INC. IS SPECULATIVE AND INVOLVES SUBSTANTIAL RISKS. YOU SHOULD PURCHASE THESE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE "[RISK FACTORS](#a_008)" BEGINNING ON PAGE 4 TO READ ABOUT THE MORE SIGNIFICANT RISKS YOU SHOULD CONSIDER BEFORE BUYING THE COMMON STOCK OF THE COMPANY.**

**THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION**

**GENERALLY NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO <u>www.investor.gov</u>.**

**Sales of these securities will commence on approximately on [ ].**

**This offering is inherently risky. See "[Risk Factors](#a_008)" on page 4.**

**The Company is following the "Offering Circular" format of disclosure under Regulation A.**

**In the event that we become a reporting company under the Securities Exchange Act of 1934, we intend to take advantage of the provisions that relate to "Emerging Growth Companies" under the JOBS Act of 2012. See "[Summary](#a_007) -- Implications of Being an Emerging Growth Company."**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **[Summary](#a_007)** | 1 |
| **[Risk Factors](#a_008)** | 4 |
| **[Dilution](#a_009)** | 16 |
| **[Plan of Distribution and Selling Securityholders](#a_019)** | 18 |
| **[Use of Proceeds to Issuer](#a_010)** | 24 |
| **[The Company's Business](#a_011)** | 25 |
| **[Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_012)** | 44 |
| **[Directors, Executive Officers and Significant Employees](#a_013)** | 51 |
| **[Compensation of Directors and Officers](#a_014)** | 52 |
| **[Security Ownership of Management and Certain Securityholders](#a_015)** | 53 |
| **[Interest of Management and Others in Certain Transactions](#a_016)** | 54 |
| **[Securities Being Offered](#a_017)** | 55 |
| **[Financial Statements](#a_018)** | F-1 |

---

*In this offering circular, unless context indicates otherwise, the terms "Nixplay", "the Company", "we", "us", or "our" refers to Nixplay, Inc. and its subsidiaries on a consolidated basis.* 

 

*Other than in the table on the cover page, dollar amounts have been rounded to the closest whole dollar.*

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

i

**SUMMARY**

**Overview**

Nixplay, Inc. is a corporation formed under the laws of the State of Delaware on June 10, 2022. Nixplay produces smart, Wi-Fi enabled digital photo frames that are supported by the "Nixplay Platform" – our private platform that enables families to share, store, and view their photos, videos, and other digital content through our frames and Nixplay mobile app. Through the Nixplay Platform and our digital photo frames, we have created a content-sharing ecosystem that allows our users to effortlessly store and manage their content and their frame through an easy-to-use mobile app. Nixplay's products and technology are all geared towards helping us achieve our mission, which is to enable our users to share moments of joy and preserve memories.

**The Offering**

---

| | |
|:---|:---|
| Securities offered: | Maximum of 2,461,075 shares of Common Stock, plus an additional 246,108 shares of Common Stock may be offered as Bonus Shares  |
| Minimum Investment: | 83 shares, or $505.88 |
| Securities outstanding before the Offering <br> (as of February 10, 2023):  |  |
| Common Stock | 4,000,000 shares |
| Securities outstanding after the Offering: |  |
| Common Stock (*assuming the maximum offering* <br> *amount is raised*)  | 6,461,075 shares\* |

---

\*Assumes no Bonus Shares are issued in this offering. If the maximum number of Bonus Shares are issued in this offering, the number of shares of Common Stock outstanding after this offering would be 6,707,183.

**Implications of Being an Emerging Growth Company**

We are not subject to the ongoing reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act") because we are not registering our securities under the Exchange Act. Rather, we will be subject to the more limited reporting requirements under Regulation A, including the obligation to electronically file:

&nbsp;&nbsp;&nbsp;&nbsp;· annual reports (including disclosure relating to our business operations for the preceding two fiscal years, or, if in existence for
less than two years, since inception, related party transactions, beneficial ownership of the issuer's securities, executive officers
and directors and certain executive compensation information, management's discussion and analysis ("MD&A") of the
issuer's liquidity, capital resources, and results of operations, and two years of audited financial statements),

&nbsp;&nbsp;&nbsp;&nbsp;· semiannual reports (including disclosure primarily relating to the issuer's interim financial statements and MD&A) and

&nbsp;&nbsp;&nbsp;&nbsp;· current reports for certain material events.

In addition, at any time after completing reporting for the fiscal year in which our offering statement was qualified, if the securities of each class to which this offering statement relates are held of record by fewer than 300 persons and offers or sales are not ongoing, we may immediately suspend our ongoing reporting obligations under Regulation A.

If and when we become subject to the ongoing reporting requirements of the Exchange Act, as an issuer with less than $1.07 billion in total annual gross revenues during our last fiscal year, we will qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and this status will be significant. An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

&nbsp;&nbsp;&nbsp;&nbsp;· will not be required to obtain an auditor attestation on our internal controls over financial reporting pursuant to the Sarbanes-Oxley
Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;· will not be required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and
analyzing how those elements fit with our principles and objectives (commonly referred to as "compensation discussion and analysis");

&nbsp;&nbsp;&nbsp;&nbsp;· will not be required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements
(commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

&nbsp;&nbsp;&nbsp;&nbsp;· will be exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;· may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis
of Financial Condition and Results of Operations, or MD&A; and

&nbsp;&nbsp;&nbsp;&nbsp;· will be eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under Section 107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under Section 107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or such earlier time that we no longer meet the definition of an emerging growth company. Note that this offering, while a public offering, is not a sale of common equity pursuant to a registration statement, since the offering is conducted pursuant to an exemption from the registration requirements. In this regard, the JOBS Act provides that we would cease to be an "emerging growth company" if we have more than $1.07 billion in annual revenues, have more than $700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

Certain of these reduced reporting requirements and exemptions are also available to us due to the fact that we may also qualify, once listed, as a "smaller reporting company" under the Commission's rules. For instance, smaller reporting companies are not required to obtain an auditor attestation on their assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

**Selected Risks Associated with Our Business**

Our business expects to be subject to a number of risks and uncertainties, including those highlighted in the section titled "[Risk Factors](#a_008)" immediately following this summary. These risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are subject to data protection requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement and investors' rights agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under these agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We rely on third parties to provide services essential to the success of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We expect to raise additional capital through equity and/or debt offerings to support our working capital requirements and operating losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We face legal and operational risks related to our operations in Hong Kong.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are subject to intense competition in the industry in which we operate,
which could cause material reductions in the selling price of our products or losses of our market share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investors in this offering must vote their shares to approve of certain future events, including our sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· This investment is illiquid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are dependent on certain key personnel and loss of these key personnel
could have a material adverse effect on our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investors will be minority owners in our Company. Voting control of the Company is held by our
 Chief Executive Officer.

· There is a possibility that our Company may lose eligibility to rely on the exemption provided by Regulation A under the Securities
 Act during the course of this offering, which could result in us being required to terminate this offering prematurely.

· We are offering Bonus Shares to some investors in this offering, which effectively gives them a discount on their investment.

**RISK FACTORS**

The SEC requires the Company to identify risks that are specific to its business and its financial condition. The Company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as cyber-attacks and the ability to prevent those attacks). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

**Risks Related to our Business and Industry**

***If we are unsuccessful in establishing and increasing awareness of our brand and recognition of our products, or if we incur excessive expense promoting and maintaining our brand or our products, our potential revenues could be limited, our costs could increase and our operating results and financial condition would be harmed.***

We believe that acceptance of our products by an expanding customer base depends in large part on increasing awareness of the Nixplay brand and that brand recognition will be even more important as competition in our market increases. Successful promotion of our brand depends largely on the effectiveness of our marketing efforts and on our ability to develop reliable and quality products at competitive prices, as well as our ability to improve, expand, and grow the Nixplay Platform. In addition, globalizing and extending our brand and recognition of our products and services is costly and involves extensive management time to execute successfully. Further, the markets in which we operate are highly competitive. Our future promotion activities may involve significant expense and may not generate desired levels of increased revenue, and even if such activities generate some increased revenue, such increased revenue may not offset the expenses we incurred in endeavoring to build our brand. If we fail to successfully promote and maintain our brand, or incur substantial expenses in our attempts to promote and maintain our brand, we may fail to attract enough new customers or retain our existing customers to the extent necessary to realize a sufficient return on our brand-building efforts, and as a result our operating results and financial condition would suffer.

***We may be subject to declining average selling prices, which may harm our results of operations.***

Consumer electronic devices such as those we offer are from time to time subject to declines in average selling prices due to evolving technologies, industry standards and consumer preferences. Consumer electronics products are subject to technological changes, which often cause product obsolescence. Companies within the consumer electronics industry are continuously developing new products with heightened performance and functionality. This puts pricing pressure on existing products and threatens to make them, or causes them to become, obsolete.

If we fail to accurately anticipate the introduction of new technologies, we may possess obsolete inventory that can only be sold at lower prices and profit margins than we anticipated. In addition, if we fail to accurately anticipate the introduction of new technologies, we may be unable to compete effectively due to our failure to offer products most demanded by the marketplace. If any of these failures occur, our sales, profit margins and profitability will be adversely affected.

 ***If we are not successful in raising proceeds from this offering, it will have a material negative impact on our Company's plan of operations and financial condition.***

We are dependent upon the proceeds from this offering to successfully carry out our plan of operations. If we sell less than the maximum amount of Common Stock in this offering, we will have less funds available to us to implement our business strategy, which increases the risk we will not be able to achieve our operational goals described elsewhere in this offering circular. Additionally, if we do not raise the maximum offering amount, it could have a material negative impact on our current operations and financial condition, which may force us to scale down certain aspects of our business and could ultimately have a negative impact on our results of operations going forward. There can be no assurance that we will generate the level of financing needed to complete our business objectives from this offering. Investors should be aware of the risks to our Company if we are unsuccessful in raising proceeds from this offering.

***We are subject to intense competition in the industry in which we operate, which could cause material reductions in the selling price of our products or losses of our market share.***

The consumer electronics industry is highly competitive, especially with respect to pricing and the introduction of new products and features. Our products compete in the medium- to high- priced sector of the consumer electronics market and compete primarily on the basis of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· reliability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· brand recognition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· design; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· quality service and support to retailers and our customers.

Our competitors may be able to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· adapt more quickly to new or emerging technologies and changes in customer requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· devote greater resources to the promotion and sale of their products and services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· respond more effectively to pricing pressures.

These factors could materially adversely affect our operations and financial condition. In addition, competition could increase if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· new companies enter the market (particularly companies with greater brand recognition and/or greater managerial, financial, marketing, or technical resources than us);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· existing competitors expand their product mix; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we expand into new markets.

An increase in competition could result in material price reductions or loss of our market share.

***Our revenues and earnings could be materially and adversely affected if we cannot anticipate market trends or enhance existing products or achieve market acceptance of new products.***

Consumers for electronic devices such as our digital photo frames have other options to choose from and we must compete with other producers of digital photo frames in order to sell our products and generate revenues. Our success is dependent on our ability to successfully anticipate and respond to changing consumer demands and trends in a timely manner. We may not be successful in effectively marketing our products, and we may not be successful in developing new products and/or updating our existing products in response to technological developments or changing customer needs and preferences. In either case, our sales volume may decline and our earnings could be materially and adversely affected. In addition, new products or enhancements by our competitors may cause customers to defer or forego purchases of our products, which could also materially and adversely affect our revenues and earnings.

***If we do not correctly forecast demand for our products, we could have costly excess production or inventories and we may not be able to secure sufficient or cost effective quantities of our products or production materials and our revenues, cost of revenues and financial condition could be adversely affected.***

The demand for our products depends on many factors, including pricing and inventory levels, and is difficult to forecast due in part to variations in economic conditions, changes in consumer and business preferences, relatively short product life cycles, changes in competition, seasonality and reliance on key third party carriers. Our inability to correctly forecast demand for our products could result in costly excess production or inventories or the inability to secure sufficient, cost-effective quantities of our products or production materials. This could adversely impact our revenues, cost of revenues and financial condition.

***Our products may contain errors or defects, which could result in the rejection of our products, damage to our reputation, lost revenues, diverted development resources and increased service costs, warranty claims and litigation.***

Our products are complex and must meet stringent user requirements. In addition, we must develop our products to keep pace with the rapidly changing technologies. Sophisticated electronic products like ours may contain undetected errors or defects, especially when first introduced or when new models or versions are released. Our products may not be free from errors or defects after commercial shipments have begun, which could result in the rejection of our products and jeopardize our relationship with carriers. End users may also reject or find issues with our products and have a right to return them even if the products are free from errors or defects. In either case, returns or quality issues could result in damage to our reputation, lost revenues, diverted development resources, increased customer service and support costs, and warranty claims and litigation which could harm our business, results of operations and financial condition.

***The loss or significant reduction in business of any of our key customers could materially and adversely affect our revenues and earnings.***

Amazon (Vendor) and Best Buy accounted for 51% and 9% of our total sales, respectively, during the year ended December 31, 2021. All purchases of our products by customers are made through purchase orders and we do not have long-term contracts with any of our customers. It is possible that these customers could discontinue purchases of our products. While we believe we could potentially recoup all or a majority of these sales through direct sales to customers on these retailer's marketplaces in such an event, there is no guarantee we would be able to match the level of sales made to these retailers' purchases of our products. The loss of the above customers, or any of our other customers to which we sell a significant amount of our products or any significant portion of orders from the above customers, or such other customers or any material adverse change in the financial condition of such customers could negatively affect our revenues and decrease our earnings.

We cannot rely on long-term purchase orders or commitments to protect us from the negative financial effects of a decline in demand for our products. The limited certainty of product orders can make it difficult for us to forecast our sales and allocate our resources in a manner consistent with our actual sales. Moreover, our expense levels are based in part on our expectations of future sales and, if our expectations regarding future sales are inaccurate, we may be unable to reduce costs in a timely manner to adjust for sales shortfalls.

***The loss or significant reduction in business on any of our sales channels could materially and adversely affect our revenue and earnings.***

We are highly dependent on third party sales channels to distribute and sell our products. In 2021 84% of our sales were through third party sales channels such as Amazon, Best Buy, Walmart etc. Loss of access to these sales channels will impact the long term ability to generate profit.

 ****

***Certain disruptions in supply of and changes in the competitive environment for raw materials integral to our products may adversely affect our profitability.***

We use a broad range of materials and supplies, including displays, Wifi modules, and other electronic components in our products. A significant disruption in the supply of these materials could decrease production and shipping levels, materially increase our operating costs and materially adversely affect our profit margins. Shortages of materials or interruptions in transportation systems, labor strikes, work stoppages, war, acts of terrorism or other interruptions to or difficulties in the employment of labor or transportation in the markets in which we purchase materials, components and supplies for the production of our products, in each case may adversely affect our ability to maintain production of our products and sustain profitability. If we were to experience a significant or prolonged shortage of critical components from any of our suppliers and could not procure the components from other sources, we would be unable to meet our production schedules for some of our key products and to ship such products to our customers in a timely fashion, which would adversely affect our sales, margins and customer relations.

***Our operations would be materially adversely affected if third-party carriers were unable to transport our products on a timely basis.***

All of our products are shipped through third party carriers. If a strike or other event prevented or disrupted these carriers from transporting our products, other carriers may be unavailable or may not have the capacity to deliver our products to our customers. If adequate third party sources to ship our products were unavailable at any time, our business would be materially adversely affected.

***The seasonality of our business, as well as changes in consumer spending and economic conditions, may cause our quarterly operating results to fluctuate and cause our stock price to decline.***

Our net revenue and operating results may vary significantly from year to year. The main factors that may cause these fluctuations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· seasonal variations in operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· variations in the sales of our products to our significant customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· increases in returned consumer electronics products in the first quarter which follows our peak third and fourth quarter sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· if we are unable to correctly anticipate and provide for inventory requirements, we may not have sufficient inventory to deliver our products to our customers in a timely fashion or we may have excess inventory that we are unable to sell;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the discretionary nature of our customers' demands and spending patterns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in market and economic conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· competition.

In addition, our quarterly operating results could be materially adversely affected by political instability, war, acts of terrorism or other disasters.

Sales of our products are somewhat seasonal due to consumer spending patterns, which tend to result in significantly stronger sales in our third and fourth fiscal quarters, especially as a result of the holiday season. This pattern will probably not change significantly in the future. Although we believe that the seasonality of our business is based primarily on the timing of consumer demand for our products, fluctuations in operating results can also result from other factors affecting us and our competitors, including new product developments or introductions, availability of products for resale, competitive pricing pressures, changes in product mix, pricing and product reviews. Due to the seasonality of our business, our results for interim periods are not necessarily indicative of our results for the year.

As a result of these and other factors, revenues for any interim period are subject to significant variation, which may adversely affect our results of operations and the market price for our common stock.

***We are dependent on certain key personnel and loss of these key personnel could have a material adverse effect on our business, financial condition and results of operations.***

Our success is, to a certain extent, attributable to the management, sales and marketing, and operational and technical expertise of certain key personnel. Each of the named executive officers performs key functions in the operation of our business. The loss of a significant number of these employees could have a material adverse effect upon our business, financial condition, and results of operations.

***Our failure to attract and retain highly qualified personnel in the future could harm our business.***

As the Company grows, it will be required to hire and attract additional qualified professionals such as regulatory professionals, tech professionals, sales and marketing professionals, accounting, and finance experts. We may not be able to locate or attract qualified individuals for such positions, which will affect our ability to grow and expand our business.

***If we fail to comply with federal, state, and foreign laws relating to privacy and data protection, we may face potentially significant liability, negative publicity, an erosion of trust, and increased regulation, any of which could materially adversely affect our business, results of operations, and financial condition.***

 ****

Privacy and data protection laws, rules, and regulations are complex, and their interpretation is rapidly evolving, making implementation and enforcement, and thus compliance requirements, ambiguous, uncertain, and potentially inconsistent. Compliance with such laws may require changes to our data collection, use, transfer, disclosure, other processing, and certain other related business practices and may thereby increase compliance costs or have other material adverse effects on our business. As part of the registration process for our Nixplay Platform, we may collect and use personal data, such as names, dates of birth, email addresses, phone numbers, photos and videos, as well as payment card or other financial information that users of the Nixplay Platform provide to us for registration purposes. The laws of many states and countries require businesses, which maintain such personal data to implement reasonable security measures to keep such information secure and otherwise restrict the ways in which such information can be collected, processed, disclosed, transferred and used.

The U.S. government, including Congress, the Federal Trade Commission and the Department of Commerce, has announced that it is reviewing the need for greater regulation for the collection of information concerning consumer behavior on the Internet, including regulation aimed at restricting certain targeted advertising practices. In addition, numerous states have enacted or are in the process of enacting state level data privacy laws and regulations governing the collection, use, and processing of state residents' personal data. For example, the California Consumer Privacy Act (the "CCPA") took effect on January 1, 2020. The CCPA establishes a new privacy framework for covered businesses such as ours, and may require us to modify our data processing practices and policies and incur compliance related costs and expenses. The CCPA provides new and enhanced data privacy rights to California residents, such as affording consumers the right to access and delete their information and to opt out of certain sharing and sales of personal information. The law also prohibits covered businesses from discriminating against consumers (for example, charging more for services) for exercising any of their CCPA rights. The CCPA imposes potentially severe statutory damages as well as a private right of action for certain data breaches that result in the loss of personal information. This private right of action is expected to increase the likelihood of, and risks associated with, data breach litigation. It remains unclear how various provisions of the CCPA will be interpreted and enforced. In November 2020, California voters passed the California Privacy Rights and Enforcement Act of 2020 (the "CPRA"). The CPRA further expands the CCPA with additional data privacy compliance requirements that may impact our business, and establishes a regulatory agency dedicated to enforcing those requirements. Further, on March 2, 2021, Virginia enacted the Virginia Consumer Data Protection Act (the "CDPA"), a comprehensive privacy statute that shares similarities with the CCPA and CPRA. Similar laws have been proposed in other states and at the federal level, reflecting a trend toward more stringent privacy legislation in the United States. The effects of the CCPA, CPRA, CDPA, and any enactment of any other similar state or federal laws, are and will continue to be significant and may require us to modify our data processing practices and policies and may thereby increase compliance costs (and our potential liability) or have other material adverse effects on our business.

In the European Union, the GDPR, which became effective on May 25, 2018, which, among other things, obligates us to handle and safeguard all personal data we collected from EU residents in accordance with the GDPR for as long as we retain such personal data. This obligation extends to compliance with laws, rules, and regulations regarding cross-border transfers of personal data.

Failure to comply with the GDPR may result in fines of up to 20 million Euros or up to 4% of the annual global revenue of the infringer, whichever is greater. It may also lead to civil litigation, with the risks of damages or injunctive relief, or regulatory orders adversely impacting the ways in which our business can use personal data. Canada is in the process of passing comparable or other robust data privacy legislation or regulation, which may lead to additional costs and increase our overall risk exposure.

Various other governments and consumer agencies around the world have also called for new regulation and changes in industry practices and many have enacted different and often contradictory requirements for protecting personal information collected and maintained electronically. Compliance with numerous and contradictory requirements of different jurisdictions is difficult and costly for a business such as ours, which collects personal information from our users. If any jurisdiction in which we operate adopts news laws or changes its interpretation of its laws, rules, or regulations relating to data residency or localization such that we are unable to comply in a timely manner or at all, we could risk losing our rights to operate in such jurisdictions. While we have invested and continue to invest significant resources to comply with applicable privacy regulations around the world, many of these regulations expose us to the possibility of material penalties, significant legal liability, changes in how we operate or offer our products, and interruptions or cessation of our ability to operate in key geographic regions, any of which could materially adversely affect our business, results of operations, and financial condition.

Any failure or perceived failure by us to comply with privacy and data protection policies, notices, laws, rules, and regulations could result in proceedings or actions against us by individuals, government agencies, or others. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. Further, these proceedings and any subsequent adverse outcomes may subject us to significant negative publicity, and an erosion of trust. If any of these events were to occur, our business, results of operations, and financial condition could be materially adversely affected.

***If we or our third-party service providers fail to prevent data security breaches, there may be damage to our brand and reputation, material financial penalties, and legal liability, along with a decline in use of our platform, which would materially adversely affect our business, results of operations, and financial condition.***

 ****

Our cybersecurity measures may not detect or prevent all attempts to compromise our systems, including denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering, security breaches or other attacks and similar disruptions that may jeopardize the security of information stored in and transmitted by our systems or that we otherwise maintain. Breaches of our cybersecurity measures could result in any of the following: unauthorized access to our systems; unauthorized access to and misappropriation of information or data, including confidential or proprietary information about ourselves, third parties with whom we do business or our proprietary systems; viruses, worms, spyware or other malware being placed in our systems; deletion or modification of client information; or a denial-of-service or other interruptions to our business operations. Because techniques used to obtain unauthorized access to or sabotage systems change frequently and may not be known until launched against us or our third-party service providers, we may be unable to anticipate these attacks or to implement adequate preventative measures. While we have not suffered any material breach of our cybersecurity, any actual or perceived breach of our cybersecurity could damage our reputation, expose us to a risk of loss or litigation and possible liability, require us to expend significant capital and other resources to alleviate problems caused by such breaches and otherwise have a material adverse effect on our business, financial condition, results of operations and cash flows.

***We may become involved in litigation to protect our intellectual property or enforce our intellectual property rights, which could be expensive, time-consuming and may not be successful.***

Competitors may infringe our patents or misappropriate or otherwise violate our intellectual property rights. To counter infringement or unauthorized use, we may engage in litigation to, among others, enforce or defend our intellectual property rights, determine the validity or scope of our intellectual property rights and those of third parties, and protect our trade secrets. Such actions may be time-consuming and costly and may divert our management's attention from our core business and reduce the resources available for our development, manufacturing and marketing activities, and consequently have a material and adverse effect on our business and prospects, regardless of the outcome.

In addition, in an infringement proceeding, a court may decide that a patent owned by, or licensed to, us is invalid or unenforceable, or may refuse to stop the other party from using the technology in question on the ground that our patents do not cover such technology. An adverse result in any litigation proceeding could put one or more of our patents at risk of being invalidated, held unenforceable or interpreted narrowly. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that our confidential information may be compromised by disclosure.

***We may be subject to claims from third parties that our products infringe their intellectual property rights.***

Our commercial success depends in large part upon our ability to manufacture, market and sell our products without infringing on the patents or other proprietary rights of third parties. It is not always clear to industry participants, including us, what the scope of a patent covers. There is always a risk that third parties will claim that our product or technologies infringe their intellectual property rights.

Claims for infringement of intellectual property which are brought against us, whether with or without merit, and which are generally uninsurable, could result in time-consuming and costly litigation, diverting our management's attention from our core business and reducing our resources for business development activities, and consequently have a material and adverse effect on our business and prospects, regardless of the outcome. Moreover, such proceedings could put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not being issued. We also may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Uncertainties resulting from the initiation and continuation of litigation or other proceedings could also have a material and adverse effect on our ability to compete in the market. Third parties making claims against us could obtain injunctive or other equitable relief against us, which could prevent us from further developing or commercializing our product candidates.

Infringement claims may be brought against us in the future, and we cannot assure you that we will prevail in any ensuing litigation given the complex technical issues and inherent uncertainties involved in intellectual property litigation. Our competitors may have substantially greater resources than we do and may be able to sustain the costs of such litigation more effectively than we can.

 **Risks Related to our Operations in Hong Kong**

Our Company faces various economic, operational and legal risks because of our corporate structure and our current operations in Hong Kong, which is subject to political and economic influence from mainland China, including the following:

 ***Changes in the political and economic policies of the PRC government may materially and adversely affect our Company's business, financial condition and results of operations and may result in our Company's inability to sustain its growth and expansion strategies.***

Substantial aspects of our business and operations are currently conducted in Hong Kong through our Hong-Kong based subsidiary, Creedon Technologies HK Limited. While we intend to transfer more of these business functions into the United States in the near future, certain important business operations will remain in Hong Kong, including our operations related to our product hardware and designs. This will increase our Company's sensitivity to the economic, operational and legal risks specific to China. The PRC government continues to play a significant role in regulating industry development by imposing industrial policies and exercising significant control over the PRC economic growth through allocating resources, controlling payments of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.

It is unclear whether and how our Company's current or future business, prospects, financial condition or results of operations may be affected by changes in China's economic, political and social conditions and in its laws, regulations and policies. In addition, many of the economic reforms carried out by the Chinese government are unprecedented or experimental and are expected to be refined and improved over time. This refining and improving process may not necessarily have a positive effect on our Company's operations and business development.

 ***Uncertainties with respect to the Chinese legal system, regulations and enforcement policies could have a material adverse effect on our Company's ability to enforce its legal rights.***

The PRC government has sovereignty over Hong Kong. As the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties. From time to time, our Hong Kong-based subsidiary may have to resort to administrative and court proceedings to enforce our legal rights. However, since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems. Such uncertainties could materially and adversely affect our business, impede our Hong Kong-based subsidiary's operations and reduce the value of your investment in our Company.

 ***Changes in the laws and regulations of China or noncompliance with applicable laws and regulations may have a significant impact on our business, results of operations and financial condition.***

The PRC government has sovereignty over Hong Kong, and Hong Kong's legislature adopts laws that are congruent with PRC government policies and laws. For this reason, our Company's operations in Hong Kong may become subject to the laws and regulations of China, which continue to evolve. For example, on January 9, 2021, China's Ministry of Commerce ("MOFCOM") issued the Rules on Blocking Improper Extraterritorial Application of Foreign Legislation and Other Measures (the "Blocking Rules"), which established a blocking regime in China to counter the impact of foreign sanctions on Chinese persons. The Blocking Rules have become effective upon issuance, but have only established a framework of implementation, and the rules' effects will remain unclear until the Chinese government provides clarity on the specific types of extraterritorial measures to which the rules will apply. At this time, we do not believe our Hong Kong-based subsidiary would be considered a Chinese person, and we do not know the extent to which the Blocking Rules will impact the operations of our Hong Kong-based subsidiary. There is no assurance that, if these are applicable to our Hong Kong-based subsidiary, that this subsidiary will be able to comply fully with applicable laws and regulations should there be any amendment to the existing regulatory regime or implementation of any new laws and regulations. In addition, the interpretations of many laws and regulations are not always uniform and enforcement of these laws and regulations involve uncertainties.

The continuance of our Hong Kong-based subsidiary's operations depends upon compliance with, among other things, applicable Chinese environmental, health, safety, labor, social security, pension and other laws and regulations. Failure to comply with such laws and regulations could result in fines, penalties or lawsuits.

Furthermore, our business and operations in Hong Kong entail the procurement of licenses and permits from the relevant authorities. Rapidly evolving laws and regulations and inconsistent interpretations and enforcements thereof could impede our Hong Kong-based subsidiary's ability to obtain or maintain the required permits, licenses and certificates required to conduct our business in Hong Kong. Difficulties or failure in obtaining the required permits, licenses and certificates could result in our Hong Kong-based subsidiary's inability to continue our business in Hong Kong in a manner consistent with past practice. In such an event, our business, results of operations and financial condition may be adversely affected.

  **

***Our Company is a holding company and, in the future, may rely on dividends and other distributions on equity paid by the Hong Kong-based subsidiary to fund any cash and financing requirements that our Company may have. Any restrictions on our Hong Kong-based subsidiary's ability to pay dividends or make other payments to our Company could restrict our Company's ability to satisfy its liquidity requirements and have a material adverse effect on our Company's ability to conduct its business.***

  **

Our Company is a holding company and conducts all of its business through its operating subsidiaries. Our Company may in the future need to rely on dividends and other distributions paid by its operating subsidiaries, including the Hong Kong-based subsidiary, to fund any cash and financing requirements our Company may have. Neither our Company nor our predecessor company (Nixplay Cayman) has received dividends or other distributions from its subsidiaries (including its Hong Kong-based subsidiary) to date. Nonetheless, any limitation on the ability of the Hong Kong-based subsidiary to make payments to our Company, including but not limited to foreign currency controls, could have a material and adverse effect on our Company's business, prospects, financial condition and results of operation, including our Company's ability to conduct business, or limit our Company's ability to grow.

 **

  ****

 **

  **

***U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in Hong Kong.***

  **

The SEC, the U.S. Department of Justice and other U.S. authorities may have difficulties in bringing and enforcing actions against our Hong Kong-based subsidiary or the directors or executive officers of our Hong Kong-based subsidiary. The SEC has stated that there are significant legal and other obstacles to obtaining information needed for investigations or litigation in China. China has recently adopted a revised securities law that became effective on March 1, 2020, Article 177 of which provides, among other things, that no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. Accordingly, without governmental approval in China, no entity or individual in China may provide documents and information relating to securities business activities to overseas regulators when it is under direct investigation or evidence discovery conducted by overseas regulators, which could present significant legal and other obstacles to obtaining information needed for investigations and litigation conducted outside of China.

  ****

 ***There may be difficulties in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments or bringing original actions in Hong Kong based on United States or other foreign laws against us and our management.***

One of our Company's executive officers (our CFO) splits his time between Hong Kong and the United States. We also currently have operations in Hong Kong through our Hong Kong-based subsidiary (Creedon Technologies HK Limited). It may not be possible to effect service of process within the United States or elsewhere outside of China with regard to any persons or assets of our Company in Hong Kong, including actions arising under applicable U.S. federal and state securities laws. In addition, there are significant legal and other obstacles in China to providing information needed for regulatory investigations or litigation initiated by regulators outside China. Overseas regulators may have difficulties in conducting investigations or collecting evidence within China. It may also be difficult for investors to bring a lawsuit against us in a Chinese court based on U.S. federal securities laws. Moreover, China does not have treaties with the United States providing for the reciprocal recognition and enforcement of judgments of courts. Therefore, even if a judgment were obtained against us or our management for matters arising under U.S. federal or state securities laws or other applicable U.S. federal or state law, it may be difficult to enforce such a judgment with respect to our operations, persons, or assets physically located in Hong Kong.

**Risks Related to the Securities in this Offering**

***The subscription agreement has a forum selection provision that requires disputes be resolved in state or federal courts in the State of Delaware, regardless of convenience or cost to you, the investor.***

 ****

In order to invest in this offering, investors agree to resolve disputes arising under the subscription agreement other than those arising under the federal securities laws in state or federal courts located in the State of Delaware, for the purpose of any suit, action or other proceeding arising out of or based upon the agreement. This forum selection provision may limit your ability to obtain a favorable judicial forum for disputes with us. Although we believe the provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies and in limiting our litigation costs, to the extent it is enforceable, the forum selection provision may limit investors' ability to bring claims in judicial forums that they find favorable to such disputes, may increase investors' costs of bringing suit and may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the provision inapplicable to, or unenforceable in an action, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial condition or results of operations. You will not be deemed to have waived the Company's compliance with the federal securities laws and the rules and regulations thereunder.

***Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under the agreement.***

 ****

Investors in this offering will be bound by the subscription agreement, which includes a provision under which investors waive the right to a jury trial of any claim they may have against the Company arising out of or relating to the agreement other than those arising under the federal securities laws.

If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. In determining whether to enforce a contractual pre-dispute jury trial waiver provision, courts will generally consider whether the visibility of the jury trial waiver provision within the agreement is sufficiently prominent such that a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to the subscription agreement. You should consult legal counsel regarding the jury waiver provision before entering into the subscription agreement.

If you bring a claim not arising under the federal securities laws against the Company in connection with matters arising under the subscription agreement, you may not be entitled to a jury trial with respect to those claims, which may have the effect of limiting and discouraging lawsuits against the Company. If a lawsuit is brought against the Company under the agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have had, including results that could be less favorable to the plaintiff(s) in such an action.

Nevertheless, if the jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms of the agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of the Company's securities or by the Company of compliance with any substantive provision of the federal securities laws and the rules and regulations promulgated under those laws.

***We expect to raise additional capital through equity and/or debt offerings to support our working capital requirements and operating losses***.

In order to fund future growth and development, the Company will likely need to raise additional funds in the future by offering shares of its common or preferred stock and/or other classes of equity or debt that convert into shares of common or preferred stock as the Company may authorize in the future, any of which offerings would dilute the ownership percentage of investors in this offering. See "[Dilution](#a_009)." Furthermore, if the Company raises debt, the holders of the debt would have priority over holders of Common Stock and the Company may accept terms that restrict its ability to incur more debt. We cannot assure you that the necessary funds will be available on a timely basis, on favorable terms, or at all, or that such funds if raised, would be sufficient. The level and timing of future expenditure will depend on a number of factors, many of which are outside our control. If we are not able to obtain additional capital on acceptable terms, or at all, we may be forced to curtail or abandon our growth plans, which could adversely impact the Company, its business, development, financial condition, operating results or prospects.

***This investment is illiquid.***

There is no currently established market for reselling these securities. If you decide that you want to resell these securities in the future, you may not be able to find a buyer.

***The value of your investment may be diluted if the Company issues additional classes of securities.***

In order to advance its program, the Company is likely to raise funds again in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the Company.

***Some investors have more rights than others.***

 ****

Pursuant to the terms of the Investors' Rights Agreement that investors must sign in order to purchase shares of our Common Stock, investors who invest $100,000 or more in this offering will be provided the right to participate in future financings on more favorable terms compared to investors that invest less than $100,000.

***Investors in this offering must vote their shares to approve of certain future events, including our sale.***

The Investors' Rights Agreement that purchasers of Common Stock must sign will contain a "drag-along provision" related to the sale of the Company whereby investors and their transferees agree to vote any shares they own in the same manner as the majority holders of our other classes of voting stock. Specifically, and without limitation, if the board of directors and majority holders of our other classes of stock may determine to sell the Company, depending on the nature of the transaction, investors will be forced to sell their stock in that transaction regardless of whether they believe the transaction is the best or highest value for their shares, and regardless of whether they believe the transaction is in their best interests. Furthermore, if the consideration in such a sale includes securities and an investor's receipt of such securities requires registration or qualification under securities laws or the provision to the investor of any information other than such information as would generally be available in an offering under Regulation D, the Company may instead pay the investor in cash in lieu of such securities.

***Investors will be minority owners in our Company. Voting control of the Company is held by our Chief Executive Officer.***

Our Chief Executive Officer, Mark Palfreeman, beneficially owns 100% of the Common Stock of the Company as of the date of this offering circular, representing 100% of the outstanding capital stock of the Company as of the date of this offering circular. Even if the maximum number of shares of Common Stock are sold in this offering, and the maximum number of Bonus Shares are issued, Mr. Palfreeman will still have majority voting control of the Company. Therefore, investors in this offering will have a limited ability to influence our policies or any other corporate matter, including the election of directors, changes to our Company's governance documents, expanding the employee option pool, and any merger, consolidation, sale of all or substantially all of our assets, or other major action requiring stockholder approval.

 ***We are offering Bonus Shares to certain investors in this offering, which effectively gives them a discount on their investment.***

As described in "Plan of Distribution and Selling Securityholders -- Bonus Shares for Eligible StartEngine OWNers," investors in this offering who are StartEngine OWNers are eligible to receive 10% additional shares of Common Stock for their shares purchased ("Bonus Shares"), which effectively gives them a discount on the price paid per share. As such, the value of shares of investors in this offering who do not receive any Bonus Shares, and therefore pay the full price for all shares of Common Stock they receive in this offering, will be immediately diluted by investments made by investors entitled to receive the Bonus Shares, who will effectively pay less per share.

***There is a possibility that our Company may lose eligibility to rely on the exemption provided by Regulation A under the Securities Act during the course of this offering, which could result in us being required to terminate this offering prematurely.***

 ****

Regulation A provides an exemption from the registration requirements of the Securities Act for issuers with their "principal place of business" in the United States or Canada. An issuer's "principal place of business" is considered to be the place from which its officers, partners, or managers primarily direct, control and coordinate the issuer's activities. As described under the "The Company's Business" section of this offering circular, the Company is currently in the process of transitioning its operational hub from Hong Kong (under Creedon Technologies HK Limited) to the United States (under Nixplay, Inc.) and is still in the process of obtaining the appropriate work visas to be employed directly by the Company. Our executive officers have work visas enabling them to work at Creedon Technologies USA, LLC, the Company's United States operating subsidiary (under that entity's L-1 Blanket visa). As such, our Company is contracting with Creedon Technologies USA, LLC for management services pursuant to an agreement (the "Services Agreement") until such time as those executive officers are able to obtain work visas enabling them to work directly at the Company. However, there is no guarantee those executive officers will be able to obtain such work visas, or once obtained, be able to renew them prior to their expiration. Additionally, there is no guarantee our executive officers will be able to renew their current work visas prior to their expiration, or at all. For example, the US work visa of our CEO, Mark Palfreeman, is set to expire in August 2023. There are also important non-executive officer members of our team that currently cannot work directly for our Company. Additionally, our current management structure creates a degree of complexity with respect to whether we meet the "principal place of business" requirements set forth above. For example, while our CEO and CFO intend to work full-time in the United States at the Company in the future, our CEO currently splits his time between the United States and the United Kingdom, and our CFO currently splits his time between Hong Kong and the United States. It is possible that, going forward, we could believe we meet the "principal place of business" criteria described above, but the Commission could disagree with our view. As a result of the above factors, we may fail to meet the "principal place of business" requirement above, lose our eligibility to conduct a Regulation A offering, and be required to terminate this offering. Such events would impair our ability to raise capital from this offering, and may force us seek other sources of capital by utilizing other methods of capital raising. This could divert our management's attention from running the Company's core business, lead to additional expenses the Company is not currently accounting for, and could negatively impact our plan of operations following this offering, including delaying our current goal timelines, or potentially causing us to forego certain planned operations or goals entirely. Investors should be aware of the potential risks associated with us losing eligibility to conduct this offering.

 ***Using a credit card to purchase shares may impact the return on your investment as well as subject you to other risks inherent in this form of payment.***

 ****

  ****Investors in this offering have the option of paying for their investment with a credit card. Interest charged on unpaid card balances (which can reach almost 25% in some states) may add to the effective purchase price of the shares you buy. The cost of using a credit card may also increase if you do not make the minimum monthly card payments and incur late fees. Using a credit card will subject you to other risks inherent in this form of payment, including that, if you fail to make credit card payments (e.g. minimum monthly payments), you risk damaging your credit score and payment by credit card may be more susceptible to abuse than other forms of payment. Moreover, where a third-party payment processor is used, as in this offering, your recovery options in the case of disputes may be limited.

The SEC's Office of Investor Education and Advocacy issued an Investor Alert dated February 14, 2018 entitled: Credit Cards and Investments – A Risky Combination, which explains these and other risks you may want to consider before using a credit card to pay for your investment.

**DILUTION**

Dilution means a reduction in value, control or earnings of the shares the investor owns.

*Immediate dilution*

 

An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their "sweat equity" into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is diluted because all the shares are worth the same amount, and you paid more than earlier investors for your shares.

The following table demonstrates the price that new investors are paying for their shares of Common Stock with the effective cash price paid by existing stockholders and assuming that the shares are sold at $6.0949 per share. The table presents shares and pricing as issued and reflects all transactions since inception, which gives investors a better picture of what they will pay for their investment compared to the Company's insiders than just including such transactions for the last 12 months, which is what the Commission requires. Since Nixplay, Inc. was incorporated on June 10, 2022, the share numbers and amounts in this table reflect the instruments issued and outstanding as of September 30, 2022.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dates<br> Issued** | **Issued<br> Shares** | **Potential<br> Shares** | **Total Issued<br> and<br> Potential<br> Shares** | **Effective<br> Cash<br> Price per<br> Share at<br> Issuance or<br> Potential<br> Conversion** |  |
| *Common Stock* | September 11, 2022 | 3990000 | 0 | 3990000 | $1.6876 | (1) |
| *Common Stock* | July 29, 2022 | 10000 | 0 | 10000 | $0.0001 |  |
| *Total Common Share Equivalents* |  | 4000000 | 0 | 4000000 | $1.6834 |  |
|  *Investors in this offering, assuming $15 million raised from sales of Common Stock in this offering (2)* |  |  | 2461075 | 2461075 | $6.0949 |  |
| *Total after inclusion of this offering* |  | 4000000 | 2461075 | 6461075 | $3.3638 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective September 11, 2022, in connection with the 2022 Reorganization, Nixplay Inc. issued
 3,990,000 shares of its Common Stock to Solon in exchange for 73.77% ownership interest in Nixplay Cayman. No cash payment has been
 made for this transaction. This represents an effective cash price of $1.6876 per share of Common Stock issued in this transaction,
 if calculated based on the amount of Equity Attributable to Shareholders of Nixplay, Inc. at December 31, 2021. The shares were
 issued to the CEO of the Company .

(2) Does not include an additional 246,108 shares that may be issued as Bonus Shares.

*Future dilution*

 

Another important way of looking at dilution is the dilution that happens due to future actions by the company. The investor's stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock.

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

The type of dilution that hurts early-stage investors most occurs when the company sells more shares in a "down round," meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

&nbsp;&nbsp;&nbsp;&nbsp;· In June 2019 Jane invests $20,000 for shares that represent 2% of a company valued at $1 million.

&nbsp;&nbsp;&nbsp;&nbsp;· In December the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment)
of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.

&nbsp;&nbsp;&nbsp;&nbsp;· In June 2020 the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2
million (the "down round"). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

This type of dilution might also happen upon conversion of convertible notes into shares. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a "discount" to the price paid by the new investors, i.e., they get more shares than the new investors would for the same price. Additionally, convertible notes may have a "price cap" on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a "down round" the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to the amount of convertible notes that the company has issued (and may issue in the future, and the terms of those notes.

If you are making an investment expecting to own a certain percentage of the company or expecting each share to hold a certain amount of value, it's important to realize how the value of those shares can decrease by actions taken by the company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

**PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS**

**Plan of Distribution**

The Company is offering a maximum of 2,461,075 shares of Common Stock, plus up to 246,108 additional shares of Common Stock eligible to be issued as Bonus Shares, on a "best efforts" basis as described in this offering circular. The minimum subscription is $505.88, or 83 shares. The Company has engaged StartEngine Primary as its sole and exclusive placement agent to assist in the placement of its securities in those states it is registered to undertake such activities, including soliciting potential investors on a best-efforts basis. As such, StartEngine Primary is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act. StartEngine Primary is under no obligation to purchase any securities or arrange for the sale of any specific number or dollar amount of securities. Persons who desire information about the offering may find it at www.startengine.com. This offering circular will be furnished to prospective investors 24 hours per day, 7 days per week via a link on the Company's campaign page on the startengine.com website.

**Commissions and Discounts**

The following table shows the discounts and commissions payable to the StartEngine Primary in connection with this offering, assuming a fully subscribed offering.

---

| | |
|:---|:---|
|  | **Per Share** |
| Public offering price | $6.0949 |
| StartEngine Primary Investor Fee per share (1) | $0.2133 |
| Per Share Price plus Investor Fee | $6.3082 |
| StartEngine Primary commissions (2) | $0.2438 |
| Proceeds, before expenses, to us | $5.8511 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Investors will be required to pay directly to StartEngine Primary
 a processing fee (Investor Fee) equal to 3.5% of the investment amount at the time of the
 investors' subscription, up to a maximum of $700 per investor. The Company must pay
 any amounts owed on the Investor Fee over $700 (i.e. 3.5% on any amounts invested over $20,000
 by an individual investor).

&nbsp;&nbsp;&nbsp;&nbsp;(2) StartEngine Primary will receive commissions paid by the Company of
 4% of the offering proceeds.

 **Other Terms**

StartEngine Primary has also agreed to perform the following services in exchange for the compensation discussed above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· design, build, and create
 the Company's campaign page,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· provide the Company with a dedicated account manager
 and marketing consulting services,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· provide a standard purchase agreement to execute
 between the Company and investors, which may be used at the Company's option and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· coordinate money transfers to the Company.

In addition to the commission described above, the Company agrees to pay StartEngine Primary a fee of $15,000 for out of pocket accountable expenses paid prior to commencing this offering. Any portion of this amount not expended and accounted for will be returned to the Company. Assuming the full amount of the offering is raised, we estimate that the total fees and expenses of the offering payable by the Company to StartEngine Primary will be approximately $615,000, assuming no investors in the offering individually invest more than $20,000. (If investors do invest over $20,000 individually, the Company would have to pay the Investor Fee owed to StartEngine Primary on the excess amounts – i.e. 3.5% on amounts over $20,000).

StartEngine Primary will charge you a non-refundable processing fee (the "Investor Fee") equal to 3.5% of the amount you invest at the time you subscribe for our securities, equivalent to $0.2438 per share. In the event an investor invests in excess of $20,000, the Investor Fee shall be limited to $700 and the Company shall pay the 3.5% additional commission with respect to any amount in excess of $20,000. The Investor Fee will be refunded in the event the Company terminates this offering.

StartEngine Primary intends to use an online platform provided by StartEngine Crowdfunding, Inc. ("StartEngine Crowdfunding"), an affiliate of StartEngine Primary, at the domain name www<u>.startengine.com</u> (the "Online Platform") to provide technology tools to allow for the sales of securities in this Offering. In addition, StartEngine Crowdfunding will assist with the facilitation of credit and debit card payments through the Online Platform. Fees for credit and debit card payments will be passed onto investors at cost and the Company will reimburse StartEngine Crowdfunding for transaction fees and return fees that it incurs for returns and chargebacks, pursuant to a Credit Card Services Agreement.

 **Bonus Shares for StartEngine OWNers**

Investors who are StartEngine OWNers – i.e. members of the StartEngine OWNers bonus program - are entitled to 10% Bonus Shares of our Common Stock (effectively a discount on the price paid per share). For example, anyone who is a member of the StartEngine OWNers bonus program will receive 110 shares for every 100 shares they purchase in this offering. The general public can become members of the StartEngine OWNers bonus program on StartEngine's website for $275 per year. Membership will auto renew every year. A member of the program can cancel their renewal at any time. Once the individual cancels, their membership will expire on the next anniversary of their membership. With the OWNer's Bonus, the investor will earn 10% Bonus Shares on all investments they make in participating campaigns on StartEngine. StartEngine Crowdfunding, Inc. will determine whether an investor qualifies as a StartEngine OWNer.

**Selling Securityholders**

No securities are being sold for the account of security holders; all net proceeds of this offering will go to the Company.

**Transfer Agent and Registrar**

StartEngine Secure LLC, an affiliate of StartEngine Primary, will serve as transfer agent to maintain stockholder information on a book-entry basis. We will not issue shares in physical or paper form. Instead, our shares will be recorded and maintained on our stockholder register.

**Investors' Tender of Funds**

In order to invest, investors will be required to subscribe to the offering via the Online Platform and agree to the terms of the offering, subscription agreement, and any other relevant exhibit attached thereto. Investors will be required to complete a subscription agreement in order to invest. The subscription agreement includes a representation by the investor to the effect that, if the investor is not an "accredited investor" as defined under securities law, the investor is investing an amount, including the StartEngine Primary Investor Fee, that does not exceed the greater of 10% of his or her annual income or 10% of your net worth (excluding the investor's principal residence).

Investor funds will be held by the Escrow Agent pending closing or termination of the offering. All subscribers will be instructed by the Company or its agents to transfer funds by wire, credit or debit card, or ACH transfer directly to the escrow account established for this offering. The Company may terminate the offering at any time for any reason at its sole discretion. Investors should understand that acceptance of their funds into escrow does not necessarily result in their receiving shares; escrowed funds may be returned.

StartEngine Crowdfunding will assist with the facilitation of credit and debit card payments through the Online Platform. The Company estimates that processing fees for credit card subscriptions will be approximately 4% of total funds invested per transaction, although credit card processing fees may fluctuate. The Company intends to pay these fees and will reimburse StartEngine Crowdfunding for transaction fees and return fees that it incurs for returns and chargebacks. The Company estimates that approximately 85% of the gross proceeds raised in this offering will be paid via credit card. This assumption was used in estimating the payment processing fees included in the total offering expenses set forth in "Use of Proceeds." Upon closing, funds tendered by investors will be made available to the Company for its use.

The Escrow Agent is not participating as an underwriter or placement agent or sales agent of this offering and will not solicit any investment in the Company, recommend the Company's securities or provide investment advice to any prospective investor, and no communication through any medium, including any website, should be construed as such, or distribute this Offering Circular or other offering materials to investors. The use of the Escrow Agent's technology should not be interpreted and is not intended as an endorsement or recommendation by it of the Company or this offering. All inquiries regarding this offering or escrow should be made directly to the Company. In the event that the Company terminates the offering while investor funds are held in escrow, those funds will promptly be refunded to each investor without deduction or interest and in accordance with Rule 10b-9 under the Exchange Act.

Pursuant to the Company's agreement with StartEngine Primary, the Company agrees that 6% of the total funds received into escrow will be held back as a deposit hold in case of any ACH refunds or credit card chargebacks. The hold will remain in effect for 180 days following the close of the offering. 60 days after the close of the offering, 4% of the deposit hold will be released to the Company. The remaining 2% will be held for the final 120 days of the deposit hold. After such further 120 days, the remaining 2% will be released to the Company.

In the event that it takes some time for the Company to raise funds in this offering, the Company will rely on income from sales, funds raised in any offerings from accredited investors.

 **Escrow Agent**

We have entered into an Escrow Agreement with The Bryn Mawr Trust Company of Delaware LLC (the "Escrow Agent"), which can be found in Exhibit 8.1 to the Offering Statement of which this offering circular is a part. Investor funds will be held by the Escrow Agent pending closing or termination of the offering. All subscribers will be instructed by us or our agents to transfer funds by debit card, wire or ACH (checks will not be accepted) directly to the escrow account established for this offering. We may terminate the offering at any time for any reason at our sole discretion. Investors should understand that acceptance of their funds into escrow does not necessarily result in their receiving shares; escrowed funds may be returned.

The Escrow Agent is not participating as an underwriter, placement agent or sales agent of this offering and will not solicit any investments, recommend our securities, distribute this offering circular or other offering materials to investors or provide investment advice to any prospective investor, and no communication through any medium, including any website, should be construed as such. The use of the Escrow Agent's technology should not be interpreted and is not intended as an endorsement or recommendation by it of us or this offering. All inquiries regarding this offering or escrow should be made directly to us.

**Perks**

Investors in this offering are eligible to receive certain perks depending on their investment amount.

Investors that meet the following criteria will receive the following perks:

Tier 0

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $505.88
 - $2,499 will receive 1 lifetime Nixplay Plus membership for you or friends and family ($1,250 retail value)

Tier 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $2,500
 - $4,999 will receive a new Nixplay Touch Classic 10" frame ($159.99 retail value) and a lifetime Nixplay Plus membership for
 you or friends and family ($1,409.99 retail value)

Tier 2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $5,000
 - $9,999 will receive a new Nixplay Touch Classic 10" frame and a new Nixplay Touch 10" frame ($349.98 retail value)
 and 2 lifetime Nixplay Plus memberships for you or friends and family ($2,849.98 retail value)

Tier 3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $10,000
 - $19,999 will receive a new Nixplay Touch Classic 10" frame, a new Nixplay Touch 10" frame and a new Nixplay Touch 10"
 polished steel frame and 3 lifetime Nixplay Plus memberships for you or friends and family ($4,319.97 retail value)

Tier 4:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $20,000
 - $49,999 will receive new Nixplay Touch Classic 10" frame, a new Nixplay Touch 10" frame, a new Nixplay Touch 10"
 polished steel frame and a fourth frame of your choice and 4 lifetime Nixplay Plus memberships for you or friends and family
 ($5,789.96 retail value)

Tier 5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Investors who invest $50,000+
 will receive an invitation to all shareholder calls + Tier 4 perks

Any perks earned by investors in this offering may not be received by investors until after the offering is completed – as such, investors who qualify for any of the perks above should be aware they will not receive those perks immediately upon investing.

TAX CONSEQUENCES FOR RECIPIENT (INCLUDING FEDERAL, STATE, LOCAL AND FOREIGN INCOME TAX CONSEQUENCES) WITH RESPECT TO THE INVESTMENT PURCHASE PACKAGES ARE THE SOLE RESPONSIBILITY OF THE INVESTOR. INVESTORS MUST CONSULT WITH THEIR OWN PERSONAL ACCOUNTANT(S) AND/OR TAX ADVISOR(S) REGARDING THESE MATTERS.

**Provisions of Note in our Investors' Rights Agreement**

***Drag Along Right***

Investors in this offering will execute an investors' rights agreement that contains a "drag-along provision" related to the sale of the Company. Investors who purchase Common Stock agree that, if the board of directors and the majority of the holders of the Company's Common Stock vote in favor of a sale of the Company, then such holders of Common Stock will vote in favor of the transaction if such vote is solicited, refrain from exercising dissenters' rights with respect to such sale of the Company and deliver any documentation or take other actions reasonably requested by the Company or the other holders in connection with the sale.

***Right of First Offer***

 ****

Investors in this offering will execute an investors' rights agreement that contains a "right of first offer" provision as follows. Holders of Common Stock who invest $100,000 or more in this offering ("Major Investors") will receive participation rights to purchase the portion of New Securities (as defined below) that the Company may issue which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion of other instruments then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion of all outstanding securities of the Company that may be converted and/or exercised for Common Stock). The holder will have no right to purchase any New Securities if the investor cannot demonstrate to the Company's reasonable satisfaction that the investor is at the time of the proposed issuance of New Securities eligible to purchase such New Securities under applicable securities laws.

"New Securities" means collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities. "New Securities" does not include: (i) shares of Common Stock issued or issuable upon conversion of any outstanding shares of preferred stock; (ii) Common Stock or preferred stock issued in any offering concurrent with the offering in which the holder is investing; (iii) shares of Common Stock or preferred stock issuable upon exercise of any options, warrants, or rights to purchase any securities of the Company outstanding as of the date the offering statement is qualified by the Commission and any securities issuable upon the conversion thereof; (iv) shares of Common Stock or preferred stock issued in connection with any stock split or stock dividend or recapitalization; (v) shares of Common Stock (or options, warrants or rights therefor) granted or issued after the date the offering statement is qualified by the Commission to employees, officers, directors, contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the board of directors; (vi) any other shares of Common Stock or preferred stock (and/or options or warrants therefor) issued or issuable primarily for other than equity financing purposes and approved by the board of directors; (vii) shares of Common Stock issued or issuable by the Company to the public pursuant to a registration statement filed under the Securities Act; and (viii) any other shares of the Company's capital stock, the issuance of which is specifically excluded by approval of the board of directors.

The terms of the right of first offer require the Company to send the Major Investors, or their proxies, if applicable, a notice describing the type of New Securities and the price and the general terms upon which it proposes to issue the New Securities. Under the terms of the right of first offer, a Major Investor has twenty (20) days from the date of notice, to agree to purchase a quantity of New Securities, up to their proportionate share. If a Major Investor fails to exercise in full the right of first offer within the 20-day period, then the Company has one hundred eighty (180) days after that to sell the New Securities with respect to which the Major Investor's right of first offer was not exercised. Under the terms of the right of first offer, if the Company has not issued and sold the minimum amount of New Securities to be sold in the financing within the 180-day period, then the Company will not issue or sell any New Securities without again first offering those New Securities to Major Investors in accordance with the terms of the certificate of incorporation.

This right will terminate and be of no further force or effect (i) on the date the Company becomes subject to the periodic reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 or (ii) upon the closing of a Sale of the Company other than a Stock Sale, whichever event occurs first. A "Sale of the Company" shall mean (a) a merger or consolidation in which (i) the Company is a constituent party or (ii) a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation; or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation; or (b) (i) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or (ii) the sale or disposition (whether by merger, consolidation or otherwise, and whether in a single transaction or a series of related transactions) of one (1) or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company. A "Stock Sale" is a transaction in which a more than fifty percent (50%) of the outstanding voting power of the Company is acquired.

**Provisions of Note in Our Subscription Agreement** 

***Forum Selection Provision***

 ****

***Jury Trial Waiver***

The subscription agreement that investors will execute in connection with the offering provides that subscribers waive the right to a jury trial of any claim they may have against us arising out of or relating to the agreement, other than claims arising under federal securities laws. If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable given the facts and circumstances of that case in accordance with applicable case law. In addition, by agreeing to the provision, subscribers will not be deemed to have waived the Company's compliance with the federal securities laws and the rules and regulations promulgated thereunder.

**USE OF PROCEEDS TO ISSUER**

Assuming a maximum raise of $15,000,000, the net proceeds of this offering would be approximately $12,272,500 after subtracting estimated offering costs of $600,000 to StartEngine Primary in commissions, $510,000 in estimated credit card processing fees paid on behalf of investors in this offering, $165,000 in audit fees, $2,500 in Edgarization fees, $50,000 in legal fees and $1,400,000 in advertising fees

Assuming a raise of $7,500,000, representing 50% of the maximum offering amount, the net proceeds of this offering would be approximately $6,027,500 after subtracting estimated offering costs of $300,000 to StartEngine Primary in commissions, $255,000 in estimated credit card processing fees paid on behalf of investors in this offering, $165,000 in audit fees, $2,500 in Edgarization fees, $50,000 in legal fees and $700,000 in advertising fees.

Assuming a raise of $2,500,000, representing approximately 17% of the maximum offering amount, the net proceeds of this offering would be approximately $1,859,500 after subtracting estimated offering costs of $165,000 to StartEngine Primary in commissions, $85,000 in estimated credit card processing fees paid on behalf of investors in this offering, $165,000 in audit fees, $2,500 in Edgarization fees, $50,000 in legal fees and $238,000 in advertising fees.

Please see the table below for a summary our intended use of the net proceeds from this offering

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Percent** | <br> **$2,500,000 Raise** |  | **$7,500,000 Raise** |  | **Maximum Offering**<br> **$15,000,000 Raise** |
| **Allocation** | Use Category | % | Use Category | % | Use Category |
| 55% | Marketing & User Acquisition | 55% | Marketing & User Acquisition | 55% | Marketing & User Acquisition |
| 40% | Product Development | 40% | Product Development | 40% | Product Development |
| 5% | General and Administrative <sup>(1)</sup> | 5% | General and Administrative <sup>(1)</sup> | 5% | General and Administrative <sup>(1)</sup> |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) A portion of the proceeds allocated to "General and Administrative" expenses will be used to pay amounts incurred under
the Services Agreement, which could include compensation to officers and/or directors of the Company.

Because the offering is a "best efforts", we may close the offering without sufficient funds for all the intended purposes set out above, or even to cover the costs of this offering.

**The Company reserves the right to change the above use of proceeds if management believes it is in the best interests of the Company**

**THE COMPANY'S BUSINESS**

**Overview**

Nixplay, Inc. is a corporation formed under the laws of the State of Delaware on June 10, 2022. Nixplay produces smart, Wi-Fi enabled digital photo frames that are supported by the "Nixplay Platform" – our private platform that enables families to share, store, and view their photos, videos, and other digital content through our frames and/or Nixplay mobile app. Through the Nixplay Platform and our digital photo frames, we have created a content-sharing ecosystem that allows our users to effortlessly store and manage their content and their frame through an easy-to-use mobile app. Nixplay's products and technology are all geared towards helping us achieve our mission, which is to enable our users to share moments of joy and preserve memories.

**Organizational History**

The Company's origins began with Creedon Technologies USA, LLC, a Minnesota limited liability company formed in 2009. The initial focus of the Company was online sales of digital picture frames. To facilitate sales in various geographic areas in which digital picture frames were being sold, the Company established entities (or utilized already established entities) in the United Kingdom (Creedon Technologies Limited), Canada (Creedon Technologies Canada Limited), and Hong Kong (Creedon Technologies HK Limited).

In 2014, the Company effected a reorganization whereby one newly established entity, Creedon Technologies Holding Limited (formed under the laws of the Cayman Islands in June 2014) became the 100% owner of all the various operating entities of the Company (the "2014 Reorganization"). The purpose of the 2014 Reorganization was primarily to better organize the Company to facilitate fundraising through selling equity in the Company. Creedon Technologies HK Limited became the primary operational entity and headquarters for the Company's operations after the 2014 Reorganization and was also an intermediary holding company between the Cayman entity and the other entities (i.e., Creedon Technologies Holding Limited owned 100% of Creedon Technologies HK Limited, which in turn owned 100% of all other subsidiaries of the Company).

The Company continued its strategy of establishing subsidiaries in different geographic regions to facilitate sales in those regions, forming Creedon Technologies DE GmbH in Germany in 2018. In March 2019, Creedon Technologies Holding Limited changed its name to "Nixplay" (which we refer to as "Nixplay Cayman" - a different entity than Nixplay, Inc., our Company).

Effective September 11, 2022, the Company underwent another reorganization (the "2022 Reorganization"), pursuant to which Nixplay, Inc. (our Company) was formed, and became the majority owner of Nixplay Cayman. As a result, Nixplay, Inc. is now a majority owner of Nixplay Cayman, which in turn owns 100% of Creedon Technologies HK Limited, which in turn owns all other operating subsidiaries of the Company. A copy of the primary transactional document governing the 2022 Reorganization is included as exhibit 7.1 to the offering statement of which this offering circular forms a part.

The purpose of the 2022 Reorganization was to move the Company's operational hub from Hong Kong (under Creedon Technologies HK Limited) to the United States (under Nixplay, Inc.), along with the majority of the Company's executive officers.

As of the date of this offering circular, however, the Company's executive officers lack the appropriate work visas to migrate from Creedon Technologies HK Limited to Nixplay, Inc. Those executive officers do, however, have work visas enabling them to work at Creedon Technologies USA, LLC, the Company's United States operating subsidiary. As such, Nixplay, Inc. is contracting with Creedon Technologies USA, LLC for management services pursuant to an agreement (the "Services Agreement") until such time as those executive officers are able to obtain work visas enabling them to work directly at Nixplay, Inc. While we expect that such work visas could be obtained by early 2023, there is no guarantee we will be able to obtain such visas by this time. *See* "-- [Operations – Services Agreement with Creedon Technologies USA, LLC](#a_021)" further below in this section for a description of this management agreement between Nixplay, Inc. and Creedon Technologies USA, LLC.

The chart below reflects the current organizational structure of the Company after the 2022 Reorganization.

![](image_158.jpg)

 **Our Subsidiaries**

 *Nixplay Cayman*. Nixplay Cayman is a holding company incorporated in 2014 in the Cayman Islands. Nixplay Cayman is a holding company of Creedon Technologies HK Limited, and has no material operations. Prior to the 2022 Reorganization, Nixplay Cayman was the primary holding company for all Nixplay entities. Through the 2022 Reorganization, the Company took over this role, acquiring a majority interest (73.77%) of Nixplay Cayman. The remainder of Nixplay Cayman (26.23%) is owned by 43 individual stockholders, none of which own greater than 5% of Nixplay Cayman's capital stock. Joel Durbridge, the Chief Operating Officer of the Company, is one of those 43 shareholders, owning 0.2% of Nixplay Cayman.

*Creedon Technologies Limited.* Creedon Technologies Limited is a United Kingdom limited company formed in 2006. Previously, this entity handled product distribution and sales in the United Kingdom. As of the date of this Offering Circular, this entity is non-operational.

*Creedon Technologies DE GmbH.* As described above, Creedon Technologies DE GmbH is a German company formed in 2018 through which product sales are made in Germany, France, Italy, and Spain.

*Creedon Technologies HK Limited.* Creedon Technologies HK Limited is a limited company incorporated in 2010 in Hong Kong. Prior to the 2022 Reorganization, Creedon Technologies HK Limited was the primary operational hub of the Company, and the Company's headquarters. As of the date of this offering circular, these operations have shifted to Nixplay, Inc. Creedon Technologies HK Limited will now primarily be a sourcing entity for inventory- overseeing production by manufacturers of our digital photo frames. Further, Creedon Technologies HK Limited will support the operations of Creedon Technologies PH Limited, which is a branch office of Creedon Technologies HK Limited. Finally, Creedon Technologies HK owns all of the Company's patents.

*Creedon Technologies Canada Limited.* Creedon Technologies Canada Limited is a Canadian limited company formed in 2013. Product sales (and related operations) in Canada are conducted through this entity.

*Creedon Technologies PH.* Creedon Technologies PH is a company formed in 2013 in the Philippines. Product sales operations and customer services (and related operations) in the Philippines are conducted through this entity. It is a branch office of Creedon Technologies HK Limited.

*Creedon Technologies USA, LLC.* Creedon Technologies USA, LLC is a Minnesota limited liability company formed in 2009. Historically, product sales (and related operations) were handled through this entity. As of the date of this offering circular, and as a result of the 2022 Reorganization, this entity provides management services to the Company, and is the direct employer of the majority of the executive officers that will ultimately become employees of Nixplay, Inc. once appropriate U.S. work visas have been obtained, as described further above under "Organizational History". Additionally, sales activities in the United States will still be conducted through Creedon Technologies USA, LLC, and Creedon Technologies USA, LLC will contract and interface directly with our U.S. customers and logistics partners.

 

*Nixplay UK Limited.* Nixplay UK Limited is a UK limited company formed in 2021 to be the distribution and commercial entity of the Company in the UK. It also provides support functions for the European market for product refurbishment, logistics, and administration.

 

*Nixplay Design Limited.* Nixplay Design Limited is a UK limited company formed in 2021 for the purposes of holding certain of the Company's trademarks.

**Principal Products and Services**

***Nixplay Platform***

 ****

The Nixplay Platform allows users to share digital content such as photos and video directly to a Nixplay digital photo frame. Users can:

&nbsp;&nbsp;&nbsp;&nbsp;· Send and receive photos and video from friends and family to display in a Nixplay Digital Photo Frames;

&nbsp;&nbsp;&nbsp;&nbsp;· Create shared "playlists" comprised of photos and videos between users in order to collaborate
on content sharing;

&nbsp;&nbsp;&nbsp;&nbsp;· Edit photos and videos

&nbsp;&nbsp;&nbsp;&nbsp;· Store photos and videos

&nbsp;&nbsp;&nbsp;&nbsp;· Caption your photos and add comments to other users' photos;

&nbsp;&nbsp;&nbsp;&nbsp;· Invite friends to share photos and video to your frame; and

&nbsp;&nbsp;&nbsp;&nbsp;· Use the app as a remote control for a frame, changing the photos or videos being displayed.

The Nixplay Platform allows users to create a photo-sharing network that is private, secure, and GDPR and CCPA-compliant. Data is both encrypted and stored in the United States.

The Nixplay Platform is accessible via the "Nixplay" mobile application, available on IOS and Google Playstore, as well as through our website at www.nixplay.com. The Nixplay Platform has integrations with Google Photos, Dropbox, Facebook, and Instagram, allowing users to connect their content from wherever they store it.

There is no charge for downloading or using the Nixplay Platform – however, we do offer a "premium" version of the Nixplay Platform for a fee, via our "Nixplay Plus" membership described further below.

 **

***Nixplay Digital Photo Frames***

 **

Nixplay produces a number of types of smart, Wi-Fi enabled digital photo frames that connect to the Nixplay Platform.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Smart Frames.</u> *(MSRP From $129.99 to $239.99 per frame).* Our signature Wifi-enabled digital photo frames, which come
in four sizes – 8-inch to 15-inch. Capable of playing videos and displaying digital photos shared through the Nixplay Platform.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Touch Frames</u>. *(MSRP $149.99 to $219.99 per frame).* A Smart Frame with a touch screen, allowing control of all frame
functionality through the screen without a remote.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Ultra Frames</u>. (*MSRP $299.99 per frame).* Ultra refers to its ultra-high resolution, 2K display which has 77% more pixels
to give sharper image quality. Ultra Frames are our most premium product offering, and are available in gold and silver steel finishes *.* 

Each Nixplay digital photo frame comes with:

&nbsp;&nbsp;&nbsp;&nbsp;· *niX-Spectre Display* 

Engineered to deliver the widest possible viewing angle, while still maintaining crisp and vibrant color reproduction of a user's photos and videos.

&nbsp;&nbsp;&nbsp;&nbsp;· *niX-Smart Face Framing* 

When activated, our frame's proprietary A.I. automatically positions people nearer the center of the frame for the best viewing experience.

&nbsp;&nbsp;&nbsp;&nbsp;· *niX-Sense Me* 

A smart sensor that wakes the frame when someone is in the room and sleeps the frame when no one is present.

***Nixplay Print Shop***

 ****

Through a partnership with FujiFilm, the Nixplay Platform offers a "Print Shop" that allows users to print photos from our website www.nixplay.com with Fujifilm's quality print service. This printing service launched in November 2021 with Fujifilm in the United States.

Our printing services include the ability to create:

- Photo Books

Prints

- Easel Gallery Wrapped Canvas

- Metal Wall Art

Plaques

Mugs

- Gallery Wrapped Canvas

- Framed Prints

- Stationery Cards

- Calendars

Puzzles

- Mousepads

- Colored Edge Mounted Prints

- Ornaments

- Mobile Cases

Users simply choose which printing services they would like on our Nixplay App, and orders are automatically sent to FujiFilm for printing. FujiFilm charges us a set fee for the printing and delivery. We charge a margin on top of this for our users.

Prices of the services above vary - the cheapest options being standard photo prints at $0.29 per photo, with the more expensive options such as Metal Wall Art and Blankets ranging from approximately $40 to $80. Customers may also be entitled to certain savings depending on the mixture and volume of products purchased.

Members of "Nixplay Plus" described below are eligible to receive discounts on printing services.

***Nixplay Plus Membership***

The "Nixplay Plus" membership offers enhanced user benefits and features and offers wider gifting options through our Print Shop.

The benefits of the Nixplay Plus membership include:

---

| | | |
|:---|:---|:---|
| | Plus Members | Non members |
| Frame Discount | 25% | --- |
| Print Shop Discount | Up to 80% | Up to 20% |
| Warranty Period | Lifetime | 1 year |
| Video Duration | 1 min. | 15 sec. |
| Shared Playlists | Unlimited | 5 |
| Cloud Storage | 50 GB | 10 GB |
| In-app Photo Editing | Yes | --- |
| Exclusive Frames\* | Yes | --- |
| Connect Frames | Up to 10 | Up to 5 |
| Customer Support | Dedicated 24/7 | Mon - Fri |
| 30-day Money-Back Guarantee | Yes | Yes |

---

\* Occasionally, Nixplay will release a limited run frame that will be made available to Nixplay Plus subscribers only.

We currently offer two Nixplay Plus membership options:

&nbsp;&nbsp;&nbsp;&nbsp;· Annual payment at $49.99 (equal to $4.17 per month) and,

&nbsp;&nbsp;&nbsp;&nbsp;· Quarterly payment at $14.97 (equal to $4.99 per month)

**Market**

The United States is our key market, comprising 82% of our total revenues during the year ended December 31, 2021. Our next biggest markets (in order of significance) are Germany, the United Kingdom (UK), and Canada, France, and Japan.

Our end-customers of our digital frames are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 55% Female, 45% Male.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 85% Homeowners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 55% household income above $100,000.

The age demographics of our customers are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 0-18: 5%

· 25-34: 25%

· 35-44: 25%

· 45-54: 21%

· 55-64: 24%

We believe our Total Addressable Market (TAM) consists of the markets for Smart Home Devices, Photo Printing, and Gifting (as we are a heavily gifted product).

The future outlook of these markets in the United States are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Smart Home Devices <sup>(1)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2021: $28.8bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2023: $32.5bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2025: $46.8bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Photo Printing <sup>(2)</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2021: $17.3bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2023: $20.3bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2025: $23.8bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Gifting<sup>(3)</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2022: $258bn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ 2025:: $312bn

&nbsp;&nbsp;&nbsp;&nbsp;(1) Based on data from a report titled "Global smart home market revenue 2016-2022" published by *Statista.* (July 2022)

&nbsp;&nbsp;&nbsp;&nbsp;(2) Based on data from a report titled "Photo Printing Market Forecast to 2027" published by *The Insight Partners* (May
2020)

&nbsp;&nbsp;&nbsp;&nbsp;(3) Based on data from a survey titled "Unboxed: The $258 Billion US Corporate Gifting Opportunity" published by *Coresight Research* in June 2022.

We believe we are well-positioned to capitalize on the forecasted growth of these markets in the United States.

Further, we believe we are well-positioned to grow with the growth of the elderly population in the United States, as predicted by the U.S. Census Bureau in March 2018 based on 2017 National Population Projections. Purchasers of our digital photo frames report very often that the products are being purchased as a gift to elder family members. Our current advertising strategy consists of digital marketing and PR publications, predominantly in online publications with a focus on the US market. We have also engaged in TV and other offline advertising campaigns.

Further, our products are often gifted - and we believe this allows us to benefit from a strong network effect, as our customers often organically increase awareness of our Company by gifting our products to individuals that may have previously been unaware of us.

**Distribution**

Nixplay sells its digital photo frames worldwide through either retail channels or direct-to-consumer channels. We sell direct-to-consumer via our website (www.nixplay.com), as well through online marketplaces of third-party retailers such as Amazon (Seller Central), Target, Walmart, and (through which we sell directly to consumers with a commission to each sale applied by the retailer's marketplace).

Retailers in our network include Amazon (Vendor), Best Buy, Walmart, and Kohls. The Company receives purchase orders for our products from retailers, and fulfils those purchase orders. The purchase orders received by the Company are singular in nature, obligating the Company to provide a certain amount of product in exchange for a certain purchase price as set forth in the applicable purchase order. Retailers may generally cancel or reschedule orders without penalty, and delivery schedules requested by retailers in their purchase orders frequently vary based upon each customer's particular needs. Additionally, shipments to customers may be delayed due to inventory constraints. None of these purchase orders obligate the purchaser to make future purchases, and do not guarantee any future revenue to the Company.

For the year ended December 31, 2021, approximately 35% of our sales were comprised of direct-to-consumer sales (19% through Amazon (Seller Central), and 16% through nixplay.com), and the remainder was sold through retailers (Amazon, Best Buy, Kohls, etc.) who purchased and resold our products.

We utilize various third-party logistics providers to help us facilitate shipping and order fulfilment in the various territories in which we make product sales. The services providers bill Nixplay on a monthly basis based on work completed. Our total logistics costs, including freight shipping, were $1,944,685 for the year ended December 31, 2021.

**Customers**

During the year ended December 31, 2021, approximately 51% of our sales were generated from sales to Amazon (Vendor), from bulk-purchases of our products that were re-sold to end-customers directly. As described above, sales made to Amazon (Vendor) are on a purchase-order basis, with such purchase orders being satisfied once the products are delivered as specified in the order.

Best Buy was the next most significant purchaser of our products during the year ended December 31, 2021, representing 9% of our total product sales during 2021.

No other single customer accounted for more than 3% of our sales in 2021.

As of December 2021, we had approximately 2.5 million user accounts on the Nixplay Platform and 643,000 Monthly Active Users (MAUs) on the Nixplay Platform. Monthly Active Users are defined as users that have connected to the Nixplay Platform (via our Mobile App or Web App).

**Competition**

We face competition from a number of companies. We believe our most direct competitors are Aura and Skylight, which each offer digital photo frames that can display digital content. We also compete indirectly with larger, well-known companies in the tech industry that that offer similar products and services that our Company offers, such as Amazon and Google (via their "Echo" and "Nest" devices, respectively, which can also display digital content), and Shutterfly and Moonpig (each of which facilitate sharing and gifting of personalized photos).

**Our Advantage**

We believe that we have a number of competitive advantages against other participants in this market. We are the only brand in the space creating a private content sharing platform that integrates with multiple content providers (Google, Dropbox, Facebook, etc.) and that this level of integration enables easier sharing and engagement between family and friends.

Furthermore, our Nixplay Plus Membership subscription differentiates us by providing other market place enhancements (e.g. extended warranty and print discounts) and software upgrades (e.g. enhanced editing and extended video playback).

The Nixplay Platform encourages sharing of digital content and engagement with that content. This creates a rich dataset that will enable more predictive products and services in the future. By capturing the relationship data between two users, Nixplay will be able to provide pre-curated gifting ideas through the print store. We are not aware of any companies in our specific market that have this capability.

As Nixplay is encouraging users to share content and create engagement around that content (through likes and comments), we believe this provides an advantage in offering curated printed products. Our model of continuous engagement keeps us front of mind with our consumers and provides relational data between users that enables direct targeting for printed goods services.

Printing is just the beginning for us. Nixplay intends to build an ecosystem of services in the form of a "marketplace" with a diverse set of vendor partners that provide a number of types of goods and services for Nixplay users beyond the photo printing services we currently offer. We are firm believers that the winners in this market will be the team that builds the best ecosystem for its users.

A summary of some of the key features of our product and service offerings, and how those compare to those of our competitors, is illustrated below.

![Table Description automatically generated](image_004.gif)

**Manufacturing**

For production of our digital photo frames, we utilize contract manufacturing with a factory in Shenzhen, China. The factory sources the necessary component parts for our frames, and assembles and packages those units on-site. Depending on market conditions, we have, on occasion, precured our own parts in bulk to get better pricing, which we provide to our manufacturer to assemble into our frames. Once assembled and packaged, the finished products are sent from Shenzhen to the applicable market for onward distribution to customers. The majority of our stock is shipped to Los Angeles (for the US market) for onward distribution.

We contract with our manufacturer in Shenzhen on a purchase-order basis. We do not have any ongoing, binding agreement with this manufacturer. While we currently produce all of our products through a single manufacturer in Shenzhen, we are currently in conversations with other potential manufacturers to expand capabilities and de-risk our supply chain.

**Operations – Services Agreement with Creedon Technologies USA, LLC**

On September 1, 2022, we entered into a Services Agreement (the "Services Agreement") with Creedon Technologies USA, an affiliate. Creedon Technologies USA is a Minnesota limited liability company formed in 2009. As of the date of this offering circular, and as a result of the 2022 Reorganization, this entity provides management services to the Company, and is the direct employer of the majority of the executive officers of the Company.

Under the terms of the Services Agreement, Creedon Technologies USA agreed to provide to the Company certain personnel, administrative services, and office facilities, including all equipment and supplies, that are reasonable, necessary or useful for the day-to-day operations of the business of the Company, subject to direction provided by the Company to Creedon Technologies USA.

Pursuant to the Services Agreement, the Company agreed to pay Creedon Technologies USA a monthly administrative service fee equal to the costs incurred by Creedon in providing the staff, facilities, and other services contemplated under the Service Agreement. The Company can make such payments to Creedon Technologies USA from the proceeds of this offering or from its income from operations.

The monthly administrative service fee due under the Services Agreement will consist of both a to-be-determined portion of the annual salaries and employee benefits of our executive officers and the other personnel employed by Creedon Technologies USA based upon the amount of time they devote to operation of the Company, as well as a pro-rata allocation of office expenses.

Pursuant to the Services Agreement, Creedon Technologies USA also agreed to certain indemnification provisions, whereby Creedon Technologies USA agreed to indemnify, defend, and hold harmless our Company, including its members, officers, directors, and other agents against claims, liabilities, and expenses of whatever kind, including reasonable attorneys' fees, which arise out of or are related Creedon Technologies USA' services to the Company pursuant to the Services Agreement.

The term of the Services Agreement will continue until it is terminated. The Services Agreement can be terminated at any time upon 30 days' prior written notice from one party to the other.

For additional information, please see the Services Agreement, which is filed as exhibit 6.1 to the offering statement of which this offering circular forms a part.

**Employees**

As of the date of this offering circular, Nixplay, Inc. has no direct employees. All of the Company's employees are currently employed directly at the Company's subsidiaries. Through its subsidiaries, the Company has 92 full-time employees based in the in the following countries:

---

| | |
|:---|:---|
| **Country** | **Head Count** |
| USA | 4 |
| United Kingdom | 12 |
| Hong Kong | 18 |
| Philippines | 44 |
| **Total** | **78** |

---

**Regulation**

We are subject to a variety of data privacy and security laws and regulations across multiple jurisdictions where we have operations – primarily in the United States and Europe.

 

 

 

 

*United States*

 

On June 28, 2018, California adopted the California Consumer Privacy Act of 2018, or CCPA, which took effect on January 1, 2020. The CCPA gives California residents expanded rights to access and delete their personal information, opt out of certain personal information sharing, and receive detailed information about how their personal information is used. The CCPA also provides for civil penalties for violations and contains a private right of action for data breaches that is expected to increase litigation involving misuse of personal information of California residents.

*Europe*

In May 2018, the General Data Protection Regulation, or GDPR, went into effect in the European Union. The GDPR imposes stringent data protection requirements and grants certain rights to individuals to control how we collect, use, disclose, retain, and process their personal data. The GDPR also provides for more robust regulatory enforcement and greater penalties for noncompliance than previous data protection laws, including fines of up to €20 million or 4% of global annual revenue of any noncompliant company for the preceding financial year, whichever is greater. Violations of the GDPR can result in prohibitions on data processing, other corrective action, and class action litigation.

European data protection laws, including the GDPR, also generally prohibit the transfer of personal information from Europe to the United States and most other countries unless the parties to the transfer have implemented specific safeguards to protect the transferred personal information.

The United Kingdom's decision to leave the European Union, often referred to as Brexit, has created uncertainty about the regulation of data protection in the United Kingdom, including with respect to whether laws or regulations will apply to us consistent with the GDPR in the future and how data transfers to and from the United Kingdom will be regulated. Following December 31, 2020, and the expiry of transitional arrangements between the United Kingdom and European Union, the data protection obligations of the GDPR continue to apply to U.K.-related processing of personal data in substantially unvaried form under the so-called "U.K. GDPR" (i.e., the GDPR as it continues to form part of U.K. law by virtue of section 3 of the EU (Withdrawal) Act 2018, as amended). However, going forward, there is a chance for divergence in application, interpretation, and enforcement of the data protection laws as between the United Kingdom and the rest of Europe.

**Intellectual Property**

Our Company (through its subsidiaries) holds a number of patents and trademarks and has a number of patent and trademark applications that are under review. A summary of the Company's current intellectual property portfolio is summarized in the table below.

<u>Patent Registrations</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of registrant** | **Type** | **Trademark/Patent** | **Place of registration** | **Patent Registration no.** | **Registration date** | **Term**<br> **(Years)** | **Expiry date** | **Status** |
| Creedon Technologies HK Limited | Design patent<br>| [1.0] Digital Photo Frame<br> 'The ornamental design for a digital photo frame'<br> ![Graphical user interface, application Description automatically generated](image_001.jpg) | UNITED STATES | US D802,944 S | November 21, 2017 | 15 | November 21, 2032 | **Granted**<br>|
| Creedon Technologies HK Limited | Design Patent | [1.1] Digital Photo Frame<br> ![Graphical user interface, application Description automatically generated](image_002.jpg) | CHINA<br>| ZL 201630023974.1 | January 18, 2017 | 10 | January 22, 2026 | **Granted**<br> Cert no. 4024908<br> Claiming priority from US 29/533,843 filed on 22-Jul-2015 |
| Creedon Technologies HK Limited | Design Patent | [2.0] Digital Photo Frame<br> 'The ornamental design for a digital photo frame'<br>| UNITED STATES | D900,488S | November 3, 2020 | 15 | November 3, 2035 | **Granted** |
| Creedon Technologies HK Limited | Design Patent | [3.0] Digital Photo Frame<br> 'The ornamental design for a digital photo frame' | UNITED STATES | D900,489S | November 3, 2020 | 15 | November 3, 2035 | **Granted** |
| Creedon Technologies HK Limited | Design Patent | [4.0] Digital Photo Frame<br> 'The ornamental design for a digital photo frame' | UNITED STATES | D901,191S | November 10, 2020 | 15 | November 10, 2035 | **Granted**<br>|
| Creedon Technologies HK Limited | Design Patent | [2.1] Digital Photo Frame | CHINA | ZL 2019-30520524.7 | May 19, 2020 | 10 | September 23, 2029 | **Granted**<br> Cert no.:5811423<br> Claiming priority from US 29/700,376 filed on 1-Aug-2019 |
| Creedon Technologies HK Limited | Design Patent | [3.1] Digital Photo Frame | CHINA | ZL 2019-30520522.8 | May 19, 2020 | 10 | September 23, 2029 | **Granted**<br> Cert no.: 5811422<br> Claiming priority from US 29/700,377 filed on 1-Aug-2019 |
| Creedon Technologies HK Limited | Design Patent | [4.1] Digital Photo Frame | CHINA | ZL 201930520459.8 | May 19, 2020 | 10 | September 23, 2029 | **Granted**<br> Cert no.: 5811421<br> Claiming priority from US 29/700,379 files on 1-Aug-2019 |

---

<u>Patent Applications</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of applicant** | **Type** | **Patent** | **Place of application** | **Application no.** | **Application date** | **Status** |
| Creedon Technologies HK Limited | Invention patent | [5.3] Electronic Display<br> Nix Digital Photo Frames<br>| PCT | PCT/CN2020/109504 | August 17, 2020 | Application in progress<br> Claiming priority from USSN16/542,700 Filed on 16 Aug 2019 |
| Creedon Technologies HK Limited | Design patent | [6.0] The ornamental design for a Parallelogram design element<br>| UNITED STATES | 29/779,806 | April 21, 2020 | Application in progress |
| Creedon Technologies HK Limited | Utility Patent<br>| [7.1] A digital media frame and method for configuring a field of view of a digital media frame | EPO | 21172863.9 | May 7, 2021 | Application in progress<br>Claiming priority from US16/870,233 filed on 8-May-2020 |
| Creedon Technologies HK Limited | Design patent | [6.1] The ornamental design for a Parallelogram design element<br>| EUROPEAN UNION | 008731004-0001 | October 20, 2021 | Application in progress<br> Claiming priority form<br> US29/779,806 filed on 21-Apr-2021 |
| Creedon Technologies HK Limited | Design patent | [6.2] The ornamental design for a Parallelogram design element<br>| UNITED KINGDOM | 6171045 | October 20, 2021 | Application in progress<br> Claiming priority from US29/779,806 filed on 21-Apr-2021 |
| Creedon Technologies HK Limited | Design patent | [6.3] The ornamental design for a Parallelogram design element<br>| CHINA<br>| 202130690606.3 | October 21, 2021 | Application in progress<br> Claiming priority form<br> US29/779,806 filed on 21-Apr-2021 |
| Creedon Technologies HK Limited | Design patent | [6.4] The ornamental design for a Parallelogram design element<br>| HONG KONG | 2118869.7 | October 21, 2021 | Application in progress<br> Claiming priority from US29/779,806 filed on 21-Apr-2021 |

---

<u>Trademark Registrations</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of registrant** | **Type** | **Trademark** | **Place of registration** | **Class** | **Registration number** | **Registration date** | **Expiry date** | **Status** |
| Creedon Technologies USA, LLC | TM | STAY CLOSE | UNITED STATES | 9 | 6522067 | October 12, 2021 | October 12, 2031 | Registered |
| Mark Creedon Palfreeman | TM | NIX | CANADA | 9 | TMA972123 | May 31, 2017 | May 31, 2032 | Registered <br> Registration no.: TMA372123 <br> Validity period: 31-May-2017 – 31-May-2032 <br> Application no.: 1645699  |
| Creedon Technologies Canada Limited | TM | NIXPLAY <br> NIX PLAY  | CANADA | 9 | TMA1086866 | November 3, 2020 | November 3, 2030 | Registered <br> Registration no.: TMA1086866 <br> Validity period: 3-Nov-2020 – 3-Nov-2030 <br> Application no.: 1890288  |
| Creedon Technologies HK Limited | TM | nixplay n <br> ![Graphical user interface, text, application Description automatically generated](image_003.jpg)  | CHINA <br>| 9 | 11302166 | January 7, 2014 | January 6, 2024 | Registered <br> Registration no.: 11302166 <br> Validity period: 7-Jan-2014 – 6-Jan-2024  |
| Creedon Technologies HK Limited | TM | nix <br> ![A picture containing text Description automatically generated](image_004.jpg)  | CHINA <br>| 9 | 13424774 | January 28, 2015 | January 27, 2025 | Registered <br> Registration no.: 13424774 <br> Validity period: 28-Jan-2015 – 27-Jan-2025  |
| Creedon Technologies USA, LLC | TM | LOLA | EUROPEAN UNION | 9 | 018322500 | March 4, 2021 | October 16, 2030 | Registered <br> Registration no.: 018322500 <br> Validity period: 4-Mar-2021 – 16-Oct-2030 <br> Reference: <br> DPC/CSQ/246694-194  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Creedon Technologies HK Limited | TM | nixplay n<br> ![Graphical user interface, text, application Description automatically generated](image_003.jpg) | HONG KONG | 9 | 302765908 | October 15, 2013 | October 14, 2023 | Registered<br> Registration no.: 302765908<br> Validity period: 15-Oct-2013 – 14-Oct-2023 |
| Creedon Technologies HK Limited | TM | nix<br> ![A picture containing text Description automatically generated](image_005.jpg) | HONG KONG | 9 | 302780910 | October 28, 2013 | October 27, 2023 | Registered<br> Registration no.: 302780910<br> Validity period: 28-Oct-2013 – 27-Oct-2023 |
| Creedon Technologies Limited (UK Limited Liability Company) | TM | nix | UINTED KINGDOM | 9 | UK00002462060 | January 25, 2008 | July 23, 2027<br>*[Renewed on April 25, 2017]* | Registered<br> Registration no.: UK00002462060<br> Validity period: 23-Jul-2007 – 23-Jul-2027 |
| Creedon Technologies Limited (UK Limited Liability Company) | TM | nixplay-n<br> ![A picture containing text, clipart Description automatically generated](image_006.jpg) | UNITED KINGDOM | 9 | UK00003026583 | January 17, 2014 | October 17, 2023 | Registered<br> Registration no.: UK00003026583<br> Validity period: 17-Oct-2013 – 17-Oct-2023 |
| Creedon Technologies Limited (UK Limited Liability Company) | TM | Nixplay Iris | UNITED KINGDOM | 9 | UK00003158989 | 8 July, 2016 | April 12, 2026 | Registered<br> Registration no.: UK00003158989<br> Validity period: 12-Apr-2016 – 12-Apr-2026 |
| Creedon Technologies Limited (UK Limited Liability Company) | TM | Silk Metal | UNITED KINGDOM | 9 | UK00003158990 | July 15, 2016 | April 12, 2026 | Registered<br> Registration no.:<br> UK00003158990<br> Validity period 12-Apr-2016 – 12-Apr-2026 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Creedon Technologies Limited (UK Limited Liability Company) | TM | HU-MOTION | UNITED KINGDOM | 9 | UK00003261095 | December 29, 2017 | October 4, 2027 | Registered<br> Registration no.: UK00003261095<br> Validity period: 4-Oct-2017 – 4-Oct-2027 |
| Creedon Technologies USA LLC | TM | LOLA | UNITED KINGDOM | 9 | UK00003544926 | April 9, 2021 | October 16, 2030 | Registered<br> Registration no.:<br> UK00003544926<br> Validity period: 16-Oct-2020 – 16-Oct-2030 |
| Creedon Technologies USA LLC | TM | CLOUDFRAME | UNITED STATES | 9 | 5156323 | March 7, 2021 | March 6, 2027 | Registered<br> Registration no.: 5156323<br> Validity period: 7-Mar-2017 – 6-Mar-2027<br> Serial no.: 85709527<br>|
| Creedon Technologies Ltd. (UK Limited Liability Company)<br> by way of assignment from CREEDON TECHNOLOGIES USA LLC on 30-Aug-2013<br>| TM | NIXPLAY | UNITED STATES | 9 | 4800148 | August 25, 2015 | August 24, 2025 | Registered<br> Registration no.: 4800148<br> Validity period: 25-Aug-2015 – 24-Aug-2025<br> Serial no.: 85891329 |
| Creedon Technologies Ltd. (UK Limited Liability Company)<br>| TM | IRIS | UNITED STATES | 9 | 5168182 | March 21, 2017 | March 20, 2027 | Registered<br> Registration no.: 5168182<br> Validity period: 21-Mar-2017 – 20-Mar-2027<br> Serial no.: 86971915 |
| Creedon Technologies Ltd. (UK Limited Liability Company)<br>| TM | Nixplay IRIS | UNITED STATES | 9 | 5172968 | March 28, 2017 | March 27, 2027 | Registered<br> Registration no.: 5172968<br> Validity period: 28-Mar-2017 – 27-Mar-2027<br> Serial no.: 86971923 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Creedon Technologies Ltd. (UK Limited Liability Company) <br>| TM | Nixplay Signage | UNITED STATES | 9 | 5379169 | January 16, 2018 | January 15, 2028 | Registered <br> Registration no.: 5379169 <br> Validity period: 16-Jan-2018 – 15-Jan-2028 <br> Serial no.: 87490012  |
| Creedon Technologies Ltd. (UK Limited Liability Company) | TM | Snap.Share.Display <br>| UNITED STATES | 9 | 5491223 | June 12, 2018 | June 11, 2028 | Registered <br> Registration no.: 5,491,223 <br> Validity period: 12-Jun-2018 – 11-Jun-2028 <br> Serial no.: 87-661,768  |
| Creedon Technologies Ltd. (UK Limited Liability Company) <br>| TM | Seed Wave | UNITED STATES | 9 | 5741684 | April 30, 2019 | April 29, 2029 | Registered <br> Registration no.: 5741684 <br> Validity period: 30-Apr-2019 – 29-Apr-2029 <br> Serial no.: 88027535  |
| Creedon Technologies USA, LLC | TM | LOLA | UNITED STATES | 9 | 6310621 | March 30, 2021 | March 29, 2031 | Registered <br> Registration no.: 6310621 <br> Validity period: 30-Mar-2021 – 29-Mar-2031 <br> Serial no,: 88874200  |
| Creedon Technologies USA, LLC | TM | STAY CLOSE | UNITED STATES | 9 | 6522067 | October 12, 2021 | October 12, 2031 | Registered |
| Creedon Technologies Ltd. (UK Limited Liability Company) | IR-TM | Nixplay - n <br> ![A picture containing text, clipart Description automatically generated](image_007.jpg)  | AUSTRALIA, CHINA, COLOMBIA, EMIRATES, ISRAEL, INDIA, JAPAN, KOREA, MEXICO, RUSSIA, SINGAPORE. | 9 | 1276406 | September 1, 2015 | September 1, 2025 | Registered <br> Registration no.: 1276406 <br>|

---

<u>Trademark Applications</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of registrant** | **Type** | **Trademark** | **Place of registration** | **Class** | **Application no.** | **Application date** | **Status** |
| Creedon Technologies HK Limited | TM | n-logo<br> ![Logo Description automatically generated](image_008.jpg) | UNITED STATES | 9 | Serial no.: 90726197 | May 21, 2021 | **Application in progress – awaiting examination**<br>|
| Creedon Technologies HK Limited | TM | Fish scale trade dress<br> ![A picture containing building Description automatically generated](image_009.jpg) | UNITED STATES | 9 | Serial no.: 90726200 | May 21, 2021 | **Application in progress – awaiting examination**<br>|
| Creedon Technologies HK Limited | TM | Notch design trade dress<br> ![Trademark image](image_005.gif) | UNITED STATES | 9 | Serial no.: 90726199 | May 21, 2021 | **Application in progress – awaiting examination**<br>|

---

**Litigation**

From time to time, the Company and its subsidiaries may be involved in a variety of legal matters that arise in the normal course of business. The Company and its subsidiaries are not currently involved in any litigation, and its management is not aware of any pending or threatened legal actions relating to its intellectual property, conduct of its business activities, or otherwise. *See* "[Risk Factors](#a_008)" for a summary of risks our company may face in relation to litigation against our company.

**Planned Products and Services**

In the short term, we have four clear goals for development of products and services:

*Enhanced gifting propositions*. This involves creating a bespoke gifting experience for all customers. It will enable our users to preload a frame with photos/videos and curate personal messages that can be displayed on those frames. It will also allow the user to invite other friends or family members to contribute photos, videos, and/or messages to the frame. We anticipate this will greatly enhance the gifting experience of our digital frames, creating a greater moment of joy when receiving the gift. It also has the benefits of encouraging wider adoption of Nixplay products and services by promoting collaboration from other friends and family, thus onboarding more new users.

*NFT integration*s. We plan to enable our users to display verified Non-Fungible Tokens (NFTs) on their Nixplay digital photo frames. As NFT technology continues to play a more prevalent role in high value content ownership, we believe this is a technology that Nixplay should keep current with. As this technology evolves, it may provide Nixplay with access to a wider audience and create the opportunity for new features around tokenized content on our Nixplay Platform and products. Nixplay recently built a prototype NFT integration for our digital photo frames, and we plan to continue to work towards developing products and services catered towards this market.

*Enhance sharing & engagement.* We intend to expand and enhance the social features offered to our customers. Our goal in this endeavor is to provide active feedback loops with every interaction in the Nixplay Platform. For example, implementing features whereby a user is notified when a photo the user shared is being regularly displayed on another Nixplay photo frame. By creating positive feedback loops with each interaction, we encourage more usage and engagement with the Nixplay platform. This provides more relationship data that can be used to provide more value added services.

*Enhance Marketplace and Services.* We intend to expand our marketplace services offered on www.nixplay.com and the Nixplay mobile app. At present, we partner with Fujifilm to provide our users with services around printed goods. Nixplay is exploring additional products and services to offer its users from third-party vendors and service providers.

**The Company's Property**

The Company is headquartered at 12301 Whitewater Drive Suite 115, Minnetonka, MN 55343, which is office space leased by Nixplay, Inc. The Company also leases an office space in:

---

| |
|:---|
| Plymouth, the United Kingdom, which serves as the headquarters for Nixplay UK Limited's operations (leased directly by Nixplay UK Limited); |
| Hong Kong, which serves as the headquarters for Creedon Technologies HK Limited (leased directly by Creedon Technologies HK Limited). |
| Manila, Philippines, which serves as the headquarters for Creedon Technologies PH (leased directly by Creedon Technologies PH). |
| Denver, Colorado, United States, which serves as a satellite office for Creedon Technologies USA, LLC (leased directly by Creedon Technologies USA, LLC) |

---

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Overview**

Nixplay, Inc. is a corporation formed under the laws of the State of Delaware on June 10, 2022. Nixplay produces smart, Wi-Fi enabled digital photo frames that are supported by the "Nixplay Platform" – our private platform that enables families to share, store, and view their photos, videos, and other digital content through our frames and/or Nixplay mobile app. Through the Nixplay Platform and our digital photo frames, we have created a content-sharing ecosystem that allows our users to effortlessly store and manage their content and their frame through an easy-to-use mobile app. Nixplay's products and technology are all geared towards helping us achieve our mission, which is to enable our users to share moments of joy and preserve memories.

**Organizational History**

The Company's origins began with Creedon Technologies USA, LLC, a Minnesota limited liability company formed in 2009. The initial focus of the Company was online sales of digital picture frames. To facilitate sales in various geographic areas in which digital picture frames were being sold, the Company established entities (or utilized already established entities) in the United Kingdom (Creedon Technologies Limited), Canada (Creedon Technologies Canada Limited), and Hong Kong (Creedon Technologies HK Limited).

In 2014, the Company effected a reorganization whereby one newly established entity, Creedon Technologies Holding Limited (formed under the laws of the Cayman Islands in June 2014) became the 100% owner of all the various operating entities of the Company (the "2014 Reorganization"). The purpose of the 2014 Reorganization was primarily to better organize the Company to facilitate fundraising through selling equity in the Company. Creedon Technologies HK Limited became the primary operational entity and headquarters for the Company's operations after the 2014 Reorganization and was also an intermediary holding company between the Cayman entity and the other entities (i.e., Creedon Technologies Holding Limited owned 100% of Creedon Technologies HK Limited, which in turn owned 100% of all other subsidiaries of the Company).

The Company continued its strategy of establishing subsidiaries in different geographic regions to facilitate sales in those regions, forming Creedon Technologies DE GmbH in Germany in 2018. In March 2019, Creedon Technologies Holding Limited changed its name to "Nixplay" (which we refer to as "Nixplay Cayman" - a different entity than Nixplay, Inc., our Company).

Effective September 11, 2022, the Company underwent another reorganization (the "2022 Reorganization"), pursuant to which Nixplay, Inc. (our Company) was formed, and became the majority owner of Nixplay Cayman. As a result, Nixplay, Inc. is now a majority owner of Nixplay Cayman, which in turn owns 100% of Creedon Technologies HK Limited, which in turn owns all other operating subsidiaries of the Company. A copy of the primary transactional document governing the 2022 Reorganization is included as exhibit 7.1 to the offering statement of which this offering circular forms a part.

The purpose of the 2022 Reorganization was to move the Company's operational hub from Hong Kong (under Creedon Technologies HK Limited) to the United States (under Nixplay, Inc.), along with the majority of the Company's executive officers.

The financial data included in this section reflects the data in the Company's audited condensed combined financial statements for the years ended December 31, 2021 and 2020, which have been prepared as if the 2022 Reorganization had already occurred for the years ended December 31. 2021 and 2020.

**Results of Operations**

 ***Year ended December 31, 2021 Compared to Year ended December 31, 2020***

*Revenues.* The Company generated revenues of $57,865,975 for the year ended December 31, 2021, a 4.2% increase compared to $55,521,838 in revenues for the year ended December 31, 2020. The Company's revenues in 2021 and 2020 were almost entirely comprised of sales of Nixplay digital photo frames – and the increase in revenues in 2021 was the result of higher product sales in 2021 compared to 2020.

*Cost of Sales.* The Company's cost of sales for the year ended December 31, 2021 was $36,452,328, compared to $34,645,885 for the year ended December 31, 2020. Cost of sales were comprised of manufacturing costs (including raw materials and components for manufacturing), quality control, inspection, distribution and logistics expenses and commissions on sales through third-party retailers. The cost of sales increased by 5.2% for the year ended December 31, 2021 compared to the year prior as a result of increased sales and increased cost of component parts for our products, caused by shortages (primarily attributable to supply and logistical challenges stemming from the COVID-19 pandemic). Consequently, our Gross Margin reduced from 37.6% for the year ended December 31, 2020 to 37.0% for the year ended December 31, 2021.

*Operating Expenses.* The Company incurred $18,631,785 in operating expenses for the year ended December 31, 2021 – 2.6% more than during the year ended December 31, 2020, for which the Company incurred $18,167,065 in operating expenses. The largest component of operating expenses for each of the years ended December 31, 2021 and 2020 were development, general and administrative expenses. Development, general and administrative expenses were $12,352,409 and $12,423,027 for the years ended December 31, 2021 and 2020, respectively, and were comprised primarily of salaries, development costs, consultancy fees, cost of servers and data management. The second largest component of operating expenses were selling expenses. Selling expenses increased by 10.3% from $5,107,209 in 2020 to $5,633,172 in 2021. Those mainly include digital advertising expenses. Increased competition on the main digital advertising platforms we utilize was driving higher cost of advertising in 2021 compared to 2020. This was particularly noticeable during the peak of the COVID-19 pandemic.

*Net Operating Income.* As a result of the foregoing, the Company generated a net operating income of $2,781,861 and $2,708,888 for the years ended December 31, 2021 and 2020, respectively.

*Government grants including PPP loan forgiveness*. The Company received $221,149 and $159,098 for the years ended December 31, 2021 and 2020, respectively. This mainly includes $144,506 obtained in February 2021 and $142,636 obtained in August 2020 from the Employment Support Scheme (ESS) under the Anti-epidemic Fund launched by the Hong Kong SAR Government supporting the payroll of the Company's Hong Kong subsidiary employees. In May 2020, Creedon Technologies USA, LLC acquired a loan of $76,666 from a U.S. financial institution bearing interest at 1% per annum payable monthly in arrears commencing in October 2021. The loan was issued by the Small Business Administration (SBM) under the Paycheck Protection Program, under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was eligible for forgiveness and was forgiven in 2021.

 

 

 

 

*Interest Income.* The Company received interest income of $83,929 and $61,734 for the years ended December 31, 2021 and 2020, respectively. Interest income received during these years was mainly comprised of interests generated by bank deposits attached to two life insurance contracts of which the Company is the sole beneficiary.

 

*Interest expenses.* The Company incurred interest expenses of $1,012,599 and $959,930 for the years ended December 31, 2021 and 2020, respectively, related to interest accrued on Bank Loans and loans to various officers, directors, and shareholders (or their family members) of a number of different subsidiaries of the Company pursuant to various loan agreements. Those loans are mainly short term and mainly utilized to finance the inventory.

*Income Tax Expense*. The Company's income tax expense was significantly lower for the year ended December 31, 2021 ($145,055) compared to the year ended December 31, 2020 ($305,329). The primary reason for this decrease was the unrecognized tax losses in one subsidiary in 2020 were utilized and set-off the taxable profit in the year-end December 2021.

*Net Income.* As a result of the foregoing, the Company generated net income of $1,929,286 – a 15.9% increase compared to net income of $1,664,462 for the year ended December 31, 2020.

 ***Six Months ended June 30, 2022 Compared to Six Months ended June 30, 2021***

  ****

 *Revenues.* The Company generated revenues of $9,025,516 for the six months ended June 30, 2022, a 54.4% decrease compared to $19,782,801 in revenues for the six months ended June 30, 2021. The Company's revenues during both periods were mainly comprised of sales of Nixplay digital photo frames. The significant decrease in revenues during the six months ended June 30, 2022 is largely the result of lower product sales than compared to the prior period. During the six months ended June 30, 2022, many retailers were still selling inventory acquired from us at the end of 2021 and were more conservative making new product orders, which we believe is influenced in part by recent macro-economic conditions.

 *Cost of Sales.* The Company's cost of sales for the six months ended June 30, 2022 was $6,248,538, compared to $11,584,426 for the six months ended June 30, 2021 – a 46.1% decrease. Cost of sales were comprised of manufacturing costs (including raw materials and components for manufacturing), quality control, inspection, distribution and logistics expenses and commissions on sales through third-party retailers. The cost of sales decreased for the six months ended June 30, 2022 compared to the prior period as a result of decreased sales during the six months ended June 30, 2022 compared to the six months ended June 30, 2021, as described above.

 *Operating Expenses.* The Company incurred $7,286,027 in operating expenses for the six months ended June 30, 2022 – 12.0% decrease from $8,275,668 in operating expenses for the six months ended June 30, 2021. The largest component of operating expenses for each of the six months ended June 30, 2022 and 2021 were development, general and administrative expenses, which were $5,392,988 and $6,097,660 respectively during these periods, and were comprised primarily of salaries, development costs, consultancy fees, cost of servers and data management costs. The second largest component of operating expenses were selling expenses, which were $1,530,939 and $1,805,409 for the six months ended June 30, 2022 and 2021, respectively, and were mainly comprised of digital advertising expenses. Overall, operating expenses decreased during the six months ended June 30, 2022 compared to the six months ended June 30, 2021 as a result of cost reduction efforts by our Company as a whole – notably with certain operations of our company being relocated to lower cost countries in an effort to reduce operating costs.

 *Net Operating Loss.* As a result of the foregoing, the Company generated a net operating loss of $4,509,049 for the six months ended June 30, 2022 – a significant increase compared to a net operating loss of $77,293 for the six months ended June 30, 2021.

 *Government grants*. The Company received $29,563 and $144,506 for the six months ended June 30, 2022 and 2021, respectively, from government grants. For both periods, these amounts represented grants from the Employment Support Scheme (ESS) under the Anti-epidemic Fund launched by the Hong Kong SAR Government supporting the payroll of the Company's Hong Kong subsidiary employees.

 

 *Interest Income.* The Company received interest income of $37,563 and $42,521 for the six months ended June 30, 2022 and 2021, respectively. Interest income received during these years was mainly comprised of interest generated by bank deposits attached to two life insurance contracts of which the Company is the sole beneficiary.

 

 

 

 

 

 *Interest expenses.* The Company incurred interest expenses of $410,837 and $452,906 for the six months ended June 30, 2022 and 2021, respectively, related to interest accrued on Bank Loans and loans to various officers, directors, and shareholders (or their family members) of a number of different subsidiaries of the Company pursuant to various loan agreements. Those loans are mainly short term and mainly utilized to finance the inventory.

Net Loss. As a result of the foregoing, the Company had a net loss of $4,819,065 for the six months ended June 30, 2022 – a significant increase compared to a net loss of $346,353 for the six months ended June 30, 2021.

**Liquidity and Capital Resources**

As of June 30, 2022, the Company had $2,552,855 in cash and cash equivalents, and had a positive working capital of $2,044,575. The Company believes that it can fund its operations from cash flow for the foreseeable future without the need to raise additional capital from this offering or any future offering.

**Indebtedness**

*Bank Loans*

 

As of June 30, 2022, the Company had amounts due under various loans for a total amount of $7,494,545. Short term (i.e. less than one year) bank loans represented a total of $7,156,728 in total principal and interest ("Bank Loans"). Those loans are used to finance the trade cycle and mainly the inventory. At the end of the year (December) the outstanding amount due under these Bank Loans is usually at its peak as the proceeds from the Christmas season are not yet allocated to the repayment of those loans. The Company also had $337,817 in Bank Loans due for repayment after one year which contain a repayment on demand clause through which the lender can demand repayment at any time.

The table below provides a summary of each outstanding Bank Loan as of the date of this offering circular. Each Bank Loan in the table below is between Creedon Technologies HK Limited (the Company's Hong Kong subsidiary) and the "Loan Lender" specified in the table below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Loan Type** | **Lender** | **Facility Limit in <br> original currency** | **Outstanding Principal** | **Outstanding Principal** | **Repayment Terms** |
|  |  |  | **(USD $)** | **(USD $)** |  |
| Trade Loan <sup>(1)</sup> | HSBC HK | HKD 12,000,000 | 944450 | 1522470 | Repayable within 1 year |
| Trade Loan <sup>(2)</sup> | HSBC HK | HKD 73,500,000 | 4628735 | 6421767 | Repayable within 1 year |
| Trade Loan <sup>(3)</sup> | Standard Chartered | USD 3,500,000 | 1307392 |  | Repayable within 1 year |
| Trade Loan <sup>(4)</sup> | HSBC HK | HKD 6,000,000 |  | 739564 | Repayable within 1 year |
| Universal Life Insurance Loan <sup>(2)</sup> | HSBC HK | USD 540,488 | 337817 | 269412 | Repayable after 1 year (Contains Repayment on Demand clause)  |
| Term Loan (General Working Capital) <sup>(5)</sup> | Standard Chartered | HKD 4,000,000 | 276152 | 212316 | Repayable within 1 year |
|  |  | **Total** | **7494545** | **9165529** |  |

---

_____________

&nbsp;&nbsp;&nbsp;&nbsp;(1) A copy of this agreement is included as Exhibit 6.2 to the offering
 statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(2) A copy of this agreement is included as Exhibit 6.3 to the offering
 statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(3) A copy of this agreement is included as Exhibit 6.4 to the offering
 statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(4) A copy of this agreement is included as Exhibit 6.5 to the offering
 statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(5) A copy of this agreement is included as Exhibit 6.6 to the offering
 statement of which this offering circular forms a part.

*Other Financial Liabilities (Including Loans to Certain Related Parties of the Company)*

 

The Company has received loans from a number of related parties of the Company, including various officers, directors, and shareholders (or their family members) of a number of different subsidiaries of the Company pursuant to various loan agreements. The amounts due under these loan agreements are unsecured – and for the loans that accrue interest, each loan accrues interest at 10% per annum. A summary of the amounts outstanding under these various loan agreements as of June 30, 2022 and September 30, 2022 is set forth in the table below. Unless indicated in the table below, all loans set forth below are due for repayment on February 28, 2023.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **As of June 30, 2022** | **As of June 30, 2022** | **As of June 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** |
| <br> **Lender** | <br> **Related Party Status** | **Principal** | **Interest accruals** | **Total** | **Principal** | **Interest accruals** | **Total** |
| Mark Palfreeman <sup>(1)</sup> | CEO and Director of Nixplay Inc. | $513717 | $– | $513717 | $513454 | $– | $513454 |
| Mark Palfreeman <sup>(2)</sup> | CEO and Director of Nixplay Inc. | $52034 | $1867 | $53901 | $52007 | $2413 | $54420 |
| Mark Palfreeman <sup>(3)</sup> | CEO and Director of Nixplay Inc. | $6367 | $– | $6367 | $6367 | $– | $6367 |
| Claire Palfreeman <sup>(4)</sup> | Family of Mark Palfreeman | $308353 | $10307 | $318660 | $308258 | $12921 | $321179 |
| Julie Palfreeman <sup>(5)</sup> | Family of Mark Palfreeman | $161499 | $5390 | $166889 | $162123 | $6786 | $168909 |
| Director of Nixplay Cayman | **N/A <sup>(6)</sup>** | $546958 | $18282 | $565240 | $546789 | $22920 | $569709 |
| Shareholder of Nixplay Cayman (less than 5%) | **N/A <sup>(6)</sup>** | $97086 | $– | $97086 | $97462 | $– | $97462 |
| Shareholder of Nixplay Cayman (less than 5%) | **N/A <sup>(6)</sup>** | $764728 | $25561 | $790288 | $764337 | $32039 | $796376 |
| Shareholder of Nixplay Cayman (less than 5%) | **N/A <sup>(6)</sup>** | $1222586 | $40865 | $1263451 | $1222586 | $51248 | $1273835 |
| Shareholder of Nixplay Cayman (less than 5%) | **N/A <sup>(6)</sup>** | $687378 | $22975 | $710353 | $330338 | $28799 | $359137 |
| Shareholder of Nixplay Cayman (less than 5%) | **N/A <sup>(6)</sup>** | $33677 | $1126 | $34802 | $33807 | $1417 | $35224 |
|  | **Total** | $4394383 | $126372 | $4520755 | $4037527 | $158543 | $4196070 |

---

_______________________

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents two loans repayable upon demand by Mr. Palfreeman,
 which do not accrue interest. A copy of these agreements are filed as Exhibits 6.7 and
 6.8 to the offering statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(2) This loan was initially repayable on December 31, 2022. On
January 1, 2023, the Company entered into a new loan agreement, replacing the previous loan agreement. This loan is now repayable upon
demand, and accrues interest at 13% per annum, and has a principal of $53,221.62. A copy of this agreement is filed as Exhibit 6.9 to
the offering statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(3) This loan is repayable upon demand by Mr. Palfreeman, and does
 not accrue interest. There is no formal loan agreement governing the terms of this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represents the amount owed pursuant to two loan agreements, filed
 as Exhibits 6.10 and 6.11 to the offering statement of which this offering circular forms
 a part.

&nbsp;&nbsp;&nbsp;&nbsp;(5) A copy of this agreement is filed as Exhibit 6.12 to the offering
 statement of which this offering circular forms a part.

&nbsp;&nbsp;&nbsp;&nbsp;(6) This individual is not an officer, director, or 10% shareholder
 of the Company. Nonetheless, a copy of the form of loan agreement governing this loan described
 above is filed as Exhibit 6.13 to the offering statement of which this offering circular
 forms a part.

**Trend Information**

*Production*. 2021 was a challenging year with significant increase in our cost of sales due to component part shortages and increased cost of logistics owing to increased demand. 2022 has seen a reverse of that trend with cost of goods decreasing from their 2021 highs and logistical supply chains starting to normalize.

*Inventory*. At the end of 2021, general market conditions led to many consumer sales companies being overstocked with inventory. Nixplay was overstocked at the end of 2021 and has used the 2022 fiscal year to rebalance inventory, ensuring our inventory is well positioned for the 2022 Christmas sales period. Most recently, inventory is being purchased at a significantly lower cost than 2021 due to the Company's ability to negotiate more competitive prices (supply chains are returning to normal post COVID-19).

*Sales.* In line with current macroeconomic conditions, Nixplay has seen a year-over-year decrease in sell-through (i.e. Nixplay direct sales or retailer sales directly to end customers) of 29.8% as of the end of August 2022. Nixplay is seeing an improvement in the year-over-year trend and the majority of Nixplay sales occur in Q4 of each year.

*Users*. In the first half of 2022, Nixplay increased its user base on the Nixplay Platform by approximately 270,000 users. This is a 11% increase from our 2021 year end and a positive sign that the Nixplay Platform is continuing to grow.

*Subscriptions*. In the first half of 2022, Nixplay increased its Nixplay Plus subscriber base by approximately 3,260 users. This is a nearly 13% increase from our 2021 year end and a positive sign that the subscription proposition continues to attract customers.

*NFT Market Growth.* We also believe that we are well positioned to take advantage of recent significant growth seen in digital content ownership in the form of NFTs. The NFT market generated over $23 billion in trading volume according to data published in the 2021 DappRadar Industry Report – and the global non-fungible token market size is expected to reach $211.72 billion by 2030 according to a April 2022 report published by Research and Markets. We believe the growing demand for digital art worldwide is one of the major factors driving the NFT market growth, and that collectors will want devices that enable them to display and share such digital content. Nixplay recently built a prototype and NFT integration, and we plan to continue to work towards developing products and services catered towards this market.

*Increased Data Privacy Regulation.* Additionally, we believe that increased stringent regulation on data privacy will become increasingly prevalent in the United States and Europe in the coming years. We believe this will work in our favor, given the fact that we take stringent measures to protect users' data, and such data is not monetized outside of our Nixplay Platform's ecosystem (in contrast to companies like Google and Amazon).

*U.S. – China Relations.* As 70% of our purchases are made in the United States and most of our manufacturing is conducted in China, tensions between these two countries can affect inventory and cost of goods sold. It will not, however, affect our services and subscription revenues. These are not only our fastest growing products but will also be where we intend to push hardest in future as a growth point for our business.

**Relaxed Ongoing Reporting Requirements**

If we become a public reporting company in the future, we will be required to publicly report on an ongoing basis as an "emerging growth company" (as defined in the Jumpstart Our Business Startups Act of 2012, which we refer to as the JOBS Act) under the reporting rules set forth under the Exchange Act. For so long as we remain an "emerging growth company", we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not "emerging growth companies", including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;· taking advantage of extensions of time to comply with certain new or revised financial accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;· being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements;
and

&nbsp;&nbsp;&nbsp;&nbsp;· being exempt from the requirement to hold a non-binding advisory vote on executive compensation and shareholder approval of any golden
parachute payments not previously approved.

If we become a public reporting company in the future, we expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an "emerging growth company" for up to five years, although if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would cease to be an "emerging growth company" as of the following December 31.

If we do not become a public reporting company under the Exchange Act for any reason, we will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A for Tier 2 issuers. The ongoing reporting requirements under Regulation A are more relaxed than for "emerging growth companies" under the Exchange Act. The differences include, but are not limited to, being required to file only annual and semiannual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semiannual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year.

In either case, we will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not "emerging growth companies", and our shareholders could receive less information than they might expect to receive from more mature public companies.

**DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES**

As of the date of this offering circular, the executive officers and directors of Nixplay, Inc. are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Date Appointed to<br> Current Position\*\*** |
| **Executive Officers** |  |  |  |
| Mark Palfreeman\* | Chief Executive Officer | 44 | June 2014 |
| Joel Durbridge\* | Chief Operating Officer | 35 | January 2021 |
| Benoit Le Berre\* | Chief Financial Officer | 36 | January 2018 |
| **Directors** |  |  |  |
| Mark Palfreeman\* | Director | 44 | June 2014 |
| Philippe Tartavull | Director (Chairman) | 64 | August 2017 |

---

*\*Contracted through Creedon Technologies USA, LLC pursuant to the Services Agreement. These individuals are not direct employees of the Company.* 

*\*\* Represents the date that the individual joined Nixplay prior to the 2022 Reorganization (i.e. prior to the incorporation of Nixplay, Inc.).*

**Mark Palfreeman, Chief Executive Officer, Director**

Mark is the founder and CEO of Nixplay and has held the position since 2014. He leads Sales, Ecommerce, Marketing, Production, Treasury and Industrial Design. Mark also holds a board seat on Nixplay Inc and Nixplay Cayman. Prior to this role he was CEO of the Creedon Technologies Group founded in 2006,where he led the full development, production and sales of Nix frames. Mark's early career was in media where he worked for film studios primarily in the UK.

**Joel Durbridge, Chief Operating Officer**

Joel is the Chief Operating Officer at Nixplay, taking up the role in January 2021. He leads Technology, Product, Corporate Development and Business Operations including Human Resources and Legal. Prior to joining Nixplay, Joel was the Head of Strategy for Financial Markets Operations at Standard Chartered Bank (December 2019 – January 2021) and completed a number of roles at HSBC (April 2017 – December 2019) in Corporate Innovation, culminating in creating spin out fintech for the bank where he served as Chief of Staff, leading Delivery across the business. Joel's early career was in the British Military where he served close to 10 years as an Officer in the Royal Marine Commandos and the Special Forces.

 **Benoit Le Berre, Chief Financial Officer**

Benoit first joined Nixplay in 2015 as the Financial Controller for all Nixplay. In 2017, he took on the role of Chief Financial Officer for Nixplay. Prior to joining Nixplay, Benoit was a Financial Auditor at Mazars, where he led audit assignments for large, listed corporations including large consumer brands. From this experience, Benoit began to specialize serving as the head of finance for growing businesses. His main focus has been to structure financial reporting and secure funding. Just prior to joining Nixplay, he worked for a manufacturing group with operations in Asia. He received a Master degree in Audit and Financial Advisory from Université Paris Dauphine in 2010.

**Philippe Tartavull, Director (Chairman)**

Philippe has held the position of Director and Chairman with Nixplay since 2017. He has more than 35 years of experience leading public and private global technology companies in the infrastructure, industrials, payments and telecommunications, convergence of technologies, hardware and software sectors. He is the Co-Founder and Managing Partner of TKB Capital (May 2021 – present). Prior to this Philippe co-founded a lead Tartavull Ventures in 2016. Philippe is a highly experienced CEO, president and director of leading public and private global technology companies, including: Xura/Comverse (2012 -2017) (NASDAQ: MESG), Hypercom (NYSE: HYC), Oberthur Card Systems North America and Syseca USA – A Thales Company. His current and previous board experience on both public and private companies includes Composecure, Hypercom, Xura/Comverse, MRV Communications and Wilcox. He is on the board of trustees of American University in Paris and holds an MBA from the Institut d'Administration des Enterprises, Sorbonne University, M.S. in Engineering from Ecole Nationale Superieure des Pétroles et des Moteurs and B.S. in Engineering from SUPMECA (previously called Centre d'Etudes Supérieures des Techniques Industrielles).

**COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS**

Nixplay, Inc. was incorporated on June 10, 2022. Therefore, no compensation was paid by Nixplay, Inc. to any officer or director of the Company during the year ended December 31, 2021.

As such, the below table represents compensation paid to Nixplay, Inc.'s three highest-paid directors and executive officers during the year ended December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Capacities in which compensation was received** | **Cash compensation ($)** | **Other compensation ($)** | **Total compensation ($)** |
| Mark Palfreeman | Chief Executive Officer | $421901 | $0 | $421902 |
| Joel Durbridge | Chief Operating Officer | $260117 | $40689 **<sup>(1)</sup>** | $300807 |
| Benoit Le Berre | Chief Financial Officer | $230769 | 0 | $230769 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents the cash value of unvested stock options issued to
 Mr. Durbridge that are exercisable for 41,454 shares of Common Stock.

For the fiscal year ended December 31, 2022, the Company's current directors as a group (2) received a total of $29,500 in compensation for their services as directors.

The Company has not yet determined the compensation it will pay to its current officers and directors. Compensation for the Company's officers and directors going forward may include cash and/or equity compensation, and will depend on a number of factors, including the amount raised under this offering, and prevailing market conditions.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table displays, as of February 10, 2023 the voting securities beneficially owned by (1) any individual director or officer who beneficially owns more than 10% of any class of our capital stock, (2) all executive officers and directors as a group and (3) any other holder who beneficially owns more than 10% of any class of our capital stock:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and address of beneficial owner** | **Title of Class** | **Amount and nature of beneficial ownership** | **Amount and nature of beneficial ownership acquirable** | **Percent of class (1)** |
| Mark Palfreeman, 12301 Whitewater Dr, Ste 115<br> Minnetonka, MN<br> 55343-3932 (2) | Common Stock | 4000000 | 0 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The final column (Percent of Class) includes a calculation of the amount the person owns now, plus the amount that person is entitled
to acquire. That amount is then shown as a percentage of the outstanding amount of securities in that class if no other people exercised
their rights to acquire those securities.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents shares held by Solon – a Cayman Islands company of which Mark Palfreeman is the sole owner ("Solon").
As the sole owner of Solon, Mr. Palfreeman is deemed to be the beneficial owner of the shares of the Company held by Solon.

**INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

As described under "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_012) – Liquidity and Capital Resources -- Indebtedness", prior to the 2022 Reorganization, certain of the Company's subsidiaries entered into various loan agreements with various officers, directors, and shareholders of those subsidiaries. As of June 30, 2022, a total of $4,520,755 was owed pursuant to these loans – however, only $1,059,534 of this amount was represented by loan agreements between the Company and one of its officers, directors, or holder of more than 10% of any class of securities Nixplay, Inc (or their family members). These related party loans are summarized below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **As of June 30, 2022** | **As of June 30, 2022** | **As of June 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** |
| <br> **Lender** | <br> **Related Party Status** | **Principal** | **Interest accruals** | **Total** | **Principal** | **Interest accruals** | **Total** |
|  |  | **USD** | **USD** | **USD** | **USD** | **USD** | **USD** |
| Mark Palfreeman | CEO and Director of Nixplay Inc. | $513717 | $– | $513717 | $513454 | $– | $513454 |
| Mark Palfreeman | CEO and Director of Nixplay Inc. | $52034 | $1867 | $53901 | $52007 | $2413 | $54420 |
| Mark Palfreeman | CEO and Director of Nixplay Inc. | $6367 | $– | $6367 | $6367 | $– | $6367 |
| Claire Palfreeman | Family of Mark Palfreeman | $308353 | $10307 | $318660 | $308258 | $12921 | $321179 |
| Julie Palfreeman | Family of Mark Palfreeman | $161499 | $5390 | $166889 | $162123 | $6786 | $168909 |
|  | **Total** | $1041970 | $17564 | $1059534 | $1042209 | $22120 | $1064328 |

---

Copies of these loan agreements are filed as exhibits 6.7 to 6.12 to the offering statement of which this offering circular forms a part.

**SECURITIES BEING OFFERED** 

The Company is offering up to 2,707,183 shares of Common Stock in this offering (which includes 246,108 Bonus Shares, the maximum amount of Bonus Shares that may be issued in this offering).

Immediately prior to the initial closing of this offering, the Company will amend its certificate of incorporation to authorize additional shares of Common Stock. The form of amended and restated certificate of incorporation setting forth the terms of the Common Stock is filed as Exhibit 2.2 to the offering statement of which this offering circular is a part. The following description summarizes the most important terms of the Company's capital stock in accordance with the amended and restated certificate of incorporation. This summary does not purport to be complete and is qualified in its entirety by the provisions of the Company's amended and restated certificate of incorporation and bylaws. For a complete description of the Company's capital stock, you should refer to the amended and restated certificate of incorporation and bylaws of the Company and to the applicable provisions of Delaware law.

**Description of Capital Stock**

The authorized capital stock of the Company currently consists of 10,000,000 shares of Common Stock, par value $0.0001 per share. Upon the filing of the amended and restated certificate of incorporation, the total number of authorized shares of Common Stock of the Company, par value $0.0001 per share will be 11,060,796.

As of the date of this offering circular, the outstanding shares of the Company consist of 4,000,000 shares of Common Stock.

**Common Stock**

***Voting Rights***

Each holder of the Company's Common Stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Holders of Common Stock exclusively, and as a separate class, are entitled to elect two (2) directors of the Company.

***Dividend Rights***

Holders of Common Stock are entitled to receive dividends, as may be declared from time to time by the Board of Directors out of legally available funds. The Company has never declared or paid cash dividends on any of its capital stock and currently does not anticipate paying any cash dividends after this offering or in the foreseeable future.

***Liquidation Rights***

In the event of a voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of Common Stock are entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all debts and other liabilities of the Company.

***Rights and Preferences***

Holders of the Company's Common Stock have no preemptive, conversion, or other rights, and there are no redemptive or sinking fund provisions applicable to the Company's Common Stock.

***Drag Along Rights and Right of First Offer***

 ****

 *See* "Plan of Distribution and Selling Securityholders -- Provisions of Note in our Investors' Rights Agreement" for a description of these rights provided to stockholders in the Investors' Rights Agreement.

**ONGOING REPORTING AND SUPPLEMENTS TO THIS OFFERING CIRCULAR**

We will be required to make annual and semi-annual filings with the SEC. We will make annual filings on Form 1-K, which will be due by the end of April each year and will include audited financial statements for the previous fiscal year. We will make semi-annual filings on Form 1-SA, which will be due by September 28 each year, which will include unaudited financial statements for the six months to June 30. We will also file a Form 1-U to announce important events such as the loss of a senior officer, a change in auditors or certain types of capital-raising. We will be required to keep making these reports unless we file a Form 1-Z to exit the reporting system, which we will only be able to do if we have less than 300 shareholders of record and have filed at least one Form 1-K.

At least every 12 months, we will file a post-qualification amendment to the Offering Statement of which this offering circular forms a part, to include the Company's recent financial statements.

We may supplement the information in this offering circular by filing a Supplement with the SEC.

All these filings will be available on the SEC's EDGAR filing system. You should read all the available information before investing.

**Nixplay Inc.**

**FINANCIAL STATEMENTS**

**NIXPLAY, INC.**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **PAGE** |
| **INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS** |  |
| [Consolidated Balance Sheet (Unaudited)](#q2_001) | F-3 |
| [Consolidated Statement Of Income And Comprehensive Income (Unaudited)](#q2_002) | F-4 |
| [Consolidated Statement of Changes in Equity (Unaudited)](#q2_003) | F-5 |
| [Consolidated Statements of Cash Flows (Unaudited)](#q2_004) | F-6 |
| [Notes to Consolidated Financial Statements](#q2_005) | F-7 |

---

---

| | |
|:---|:---|
|  | **PAGE** |
| **[INDEPENDENT AUDITOR'S REPORT](#a_001)** | F-18 |
| **ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS** |  |
| [Consolidated Balance Sheet](#a_002) | F-19 |
| [Consolidated Statement Of Income And Comprehensive Income](#a_003) | F-20 |
| [Consolidated Statement of Changes in Equity](#a_004) | F-21 |
| [Consolidated Statements of Cash Flows](#a_005) | F-22 |
| [Notes to Consolidated Financial Statements](#a_006) | F-23 |

---

**NIXPLAY INC.**

**CONSOLIDATED BALANCE SHEET**

**AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021 (AUDITED)**

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2022** | **December 31,<br> 2021** |
| **ASSETS** | | |
| **Current assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2552855 | $9060578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 3920743 | 9519584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 3107885 | 688551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 12881676 | 12286053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivables | 100117 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 48096 | 48386 |
| **Total current assets** | 22611372 | 31603152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 171463 | 159787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right of use assets | 61782 | 180734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 1904334 | 2185703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 199497 | 200480 |
| **Total non-current assets** | 2337076 | 2726704 |
| **Total assets** | $**24948448** | $**34329856** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | $4732780 | $5674324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 3300688 | 5252045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 465215 | 415420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 4520755 | 4176632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 52814 | 165234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payables |  | 104021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank borrowings | 7494545 | 9400893 |
| **Total current liabilities** | 20566797 | 25188569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | – | 13754 |
| **Total non-current liabilities** | – | 13754 |
| **Total liabilities** | 20566797 | 25202323 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 400 | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share premium | 2243352 | 2243352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves | 988592 | 4489629 |
| **Equity attributable to shareowners of Nixplay Inc.** | 3232344 | 6733381 |
| Equity attributable to non-controlling interests | 1149307 | 2394152 |
| **Total Equity** | 4381651 | 9127533 |
| **Total liabilities and equity** | $**24948448** | $**34329856** |

---

The accompanying notes to these consolidated unaudited interim financial statements are an integral part of these statements. In the opinion of management, all adjustments necessary to make the consolidated unaudited financial statements presented here not misleading have been included.

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME**

**FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended<br> June 30, 2022** | **Six months ended<br> June 30, 2021** |
| **Revenues** | $**9025516** | $**19782801** |
| Cost of sales | (6248538) | (11584426) |
| Gross profit | **2776978** | **8198375** |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development, General and administrative | (5392988) | (6097660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling expenses | (1530939) | (1805409) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | (170510) | (136832) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | (191590) | (235767) |
| Total operating expenses | (7286027) | (8275668) |
| Net Operating Income/ (expense) | **(4509049)** | **(77293)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government grants | 29563 | 144506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income and other income | 37563 | 42521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses | (410837) | (452906) |
| Total other income/ (expense) | (343711) | (265879) |
| **Income/ (loss) before income tax expense** | **(4852760)** | **(343172)** |
| Income tax (expense)/ income | 33695 | (3181) |
| **Net income/ (loss)** | $**(4819065)** | $**(346353)** |
| Less: Net (income)/ loss attributable to non-controlling interests | 1264041 | 90225 |
| **Net income/ (loss) attributable to shareowners of Nixplay Inc.** | $**(3555024)** | $**(256128)** |
| Changes in fair value of financial asset at fair value through other comprehensive income | (306733) | (103345) |
| Foreign currency translation gain/ (loss) | 209406 | (34914) |
| **Other comprehensive income/ (expense)** | **(97327)** | **(138259)** |
| **Total comprehensive income/ (expense)** | $**(4916392)** | $**(484612)** |
| Less: Total comprehensive (income)/ expense attributable to non-controlling interests | 1289570 | 126241 |
| **Total comprehensive income/ (expense) attributable to shareowners of Nixplay Inc.** | $**(3626822)** | $**(358371)** |

---

The accompanying notes to these consolidated unaudited interim financial statements are an integral part of these statements. In the opinion of management, all adjustments necessary to make the consolidated unaudited financial statements presented here not misleading have been included.

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF CHANGES IN EQUITY<br> FOR THE YEAR FROM JANUARY 1, 2021 TO DECEMBER 31, 2021 (AUDITED) and<br> INTERIM PERIOD FROM JANUARY 1, 2022 TO JUNE 30, 2022 (UNAUDITED)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share capital** | **Share capital** | **Share premium** | **General reserve** | **Retained earnings** | **Foreign<br> exchange reserve** | **Share option reserve** | **FVOCI<br> reserve** | **Non-controlling interests** | **Total equity** |
|  | **Shares** | **Amount** | | | | | | | | |
| **At January 1, 2021** | 4000000 | $400 | $2050012 | $159134 | $1519362 | $(766307) | $1934452 | $27601 | $1696285 | $6620939 |
| **Profit for the year** |  |  |  |  | 1423234 |  |  |  | 506052 | 1929286 |
| **Other comprehensive income/ (expense)** | – | – | – | – | – | 102503 | – | (42643) | 21284 | 81144 |
| **Total comprehensive income/ (expense)** |  |  |  |  | 1423234 | 102503 |  | (42643) | 527336 | 2010430 |
| **Equity-settled share-based compensation expense** |  |  |  |  |  |  | 155864 |  | 55420 | 211284 |
| **Change in interest held by non-controlling interests** | – | – | 193340 | (1305) | (12460) | 6285 | (15865) | (226) | 115111 | 284880 |
| **At December 31, 2021** | 4000000 | $400 | $2243352 | $157829 | $2930136 | $(657519) | $2074451 | $(15268) | $2394152 | $9127533 |
| **Profit/ (Loss) for the period** |  |  |  |  | (3555024) |  |  |  | (1264041) | (4819065) |
| **Other comprehensive income/ (expense)** | – | – | – | – | – | 154479 | – | (226277) | (25529) | (97327) |
| **Total comprehensive income/ (expense)** |  |  |  |  | (3555024) | 154479 |  | (226277) | (1289570) | (4916392) |
| **Equity-settled share-based compensation expense** | – | – | – | – | – | – | 125785 | – | 44725 | 170510 |
| **At June 30, 2022** | 4000000 | $400 | $2243352 | $157829 | $(624888) | $(503040) | $2200236 | $(241545) | $1149307 | $4381651 |

---

The accompanying notes to these consolidated unaudited interim financial statements are an integral part of these statements. In the opinion of management, all adjustments necessary to make the consolidated unaudited financial statements presented here not misleading have been included.

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS** 

**FOR THE INTERIM PERIODS FROM JANUARY 1, 2022 TO JUNE 30, 2022 (UNAUDITED) AND<br> FROM JANUARY 1, 2021 TO JUNE 30, 2021 (UNAUDITED)<br>** 

<br> ---

| | | |
|:---|:---|:---|
|  | **Six months ended<br> June 30, 2022** | **Six months ended <br> June 30, 2021** |
| **Cash flows from operating activities:** | | |
| **Profit/(loss) before income tax** | $**(4852760)** | $**(343172)** |
| **Adjustments for:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 73711 | 103231 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of right-of-use assets | 117870 | 131536 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance costs | 410837 | 452906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (36927) | (41393) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (275) | (386) |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy charge on other financial assets | 11538 | 11048 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based compensation expenses | 170510 | 125801 |
| **Operating profit/(loss) before working capital changes** | **(4105496)** | **439571** |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in inventories | (595623) | (9345823) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in trade and other receivables | 3179507 | 741935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease/(increase) in amount due from shareholders |  | (2115) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Decrease)/increase in trade and other payables | (2892901) | 676540 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in contract liabilities | 49795 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in amounts due to directors | 265988 | (18972) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in amounts due to non-controlling interests | (123749) | (78107) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in amounts due to related parties | (15940) | (23238) |
| **Cash (used in)/ generated from operations** | **(4238419)** | **(7610209)** |
| Income taxes (paid)/received | (165127) | 263098 |
| **Net cash (used in)/ generated from operating activities** | **(4403546)** | **(7347111)** |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (86768) | (109359) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales proceed from disposal of property and equipment | 275 | 386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received | 64 | 567 |
| **Net cash used in investing activities** | **(86429)** | **(108406)** |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans from directors | $47854 | $31466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from/ (repayments of) loans from non-controlling interests | 150332 | (266795) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans from related parties | 19638 | 189752 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Repayments of)/proceeds from bank borrowings | (1906348) | (2914088) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of principal portion of the lease liabilities | (125069) | (101462) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | (410837) | (452906) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Employee Share Acquisition Plan | – | 197873 |
| **Net cash (used in)/generated from financing activities** | **(2224430)** | **(3316160)** |
| **Net (decrease)/increase in cash and cash equivalents** | **(6714405)** | **(10771677)** |
| Cash and cash equivalents at beginning of period | 9060578 | 14916353 |
| Effect of foreign exchange rate changes | 206682 | (43151) |
| **Cash and cash equivalents at end of period** | $**2552855** | $**4101525** |

---

The accompanying notes to these consolidated unaudited interim financial statements are an integral part of these statements. In the opinion of management, all adjustments necessary to make the consolidated unaudited financial statements presented here not misleading have been included.

**NIXPLAY INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**AS AT JUNE 30 2022**

**Note 1 – Organization and Operations**

Nixplay Inc. ("The Company") was incorporated in the state of Delaware in June 2022. The Company does not have any business or operating activities. Nixplay ("Nixplay Cayman"), a private company was incorporated in Cayman Islands in July 2014. Nixplay Cayman's principal activity is investment holding while its subsidiaries are engaged in the design and trading of digital photo frames and signage.

Effective September 11, 2022, Nixplay Inc. issued 3,990,000 shares of common stock in exchange for 73.77% ownership interest in Nixplay Cayman. This transaction resulted in Solon, an entity wholly owned by Mark Palfreeman and the controlling shareholder of Nixplay Cayman, obtaining 100% of voting interest in Nixplay Inc. The merger of Nixplay Cayman into Nixplay Inc., which has nominal net assets, results in Nixplay Cayman having control of the combined entity. Accordingly, this is considered to be a capital transaction, rather than a business combination, equivalent to the issuance of ownership interests by Nixplay Cayman for the net assets of Nixplay Inc, accompanied by a recapitalization. The accounting is identical to that resulting from a reverse acquisition, except that no goodwill or other intangible is recorded.

The condensed combined balance sheet has been prepared as if the transaction had occurred as of June 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nixplay Inc.** | **Nixplay<br> Cayman** | **Transaction Accounting Adjustment** | **Pro Forma<br> Combined** |
| **Total assets** | $**6733382** | $**24948448** | $**(6733382)** | $**24948448** |
| **Total liabilities** |  | 20566797 |  | 20566797 |
| **Stockholders' equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 400 | 88663 | (88663) | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock |  | (6367) | 6367 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share premium | 6732982 | 2959257 | (7448887) | 2243352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves |  | 1340098 | (351506) | 988592 |
| Non-controlling interests | – | – | 1149307 | 1149307 |
| **Total equity** | 6733382 | 4381651 | (6733382) | 4381651 |
| **Total liabilities and equity** | $**6733382** | $**24948448** | $**(6733382)** | $**24948448** |

---

The pro forma condensed combined statements of operations have been prepared as if this transaction had occurred for the interim period ended June 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nixplay Inc.** | **Nixplay** <br> **Cayman** | **Transaction Accounting Adjustment** | **Pro Forma<br> Combined** |
| **Revenues** | $**–** | $**9025516** | $**–** | $**9025516** |
| Cost of sales | – | (6248538) | – | (6248538) |
| **Gross profit** | **–** | **2776978** | **–** | **2776978** |
| Total operating expenses | – | (7286027) | – | (7286027) |
| **Net Operating Income** | **–** | **(4509049)** | **–** | **(4509049)** |
| Total other income/ (expense) | – | (343711) | – | (343711) |
| Income/ (loss) before income tax expense |  | **(4852760)** |  | **(4852760)** |
| Income tax expense | – | 33695 | – | 33695 |
| **Net income/ (loss)** | **–** | **(4819065)** | **–** | **(4819065)** |
| Less: Net (income)/ loss attributable to non-controlling interests | – | – | 1264041 | 1264041 |
| **Net income/ (loss) attributable to shareowners of Nixplay Inc.** | **–** | **(4819065)** | **1264041** | **(3555024)** |
| **Other comprehensive income/ (expense)** | **–** | **(97327)** | **–** | **(97327)** |
| **Total Comprehensive Income/ (expense)** | **–** | **(4916392)** | **–** | **(4916392)** |
| Less: Total comprehensive (income)**/** expense attributable to non-controlling interests |  |  | 1289570 | 1289570 |
| **Total comprehensive income/ (expense) attributable to shareowners of Nixplay Inc.** | $**–** | $**(4916392)** | $**(1289570)** | $**(3626822)** |

---

The consolidated financial statements represent the activity of Nixplay Cayman from July 2014 forward, and the consolidated activity of Nixplay Inc. and Nixplay Cayman from September 11, 2022 forward. Nixplay Inc., Nixplay Cayman and its subsidiaries are hereinafter referred to collectively as the "Group" or "We".

**Note 2 – Summary of Significant Accounting Policies** 

<u>Basis of Presentation</u>

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles as promulgated in the United States of America ("US GAAP"). In the opinion of management, all adjustments considered necessary for the fair presentation of the financial statements for the periods presented have been included.

<u>Functional and presentation currency</u>

The consolidated financial statements are presented in U.S. dollars ("$"), which is the functional currency of the Company. The functional currency of the Company's subsidiaries is the currency of primary economic environment in which it operates.

<u>Business combination and principles of Consolidation</u>

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. We have eliminated all intercompany transactions and balances between entities together with unrealized profits are eliminated in full in preparing the consolidated financial statements.

<u>Use of Estimates</u> 

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures thereto. Actual results could differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

Significant estimates inherent in the preparation of the accompanying financial statements include valuation of provision for refunds and chargebacks, allowance for doubtful accounts, stock-based compensation, income taxes and valuation of the financial assets.

<u>Financial Instruments</u> 

Pursuant to Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and 825 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1: Quoted prices for identical assets or liabilities in active markets or observable inputs*;*

Level 2: Significant observable inputs that can be corroborated by observable market data; and

Level 3: Significant unobservable inputs that cannot be corroborated by observable market data.

The Group's financial instruments consist primarily of cash, trade and other receivables, trade and other payables, bank borrowings, amount due from/ (to) and loans from directors, non-controlling interests and related parties. Pursuant to ASC 820 and 825, the fair value of certain financial assets and liabilities are determined based on "Level 3" inputs as shown below. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of the short-term nature of these items.

The following table presents assets and liabilities that are measured and recognized at fair value as of June 30, 2022 and December 31, 2021:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| **June 30, 2022** |  |  |  |
| **Assets** |  |  |  |
| Key management insurance contracts classified as financial assets |  |  | $1904334 |
| **Liabilities** |  |  |  |
| Defined benefit pension obligations classified at financial liabilities |  |  | $153383 |
| **December 31, 2021** |  |  |  |
| **Assets** |  |  |  |
| Key management insurance contracts classified as financial assets |  |  | $2185703 |
| **Liabilities** |  |  |  |
| Defined benefit pension obligations classified at financial liabilities |  |  | $159739 |

---

<u>Foreign Currency</u>

Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at average exchange rates for the applicable period. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income.

For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur.

<u>Cash and Cash Equivalents</u> 

Cash equivalents are short-term, highly liquid investment and deposits that are readily convertible into cash, with original maturities of three months or less.

Pledged bank deposits are used to secure the import loan facilities from financial institutions. They are restricted as to withdrawal or use. The deposits are included with Cash and cash equivalents when reconciling the balances shown on the statement of cash flows.

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022** | **December 31, 2021** |
| Pledged bank deposits | $808677 | $947117 |
| Cash and bank balances | 1744178 | 8113460 |
| **Total Cash and cash equivalents** | $**2552855** | $**9060577** |

---

<u>Trade Receivables</u>

Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days from the invoice date. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

Management provides for probable uncollectible accounts through an allowance for doubtful accounts. The allowance is estimated based on historical credit loss experiences and management's assessment of the current status of individual accounts. Management estimated that the carrying amounts as of June 30, 2022 and December 31, 2021 could be fully recovered. No allowance has been recognized on trade receivables as the amount involved is insignificant.

<u>Inventory</u>

Inventories are initially recognized at cost, and subsequently at the lower of cost or net realizable value. The Group has established the policy of capitalizing all costs of purchase, cost of conversion and other direct costs incurred in bring the inventories to their present location and condition for the inventory valuation. Cost is calculated at first-in first-out method. Net realizable value represents the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion and transportation to make the sales.

As of June 30, 2022 and December 31, 2021, there are $12,881,676 and $12,286,053 in finished goods in inventory.

<u>Property and equipment</u> 

Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The straight-line method of depreciation is used over the following estimated useful lives:

---

| | |
|:---|:---|
| Leasehold improvements | 2 years |
| Office equipment | 2 years |
| Furniture and fixtures | 2 years |
| Mould and toolings | 2 years |

---

Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. When equipment is retired or sold, the cost and related accumulated depreciation accounts are relieved, and the resultant gain or loss is reflected in operations.

<u>Leases</u>

All leases are required to be capitalized in the Balance Sheet as right-of-use assets and lease liabilities. The Group has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of less than 12 months. The lease payments associated with those leases have been expensed on straight-line basis over the lease term.

Operating lease right-of-use asset is initially recognized at cost, less any accumulated depreciation and any impairment losses, and adjusted for any remeasurement of lease liability.

Lease liability is recognized at present value of lease payments that are not paid at the date of commencement of the lease. The lease payments are discounted using the interest rate implicit in the lease. The Group uses the Group's incremental borrowing rate.

<u>Contract Liabilities</u>

Contract liabilities, or deferred revenue, consist of advance payments from clients and billings in excess of revenues recognized. The Group classifies deferred revenue as current on the consolidated balance sheet and is recognized as revenue as the Group performs under the contract. These balances are generally recognized as revenue within one year and are short-term in nature.

There are $465,215 and $415,420 in contract liabilities as of June 30, 2022 and December 31, 2021 respectively.

<u>Non-controlling Interests</u>

The Group has minority members representing ownership interests of 26.23% as of June 30, 2022 and December 31, 2021. The Group accounts for these minority, or non-controlling interests, pursuant to ASC 810-10-65 whereby gains and losses in a company with a non-controlling interest are allocated to the non-controlling interest based on the ownership percentage of the non-controlling interest, even if that allocation results in a deficit non-controlling interest balance.

<u>Revenue recognition</u>

All revenues from exchange transactions are recorded in accordance with ASC 606, which is recognized when: (i) a contract with a customer has been identified, (ii) the performance obligation(s) in the contract have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation at a point in time or over time.

The Group's revenues are primarily generated from the sale of digital photo frames and signage. This represents a single performance obligation and are earned at a point in time when the goods have been shipped. Invoices are usually payable within 15-60 days. The Group's revenues also contain membership subscription income, which are recognized over the terms of subscription period.

<u>Stock-based Compensation</u>

The Group accounts for employees and others equity-based compensation in accordance with ASC 718 "Share-based Compensation". Accordingly, compensation expense for employees' and others' services received in exchange for equity awards is based on the grant date fair value of those awards and is recognized over the requisite service period for the respective award.

The Group's equity-based awards issued include stock option awards. The Group records forfeitures as they occur. Compensation expense resulting from time vesting based awards is recognized in the Group's consolidated statement of operations and comprehensive income at the grant date fair value over the requisite service period (typically three to five years). The Group estimates grant date fair value using a Hull-White Binominal model that uses assumptions including expected volatility, expected term, and the expected risk-free rate of return. The Group has determined that the Hull-White Binominal model, as well as the underlying assumptions used in its application, is appropriate in estimating the fair value of its award grants.

<u>Income Tax</u>

The Group is subject to both the United States of America (U.S.) and foreign income taxes. A current tax asset or liability is recognized for the estimated taxes payable or refundable on tax returns for the year.

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the basis of receivables, inventory, property and equipment and accrued expenses for financial and income tax reporting.

**Note 3 – Other Financial Assets**

The other financial assets in non-current assets represented the key man insurance contracts of $1,904,334 and $2,185,703 as of June 30, 2022 and December 31, 2021, respectively. The Group's Hong Kong subsidiary purchased life insurance contracts in September 2016 and September 2020 for a director of the Group. The total insured amount is US$7,600,000. The contracts will mature on the date when the insured reaches the age of 100 or death of the insured and the beneficiary is designated to be the Group's Hong Kong subsidiary.

Discounted cash flow approach was adopted in the fair value measurement of the Group's key management insurance contract as at June 30, 2022 with the significant unobservable inputs used, being 4.13% to 4.32% (December 31, 2021: 1.73% to 2.03%) per annum which is adopted as the discount rate.

The fair value of life insurance contract is based on unobservable inputs, it is measured using the discounted cash flow and is disclosed as categorized under Level 3 of the fair value measurement hierarchy. The life insurance contracts are pledged to a bank to secure a clean import loan facilities granted to the Group's Hong Kong subsidiary.

**Note 4 – Other Financial Liabilities**

The following is a summary of the Group's other financial liabilities:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022** | **December 31, 2021** |
| Amounts due to directors | $592266 | $326279 |
| Amounts due to non-controlling interests | 90526 | 214275 |
| Amounts due to related parties | 15697 | 31637 |
| Loans from directors | 546958 | 499104 |
| Loans from non-controlling interests | 2805455 | 2655123 |
| Loans from related parties | 469853 | 450214 |
|  | $**4520755** | $**4176632** |

---

The loans from directors, non-controlling interests and related parties are unsecured and bear interest at 10% per annum. The loans are fully repayable on February 28, 2023.

The amounts due to directors, non-controlling interests and related parties are unsecured, interest-free and repayable on demand.

**Note 5 – Bank Borrowings and Facilities**

The following is a summary of the Group's bank borrowings:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022** | **December 31, 2021** |
| **Current portion:** |  |  |
| Bank loans due for repayment within one year | $7156728 | $8521849 |
| Bank loans due for repayment after one year which contain a repayment on demand clause | 337817 | 879044 |
|  | $**7494545** | $**9400893** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of June 30, 2022, the Group's Hong Kong subsidiary held an import loan facility of HK$12,000,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by a personal guarantee from a director
to the extent of HK$12,000,000 and a guarantee to the extent of HK$9,600,000 from the Hong Kong Mortgage Corporation Limited under the
SME Financing Guarantee Scheme. Interest is charged at 1.75% above Bank's Best Lending rate per annum for HK$ drawings and charged
at 4% above London Interbank Offered Rate per annum for U.S. dollar drawings.

As of June 30, 2022, the outstanding bank loans under this facility totaled $944,450 (Compared to December 31, 2021: $1,501,547).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of June 30, 2022, the Group's Hong Kong subsidiary held a clean import loan facility of HK$73,500,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by an unlimited personal guarantee
from the director, unlimited cross-corporate guarantees from the Group, the Group's UK and US subsidiaries and life insurance contracts
under HSBC Jade Global Generations Universal Life Insurance plan with total insured amount of $7,600,000. Interest is charge at 1.75%
above Bank's Best Lending rate per annum for HK$ drawings and charged at 4% above London Interbank Offered Rate per annum for U.S.
dollars drawings.

As of June 30, 2022, the outstanding bank loans under this facility totaled $4,628,734 (Compared to December 31, 2021: $5,927,641).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of June 30, 2022, the Group's Hong Kong subsidiary held a clean import loan facility of US$3,500,000
from a Hong Kong financial institution with maximum tenor of 120 days. The facility is secured by a pledged deposit not less than 14%
of the aggregate outstanding bank loans under this facility, an unlimited personal guarantee from the director and unlimited cross-corporate
guarantees from the Group, the Group's UK and US subsidiaries. Interest is charged at 2.5% above London Interbank Offered Rate per
annum.

As of June 30, 2022, the outstanding bank loans under this facility totaled $1,307,392 (Compared to December 31, 2021: $479,808).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of June 30, 2022, the Group's Hong Kong subsidiary held an import loan facility of HK$6,000,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by a personal guarantee from the director
to the extent of HK$6,000,000 and a guarantee from the Hong Kong Mortgage Corporation Limited under the SME Financing Guarantee Scheme.
Interest is charged at 1.75% above Bank's Best Lending rate per annum for HK$ drawings and charged at 4% above London Interbank
Offered Rate per annum for U.S. dollar drawings.

As of June 30, 2022, there were no outstanding bank loans under this facility (Compared to December 31, 2021: $612,853).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As of June 30, 2022, the Group's Hong Kong subsidiary held a loan of US$810,716 from a Hong Kong
financial institution to finance the payment of insurance premium of the life insurance contract of a director of the Group. Interest
is charged at one- month London Interbank Offered Rate plus 1% per annum payable monthly in arrears and the loan will mature in September
2023. As of June 30, 2022, the outstanding loan amounted to $337,817 (Compared to December 31, 2021: $472,931).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of June 30, 2022, the Group's Hong Kong subsidiary held a term loan of HK$4,000,000 from a Hong
Kong financial institution. The loan is secured by a personal guarantee from director to the extent of $3,600,000 and a guarantee from
HKMC Insurance Limited under SME Financing Guarantee Scheme. Interest is charged at 2.75% per annum payable monthly in arrears and the
principal will be repaid monthly in arrears commencing 12 months after the first drawdown date and the loan will mature in May 2023.

As of June 30, 2022, the outstanding loan amounted to $276,152 (Compared to December 31, 2021: $406,113).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Current liabilities include bank loans of $337,817 as of June 30, 2022 (Compared to December 31, 2021:
$879,044) that are not scheduled to be repaid within one year. They are classified as current liabilities as the related loan agreements
contain a clause that provides the lenders with an unconditional right to demand repayment at any time at its own discretion. The portion
of these bank loans due for repayment after one year which contain a repayment on demand clause and classified as a current liability
is not expected to be settled within one year.

**Note 6 – Income Tax Expenses**

Provision/ (benefit) for Income taxes consists of the following during the interim periods ended:

---

| | | |
|:---|:---|:---|
|  | **Six months ended<br> June 30, 2022** | **Six months ended<br> June 30, 2021** |
| **Current:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $(29614) | $– |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | (4081) | 3181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current | $(33695) | $3181 |
| **Deferred:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Deferred | – | – |
| **Total Income Tax Expenses** | $**(33695)** | $**3181** |

---

**Note 7 – Stock Based Compensation**

<u>Employee Share Acquisition Plan</u>

In March 2021, the Group implemented an Employee Share Acquisition Plan (the "ESAP") to incentivize the Group's employees. Under the ESAP, eligible employees may apply to acquire ordinary shares in Nixplay Cayman, subject to the discretion and approval of the Board of Directors on the maximum number of shares, maximum funding for additional shares and bonus shares for each eligible employee.

During the six months ended June 30, 2021, Nixplay Cayman issued 47,920 shares under the ESAP.

**Note 8 – Related Party Transactions**

During the periods ended June 30, 2022 and 2021, the Group entered into the following transactions with related parties:

---

| | | | |
|:---|:---|:---|:---|
| **Related party** | **Type of Transaction** | **Transaction amount** | **Transaction amount** |
|  |  | **Six months ended <br> June 30, 2022** | **Six months ended <br> June 30, 2021** |
| Non-executive directors | Directors' fee | $49155 | $29916 |
|  | Equity-settled share-based compensation expenses | 11186 | 20007 |
| Directors | Directors' salaries | $155448 | $389449 |
|  | Equity-settled share-based compensation expenses |  | 8842 |
|  | Loan interest expenses | 28288 | 24739 |
| Related parties | Loan interest expenses | $23183 | $19497 |
| Non-controlling interests | Loan interest expenses | $136908 | $140624 |

---

**Note 9 – Subsequent Events**

Management has evaluated subsequent events through November 15, 2022, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in the financial statements apart from the group restructure disclosed in Note 1 and those discussed below.

In September 2022, the Company filed an Offering Statement to conduct an offering of Common Stock pursuant to Regulation A. The Company is seeking to sell up to 2,461,075 shares at $6.0949 per share, for maximum proceeds of $15,000,006.00. The Offering Statement was not yet qualified as of the date the financial statements were available to be issued.

**NIXPLAY, INC.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**AND**

**INDEPENDENT AUDITOR'S REPORT**

**AS OF DECEMBER 31, 2021 AND 2020** 

**AND** 

**FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020** 

**Report of Independent Registered Public Accounting Firm**

To the shareholders and the board of directors of Nixplay Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Nixplay Inc. as of December 31, 2021 and 2020, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/S/ BF Borgers CPA PC

**BF Borgers CPA PC**

**PCAOB ID 5041**

We have served as the Company's auditor since 2022

Lakewood, CO

September 28, 2022

**NIXPLAY INC.**

**CONSOLIDATED BALANCE SHEET**

**AS OF DECEMBER 31, 2021 AND 2020**

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $9060578 | $14916353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 9519584 | 7066659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 688551 | 1196060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 12286053 | 6201192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivables |  | 366873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 48386 | 49134 |
| **Total current assets** | 31603152 | 29796271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 159787 | 174090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right of use assets | 180734 | 311790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 2185703 | 2244280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 200480 | 96112 |
| **Total non-current assets** | 2726704 | 2826272 |
| **Total assets** | $**34329856** | $**32622543** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | $5674324 | $2109327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 5252045 | 6710285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 415420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 4176632 | 4147136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 165234 | 179946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payables | 104021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank borrowings | 9400893 | 12674663 |
| **Total current liabilities** | 25188569 | 25821357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank borrowings |  | 67015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 13754 | 113232 |
| **Total non-current liabilities** | 13754 | 180247 |
| **Total liabilities** | 25202323 | 26001604 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 400 | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share premium | 2243352 | 2050012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves | 4489629 | 2874242 |
| **Equity attributable to shareowners of Nixplay Inc.** | 6733381 | 4924654 |
| Equity attributable to non-controlling interests | 2394152 | 1696285 |
| **Total Equity** | 9127533 | 6620939 |
| **Total liabilities and equity** | $**34329856** | $**32622543** |

---

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME**

**FOR THE YEAR ENDED DECEMBER 31, 2021 AND 2020<br>** 

<br> ---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Revenues** | $57865975 | $55521838 |
| Cost of sales | (36452328) | (34645885) |
| Gross profit | **21413647** | **20875953** |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development, General and administrative | (12352409) | (12423027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling expenses | (5633172) | (5107209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | (211277) | (113464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | (434927) | (523365) |
| Total operating expenses | (18631785) | (18167065) |
| Net Operating Income | **2781861** | **2708888** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government grants including PPP loan forgiveness | 221149 | 159098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income and other income | 83929 | 61734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenses | (1012599) | (959930) |
| Total other income (expense) | (707521) | (739098) |
| **Income (loss) before income tax expense** | **2074340** | **1969790** |
| Income tax expense | (145055) | (305329) |
| **Net income** | $**1929286** | $**1664462** |
| Less: Net income attributable to non-controlling interests | (506052) | (426435) |
| **Net income attributable to shareowners of Nixplay Inc.** | $**1423234** | $**1238027** |
| Changes in fair value of defined benefit scheme at fair value through other comprehensive income | 57508 | (17026) |
| Changes in fair value of financial asset at fair value through other comprehensive income | (115314) | 85887 |
| Foreign currency translation gain (loss) | 138950 | (59109) |
| **Other comprehensive income** | **81144** | **9752** |
| **Total comprehensive income** | $**2010430** | $**1674214** |
| Less: Total comprehensive income attributable to non-controlling interests | (527336) | (428933) |
| **Total comprehensive income attributable to shareowners of Nixplay Inc.** | $**1483094** | $**1245281** |

---

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF CHANGES IN EQUITY<br> AS AT DECEMBER 31, 2021 AND 2020**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share capital** | **Share capital** | **Share premium** | **General reserve** | **Retained earnings** | **Foreign<br> exchange reserve** | **Share option reserve** | **FVOCI<br> reserve** | **Non-controlling interests** | **Total equity** |
|  | **Shares** | **Amount** | | | | | | | | |
| **At Jan 1, 2020** | 4000000 | $400 | $2050012 | $159134 | $281335 | $(722342) | $1849976 | $(23618) | $1238253 | $4833151 |
| **Profit for the year** |  |  |  |  | 1238027 |  |  |  | 426435 | 1664462 |
| **Other comprehensive income** | – | – | – | – | – | (43965) | – | 51219 | 2498 | 9752 |
| **Total comprehensive income** |  |  |  |  | 1238027 | (43965) |  | 51219 | 428933 | 1674214 |
| **Equity-settled share-based compensation expense** | – | – | – | – | – | – | 84476 | – | 29098 | 113574 |
| **At Dec 31, 2020** | 4000000 | $400 | $2050012 | $159134 | $1519362 | $(766307) | $1934452 | $27601 | $1696285 | $6620939 |
| **Profit for the year** |  |  |  |  | 1423234 |  |  |  | 506052 | 1929286 |
| **Other comprehensive income** | – | – | – | – | – | 102503 | – | (42643) | 21284 | 81144 |
| **Total comprehensive income** |  |  |  |  | 1423234 | 102503 |  | (42643) | 527336 | 2010430 |
| **Equity-settled share-based compensation expense** |  |  |  |  |  |  | 155864 |  | 55420 | 211284 |
| **Change in interest held by non-controlling interests** | – | – | 193340 | (1305) | (12460) | 6285 | (15865) | (226) | 115111 | 284880 |
| **At Dec 31, 2021** | 4000000 | $400 | $2243352 | $157829 | $2930136 | $(657519) | $2074451 | $(15268) | $2394152 | $9127533 |

---

**NIXPLAY INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS** 

**AS AT DECEMBER 31, 2021 AND 2020<br>** 

<br> ---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Cash flows from operating activities:** |  |  |
| **Profit before income tax** | $**2074341** | $**1969791** |
| **Adjustments for:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 182360 | 213150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of right-of-use assets | 252568 | 310216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance costs | 1012599 | 959930 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (79828) | (53349) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (386) | (1562) |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy charge on other financial assets | 22610 | 84155 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based compensation expenses | 211284 | 113574 |
| **Operating profit before working capital changes** | **3675548** | **3595905** |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in inventories | (6084861) | 6606967 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in trade and other receivables | (1960060) | (2952758) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease/(increase) in amount due from shareholders | 5404 | (2204) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in trade and other payables | 2216944 | (3613922) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in contract liabilities | 415420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in amounts due to directors | 47085 | 24343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in amounts due to non-controlling interests | (3633) | (2279) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Decrease)/increase in amounts due to related parties | (6940) | 13703 |
| **Cash generated (used in)/from operations** | **(1695093)** | **3669755** |
| Income taxes received/(paid) | 199634 | (962096) |
| **Net cash generated (used in)/from operating activities** | **(1495459)** | **2707659** |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (168423) | (109149) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales proceed from disposal of property and equipment | 386 | 2492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received | 616 | 567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in insurance contract |  | (1141284) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in unlisted debt security | (4656) | (31900) |
| **Net cash used in investing activities** | **(172077)** | **(1279274)** |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans from directors | 30254 | 125767 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Repayments of)/proceeds from loans from non-controlling interests | (221732) | 468259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans from related parties | 184462 | 17267 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Repayments of)/proceeds from bank borrowings | (3340785) | 1616282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of principal portion of the lease liabilities | (216184) | (297354) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | (1012599) | (959930) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Employee Share Acquisition Plan | 251247 | – |
| **Net cash (used in)/generated from financing activities** | **(4325337)** | **970291** |
| **Net (decrease)/increase in cash and cash equivalents** | **(5992873)** | **2398676** |
| Cash and cash equivalents at beginning of year | 14916353 | 12574039 |
| Effect of foreign exchange rate changes | 137098 | (56362) |
| **Cash and cash equivalents at end of year** | $**9060578** | $**14916353** |

---

**NIXPLAY INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**AS AT DECEMBER 31, 2021**

**Note 1 – Organization and Operations** 

Nixplay Inc. ("The Company") was incorporated in the state of Delaware in June 2022. The Company does not have any business or operating activities. Nixplay ("Nixplay Cayman"), a private company was incorporated in Cayman Islands in July 2014. Nixplay Cayman's principal activity is investment holding while its subsidiaries are engaged in the design and trading of digital photo frames and signage.

Effective September 11, 2022, Nixplay Inc. issued 3,990,000 shares of common stock in exchange for 73.77% ownership interest in Nixplay Cayman. This transaction resulted in Solon, an entity wholly owned by Mark Palfreeman and the controlling shareholder of Nixplay Cayman, obtaining 100% of voting interest in Nixplay Inc. The merger of Nixplay Cayman into Nixplay Inc., which has nominal net assets, results in Nixplay Cayman having control of the combined entity. Accordingly, this is considered to be a capital transaction, rather than a business combination, equivalent to the issuance of ownership interests by Nixplay Cayman for the net assets of Nixplay Inc, accompanied by a recapitalization. The accounting is identical to that resulting from a reverse acquisition, except that no goodwill or other intangible is recorded.

The condensed combined balance sheet has been prepared as if the transaction had occurred as of December 31, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nixplay Inc.** | **Nixplay<br> Cayman** | **Transaction Accounting Adjustment** | **Pro Forma<br> Combined** |
| **Total assets** | $**6733382** | $**34329856** | $**(6733382)** | $**34329856** |
| **Total liabilities** |  | 25202323 |  | 25202323 |
| **Stockholders' equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 400 | 88663 | (88663) | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock |  | (6367) | 6367 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share premium | 6732982 | 2959257 | (7448887) | 2243352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves |  | 6085980 | (1596351) | 4489629 |
| Non-controlling interests | – | – | 2394152 | 2394152 |
| **Total equity** | 6733382 | 9127533 | (6733382) | 9127533 |
| **Total liabilities and equity** | $**6733382** | $**34329856** | $**(6733382)** | $**34329856** |

---

The pro forma condensed combined statements of operations have been prepared as if this transaction had occurred for the year 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nixplay Inc.** | **Nixplay** <br> **Cayman** | **Transaction Accounting Adjustment** | **Pro Forma<br> Combined** |
| **Revenues** | $**–** | $**57865975** | $**–** | $**57865975** |
| Cost of sales | – | (36452328) | – | (36452328) |
| **Gross profit** | **–** | **21413647** | **–** | **21413647** |
| Total operating expenses | – | (18631785) | – | (18631785) |
| **Net Operating Income** | **–** | **2781861** | **–** | **2781861** |
| Total other income (expense) | – | (707521) | – | (707521) |
| Income (loss) before income tax expense |  | 2074340 |  | 2074340 |
| Income tax expense | – | (145055) | – | (145055) |
| **Net income** | **–** | **1929286** | **–** | **1929286** |
| Net income attributable to non-controlling interests | – | – | (506052) | (506052) |
| **Net income attributable to shareowners of Nixplay Inc.** | **–** | **1929286** | **(506052)** | **1423234** |
| **Other comprehensive income** | **–** | **81144** | **–** | **81144** |
| **Total Comprehensive Income** | **–** | **2010430** | **–** | **2010430** |
| Total comprehensive income attributable to non-controlling interests |  |  | (527336) | (527336) |
| **Total comprehensive income attributable to shareowners of Nixplay Inc.** | $**–** | $**2010430** | $**(527336)** | $**1483094** |

---

The consolidated financial statements represent the activity of Nixplay Cayman from July 2014 forward, and the consolidated activity of Nixplay Inc. and Nixplay Cayman from September 11, 2022 forward. Nixplay Inc., Nixplay Cayman and its subsidiaries are hereinafter referred to collectively as the "Group" or "We".

**Note 2 – Summary of Significant Accounting Policies** 

<u>Basis of Presentation</u>

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles as promulgated in the United States of America ("US GAAP"). In the opinion of management, all adjustments considered necessary for the fair presentation of the financial statements for the years presented have been included.

<u>Functional and presentation currency</u>

The consolidated financial statements are presented in U.S. dollars ("$"), which is the functional currency of the Company. The functional currency of the Company's subsidiaries is the currency of primary economic environment in which it operates.

<u>Business combination and principles of Consolidation</u>

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. We have eliminated all intercompany transactions and balances between entities together with unrealized profits are eliminated in full in preparing the consolidated financial statements.

<u>Use of Estimates</u>

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures thereto. Actual results could differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

Significant estimates inherent in the preparation of the accompanying financial statements include valuation of provision for refunds and chargebacks, allowance for doubtful accounts, stock-based compensation, income taxes and valuation of the financial assets.

<u>Financial Instruments</u>

Pursuant to Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and 825 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1: Quoted prices for identical assets or liabilities in active markets or observable inputs*;*

Level 2: Significant observable inputs that can be corroborated by observable market data; and

Level 3: Significant unobservable inputs that cannot be corroborated by observable market data.

The Group's financial instruments consist primarily of cash, trade and other receivables, trade and other payables, bank borrowings, amount due from/ (to) and loans from directors, non-controlling interests and related parties. Pursuant to ASC 820 and 825, the fair value of certain financial assets and liabilities are determined based on "Level 3" inputs as shown below. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of the short-term nature of these items.

The following table presents assets and liabilities that are measured and recognized at fair value as of December 31, 2021 and December 31, 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| **December 31, 2021** |  |  |  |
| **Assets** |  |  |  |
| Key management insurance contracts classified as financial assets |  |  | $2185703 |
| **Liabilities** |  |  |  |
| Defined benefit pension obligations classified at financial liabilities |  |  | $159739 |
| **December 31, 2020** |  |  |  |
| **Assets** |  |  |  |
| Key management insurance contracts classified as financial assets |  |  | $2244280 |
| Forward currency contracts classified as financial assets |  | $135436 |  |
| **Liabilities** |  |  |  |
| Defined benefit pension obligations classified at financial liabilities |  |  | $162338 |

---

<u>Foreign Currency</u>

Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at average exchange rates for the applicable period. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income.

For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions.

Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur.

<u>Cash and Cash Equivalents</u> 

Cash equivalents are short-term, highly liquid investment and deposits that are readily convertible into cash, with original maturities of three months or less.

Pledged bank deposits are used to secure the import loan facilities from financial institutions. They are restricted as to withdrawal or use. The deposits are included with Cash and cash equivalents when reconciling the balances shown on the statement of cash flows.

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Pledged bank deposits | $947117 | $516033 |
| Cash and bank balances | 8113460 | 14400320 |
| **Total Cash and cash equivalents** | $**9060577** | $**14916353** |

---

<u>Trade Receivables</u>

Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days from the invoice date. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

Management provides for probable uncollectible accounts through an allowance for doubtful accounts. The allowance is estimated based on historical credit loss experiences and management's assessment of the current status of individual accounts. Management estimated that the carrying amounts as of December 31, 2021 and 2020 could be fully recovered. No allowance has been recognized on trade receivables as the amount involved is insignificant.

<u>Inventory</u>

Inventories are initially recognized at cost, and subsequently at the lower of cost or net realizable value. The Group has established the policy of capitalizing all costs of purchase, cost of conversion and other direct costs incurred in bring the inventories to their present location and condition for the inventory valuation. Cost is calculated at first-in first-out method. Net realizable value represents the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion and transportation to make the sales.

As of December 31, 2021 and 2020, there are $12,286,053 and $6,201,192 finished goods.

<u>Property and equipment</u> 

Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The straight-line method of depreciation is used over the following estimated useful lives:

---

| | |
|:---|:---|
| Leasehold improvements | 2 years |
| Office equipment | 2 years |
| Furniture and fixtures | 2 years |
| Mould and toolings | 2 years |

---

Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. When equipment is retired or sold, the cost and related accumulated depreciation accounts are relieved, and the resultant gain or loss is reflected in operations.

<u>Leases</u>

All leases are required to be capitalized in the Balance Sheet as right-of-use assets and lease liabilities. The Group has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of less than 12 months. The lease payments associated with those leases have been expensed on straight-line basis over the lease term.

Operating lease right-of-use asset is initially recognized at cost, less any accumulated depreciation and any impairment losses, and adjusted for any remeasurement of lease liability.

Lease liability is recognized at present value of lease payments that are not paid at the date of commencement of the lease. The lease payments are discounted using the interest rate implicit in the lease. The Group uses the Group's incremental borrowing rate.

<u>Contract Liabilities</u>

Contract liabilities, or deferred revenue, consist of advance payments from clients and billings in excess of revenues recognized. The Group classifies deferred revenue as current on the consolidated balance sheet and is recognized as revenue as the Group performs under the contract. These balances are generally recognized as revenue within one year and are short-term in nature.

There are $415,420 and none contract liability as of December 31, 2021 and 2020 respectively.

<u>Non-controlling Interests</u>

The Group has minority members representing ownership interests of 26.23% as of December 31, 2021 and 25.62% in December 31, 2020. The Group accounts for these minority, or non-controlling interests, pursuant to ASC 810-10-65 whereby gains and losses in a company with a non-controlling interest are allocated to the non-controlling interest based on the ownership percentage of the non-controlling interest, even if that allocation results in a deficit non-controlling interest balance.

<u>Revenue recognition</u>

All revenues from exchange transactions are recorded in accordance with ASC 606, which is recognized when: (i) a contract with a customer has been identified, (ii) the performance obligation(s) in the contract have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation at a point in time or over time.

The Group's revenues are primarily generated from the sale of digital photo frames and signage. This represents a single performance obligation and are earned at a point in time when the goods have been shipped. Invoices are usually payable within 15-60 days. The Group's revenues also contain membership subscription income, which are recognized over the terms of subscription period.

<u>Stock-based Compensation</u>

The Group accounts for employees and others equity-based compensation in accordance with ASC 718 "Share-based Compensation". Accordingly, compensation expense for employees' and others' services received in exchange for equity awards is based on the grant date fair value of those awards and is recognized over the requisite service period for the respective award.

The Group's equity-based awards issued include stock option awards. The Group records forfeitures as they occur. Compensation expense resulting from time vesting based awards is recognized in the Group's consolidated statement of operations and comprehensive income at the grant date fair value over the requisite service period (typically three to five years). The Group estimates grant date fair value using a Hull-White Binominal model that uses assumptions including expected volatility, expected term, and the expected risk-free rate of return. The Group has determined that the Hull-White Binominal model, as well as the underlying assumptions used in its application, is appropriate in estimating the fair value of its award grants.

<u>Income Tax</u>

The Group is subject to both the United States of America (U.S.) and foreign income taxes. A current tax asset or liability is recognized for the estimated taxes payable or refundable on tax returns for the year.

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the basis of receivables, inventory, property and equipment and accrued expenses for financial and income tax reporting.

**Note 3 – Other Financial Assets**

The other financial assets in non-current assets represented the key man insurance contacts of $2,185,703 and $2,244,280 as of December 31, 2021 and 2020 respectively. The Group's Hong Kong subsidiary purchased life insurance contracts in September 2016 and September 2020 for a director of the Group. The total insured amount is US$7,600,000 (2020: US$7,600,000). The contracts will mature on the date when the insured reaches the age of 100 or death of the insured and the beneficiary is designated to be the Group's Hong Kong subsidiary.

Discounted cash flow approach was adopted in the fair value measurement of the Group's key management insurance contract as at December 31, 2021 with the significant unobservable inputs used, being 1.73% to 2.03% (2020: 1.32% to 1.9%) per annum which is adopted as the discount rate.

The fair value of life insurance contract is based on unobservable inputs, it is measured using the discounted cash flow and is disclosed as categorized under Level 3 of the fair value measurement hierarchy. The life insurance contracts are pledged to a bank to secure a clean import loan facilities granted to the Group's Hong Kong subsidiary.

**Note 4 – Other Financial Liabilities**

The following is a summary of the Group's other financial liabilities as of December 31:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Amounts due to directors | $326279 | $279194 |
| Amounts due to non-controlling interests | 214275 | 217908 |
| Amounts due to related parties | 31637 | 38577 |
| Loans from directors | 499104 | 468850 |
| Loans from non-controlling interests | 2655123 | 2876855 |
| Loans from related parties | 450214 | 265752 |
|  | $**4176632** | $**4147136** |

---

The loans from directors, non-controlling interests and related parties are unsecured and bear interest at 10% per annum. The loans are fully repayable on 28 February 2022.

The amounts due to directors, non-controlling interests and related parties are unsecured, interest-free and repayable on demand.

**Note 5 – Bank Borrowings and Facilities**

The following is a summary of the Group's bank borrowings as of December 31:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Current portion:** |  |  |
| Bank loans due for repayment within one year | $8521849 | $11405919 |
| Bank loans due for repayment after one year which contain a repayment on demand clause | 879044 | 1259097 |
| PPP loan | – | 9647 |
|  | $9400893 | $12674663 |
| **Non-current portion:** |  |  |
| PPP loan | – | 67015 |
|  | $**9400893** | $**12741678** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the year end date, the Group's Hong Kong subsidiary held an import loan facility of HK$12,000,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by a personal guarantee from a director
to the extent of HK$12,000,000 and a guarantee to the extent of HK$9,600,000 from the Hong Kong Mortgage Corporation Limited under the
SME Financing Guarantee Scheme. Interest is charged at 1.75% above Bank's Best Lending rate per annum for HK$ drawings and charged
at 4% above London Interbank Offered Rate per annum for U.S. dollar drawings.

At the year end, the outstanding bank loans under this facility totaled $1,501,547 (2020: $1,322,171).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the year end date, the Group's Hong Kong subsidiary held a clean import loan facility of HK$73,500,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by an unlimited personal guarantee
from the director, unlimited cross-corporate guarantees from the Group, the Group's UK and US subsidiaries and life insurance contracts
under HSBC Jade Global Generations Universal Life Insurance plan with total insured amount of $7,600,000. Interest is charge at 1.75%
above Bank's Best Lending rate per annum for HK$ drawings and charged at 4% above London Interbank Offered Rate per annum for U.S.
dollars drawings.

At the year end, the outstanding bank loans under this facility totaled $5,927,641 (2020: $6,110,516).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the year end date, the Group's Hong Kong subsidiary held a clean import loan facility of US$3,500,000
from a Hong Kong financial institution with maximum tenor of 120 days. The facility is secured by a pledged deposit not less than 14%
of the aggregate outstanding bank loans under this facility, an unlimited personal guarantee from the director and unlimited cross-corporate
guarantees from the Group, the Group's UK and US subsidiaries. Interest is charged at 2.5% above London Interbank Offered Rate per
annum.

At the year end, the outstanding bank loans under this facility totaled $479,808 (2020: $1,912,433).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the year end date, the Group's Hong Kong subsidiary held an import loan facility of HK$6,000,000
from a Hong Kong financial institution with maximum tenor of 120-150 days. The facility is secured by a personal guarantee from the director
to the extent of HK$6,000,000 and a guarantee from the Hong Kong Mortgage Corporation Limited under the SME Financing Guarantee Scheme.
Interest is charged at 1.75% above Bank's Best Lending rate per annum for HK$ drawings and charged at 4% above London Interbank
Offered Rate per annum for U.S. dollar drawings.

At the year end, the outstanding bank loans under this facility totaled $612,853 (2020: $747,898).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the year end date, the Group's UK subsidiary held an import line facility of US$1,800,000 from
a UK financial institution with maximum tenor of 120 days. The facility is secured by a debenture comprising fixed and floating charges
over all assets of the Group's UK subsidiary, bank deposit of GBP100,000, unlimited cross- corporate guarantee from the Group's
US subsidiary, a personal guarantee from the director to the extent of GBP1,200,000 and legal charges over one personal freehold property
belonging to the Group's beneficial shareholders. Interest is charged at 3.75% above the financial institution's Sterling
Base Rate (or relevant currency's base rate for non-GBP loans).

At the year end, no outstanding bank loans under this facility (2020: $1,312,901).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) At the year end date, the Group's Hong Kong subsidiary held a loan of US$810,716 from a Hong Kong
financial institution to finance the payment of insurance premium of the life insurance contract of a director of the Group. Interest
is charged at one- month London Interbank Offered Rate plus 1% per annum payable monthly in arrears and the loan will mature in September
2023. At the year end, the outstanding loan amounted to $472,931 (2020: $743,120).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) At the year end date, the Group's Hong Kong subsidiary held a term loan of HK$4,000,000 from a Hong
Kong financial institution. The loan is secured by a personal guarantee from director to the extent of $3,600,000 and a guarantee from
HKMC Insurance Limited under SME Financing Guarantee Scheme. Interest is charged at 2.75% per annum payable monthly in arrears and the
principal will be repaid monthly in arrears commencing 12 months after the first drawdown date and the loan will mature in May 2023.

At the year end, the outstanding loan amounted to $406,113 (2020: $515,976).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Current liabilities include bank loans of $879,044 (2020: $1,259,096) that are not scheduled to be repaid
within one year. They are classified as current liabilities as the related loan agreements contain a clause that provides the lenders
with an unconditional right to demand repayment at any time at its own discretion. The portion of these bank loans due for repayment after
one year which contain a repayment on demand clause and classified as a current liability is not expected to be settled within one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In May 2020, the Group's US subsidiary acquired a loan of $76,666 from a U.S. financial institution
bearing interest at 1% per annum payable monthly in arrears commencing in October 2021 and will mature in May 2022. The loan was issued
by the Small Business Administration (SBM) under the Paycheck Protection Program, under the Coronavirus Aid, Relief, and Economic Security
(CARSS) Act, which is secured by a guarantee from the U.S. federal government.

As at December 31, 2020, the outstanding bank loan amounted to $76,662. The loan was eligible for forgiveness and recognized as government grant during the year.

**Note 6 – Income Tax Expenses**

Provision/ (benefit) for Income taxes consists of the following during the year ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Current:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $220454 | $172097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | 48538 | 101856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current | 268992 | 273953 |
| **Deferred:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | (8870) | 55299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | (115067) | (23923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Deferred | (123937) | 31376 |
| **Total Income Tax Expenses** | $**145055** | $**305329** |

---

**Deferred Income Taxes**

Components of the Group's deferred tax asset include the following:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| **Deferred tax assets on:** |  |  |
| Accelerated tax depreciation in fixed asset | $70238 | $11372 |
| Defined benefit obligations | 47707 | 48701 |
| Unrealized exchange difference on foreign currency translations | 112 | 5054 |
| Inventory valuation and other assets | 39860 | 30985 |
| Tax loss | 42563 | – |
| **Total deferred tax assets** | $**200480** | $**96112** |

---

**Note 7 – Stock Based Compensation**

<u>Employee Share Acquisition Plan</u>

In March 2021, the Group implemented a new Employee Share Acquisition Plan (the "ESAP") to incentive the Group's employees with the grant of a bonus. The ESAP Rules has been approved from the Board during the year. The maximum number of shares that could be transferred or issued, and the maximum funding for additional shares be approved by the Board from time to time. The fair market value defined in the ESAP Rules for the ESAP awards until the approval of a new fair market value by the Board. Eligible employees may use to apply for acquiring the granted shares in Nixplay Cayman, Nixplay Cayman will fund an extra 1 share for each share. The award shares are awarded from new shares issuance, which is an equity-settled share-based compensation.

During the year, Nixplay Cayman has issued 60,295 shares under ESAP for the share awards granted.

<u>Share options Scheme</u>

The Group operates a Share Option Scheme (the "Scheme") to incentivize its employees, the vesting condition being that the individual remains an employee of the Group over a 3 to 5-year period from the date of grant. The maximum term of the options granted is 15 years from the date of offer. The exercise price of the options granted is set as nominal value of the Nixplay Cayman's shares on the date of the offer. The Scheme is deemed to be an equity-settled share-based remuneration scheme for employees. Certain employees of the Group are eligible to participate in the Scheme.

The following share options were outstanding under the Scheme during the year:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Weighted**<br> **average**<br> **grant date**<br> **fair value**<br>**2021** | **Number of<br> options**<br>**2021** | **Weighted**<br> **average**<br> **grant date**<br> **fair value**<br>**2020** | **Number of<br> options**<br>**2020** |
| Outstanding at beginning of the year | $2.4446 | 1066923 | $2.4474 | 1074636 |
| Granted during the year | 2.1632 | 206191 |  |  |
| Forfeited during the year | – | – | 2.8344 | (7713) |
| Outstanding at the end of the year | $2.3991 | 1273114 | $2.4446 | 1066923 |

---

The fair value of equity-settled share options granted to certain employees of the Group for the year ended December 31, 2021 was estimated as at the date of grant, using the Hull-White Binomial model, taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used:

---

| | |
|:---|:---|
|  | **December 31, 2021** |
| Fair value at grant date | $2.1632 |
| Exercise price | $0.01 |
| Weighted average contractual life | 15 years |
| Expected volatility | 52.4% |
| Expected dividend rate | 0% |
| Risk-free-interest rate | 1.982% |

---

The volatility assumption is based on a statistical analysis of 3 comparable companies working in a similar industry over the last 15 years.

For the year ended December 31, 2021 and 2020, the Group recognized a share-based payment expense of $211,277 and $113,464 for the stock options granted respectively.

**Note 8 – Related Party Transactions**

During the year ended December 31, 2021 and 2020, the Group entered into the following transactions with related parties:

---

| | | | |
|:---|:---|:---|:---|
| **Related party** | **Type of Transaction** | **Transaction amount** | **Transaction amount** |
|  |  | **2021** | **2020** |
| Non-executive directors | Directors' fee | $80088 | $32657 |
|  | Equity-settled share-based compensation expenses | 34631 | – |
| Directors | Directors' salaries | $569644 | $683708 |
|  | Equity-settled share-based compensation expenses | 8842 | 62481 |
|  | Loan interest expenses | 49924 | 48039 |
| Related parties | Loan interest expenses | $41690 | $28149 |
| Non-controlling interests | Loan interest expenses | $274665 | $293706 |

---

**Note 9 – Subsequent Events**

Management has evaluated subsequent events through September 28, 2022, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in the financial statements apart from the group restructure disclosed in Note 1.

**PART III**

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| 1.1 | [Posting Agreement with StartEngine Primary](nixplay_ex0101.htm) |
| 2.1\* | [Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1946957/000168316822006692/nixplay_ex0201.htm) |
| 2.2 | [Form of Amended and Restated Certificate of Incorporation](nixplay_ex0202.htm) |
| 2.3\* | [Bylaws](https://www.sec.gov/Archives/edgar/data/1946957/000168316822006692/nixplay_ex0203.htm) |
| 3.1 | [Form of Common Stock Investors' Rights Agreement](nixplay_ex0301.htm) |
| 4.1 | [Form of Subscription Agreement](nixplay_ex0401.htm) |
| 6.1\* | [Services Agreement between Creedon Technologies USA, LLC dated September 1, 2022](https://www.sec.gov/Archives/edgar/data/1946957/000168316822006692/nixplay_ex0601.htm) |
| 6.2\* | [Bank Loan between Creedon Technologies HK Limited and HSBC HK #1](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0602.htm) |
| 6.3\* | [Bank Loan between Creedon Technologies HK Limited and HSBC HK #2](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0603.htm) |
| 6.4\* | [Bank Loan between Creedon Technologies HK Limited and Standard Chartered Bank #1](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0604.htm) |
| 6.5\* | [Bank Loan between Creedon Technologies HK Limited and HSBC HK #3](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0605.htm) |
| 6.6\* | [Universal Life Insurance Loan between Creedon Technologies HK Limited and HSBC HK #2](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0606.htm) |
| 6.7\* | [Loan Agreement between Creedon Technologies HK Limited and Mark Palfreeman #1](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0607.htm) |
| 6.8\* | [Loan Agreement between Creedon Technologies HK Limited and Mark Palfreeman #2](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0608.htm) |
| 6.9 | [Loan Agreement between Creedon Technologies HK Limited and Mark Palfreeman #3](nixplay_ex0609.htm) |
| 6.10\* | [Loan Agreement between Creedon Technologies HK Limited and Clare Palfreeman #1](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0610.htm) |
| 6.11\* | [Loan Agreement between Creedon Technologies HK Limited and Clare Palfreeman #2](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0611.htm) |
| 6.12\* | [Loan Agreement between Creedon Technologies HK Limited and Julie Palfreeman](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0612.htm) |
| 6.13\* | [Form of Loan Agreement between the Company and various officers, directors, and shareholders of subsidiaries of the Company](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex0613.htm) |
| 7.1\* | [Share Sale and Purchase Agreement dated September 11, 2022 between Solon and the Company](https://www.sec.gov/Archives/edgar/data/1946957/000168316822006692/nixplay_ex0701.htm)† |
| 8.1 | [Escrow Agreement between the Company, StartEngine Primary LLC and The Bryn Mawr Trust Company of Delaware.](nixplay_ex0801.htm) |
| 11 | [Auditor's Consent](nixplay_ex11.htm) |
| 12 | [Opinion of CrowdCheck Law LLP](nixplay_ex12.htm) |
| 13.1\* | [Testing the Waters Materials](https://www.sec.gov/Archives/edgar/data/1946957/000168316822007846/nixplay_ex1301.htm) |
| 13.2\* | [Testing the Waters Materials](https://www.sec.gov/Archives/edgar/data/1946957/000168316822008618/nixplay_ex1302.htm) |

---

______________________

\*Previously filed

\*\*To be filed by amendment

† Portions of the exhibit have been omitted

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Minnetonka, State of Minnesota, on February 10, 2023.

Nixplay, Inc.

By: *<u>/s/ Mark Palfreeman</u>*

Name: Mark Palfreeman

Title: Chief Executive Officer

This offering statement has been signed by the following persons in the capacities and on the dates indicated.

*/s/ Mark Palfreeman*

Mark Palfreeman, Chief Executive Officer, principal executive officer, and Director

Date:February 10, 2023

---

| |
|:---|
| */s/ Benoit Le Berre* |
| Benoit Le Berre, principal financial officer and principal accounting officer |
| Date: February 10, 2023 |

---

---

| |
|:---|
| */s/ Philippe Tartavull* |
| Philippe Tartavull, Director |
| Date: February 10, 2023 |

---

## Ex1A-1

**Exhibit 1.1**

**POSTING AGREEMENT**

[01 / 17 / 2023]

StartEngine Primary LLC

3900 W Alameda Ave., Suite 1200

Burbank, CA 91505

Dear Ladies and Gentlemen:

Nixplay Inc., a Delaware corporation located at 12301 Whitewater Drive Suite 115, Minnetonka, MN55343 (the "**Company**"), proposes, subject to the terms and conditions contained in this Posting Agreement (this "**Agreement**"), to issue and sell shares of its Common Stock (the "**Shares**") to investors (collectively, the "**Investors**") in a public offering (the "**Offering**") on the online website provided by StartEngine Crowdfunding, Inc. (the "**Platform**") pursuant to Regulation A through StartEngine Primary LLC ("**StartEngine**"), acting on a best efforts basis only, in connection with such sales. The Shares are more fully described in the Offering Statement (as hereinafter defined).

The Company hereby confirms its agreement with StartEngine concerning the purchase and sale of the Shares, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ENGAGEMENT.** Company hereby engages StartEngine to provide
the services set out herein upon the subject to the terms and conditions set out in this Agreement, <u>Terms of Use</u> ("Platform
Terms"), and <u>Privacy Policy</u>; each of which is hereby incorporated into this Agreement. Company has read and agreed to the
Terms of Use and Company understands that this Posting Agreement governs Company's use of the Site and the Services. Terms not
defined herein are as defined in Platform Terms.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SERVICES AND FEES.** 

● **OFFERING SERVICE:** Company agrees that StartEngine shall provide the services below for a fee of $15,000 for out of pocket accountable expenses paid prior to StartEngine commencing.

Any portion of this amount not expended and accounted for shall be returned to the Company at the end of the engagement.

● **OTHER FEES:** 

Company will pay, or reimburse if paid by StartEngine, out of pocket expenses for (i) the preparation and delivery of certificates representing the Shares (if any), (ii) FINRA filing fees, (iii) notice filing requirements under the securities or Blue Sky laws, (iv) all transfer taxes, if any, with respect to the sale and delivery of the Shares by the Company to the Investors.

● **OTHER SERVICES:** 

● Campaign Page Design: design, build, and create Company's campaign page.

● Support: provide Company with dedicated account manager and marketing consulting services.

● Standard Subscription Agreement: provision of a standard purchase agreement to execute between Company and Investors, which may be used at Company's option.

● Multiple Withdrawals (Disbursements): money transfers to Company

● Promote Service for digital advertising efforts

● **DISTRIBUTION:** As compensation for the services provided hereunder by StartEngine Primary, Company shall pay to StartEngine at each closing of the Offering a fee consisting of the following:

● 7.5% cash commission based on the dollar amount received from investors.

**✔** Check this box for selecting the split fee option (see below)

● *If the "split fee" option is selected then the following provision shall apply:* In each case StartEngine Capital may charge investors a fee of 4%, in which case the commission set forth above shall be reduced commensurately. In the event an investor invests in excess of $20,000, such investor fee shall be limited to $700 and Company shall pay the 3.5% additional commission with respect to any amount in excess of $20,000, in accordance with the commission schedule set forth above.

The fee shall be paid in cash upon disbursement of funds from escrow at the time of each closing. Payment will be made to StartEngine directly from the escrow account maintained for the Offering. The Company acknowledges that StartEngine is responsible for providing instructions to the escrow agent for distribution of funds held pending completion or termination of the Offering.

The fee does not include the EDGARization services costs or any services other than set out above.

● **PROMOTE SERVICE**: StartEngine Primary will design with the Company's approval the digital ads and manage the digital advertising platform accounts for Company for no additional fee.

● The Issuer is expressly forbidden from bidding on any StartEngine branded keywords, misspellings, and similar terms in advertising campaigns on the Google, Bing, and Facebook platforms. Some of these keywords include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ StartEngine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Start Engine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ StartEngine Crowdfunding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ StartEngine Stock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Invest in StartEngine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ StartEngine Shares

The Offering is subject to termination if the Company violates these targeting and bidding requirements.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **DEPOSIT HOLD.** Company agrees that 6% of the total funds
committed will be held back as a deposit hold in case of any ACH refunds or credit card chargebacks. The hold will remain in effect for
180 days following the close of the Offering. 75% of this hold back will be released back to the company after 60 days and the remaining
25% shall be held for the remaining 120 days.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **CREDIT CARD FEES.** Company agrees that fees payable to Vantiv,
LLC or Stripe Inc. with respect to the use of credit cards to purchase the Securities are for the account of the Company and to reimburse
StartEngine Crowdfunding Inc. for any such fees incurred, upon each closing held with respect to the Offering detailed in the Credit
Card Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **DELIVERY AND PAYMENT**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or after the date of this Agreement, the Company and selected escrow agent (the "**Escrow Agent**") will enter into an Escrow Agreement (the "**Escrow Agreement**"), pursuant to which escrow accounts will be established, at the Company's expense (the "**Escrow Accounts**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the initial Closing Date (as hereinafter defined) of the Offering or, as applicable, any subsequent Closing Date, (i) each Investor will execute and deliver a Subscription Agreement (each, an "**Investor Subscription Agreement**") to the Company through the facilities of the Platform; (ii) each Investor will transfer to the Escrow Account funds in an amount equal to the price per Share as shown on the cover page of the Final Offering Circular (as hereinafter defined) multiplied by the number of Shares subscribed by such Investor and as adjusted by any discounts or bonuses applicable to certain Investors; (iii) subscription funds received from any Investor will be promptly transmitted to the Escrow Accounts in compliance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), and (iv) the Escrow Agent will notify the Company and StartEngine in writing as to the balance of the collected funds in the Escrow Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Escrow Agent shall have received written notice from StartEngine on or before 9 a.m. Pacific time on such of date(s) as may be agreed upon by the Company and StartEngine (each such date, a "**Closing Date**"), the Escrow Agent will release the balance of the Escrow Accounts for collection by the Company and StartEngine as provided in the Escrow Agreement and the Company shall deliver the Shares purchased on such Closing Date to the Investors, which delivery may be made via book entry with the Company's securities registrar and transfer agent, [StartEngine Secure] [Name of transfer agent] (the "**Transfer Agent**"). The initial closing (the "**Closing**") and any subsequent closing (each, a "**Subsequent Closing**") shall be effected through the Platform. All actions taken at the Closing shall be deemed to have occurred simultaneously on the date of the Closing and all actions taken at any Subsequent Closing shall be deemed to have occurred simultaneously on the date of any such Subsequent Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company and StartEngine determine that the offering will not proceed, then the Escrow Agent will promptly return the funds to the investors without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY**. The Company represents and warrants and covenants to StartEngine that :<sup>[1]</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will file with the Securities and Exchange Commission (the "**Commission**") an offering statement on Form 1-A (collectively, with the various parts of such offering statement, each as amended as of the Qualification Date for such part, including any Offering Circular and all exhibits to such offering statement, the "**Offering Statement**") relating to the Shares pursuant to Regulation A as promulgated under the Securities Act of 1933, as amended (the "**Act**"), and the other applicable rules, orders and regulations (collectively referred to as the "**Rules and Regulations**") of the Commission promulgated under the Act. As used in this Agreement:

&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;(1) "**Final Offering Circular**" means the offering circular relating to the public offering of the Shares as filed with the Commission pursuant to Rule 253(g)(2) of Regulation A of the Rules and Regulations, as amended and supplemented by any further filings under Rule 253(g)(2);

&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;(2) "**Preliminary Offering Circular**" means the offering circular relating to the Shares included in the Offering Statement pursuant to Regulation A of the Rules and Regulations in the form on file with the Commission on the Qualification Date;

&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;(3) "**Qualification Date**" means the date as of which the Offering Statement was or will be qualified with the Commission pursuant to Regulation A, the Act and the Rules and Regulations; and

___________________

1 To be updated upon due diligence review; additional provisions may be added.

&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;(4) "**Testing-the-Waters Communication**" means any website post, broadcast or cable radio or internet communication, email, social media post, video or written communication with potential investors undertaken in reliance on Rule 255 of the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Offering Statement will be filed with the Commission in accordance with the Act and Regulation A of the Rules and Regulations; no stop order of the Commission preventing or suspending the qualification or use of the Offering Statement, or any amendment thereto, has been issued, and no proceedings for such purpose have been instituted or, to the Company's knowledge, are contemplated by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Offering Statement, at the time it becomes qualified, and as of each Closing Date, will conform in all material respects to the requirements of Regulation A, the Act and the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Offering Statement, at the time it became qualified, as of the date hereof, and as of each Closing Date, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Preliminary Offering Circular will not, as of its date, 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, in the light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that the Company makes no representation or warranty with respect to the statements contained in the Preliminary Offering Circular as provided by StartEngine in Section 10(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Final Offering Circular will not, as of its date and on each Closing Date, 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, in the light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that the Company makes no representation or warranty with respect to the statements contained in the Final Offering Circular as provided by StartEngine in Section 10(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Testing-the-Waters Communication, if any, when considered together with the Final Offering Circular or Preliminary Offering Circular, as applicable, 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, in light of the circumstances under which they were made, not misleading, <u>provided</u>, <u>however</u>, that the Company makes no representation or warranty with respect to the statements contained in the Preliminary Offering Circular as provided by StartEngine in Section 10(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) As of each Closing Date, the Company will be duly organized and validly existing as a [Nixplay Inc.] [ENTITY] in good standing under the laws of the State of [Delaware] [STATE]. The Company has full power and authority to conduct all the activities conducted by it, to own and lease all the assets owned and leased by it and to conduct its business as presently conducted and as described in the Offering Statement and the Final Offering Circular. The Company is duly licensed or qualified to do business and in good standing as a foreign organization in all jurisdictions in which the nature of the activities conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary, 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, reasonably be expected to have a material adverse effect on or affecting the business, prospects, properties, management, financial position, stockholders' equity, or results of operations of the Company (a "**Material Adverse Effect**"). Complete and correct copies of the [certificate of incorporation and of the bylaws] of the Company and all amendments thereto have been made available to StartEngine, and no changes therein will be made subsequent to the date hereof and prior to any Closing Date except as disclosed in the Offering Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has no subsidiaries, nor does it own a controlling interest in any entity other than those entities set forth on <u>Schedule 2</u> to this Agreement (each a "**Subsidiary**" and collectively the "**Subsidiaries**"). Each Subsidiary has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of formation. Each Subsidiary is duly qualified and in good standing as a foreign company in each jurisdiction in which the character or location of its properties (owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except for those failures to be so qualified or in good standing which would not be reasonably expected to have a Material Adverse Effect. All of the shares of issued capital stock of each corporate subsidiary, and all of the share capital, membership interests and/or equity interests of each subsidiary that is not a corporation, have been duly authorized and validly issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of any lien, encumbrance, claim, security interest, restriction on transfer, shareholders' agreement, proxy, voting trust or other defect of title whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company is organized in, and its principal place of business is in, the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company is not subject to the ongoing reporting requirements of Section 13 or 15(d) of the Exchange Act and has not been subject to an order by the Commission denying, suspending, or revoking the registration of any class of securities pursuant to Section 12(j) of the Exchange Act that was entered within five years preceding the date the Offering Statement was originally filed with the Commission. The Company is not, nor upon completion of the transactions contemplated herein will it be, an "investment company" or an "affiliated person" of, or "promoter" or "principal underwriter" for, an "investment company," as such terms are defined in the Investment Company Act of 1940, as amended (the "**Investment Company Act**"). The Company is not a development stage company or a "business development company" as defined in Section 2(a)(48) of the Investment Company Act. The Company is not a blank check company and is not an issuer of fractional undivided interests in oil or gas rights or similar interests in other mineral rights. The Company is not an issuer of asset-backed securities as defined in Item 1101(c) of Regulation AB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Neither the Company, nor any predecessor of the Company; nor any other issuer affiliated with the Company; nor any director or executive officer of the Company or other officer of the Company participating in the offering, nor any beneficial owner of 20% or more of the Company's outstanding voting equity securities, nor any promoter connected with the Company, is subject to the disqualification provisions of Rule 262 of the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company is not a "foreign private issuer," as such term is defined in Rule 405 under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company has full legal right, power and authority to enter into this Agreement, the Escrow Agreement and perform the transactions contemplated hereby and thereby. This Agreement and the Escrow Agreement each have been or will be authorized and validly executed and delivered by the Company and are or will be each a legal, valid and binding agreement of the Company enforceable against the Company in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and equitable principles of general applicability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The issuance and sale of the Shares have been duly authorized by the Company, and, when issued and paid for in accordance with the Investor Subscription Agreement, will be duly and validly issued, fully paid and nonassessable and will not be subject to preemptive or similar rights. The holders of the Shares will not be subject to personal liability by reason of being such holders. The Shares, when issued, will conform to the description thereof set forth in the Final Offering Circular in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Company has not authorized anyone other than the management of the Company and StartEngine to engage in Testing-the-Waters Communications. The Company reconfirms that StartEngine have been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not distributed any Testing-the-Waters Communications other than those listed on <u>Schedule 1</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The financial statements and the related notes included in the Offering Statement and the Final Offering Circular present fairly, in all material respects, the financial condition of the Company and its Subsidiaries as of the dates thereof and the results of operations and cash flows at the dates and for the periods covered thereby in conformity with United States generally accepted accounting principles ("**GAAP**"), except as may be stated in the related notes thereto. No other financial statements or schedules of the Company, any Subsidiary or any other entity are required by the Act or the Rules and Regulations to be included in the Offering Statement or the Final Offering Circular. There are no off-balance sheet arrangements (as defined in Regulation S-K Item 303(a)(4)(ii)) that may have a material current or future effect on the Company's financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) [BF Borgers] (the "**Accountants**"), will report on the financial statements and schedules described in Section 6(r), are registered independent public accountants with respect to the Company as required by the Act and the Rules and Regulations. The financial statements of the Company and the related notes and schedules included in the Offering Statement and the Final Offering Circular comply as to form in all material respects with the requirements of the Act and the Rules and Regulations and present fairly the information shown therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Since the date of the most recent financial statements of the Company included or incorporated by reference in the Offering Statement and the most recent Preliminary Offering Circular and prior to the Closing and any Subsequent Closing, other than as described in the Final Offering Circular (A) there has not been and will not have been any change in the capital stock of the Company or long-term debt of the Company or any Subsidiary or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock or equity interests, or any Material Adverse Effect, or any development that would reasonably be expected to result in a Material Adverse Effect; and (B) neither the Company nor any Subsidiary has sustained or will sustain any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in the Offering Statement and the Final Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Since the date as of which information is given in the most recent Preliminary Offering Circular, neither the Company nor any Subsidiary has entered or will before the Closing or any Subsequent Closing enter into any transaction or agreement, not in the ordinary course of business, that is material to the Company and its Subsidiaries taken as a whole or incurred or will incur any liability or obligation, direct or contingent, not in the ordinary course of business, that is material to the Company and its Subsidiaries taken as a whole, and neither the Company nor any Subsidiary has any plans to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company and each Subsidiary has good and valid title in fee simple to all items of real property and good and valid title to all personal property described in the Offering Statement or the Final Offering Circular as being owned by them, in each case free and clear of all liens, encumbrances and claims except those that (1) do not materially interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries or (2) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Any real property described in the Offering Statement or the Final Offering Circular as being leased by the Company or any Subsidiary that is material to the business of the Company and its Subsidiaries taken as a whole 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 and its Subsidiaries or (B) would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) There are no legal, governmental or regulatory actions, suits or proceedings pending, either domestic or foreign, to which the Company is a party or to which any property of the Company is the subject, nor are there, to the Company's knowledge, any threatened legal, governmental or regulatory investigations, either domestic or foreign, involving the Company or any property of the Company that, individually or in the aggregate, if determined adversely to the Company, would reasonably be expected to have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under this Agreement; to the Company's knowledge, no such actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or threatened by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company and each Subsidiary has, and at each Closing Date will have, (1) all governmental licenses, permits, consents, orders, approvals and other authorizations necessary to carry on its business as presently conducted except where the failure to have such governmental licenses, permits, consents, orders, approvals and other authorizations would not be reasonably expected to have a Material Adverse Effect, and (2) performed all its obligations required to be performed, and is not, and at each Closing Date will not be, in default, under any indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture, note agreement, lease, contract or other agreement or instrument (collectively, a "**contract or other agreement**") to which it is a party or by which its property is bound or affected and, to the Company's knowledge, no other party under any material contract or other agreement to which it is a party is in default in any respect thereunder. The Company and its Subsidiaries are not in violation of any provision of their organizational or governing documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company has obtained all authorization, approval, consent, license, order, registration, exemption, qualification or decree of any court or governmental authority or agency or any sub-division thereof that is required for the performance by the Company of its obligations hereunder, in connection with the offering, issuance or sale of the Shares under this Agreement or the consummation of the transactions contemplated by this Agreement as may be required under federal, state, local and foreign laws, the Act or the rules and regulations of the Commission thereunder, state securities or Blue Sky laws, and the rules and regulations of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) There is no actual or, to the knowledge of the Company, threatened, enforcement action or investigation by any governmental authority that has jurisdiction over the Company, and the Company has received no notice of any pending or threatened claim or investigation against the Company that would provide a legal basis for any enforcement action, and the Company has no reason to believe that any governmental authority is considering such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Neither the execution of this Agreement, nor the issuance, offering or sale of the Shares, nor the consummation of any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions hereof or 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 or any Subsidiary pursuant to the terms of any contract or other agreement to which the Company or any Subsidiary may be bound or to which any of the property or assets of the Company or any Subsidiary is subject, except such conflicts, breaches or defaults as may have been waived or would not, in the aggregate, be reasonably expected to have a Material Adverse Effect; nor will such action result in any violation, except such violations that would not be reasonably expected to have a Material Adverse Effect, of (1) the provisions of the organizational or governing documents of the Company or any Subsidiary, or (2) any statute or any order, rule or regulation applicable to the Company or any Subsidiary or of any court or of any federal, state or other regulatory authority or other government body having jurisdiction over the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) There is no document or contract of a character required to be described in the Offering Statement or the Final Offering Circular or to be filed as an exhibit to the Offering Statement which is not described or filed as required. All such contracts to which the Company or any Subsidiary is a party have been authorized, executed and delivered by the Company or any Subsidiary, and constitute valid and binding agreements of the Company or any Subsidiary, and are enforceable against the Company in accordance with the terms thereof, subject to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and equitable principles of general applicability. None of these contracts have been suspended or terminated for convenience or default by the Company or any of the other parties thereto, and the Company has not received notice of any such pending or threatened suspension or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) The Company and its directors, officers or controlling persons have not taken, directly or indirectly, any action intended, or which might reasonably be expected, to cause or result, under the Act or otherwise, in, or which has constituted, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Company's Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Other than as previously disclosed to StartEngine in writing, the Company, or any person acting on behalf of the Company, has not and, except in consultation with StartEngine, will not publish, advertise or otherwise make any announcements concerning the distribution of the Shares, and has not and will not conduct road shows, seminars or similar activities relating to the distribution of the Shares nor has it taken or will it take any other action for the purpose of, or that could reasonably be expected to have the effect of, preparing the market, or creating demand, for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) No holder of securities of the Company has rights to the registration of any securities of the Company as a result of the filing of the Offering Statement or the transactions contemplated by this Agreement, except for such rights as have been waived or as are described in the Offering Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) No labor dispute with the employees of the Company or any Subsidiary exists or, to the knowledge of the Company, is threatened, and the Company is not aware of any existing or threatened labor disturbance by the employees of any of its or any Subsidiary's principal suppliers, manufacturers, customers or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) The Company and each of its Subsidiaries: (i) are and have been in material compliance with all laws, to the extent applicable, and the regulations promulgated pursuant to such laws, and comparable state laws, and all other local, state, federal, national, supranational and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of the Company and its subsidiaries except for such non-compliance as would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect; (ii) have not received notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Regulatory Agency or third party alleging that any product operation or activity is in material violation of any laws and has no knowledge that any such Regulatory Agency or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; and (iii) are not a party to any corporate integrity agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has any reporting obligations pursuant to any such agreement, plan or correction or other remedial measure entered into with any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) The business and operations of the Company, and each of its Subsidiaries, have been and are being conducted in compliance with all applicable laws, ordinances, rules, regulations, licenses, permits, approvals, plans, authorizations or requirements relating to occupational safety and health, or pollution, or protection of health or the environment (including, without limitation, those relating to emissions, discharges, releases or threatened releases of pollutants, contaminants or hazardous or toxic substances, materials or wastes into ambient air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, gaseous or liquid in nature) of any governmental department, commission, board, bureau, agency or instrumentality of the United States, any state or political subdivision thereof, or any foreign jurisdiction ("**Environmental Laws**"), and all applicable judicial or administrative agency or regulatory decrees, awards, judgments and orders relating thereto, except where the failure to be in such compliance would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect; and neither the Company nor any of its Subsidiaries has received any notice from any governmental instrumentality or any third party alleging any material violation thereof or liability thereunder (including, without limitation, liability for costs of investigating or remediating sites containing hazardous substances and/or damages to natural resources).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) There has been no storage, generation, transportation, use, handling, treatment, Release or threat of Release of Hazardous Materials (as defined below) by or caused by the Company or any of its Subsidiaries (or, to the knowledge of the Company, any other entity (including any predecessor) for whose acts or omissions the Company or any of its Subsidiaries is or could reasonably be expected to be liable) at, on, under or from any property or facility now or previously owned, operated or leased by the Company or any of its Subsidiaries, or at, on, under or from any other property or facility, in violation of any Environmental Laws or in a manner or amount or to a location that could reasonably be expected to result in any liability under any Environmental Law, except for any violation or liability which would not, individually or in the aggregate, have a Material Adverse Effect. "**Hazardous Materials**" means any material, chemical, substance, waste, pollutant, contaminant, compound, mixture, or constituent thereof, in any form or amount, including petroleum (including crude oil or any fraction thereof) and petroleum products, natural gas liquids, asbestos and asbestos containing materials, naturally occurring radioactive materials, brine, and drilling mud, regulated or which can give rise to liability under any Environmental Law. "**Release**" means any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, or migrating in, into or through the environment, or in, into from or through any building or structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and its Subsidiaries own, possess, license or have other adequate rights to use, on reasonable terms, all material patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, know-how and other intellectual property necessary for the conduct of the Company's and each of its Subsidiary's business as now conducted (collectively, the "**Intellectual Property**"), except to the extent such failure to own, possess or have other rights to use such Intellectual Property would not result in a Material Adverse Effect. Except as set forth in the Final Offering Circular: (a) no party has been granted an exclusive license to use any portion of such Intellectual Property owned by the Company or its Subsidiaries; (b) to the knowledge of the Company, there is no infringement by third parties of any such Intellectual Property owned by or exclusively licensed to the Company or its Subsidiaries; (c) the Company is not aware of any defects in the preparation and filing of any of patent applications within the Intellectual Property; (d) to the knowledge of the Company, the patents within the Intellectual Property are being maintained and the required maintenance fees (if any) are being paid; (e) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the Company's or any of its Subsidiaries' rights in or to any Intellectual Property, and the Company and its Subsidiaries are unaware of any facts which would form a reasonable basis for any such claim; (f) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the validity or scope or enforceability of any such Intellectual Property, and the Company and its Subsidiaries are unaware of any facts which would form a reasonable basis for any such claim; and (g) there is no pending, or to the knowledge of the Company, threatened action, suit, proceeding or claim by others that the Company's or any of its Subsidiaries' business as now conducted infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company and its Subsidiaries are unaware of any other fact which would form a reasonable basis for any such claim. To the knowledge of the Company, no opposition filings or invalidation filings have been submitted which have not been finally resolved in connection with any of the Company's patents and patent applications in any jurisdiction where the Company has applied for, or received, a patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) Except as would not have, individually or in the aggregate, a Material Adverse Effect, the Company and each Subsidiary (1) has timely filed all federal, state, provincial, local and foreign tax returns that are required to be filed by such entity through the date hereof, which returns are true and correct, or has received timely extensions for the filing thereof, and (2) has paid all taxes, assessments, penalties, interest, fees and other charges due or claimed to be due from the Company, other than (A) any such amounts being contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP or (B) any such amounts currently payable without penalty or interest. There are no tax audits or investigations pending, which if adversely determined could have a Material Adverse Effect; nor to the knowledge of the Company is there any proposed additional tax assessments against the Company or any Subsidiary which could have, individually or in the aggregate, a Material Adverse Effect. No transaction, stamp, capital or other issuance, registration, transaction, transfer or withholding tax or duty is payable by or on behalf of StartEngine to any foreign government outside the United States or any political subdivision thereof or any authority or agency thereof or therein having the power to tax in connection with (i) the issuance, sale and delivery of the Shares by the Company; (ii) the purchase from the Company, and the initial sale and delivery of the Shares to purchasers thereof; or (iii) the execution and delivery of this Agreement or any other document to be furnished hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) On each Closing 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 Shares to be issued and sold on such Closing Date 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) The Company and its Subsidiaries are insured with insurers with appropriately rated claims paying abilities against such losses and risks and in such amounts as are prudent and customary for the businesses in which they are engaged; all policies of insurance and fidelity or surety bonds insuring the Company, each Subsidiary or their respective businesses, assets, employees, officers and directors are in full force and effect; and there are no claims by the Company or its Subsidiary under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; neither the Company nor any Subsidiary has been refused any insurance coverage sought or applied for; and neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that is not materially greater than the current cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) Neither the Company nor its Subsidiaries, nor any director, officer, agent or employee of either the Company or any Subsidiary has directly or indirectly, (1) made any unlawful contribution to any federal, state, local and foreign candidate for public office, or failed to disclose fully any contribution in violation of law, (2) made any payment to any federal, state, local and foreign governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required or permitted by the laws of the United States or any jurisdiction thereof, (3) violated or is in violation of any provisions of the U.S. Foreign Corrupt Practices Act of 1977, or (4) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the "**Money Laundering Laws**") and no material action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent or employee of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions (the "**Sanctions Regulations**") administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**"); and the Company 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 or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC or listed on the OFAC Specially Designated Nationals and Blocked Persons List. Neither the Company nor, to the knowledge of the Company, any director, officer, agent or employee of the Company, is named on any denied party or entity list administered by the Bureau of Industry and Security of the U.S. Department of Commerce pursuant to the Export Administration Regulations ("**EAR**"); and the Company will not, directly or indirectly, use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any Sanctions Regulations or to support activities in or with countries sanctioned by said authorities, or for engaging in transactions that violate the EAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) The Company has not distributed and, prior to the later to occur of the last Closing Date and completion of the distribution of the Shares, will not distribute any offering material in connection with the offering and sale of the Shares other than each Preliminary Offering Circular and the Final Offering Circular, or such other materials as to which StartEngine shall have consented in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), and all stock purchase, stock option, stock-based severance, employment, change-in-control, medical, disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and all other employee benefit plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former employees, directors or independent contractors of the Company or its Subsidiaries, or under which the Company or any of its Subsidiaries has had or has any present or future obligation or liability, has been maintained in material compliance with its terms and the requirements of any applicable federal, state, local and foreign laws, statutes, orders, rules and regulations, including but not limited to ERISA and the Code; 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; no event has occurred (including a "reportable event" as such term is defined in Section 4043 of ERISA) and no condition exists that would subject the Company to any material tax, fine, lien, penalty, or liability imposed by ERISA, the Code or other applicable law; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) No relationship, direct or indirect, exists between or among the Company or any Subsidiary, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any Subsidiary, on the other, which would be required to be disclosed in the Offering Statement, the Preliminary Offering Circular and the Final Offering Circular and is not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) The Company has not sold or issued any securities that would be integrated with the offering of the Shares contemplated by this Agreement pursuant to the Act, the Rules and Regulations or the interpretations thereof by the Commission or that would fail to come within the safe harbor for integration under Regulation A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) Except as set forth in this Agreement, there are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against the Company or StartEngine for a brokerage commission, finder's fee or other like payment in connection with the offering of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) To the knowledge of the Company, there are no affiliations with FINRA among the Company's directors, officers or any five percent or greater stockholder of the Company or any beneficial owner of the Company's unregistered equity securities that were acquired during the 180-day period immediately preceding the initial filing date of the Offering Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members. The Company has not directly or indirectly, including through its Subsidiaries, extended or maintained credit, arranged for the extension of credit, or renewed any extension of credit, in the form of a personal loan to or for any director or executive officer of the Company or any of their respective related interests, other than any extensions of credit that ceased to be outstanding prior to the initial filing of the Offering Statement. No transaction has occurred between or among the Company and any of its officers or directors, stockholders, customers, suppliers or any affiliate or affiliates of the foregoing that is required to be described or filed as an exhibit to in the Offering Statement, the Preliminary Offering Circular or the Final Offering Circular and is not so described.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. AGREEMENTS OF THE COMPANY**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The [Offering Statement has become qualified, and] the Company will file the Final Offering Circular, subject to the prior approval of StartEngine, pursuant to Rule 253 and Regulation A, within the prescribed time period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon effectiveness of this agreement, the Company will not, during such period as the Final Offering Circular would be required by law to be delivered in connection with sales of the Shares in connection with the offering contemplated by this Agreement (whether physically or through compliance with Rules 251 and 254 under the Act or any similar rule(s)), file any amendment or supplement to the Offering Statement or the Final Offering Circular unless a copy thereof shall first have been submitted to StartEngine within a reasonable period of time prior to the filing thereof and StartEngine shall not have reasonably objected thereto in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company will notify StartEngine promptly, and will, if requested, confirm such notification in writing: (1) when any amendment or supplement to the Offering Statement is filed; (2) of any request by the Commission for any amendments to the Offering Statement or any amendment or supplements to the Final Offering Circular or for additional information; (3) of the issuance by the Commission of any stop order preventing or suspending the qualification of the Offering Statement or the Final Offering Circular, or the initiation of any proceedings for that purpose or the threat thereof; and (4) of becoming aware of the occurrence of any event that in the judgment of the Company makes any statement made in the Offering Statement, the Preliminary Offering Circular or the Final Offering Circular untrue in any material respect or that requires the making of any changes in the Offering Statement, the Preliminary Offering Circular or the Final Offering Circular in order to make the statements therein, in light of the circumstances in which they are made, not misleading. If the Company has omitted any information from the Offering Statement, it will use its best efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to Regulation A, the Act and the Rules and Regulations and to notify StartEngine promptly of all such filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, at any time when the Final Offering Circular relating to the Shares is required to be delivered under the Act, the Company becomes aware of the occurrence of any event as a result of which the Final Offering Circular, as then amended or supplemented, would, in the reasonable judgment of counsel to the Company or counsel to StartEngine, include any 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, or if for any other reason it is necessary, in the reasonable judgment of counsel to the Company or counsel to StartEngine, at any time to amend or supplement the Final Offering Circular or the Offering Statement to comply with the Act or the Rules and Regulations, the Company will promptly notify StartEngine and will promptly prepare and file with the Commission, at the Company's expense, an amendment to the Offering Statement and/or an amendment or supplement to the Final Offering Circular that corrects such statement and/or omission or effects such compliance. The Company consents to the use of the Final Offering Circular or any amendment or supplement thereto by StartEngine, and StartEngine agrees to provide to each Investor, prior to the Closing and, as applicable, any Subsequent Closing, a copy of the Final Offering Circular and any amendments or supplements thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If at any time following the distribution of any Testing-the-Waters Communication there occurred or occurs an event or development as a result of which such Testing-the-Waters Communication included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company has or will promptly notify StartEngine in writing and has or will promptly amend or supplement and recirculate, at its own expense, such Testing-the-Waters Communication to eliminate or correct such untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company will apply the net proceeds from the offering and sale of the Shares in the manner set forth in the Final Offering Circular under the caption "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. [LEFT BLANK]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. CONDITIONS OF THE OBLIGATIONS OF STARTENGINE**. The obligations of StartEngine hereunder are subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No stop order suspending the qualification of the Offering Statement shall have been issued, and no proceedings for that purpose shall be pending or threatened by any securities or other governmental authority (including, without limitation, the Commission), (b) no order suspending the effectiveness of the Offering Statement shall be in effect and no proceeding for such purpose shall be pending before, or threatened or contemplated by, any securities or other governmental authority (including, without limitation, the Commission), (c) any request for additional information on the part of the staff of any securities or other governmental authority (including, without limitation, the Commission) shall have been complied with to the satisfaction of the staff of the Commission or such authorities and (d) after the date hereof no amendment or supplement to the Offering Statement or the Final Offering Circular shall have been filed unless a copy thereof was first submitted to StartEngine and StartEngine did not object thereto in good faith, and StartEngine shall have received certificates of the Company, dated as of the Closing Date (and at the option of StartEngine, any Subsequent Closing Date) and signed by the Chief Executive Officer of the Company, and the Chief Financial Officer of the Company, to the effect of clauses (a), (b) and (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the respective dates as of which information is given in the Offering Statement and the Final Offering Circular, (a) there shall not have been a Material Adverse Effect, whether or not arising from transactions in the ordinary course of business, in each case other than as set forth in or contemplated by the Offering Statement and the Final Offering Circular and (b) the Company shall not have sustained any material loss or interference with its business or properties from fire, explosion, flood or other casualty, whether or not covered by insurance, or from any labor dispute or any court or legislative or other governmental action, order or decree, which is not set forth in the Offering Statement and the Final Offering Circular, if in the reasonable judgment of StartEngine any such development makes it impracticable or inadvisable to consummate the sale and delivery of the Shares to Investors as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Since the respective dates as of which information is given in the Offering Statement and the Final Offering Circular, there shall have been no litigation or other proceeding instituted against the Company or any of its officers or directors in their capacities as such, before or by any federal, state or local or foreign court, commission, regulatory body, administrative agency or other governmental body, domestic or foreign, which litigation or proceeding, in the reasonable judgment of StartEngine, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each of the representations and warranties of the Company contained herein shall be true and correct as of each Closing Date in all respects for those representations and warranties qualified by materiality and in all material respects for those representations and warranties that are not qualified by materiality, as if made on such date, and all covenants and agreements herein contained to be performed on the part of the Company and all conditions herein contained to be fulfilled or complied with by the Company at or prior to such Closing Date shall have been duly performed, fulfilled or complied with in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) At the Closing, and at any Subsequent Closing at the option of StartEngine, there shall be furnished to StartEngine a certificate, dated the date of its delivery, signed by each of the Chief Executive Officer and the Chief Financial Officer of the Company, in form and substance satisfactory to StartEngine to the effect that each signer has carefully examined the Offering Statement, the Final Offering Circular, and that to each of such person's knowledge:

&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) As of the date of each such certificate, (x) the Offering Statement does not contain any 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 not misleading and (y) the Final Offering Circular does not contain any 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 light of the circumstances under which they were made, not misleading and (2) no event has occurred as a result of which it is necessary to amend or supplement the Final Offering Circular in order to make the statements therein not untrue or misleading in any material respect.

&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) Each of the representations and warranties of the Company contained in this Agreement were, when originally made, and are, at the time such certificate is delivered, true and correct in all respects for those representations and warranties qualified by materiality and in all material respects for those representations and warranties that are not qualified by materiality.

&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;(c) Each of the covenants required herein to be performed by the Company on or prior to the date of such certificate has been duly, timely and fully performed and each condition herein required to be complied with by the Company on or prior to the delivery of such certificate has been duly, timely and fully complied with.

&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;(d) No stop order suspending the qualification of the Offering Statement or of any part thereof has been issued and no proceedings for that purpose have been instituted or are contemplated by the Commission.

&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;(e) Subsequent to the date of the most recent financial statements in the Offering Statement and in the Final Offering Circular, there has been no Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) FINRA shall not have raised any objection with respect to the fairness or reasonableness of the plan of distribution, or other arrangements of the transactions, contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. INDEMNIFICATION**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall indemnify and hold harmless StartEngine, each selling group participant, and each of their directors, officers, employees and agents and each person, if any, who controls StartEngine or such selling group participant within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each an "**Indemnified Party**"), from and against any and all losses, claims, liabilities, expenses and damages, joint or several (including any and all 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 (whether or not such Indemnified Party is a party thereto)), to which it, or any of them, may become subject under the Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based on (a) any untrue statement or alleged untrue statement made by the Company in Section 6 of this Agreement, or (b) any untrue statement or alleged untrue statement of any material fact or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, unless in the exercise of reasonable care the Company could not have known of such untruth or omission, contained in (1) any Preliminary Offering Circular or the Final Offering Circular or any amendment or supplement thereto, (3) any Testing-the-Waters Communication or (4) any application or other document, or any amendment or supplement thereto, executed by the Company based upon written information furnished by or on behalf of the Company filed with the Commission or any securities association or securities exchange (each, an "**Application**"); <u>provided</u>, <u>however</u>, that the Company will not be liable to the extent that such loss, claim, liability, expense or damage arises from the sale of the Shares in the offering to any person and is based solely on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with written information furnished to the Company by any Indemnified Party through StartEngine expressly for inclusion in t any Preliminary Offering Circular, the Final Offering Circular, or Testing-the-Waters Communication, or in any amendment or supplement thereto or in any Application, it being understood and agreed that the only such information furnished by any Indemnified Party consists of the information described as such in subsection (ii) below. This indemnity agreement will be in addition to any liability which the Company may otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) StartEngine will indemnify and hold harmless the Company and each of its directors, officers, employees and agents and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that arise out of or are based solely upon an untrue statement or alleged untrue statement of a material fact contained in any Preliminary Offering Circular or the Final Offering Circular, or any amendment or supplement thereto, or any Testing-the-Waters Communication, or arise out of or are based solely upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Preliminary Offering Circular or the Final Offering Circular, or any amendment or supplement thereto, or any Written Testing-the-Waters Communication, in reliance upon and in conformity with written information furnished to the Company by StartEngine expressly for use therein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Promptly after receipt by an Indemnified Party under subsection (i) or (ii) above of notice of the commencement of any action, such Indemnified Party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any Indemnified Party otherwise than under such subsection. In case any such action shall be brought against any Indemnified Party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such Indemnified Party (who shall not, except with the consent of the Indemnified Party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such Indemnified Party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such Indemnified Party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such Indemnified Party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without the written consent of the Indemnified Party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (a) includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (b) 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;(iv) If the indemnification provided for in this Section 10 is unavailable or insufficient to hold harmless an Indemnified Party under subsection (i) or (ii) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and StartEngine on the other from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (iii) above, then each indemnifying party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and StartEngine on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and StartEngine on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bears to the Fee received by StartEngine. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or StartEngine on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and StartEngine agree that it would not be just and equitable if contribution pursuant to this subsection (iv) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (iv). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (iv) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (iv), each StartEngine will not be required to contribute any amount in excess of the Fee received by such StartEngine. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. TERMINATIONS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) StartEngine may terminate this Agreement at any time by written notice to the Company. Company may terminate this Agreement at any time by written notice to StartEngine. The Services and Fees are non-refundable. Any unpaid fees due to StartEngine are due immediately upon termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The obligations of StartEngine under this Agreement may be terminated at any time prior to the initial Closing Date, by notice to the Company from such StartEngine, without liability on the part of StartEngine to the Company if, prior to delivery and payment for the Shares, in the sole judgment of StartEngine: (a) there has occurred any material adverse change in the securities markets or any event, act or occurrence that has materially disrupted, or in the opinion of StartEngine, will in the future materially disrupt, the securities markets or there shall be such a material adverse change in general financial, political or economic conditions or the effect of international conditions on the financial markets in the United States is such as to make it, in the judgment of StartEngine, inadvisable or impracticable to market the Shares or enforce contracts for the sale of the Shares; (b) there has occurred 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, including without limitation as a result of terrorist activities, such as to make it, in the judgment of StartEngine, inadvisable or impracticable to market the Shares or enforce contracts for the sale of the Shares; (c) trading on the New York Stock Exchange, Inc., NYSE American or NASDAQ Stock Market has been suspended or materially limited, or minimum or maximum ranges for prices for securities shall have been fixed, or maximum ranges for prices for securities have been required, by any of said exchanges or by such system or by order of the Commission, FINRA, or any other governmental or regulatory authority; (d) a banking moratorium has been declared by any state or Federal authority; or (e) in the judgment of StartEngine, there has been, since the time of execution of this Agreement or since the respective dates as of which information is given in the Final Offering Circular, any Material Adverse Effect of the Company and its Subsidiaries considered as a whole, whether or not arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If this Agreement is terminated pursuant to this Section 11, such termination shall be without liability of any party to any other party except as provided in Section 10(ii) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. NOTICES**. Notice given pursuant to any of the provisions of this Agreement shall be in writing and, unless otherwise specified, shall be mailed or delivered (i) if to the Company, at [ Nixplay, 1630 Welton St. Expansive #723, Denver CO 8020x] [address], Attention: [Joel Durbridge] [name], or (ii) if to StartEngine to 3900 W Alameda Ave., Suite 1200 Burbank, CA 91505, Attention: CEO, with copies to [counsel]. Any such notice shall be effective only upon receipt. Any notice under Section 12 may be made by facsimile or telephone, but if so made shall be subsequently confirmed in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. SURVIVAL**. The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company and StartEngine set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, any of its officers or directors, StartEngine or any controlling person referred to in Section 10 hereof and (ii) delivery of and payment for the Shares. The respective agreements, covenants, indemnities and other statements set forth in Sections 6, 7 and 10 hereof shall remain in full force and effect, regardless of any termination or cancellation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. SUCCESSORS**. This Agreement shall inure to the benefit of and shall be binding upon StartEngine, the Company and their respective successors, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person except that (i) the indemnification and contribution contained in Sections 10(i) and (iv) of this Agreement shall also be for the benefit of the directors, officers, employees and agents of StartEngine and any person or persons who control such StartEngine within the meaning of Section 15 of the Act or Section 20 of the Exchange Act and (ii) the indemnification and contribution contained in Sections 10(ii) and (iv) of this Agreement shall also be for the benefit of the directors of the Company, the officers of the Company who have signed the Offering Statement and any person or persons who control the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act. No purchaser of Shares shall be deemed a successor because of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. GOVERNING LAW**. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the California Courts, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party's address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the California Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. ACKNOWLEDGEMENT**. The Company acknowledges and agrees that StartEngine is acting solely in the capacity of an arm's length contractual counterparty to the Company with respect to the offering of Shares contemplated hereby. Additionally, StartEngine is not advising the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether StartEngine has advised or is advising the Company on other matters). The Company has conferred with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and StartEngine shall have no responsibility or liability to the Company or any other person with respect thereto. The StartEngine advises that it and its affiliates are engaged in a broad range of securities and financial services and that it or its affiliates may have business relationships or enter into contractual relationships with purchasers or potential purchasers of the Company's securities. Any review by StartEngine of the Company, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of StartEngine and shall not be on behalf of, or for the benefit of, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. COUNTERPARTS**. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. ENTIRE AGREEMENT**. This Agreement constitutes the entire understanding between the parties hereto as to the matters covered hereby and supersedes all prior understandings, written or oral, relating to such subject matter.

*[signature page follows]*

 

 

 

 

IN WINESS WHEREOF, the parties have executed this Agreement on the date set forth below.

---

| |
|:---|
| **[COMPANY]** |
| By: <u>/s/ Joel Durbridge</u> |
| Name: Joel Durbridge |
| Title: COO Nixplay Inc. |
| Accepted as of the date hereof: 01 / 17 / 2023 |
| **STARTENGINE PRIMARY, LLC** |
| By: <u>/s/ Josh Amster</u> |
| Name: Josh Amster |
| Title: SVP, Fundraising |

---

**SCHEDULE 1**

**Testing the Waters**

[TBD]

**SCHEDULE 2**

**SUBSIDIARIES**

[TBD]

## Ex1A-2A

**Exhibit 2.2**

**NIXPLAY INC.**

**RESTATED CERTIFICATE OF INCORPORATION**

**<u>ARTICLE I</u>: <u>NAME</u>.**

The name of this corporation is Nixplay Inc. (the **"*Corporation*"**).

**<u>ARTICLE II</u>: <u>REGISTERED OFFICE</u>.**

The address of the registered office of the Corporation in the State of Delaware is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

**<u>ARTICLE III</u>: <u>DEFINITIONS</u>.**

As used in this Restated Certificate (the "Restated Certificate"), the following terms have the meanings set forth below:

"***Board Composition***" means that:

&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 holders of record of the shares of Common Stock, exclusively and as a separate class, shall be entitled to elect [2] director(s) of the Corporation;

&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) the stockholders shall elect, by the affirmative vote of a majority of the Common Stock, voting together as a single class, one independent director (i.e., an individual who at the time of his first election as a director is not (i) an employee or a holder of Common Stock of the Company, (ii) a Family Member or Personal Friend of an employee or a holder of Common Stock of the Company, or (iii) an employee of a Person Controlled by an employee or a holder of Common Stock of the Company); 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;(c) any additional directors shall be elected by the affirmative vote of a majority of the Common Stock, voting together as a single class.

"***Family Member***" means, with respect to any individual, such individual's parents, spouse, and descendants (whether natural or adopted) and any trust or other vehicle formed for the benefit of, and controlled by, such individual and/or any one or more of them.

"***Personal Friend***" means, with respect to any individual, an individual with whom such individual has a pre-existing relationship extending beyond a relationship related to that individual's business or professional activities.

"***Control***" (including with correlative meaning, "Controlled by") means (i) with respect to a Person that is a company or corporation, the ownership, directly or indirectly through one or more intermediaries, of more than 50% of the voting rights attributable to the shares of capital stock of that company or corporation and more than 50% of all capital stock of that company or corporation; (ii) with respect to a Person that is not a company or corporation, the ownership, directly or indirectly through one or more intermediaries, of more than 50% of the equity capital of that person and the power to direct or cause the direction of its management and policies.

"***Person***" means any individual, corporation, partnership, limited liability company, trust or other entity.

**<u>ARTICLE IV</u>: <u>PURPOSE</u>.**

The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

**<u>ARTICLE V</u>: <u>AUTHORIZED SHARES</u>.**

The total number of shares of all classes of stock that the Corporation has authority to issue is 11,060,796, all of which are shares of Common Stock, par value $0.0001 per share.

The following rights, powers privileges and restrictions, qualifications, and limitations apply to the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Voting</u>.** The holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings). Unless required by law, there shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

**<u>ARTICLE VI</u>: <u>PREEMPTIVE RIGHTS</u>.**

No stockholder of the Corporation has a right to purchase shares of capital stock of the Corporation sold or issued by the Corporation except to the extent that such a right may from time to time be set forth in a written agreement between the Corporation and the stockholder.

**<u>ARTICLE VII</u>: <u>STOCK REPURCHASES</u>.**

In accordance with Section 500 of the California Corporations Code, a distribution can be made without regard to any preferential dividends arrears amount (as defined in Section 500 of the California Corporations Code) or any preferential rights amount (as defined in Section 500 of the California Corporations Code) in connection with (i) repurchases of Common Stock issued to or held by employees, officers, directors, or consultants of the Corporation or its subsidiaries upon termination of their employment or services pursuant to agreements providing for the right of said repurchase, (ii) repurchases of Common Stock issued to or held by employees, officers, directors or consultants of the Corporation or its subsidiaries pursuant to rights of first refusal contained in agreements providing for such right, or (iii) repurchases of Common Stock in connection with the settlement of disputes with any stockholder.

**<u>ARTICLE VIII</u>: <u>BYLAW PROVISIONS</u>.**

**A. AMENDMENT OF BYLAWS.** Subject to any additional vote required by this Restated Certificate or bylaws of the Corporation (the "***Bylaws***"), in furtherance and not in limitation of the powers conferred by statute, the Board is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws.

**B. NUMBER OF DIRECTORS.** Subject to any additional vote required by this Restated Certificate, the number of directors of the Corporation will be determined in the manner set forth in the Bylaws.

**C. BALLOT.** Elections of directors need not be by written ballot unless the Bylaws so provide.

**D. MEETINGS AND BOOKS.** Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board or in the Bylaws.

**<u>ARTICLE IX</u>: <u>DIRECTOR LIABILITY</u>.**

**A. LIMITATION.** To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article IX to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended. Any repeal or modification of the foregoing provisions of this Article IX by the stockholders will not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

**B. INDEMNIFICATION.** To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which General Corporation Law permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise permitted by Section 145 of the General Corporation Law.

**C. MODIFICATION.** Any amendment, repeal, or modification of the foregoing provisions of this Article IX will not adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification.

**ARTICLE X: CORPORATE OPPORTUNITIES.**

The Corporation renounces any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, or in being informed about, an Excluded Opportunity. "*Excluded Opportunity*" means any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of, (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Common Stock or any affiliate, partner, member, director, stockholder, employee, agent or other related person of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (a "*Covered Person*"), unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation.

**\* \* \* \* \***

## Ex1A-3

**Exhibit 3.1**

**INVESTORS' RIGHTS AGREEMENT**

THIS INVESTORS' RIGHTS AGREEMENT (this "**Agreement**"), is made as of [___________], 2023, by and among Nixplay Inc., a Delaware corporation (the "**Company**"), each of the investors listed on <u>Schedule A</u> hereto, each of which is referred to in this Agreement as an "**Investor**".

**RECITALS**

**WHEREAS**, the Company and the Investors are parties to that certain Subscription Agreement of even date herewith (the "**Subscription Agreement**"); and

**WHEREAS**, in order to induce the Company to enter into the Subscription Agreement and to induce the Investors to invest funds in the Company pursuant to the Subscription Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of the Investors to participate in future equity offerings by the Company, and shall govern certain other matters as set forth in this Agreement;

**NOW, THEREFORE**, the parties hereby agree as follows:

1. <u>Definitions</u>. For purposes of this Agreement:

1.1 "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or other investment fund now or hereafter existing that is controlled by one (1) or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.

1.2 "**Board of Directors**" means the board of directors of the Company.

1.3 "**Certificate of Incorporation**" means the Company's Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time.

1.4 "**Common Stock**" means shares of the Company's common stock, par value $0.0001 per share.

1.5 "**Derivative Securities**" means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

1.6 "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

1.7 "**Exempted Securities**" means, collectively, (i) shares of Common Stock issued or issuable upon conversion of any outstanding shares of preferred stock; (ii) shares of Common Stock or preferred stock issuable upon exercise of any options, warrants, or rights to purchase any securities of the Company outstanding as of the date of this Agreement; (iii) shares of Common Stock or preferred stock issued in connection with any stock split or stock dividend or recapitalization; (iv) shares of Common Stock (or options, warrants or rights therefor) granted or issued to employees, officers, directors, contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the board of directors; (v) any other shares of Common Stock or preferred stock (and/or options or warrants therefor) issued or issuable primarily for other than equity financing purposes and approved by the board of directors; (vi) shares of Common Stock issued or issuable by the Company to the public pursuant to a registration statement filed under the Securities Act; and (vii) any other shares of the Company's capital stock, the issuance of which is specifically excluded by approval of the board of directors.

1.8 "**Immediate Family Member**" means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, life partner or similar statutorily-recognized domestic partner, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships of a natural person referred to herein.

1.9 "**IPO**" means the Company's first underwritten public offering of its Common Stock under the Securities Act.

1.10 "**Major Investor**" means any Investor that, individually or together with such Investor's Affiliates, purchases at least [$100,000] worth of Common Stock under the Subscription Agreement.

1.11 "**New Securities**" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

1.12 "**Person**" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

1.13 "**Shares**" means any securities of the Company, including without limitation, all shares of Common Stock, by whatever name called, now owned or subsequently acquired by an Investor, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.

1.14 "**SEC**" means the Securities and Exchange Commission.

1.15 "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

2. <u>Rights to Future Stock Issuances</u>.

2.1 <u>Right of First Offer</u>. Subject to the terms and conditions of this <u>Section 2.1</u> and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself and (ii) its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall give notice (the "**Offer Notice**") to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Derivative Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Derivative Securities then outstanding). The closing of any sale pursuant to this <u>Section 2.1(b)</u> shall occur within the later of one hundred eighty (180) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to <u>Section 2.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in <u>Section 2.1(b)</u>, the Company may, during the one hundred eighty (180) day period following the expiration of the periods provided in <u>Section 2.1(b)</u>, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the minimum amount of New Securities to be sold within such period, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this <u>Section 2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right of first offer in this <u>Section 2.1</u> shall not be applicable to Exempted Securities.

2.2 <u>Termination</u>. The covenants set forth in <u>Section 2.1</u> shall terminate and be of no further force or effect (i) on the date the Company becomes subject to the periodic reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, or (ii) upon the closing of a Sale of the Company other than a Stock Sale.

3. <u>Drag-Along</u>.

3.1 <u>Definitions</u>. A "**Sale of the Company**" shall mean any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a transaction or series of related transactions in which a Person, or a group of related Persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company (a "**Stock Sale**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a merger or consolidation in which (i) the Company is a constituent party or (ii) a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for equity securities that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the equity securities of (1) the surviving or resulting party or (2) if the surviving or resulting party is a wholly owned subsidiary of another party immediately following such merger or consolidation, the parent of such surviving or resulting party; *<u>provided</u>* that, for the purpose of this Section 3.1 (b), all shares of Common Stock issuable upon conversion of Derivative Securities outstanding immediately prior to such merger or consolidation shall be deemed to be outstanding immediately prior to such merger or consolidation and, if applicable, deemed to be converted or exchanged in such merger or consolidation on the same terms as the actual outstanding shares of Common Stock are converted or exchanged; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or, if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company, except where such sale, lease, transfer or other disposition is to the Company or one or more wholly owned subsidiaries of the Company.

3.2 <u>Actions to be Taken</u>. In the event that (i) the Investors that constitute the holders of at least a majority of the shares of Common Stock (the "**Selling Investors**"); and (ii) the Board approve a Sale of the Company, specifying that this <u>Section 3</u> shall apply to such transaction, then, subject to satisfaction of each of the conditions set forth in <u>Section 3.3</u> below, each Investor and the Company hereby agree:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if such transaction requires stockholder approval, with respect to all Shares that such Investor owns or over which such Investor otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such Sale of the Company (together with any related amendment or restatement to the Certificate of Incorporation required to implement such Sale of the Company) and to vote in opposition to any and all other proposals that could delay or impair the ability of the Company to consummate such Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such transaction is a Stock Sale, to sell the same proportion of shares of capital stock of the Company beneficially held by such Investor as is being sold by the Selling Investors to the Person to whom the Selling Investors propose to sell their Shares, and, except as permitted in <u>Section 3.3</u> below, on the same terms and conditions as the other stockholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Selling Investors in order to carry out the terms and provision of this <u>Section 3</u>, including, without limitation, executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, any associated indemnity agreement, or escrow agreement, any associated voting, support, or joinder agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances), and any similar or related documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquirer in connection with the Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to refrain from exercising any dissenters' rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in the event that the Selling Investors, in connection with such Sale of the Company, appoint a stockholder representative (the "**Stockholder Representative**") with respect to matters affecting the Investors under the applicable definitive transaction agreements following consummation of such Sale of the Company, (x) to consent to (i) the appointment of such Stockholder Representative, (ii) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations, and (iii) the payment of such Investor's pro rata portion (from the applicable escrow or expense fund or otherwise) of any and all reasonable fees and expenses to such Stockholder Representative in connection with such Stockholder Representative's services and duties in connection with such Sale of the Company and its related service as the representative of the Investors, and (y) not to assert any claim or commence any suit against the Stockholder Representative or any other Investor with respect to any action or inaction taken or failed to be taken by the Stockholder Representative, within the scope of the Stockholder Representative's authority, in connection with its service as the Stockholder Representative, absent fraud, bad faith, or willful misconduct.

3.2 <u>Conditions</u>. Notwithstanding anything to the contrary set forth herein, a Stockholder will not be required to comply with <u>Section 3.2</u> above in connection with any proposed Sale of the Company (the "**Proposed Sale**"), unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any representations and warranties to be made by such Investor in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including, but not limited to, representations and warranties that (i) the Investor holds all right, title and interest in and to the Shares such Investor purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Investor in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Investor have been duly executed by the Investor and delivered to the acquirer and are enforceable (subject to customary limitations) against the Investor in accordance with their respective terms; and (iv) neither the execution and delivery of documents to be entered into by the Investor in connection with the transaction, nor the performance of the Investor's obligations thereunder, will cause a breach or violation of the terms of any agreement to which the Investor is a party, or any law or judgment, order or decree of any court or governmental agency that applies to the Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Investor is not required to agree (unless such Investor is a Company officer or employee) to any restrictive covenant in connection with the Proposed Sale (including, without limitation, any covenant not to compete or covenant not to solicit customers, employees or suppliers of any party to the Proposed Sale) or any release of claims other than a release in customary form of claims arising solely in such Investor's capacity as a stockholder of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Investor and its Affiliates are not required to amend, extend or terminate any contractual or other relationship with the Company, the acquirer or their respective Affiliates, except that the Investor may be required to agree to terminate the investment-related documents between or among such Investor, the Company and/or other stockholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Investor is not liable for the breach of any representation, warranty or covenant made by any other Person in connection with the Proposed Sale, other than the Company (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all stockholders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) liability shall be limited to such Investor's applicable share (determined based on the respective proceeds payable to each Investor in connection with such Proposed Sale in accordance with the provisions of the Certificate of Incorporation) of a negotiated aggregate indemnification amount that applies equally to all Investors but that in no event exceeds the amount of consideration otherwise payable to such Investor in connection with such Proposed Sale, except with respect to claims related to fraud by such Investor, the liability for which need not be limited as to such Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) upon the consummation of the Proposed Sale (i) each holder of each class or series of the capital stock of the Company will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock, (ii) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock, and (iii) unless waived pursuant to the terms of the Certificate of Incorporation and as may be required by law, the aggregate consideration receivable by all holders of the Common Stock shall be allocated among the holders of Common Stock in accordance with the Company's Certificate of Incorporation in effect immediately prior to the Proposed Sale; <u>provided</u>*,* <u>however</u>*,* that, notwithstanding the foregoing provisions of this <u>Section 3.3 (e)</u>, if the consideration to be paid in exchange for the Shares held by the Investor, as applicable, pursuant to this <u>Section 3.3 (e)</u> includes any securities and due receipt thereof by Investor would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Investor of any information other than such information as a prudent issuer would generally furnish in an offering made solely to "accredited investors" as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Investor in lieu thereof, against surrender of the Shares held by the Investor, as applicable, which would have otherwise been sold by such Investor, an amount in cash equal to the fair value (as determined in good faith by the Board) of the securities which such Investor would otherwise receive as of the date of the issuance of such securities in exchange for the Shares held by the Investor, as applicable;

4. <u>Miscellaneous</u>.

4.1 <u>Successors and Assigns</u>. The rights under this Agreement may be assigned (but only with all related obligations) by an Investor to a transferee of Shares that (i) is an Affiliate of an Investor; (ii) is an Investor's Immediate Family Member or trust for the benefit of an individual Investor or one (1) or more of such Investor's Immediate Family Members; or (iii) after such transfer, together with its Affiliates, would be a Major Investor; <u>provided</u>, <u>however</u>, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Shares with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement. For the purposes of determining the number of Shares held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Investor's Immediate Family Member; or (3) that is a trust for the benefit of an individual Investor or such Investor's Immediate Family Member shall be aggregated together and with those of the transferring Investor; <u>provided further</u> that all transferees who would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. 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 assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

4.2 <u>Governing Law</u>. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

4.3 <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *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.

4.4 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

4.5 <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on <u>Schedule A</u> hereto, or (as to the Company) to the principal office of the Company and to the attention of the Chief Executive Officer, or in any case to such email address or address as subsequently modified by written notice given in accordance with this <u>Section 4.5</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to [*Company counsel name and address*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent to Electronic Notice</u>. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by electronic transmission pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address set forth below such Investor's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each Investor agrees to promptly notify the Company of any change in such stockholder's electronic mail address, and that failure to do so shall not affect the foregoing.

4.6 <u>Amendments and Waivers</u>. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of at least a majority of the Shares then outstanding; <u>provided</u> that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any other party. Notwithstanding the foregoing, (a) this Agreement may not be amended, modified or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of <u>Section 2</u> with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction). Notwithstanding the foregoing, <u>Schedule A</u> hereto may be amended by the Company from time to time to add transferees of any Shares in compliance with the terms of this Agreement without the consent of the other parties; and <u>Schedule A</u> hereto may also be amended by the Company after the date of this Agreement without the consent of the other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with <u>Section 4.9</u>. The Company shall give prompt notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination, or waiver. Any amendment, modification, termination, or waiver effected in accordance with this <u>Section 4.6</u> shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one (1) or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

4.7 <u>Severability</u>. In case any one (1) or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

4.8 <u>Aggregation of Stock; Apportionment</u>. All Shares held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated Persons may apportion such rights as among themselves in any manner they deem appropriate.

4.9 <u>Additional Investors</u>. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Common Stock after the date hereof, any purchaser of such shares of Common Stock may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter shall be deemed an "Investor" for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an "Investor" hereunder.

4.10 <u>Entire Agreement</u>. This Agreement (including any Schedules hereto) together with the Subscription Agreement, constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

4.11 <u>Dispute Resolution</u>. EACH INVESTOR AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF DELAWARE AND NO OTHER PLACE AND AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT NOT ARISING UNDER THE FEDERAL SECURITIES LAWS MAY BE LITIGATED IN SUCH COURTS.

EACH INVESTOR AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, ANDAGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT NOT ARISING UNDER THE FEDERAL SECURITIES LAWS. EACH OF SUBSCRIBER AND THE COMPANY FURTHERCONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 4.5 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT.

EACH OF THE PARTIES HERETO HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT BUT NOT INCLUDING CLAIMS UNDER THE FEDERAL SECURITIES LAWS) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. BY AGREEING TO THIS WAIVER, THE SUBSCRIBER IS NOT DEEMED TO WAIVE THE COMPANY'S COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.

4.12 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| |
|:---|
| COMPANY: |
| NIXPLAY INC |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| INVESTORS: |
| By: |
| Name: |
| Title: |

---

Signature Page to Investors' Rights Agreement

**<u>SCHEDULE A</u>**

**Investors**

---

| |
|:---|
| **<u>Name and Address</u>** |
| Investor Name<br> Address<br> Phone Number<br> Email<br> [Counsel cc, if any]]<br>|
| Investor Name<br> Address<br> Phone Number<br> Email<br> [Counsel cc, if any]]<br>|
| Investor Name<br> Address<br> Phone Number<br> Email<br> [Counsel cc, if any]]<br>|

---

## Ex1A-4

**Exhibit 4.1**

**SUBSCRIPTION AGREEMENT**

THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING.

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "***SECURITIES ACT***"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS. ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "***SEC***"), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO INVESTOR IN CONNECTION WITH THIS OFFERING, OVER THE WEB-BASED PLATFORM MAINTAINED BY STARTENGINE CROWDFUNDING, INC. (THE "***PLATFORM***") OR THROUGH STARTENGINE PRIMARY, LLC (THE "***BROKER***"). ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT. IN ADDITION, THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

INVESTORS WHO ARE NOT "ACCREDITED INVESTORS" (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 5(g). THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH INVESTOR IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY INVESTOR IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

PROSPECTIVE INVESTORS MAY NOT TREAT THE CONTENTS OF THE SUBSCRIPTION AGREEMENT, THE OFFERING CIRCULAR OR ANY OF THE OTHER MATERIALS AVAILABLE ON THE PLATFORM OR PROVIDED BY THE COMPANY AND/OR BROKER (COLLECTIVELY, THE "***OFFERING MATERIALS***"), OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS OFFICERS, EMPLOYEES OR AGENTS (INCLUDING "TESTING THE WATERS" MATERIALS) AS INVESTMENT, LEGAL OR TAX ADVICE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND THE RISKS INVOLVED.

EACH PROSPECTIVE INVESTOR SHOULD CONSULT THE INVESTOR'S OWN COUNSEL, ACCOUNTANTS AND OTHER PROFESSIONAL ADVISORS AS TO INVESTMENT, LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING THE INVESTOR'S PROPOSED INVESTMENT.

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE. THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED.

THE INFORMATION PRESENTED IN THE OFFERING MATERIALS WAS PREPARED BY THE COMPANY SOLELY FOR THE USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THIS OFFERING. NOTHING CONTAINED IN THE OFFERING MATERIALS IS OR SHOULD BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY.

THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE. EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

To: Nixplay, Inc. 12301 Whitewater Dr. Ste 115 Minnetonka, MN 55343-3932

Ladies and Gentlemen:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.  **<u>Subscription</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The undersigned ("***Investor***") hereby irrevocably subscribes for and agrees to purchase shares (the "***Shares***") of Common Stock, par value $0.0001 per share (the "***Common Stock***"), of Nixplay, Inc., a Delaware corporation (the "***Company***"), at a purchase price of $6.0949 per share of Common Stock (the "***Per Security Price***"), upon the terms and conditions set forth herein (the "***Subscription***"). The minimum subscription is $505.88. The Shares being subscribed for under this Subscription Agreement and the Common Stock issuable upon the conversion of such Shares are sometimes referred to herein as the "***Securities***." The rights and preferences of the Shares are as set forth in the Amended and Restated Certificate of Incorporation of the Company, available in the Exhibits to the Offering Statement of the Company filed with the SEC (the "***Offering Statement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investor understands that the Shares are being offered pursuant to the Offering Circular dated [_], 2023 and its exhibits (the "***Offering Circular***") as filed with the Securities and Exchange Commission (the "***SEC***") as part of the Offering Statement. By subscribing to the Offering, Investor acknowledges that Investor has received a copy of the Offering Circular and Offering Statement and any other information required by Investor to make an investment decision with respect to the Shares. Subscriber further understands that StartEngine Primary, LLC ("***StartEngine Primary***"), which is serving as the Company's broker-dealer in this offering, will assess a processing fee of 3.5% of the value of the Shares subscribed for. This processing fee shall count against the per investor limit set out in Section 5(g)(ii) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Subscription may be accepted or rejected in whole or in part, at any time prior to the Termination Date (as hereinafter defined), by the Company at its sole discretion. Upon the expiration of the period specified in Investor's state for notice filings before sales may be made in such state, if any, the subscription may no longer be revoked at the option of the Investor. In addition, the Company, at its sole discretion, may allocate to Investor only a portion of the number of the Shares that Investor has subscribed to purchase hereunder. The Company will notify Investor whether this subscription is accepted (whether in whole or in part) or rejected. If Investor's subscription is rejected, Investor's payment (or portion thereof if partially rejected) will be returned to Investor without interest and all of Investor's obligations hereunder shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The aggregate number of shares of Common Stock that may be issued by the Company in this offering shall not exceed 2,707,183 shares (the "***Maximum Shares***"), which includes up to up to 246,108 additional shares of Common Stock eligible to be issued as Bonus Shares (as defined in the Offering Circular). The Company may accept subscriptions until [DATE], or sooner terminated by the Company (the "***Termination Date***"). There is no minimum amount of funds the Company must raise in this offering and the Company may elect at any time to close all or any portion of this offering on various dates (each a "***Closing***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of rejection of this Subscription in its entirety, or in the event the sale of the Shares (or any portion thereof) to Investor is not consummated for any reason, this Subscription Agreement shall have no force or effect, except for Section 6 hereof, which shall remain in force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The terms of this Subscription Agreement shall be binding upon Investor and its transferees, heirs, successors and assigns (collectively, "***Transferees***"); provided that for any such transfer to be deemed effective, (i) the Transferee shall have executed and delivered to the Company in advance an instrument in form acceptable to the Company in its sole discretion, pursuant to which the proposed Transferee shall be acknowledge, agree, and be bound by the representations and warranties of Investor, terms of this Subscription Agreement, and (ii) the Company consents to the transfer in its sole discretion.

2. **<u>Joinder to Investors' Rights Agreement</u>**. By subscribing to the Offering and executing this Subscription Agreement, Investor (and, if Investor is purchasing the Shares subscribed for hereby in a fiduciary capacity, the person or persons for whom Investor is so purchasing) hereby joins as a party that is designated as an "Investor" under the Investors' Rights Agreement to be dated as of the initial Closing, in substantially the form attached hereto as <u>Exhibit A</u> (the "***Investors' Rights Agreement***"). Any notice required or permitted to be given to Investor under the Investors' Rights Agreement shall be given to Investor at the address provided with Investor's subscription. Investor confirms that Investor has reviewed the Investors' Rights Agreement and will be bound by the terms thereof as a party who is designated as an "Investor" under the Investors' Rights Agreement.

3. **<u>Purchase Procedure</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment.</u> The purchase price for the Shares shall be paid simultaneously with execution and delivery to the Company of the signature page of this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Escrow Arrangements</u>. Payment for the Shares by Investor shall be received by The Bryn Mawr Trust Company of Delaware LLC(the "***Escrow Agent***") from each Investor by ACH electronic transfer, debit card, credit card, wire transfer of immediately available funds, or other means approved by the Company, prior to a Closing in the amount of Investor's subscription, and will remain in escrow until a Closing has occurred. Investments shall be transmitted promptly to the Escrow Agent in compliance with Rule 15c2-4 under the Securities Exchange Act of 1934, as amended (the "***Exchange Act***").

Upon a successful Closing, the Escrow Agent shall release Investor's funds to the Company. The Investor shall receive notice and evidence of the digital entry of the number of the Shares owned by Investor reflected on the books and records of the Company and verified by StartEngine Secure, LLC (the "***Transfer Agent***"), which books and records shall bear a notation that the Shares were sold in reliance upon Regulation A of the Securities Act. Upon written instruction by the Investor, the Transfer Agent may record the Shares beneficially owned by the Investor on the books and records of the Company in the name of any other entity as designated by the Investor and in accordance with the Transfer Agent's requirements.

4. **<u>Representations and Warranties of the Company</u>**. The Company represents and warrants to Investor that the following representations and warranties are true and complete in all material respects as of the date of each Closing, except as otherwise indicated. For purposes of this Subscription Agreement, an individual shall be deemed to have "knowledge" of a particular fact or other matter if such individual is actually aware of such fact. The Company will be deemed to have "knowledge" of a particular fact or other matter if one of the Company's current officers has, or at any time had, actual knowledge of such fact or other matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization and Standing</u>. The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite power and authority to own and operate its properties and assets, to accept, execute and deliver this Subscription Agreement, the Shares and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Issuance of the Shares</u>. The issuance, sale and delivery of the Shares in accordance with this Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Shares, when issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authority for Agreement</u>. The acceptance by the Company of this Subscription Agreement and of Investor's joinder as a party to the Investors' Rights Agreement, and the consummation of the transactions contemplated hereby and thereby (including the issuance, sale and delivery of the Securities), are within the Company's powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon the Company's acceptance of this Subscription Agreement, each of this Subscription Agreement and the Investors' Rights Agreement, shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Filings</u>. Assuming the accuracy of Investor's representations and warranties set forth in Section 5 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the acceptance, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Regulation A or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Capitalization</u>. The outstanding shares of Common Stock, options, warrants and other securities of the Company immediately prior to the initial Closing is as set forth in "***Security Being Offered***" in the Offering Circular. Except as set forth in the Offering Circular, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind (oral or written) for the purchase or acquisition from the Company of any of its securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial Statements</u>. Complete copies of the Company's financial statements, consisting of the statement of financial position of the Company as of its fiscal year end on December 31, 2021 and December 31, 2020, and the related consolidated statements of income and cash flows for the respective periods then ended (collectively, the "***Financial Statements***"), have been made available to Investor and appear in the Offering Circular. The Financial Statements are based on the books and records of the Company and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the respective periods indicated. BF Borgers CPA PC, which has audited the Financial Statements at December 31, 2021 and December 31, 2020, and for each fiscal year then ended, is an independent accounting firm within the rules and regulations adopted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Proceeds</u>. The Company shall use the proceeds from the issuance and sale of the shares of Common Stock sold in the offering as set forth in "***Use of Proceeds***" in the Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Litigation</u>. Except as disclosed in the Offering Circular, there is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company's knowledge, currently threatened in writing (a) against the Company or (b) to the Company's knowledge, against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company.

5. **<u>Representations and Warranties of Investor</u>**. By subscribing to the Offering, Investor (and, if Investor is purchasing the Shares subscribed for hereby in a fiduciary capacity, the person or persons for whom Investor is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of each Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Power and Authority</u>. Investor has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to accept, execute and deliver this Subscription Agreement, to join as a party to the Investors' Rights Agreement, and to carry out the provisions of such respective agreements. All action on Investor's part required for the lawful subscription to the offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Subscription Agreement and the Investors' Rights Agreement will be valid and binding obligations of Investor, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Information</u>. Investor has had an opportunity to discuss the Company's business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company's operations and facilities. Investor has also had the opportunity to ask questions of and receive answers from the Company and its management regarding the terms and conditions of this investment. Investor acknowledges that except as set forth herein, no representations or warranties have been made to Investor, or to Investor's advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Investment Experience</u>. Investor has sufficient experience in financial and business matters to be capable of utilizing such information to evaluate the merits and risks of Investor's investment in the Shares, and to make an informed decision relating thereto; or Investor has utilized the services of a purchaser representative and together they have sufficient experience in financial and business matters that they are capable of utilizing such information to evaluate the merits and risks of Investor's investment in the Shares, and to make an informed decision relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Investor Determination of Suitability</u>. Investor has evaluated the risks of an investment in the Shares, including those described in the section of the Offering Circular captioned "***Risk Factors***", and has determined that the investment is suitable for Investor. Investor has adequate financial resources for an investment of this character, and at this time Investor could bear a complete loss of Investor's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Registration</u>. Investor understands that the Shares are not being registered under the Securities Act of 1933, as amended (the "***Securities Act***"), on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and that reliance on such exemption is predicated in part on the truth and accuracy of Investor's representations and warranties, and those of the other purchasers of the shares of Common Stock in the offering. Investor further understands that the Shares are not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registerable public offering in such state, since the Shares are "covered securities" under the National Securities Market Improvement Act of 1996. Investor covenants not to sell, transfer or otherwise dispose of any Shares unless such Shares have been registered under the Securities Act and under applicable state securities laws, or exemptions from such registration requirements are available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Illiquidity and Continued Economic Risk</u>. Investor acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will ever exist. Investor must bear the economic risk of this investment indefinitely and the Company has no obligation to list any of the Shares on any market or take any steps (including registration under the Securities Act or the Exchange Act) with respect to facilitating trading or resale of the Shares. Investor must bear the economic risk of this investment indefinitely and Investor acknowledges that Investor is able to bear the economic risk of losing Investor's entire investment in the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Accredited Investor Status or Investment Limits</u>. Investor represents that either:

&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) Investor is an "accredited investor" within the meaning of Rule 501 of Regulation D under the Securities Act; 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;(ii) The purchase price, together with any other amounts previously used to purchase Shares in this offering, and (including any fee to be paid by the Subscriber), does not exceed 10% of the greater of Investor's annual income or net worth.

Investor represents that to the extent it has any questions with respect to its status as an accredited investor, or the application of the investment limits, it has sought professional advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Stockholder Information</u>. Within five days after receipt of a request from the Company, Investor hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is or may become subject, including, without limitation, the need to determine the accredited status of the Company's stockholders. Investor further agrees that in the event it transfers any Securities, it will require the transferee of such Securities to agree to provide such information to the Company as a condition of such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Valuation</u>. Investor acknowledges that the price of the shares of Common Stock to be sold in this offering was set by the Company on the basis of the Company's internal valuation and no warranties are made as to value. Investor further acknowledges that future offerings of securities of the Company may be made at lower valuations, with the result that Investor's investment will bear a lower valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Domicile</u>. Investor maintains Investor's domicile (and is not a transient or temporary resident) at the address provided with Investors subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Brokerage Fees</u>. There are no claims for brokerage commission, finders' fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or related documents based on any arrangement or agreement binding upon Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Foreign Investors</u>. If Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. Investor's subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of Investor's jurisdiction.

6. **<u>Indemnity</u>**. The representations, warranties and covenants made by Investor herein shall survive the closing of this Subscription Agreement. Investor agrees to indemnify and hold harmless the Company and its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by Investor to comply with any covenant or agreement made by Investor herein or in any other document furnished by Investor to any of the foregoing in connection with this transaction.

7. **<u>Governing Law; Jurisdiction</u>**. This Subscription Agreement shall be governed and construed in accordance with the laws of the State of Delaware.

EACH OF THE SUBSCRIBER AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF DELAWARE AND NO OTHER PLACE AND AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT NOT ARISING UNDER THE FEDERAL SECURITIES LAWS MAY BE LITIGATED IN SUCH COURTS.

EACH OF SUBSCRIBER AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, ANDAGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT NOT ARISING UNDER THE FEDERAL SECURITIES LAWS. EACH OF SUBSCRIBER AND THE COMPANY FURTHERCONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 8 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT.

EACH OF THE PARTIES HERETO HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT BUT NOT INCLUDING CLAIMS UNDER THE FEDERAL SECURITIES LAWS) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. BY AGREEING TO THIS WAIVER, THE SUBSCRIBER IS NOT DEEMED TO WAIVE THE COMPANY'S COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.

8. **<u>Notices</u>**. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed, telecopied or cabled on the date of such delivery to the address of the respective parties as follows:

If to the Company, to:

Nixplay, Inc.

12301 Whitewater Dr.

Ste 115

Minnetonka, MN 55343-3932

If to Investor, at Investor's address supplied in connection with this subscription, or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by email shall be confirmed by letter given in accordance with (a) or (b) above.

9. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Subscription Agreement is not transferable or assignable by Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Investor and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If any recapitalization or other transaction affecting the stock of the Company is effected, then any new, substituted or additional securities or other property which is distributed with respect to the Securities shall be immediately subject to this Subscription Agreement, to the same extent that the Securities, immediately prior thereto, shall have been covered by this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement 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 other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

10. **<u>Subscription Procedure</u>**. Investor, by providing his or her name and subscription amount and clicking "accept" and/or checking the appropriate box on the Platform ("***Online Acceptance***"), confirms such Investor's investment through the Platform and confirms such Investor's electronic signature to this Subscription Agreement. Investor agrees that his or her electronic signature as provided through Online Acceptance is the legal equivalent of his or her manual signature on this Subscription Agreement and Online Acceptance establishes such Investor's acceptance of the terms and conditions of this Subscription Agreement.

**APPENDIX A**

*An accredited investor, as defined in Rule 501(a) of the Securities Act of 1933, as amended, includes the following categories of investor:*

(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the Commission under section 203(l) or (m) of the Investment Advisers Act of 1940; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any Rural Business Investment Company as defined in section 384A of the Consolidated Farm and Rural Development Act; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in paragraph (5)(ii) of this section, for purposes of calculating net worth under this paragraph (5):

&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 person's primary residence shall not be included as an asset;

&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) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); 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;(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Paragraph (5)(i) of this section will not apply to any calculation of a person's net worth made in connection with a purchase of securities in accordance with a right to purchase such securities, provided that:

&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) Such right was held by the person on July 20, 2010;

&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) The person qualified as an accredited investor on the basis of net worth at the time the person acquired such right; 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;(C) The person held securities of the same issuer, other than such right, on July 20, 2010.

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii);

(8) Any entity in which all of the equity owners are accredited investors;

(9) Any entity, of a type of not listed in paragraphs (1), (2), (3), (7), or (8), not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;

(10) Any natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status;

(11) Any natural person who is a "knowledgeable employee," as defined in rule 3c-5(a)(4) under the Investment Company Act of 1940 (17 CFR 270.3c-5(a)(4)), of the issuer of the securities being offered or sold where the issuer would be an investment company, as defined in section 3 of such act, but for the exclusion provided by either section 3(c)(1) or section 3(c)(7) of such act;

(12) Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With assets under management in excess of $5,000,000,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) That is not formed for the specific purpose of acquiring the securities offered, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; and

(13) Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1)), of a family office meeting the requirements in paragraph (12) of this section and whose prospective investment in the issuer is directed by such family office pursuant to paragraph (12)(iii).

## Ex1A-6

**Exhibit 6.9**

Dated 1 January 2023

 **(1) CREEDON TECHNOLOGIES HK LIMITED**

-and-

 **(2) MARK PALFREEMAN**

**LOAN AGREEMENT**

![](image_017.jpg)

Nash & Co solicitors LLP

Beaumont House

Beaumont Park

Plymouth

PL4 9BD

01752 66 44 44

Ref<u> </u>/<u> </u>

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| Definitions and interpretation | 1 |
| 2. The loan | 2 |
| 3. Purpose | 2 |
| 4. Interest | 2 |
| 5. Repayment | 2 |
| 6. Payments | 2 |
| 7. Calculations | 3 |
| 8. Amendments, waivers, consents and remedies | 3 |
| 9. Severance | 3 |
| 10. Assignment | 3 |
| 11. Counterparts | 3 |
| 12. Third party rights | 3 |
| 13. Governing law and jurisdiction | 3 |

---

**This Agreement** is dated 1 Jan 2023

**Parties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Creedon Technologies HK Limited incorporated and registered in Hong Kong with
company number 53100990 whose registered office is at [address] (the **Borrower**); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Mark Creedon Palfreeman of [address] (the **Lender**).

**Agreed Terms**

1. Definitions and interpretation

1.1 **Definitions** 

The following definitions apply in this agreement.

---

| | |
|:---|:---|
| **Borrowed Money** | means any indebtedness the Borrower owes as a result of:<br>(a) borrowing or raising money (with or without security), including any premium and any capitalised interest on that money;<br>When calculating Borrowed Money, no liability shall be taken into account more than once. |
| **Business Day** | means a day other than a Saturday, Sunday or public holiday in Hong Kong when banks in Hong Kong are open for business. |
| **Payment Date** | means the date on which the Loan is to be made. |
| **Indebtedness** | means any obligation to pay or repay money, present or future, and whether actual or contingent, sole or joint and any guarantee or indemnity of any of those obligations. |
| **Loan** | means the principal amount of the loan made or to be made by the Lender to the Borrower under this agreement or (as the context requires) the principal amount outstanding for the time being of that loan. |
| **Repayment Date** | Means Demand by the **Lender** |
| **Sterling and £** | Means the lawful currency of United Kingdom |

---

1.2 **Interpretation** 

In this agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1 clause, Schedule and paragraph headings shall not affect the interpretation of this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2 a reference to a **person** shall include a reference to an individual, firm, company, corporation,
partnership, unincorporated body of persons, government, state or agency of a state or any association, trust, joint venture or consortium
(whether or not having separate legal personality);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3 unless the context otherwise requires, words in the singular shall include the plural and in the plural
shall include the singular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4 unless the context otherwise requires, a reference to one gender shall include a reference to the other
genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5 references to a party shall include that party's successors, permitted assigns and permitted transferees
and this agreement shall be binding on, and enure to the benefit of, the parties to this agreement and their respective
personal representatives, successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6 a reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from
time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7 a reference to a statute or statutory provision shall include all subordinate legislation made from time
to time under that statute or statutory provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.8 a reference to a time of day is to Hong Kong time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.9 a reference to **writing** or **written** includes fax and email an obligation on a party not to
do something includes an obligation not to allow that thing to be done;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.10 reference to **this agreement** (or any provision of it) or to any other agreement or document referred
to in this agreement is a reference to this agreement, that provision or such other agreement or document as amended (in each case, other
than in breach of the provisions of this agreement) from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.11 unless the context otherwise requires, a reference to a clause or Schedule is to a clause of, or Schedule
to, this agreement and a reference to a paragraph is to a paragraph of the relevant Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.12 any words following the terms **including**, **include**, **in particular**, **for example** or
any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase
or term preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.13 a reference to an **amendment** includes a novation, re-enactment, supplement or variation (and **amended** shall be construed accordingly);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.14 a reference to a **regulation** includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law) of any governmental, inter-governmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation.

2. The loan

The Lender grants to the Borrower an unsecured Sterling loan of a total amount of £44,159.99 on the terms, and subject to the conditions, of this agreement.

3. Purpose

3.1 The Borrower shall use all money borrowed under this agreement to finance the Company's growth (working
capital, inventory, expansion in new channels).

3.2 The Lender is not obliged to monitor or verify how any amount advanced under this agreement is used.

4. Interest

4.1 The Borrower shall pay simple interest on the Loan at the rate of 13% per annum.

4.2 Interest shall accrue daily and shall be payable on demand by Lender.

5. Repayment

Subject to the provisions of this agreement, the Borrower shall repay the Loan in full on the Repayment Date.

6. Payments

6.1 The payment made by the Lender under this agreement shall be in Sterling
and to the Borrower at its account number [_] on or before 1 January 2023.

6.2 If any payment becomes due on a day that is not a Business Day, the due date of such payment will be extended
to the next succeeding Business Day, or if that Business Day falls in the following calendar month, such due date shall be the immediately
preceding Business Day.

7. Calculations

7.1 Any interest under this agreement shall accrue on a pro-rata, day-to-day basis, calculated according to the
number of actual days elapsed and a year of 365 days.

8. Amendments, waivers, consents and remedies

8.1 No amendment of this agreement shall be effective unless it is in writing and signed by, or on behalf
of, each party to it (or its authorised representative).

8.2 A waiver of any right or remedy under this agreement or by law, or any consent given under this agreement,
is only effective if given in writing by the waiving or consenting party and shall not be deemed a waiver of any other breach or default.
It only applies in the circumstances for which it is given and shall not prevent the party giving it from subsequently relying on the
relevant provision.

8.3 A failure or delay by a party to exercise any right or remedy provided under this agreement or by law
shall not constitute a waiver of that or any other right or remedy, prevent or restrict any further exercise of that or any other right
or remedy or constitute an election to affirm this agreement. No single or partial exercise of any right or remedy provided under this
agreement or by law shall prevent or restrict the further exercise of that or any other right or remedy. No election to affirm this agreement
by the Lender shall be effective unless it is in writing.

8.4 The rights and remedies provided under this agreement are cumulative and are in addition to, and not exclusive
of, any rights and remedies provided by law.

9. Severance

If any provision (or part of a provision) of this agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision (or part of a provision) shall be deemed deleted. Any modification to or deletion of a provision (or part of a provision) under this clause shall not affect the legality, validity and enforceability of the rest of this agreement.

10. Assignment

Neither party may assign any of its rights or transfer any of its rights and obligations under this agreement without the written consent of the other.

11. Counterparts

11.1 This agreement may be executed in any number of counterparts, each of which when executed shall constitute
a duplicate original, but all the counterparts shall together constitute one agreement.

12. Third party rights

12.1 Unless it expressly states otherwise, this agreement does not give rise to any rights under the Contracts
(Rights of Third Parties) Ordinance, Cap 623 to enforce any term of this agreement.

12.2 The rights of the parties to rescind or agree any amendment or waiver under this agreement are not subject
to the consent of any other person.

13. Governing law and jurisdiction

13.1 This agreement and any dispute or claim (including non-contractual disputes or claims) arising out of
or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of Hong Kong.

13.2 Each party irrevocably agrees that, subject as provided below, the courts of Hong Kong shall have exclusive
jurisdiction over any dispute or claim (including non-contractual disputes or claims) that arises out of or in connection with this agreement
or its subject matter or formation. Nothing in this clause shall limit the right of the Lender to take proceedings against the Borrower
in any other court of competent jurisdiction, nor shall the taking of proceedings in any one or more jurisdictions preclude the taking
of proceedings in any other jurisdictions, whether concurrently or not, to the extent permitted by the law of such other
jurisdiction.

**This agreement** has been entered into on the date stated at the beginning of it.

---

| | |
|:---|:---|
| Signed by KEVIN PALFREEMAN | <u>/s/ Kevin Palfreeman</u> |

---

for and on behalf of CREEDON Director

TECHNOLOGIES HK LIMITED

---

| | |
|:---|:---|
| Signed by MARK PALFREEMAN | <u>/s/ Mark Palfreeman</u> |

---

## Ex1A-8

**Exhibit 8.1**

**Escrow Agreement**

**FOR**

**SECURITIES OFFERING**

This Escrow Agreement, effective as of <u>01 / 18 / 2023</u>, ("Escrow Agreement"), is by, between and among The Bryn Mawr Trust Company of Delaware, a Delaware Limited Purpose Trust Company and located at 20 Montchanin Rd., Suite 100, Greenville, DE 19807 as Escrow Agent hereunder ("Escrow Agent"); StartEngine Primary LLC ("Broker"), a Delaware Limited Liability Company, located at 3900 W. Alameda Ave, Burbank, CA 91505 ; and <u>Nixplay Inc</u>, a <u>LLC</u> ("Issuer") located at <u>12301 Whitewater Drive Suite 115, Minnetonka, MN 55343.</u>

**SUMMARY**

A. Issuer has engaged Broker to act as broker/dealer of record for the sale up to $<u>15,000,000</u> of securities (the "Securities") on a "best efforts" basis, in an offering pursuant to Regulation A+.

B. In accordance with the Form 1-A ("Offering Document"), subscribers to the Shares (the "Subscribers" and individually, a "Subscriber") will be required to submit full payment for their respective investments at the time they enter into subscription agreements.

C. In accordance with the Offering Document, all payments in connection with subscriptions for Shares shall be sent directly to Escrow Agent, and Escrow Agent has agreed to accept, hold, and disburse such funds deposited with it thereon in accordance with the terms of this Escrow Agreement and in compliance with the Securities Exchange Act of 1934 Rule 15(c)2-4 and related SEC guidance and FINRA rules.

D. In order to establish the escrow of funds and to effect the provisions of the Offering Document, the parties hereto have entered into this Escrow Agreement.

E. The parties to this agreement agree to the Transmittal of Funds for Deposit Into the Escrow Account procedures located in Exhibit B.

**STATEMENT OF AGREEMENT**

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

1. <u>Definitions.</u> In addition to the terms defined above, the following terms shall have the following meanings when used herein:

"Business Days" shall mean days when banks are open for business in the State of Delaware.

"Cash Investment" shall mean the number of Shares to be purchased by any Subscriber multiplied by the offering price per Share as set forth in the Offering Document.

"Cash Investment Instrument" shall mean an Automated Clearing House ("ACH"), made payable to or endorsed to Escrow Agent in the manner described in <u>Section 3(c)</u> hereof, in full payment for the Shares to be purchased by any Subscriber.

"Escrow Funds" shall mean the funds deposited with Escrow Agent pursuant to this Escrow Agreement.

"Expiration Date" means the date so designated on <u>Exhibit A</u>.

"Minimum Offering" shall mean the number Shares so designated on <u>Exhibit A</u> hereto.

"Minimum Offering Notice" shall mean a written notification, signed by Broker, pursuant to which the Broker shall represent (1) that subscriptions for the Minimum Offering have been received, (2) that, to the best of Broker's knowledge after due inquiry and review of its records, Cash Investment Instruments in full payment for that number of Shares equal to or greater than the Minimum Offering have been received, deposited with and collected by Escrow Agent, (3) and that such subscriptions have not been withdrawn, rejected or otherwise terminated, and (4) that the Subscribers have no statutory or regulatory rights of rescission without cause or all such rights have expired.

"Subscription Accounting" shall mean an accounting of all subscriptions for Shares received and accepted by Broker as of the date of such accounting, indicating for each subscription the Subscriber's name, social security number and address, the number and total purchase price of subscribed Securities, the date of receipt by Broker of the Cash Investment Instrument, and notations of any nonpayment of the Cash Investment Instrument submitted with such subscription, any withdrawal of such subscription by the Subscriber, any rejection of such subscription by Broker, or other termination, for whatever reason, of such subscription.

2. <u>Appointment of and Acceptance by Escrow Agent.</u> Issuer, Broker hereby appoint Escrow Agent to serve as Escrow Agent hereunder, and Escrow Agent hereby accepts such appointment in accordance with the terms of this Escrow Agreement.

3. <u>Deposits into Escrow</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All Cash Investment Instruments shall be delivered directly to Escrow Agent for deposit into the Escrow Account described on <u>Exhibit B</u> hereto. Each such deposit shall be accompanied by the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) a report containing such Subscriber's name, social security number or taxpayer identification number, address and other information required for withholding purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) a Subscription Accounting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) written instructions regarding the investment of such deposited funds in accordance with <u>Section 6</u> hereof.

ALL FUNDS SO DEPOSITED SHALL REMAIN THE PROPERTY OF THE SUBSCRIBERS ACCORDING TO THEIR RESPECTIVE INTERESTS AND, EXCEPT AS PROVIDED IN SECTION 10(C) HEREIN, SHALL NOT BE SUBJECT TO ANY LIEN OR CHARGE BY Escrow Agent OR BY JUDGMENT OR CREDITORS' CLAIMS AGAINST ISSUER UNTIL RELEASED OR ELIGIBLE TO BE RELEASED TO ISSUER IN ACCORDANCE WITH <u>SECTION 4(a)</u> HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Broker and Issuer understand and agree that all Cash Investment Instruments received by Escrow Agent hereunder are subject to collection requirements of presentment and final payment. Upon receipt, Escrow Agent shall process each Cash Investment Instrument for collection, and the proceeds thereof shall be held as part of the Escrow Funds until disbursed in accordance with <u>Section 4</u> hereof. If, upon presentment for payment, any Cash Investment Instrument is dishonored, Escrow Agent's sole obligation shall be to notify Broker of such dishonor and to return such Cash Investment Instrument to the Investor should Escrow Agent have Investor information sufficient to effect such a return or to Broker should sufficient Investor information be unavailable. Notwithstanding the foregoing, if for any reason any Cash Investment Instrument is uncollectible after payment or disbursement of the funds represented thereby has been made by Escrow Agent, Issuer shall immediately reimburse Escrow Agent upon receipt from Escrow Agent of written notice thereof.

Upon receipt of any Cash Investment Instrument that represents payment of an amount less than or greater than the Cash Investment, Escrow Agent's sole obligation shall be to notify Issuer and Broker, depending upon the source of the of the Cash Investment Instrument, of such fact and to return such Cash Investment Instrument to the Investor should Escrow Agent have Investor information sufficient to effect such a return or to Broker should sufficient Investor information be unavailable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All Cash Investment Instruments shall be made payable to the order of, or endorsed to the order of, "Escrow Agent / Nixplay Inc. -Escrow Account," and Escrow Agent shall Nixplay Inc not be obligated to accept, or present for payment, any Cash Investment Instrument that is not payable or endorsed in that manner.

4. <u>Disbursements of Escrow Funds.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Completion of Offering</u>. Subject to the provisions of <u>Section 10</u> hereof, Escrow Agent shall pay to Issuer the liquidated value of the Escrow Funds, by wire no later than one (1) business day following receipt of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A Minimum Offering Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subscription Accounting Spreadsheet substantiating the sale of
the Minimum Offering and maintained by the sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Instruction Letter (as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Such other certificates, notices or other documents as Escrow
Agent shall reasonably require.

Escrow Agent shall disburse the Escrow Funds by wire from the Escrow Account in accordance with joint written instructions signed by both the Issuer andBroker as to the disbursement of such funds (the "Instruction Letter") in accordance with this <u>Section 4(a).</u> Notwithstanding the foregoing, Escrow Agent shall not be obligated to disburse the Escrow Funds to Issuer if Escrow Agent has reason to believe that (a) Cash Investment Instruments in full payment for that number of Securities equal to or greater than the Minimum Offering have not been received, deposited with and collected by Escrow Agent, or (b) any of the certifications and opinions set forth in the Minimum Offering Notice are incorrect or incomplete.

After the initial disbursement of Escrow Funds to Issuer pursuant to this <u>Section 4(a),</u> Escrow Agent shall pay to Issuer any additional funds received with respect to the Securities, by wire, promptly after receipt. Additional disbursements shall be subject to the issuer providing the following documentation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subscription Accounting Spreadsheet substantiating the sale of
the Minimum Offering which shall be made available for electronic access to Issuer by Escrow Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Instruction Letter (as defined above) from Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such other certificates, notices or other documents as Escrow
Agent shall reasonably require.

*It is understood that any ACH transaction must comply with U.S. laws and NACHA rules. However, Escrow Agent shall not be responsible for any errors in the completion, accuracy, or timeliness of any transfer properly initiated by Escrow Agent in accordance with joint written instructions of Issuer and Broker occasioned by the acts or omissions of any third party financial institution or a party to the transaction, or the insufficiency or lack of availability of funds on deposit in an external account.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Rejection of Any Subscription or Termination of the Offering.</u> No later than three (3) business days after receipt by Escrow Agent of written notice (i) from Issuer that the Issuer intends to reject a Subscriber's subscription, (ii) from Issuer and/or? Broker that there will be no closing of the sale of Securities to Subscribers, (iii) from any federal or state regulatory authority that any application by Issuer to conduct a banking business has been denied, or (iv) from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least twenty (20) days, Escrow Agent shall pay to the applicable Subscriber(s), by ACH , the amount of the Cash Investment paid by each Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Expiration of Offering Period.</u> Notwithstanding anything to the contrary contained herein, if Escrow Agent shall not have received a Minimum Offering Notice on or before the Expiration Date, Escrow Agent shall, within three (3) business days after such Expiration Date and without any further instruction or direction from Broker or Issuer, return to each Subscriber, by ACH, the Cash Investment made by such Subscriber.

5. <u>Suspension of Performance or Disbursement Into Court</u>. If, at any time, (i) there shall exist any dispute between Broker, Issuer, Escrow Agent, any Subscriber or any other person with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of Escrow Agent hereunder, or (ii) if at any time Escrow Agent is unable to determine, to Escrow Agent's reasonable satisfaction, the proper disposition of all or any portion of the Escrow Funds or Escrow Agent's proper actions with respect to its obligations hereunder, or (iii) if Broker and Issuer have not within 30 days of the furnishing by Escrow Agent of a notice of resignation pursuant to <u>Section 7</u> hereof appointed a successor Escrow Agent to act hereunder, then Escrow Agent may, in its reasonable discretion, take either or both of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. suspend the performance of any of its obligations (including without limitation any disbursement obligations) under this Escrow Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent shall have been appointed (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. petition (by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient to Escrow Agent, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by law, pay into such court all funds held by it in the Escrow Funds for holding and disposition in accordance with the instructions of such court.

Escrow Agent shall have no liability to Broker, Issuer, any Subscriber or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of the Escrow Funds or any delay in or with respect to any other action required or requested of Escrow Agent.

6. <u>Investment of Funds.</u> Escrow Agent will not commingle Escrow Funds received by it in escrow with funds of others and shall not invest such Escrow Funds. The Escrow Funds will be held in a non-interest bearing account.

7. <u>Resignation of Escrow Agent.</u> Escrow Agent may resign and be discharged from the performance of its duties hereunder at any time by giving fifteen (15) business days prior written notice to the Broker and the Issuer specifying a date when such resignation shall take effect. Upon any such notice of resignation, the Broker and Issuer jointly shall appoint a successor Escrow Agent hereunder prior to the effective date of such resignation. The retiring Escrow Agent shall transmit all records pertaining to the Escrow Funds and shall pay all Escrow Funds to the successor Escrow Agent, after making copies of such records as the retiring Escrow Agent deems advisable. After any retiring Escrow Agent's resignation, the provisions of this Escrow Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Escrow Agent under this Escrow Agreement. Any corporation or association into which Escrow Agent may be merged or converted or with which it may be consolidated shall be the Escrow Agent under this Escrow Agreement without further act.

8. <u>Liability of Escrow Agent.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied. Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Escrow Agreement, including without limitation the Offering Document. Escrow Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that Escrow Agent's gross negligence or willful misconduct was the primary cause of any loss to the Issuer, Broker or any Subscriber. Escrow Agent's sole responsibility shall be for the safekeeping and disbursement of the Escrow Funds in accordance with the terms of this Escrow Agreement. Escrow Agent shall have no implied duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein. Escrow Agent may rely upon any notice, instruction, request or other instrument, not only as to its due execution, validity and effectiveness, but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall believe to be genuine and to have been signed or presented by the person or parties purporting to sign the same. In no event shall Escrow Agent be liable for incidental, indirect, special, consequential or punitive damages (including, but not limited to lost profits), even if Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. Escrow Agent shall not be obligated to take any legal action or commence any proceeding in connection with the Escrow Funds, any account in which Escrow Funds are deposited, this Escrow Agreement or the Offering Document, or to appear in, prosecute or defend any such legal action or proceeding. Without limiting the generality of the foregoing, Escrow Agent shall not be responsible for or required to enforce any of the terms or conditions of any subscription agreement with any Subscriber or any other agreement between Issuer, Broker and/or any Subscriber. Escrow Agent shall not be responsible or liable in any manner for the performance by Issuer or any Subscriber of their respective obligations under any subscription agreement nor shall Escrow Agent be responsible or liable in any manner for the failure of Issuer, Broker or any third party (including any Subscriber) to honor any of the provisions of this Escrow Agreement. Escrow Agent may consult legal counsel selected by it in the event of any dispute or question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute involving any party hereto, and shall incur no liability and shall be fully indemnified from any reasonable liability whatsoever in acting in accordance with the reasonable opinion or instruction of such counsel. Issuer shall promptly pay, upon demand, the reasonable fees and expenses of any such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Escrow Agent is authorized, in its sole discretion, to comply with orders issued or process entered by any court with respect to the Escrow Funds, without determination by Escrow Agent of such court's jurisdiction in the matter. If any portion of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, Escrow Agent is authorized, in its reasonable discretion, to rely upon and comply with any such order, writ, judgment or decree which it is advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if Escrow Agent complies with any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated. Notwithstanding the foregoing, Escrow Agent shall provide the Issuer and Broker with immediate notice of any such court order or similar demand and the opportunity to interpose an objection or obtain a protective order.

9. <u>Indemnification of Escrow Agent.</u> From and at all times after the date of this Escrow Agreement, Issuer shall, to the fullest extent permitted by law, defend, indemnify and hold harmless Escrow Agent and each director, officer, employee, attorney, agent and affiliate of Escrow Agent (collectively, the "Indemnified Parties") against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys' fees, costs and expenses) incurred by or asserted against any of the Indemnified Parties from and after the date hereof, whether direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any person, including without limitation Issuer, Broker whether threatened or initiated, asserting a claim for any legal or equitable remedy against any person under any statute or regulation, including, but not limited to, any federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with the negotiation, preparation, execution, performance or failure of performance of this Escrow Agreement or any transactions contemplated herein, whether or not any such Indemnified Party is a party to any such action, proceeding, suit or the target of any such inquiry or investigation; provided, however, that no Indemnified Party shall have the right to be indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party shall, in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees of such counsel shall be paid upon demand by the Issuer. The obligations of Issuer under this <u>Section 9</u> shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.

10. <u>Compensation to Escrow Agent.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Fees and Expenses.</u> Issuer shall compensate Escrow Agent for its services hereunder in accordance with <u>Exhibit A</u> attached hereto and, in addition, shall reimburse Escrow Agent for all of its reasonable pre-approved out-of-pocket expenses, including attorneys' fees, travel expenses, telephone and facsimile transmission costs, postage (including express mail and overnight delivery charges), copying charges and the like. The additional provisions and information set forth on <u>Exhibit A</u> are hereby incorporated by this reference, and form a part of this Escrow Agreement. All of the compensation and reimbursement obligations set forth in this <u>Section 10</u> shall be payable by Issuer upon demand by Escrow Agent. The obligations of Issuer under this <u>Section 10</u> shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Disbursements from Escrow Funds to Pay Escrow Agent.</u> Escrow Agent is authorized to and may disburse from time to time, to itself or to Broker or to any Indemnified Party from the Escrow Funds (but only to the extent of Issuer's rights thereto), the amount of any compensation and reimbursement of out-of-pocket expenses due and payable hereunder (including any amount to which Escrow Agent or any Indemnified Party is entitled to seek indemnification pursuant to <u>Section 9</u> hereof). Escrow Agent shall notify Issuer of any disbursement from the Escrow Funds to itself or to any Indemnified Party in respect of any compensation or reimbursement hereunder and shall furnish to Issuer copies of all related invoices and other statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Security and Offset</u>. Issuer hereby grants to Escrow Agent and Broker and the Indemnified Parties a security interest in and lien upon the Escrow Funds (to the extent of Issuer's rights thereto) to secure all obligations hereunder, and Escrow Agent and the Indemnified Parties shall have the right to offset the amount of any compensation or reimbursement due any of them hereunder (including any claim for indemnification pursuant to <u>Section 9</u> hereof) against the Escrow Funds (to the extent of Issuer's rights thereto.) If for any reason the Escrow Funds available to Escrow Agent and the Indemnified Parties pursuant to such security interest or right of offset are insufficient to cover such compensation and reimbursement, Issuer shall promptly pay such amounts to Escrow Agent and the Indemnified Parties upon receipt of an itemized invoice.

11. <u>Representations and Warranties.</u>

a. Each of Broker and Issuer respectively makes the following representations and warranties to Escrow Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) It is a corporation or limited liability company duly organized, validly existing, and in good standing under the laws of the state of its incorporation or organization, and has full power and authority to execute and deliver this Escrow Agreement and to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) This Escrow Agreement has been duly approved by all necessary corporate action, including any necessary shareholder or membership approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement, enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The execution, delivery, and performance of this Escrow Agreement will not violate, conflict with, or cause a default under its articles of incorporation, articles of organization or bylaws, operating agreement or other organizational documents, as applicable, any applicable law or regulation, any court order or administrative ruling or decree to which it is a party or any of its property is subject, or any agreement, contract, indenture, or other binding arrangement to which it is a party or any of its property is subject. The execution, delivery and performance of this Escrow Agreement is consistent with and accurately described in the Offering Document as set forth in <u>Sections 4(b)</u> and <u>4(c)</u> hereof, has been properly described therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) It hereby acknowledges that the status of Escrow Agent is that of agent only for the limited purposes set forth herein, and hereby represents and covenants that no representation or implication shall be made that Escrow Agent has investigated the desirability or advisability of investment in the Securities or has approved, endorsed or passed upon the merits of the investment therein and that the name of Escrow Agent has not and shall not be used in any manner in connection with the offer or sale of the Securities other than to state that Escrow Agent has agreed to serve as Escrow Agent for the limited purposes set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) All of its representations and warranties contained herein are true and complete as of the date hereof and will be true and complete at the time of any deposit to or disbursement from the Escrow Funds.

b. Issuer further represents and warrants to Escrow Agent that no party other than the parties hereto and the prospective Subscribers have, or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof. No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or generally) the Escrow Funds or any part thereof.

c. Broker further represent and warrant to Escrow Agent that the deposit with Escrow Agent by Escrow Agent of Cash Investment Instruments pursuant to <u>Section 3</u> hereof shall be deemed a representation and warranty by Escrow Agent that such Cash Investment Instrument represents a bona fide sale to the Subscriber described therein of the amount of Securities set forth therein, subject to and in accordance with the terms of the Offering Document.

12. <u>Identifying Information</u>. Issuer and Broker acknowledge that a portion of the identifying information set forth on <u>Exhibit A</u> is being requested by Escrow Agent in connection with the USA Patriot Act, Pub.L.107-56 (the "Act"). To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust, or other legal entity, Escrow Agent will ask for documentation to verify such person or entity's formation and existence as a legal entity. Escrow Agent may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.

13. <u>Compliance with Privacy Laws</u>. Escrow Agent represents and warrants that its collection, access, use, storage, disposal and disclosure of Personal Data does and will comply with all applicable federal and state privacy and data protection laws, as well as all other applicable regulations. Without limiting the foregoing, Escrow Agent shall implement administrative, physical and technical safeguards to protect Personal Data that are no less rigorous than accepted industry, and shall ensure that all such safeguards, including the manner in which Personal Data is collected, accessed, used, stored, processed, disposed of and disclosed, comply with applicable data protection and privacy laws, as well as the terms and conditions of this Escrow Agreement. Escrow Agent shall use and disclose Personal Data solely and exclusively for the purposes for which the Personal Data, or access to it, is provided pursuant to the terms and conditions of this Escrow Agreement, and not use, sell, rent, transfer, distribute, or otherwise disclose or make available Personal Data for Escrow Agent's own purposes or for the benefit of any party other than Issuer. For purposes of this section, "Personal Data" shall mean information provided to Escrow Agent by or at the direction of the Issuer, or to which access was provided to Escrow Agent by or at the direction of the Issuer, in the course of Escrow Agent's performance under this Escrow Agreement that: (i) identifies or can be used to identify an individual (also known as a "data subject") (including, without limitation, names, signatures, addresses, telephone numbers, e-mail addresses and other unique identifiers); or (ii) can be used to authenticate an individual (including, without limitation, employee identification numbers, government-issued identification numbers, passwords or PINs, financial account numbers, credit report information, biometric or health data, answers to security questions and other personal identifiers), including the identifying information on individuals described in Section 12.

13. <u>Consent to Jurisdiction and Venue.</u> In the event that any party hereto commences a lawsuit or other proceeding relating to or arising from this Escrow Agreement, the parties hereto agree that the United States District Court for the State of Delaware shall have the sole and exclusive jurisdiction over any such proceeding. If such court lacks federal subject matter jurisdiction, the parties agree that the Circuit Court in and for State of Delaware shall have sole and exclusive jurisdiction. Any of these courts shall be proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection to such venue. The parties hereto consent to and agree to submit to the jurisdiction of any of the courts specified herein and agree to accept service of process to vest personal jurisdiction over them in any of these courts.

14. <u>Notice.</u> All notices, approvals, consents, requests, and other communications hereunder shall be in writing and shall be deemed to have been given when the writing is delivered if given or delivered by hand, overnight delivery service or facsimile transmitter (with confirmed receipt) to the address or facsimile number set forth on <u>Exhibit A</u> hereto, or to such other address as each party may designate for itself by like notice, and shall be deemed to have been given on the date deposited in the mail, if mailed, by first-class, registered or certified mail, postage prepaid, addressed as set forth on <u>Exhibit A</u> hereto, or to such other address as each party may designate for itself by like notice.

15. <u>Amendment or Waiver.</u> This Escrow Agreement may be changed, waived, discharged or terminated only by a writing signed by Broker, Issuer and Escrow Agent. No delay or omission by any party in exercising any right with respect hereto shall operate as a waiver. A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.

16. <u>Severability</u>. To the extent any provision of this Escrow Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Escrow Agreement.

17. <u>Governing Law.</u> This Escrow Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without giving effect to the conflict of laws principles thereof.

18. <u>Entire Agreement.</u> This Escrow Agreement constitutes the entire agreement between the parties relating to the acceptance, collection, holding, investment and disbursement of the Escrow Funds and sets forth in their entirety the obligations and duties of Escrow Agent with respect to the Escrow Funds.

19. <u>Binding Effect</u>. All of the terms of this Escrow Agreement, as amended from time to time, shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of Broker, Issuer and Escrow Agent.

20. <u>Execution in Counterparts.</u> This Escrow Agreement may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement.

21. <u>Termination</u>. Upon the first to occur of the disbursement of all amounts in the Escrow Funds or deposit of all amounts in the Escrow Funds into court pursuant to <u>Section 5</u> or <u>Section 8</u> hereof, this Escrow Agreement shall terminate and Escrow Agent shall have no further obligation or liability whatsoever with respect to this Escrow Agreement or the Escrow Funds.

**THIS SPACE INTENTIONALLY LEFT BLANK**

22. <u>Dealings</u>. Escrow Agent and any stockholder, director, officer or employee of Escrow Agent may buy, sell, and deal in any of the securities of the Issuer and become pecuniary interested in any transaction in which the Issuer may be interested, and contract and lend money to the Issuer and otherwise act as fully and freely as though it were not Escrow Agent under this Escrow Agreement. Nothing herein shall preclude Escrow Agent from acting in any other capacity for the Issuer or any other entity.

IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed under seal as of the date first above written.

---

| |
|:---|
| ISSUER: |
| By: <u>/s/ Joel Durbridge</u> |
| Printed Name: Joel Durbridge |
| Title: COO Nixplay Inc. |
| Broker: |
| StartEngine Primary LLC |
| By: <u>/s/ Josh Amster</u> |
| Name: Josh Amster |
| Title: SVP, Fundraising |
| Escrow Agent: |
| By: <u>/s/ Matthew Drake</u> |
| Name: Matthew Drake |
| Title: Trust Officer |

---

**<u>EXHIBIT A</u>**

**<u>Escrow Agent Fees.</u>**

**<u>Escrow Administration Fee: $100.00 for each break letter after the first four</u>**

**<u>$750.00 per year escrow account fee. First year non-refundable.</u>**

**<u>EXHIBIT B</u>**

Transmittal of Funds for Deposit Into the Escrow Account

The Selected Dealer agrees that it is bound by the terms of the Escrow Agreement executed by Escrow Agent. ACH transfers, wire transfers and credit cards are the acceptable methods of payment for this offering. ACH and transfers should be sent directly to the Escrow Agent by the Broker via daily batch ACH.

The delivery instructions are as follows: ACH/Wire instructions:

**Bank Name** Bryn Mawr Trust Company

**Address** 801 Lancaster Ave, Bryn Mawr PA 19010

**Routing Number** xxxxxxxx

**Account Number** xxxxxxxx

**Account Name** xxxxxxx

**Further Instructions** StartEngine – Deal Name

## Ex1A-11

**Exhibit 11**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation in this Offering Statement on Form 1-A of our report dated September 28, 2022, relating to the financial statements of Nixplay Inc. as of December 31, 2021 and 2020, and to all references to our firm included in this Registration Statement.

/s/ BF Borgers CPA PC

Certified Public Accountants

Lakewood, CO

February 10, 2023

## Ex1A-12

**Exhibit 12**

![](a1.jpg)

CrowdCheck Law, LLP

700 12th Street, Suite 700

Washington DC 20005

February 10, 2023

Nixplay Inc.

12301 Whitewater Dr., Suite 115

Minnetonka, MN 55343-3932

To the Board of Directors:

We are acting as counsel to Nixplay, Inc. (the "Company") with respect to the preparation and filing of an offering statement on Form 1-A. The offering statement covers the contemplated issuance of up to 2,707,183 shares of the Company's Common Stock, par value $0.0001 per share (the "Common Stock"), comprised of up to 2,461,075 shares for purchase by investors and up to 246,108 shares to be issued a "Bonus Shares" as defined in the Company's offering statement.

In connection with the opinion contained herein, we have examined the offering statement, the certificate of incorporation of the Company and the amendment and restatement thereto approved by the Board of Directors and the Company's stockholders, the bylaws, the minutes of meetings of the Company's Board of Directors, as well as all other documents necessary to render an opinion. In our examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such copies.

We are opining herein as to the effect on the subject transactions only of the laws of the State of Delaware, and we express no opinion with respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction, including federal law.

Based upon the foregoing, we are of the opinion that the Common Stock being sold pursuant to the offering statement will be duly authorized and will be, when issued in the manner described in the offering statement, legally and validly issued, fully paid and non-assessable.

No opinion is being rendered hereby with respect to the truth and accuracy, or completeness of the offering statement or any portion thereof.

We further consent to the filing of this opinion as an exhibit to the offering statement.

Yours truly,

*<u>/s/ CrowdCheck Law LLP</u>*

CrowdCheck Law LLP

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Nixplay, Inc.

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2022

**CIK:** 0001946957

**I.R.S. Employer Identification Number:** 88-2803019

**Primary Standard Industrial Classification Code:** 5961

**Total number of full-time employees:** 0

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 12301 Whitewater Dr Ste 115, —, Minnetonka, MN 55343-3932

**Company Phone:** 213-407-8763

**Person to contact:** Jeanne Campanelli

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount       |
|:---|:---|
| Cash and Cash Equivalents                | $2552855.00  |
| Investment Securities                    | $0.00        |
| Accounts and Notes Receivable            | $7028628.00  |
| Property, Plant and Equipment (PP&E)     | $171463.00   |
| Total Assets                             | $24948448.00 |
| Accounts Payable and Accrued Liabilities | $8033468.00  |
| Long-Term Debt                           | $0.00        |
| Total Liabilities                        | $20566797.00 |
| Total Stockholders' Equity               | $4381651.00  |
| Total Liabilities and Equity             | $24948448.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $9025516.00  |
| Costs and Expenses Applicable to Revenues | $6248538.00  |
| Depreciation and Amortization             | $191590.00   |
| Net Income                                | $-4819065.00 |
| Earnings Per Share - Basic                | -0.89        |
| Earnings Per Share - Diluted              | -0.89        |

**Auditor Information**

| Metric          | Amount   |
|:---|:---|
| Name of Auditor |  |

### Outstanding Securities

| Class        |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Common Stock |       4000000 | 000000N/A | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** Yes

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 2707183      |
| Number of securities outstanding                                | 4000000      |
| Price per security                                              | $6.09        |
| Issuer's aggregate offering price                               | $15000006.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $15000006.00 |

**Anticipated Fees**

| Service Provider   | Name               | Fees       |
|:---|:---|:---|
| Auditor            | BF Borgers CPA PC  | $165000.00 |
| Legal              | CrowdCheck Law LLP | $70000.00  |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $14165006.00

### Item 5. Jurisdictions in Which Securities are to be Offered

AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC, PR

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Nixplay, Inc.

**Title of Securities Issued:** Common Stock

**Total Amount of Securities Issued:** 4000000

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $6,733,381

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Section 4(a)(2) of the Securities Act.