# EDGAR Filing Document

**Accession Number:** 0001725882
**File Stem:** 0001213900-26-060125
**Filing Date:** 2026-5
**Character Count:** 1140834
**Document Hash:** b7ba4d8405158a37ef5974ba130e7c52
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-060125.hdr.sgml**: 20260521

**ACCESSION NUMBER**: 0001213900-26-060125

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 114

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260521

**DATE AS OF CHANGE**: 20260521

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INX Ltd
- **CENTRAL INDEX KEY:** 0001725882
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** J1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56429
- **FILM NUMBER:** 261009590

**BUSINESS ADDRESS:**
- **STREET 1:** 57/63 LINE WALL ROAD
- **CITY:** GIBRALTAR
- **STATE:** J1
- **ZIP:** GX111AA
- **BUSINESS PHONE:** 350 200 20086

**MAIL ADDRESS:**
- **STREET 1:** 57/63 LINE WALL ROAD
- **CITY:** GIBRALTAR
- **STATE:** J1
- **ZIP:** GX111AA

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 20-F**

**☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025**

**OR**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**OR**

**☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File No.: 333-233363**

**INX LIMITED**

*(Exact name of registrant as specified in its charter)*

 

**Not Applicable**

(*Translation of Registrant's name into English*)

**Gibraltar**

(*Jurisdiction of incorporation or organization*)

**57/63 Line Wall Road**

**Gibraltar, GX11 1AA**

(*Address of principal executive offices*)

**Vladislav Uchenik**

**57/63 Line Wall Road**

**Gibraltar, GX11 1AA**

**legal@republic.com**

**212-401-6930**

(*Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person*)

Securities registered or to be registered pursuant to Section 12(b) of the Act: **None**

Securities registered or to be registered pursuant to Section 12(g) of the Act: **None**

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: INX Tokens

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of December 31, 2025: 47,635,875 ordinary shares of GBP 0.001 par value

Indicate by check mark whether Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "accelerated filer", "large accelerated filer", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Emerging growth company ☒

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the Registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ Other ☐

If "Other" has been check in response to the previous question, by check mark which financial statement item Registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

**TABLE OF CONTENTS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| [PART I](#a_001) | [PART I](#a_001) | [PART I](#a_001) | [PART I](#a_001) | 1 |
|  | ITEM 1. |  | [IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS.](#a_002) | 1 |
|  | ITEM 2. |  | [OFFER STATISTICS AND EXPECTED TIMETABLE.](#a_003) | 1 |
|  | ITEM 3. |  | [KEY INFORMATION.](#a_004) | 1 |
|  |  | A. | [\[RESERVED\].](#a_005) | 1 |
|  |  | B. | [Capitalization and Indebtedness.](#a_006) | 1 |
|  |  | C. | [Reasons for the Offer and Use of Proceeds.](#a_007) | 1 |
|  |  | D. | [Risk Factors.](#a_008) | 1 |
|  | ITEM 4. |  | [INFORMATION ON THE COMPANY.](#a_009) | 48 |
|  |  | A. | [History and Development of the Company.](#a_010) | 48 |
|  |  | B. | [Business Overview.](#a_011) | 52 |
|  |  | C. | [Organizational Structure.](#a_012) | 78 |
|  |  | D. | [Property, Plants and Equipment.](#a_013) | 79 |
|  | ITEM 5. |  | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS.](#a_014) | 80 |
|  |  | A. | [Operating Results.](#a_015) | 80 |
|  |  | B. | [Liquidity and Capital Resources.](#a_016) | 90 |
|  |  | C. | [Research and Development.](#a_017) | 92 |
|  |  | D. | [Trend Information.](#a_018) | 92 |
|  |  | E. | [Critical Accounting Estimates.](#a_019) | 92 |
|  | ITEM 6. |  | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES.](#a_072) | 94 |
|  |  | A. | [Directors and Senior Management.](#a_077) | 94 |
|  |  | B. | [Compensation.](#a_073) | 96 |
|  |  | C. | [Board Practices.](#a_074) | 100 |
|  |  | D. | [Employees.](#a_075) | 110 |
|  |  | E. | [Share Ownership.](#a_076) | 111 |
|  |  | F. | [Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation](#a_020) | 112 |
|  | ITEM 7. |  | [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS.](#a_021) | 113 |
|  |  | A. | [Major Shareholders.](#a_022) | 113 |
|  |  | B. | [Related Party Transactions.](#a_023) | 114 |
|  |  | C. | [Interests of Experts and Counsel.](#a_024) | 115 |
|  | ITEM 8. |  | [FINANCIAL INFORMATION.](#a_025) | 115 |
|  |  | A. | [Consolidated Statements and Other Financial Information.](#a_026) | 115 |
|  |  | B. | [Significant Changes.](#a_027) | 115 |
|  | ITEM 9. |  | [THE OFFER AND LISTING.](#a_028) | 115 |
|  |  | A. | [Offer and Listing Details.](#a_029) | 115 |
|  |  | B. | [Plan of Distribution.](#a_030) | 115 |
|  |  | C. | [Markets.](#a_031) | 116 |
|  |  | D. | [Selling Shareholders.](#a_032) | 116 |
|  |  | E. | [Dilution.](#a_033) | 116 |
|  |  | F. | [Expenses of the Issue.](#a_034) | 116 |

---

i

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ITEM 10. |  | [ADDITIONAL INFORMATION.](#a_035) | 116 |
|  |  | A. | [Share Capital.](#a_036) | 116 |
|  |  | B. | [Memorandum and Articles of Association.](#a_037) | 116 |
|  |  | C. | [Material Contracts.](#a_038) | 116 |
|  |  | D. | [Exchange Controls.](#a_039) | 117 |
|  |  | E. | [Taxation.](#a_040) | 118 |
|  |  | F. | [Dividends and Paying Agents.](#a_041) | 120 |
|  |  | G. | [Statement by Experts.](#a_042) | 120 |
|  |  | H. | [Documents on Display.](#a_043) | 120 |
|  |  | I. | [Subsidiary Information.](#a_044) | 120 |
|  |  | J. | [Annual Report to Security Holders.](#a_045) | 120 |
|  | ITEM 11. |  | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.](#a_046) | 121 |
|  | ITEM 12. |  | [DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES.](#a_047) | 121 |
|  |  | A. | [Debt Securities.](#a_048) | 121 |
|  |  | B. | [Warrants and Rights.](#a_049) | 121 |
|  |  | C. | [Other Securities.](#a_050) | 121 |
|  |  | D. | [American Depositary Shares.](#a_051) | 121 |
| [PART II](#a_052) | [PART II](#a_052) | [PART II](#a_052) | [PART II](#a_052) | 122 |
|  | ITEM 13. |  | [DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES.](#a_053) | 122 |
|  | ITEM 14. |  | [MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS.](#a_054) | 122 |
|  | ITEM 15. |  | [CONTROLS AND PROCEDURES.](#a_055) | 122 |
|  | ITEM 16. |  | [\[RESERVED\]](#a_056) | 123 |
|  | ITEM 16. | A. | [AUDIT COMMITTEE FINANCIAL EXPERT.](#a_057) | 123 |
|  | ITEM 16. | B. | [CODE OF ETHICS.](#a_058) | 123 |
|  | ITEM 16. | C. | [PRINCIPAL ACCOUNTANT FEES AND SERVICES.](#a_059) | 123 |
|  | ITEM 16. | D. | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.](#a_060) | 123 |
|  | ITEM 16. | E. | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.](#a_061) | 123 |
|  | ITEM 16. | F. | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT.](#a_062) | 123 |
|  | ITEM 16. | G. | [CORPORATE GOVERNANCE.](#a_063) | 124 |
|  | ITEM 16. | H. | [MINE SAFETY DISCLOSURE.](#a_064) | 124 |
|  | ITEM 16. | I | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#a_065) | 124 |
|  | ITEM 16. | J | [INSIDER TRADING POLICIES](#a_066) | 124 |
|  | ITEM 16. | K | [CYBERSECURITY](#a_067) | 124 |
| [PART III](#a_068) | [PART III](#a_068) | [PART III](#a_068) | [PART III](#a_068) | 125 |
|  | ITEM 17. |  | [FINANCIAL STATEMENTS.](#a_069) | 125 |
|  | ITEM 18. |  | [FINANCIAL STATEMENTS.](#a_070) | 125 |
|  | ITEM 19. |  | [EXHIBITS.](#a_071) | 125 |

---

ii

**GENERAL INFORMATION**

Unless indicated otherwise by the context, all references in this report to *"INX Limited",* the *"Company", "our Company", "we", "us", "our"* or the "*Registrant*" are to INX Limited and its subsidiaries.

**EMERGING GROWTH COMPANY**

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable to public companies that are not emerging growth companies. For example, we have elected to rely on the following exemptions:

● an exemption from complying with any requirement that may be adopted by the Public Company Accounting Oversight Board, or the PCAOB, regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis); and

● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002;

We may take advantage of the exemptions available for emerging growth companies for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual revenue, have more than $700 million in market value of the ordinary shares held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period. We may choose to take advantage of some, but not all of these reduced burdens.

It should be noted that the JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We are choosing to "opt out" of this provision and, as a result, we will comply with new or revised accounting standards as required when they are adopted. This decision to opt out of the extended transition period is irrevocable.

**PRESENTATION OF FINANCIAL INFORMATION**

We have included in this report our audited consolidated financial statements as of December 31, 2025. Our consolidated financial statements appearing in this report are prepared in U.S. Dollars and in accordance with International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or IASB, and are audited in accordance with the standards of the PCAOB.

**MARKET, INDUSTRY AND OTHER DATA**

This report includes market and industry data and forecasts that were obtained from third-party sources, industry publications and publicly available information as well as industry data prepared by management on the basis of its knowledge of the industry in which INX operates (including management's estimates and assumptions relating to the industry based on that knowledge). Management's knowledge of the blockchain industry has been developed through its experience and participation in the industry. Management believes that its industry data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness of this data. Third-party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such information. Although management believes it to be reliable, INX has neither independently verified any of the data from management or third-party sources referred to in this report, nor analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying economic assumptions relied upon by such sources. In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Item 3.D "Risk Factors" below.

Statements made in this report concerning the contents of any contract, agreement or other document are summaries of such contracts, agreements or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to this report, you may read the document itself for a complete description of its terms, and the summary included herein is qualified by reference to the full text of the document which is incorporated by reference into this report.

iii

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Some of the statements contained in this annual report with respect to our business, financial condition and results of operations are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended, and other federal securities laws. All statements other than statements of historical fact are forward-looking statements. The use of the words "anticipate", "believe", "continue", "could", "estimate", "expect", "intends", "may", "might", "plan", "possible", "potential", "predict", "project", "should", "would", and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not a forward-looking statement. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated or implied in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this annual report should not be unduly relied upon. Any forward-looking statements are qualified in their entirety by reference to the risk factors discussed throughout this annual report. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include but are not limited to:

● our ability to successfully integrate INX into the Republic business and realize the revenue, profitability, operational, product, commercial and other synergies and benefits;

● our ability to continue to develop our trading platforms as contemplated;

● the slowing or stopping of the development or acceptance of blockchain assets;

● the limitations of blockchain technology, which remains largely novel and untested;

● the legal framework of regulations applicable to blockchain technologies, cryptocurrencies, security tokens and token offerings;

● changes in how we are taxed;

● the lack of robust marketplaces and secondary trading for blockchain assets;

**●** whether the INX Tokens will be listed on, or admitted for trading on, any trading platform;

● our lack of a long operating history;

● the impact of competition and new technologies;

● our ability to obtain government regulations and approvals;

● industry developments affecting our business, financial condition and results of operations;

● our ability to cooperate with third party collaborators, including contractors for the design, development and implementation of our trading platform infrastructure;

● our operating performance and cash flow, or lack thereof;

● global market, political, and economic conditions; and

● those factors referred to in "Risk Factors," "Business," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as in this report generally.

These statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance, or achievements to be materially different from those anticipated by the forward-looking statements. We discuss many of these risks in this report in greater detail under the heading "Risk Factors" and elsewhere in this report. You should not rely upon forward-looking statements as predictions of future events.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this report.

The foregoing list sets forth some, but not all, of the factors that could affect our ability to achieve results described in any forward-looking statements. You should read this annual report and the documents that we reference herein and have filed as exhibits to the annual report completely and with the understanding that our actual future results may be materially different from what we expect. You should assume that the information appearing in this annual report is accurate as of the date hereof. Because the risk factors referred to in Item 3.D. "Risk Factors" of this annual report, could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of the information presented in this annual report, and particularly our forward-looking statements, by these cautionary statements.

iv

**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**A. [RESERVED].**

**B. Capitalization and Indebtedness.**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds.**

Not applicable.

**D. Risk Factors.**

You should carefully consider the risks described below, together with all of the other information in this Annual Report on Form 20-F. The risks and uncertainties described below are those significant risk factors, currently known and specific to us, that we believe are relevant to an investment in our securities. Additional risks and uncertainties not currently known to us or that we now deem immaterial may also harm us. If any of these risks materialize our business, results of operations or financial condition could suffer, and the price of our ordinary shares could decline substantially.

Investing in INX Tokens involves a high degree of risk. Our businesses face significant risks and uncertainties. You should carefully consider the risks we describe below, along with all of the other information set forth in this annual report, including the section entitled "Cautionary Note Regarding Forward-Looking Statements" and our financial statements and the related notes beginning on page F-1, before deciding to purchase INX Tokens. The risks and uncertainties described below are those significant risk factors, currently known and specific to us, that we believe are relevant to initiating or maintaining an investment in any INX Tokens. If any of these risks materialize, our business, results of operations or financial condition could suffer, the price of INX Tokens could decline substantially and you could lose part or all of your investment. Additional risks and uncertainties not currently known to us or that we now deem immaterial may also harm us and adversely affect your investment in INX Tokens.

You may lose all monies that you spend initiating or maintaining an investment in INX Tokens. If you are uncertain as to our business and operations or you are not prepared to lose all monies that you spend purchasing INX Tokens or investing in the Company, we strongly urge you not to purchase any INX Tokens nor invest in the Company. We recommend you consult legal, financial, tax and other professional advisors or experts for further guidance before participating in the offering of our INX Token as further detailed in this report.

We do not recommend that you purchase INX Tokens unless you have prior experience with cryptographic tokens, blockchain-based software and distributed ledger technology and unless you have received independent professional advice.

**Summary Risk Factors**

Our business is subject to numerous risks, as more fully described in the section titled "Risk Factors" immediately following this summary. You should read and carefully consider these risks and all of the other information in this report, including the financial statements and the related notes included elsewhere in this report, before deciding whether to invest in INX Tokens. In particular, such risks include, but are not limited to, the following:

● We may not be able to successfully integrate INX into the Republic business and achieve the expected revenue, profitability, operational, product, commercial and other synergies and benefits.

● We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.

● There is substantial doubt about whether the Company can continue as a going concern.

● We may face cyber-attacks and other cyber security risks.

● We face the risk of operating as an unregistered exchange, unregistered broker-dealer or unregistered clearing agency in the U.S.

● The crypto market was negatively impacted by the growth in crypto-related frauds, layoffs, and the ongoing liquidity crisis that led to bankruptcies by leading crypto companies.

● We may not be able to continue development of the INX Digital, Inc. ("INXD") and INX Securities, LLC ("INXS") trading platforms as contemplated, or at all, or continue to receive the regulatory approvals necessary to operate our business as currently contemplated.

● There may not be any marketplace or secondary trading for the INX Token or other digital assets related to our business.

● Blockchain networks represent a new and rapidly changing industry and there remains relatively limited use of blockchain networks and assets.

● The prospect of INX Token holders receiving any distributions of our cumulative Adjusted Operating Cash Flow is highly uncertain.

● Blockchain technology is an emerging technology that is novel and untested.

● The legal framework of regulations applicable to blockchain technologies, cryptocurrencies, security tokens and token offerings is uncertain and evolving quickly.

● Tax authorities may disagree with our tax positions with regard to the Company, its business and the INX Token and may ask us to revise these positions in a manner that could adversely affect you or the Company.

● The prices of blockchain assets are extremely volatile and fluctuations in the price of blockchain assets could materially affect our profits.

● The price of INX Tokens is subject to substantial volatility.

● The market for trading blockchain assets is still in the early stages of development and we face intense competition from both regulated and unregulated blockchain asset trading platforms.

● We may not be able to prevent illegal activity from occurring over our platform, which could subject us to disciplinary action, including fines.

● Our securities business and related clearing operations expose us to material default and liquidity risk.

● Systems failures or capacity constraints could materially harm our ability to conduct our operations and execute our business strategy.

● Blockchain assets and blockchain trading platforms remain susceptible to security breaches and cybercrime and the INX Token, the Company or our trading platforms may be a target of cyber security breaches or theft.

● Company private keys that allow the unilateral transfer or "freezing" of INX Tokens may be compromised.

● The tax characterization of INX Tokens is uncertain and you must seek your own tax advice in connection with purchasing INX Tokens.

**Risks Related to the Strategic Transaction with Republic and the Integration of Our Business**

***Our future success depends on our ability to successfully integrate our business with OpenDeal Inc. (d/b/a Republic) ("Republic"), and failure to do so could materially adversely affect our business, financial condition, and results of operations.***

 ****

Following the strategic transaction with OpenDeal Inc. (d/b/a Republic) ("Republic"), pursuant to which Republic, through its wholly-owned subsidiary, acquired all of our issued and outstanding common shares, other than those Shares already owned by Republic, our future success depends significantly on the successful integration of our business, technology, and operations into the broader Republic ecosystem. This integration is a complex, costly, and time-consuming process that involves significant challenges and risks. We may experience difficulties integrating our trading platforms, blockchain infrastructure, and the INX.One ecosystem with Republic's existing investment platforms, wallet technologies, and backend systems. Technical incompatibilities or implementation failures could lead to service interruptions, security vulnerabilities, or a degraded user experience for our customers.

Integration efforts may divert significant management time and resources away from our day-to-day operations and other strategic initiatives, which could adversely affect our ongoing business performance. In addition, we may encounter challenges in assimilating employees and aligning the corporate cultures of two distinct organizations, which could result in the loss of key personnel, reduced employee morale, or decreased productivity.

We may not realize expected operational efficiencies from the integration, including anticipated cost savings from shared services, compliance frameworks, technology infrastructure, or marketing operations. If we are unable to eliminate redundant costs or streamline operations as anticipated, our operating expenses may remain higher than projected. We may also fail to achieve anticipated revenue synergies, including cross-selling Republic's primary investment offerings to INX's secondary market traders or migrating Republic's user base to the INX platform. Regulatory constraints, technical limitations, or lower-than-expected user adoption could limit the effectiveness of these initiatives.

In addition, we may identify previously undisclosed liabilities, operational weaknesses, or other issues in the combined business that were not identified during due diligence and that could require additional time, expense, or remediation efforts. If we are unable to successfully integrate our operations with Republic in a timely and effective manner, we may not realize the anticipated benefits of the transaction, and any failure to achieve these expected synergies could have a material adverse effect on our business, financial condition, and results of operations.

**Risks Related to Our Financial Position and Need for Additional Capital**

***There is substantial doubt about whether the Company can continue as a going concern.***

The audit opinion and notes that accompany the Company's Financial Statements disclose a going concern qualification to its ability to continue in business. The accompanying Financial Statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses in each year since its inception resulting in an accumulated deficit of $80.2 million as of December 31, 2025, and further losses are anticipated in the development of its business.

The Company currently lacks sufficient recurring sources of revenue and its ability to continue as a going concern is dependent on its ability to raise revenue and/or capital to fund its ongoing operations and working capital requirements or its ability to profitably execute its business plan. Additionally, the volatility in capital markets and general economic conditions in the U.S. and elsewhere can pose significant challenges to raising the required funds and/or expanding operating revenue. The doubts regarding the Company's ability to continue as a going concern may adversely affect its ability to obtain new financing on reasonable terms or at all. If funds are not available, the Company may be required to delay, reduce the scope of, or eliminate its business plans. These factors raise substantial doubt about the Company's ability to continue as a going concern.

The Company's consolidated financial statements do not reflect any adjustments relating to the carrying values and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern.

***We have incurred significant losses and negative cash flows from operations since inception***

We have incurred operating losses since our inception. As of December 31, 2025, we had an accumulated deficit of $87.0 million. In addition to the accumulated deficit, we have entered into contractual arrangements committing us to future expenses. Our proposed operations are subject to all business risks associated with a new enterprise. The likelihood of our continuation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business operating in a relatively new, highly competitive, and developing industry. There can be no assurance that we will ever generate operating profits or develop and operate the business as planned. If we are unsuccessful at executing on our business plan, our business, prospects, and results of operations may be materially adversely affected and investors may lose all or a substantial portion of their investment.

***We may need additional funding, which may not be available to us on acceptable terms or at all. If we are unable to raise capital when needed, it may impair our growth or adversely impact our operations.***

We may need to raise additional capital to continue to expand our operations, pursue our growth strategies, fund needed capital expenditures, and to respond to competitive pressures. We may not be able to obtain additional debt or equity financing on favorable terms, if at all, which could impair our growth and adversely affect our operations. We may be required to accept terms that restrict our ability to incur additional indebtedness or require us to maintain specified liquidity or other financial ratios or other terms that may not be in the best interests of our stockholders. The failure to obtain additional debt or equity financing on satisfactory terms could materially and adversely affect our financial condition, results of operations and business plans.

***Risk of increased losses or impairments in our investments could have an adverse effect on our financial condition.***

We hold significant investments in marketable debt securities such as corporate and municipal bonds and notes. The fair value of these financial instruments may be negatively affected by multiple factors including a downgrade of the credit rating or negative publicity of the issuer, market conditions, fiscal policy, geopolitical restrictions and sanctions, among others. Decrease in the fair value of these investments or distressed sale prior to the maturity may negatively impact our shareholders' equity and the Company's financial position.

***Remediation of material weaknesses in our internal control over financial reporting may not be successful and could adversely affect our financial reporting.***

 ****

During the preparation of INX's financial statements, material weakness was identified in its internal control over financial reporting. Failure to establish and maintain effective internal control over financial reporting in accordance with the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, and remediate this material weakness could have an adverse effect on our business and results of operation.

 

We have identified some ineffective ITGC controls existed as of December 31, 2025. As a result, business process controls (automated and IT-dependent manual controls) that are dependent on the ineffective ITGCs, or that use data produced from systems impacted by the ineffective ITGCs were deemed ineffective as of December 31, 2025. In addition, there is currently an inadequate number of accounting personnel who have the requisite experience in SEC reporting regulation to properly implement control procedures.

These deficiencies could result in material misstatement in the financial statements and therefore constitute a material weakness. Based on this material weakness, the Company's management concluded that as of December 31, 2025, the Company's internal control over financial reporting was not effective.

Management is developing a plan to remediate the material weakness identified, including hiring additional accounting staff with the requisite background and knowledge, engaging third parties to assist in complying with the accounting and financial reporting requirements related to significant and complex transactions as well as adding personnel to assist with formalizing our business processes, accounting policies and internal control documentation, strengthening supervisory reviews by our management, and evaluating the effectiveness of our internal controls in accordance with the framework established by Internal Control - Integrated Framework (2013) published by the Committee of Sponsoring Organizations of the Treadway Commission. While our efforts are ongoing, we plan to continue to take additional steps to remediate the material weakness, improve our financial reporting systems, and implement new policies, procedures, and controls.

Management cannot assure that they will be successful in remediating the material weakness identified in the internal controls over financial reporting as of December 31, 2025. The failure to correct the material weakness or the failure to discover and address any other material weakness or deficiencies could result in inaccuracies in the financial statements and impair the ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis.

**Risks Related to Regulation, Information Systems and Privacy Matters**

***We face the risk of operating as an unregistered exchange, unregistered broker-dealer or unregistered clearing agency in the U.S.***

 

Any platform that brings together purchasers and sellers of digital assets that are characterized as securities in the U.S. is generally subject to registration as a national securities exchange, or must qualify for an exemption, such as by being operated by a registered broker-dealer as an alternative trading system (or "ATS").

The INX Securities trading platform is a registered broker-dealer and FINRA member that operates an SEC-registered alternative trading system, and the INX Digital trading platform is licensed, or otherwise qualified, to operate as a money transmitter in 48 U.S. states, plus Washington D.C. and Puerto Rico. We may seek to obtain money transmitter licenses or otherwise become qualified to operate in additional U.S. states or territories. In addition, if in the future we determine to proceed with the establishment of a platform for the trading of cryptocurrency-based derivatives, we would be required to seek registrations with other regulatory bodies, such as the CFTC. However, there can be no assurance that our platform will qualify for additional registrations that we may seek in the future, with the SEC, FINRA, U.S. state regulators and various other regulatory bodies, both in the U.S. and in other countries.

While we take precautionary actions to prevent unauthorized access to our platform in the U.S. states in which we are not licensed to operate as a money transmitter, such as the use of geofencing in our system (which disallows sign in if an individual is located in a state in which we are not registered) and a review by our customer support team to verify the location of the user, in the event that an individual in a jurisdiction in which we are not licensed to operate is able to access the INX Digital trading platform, we could be deemed to have facilitated a transaction in a jurisdiction which we are not licensed to operate. If such an event occurs, we could be subject to significant monetary penalties, censure or other actions, which could have a material and adverse effect on us.

In addition, while we do not believe that the INX Digital trading platform is a securities exchange or ATS or is part of an unregistered exchange mechanism, regulators may determine that this is the case, and we would then be required to register as a securities exchange or qualify and register as an ATS. Any determination that we operate or have operated an unregistered exchange, unregistered broker-dealer or unregulated clearing agency could have a material adverse effect on us.

***We obtain and process sensitive customer data. Any real or perceived improper use of, disclosure of, or access to such data could harm our reputation, as well as have an adverse effect on our business.***

 

Various local, state, federal laws and regulations apply to our collection, use, retention, protection, disclosure, transfer, and processing of personal data. These data protection and privacy laws and regulations are subject to uncertainty and continue to evolve in ways that could adversely impact our business.

In the United States, state and federal lawmakers and regulatory authorities have increased their attention on the collection and use of user data. In the United States, non-sensitive user data generally may be used under current rules and regulations, subject to certain restrictions, so long as the person does not affirmatively "opt-out" of the collection or use of such data. If an "opt-in" model or additional required "opt-outs" were to be adopted in the United States, less data may be available, and the cost of data likely would increase.

As supervisory authorities continue to issue further guidance on personal data, we could suffer additional costs, complaints, regulatory investigations or fines, and if we are otherwise unable to transfer personal data between and among countries and regions in which we operate, it could affect the manner in which we provide our services, the geographical location or segregation of our relevant systems and operations and could adversely affect our financial results.

We obtain and process sensitive data, including personal data related to our customers and their transactions, such as their names, addresses, social security numbers, visa information, copies of government-issued identification, facial recognition data (from scanning of photographs for identity verification), trading data, tax identification, and bank account information. We face risks, including to our reputation, in the handling and protection of this data, and these risks will increase as our business continues to expand, including through our acquisition of, and investment in, other companies and technologies. Federal, state, and international laws and regulations governing privacy, data protection, and e-commerce transactions require us to safeguard our customers', employees', and service providers' personal data. All data that is collected is stored and retained in conjunction with applicable state laws and SEC recordkeeping requirements under SEC Rule 17a-4.

We have administrative, technical, and physical security measures and controls in place and maintain a robust information security program. However, our security measures, or the security measures of companies we acquire, may be inadequate or breached as a result of third-party action, employee or service provider error, malfeasance, malware, phishing, hacking attacks, system error, trickery, advances in computer capabilities, new discoveries in the field of cryptography, inadequate facility security or otherwise, and, as a result, someone may be able to obtain unauthorized access to sensitive information, including personal data, on our systems. We could be the target of a cybersecurity incident, which could result in harm to our reputation and financial losses. Additionally, our customers have been and could be targeted in cybersecurity incidents like an account takeover, which could result in harm to our reputation and financial losses. Additionally, privacy and data protection laws are evolving, and these laws may be interpreted and applied in a manner that is inconsistent with our data handling safeguards and practices that could result in fines, lawsuits, and other penalties, and significant changes to our or our third-party partners' business practices and products and service offerings. Our future success depends on the reliability and security of our platform. To the extent that the measures we, any companies we acquire, or our third-party business partners have taken prove to be insufficient or inadequate, or to the extent we discover a security breach suffered by a company we acquire following the closing of such acquisition, we may become subject to litigation, breach notification obligations, or regulatory or administrative sanctions, which could result in significant fines, penalties, damages, harm to our reputation, or loss of customers. If our own confidential business information or sensitive customer information were improperly disclosed, our business could be adversely affected. Additionally, a party who circumvents our security measures could, among other effects, appropriate customer information or other proprietary data, cause interruptions in our operations, or expose customers to hacks, viruses, and other disruptions.

Depending on the nature of the information compromised, in the event of a data breach or other unauthorized access to our customer data, we may also have obligations to notify customers and regulators about the incident, and we may need to provide some form of remedy, such as a subscription to credit monitoring services, pay significant fines to one or more regulators, or pay compensation in connection with a class-action settlement. Such breach notification laws continue to evolve and may be inconsistent from one jurisdiction to another. Complying with these obligations could cause us to incur substantial costs and could increase negative publicity surrounding any incident that compromises customer data. Additionally, the financial exposure from the events referenced above could either not be insured against or not be fully covered through any insurance that we may maintain, and there can be no assurance that the limitations of liability in any of our contracts would be enforceable or adequate or would otherwise protect us from liabilities or damages as a result of the events referenced above. Any of the foregoing could have an adverse effect on our business, reputation, operating results, and financial condition.

Furthermore, we may be required to disclose personal data pursuant to demands from individuals, regulators, government agencies, and law enforcement agencies in various jurisdictions with conflicting privacy and security laws, which could result in a breach of privacy and data protection policies, notices, laws, rules, court orders, and regulations. Additionally, changes in the laws and regulations that govern our collection, use, and disclosure of customer data could impose additional requirements with respect to the retention and security of customer data, could limit our marketing activities, and have an adverse effect on our business, operating results, and financial condition.

***The Company's policies or procedures for conducting due diligence for anti-money laundering, know your customer, and/or compliance with the Office of Foreign Assets Control related requirements***

The Company conducts KYC and anti-money laundering ("AML") diligence for every user it onboards onto its platform, regardless of whether that customer wishes to trade cryptocurrencies or security tokens. As part of that onboarding process, the Company uses a third-party provider to check the user against numerous lists, including the OFAC sanctions list. User due diligence is performed at the time of onboarding before the account is opened and before funds or assets are deposited into the user's account on the trading platform. When a potential customer wants to open an account with the Company, he or she completes the online investor application and submits this information for review. Upon submission, the customer's data is entered into our third-party service provider for verification against various sanctions lists like OFAC sanctions list and software-defined networking ("SDN") for AML purposes. In addition, there is also a physical review of all the information by a customer specialist to confirm compliance with KYC checks and verifications. Upon successfully passing the AML/KYC process, and acknowledging applicable agreements, the account would be deemed approved and eligible for trading.

To the extent reasonable and practicable, we ensure that we have a reasonable belief that we know the true identity of our customers by using risk-based procedures to verify and document the accuracy of the information we receive about our customers. Using manual and/or automated tools, our team analyzes the information obtained to determine whether the information is sufficient to form a reasonable belief that we know the true identity of the customer.

As stated above, the Company verifies user identity through proof of identification and proof of address documentation, with the intention of forming a reasonable belief that we know the identity of the customer and that they are who they say they are. The Company uses a third-party provider, Sardine, to process identity checks and verify their validity. The Sardine identity document check is done via API and looks at various databases and other proprietary tools in order to check KYC and AML information. In addition, the firm uses a third party provider called ShuftiPro, which analyzes identification documents to verify that they are valid. Sardine also identifies whether the identification document has been recorded as lost, stolen or compromised (i.e., through tampering, forgery and fraud). The Company may ask for further documentation from users as part of an enhanced due diligence process based on the risk rating derived from the AML and KYC checks done via Sardine in order to comply with its regulatory requirements.

The Company collects information about each individual such that we can reasonably determine who the customer is and the nature of their business with the Company. Such information is collected during the onboarding process where the applicant is requested to complete the "Personal Profile" section, which includes questions in relation to their:

● Employment: for example, applicants are required to declare, among other things, their employment status and most recent employer;

● Financials: for example, applicants are required to declare, among other things, their annual income and net worth; and

● Investment experience: for example, applicants are required to declare, among other things, their risk tolerance and investment objective.

Additionally, all users are subject to screening as part of the onboarding process. Screening is currently done via API by Sardine. Sardine uses the customer information provided during the onboarding process, such as proof of identification, to perform screenings, including OFAC, FATF, and adverse media checks, which are integrated by Sardine. Sardine gathers data from diverse government sources, international regulators and law enforcement agencies and watchlists. All users are scanned against these lists on an ongoing basis for known or suspected entities and individuals who are associated with money laundering, terrorism, financial fraud, arms proliferation, drug trafficking or are politically exposed persons. Depending on the Sardine risk rating results, the INX team will perform the necessary reviews and escalate any high risk users as per our defined written procedures and processes.

A person who tries to initiate the onboarding process from a restricted jurisdiction, due to unauthorized location, sanctioned country or otherwise identified through geofencing, will not be allowed to continue the onboarding process and will get a notification explaining that the person applied cannot invest with the Company and cannot open an account on the platform.

**Risks Related to Blockchain Assets**

***Blockchain is a nascent and rapidly changing technology and there remains relatively small use of blockchain networks and blockchain assets in the retail and commercial marketplace. The slowing or stopping of the development or acceptance of blockchain networks may adversely affect an investment in INX Tokens or in our Company.***

 

The development of blockchain networks is a new and rapidly evolving industry that is subject to a high degree of uncertainty. Factors affecting the further development of the blockchain industry include:

● continued worldwide growth in the adoption and use of blockchain networks and assets;

● the maintenance and development of the open-source software protocol of blockchain networks;

● changes in consumer demographics and public tastes and preferences;

● the popularity or acceptance of the Bitcoin or Ethereum networks;

● the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

● government and quasi-government regulation of blockchain networks and assets, including any restrictions on access, operation and use of blockchain networks and assets; and

● the general economic environment and conditions relating to blockchain networks and assets.

Our business model is dependent on continued investment in and development of the blockchain industry and related technologies. If investments in the blockchain industry become less attractive to investors or innovators and developers, or if blockchain networks and assets do not gain public acceptance or are not adopted and used by a substantial number of individuals, companies and other entities, it could have a material adverse impact on our prospects and our operations.

***The application of distributed ledger technology is novel and untested and may contain inherent flaws or limitations.***

 

Blockchain is an emerging technology that offers new capabilities which are not fully proven in use. There are limited examples of the application of distributed ledger technology. In most cases, software used by blockchain asset issuing entities will be in an early development stage and still unproven. As with other novel software products, the computer code underpinning the INX Tokens and Ethereum blockchain may contain errors, or function in unexpected ways. Insufficient testing of smart contract code, as well as the use of external code libraries, may cause the software to break or function incorrectly. Any error or unexpected functionality may cause a decline in value of the INX Token and result in substantial losses to purchasers of INX Tokens.

If we discover errors or unexpected functionalities in the INX Token smart contract, we may make a determination that the INX Token smart contract is defective and that its use should be discontinued. Although we intend to replace the INX Token and the INX Token smart contract with a new token using a new smart contract in that situation, we may be required to take certain measures, such as freezing digital wallet addresses so that such wallets cannot transfer INX Tokens, which may disrupt trading in the INX Tokens. Such a determination and our subsequent deployment of a new smart contract and replacement token could have a material effect on the value of any investment in the INX Token or our business.

The creation and operation of digital platforms for the public trading of blockchain assets will be subject to potential technical, legal and regulatory constraints. There is no warranty that the process for receiving, use and ownership of blockchain assets will be uninterrupted or error-free and there is an inherent risk that the software, network, blockchain assets and related technologies and theories could contain undiscovered technical flaws or weaknesses, the cryptographic security measures that authenticate transactions and the distributed ledger could be compromised, and breakdowns and trading halts could cause the partial or complete inability to use or loss of blockchain assets.

Risks associated with the distributed ledger technology could affect our business directly or the market for blockchain assets generally. In either case, the occurrence of these events could have a materially adverse effect on an investment in INX Tokens or the Company.

***The open-source structure of blockchain software means that blockchain networks may be susceptible to malicious cyber-attacks or may contain exploitable flaws, which may result in security breaches and the loss or theft of blockchain assets.***

 

Most blockchain networks operate based on some form of open-source software. An open source project is not represented, maintained or monitored by an official organization or authority. Because of the nature of open-source software projects, it may be easier for third parties not affiliated with the issuer to introduce weaknesses or bugs into the core infrastructure elements of the blockchain network. This could result in the corruption of the open-source code which may result in the loss or theft of blockchain assets.

Blockchain networks may be the target of malicious attacks seeking to identify and exploit weaknesses in the software. Such events may result in a loss of trust in the security and operation of blockchain networks and a decline in user activity which could have a negative impact on the Company.

***Each blockchain network, including the Ethereum network, is dependent upon its users and contributors, and actions taken, or not taken, by the users or contributors of a blockchain network could damage its reputation and the reputation of blockchain networks generally.***

 

Developers and other contributors to blockchain network protocols generally maintain or develop those blockchain networks, including the verification of transactions on such networks. Because the networks are decentralized, these contributors are generally not directly compensated for their actions. Therefore, most blockchain networks provide that such contributors receive awards and transfer fees for recording transactions and otherwise maintaining the blockchain network. Such fees are generally paid in the blockchain asset of that network.

The security and integrity of blockchain assets, including the value ascribed to blockchain assets, relies on the integrity of the underlying blockchain networks. We have issued the INX Token, an ERC-1404 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain.

The INX Token operates on the ERC-1404 blockchain standard, a modified version of ERC-20 that introduces two additional functions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Detect Transfer Restrictions: This feature allows for the
identification of transfer restrictions, providing enhanced security and compliance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Human-Readable Error Messages: ERC-1404 enhances user experience
by offering clear and understandable error messages when a transfer is likely to fail.

Furthermore, ERC-1404's compatibility with existing wallets and exchanges designed for ERC-20 simplifies integration, making it convenient for a wide range of users and platforms.

If the awards and fees paid for maintenance of a network are not sufficiently high to incentivize miners, miners may respond in a way that reduces confidence in the blockchain network. To the extent that any miners cease to record transactions in solved blocks, transactions that do not include the payment of a transfer fee will not be recorded on the blockchain until a block is solved by a miner who does not require the payment of transfer fees. Any widespread delays in the recording of transactions could result in a loss of confidence in the blockchain network and its assets. To the extent that this occurs with regard to blockchain networks that underlie the blockchain assets traded on our platforms, including the Ethereum network, it could have a materially adverse effect on an investment in the Company. To the extent that this occurs with regard to the Ethereum network, it could have a materially adverse effect on an investment in the INX Token.

***The prices of blockchain assets are extremely volatile. Fluctuations in the price of Bitcoin, Ether and/or other blockchain assets could materially and adversely affect the Company.***

 

The prices of blockchain assets such as Bitcoin and Ether have historically been subject to dramatic fluctuations and are highly volatile. As relatively new products and technologies, blockchain assets have only recently become accepted as a means of payment for goods and services, and such acceptance and use remains limited. Conversely, a significant portion of demand for blockchain assets is generated by speculators and investors seeking to profit from the short- or long-term holding of blockchain assets.

In addition, some blockchain industry participants have reported that a significant percentage of blockchain asset trading activity is artificial or non-economic in nature and may represent attempts to manipulate the price of certain blockchain assets. For example, according to Chainalysis's January 2025 report, suspected wash trading across Ethereum, BNB, and Base blockchains may have accounted for up to $2.57 billion in artificial trading volume in 2024, with one address alone executing over 54,000 near-identical buy-and-sell transactions, suggesting significant non-economic activity. As a result, trading platforms or blockchain assets may seek to inflate demand for specific blockchain assets, or blockchain assets generally, which could increase the volatility of that asset or blockchain asset trading prices generally.

The market price of these blockchain assets, as well as other blockchain assets that may be developed in the future, may continue to be highly volatile. A lack of expansion, or a contraction of adoption and use of blockchain assets, may result in increased volatility or a reduction in the price of blockchain assets.

Several additional factors may influence the market price of blockchain assets, including, but not limited to:

● Global blockchain asset supply;

● Global blockchain asset demand, which can be influenced by the growth of retail merchants' and commercial businesses' acceptance of blockchain assets like cryptocurrencies as payment for goods and services, the security of online blockchain asset trading platforms and digital wallets that hold blockchain assets, the perception that the use and holding of blockchain assets is safe and secure, and the regulatory restrictions on their use;

● Changes in the software, software requirements or hardware requirements underlying the blockchain networks;

● Changes in the rights, obligations, incentives, or rewards for the various participants in blockchain networks;

● The cost of trading and transaction in blockchain assets, and whether such costs may become fixed or standardized;

● Investors' expectations with respect to the rate of inflation;

● Interest rates;

● Currency exchange rates, including the rates at which blockchain assets may be exchanged for fiat currencies;

● Fiat currency withdrawal and deposit policies of blockchain asset trading platforms and liquidity on such platforms;

● Interruptions in service or other failures of major blockchain asset trading platforms;

● Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly invest in blockchain networks or blockchain assets;

● Monetary policies of governments, trade restrictions, currency devaluations and revaluations;

● Regulatory measures, if any, that affect the use of blockchain assets;

● The maintenance and development of the open-source software utilized in blockchain networks;

● Global or regional political, economic or financial events and situations; and

● Expectations among blockchain network participants that the value of such blockchain assets will soon change.

A decrease in the price of a single blockchain asset may cause volatility in the entire blockchain industry and may affect other blockchain assets. For example, a security breach that affects investor or user confidence in Ether or Bitcoin may affect the industry as a whole and may also cause the price of other blockchain assets to fluctuate.

The value of blockchain assets and fluctuations in the price of blockchain assets could materially and adversely affect our business and investment in INX Tokens or the Company.

***The U.S. regulatory regimes governing blockchain technologies, blockchain assets and the purchase and sale of blockchain assets are uncertain, and new regulations or policies may materially adversely affect the development of blockchain networks and the use of blockchain assets.***

 

INX Securities, LLC ("INXS") is registered with FINRA and the Securities and Exchange Commission ("SEC") as a broker-dealer authorized to operate as an ATS that is allowed to facilitate the trading of security tokens in compliance with the SEC's "Three-Step Process." As of April 30, 2026, INXS no longer operates pursuant to "Three-Step Process" and now acts as a custodial broker/dealer with respect to cash custody subject to the full provisions of SEC Rule 15c3-3. Additionally, INXS is registered in all 50 U.S. states, the District of Columbia, and Puerto Rico, and is also permitted to act as the broker-dealer of record in primary offerings for traditional and digital securities. As such, the Company has implemented policies, processes, rules and procedures that govern the issuance and trading of security tokens on the INXS ATS.

However, there is still significant uncertainty regarding the application of federal and state laws to the issuance and trading of crypto assets, including regulations governing the conduct of market intermediaries to the trading of crypto assets that are securities.

In addition, various legislative and executive bodies in the United States and in other countries have shown that they intend to adopt legislation to regulate the sale and use of blockchain assets. Such legislation may vary significantly among jurisdictions, which may subject participants in the blockchain trading marketplace to different and perhaps contradictory requirements.

Also, as firms in the financial services industry have experienced increased scrutiny in recent years, such regulatory or other actions may lead to penalties, fines, disbarment and other sanctions which could place restrictions or limitations on our operations and otherwise have a material adverse effect on our businesses. We could be exposed to substantial liability under federal and state laws and court decisions, as well as rules and regulations promulgated and/or direct actions brought by the SEC, state securities regulators and other U.S. regulatory agencies.

If we fail to qualify with any of these authorities, we may be unable to execute on, or be forced to cease operations contemplated under, our business plan as a provider of financial services. This would have a broad impact on us and could have a material adverse effect on our businesses, financial condition, results of operations and prospects and, as a result, investors could lose all or most of their investment. In addition, any such action could also cause us significant reputational harm, which, in turn, could seriously harm the Company.

New or changing laws and regulations or interpretations of existing laws and regulations, in the United States and elsewhere, may materially and adversely impact the development and growth of blockchain networks and the adoption and use of blockchain assets. This is even more so due to market conditions and recent growth in crypto-related frauds, layoffs, and the ongoing liquidity crisis that led to bankruptcies by leading crypto companies. The imposition of restrictions on all blockchain assets, or certain blockchain assets, could affect the value, liquidity and market price of blockchain assets subject to heighten regulation, by limiting access to marketplaces or exchanges on which to trade such blockchain assets, or imposing restrictions on the structure, rights and transferability of such blockchain assets. Some governments may seek to ban transactions in blockchain assets altogether. See "Item 1.B Business Overview — Regulatory Oversight of Blockchain Assets."

The Company may be prevented from entering, or it may be required to cease operations in, a jurisdiction that makes it illegal or commercially unviable or undesirable to operate in such jurisdiction. Enforcement, or the threat of enforcement, may also drive a critical mass of participants and trading activity away from regulated markets, such as those provided by the INX Digital, Inc. ("INXD") trading platform, the INX Securities, LLC ("INXS") trading platform, and other related business activities, and toward unregulated exchanges. Although it is impossible to predict the positions that will be taken by certain governments, any regulatory changes affecting blockchain assets could be substantial and materially adverse to the development and growth of our business and investment in INX Tokens and the Company.

We may be deemed an underwriter under the Securities Act with regard to our role and involvement with respect to any initial offerings of securities on the INXS ATS, and our failure to comply with applicable federal securities laws may expose us to legal liability. We may be subject to disputes regarding the quality of trade execution, the settlement of trades or other matters relating to our services. We may become subject to these claims as a result of any failures or malfunctions of our systems and services we provide.

We could incur significant legal expenses defending claims, even those without merit. In addition, an adverse resolution of any future lawsuit or claim against us could have a material adverse effect on our business and reputation. To the extent we are found to have failed to fulfill our regulatory obligations, we could lose our authorizations or licenses or become subject to conditions that could make future operations more costly and impair our profitability.

***We are subject to an extensive and highly-evolving regulatory landscape world-wide and any adverse changes to, or our failure to comply with, any laws and regulations could adversely affect our brand, reputation, business, operating results, and financial condition.***

The markets for digital securities and cryptocurrencies are rapidly emerging. As such, the Company is subject to an extensive and highly evolving regulatory landscape. The Company's business is subject to extensive laws, rules, regulations, policies, orders, determinations, directives, treaties, and legal and regulatory interpretations and guidance in the markets in which it operates, including those governing financial services and banking, federal government contractors, trust companies, securities, derivative transactions and markets, broker-dealers and alternative trading systems ("ATS"), crypto asset custody, exchange, and transfer, cross-border and domestic money and crypto asset transmission, foreign currency exchange, privacy, data governance, data protection, cybersecurity, fraud detection, payment services (including payment processing and settlement services), retail protection, competition, bankruptcy, tax, anti-bribery, economic and trade sanctions, anti-money laundering, counter-terrorist financing and others.

Many of these legal and regulatory regimes were adopted prior to currently available advanced technologies. As a result, some applicable laws and regulations world-wide do not contemplate or address unique issues associated with the digital securities and cryptocurrencies, and are subject to significant uncertainty, and vary widely across U.S. federal, state, and international jurisdictions. These legal and regulatory regimes, including the laws, rules, and regulations thereunder, evolve frequently and may be modified, interpreted, and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another.

This complexity and evolving nature of the Company's business and the significant uncertainty surrounding the regulation of the digital securities and cryptocurrencies requires us to exercise our best judgment as to whether certain laws, rules, and regulations apply to the Company's business, and it is possible that governmental bodies and regulators may disagree with our conclusions. To the extent we have misinterpreted any such laws, rules, and regulations, we could be subject to significant fines, revocation of licenses, limitations on our products and services, reputational harm, and other regulatory consequences, each of which may be significant and could adversely affect the Company's business, operating results, and financial condition.

In addition to existing laws and regulations, various governmental and regulatory bodies, including legislative and executive bodies, in the United States and in other countries, may adopt new laws and regulations not yet in existence. For example, legislation imposing additional regulatory requirements in relation to crypto-related activities is possible in the near to intermediate term which, among other things, may impose new or additional regulatory requirements on both crypto service providers and issuers of certain crypto assets, which may impact our operations in the countries in which legislation is advanced.

Furthermore, new interpretations of existing laws and regulations may be issued by such bodies or the judiciary, which may adversely impact the development of the digital securities and cryptocurrencies economy as a whole and our legal and regulatory status in particular by changing how we operate our business, how our products and services are regulated, and what products or services we and our competitors can offer, requiring changes to our compliance and risk mitigation measures, imposing new licensing requirements, or imposing a total ban on certain crypto asset transactions, as has occurred in certain jurisdictions in the past. Those new laws, regulations, or interpretations may result in litigation, regulatory investigations, and enforcement or other actions, including preventing or delaying the Company from offering certain products or services offered by its competitors or could impact how the Company offers such products and services. Adverse changes to, or our failure to comply with, any laws and regulations may have an adverse effect on our reputation and brand and our business, operating results, and financial condition.

Blockchain assets also face an uncertain regulatory landscape in many foreign jurisdictions. On September 4, 2017, the People's Bank of China labeled blockchain asset sales as "illegal and disruptive to economic and financial stability." Previously, China had issued a notice that classified bitcoin as legal and "virtual commodities;" however, the same notice restricted the banking and payment industries from using bitcoin, creating uncertainty and limiting the ability of Bitcoin Exchanges to operate in the then-second largest bitcoin market. In 2021, it was reported that China banned all cryptocurrency trading and mining. It is possible that persons from the Chinese market have been or have been attempting to engage in cryptocurrency trading activity through off-shore access. Notwithstanding the foregoing, it is still illegal in China except for highly restricted instances of personal investment or as a payment method.

In 2017, South Korea's Financial Services Commission imposed broad restrictions on token issuance and institutional participation in cryptocurrency markets. That approach has since evolved, with comprehensive virtual asset legislation enacted in July 2024 and, in 2026, the lifting of the long-standing corporate investment ban to permit regulated corporate investment in cryptocurrencies subject to defined limits. Japan regulates crypto assets through a registration and oversight regime under the Payment Services Act, but is actively reforming its legal framework to treat many crypto assets as financial products with added securities-style oversight and enhanced market rules. Singapore has enacted a comprehensive regulatory regime under the Payment Services Act, including finalized stablecoin rules in 2023, and has further strengthened its framework by expanding licensing requirements to Singapore-based digital token service providers serving overseas customers, while stablecoin issuers must meet strict criteria to be designated as MAS-regulated stablecoins.

Other jurisdictions are still researching the subject. The UK is in the process of formalizing comprehensive crypto regulation, with primary legislation expected to take effect by October 2027. This will bring crypto assets fully under the Financial Services and Markets Act regime, giving the Financial Conduct Authority (FCA) explicit powers to regulate crypto trading platforms, custody services, stablecoin issuance, and other cryptoasset activities. The United Arab Emirates has established a detailed crypto regulatory ecosystem, with federal licensing requirements, designated regulators, central bank stablecoin rules, and widening scope of regulated activities. For additional information see "Item 1.B Business Overview — Regulatory Oversight of Blockchain Assets."

Moreover, we offer and may in the future offer products and services whose functionality or value depends in part on our management of token transaction smart contracts, asset tracking, or other applications that provide novel forms of customer engagement and interaction delivered via blockchain protocols. We may also offer products and services whose functionality or value depends on our ability to develop, integrate, or otherwise interact with such applications within the bounds of our legal and compliance obligations. The legal and regulatory landscape for such products, including the law governing the rights and obligations between and among smart contract developers and users and the extent to which such relationships entail regulated activity is uncertain and rapidly evolving. Our interaction with those applications, and the interaction of other blockchain users with any smart contracts or assets we may generate or control, could present legal, operational, reputational, and regulatory risks for our business.

Because we have offered and will continue to offer a variety of innovative products and services to our customers, many of our offerings are subject to significant regulatory uncertainty that we try to mitigate by adopting measures that do not necessarily apply to the Company's current business operation (see for example segregation of assets). There are substantial uncertainties on how these requirements would apply in practice, and we may face substantial compliance costs to operationalize and comply with these rules. Certain products and services offered by us that we believe are not subject to regulatory oversight or are only subject to certain regulatory regimes.

It may be illegal now, or in the future, to acquire, own, hold, sell or use INX Tokens in one or more countries, and ownership of, holding or trading in our Company's securities may also be considered illegal and subject to sanction. The regulation of blockchain assets remains uncertain or undefined in many jurisdictions. Although we anticipate treating the INX Tokens as securities under the laws of all foreign jurisdictions and adhering to such laws with regard to the offering and sale of INX Tokens abroad, one or more foreign governmental authorities, such as those in China or Russia, may take regulatory action in the future that severely restricts the right to acquire, own, hold, sell or use blockchain assets or to exchange blockchain assets for fiat currency. Such an action may result in the restriction of ownership, holding or trading in the INX Token and other securities. Such restrictions may adversely affect the business or operations of the Company.

While we have implemented policies and procedures designed to help monitor for and ensure compliance with existing and new laws and regulations, there can be no assurance that we and our employees, contractors, and agents will not violate or otherwise fail to comply with such laws and regulations. To the extent that we or our employees, contractors, or agents are deemed or alleged to have violated or failed to comply with any laws or regulations, including related interpretations, orders, determinations, directives, or guidance, we or they could be subject to a litany of civil, criminal, and administrative fines, penalties, orders and actions, including being required to suspend or terminate the offering of certain products and services.

Adverse changes to, or our failure to comply with, any laws and regulations have had, and may continue to have, an adverse effect on our reputation and brand and our business, operating results, and financial condition. ****

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***We cannot assure that our policies and procedures in place to comply with applicable complex and evolving laws, regulations, and rules will always be effective, which could have a negative impact on our business operations.***

Our ability to comply with applicable complex and evolving laws, regulations, and rules is largely dependent on the establishment, maintenance, and scaling of our compliance, audit, and reporting systems to continuously keep pace with our customer activity and transaction volume, as well as our ability to attract and retain qualified compliance and other risk management personnel. While we have devoted significant resources to develop policies and procedures to identify, monitor, and manage our risks, and expect to continue to do so in the future, we cannot assure you that our policies and procedures are and will always be effective or that we have been and will always be successful in monitoring or evaluating the risks to which we are or may be exposed in all market environments or against all types of risks, including unidentified or unanticipated risks. Our risk management policies and procedures rely on a combination of technical and human controls and supervision that are subject to error and failure. Some of our methods for managing risk are discretionary by nature and are based on internally developed controls and observed historical market behavior, and also involve reliance on standard industry practices. These methods may not adequately prevent losses, particularly as they relate to extreme market movements, which may be significantly greater than historical fluctuations in the market. Our risk management policies and procedures also may not adequately prevent losses due to technical errors if our testing and quality control practices are not effective in preventing failures. In addition, we may elect to adjust our risk management policies and procedures to allow for an increase in risk tolerance, which could expose us to the risk of greater losses.

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***Certain crypto assets in which we may in the future facilitate trading may be subject to regulatory authority by the CFTC. Any fraudulent or manipulative activity in a crypto asset occurring on our platform could subject us to increased regulatory scrutiny, regulatory enforcement, and litigation.***

The CFTC has stated and judicial decisions involving CFTC enforcement actions have confirmed that certain crypto assets may fall within the definition of a "commodity" under the Commodity Exchange Act ("CEA"). As a result, the CFTC would have general enforcement authority to police against manipulation and fraud in at least some crypto asset markets. From time to time, manipulation, fraud, and other forms of improper trading by market participants have resulted in, and may in the future result in, CFTC investigations, inquiries, enforcement action, and similar actions by other regulators, government agencies, and civil litigation. Such investigations, inquiries, enforcement actions, and litigation may cause us to incur substantial costs and could result in negative publicity.

In addition, pending U.S. legislation, including the Digital Asset Market Clarity Act ("Clarity Act"), seeks to codify the CFTC's exclusive jurisdiction over digital commodities and digital commodity intermediaries, while preserving SEC authority over digital securities. Enactment of the Clarity Act could materially affect the scope of CFTC oversight, the types of transactions subject to regulation, and our compliance obligations.

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***Certain transactions in crypto assets may constitute "retail commodity transactions" subject to regulation by the CFTC as futures contracts. If crypto asset transactions we facilitate are deemed to be such retail commodity transactions, we would be subject to additional regulatory requirements, licenses and approvals, and potentially face regulatory enforcement, civil liability, and significant increased compliance and operational costs.***

Any transaction in a commodity, including a crypto asset, entered into with or offered to retail investors using leverage, margin, or other financing arrangements (a "retail commodity transaction") is subject to CFTC regulation as a futures contract unless such transaction results in actual delivery within 28 days. The meaning of "actual delivery" has been the subject of commentary and litigation, and in 2021, the CFTC adopted interpretive guidance addressing the "actual delivery" of a crypto asset. To the extent that crypto asset transactions that we facilitate or facilitated are deemed retail commodity transactions, including pursuant to current or subsequent rulemaking or guidance by the CFTC, we may be subject to additional regulatory requirements and oversight, and we could be subject to judicial or administrative sanctions if we do not or did not at a relevant time possess appropriate registrations. The CFTC has previously brought enforcement actions against entities engaged in retail commodity transactions without appropriate registrations. The CFTC has published certain statements, including in conjunction with the SEC, in order to clarify the appropriate treatment of certain crypto assets and categories, but this continues to be a developing area of law and regulation.

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***Particular crypto assets or transactions therein could be deemed "commodity interests" (e.g., futures, options, swaps) or security-based swaps subject to regulation by the CFTC or SEC, respectively. If a crypto asset that we facilitate trading in is deemed a commodity interest or a security-based swap, we would be subject to additional regulatory requirements, registrations and approvals, and potentially face regulatory enforcement, civil liability, and significant increased compliance and operational costs.***

Commodity interests, as such term is defined by the CEA and CFTC rules and regulations, are subject to more extensive supervisory oversight by the CFTC, including registrations of entities engaged in, and platforms offering commodity interest transactions. This CFTC authority extends to crypto asset futures contracts and swaps, including transactions that are based on current and future prices of crypto assets and indices of crypto assets. To the extent that a crypto asset in which we facilitate or facilitated trading or transactions in a crypto asset which we facilitate or facilitated are deemed to fall within the definition of a commodity interest, including pursuant to subsequent rulemaking or guidance by the CFTC, we may be subject to additional regulatory requirements and oversight and could be subject to judicial or administrative sanctions if we do not or did not at a relevant time possess appropriate registrations as an exchange (for example, as a designated contract market for trading futures or options on futures, or as a swaps execution facility for trading swaps) or as a registered intermediary (for example, as a futures commission merchant or introducing broker). Such actions could result in injunctions, cease and desist orders, as well as civil monetary penalties, fines, and disgorgement, as well as reputational harm. The CFTC has previously brought enforcement actions against entities engaged in crypto asset activities for failure to obtain appropriate exchange, execution facility and intermediary registrations.

Furthermore, the CFTC and the SEC have jointly adopted regulations defining "security-based swaps," which include swaps based on single securities and narrow-based indices of securities. If a crypto asset is deemed to be a security, certain transactions referencing that crypto asset could constitute a security-based swap. A crypto asset or transaction therein that is based on or references a security or index of securities, whether or not such securities are themselves crypto assets, could also constitute a security-based swap. To the extent that a crypto asset in which we facilitate or have facilitated trading or transactions in a crypto asset which we facilitate or have facilitated are deemed to fall within the definition of a security-based swap, including pursuant to subsequent rulemaking or guidance by the CFTC or SEC, we may be subject to additional regulatory requirements and oversight by the SEC and could be subject to judicial or administrative sanctions if we do not or did not a relevant time possess appropriate registrations as an exchange (for example, as a security-based swaps execution facility) or as a registered intermediary (for example, as a security-based swap dealer or broker-dealer). This could result in injunctions, cease and desist orders, as well as civil monetary penalties, fines, and disgorgement, as well as reputational harm.

***If the Company fails to properly characterize a digital asset listed for trading under applicable securities laws, it may be subject to regulatory scrutiny, inquiries, investigations, fines, and other penalties, which may adversely affect the business, operating results, and its financial condition.***

The SEC and its staff continue to take the position that many digital assets fall within the definition of a "security" under the U.S. federal securities laws. The SEC has stated that the characterization of a digital asset as a security or non-security should be made by application of the Howey test, which provides a multi-factor analysis for determining whether a digital asset is a security, as well as other case law and reports, orders and statements issued by the SEC which provide guidance on when a digital asset should be treated as a security for purposes of US federal securities laws.

Several foreign jurisdictions have taken a broad-based approach to classifying crypto assets as "securities," while other foreign jurisdictions, such as Switzerland, United Kingdom, and Singapore, have adopted a narrower approach. As a result, certain crypto assets may be deemed to be a "security" under the laws of some jurisdictions but not others. Various foreign jurisdictions may, in the future, adopt additional laws, regulations, or directives that affect the characterization of crypto assets as "securities."

The classification of a crypto asset as a security under applicable law has wide-ranging implications for the regulatory obligations that flow from the offer, sale, trading, and clearing of such assets. For example, a crypto asset that is a security in the United States may generally only be offered or sold in the United States pursuant to a registration statement filed with the SEC or in an offering that qualifies for an exemption from registration.

Pending legislation, including the Clarity Act, seeks to provide statutory clarity by defining categories of digital assets, confirming the SEC's authority over digital securities. If enacted, the Clarity Act could materially affect how digital assets are classified and regulated, the scope of SEC oversight, and our compliance obligations. Additionally, in January 2026, the U.S. Securities and Exchange Commission staff (Divisions of Corporation Finance, Investment Management, and Trading and Markets) issued a joint statement clarifying the application of federal securities laws to tokenized securities. The statement confirms that tokenized securities remain securities under U.S. law regardless of their digital format and discusses various tokenization models, including issuer-sponsored and third-party tokenization. This statement does not establish new law but reflects the staff's current views on regulatory treatment and compliance expectations for tokenized representations of securities.

The Company has developed specific criteria and follows its policies and procedures to analyze whether a digital asset could be deemed a "security" under applicable laws prior to listing such asset on the INXD trading platform. The Company's policies and procedures do not constitute a legal standard, but rather represent the Company-developed model, which it uses to make a risk-based assessment regarding the likelihood that a particular crypto asset could be deemed a "security" under applicable laws. Regardless of the conclusions, the Company could be subject to legal or regulatory action in the event the SEC, a state or foreign regulatory authority, or a court were to determine that a supported crypto asset currently traded on our INXD platform is a "security" under applicable laws.

The policy reviews a variety of factors for each listing, including applying such review as it relates to the Howey test. The policy considers, among other things, the use, purpose, and specific features of each crypto asset being considered. Once all of these assessments are completed and internally approved by the relevant members of Company management, the assessment is reviewed and approved by the INXD Board of Directors.

The Company will only approve a listing that it reasonably determines is not used to circumvent laws and regulations or that may facilitate the obfuscation or concealment of a customer's or counterparty's identity. Additionally, the Company will only approve cryptocurrencies that it reasonably determines, using the above-described procedures, are not crypto assets that fall under the jurisdiction of securities regulations in the U.S. and may seek the guidance of outside legal counsel in this determination. The Company will only permit the trading of a crypto asset consistent with relevant consumer protection standards and that do not jeopardize INXD's safety and soundness as a going concern.

The Company believes that its process reflects a comprehensive and thoughtful analysis and is reasonably designed to facilitate consistent application of available legal guidance. However, it recognizes that the application of securities laws to the specific facts and circumstances of crypto assets may be complex, and that a listing determination does not guarantee any conclusion under the U.S. federal securities laws.

***With respect to the Company's INXD platform, if the Company fails to properly characterize a digital asset listed for trading under applicable securities laws, it may be subject to regulatory scrutiny, inquiries, investigations, fines, and other penalties, which may adversely affect the business, operating results, and its financial condition.***

There can be no assurances that we have properly characterized in the past, or that we will properly characterize in the future, any given crypto asset as a security or non-security for purposes of determining whether our platform will support trading of the crypto asset, or that the SEC, foreign regulatory authority, or a court, if the question was presented to it, would agree with our assessment. If an applicable regulatory authority or a court, having final determinative authority on the subject, were to determine that a supported crypto asset that was previously offered, sold, or traded on our INX Digital platform, or that is currently offered, sold, or traded on our INX Digital platform, is a security, we could be subject to judicial or administrative sanctions for failing to offer or sell the crypto asset in compliance with the registration or exemption requirements. Such an action could result in injunctions, cease and desist orders, as well as civil monetary penalties, fines, and disgorgement, criminal liability, and reputational harm. Customers that traded such supported crypto assets on our platform and suffered trading losses could also seek to rescind a transaction that we facilitated on the basis that it was conducted in violation of applicable law, which could subject us to significant liability. Furthermore, if we remove any crypto assets from trading on our platform for any reason, our decision may be unpopular with users and may reduce our ability to attract and retain customers, especially if such assets remain traded on unregulated exchanges, which includes many of our competitors.

As an example, the crypto asset MATIC was listed on the INXD platform for some time before being delisted from the platform in 2023, rendering it unavailable on the platform. The Company may be subject to regulatory scrutiny, inquiries, investigations, fines, and other penalties as a result of that period of time where MATIC was listed for trading on the INXD platform.

Further, if Bitcoin, Ethereum, or any other crypto asset that we are either currently supporting, or that we supported in the past, is deemed to be a security under any U.S. federal, state, or foreign jurisdiction, or in a proceeding in a court of law or otherwise, it may have adverse consequences for such supported crypto asset. For instance, all transactions in such supported crypto assets would have to be registered with the SEC or other foreign authority, or conducted in accordance with an exemption from registration, which could severely limit its liquidity, usability and transactability. Moreover, the networks on which such supported crypto assets are utilized may be required to be regulated as securities intermediaries, and subject to applicable rules, which could effectively render the network impracticable for its existing purposes. Further, it could draw negative publicity and a decline in the general acceptance of the crypto asset. Also, it may make it difficult for such supported crypto assets to be traded, cleared, and held in custody as compared to other crypto assets that are not considered to be securities.

**Adding crypto assets to, or removing from our platform**

The Company has a policy and process in place for adding new crypto asset securities and cryptocurrencies for listing or trading on its platform. The Company's legal and compliance teams, in cooperation with the Chief Compliance Officer, evaluate the legal, compliance, technology, cybersecurity, and operational risks with respect to listing a cryptocurrency. The evaluation is done in the form of a due diligence checklist, upon which the above parties have to signify approval, and once this is done, the checklist is then sent to the Board of Directors of INXD, for a final review and approval.

More specifically, the relevant risk areas that INXD takes into consideration regarding each cryptocurrency include the overview and history, roadmap, business purpose, usage, distribution and concentration, regulation, compliance obligations, Howey Test triggers, risk assessment, token type, white paper, blockchain type, engineering, security and code, prototype, consensus process, network operating costs, supply, rewards and penalties, development team, and operations.

Additionally, the Company has established proactive internal procedures for the delisting and removal of assets from its INXS and INXD platforms.

During the review conducted by the compliance department, several factors are taken into account for both the INXS and INXD platforms. While this list is not exhaustive, it provides insight into some of the key considerations:

● commitment of the team to the project

● level and quality of development activity

● trading volume and liquidity

● stability and security of the network against attacks

● network and smart contract stability

● nature and level of public communication

● responsiveness to periodic due diligence requests

● evidence of unethical, fraudulent conduct, or negligence

● contribution to a healthy and sustainable crypto ecosystem

● relevance to recent regulatory developments

Additionally, as it pertains specifically to the INXS platform, the compliance department weighs:

● recent regulatory developments regarding the secondary trading of securities

● relevant state and federal court decisions determining the security status of a digital asset

● issuer non-compliance with securities laws

***As we continue to expand our business and customer base outside the United States, we may be vulnerable to risks related to unauthorized or impermissible customer access outside of the jurisdictions in which we operate, which may result in significant legal and financial exposure, damage to our reputation, and a loss of confidence in the services we provide***

 

As we expand and localize our international activities, we have become increasingly obligated to comply with the laws, rules, regulations, policies, and legal interpretations of both the jurisdictions in which we operate and those into which we offer services on a cross-border basis. For instance, financial regulators outside the United States have increased scrutiny of crypto asset exchanges over time, such as by requiring crypto asset exchanges operating in their local jurisdictions to be regulated and licensed under local laws.

Although the Company monitors closely the above mentioned risks and takes proactive steps to mitigate them, any breach or unauthorized customer access to products and services outside jurisdictions in which we operate could result in significant legal and financial exposure, damage to our reputation, and a loss of confidence in the services we provide that could potentially have an adverse effect on our business, while resulting in regulatory penalties or the imposition of burdensome obligations by regulators.

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***Use of digital engagement practices ("DEP") designed to engage with retail investors and provide educational tools***

 

Our success depends on our ability to retain existing customers and attract new customers, including ecosystem partners, to increase engagement with our products, services, and platform. To do so, we must continue to offer leading technologies and ensure that our products and services are secure, reliable, and engaging. We must also expand our products and services, and offer competitive prices in an increasingly crowded and price-sensitive market. There is no assurance that we will be able to continue to do so, that we will be able to retain our current customers or attract new customers, or keep our customers engaged.

Used responsibly, DEPs provide significant benefits to retail investors, including enhanced access to customized products and services, lower costs, access to a broader range of products, better customer service, and improved compliance efforts leading to safer markets. Certain DEPs also raise potential risks, highlighting the need to ensure investor protection in connection with their use. The existing regulatory regime, however, addresses firms' use of DEPs, preserving their well-documented benefits, while appropriately managing potential risks and conflicts.

Specifically, the primary intersection between DEPs and our current regulatory regime are in two discrete areas:

● communications to retail investors (educational, informational, advertising, and marketing); and

● potential recommendations (i.e., personalized investment advice) to retail investors.

FINRA's communications (and related) rules and guidance cover the former, and the SEC's Regulation Best Interest ("Reg BI") covers the latter. The Company believes that the existing federal securities laws and regulations, and FINRA rules, are sufficient to fulfill the SEC's investor protection and market integrity missions with respect to DEPs.

The genesis and growth of DEPs in the securities industry today reflect the manner in which retail investors increasingly engage in every aspect of their lives, that is, digitally, online, and interactively, using the latest technologies and platforms. It is also driven, in part, by the manner in which many retail investors now choose to transact and invest, that is, on a self-directed basis (distinct from the model of receiving recommendations from a dedicated financial advisor). Many retail investors want to make their own investment decisions and manage their own investment risks, including market risks, product complexity, leverage, margin, and trading frequency. Regardless, for all retail investors, DEPs provide the latest technologies, tools, information, data, and education to facilitate and enhance their investment experience. DEPs can also offer retail investors a simplified, easily understandable path to effective financial planning and financial literacy at their digital fingertips. Firms' use of DEPs helps meet the demand of retail investors to engage and transact in the manner of their choosing. In meeting that demand, DEPs not only strengthen existing client relationships, but also have been appropriately credited with improving investor access and opportunity on the latest investment platforms, resulting in a significant, well-documented increase in retail investor participation in the capital markets.

In fact, DEPs are providing new useful channels for delivering investor education tools and resources to retail investors. Retail investors are better at educating themselves about the risks and features of prospective products and services, and ultimately, transacting in a manner that is consistent with their investment goals and risk tolerance. Relevant studies support the view that effective DEP communications can help retail investors make more responsible decisions and ultimately improve their financial outcomes.

Investor protection is paramount to our retail customers. Accordingly, the Company is cognizant of the potential risks associated with certain DEPs and the need to ensure investor protection in connection with their use. While DEPs have the potential to encourage beneficial investor behavior, certain DEPs may have the potential to encourage retail investors to transact in a manner that may be inconsistent with their investment goals or risk tolerance. As the Commission notes, some have also expressed concerns that certain DEPs may encourage frequent trading, options trading, trading on margin, and trading in complex securities products. The Company is not involved with any of the foregoing practices.

To date, the Company does not have any sophisticated digital engagement processes to engage retail customers. The Company allows pop-ups on its website, and utilizes email marketing and social media posts to bring attention to potential users on the Company platform. The Company provides FAQs, instructional videos and tutorials as part of its investor education resources.

INX acknowledges the need to address these potential conflicts. DEPs should never mislead clients and should always present information in a manner that is fair and balanced. It is important to note, however, that these potential conflicts are not new to the industry. In fact, they are the same potential conflicts that arise in connection with any medium or form of firm communication or engagement with a client. DEPs are merely a different medium or form. And, as discussed further below, DEPs are already subject to the same compliance and regulatory obligations that the firm owes with respect to every other communication or engagement with a client, including full disclosure of all relevant risks. Preserving individual retail investors' interest in autonomy, preference, choice, and access to new investment opportunities, which DEPs may facilitate, is essential to ensuring that these investors have the means to effectively manage their short- and long-term financial objectives, and their wealth generally.

As discussed further below, assuming firms are meeting their compliance and regulatory obligations with respect to DEP use under the current regulatory regime, there is no new or different regulatory interest in preventing or limiting firms from using DEPs to facilitate the trading activities and investment experiences in which these retail investors have chosen to engage.

For broker-dealers, these provisions include, without limitation:

● The anti-fraud provisions of the federal securities laws and FINRA rules;

● Account opening, KYC, and other due diligence approval obligations;

● Standard of conduct;

● Disclosure obligations;

● Reporting and other financial responsibility requirements;

● Communications with the public rules;

● Supervision obligations and insider trading procedures;

● Recordkeeping obligations;

● Customer complaints; and

● Privacy and cybersecurity.

The foregoing overview of select rules and regulations, as well as additional regulatory obligations, demonstrate the comprehensive nature of broker-dealer regulation generally, as well as the specific regulations relevant to the use of DEPs and related tools and methods today.

With respect to educational and informational communications to retail investors, as noted above, INX provides FAQs with videos and tutorials to develop and provide investment education tools.

As discussed above, retail investors derive significant benefits from tools that deliver education and information about financial services and products. All educational and informational communications, like all communications generally, must be fair, balanced, and not misleading under our existing regulatory regime. Retail investors are already well protected by these laws and rules.

With respect to advertising and marketing communications to retail investors, such communications are likewise already addressed by the existing ruleset. FINRA's communications rules already apply to all forms of electronic, hard copy, and other means of advertising and marketing communication, and readily cover DEPs. DEP-related advertising and marketing communications should continue to be subject to, and regulated by these well-established, existing regulatory standards.

 

***Our use of DEPs may be impacted by current and potential future regulations, which may adversely affect our business, operating results and financial condition.***

Our success depends on our ability to retain existing customers and attract new customers, including ecosystem partners, to increase engagement with our products, services, and platform, which is done in part by the use of DEPs. While DEPs have the potential to encourage beneficial investor behavior, certain DEPs may have the potential to encourage retail investors to transact in a manner that may be inconsistent with their investment goals or risk tolerance.

The genesis and growth of DEPs in the securities industry today has led to increased SEC scrutiny in the way companies utilize DEPs, including the risk that certain DEPs may encourage frequent trading, options trading, trading on margin, and trading in complex securities products. Current and future regulations regarding the use of DEPs may subject us to audits, inquiries, whistleblower complaints, adverse media coverage, investigations, severe criminal, or civil sanctions, damage our reputation, or result in fines or proceedings by governmental agencies and private claims and litigation, any of which could adversely affect our business, operating results, and financial condition.

There is a risk that, as we expand, we may assume liabilities for breaches experienced by any companies we acquire. Additionally, there are potentially inconsistent world-wide government regulations pertaining to data protection and privacy. Despite our efforts to comply with applicable laws, regulations and other obligations relating to privacy, data protection, and information security, it is possible that our practices, offerings, or platform could fail, or be alleged to fail, to meet applicable requirements. For instance, the overall regulatory framework governing the application of privacy laws to blockchain technology is still highly undeveloped and likely to evolve. Our failure, or the failure by our third-party providers or partners, to comply with applicable laws or regulations and to prevent unauthorized access to, or use or release of personal data, or the perception that any of the foregoing types of failure has occurred, even if unfounded, could subject us to audits, inquiries, whistleblower complaints, adverse media coverage, investigations, severe criminal, or civil sanctions, damage our reputation, or result in fines or proceedings by governmental agencies and private claims and litigation, any of which could adversely affect our business, operating results, and financial condition.

 

***Our ability to continue to develop our trading platforms faces operational, technological and regulatory challenges and we may not be able to continue to develop this business as contemplated.***

 

We may not be able to continue to develop the platforms as contemplated by our business model. In addition, a number of factors could materially adversely affect our ability to commercialize and generate any profits from our business.

The structuring and maintenance and further development of our trading platforms could lead to unanticipated and substantial costs, delays or other operational or financial difficulties. Our platforms are complex and their maintenance and further development requires the integration of multiple technologies and the development of software.

There can be no assurance that our platforms will gain the acceptance of customers or other market participants. Because blockchain asset trading is still in its early stages, it is difficult to predict the preferences and requirements of blockchain asset traders and our platform design and technology may be incompatible with new or emerging forms of blockchain assets or related technologies. Failure to achieve acceptance would impede our ability to develop and sustain a commercial business.

While the trading platform of INXS is a registered broker-dealer and FINRA member that operates an SEC- recognized alternative trading system and the INXD trading platform is licensed as a money transmitter in multiple states, there can be no assurance our platform will qualify for additional registrations that we are seeking or we plan to seek with the SEC, FINRA, U.S. state regulators and various other regulatory bodies both in the U.S. and in other countries. We are licensed or otherwise qualified to operate as a money transmitter in 48 U.S. states plus Washington D.C. and Puerto Rico. In addition, if in the future we determine to proceed with the establishment of a platform for the trading of cryptocurrency-based derivatives, we would be required to seek registrations with other regulatory bodies, such as the CFTC.

We may fail to qualify for registrations under any of these authorities or we may be required to alter our business model as currently contemplated in order to meet the requirements of these regulatory authorities. Either of these results would have a broad impact on us and could have a material adverse effect on our businesses, financial condition, results of operations and prospects and, as a result, investors could lose all or most of their investment.

Because distributions to the INX Token holders are dependent on our cash flow, our failure to continue to develop the Company platforms, failure of the platforms to gain regulatory approvals or failure of the platforms to gain acceptance may prevent us from paying a distribution to the INX Token holders. Such adverse effects would impact the utility, liquidity, and the trading price of INX Tokens and potentially render INX Tokens worthless.

Firms in the financial services industry have experienced increased scrutiny in recent years. Such regulatory or other actions may lead to penalties, fines, disbarment and other sanctions which could place restrictions or limitations on our operations and otherwise have a material adverse effect on our businesses.

***We expect to face intense competition from other companies and, if we are not able to successfully compete, our business, financial condition and operating results will be materially harmed.***

 

The digital assets industry is highly innovative and rapidly evolving, with frequent introductions of new products and services, and subject to uncertain and evolving industry and regulatory requirements. Although we strongly believe that our key competitive advantage is the ability to offer digital assets and security tokens on a single trading platform and within a regulated and fully transparent environment as a public company, we expect competition to further intensify in the future as existing and new competitors introduce new products or enhance existing service offerings. We compete against a number of companies that focus on traditional financial services and those that focus on blockchain-based services.

We expect to encounter competition in all aspects of our business, including from entities having substantially greater capital and resources, offering a wide range of products and services and in some cases operating under a different and possibly less stringent regulatory regime.

We will face competition from other securities, futures and securities option exchanges; over-the-counter markets (OTC); clearing organizations; large industry participants; swap execution facilities; alternative trade execution facilities; technology firms, including electronic trading system developers, and others. New entrants may enter the market with alternative methods of providing trade execution and related services, and existing competitors may launch new initiatives.

Our main competitors fall into the following categories:

● traditional financial technology and brokerage firms that have entered the crypto asset market in recent years and offer overlapping features targeted at our customers; and

● companies focused on the crypto asset market, some of whom adhere to local regulations and directly compete with our platform, and many who choose to operate outside of local rules and regulations or in jurisdictions with less stringent local rules and regulations and are potentially able to more quickly adapt to trends, support a greater number of crypto assets, and develop new crypto-based products and services due to a different standard of regulatory scrutiny.

Many of these competitors have greater financial, marketing, technological and personnel resources than we do. In addition, many of our competitors may offer a wider range of bundled services, have broader name recognition, and have larger customer bases than we do.

Due to our regulated status in several jurisdictions and our commitment to legal and regulatory compliance, we have not been able to offer many popular products and services, including products and services that our unregulated or less regulated competitors are able to offer to a group that includes many of our customers, which may adversely impact our business, financial condition, and results of operations.

In recent years, our commitment to compliance and the attendant customer-facing requirements, including customer due diligence requirements, have resulted in our customers transferring significant funds and crypto assets to unregulated or less regulated competitors. We also have expended significant managerial, operational, and compliance costs to meet the legal and regulatory requirements applicable to us in the United States and other jurisdictions in which we operate, and expect to continue to incur significant costs to comply with these requirements, which unregulated or less regulated competitors have not had to incur.

Many innovative start-up companies and larger traditional financial services companies have made, and continue to make, significant investments in research and development, and we expect these companies to continue to develop similar or superior products and technologies that compete with our products. Further, more traditional financial and non-financial services businesses may choose to offer blockchain-based services in the future as the industry gains adoption.

Our existing competitors have, and our potential competitors are expected to have, various competitive advantages over us, such as:

● the ability to trade crypto assets and offer products and services that we do not support or offer on our platform (due to constraints from regulatory authorities, our banking partners, and other factors) such as tokens that constitute securities or derivative instruments under U.S. or foreign laws;

● greater name recognition, longer operating histories, larger customer bases, and larger market shares;

● larger sales and marketing budgets and organizations;

● greater resources to make acquisitions;

● larger and more mature intellectual property portfolios;

● established core business models outside of the trading of crypto assets, allowing them to operate on lesser margins or at a loss;

● operations in certain jurisdictions with lower compliance costs and greater flexibility to explore new product offerings; and

● substantially greater financial, technical, and other resources.

Our ability to develop competitive advantages will require continued enhancements to our products, investment in the development of our services, additional marketing activities and enhanced customer support services. There can be no assurance that we will have resources to make sufficient investments in the development of our services, that our competitors will not devote significantly more resources to competing services or that we will otherwise be successful in developing market share. If competitors offer superior services, our market share could be affected and this would adversely impact our business and results of operations.

***Failure to keep up with rapid changes in industry-leading technology, products and services could negatively impact our results of operations.***

 

The financial services industry is subject to rapid technological change and evolving industry standards. User demands become greater and more sophisticated as the dissemination of products and information to customers increases. If we are unable to anticipate and respond to the demand for new services, products and technologies, innovate in a timely and cost-effective manner and adapt to technological advancements and changing standards, we may be unable to compete effectively, which could have a material adverse effect on our business. Many of our competitors have significantly greater resources than we do to fund research and development initiatives. Moreover, the development of technology-based services is a complex and time-consuming process. New products and enhancements to existing products can require long development and testing periods. Significant delays in new product releases, failure to meet key deadlines, or significant problems in creating new products could negatively impact our revenues and profits.

***The extent to which blockchain assets are used to fund criminal or terrorist enterprises or launder the proceeds of illegal activities could materially impact our business.***

 

The potential, or perceived potential, for anonymity in transfers of bitcoin and similar blockchain assets, as well as the decentralized nature of blockchain networks, has led some terrorist groups and other criminals to solicit bitcoins and other blockchain assets for capital raising purposes. As blockchain assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies have been examining the operations of blockchain assets, their users and exchanges, concerning the use of blockchain assets for the purpose of laundering the proceeds of illegal activities or funding criminal or terrorist enterprises.

In addition to the current market, new blockchain networks or similar technologies may be developed to provide more anonymity and less traceability. There is also the potential that other blockchain asset trading platforms may court such illicit activity by not adhering to know-your-customer and anti-money laundering practices.

We may not be able to prevent illegal activity from occurring over our platforms. We may be unable to detect the unauthorized use of a KYC/AML vetted account on one of our platforms. Further, we may be unable to verify whether private keys for wallets containing INX Tokens have been transferred to third parties who have not completed our KYC/AML process. Although we have implemented procedures that will ensure that we remain in compliance with our KYC/AML obligations, we may not be successful in deterring or identifying illegal activity.

The use of blockchain assets for illegal purposes, or the perception of such use, over our platforms or on other trading platforms could result in significant legal and financial exposure, damage to our reputation, damage to the reputation of blockchain assets and a loss of confidence in the services provided by our platforms and the blockchain asset community as a whole. Our failure to meet our KYC/AML requirements could result in regulatory penalties which could have a materially adverse effect on our business.

***We may not have sufficient cash flow from operating activities, cash on hand and the ability to obtain borrowing capacity to finance required capital expenditures, fund strategic initiatives and meet our other cash needs. These obligations require a significant amount of cash, and we may need additional funds, which may not be readily available.***

 

The viability of our business is dependent on the availability of adequate capital to develop and maintain our business and meet our regulatory capital requirements. We will need to continue to invest in our operations for the foreseeable future to carry out our business plan. If our business does not attract clients and does not achieve the expected operating results, we will need to seek additional financing or revise our business plan. Our ability to borrow additional funds may be impacted by financial lending institutions' ability or willingness to lend to us on commercially acceptable terms.

Low levels of operating cash flow together with limited access to capital or credit in the future could have an impact on our ability to meet our regulatory capital requirements, invest in our software and infrastructure, engage in strategic initiatives, make acquisitions or strategic investments in other companies, react to changing economic and business conditions, repay our outstanding debt, or make dividend payments. Such outcomes could have an adverse effect on our business, financial condition and operating results.

***Our securities business exposes us to capital requirements and regulatory risk.***

 

Broker-dealers are also subject to regulatory capital requirements promulgated by the applicable regulatory and exchange authorities of the countries in which they operate. The failure to maintain required regulatory capital may lead to suspension or revocation of a broker-dealer registration and suspension or expulsion by a regulatory body. If existing cash together with cash from operations are not sufficient, we may need to reject orders from clients and we may ultimately breach regulatory capital requirements.

Furthermore, if our broker-dealer subsidiaries are subject to new or modified regulatory capital rules or requirements, or fines, penalties or sanctions due to increased or more stringent enforcement, it could materially limit or reduce the liquidity we may need to expand or even maintain our then-present levels of business, which could have a material adverse effect on our business, results of operations and financial condition.

The Company is now affiliated with OpenDeal Broker, LLC, OpenDeal Portal, LLC and INX Securities, LLC, as a result of its acquisition by Republic in November 2025. See Item 4.A. "Information on the Company–History and Development of the Company" for more information on the Republic acquisition.

***We may be unable to maintain minimum net capital that meets regulatory requirements.*** 

As a broker-dealer, we must maintain minimum net capital that satisfies the requirements under Rule 15c3-1 under the Exchange Act. Depending upon our future business activities, we may become subject to additional capital requirements in the United States or other foreign jurisdictions in which we may conduct business in the future.

In the U.S. we have obtained licenses or are otherwise qualified to operate as money transmitters (or the equivalent in the states where such licenses or equivalent are required to conduct our business) in 48 U.S. states as well as in the District of Columbia and Puerto Rico. As a licensed money transmitter, we are subject to, among other things, capital requirements including the net worth of our subsidiary, INXD.

Current and future regulations may require us to accumulate capital reserves in our subsidiaries which could limit our ability to carry on or expand our operations or may result in higher than anticipated costs for financing our operations.

In addition, in connection with the offering of the INX Tokens, we have established a Cash Fund, as defined below, by reserving 75% of the gross proceeds less payments to underwriters from our initial public offering in excess of $25 million to be available to cover customer and Company losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. We refer to this amount as our "Cash Fund" or "Reserve Fund." The Cash Fund was intended to provide additional protection to our customers and maintain the financial stability of the Company. In connection with the Arrangement (as defined below), as of the date of this annual report, $31,205 of INX's Cash Fund was distributed to the INX Token holders, and $3,120 remained in INX's Cash Fund for pending distribution procedures to eligible holders. Following the completion of such pending distributions, the Cash Fund shall have been fully distributed. As a result of the foregoing, upon the full distribution of the Cash Fund, the Company will no longer maintain any Cash Fund or Reserve Fund. Accordingly, there will be no dedicated financial reserve available to cover customer or Company losses arising from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, or counterparty defaults. The absence of the Cash Fund may expose customers and the Company to greater financial risk in the event of such occurrences, and there can be no assurance that the Company will have sufficient resources to absorb or compensate for any such losses. Investors and customers should be aware that the protections previously afforded by the Cash Fund will no longer be available following its full distribution.

In addition, we invest a significant level of resources in the continued development and operation of our trading platform and the development of our service offering. We cannot guarantee that we will have or will maintain sufficient funding to continue investing in our business and successfully execute our business plan.

If our reserves are insufficient to cover our future liabilities, we may be required to raise additional capital. Any one or all of these outcomes may have a material effect on our business.

***There can be no assurance that we will have sufficient assets or that we will be able to obtain and maintain liability insurance on acceptable terms or with adequate coverage to cover our liabilities.***

Further, insurance coverage against such losses is expensive and may not be available in the future on acceptable terms, or at all. Available insurance coverage may be subject to unfavorable terms and conditions and require payments of significant deductibles, or it may not be sufficient to cover all losses in the case of a claim. The inability to obtain sufficient insurance coverage on reasonable terms or to otherwise protect against potential liability claims could result in us becoming subject to significant liabilities that are uninsured.

***Risks to customers' assets in the event of insolvency or bankruptcy of any INX entity***

 

Customer custodial assets represent restricted funds maintained in segregated accounts that are held in accounts for the exclusive benefit of customers. The Company holds liquid assets, as defined by applicable regulatory requirements equal to at least 100% of the aggregate amount of all customers custodial liabilities. All customer funds are held in their original currency one-to-one at the firm's digital assets custodian as well as at a specifically designated U.S. bank account. The firm does not hypothecate, invest or use customer funds for any other purpose.

The Company places great importance on safeguarding customers' crypto assets. During 2023, the Company implemented segregation of customer funds on deposit with certain bank partners following the CFTC segregation model under the CEA Rule 1.20, where customer funds are to be segregated and separately accounted for, to the extent feasible and available. We achieved this protection by amending contractual agreements with our custodian and certain banks holding customer funds. Such amendments, among other related provisions, include the addition of a written segregation acknowledgement letter issued by our custodian and banks acknowledging certain accounts to be specifically designated as holding customer funds and prohibit the right of offset between customer and house assets deposited by INX and held by such custodians and banks. The key objective of the contractual revisions is to separate assets held in specifically designated customer accounts from the Company's general estate, thus making them bankruptcy remote and not subject to claims of general creditors, a required practice under CFTC rules, and a framework that we believe can be similarly applied by digital assets intermediaries. Pursuant to this segregation mechanism, the Company modified its services agreements with the custodian holding digital assets in specifically designated, and titled as such, custodial accounts on a segregated basis for the sole benefit of the Company's customers. Under such agreements, assets held in segregated accounts are intended to be recognized as customer property and in the event that the Company becomes subject to either a voluntary or involuntary petition for relief under the U.S. Bankruptcy Code, under the segregation acknowledgement terms between the Company and the bank or the custodian, the Company believes that the bank or the custodian would have no obligation to release customer funds and digital assets held in the custodial accounts, except upon instructions of the trustee in bankruptcy or pursuant to a bankruptcy court order. Moreover, the segregation requirement prohibits the right of offset between customer and proprietary assets held by the bank or the custodian.

Accordingly, the Company believes that a court would not treat customers' crypto assets as part of the Company's general estate; however, due to the novelty of crypto assets, there can be no assurance that a bankruptcy court would not determine to include these customer assets as part of our bankruptcy estate in the event of our insolvency or bankruptcy.

 ****

***Our failure to safeguard and manage our customers' fiat currencies and crypto assets could adversely impact our business, operating results, and financial condition.***

As of December 31, 2025, our customer funds in fiat were held with our partnering banks, Byline Bank and BMO Bank, which are not affiliated with INX. All customer assets for clients trading digital assets on INXD are held at Byline Bank under a specifically designated custodial account. Customer funds for clients trading security tokens on INXS were held at Layer2financial's (dba "Rail") partner financial institutions until April 30, 2026. Rail is not an affiliated company of the Company. As of April 30, 2026, INX Securities, LLC became the custodian of all customer cash, which is being held in BMO Special Reserve Account.

Supported crypto assets are not insured or guaranteed by any government or government agency. The ability to manage and accurately safeguard customer assets requires a high level of internal controls. As our business continues to grow and we expand our product and service offerings, we must continue to strengthen our associated internal controls and ensure that our partners do the same. Our success and the success of our offerings requires significant public confidence in our and our partners' ability to properly manage customers' balances and handle large and growing transaction volumes and amounts of customer funds. In addition, we are dependent on our partners' operations, liquidity, and financial condition for the proper maintenance, use, and safekeeping of these customer assets. Any failure by us or our partners to maintain the necessary controls or to manage customer crypto assets and funds appropriately and in compliance with applicable regulatory requirements could result in reputational harm, litigation, regulatory enforcement actions, significant financial losses, lead customers to discontinue or reduce their use of our services, and result in significant penalties and fines and additional restrictions, which could adversely impact our business, operating results, and financial condition.

Moreover, because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors. This may result in customers finding our custodial services more risky and less attractive and any failure to increase our customer base, discontinuation or reduction in use of our platform and products by existing customers as a result could adversely impact our business, operating results, and financial condition.

Our security technology is designed to prevent, detect, and mitigate inappropriate access to our systems, by internal or external threats. We believe we have developed and maintained administrative, technical, and physical safeguards designed to comply with applicable legal requirements and industry standards. However, it is nevertheless possible that hackers, employees or service providers acting contrary to our policies, or others could circumvent these safeguards to improperly access our systems or documents, or the systems or documents of our business partners, agents, or service providers, and improperly access, obtain, misuse customer crypto assets and funds. The methods used to obtain unauthorized access, disable, or degrade service or sabotage systems are also constantly changing and evolving and may be difficult to anticipate or detect for long periods of time.

Any loss of customer cash or crypto assets could result in a substantial business disruption, adverse reputational impact, inability to compete with our competitors, and regulatory investigations, inquiries, or actions. Also, any security incident resulting in a compromise of customer assets could result in substantial costs to us and require us to notify impacted individuals, and in some cases regulators, of a possible or actual incident, expose us to regulatory enforcement actions, including substantial fines, limit our ability to provide services, subject us to litigation, significant financial losses, damage our reputation, and adversely affect our business, operating results, financial condition, and cash flows.

***We may experience systems failures or capacity constraints that could materially harm our ability to conduct our operations and execute our business strategy.***

 

We are heavily dependent on the capacity, reliability and security of the computer and communications systems and software supporting our operations. We receive and/or process a large portion of our trade orders through electronic means, such as through public and private communications networks. Our systems, or those of our third party providers, may fail or be shut down or, due to capacity constraints, may operate slowly, causing one or more of the following to occur:

● unanticipated disruptions in service to our customers;

● slower response times and delays in our customers' trade execution and processing;

● failed settlement of trades;

● incomplete or inaccurate accounting, recording or processing of trades;

● financial losses;

● security breaches;

● litigation or other customer claims;

● loss of customers; and

● regulatory sanctions.

If any of our systems do not operate properly, are compromised or are disabled, including as a result of system failure, employee or customer error or misuse of our systems, we could suffer financial loss, liability to customers, regulatory intervention or reputational damage that could affect demand by current and potential users of our market.

We will need to continue to upgrade, expand and increase the capacity of our systems as our business grows and as we execute our business strategy. Although many of our systems are designed to accommodate additional volume and products and services without redesign or replacement, we will need to continue to make significant investments in additional hardware and software to accommodate the increases in volume of transactions and order transaction traffic and to provide processing services to third parties. If we cannot increase the capacity and capabilities of our systems to accommodate an increasing volume of transactions and to execute our business strategy, our ability to maintain or expand our businesses would be adversely affected.

***We may face cyber-attack and other cyber security risks.***

 

We regard the secure transmission of confidential information and the ability to continuously transact and clear on our electronic trading platforms as critical elements of our operations. Our technology, systems, networks, products, services and people, and those of our third party service providers and customers, may be vulnerable to targeted attacks, unauthorized access, fraud, computer viruses, denial of service attacks, malware, ransomware, social engineering attacks, phishing attacks, human error, employee theft, terrorism, firewall or encryption failures and other security problems. Attackers may seek to steal information about our technology, financial data or user information or take other actions that would be damaging to the Company and/or holders of INX Tokens.

The Company regularly faces attempts by possible malicious parties to try to gain unauthorized access to our systems, or to introduce malicious software to our systems. This will likely continue on a regular basis in the future. Our networks or data centers or those of our customers or third-party vendors may be subject to the same kind of attacks. Further, we may also be subject to increasing risks in connection with global conflicts; for example, the Israel-Hamas conflict, of a nature similar to those discussed above. To date, no cyber-attacks or attempts by third parties have resulted in any material impact to our business or operations.

While the Company will continue to attempt to prevent such attacks and other threats against our systems, products, and networks, there is no guarantee that we will continue to be able to avoid material impacts to our business. We remain at risk of suffering an attack or intrusion that could affect the Company's reputation or cause monetary loss. Additionally, such attacks could result in government inquiries, investigations, or other proceedings. Such actions could result in significant penalties or costs, including legal costs to defend such inquiries or investigations.

While we maintain a Cash Fund, as defined above, to be available to cover customer and Company losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses, there is no guarantee that the damages resulting from the attacks described above won't exceed the available balance of the Cash Fund.

In addition, as the regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs.

***The INX Token Distributed Ledger is publicly available. The misuse or theft of this information may give rise to breaches of privacy laws, fines and sanctions.***

 

For many blockchain assets, distributed ledgers are used to record transfers of ownership of the asset. Information regarding ownership is most commonly represented by ledger balances and an owner's public wallet address. Such information includes the complete transfer history from the inception of the respective blockchain asset and such information regarding ownership of the assets, including the public wallet address, is generally available to the public. For many blockchain assets, personal identifying information that is used to associate a public wallet address with its owner is typically maintained in a separate database that is not exposed to the public.

There are a number of data protection, security, privacy and other government- and industry-specific requirements that are implicated by utilizing a distributed ledger. If blockchain networks are unable to satisfy data protection, security, privacy, and other government-and industry-specific requirements, their growth could be harmed.

***Security attacks against the Company could result in a loss of the Company's blockchain assets, including the INX Tokens, theft of personal information of our customers or damage to our reputation and our brand, each of which could adversely affect an investment in INX Tokens or the Company. We could be required to incur significant expense to protect our systems and/or investigate any alleged attack.***

 

Security breaches, computer malware and computer hacking attacks have continued to plague blockchain networks throughout 2025, underscoring persistent vulnerabilities in both centralized and decentralized cryptocurrency services. According to blockchain analytics and industry reporting, cryptocurrency scams and fraud may have resulted in losses of up to $17 billion in 2025. Our security system and operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of ours, or otherwise. Techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be designed to remain dormant until a predetermined event. Outside parties may also attempt to fraudulently induce employees of ours to disclose sensitive information in order to gain access to our infrastructure. Furthermore, we believe that, as our assets grow, the Company may become a more appealing target for security threats such as hackers and malware.

In addition, the Company holds private keys that allow it or its transfer agent, as applicable, the ability to "freeze" or automatically reject any digital wallet address from participating in transfers of INX Tokens, or unilaterally transfer INX Tokens out of a third-party digital wallet. If such private keys are compromised, all owners of INX Tokens are at risk of losing the ability to transfer their INX Token out of their digital wallet or they may have their INX Token transferred out of their digital wallet without their permission.

Our security measures may prove insufficient depending upon the attack or threat posed. We may be unable to anticipate these techniques or implement adequate preventative measures. As a result, an unauthorized party may obtain access to our private keys, company and customer data or blockchain assets.

Any such breach or unauthorized access could result in significant legal and financial exposure, damage to our reputation, and a loss of confidence in the services we provide that could potentially have an adverse effect on our business, while resulting in regulatory penalties or the imposition of burdensome obligations by regulators. In the event of a security breach, we may be forced to cease operations, or suffer a reduction in assets, the occurrence of each of which could adversely affect an investment in the Company.

***We are subject to risks in using third-party service providers, including custodians and other agents.***

 

We depend on the services of custodians and other agents and third-party service providers to carry out certain transactions and other business functions (including without limitation, Bitgo, our custodian). Errors and mistakes made by these third parties may be attributed to us and subject us to reputational damage, penalties or losses. We may be unsuccessful in seeking reimbursement or indemnification from these third-party service providers.

Furthermore, in the event of the insolvency of a custodian, we may be unable to recover equivalent assets in full as we may rank among the custodian's unsecured creditors in relation to its assets. In addition, a custodian may not segregate our cash (including funds of our customers) from its own cash, and therefore we may rank as unsecured creditors in relation to that cash. The inability to recover assets from the custodian could have a material adverse effect on our results of operations, financial condition and cash flow.

The counterparty to one or more of our contractual arrangements could default on its obligations under the contract. Default risk may arise from events or circumstances that are difficult to detect, foresee or evaluate. In addition, the default by large market participants that the market experienced led to significant liquidity problems for other market participants, which could in turn expose us to significant losses. If a counterparty defaults, we may be unable to take action to cover the exposure and could incur material losses and legal and reputational damages. We may not accurately anticipate the impact of market stress or counterparty financial condition and, as a result, we could take insufficient action to reduce these risks effectively, which, if left unmitigated, could have a material adverse effect on our results of operations, financial condition and cash flow.

We are not restricted from dealing with any particular counterparty or from concentrating any or all of our transactions with one counterparty. The consolidation and elimination of counterparties may increase our concentration of counterparty risk.

***The loss of key personnel could have a material adverse effect on us.***

 

Our success depends solely on the continued services of key personnel, particularly senior management and officers of the company, who have extensive market knowledge and long-standing industry relationships. In particular, our reputation among and our relationships with key blockchain industry leaders are the direct result of a significant investment of time and effort by our senior management to build credibility in a highly specialized industry. The loss of services of any member of senior management could diminish our business and growth opportunities and our relationships with key leaders in the blockchain industry and could have a material adverse effect on us.

***Our business will be adversely affected if we are unable to attract and retain talented employees, including sales, technology, operations and development professionals.***

 

Our business operations will require highly specialized knowledge of the financial industry and of technological innovation as it applies to the financial industry. If we are unable to hire or retain the services of talented employees, including executive officers, other key management and sales, technology, operations and development professionals, we would be at a competitive disadvantage. In addition, recruitment and retention of qualified staff could result in substantial additional costs. The loss of the services of one or more of our executive officers or other key professionals or our inability to attract, retain and motivate qualified personnel, could have a material adverse effect on our ability to operate our business.

***We have not identified all the persons that we will need to hire to provide services and functions critical to the development of the business and no assurance can be given that we will be able to hire the necessary persons on acceptable terms, if at all.***

 

Our business has not identified all the persons that we will need to hire to provide services and functions critical to the continued development of the business. If we are unable to hire persons with the necessary expertise on terms acceptable to us then we will not be able to continue to develop our business as contemplated. Further, even if we are able to hire such service providers, they might be unable to meet our specifications and requirements, which could have a material adverse effect on our ability to develop and evolve our business plan.

***The size, nature and complexity of the Company's business could make it susceptible legal proceedings which may have an adverse effect on our reputation and brand and our business, operating results, and financial condition***

 

The size, nature and complexity of the Company's business could make it susceptible to various claims, both in litigation and binding arbitration proceedings, legal proceedings, and government investigations, due to the heightened regulatory scrutiny following the recent disruptions in the crypto asset markets. The Company believes that since the digital asset industry generally is a relatively new business sector, it is more likely subject to government investigation and regulatory determination, particularly following the recent cryptocurrency market participant bankruptcies. Any claims, regulatory proceedings or litigation that could arise in the course of the Company's business could have a material adverse effect on the Company, its business or operations, or the industry as a whole.

The scope, determination, and impact of claims, lawsuits, government and regulatory investigations, enforcement actions, disputes, and proceedings to which we are subject cannot be predicted with certainty, and may result in:

● substantial payments to satisfy judgments, fines, or penalties;

● substantial outside counsel, advisor, and consultant fees and costs;

● substantial administrative costs, including arbitration fees;

● additional compliance and licensure requirements;

● loss or non-renewal of existing licenses or authorizations, or prohibition from or delays in obtaining additional licenses or authorizations, required for our business;

● loss of productivity and high demands on employee time;

● criminal sanctions or consent decrees;

● termination of certain employees, including members of our executive team;

● barring of certain employees from participating in our business in whole or in part;

● orders that restrict our business or prevent us from offering certain products or services;

● changes to our business model and practices;

● delays to planned transactions, product launches or improvements; and

● damage to our brand and reputation.

Further, we believe increasingly strict legal and regulatory requirements and additional regulatory investigations and enforcement, any of which could occur or intensify, may result in changes to our business, as well as increased costs, and supervision and examination for ourselves, our affiliates, and service providers. Moreover, new laws, regulations, or interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions, including preventing or delaying us from offering certain products or services offered by our competitors or could impact how we offer such products and services. Adverse changes to, or our failure to comply with, any laws and regulations have had, and may continue to have, an adverse effect on our reputation and brand and our business, operating results, and financial condition.

As of this date, the Company is not aware of any legal proceedings or government investigations, pending or known to be threatened, in the United States or in other jurisdictions against the Company or its affiliates. However, the Company may be subject to regulatory oversight by numerous state, federal, and foreign regulators and we may become subject to various legal proceedings, inquiries, investigations, and demand letters that arise in the course of our business.

***As a financial services provider, we might be subjected to significant litigation risk and potential commodity and securities law liability.***

 ****

Many aspects of our business involve substantial litigation risks. We could be exposed to substantial liability under federal and state laws and court decisions, as well as rules and regulations promulgated and/or direct actions brought by the SEC, state securities regulators and other U.S. regulatory agencies.

These risks include, among others, potential liability from disputes over terms of a trade, the claim that a system failure or delay caused monetary losses to a customer, that we entered into an unauthorized transaction, changes to our business or offerings covered by applicable securities regulation, including the INX Token, that we provided materially false or misleading statements in connection with a transaction or that we failed to effectively fulfill our regulatory oversight responsibilities. We may be deemed an underwriter under the Securities Act with regard to our role and involvement with respect to any initial offerings of securities on the INXS trading platform, and our failure to comply with applicable federal securities laws may expose us to legal liability. We may be subject to disputes regarding the quality of trade execution, the settlement of trades or other matters relating to our services. We may become subject to these claims as a result of failures or malfunctions of our systems and services we provide.

We could incur significant legal expenses defending claims, even those without merit. In addition, an adverse resolution of any future lawsuit or claim against us could have a material adverse effect on our business and our reputation. To the extent we are found to have failed to fulfill our regulatory obligations, we could lose our authorizations or licenses or become subject to conditions that could make future operations more costly and impairing our profitability.

***Our compliance and risk management programs might not be effective and may result in outcomes that could adversely affect our reputation, financial condition and operating results.***

 

Our ability to comply with applicable laws and rules is largely dependent on our establishment and maintenance of compliance, review and reporting systems, as well as our ability to attract and retain qualified compliance and other risk management personnel. We face the risk of significant intervention by regulatory authorities, including extensive examination and surveillance activity.

While we have devoted significant resources to develop our compliance policies and procedures and expect to continue to do so in the future, we cannot assure you that our compliance policies and procedures will always be effective or that we will always be successful in monitoring or evaluating our risks. In the case of alleged non-compliance with applicable laws or regulations, we could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits, including by customers, for damages, which could be significant. Any of these outcomes may adversely affect our reputation, financial condition and operating results.

***Operational risks, such as misconduct and errors of our employees or entities with which we do business, are difficult to detect and deter and could cause us reputational and financial harm.***

Our employees and agents could engage in misconduct which may include conducting and concealing unauthorized activities, improper use or unauthorized disclosure of confidential information. We are at risk that our employees may engage in insider trading of the digital assets listed on one of our platforms which may lead to corporate actions, such as a suspension of trading, and legal actions that could have an adverse effect on the Company.

Further, our employees could make errors in recording or executing transactions for customers which would cause us to enter into transactions that customers may disavow and refuse to settle.

It is not always possible to deter misconduct by our employees, and the precautions we take to prevent and detect this activity may not be effective in all cases. Our ability to detect and prevent errors or misconduct by entities with which we do business may be even more limited. Such misconduct could subject us to financial losses or regulatory sanctions and materially harm our reputation, financial condition and operating results.

***Our operations of businesses outside of the United States and our acceptance of currencies other than the U.S. Dollar will subject us to currency fluctuation risk.***

We intend to expand globally and portions of our revenues and expenses will be denominated in currencies other than the U.S. dollar. Because our financial statements are presented in U.S. dollars, we must translate non-U.S. dollar denominated revenues, income and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period. These fluctuations may materially impact the translation of our non-U.S. results of operations and financial condition.

Increases or decreases in the value of the U.S. dollar against these other currencies may affect our operating results and the value of assets and liabilities denominated in foreign currencies.

***We accept certain cryptocurrencies as fees for services. Our holding of these cryptocurrencies will subject us to risks due to fluctuations in the value of these cryptocurrencies.***

We accept certain cryptocurrencies as payment fees for services. These cryptocurrencies will be held until sold. Proceeds from the sale of such cryptocurrencies will be dependent on the U.S. dollar trading value for the respective cryptocurrency based on the relevant market or markets for that cryptocurrency. Decreases in the trading value of a cryptocurrency while it is held by us will result in a decrease in the operating results of the Company.

For trading securities on the Company's ATS, fees are charged exclusively in US Dollars, and no crypto assets can be used as payment for these services. However, on the digital crypto platform, fees are paid in the same currency as the currency a customer receives from the trade itself. The crypto assets the Company accepts as a payment for fees depends on the crypto assets listed for trading on the platform which are as follows:

● BTC

● ETH

● LTC

● USDC

● AVAXC

● USDT

● DOT

● XRP

● PYUSD

● SOL

● POL

● TCS

● CC

***Crypto assets as payment fees for crypto and security token services.***

With regards to trading of digital assets, a transaction fee is charged and deducted from the customer account at the time of the order execution. The transaction fee is set as a percentage of the transaction value based on the fee schedule published on the Company's website (https://www.inx.co/fee-schedules/) and is charged in the currency of the consideration paid by the customer. For example, if a customer buys BTC with USD, the transaction fee would be charged in USD. The same process is followed with regards to transactions where one digital asset is purchased for another, for example, BTC is purchased with ETH. In this example, the transaction fee would be charged in ETH.

These cryptocurrencies are held until sold. Proceeds from the sale of such cryptocurrencies are dependent on the U.S. dollar trading value for the respective cryptocurrency based on the relevant market or markets for that cryptocurrency. Decreases in the fair value of a cryptocurrency while it is held by us will result in a decrease in the operating results of the Company.

To minimize market risk, the Company follows its policy on converting digital assets earned as transaction fees into U.S. dollars if such amounts exceed internally established limits.

***We may not be able to successfully execute our business strategy if we are deemed to be an investment company under the Investment Company Act of 1940.***

 

In general, under the Investment Company Act, a U.S. company that does not qualify to use one of the "private investment company" (or other specialized) exemptions from investment company status, that has made (or proposes to make) a public offering of its securities and that is, or hold itself out as being, engaged primarily in the business of investing, reinvesting or trading in securities must register, and is subject to regulation, as an investment company under that Act. In addition, in general, investment company status may apply (again, unless a specialized exemption is available) because a company owns "investment securities" (essentially, non-controlling interests in other companies' securities or controlling interests in companies that have the characteristics of an investment company) constituting more than 40% of the value of the investing company's unconsolidated assets (disregarding U.S. government securities and "cash items"). We intend that our future activities will not cause us to be considered an investment company.

Further, our subsidiaries, INXD and INXS, are engaged in the trading of cryptocurrencies and security tokens, respectively. INXS engages in trading security tokens that constitute securities. We believe that INXS qualifies to utilize an exemption from investment company status under Section 3(c)(2) of the Investment Company Act that applies to entities "primarily engaged in the business of underwriting and distributing securities issued by other persons, selling securities to customers, acting as broker, and acting as market intermediary, or any one or more of such activities, whose gross income normally is derived principally from such business and related activities."

Accordingly, we believe that the cryptocurrencies that we or our subsidiaries own and trade in are not securities. In the case of trading in security tokens by a subsidiary that qualifies to use the Section 3(c)(2) exemption from investment company status, our ownership interest in that subsidiary will not constitute an "investment security" (as a result of the availability of the exemption). As a result, we believe we are not primarily engaged in the business of investing, reinvesting or trading in securities and that investment securities will not constitute more than 40% of the unconsolidated value of our total assets after eliminating holdings in U.S. government securities and cash items.

While we believe that our business activities do not cause us to be an investment company, if we were deemed to be, and were required to register as an investment company, we would be forced to comply with substantive requirements under the Investment Company Act, including limitations on our ability to borrow, limitations on our capital structure, limitations on our ability to issue additional common stock, restrictions on acquisitions of interests in associated companies, prohibitions on transactions with affiliates, restrictions on specific investments, and compliance with governance, reporting, record keeping, voting, proxy disclosure and other statutory requirements and related rules and regulations. If we were forced to comply with those requirements, we would be required to change our structure and future operations from our current plans, could be prevented from successfully executing our business strategy and could be required to cease business.

***We need to implement strict finance and accounting systems, procedures and controls to operate our business.***

 

We are required to comply with a variety of reporting, accounting and other rules and regulations. Compliance with these requirements is expensive. We need to implement strict finance and accounting systems, procedures and controls to satisfy our reporting requirements and these requirements may increase our costs and require additional management time and resources. However, as an "emerging growth company" as defined in the JOBS Act we may not be required to, among other things, provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act or comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis). We have not completed an assessment, nor have our auditors tested our systems of internal controls. For as long as we are an "emerging growth company" under the JOBS Act, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal controls over financial reporting pursuant to Section 404. If our internal controls have undetected weaknesses or our internal control over financial reporting is determined to be ineffective, such failure could cause investors to lose confidence in our reported financial information, negatively affect the market price of the INX Token and adversely impact our business and financial condition.

***Negative publicity could damage our business.***

 ****

Developing and maintaining our reputation is critical to attracting and retaining customers and investors and for maintaining our relationships with our regulators. Our success depends on our ability to complete development of, successfully implement, and maintain the electronic trading systems that have the functionality, performance, reliability and speed required by our customers.

Crypto asset platforms are still relatively new. Many of our competitors are unlicensed, unregulated, operate without supervision by any governmental authorities, and do not provide the public with significant information regarding their ownership structure, management team, corporate practices, cybersecurity, and regulatory compliance. As a result, customers and the general public may lose confidence in crypto asset platforms, including regulated platforms like ours.

Since the inception of the crypto economy, numerous crypto asset platforms have been sued, investigated, or shut down due to fraud, manipulative practices, business failure, and security breaches. In many of these instances, customers of these platforms were not compensated or made whole for their losses. Larger platforms like us are more appealing targets for hackers and malware, and may also be more likely to be targets of regulatory enforcement actions.

In addition, there have been reports that a significant amount of crypto asset trading volume on crypto asset platforms is fabricated and false in nature, with a specific focus on unregulated platforms located outside the United States. Such reports may indicate that the market for crypto asset platform activities is significantly smaller than otherwise understood.

Negative perception, a lack of stability and standardized regulation in the crypto economy, and the closure or temporary shutdown of crypto asset platforms due to fraud, business failure, hackers or malware, or government mandated regulation, and associated losses suffered by customers may reduce confidence in the crypto economy and result in greater volatility of the prices of assets, including significant depreciation in value. Any of these events could have an adverse impact on our business.

Additionally, although we are not directly connected to the recent crypto asset market events, we may still suffer reputational harm due to our association with the crypto asset industry in light of the recent disruption in the crypto asset markets. Ongoing and future regulation and regulatory actions could significantly restrict or eliminate the market for or uses of certain crypto assets and/or may adversely affect the Company's business, reputation, financial condition and results of operations.

Negative publicity regarding our Company, INX Tokens, our key personnel or blockchain assets generally, whether based upon fact, allegation or perception and whether justified or not, could give rise to reputational risk which could significantly harm our business prospects.

Some of those risks include:

● any significant disruption in our products and services, in our information technology systems, or in any of the blockchain networks we support, could result in a loss of customers or funds and adversely impact our brand and reputation and our business, operating results, and financial condition;

● cyberattacks and security breaches of our platform, or those impacting our customers or third parties, could adversely impact our brand and reputation and our business, operating results, and financial condition;

● we are subject to an extensive and highly-evolving regulatory landscape and any adverse changes to, or our failure to comply with, any laws and regulations could adversely affect our brand, reputation, business, operating results, and financial condition;

● security issues, bugs, and software errors have been identified with many crypto assets and their underlying blockchain networks, some of which have been exploited by malicious actors. There are also inherent security weaknesses in some crypto assets, such as when creators of certain crypto networks use procedures that could allow hackers to counterfeit tokens. Any weaknesses identified with a crypto asset could adversely affect its price, security, liquidity, and adoption. If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software coordinating the actions of the computers) obtains a majority of the compute or staking power on a crypto network, as has happened in the past, it may be able to manipulate transactions, which could cause financial losses to holders, damage the network's reputation and security, and adversely affect its value.

Our brand and reputation are key assets and a competitive advantage. Maintaining, protecting, and enhancing our brand depends largely on the success of our marketing efforts, ability to provide consistent, high-quality, and secure products, services, features, and support, and our ability to successfully secure, maintain, and defend our rights to use the "INX" trademark and other trademarks important to our brand. We believe that the importance of our brand will increase as competition further intensifies. Our brand and reputation could be harmed if we fail to achieve these objectives or if our public image were to be tarnished by negative publicity, unexpected events, or actions by third parties. Unfavorable publicity about us, including our products, services, technology, customer service, personnel, and crypto asset or crypto asset platforms generally could diminish confidence in, and the use of, our products and services. Moreover, to the extent that we acquire a company and maintain that acquired company's separate brand, we could experience brand dilution or fail to retain positive impressions of our own brand to the extent such impressions are instead attributed to the acquired company's brand.

***We, as well as many of our potential customers, engage with third party suppliers and service providers for certain important services. An interruption or cessation of an important supply or service by any third party could have a material adverse effect on our business, including revenues derived from our customers' trading activity.***

We are engaged with a number of suppliers, such as banking, clearing and settlement organizations, on-line service providers, data processors, and software and hardware vendors, for elements of our trading, clearing and other systems, as well as communications and networking equipment, computer hardware and software and related support and maintenance. We also engage with third parties to provide Internet, telecommunication and fiber optic network connectivity to our data centers. Many of our customers rely on third parties, such as independent software vendors, to provide them with front-end systems to access our platform and other back office systems for their trade processing and risk management needs.

We cannot guarantee that these service providers will make the necessary monetary and time investments to provide services for our INX.One model and changes to our interfaces and functionality that occur as we develop our business. To the extent any of our service providers or the organizations that provide services to our customers in connection with their trading activities cease to provide these services in an efficient, cost-effective manner or fail to adequately expand their services to meet our needs and the needs of our customers, we could experience decreased trading volume, lower revenues and higher costs which could adversely affect an investment in the Company.

***The price of crypto assets and associated demand for buying, selling, and trading crypto assets have historically been subject to significant volatility.***

The price of crypto assets and associated demand for buying, selling, and trading crypto assets have historically been subject to significant volatility. For instance, in 2021, the value of certain crypto assets, including Bitcoin, experienced steep increases in value. The increases in value of certain crypto assets, including Bitcoin, from 2016 to 2017, and then again in 2021, were followed by a steep decline in 2018 and again in 2022. From January, 2023 to February, 2024, Bitcoin increased in value by over 200%. The cryptocurrency market saw substantial growth throughout 2024, with Bitcoin price breaking above $100,000 for the first time. In 2025, Bitcoin's price remained highly volatile but reached new all-time highs, climbing to approximately $126,000 in October 2025. Throughout 2025, Bitcoin continued to represent a majority share of the total cryptocurrency market's value.

The price and trading volume of any crypto asset is subject to significant uncertainty and volatility, depending on a number of factors, including:

● market conditions of, and overall sentiment towards, crypto assets;

● changes in liquidity, market-making volume, and trading activities;

● trading activities on other crypto platforms worldwide, many of which may be unregulated, and may include manipulative activities;

● investment and trading activities of highly active retail and institutional users, speculators, miners, and investors;

● the speed and rate at which crypto is able to gain adoption as a medium of exchange, utility, store of value, consumptive asset, security instrument, or other financial assets worldwide, if at all;

● decreased user and investor confidence in crypto assets and crypto platforms;

● negative publicity and events relating to the crypto economy;

● unpredictable social media coverage or "trending" of, or other rumors and market speculation regarding crypto assets;

● the ability for crypto assets to meet user and investor demands;

● the functionality and utility of crypto assets and their associated ecosystems and networks, including crypto assets designed for use in various applications;

● retail user preferences and perceived value of crypto assets and crypto asset markets;

● increased competition from other payment services or other crypto assets that exhibit better speed, security, scalability, or other characteristics;

● regulatory or legislative changes and updates affecting the crypto economy;

● the characterization of crypto assets under the laws of various jurisdictions around the world;

● the adoption of unfavorable taxation policies on crypto asset investments by governmental entities;

● the maintenance, troubleshooting, and development of the blockchain networks underlying crypto assets, including by miners, validators, and developers worldwide;

● the ability for crypto networks to attract and retain miners or validators to secure and confirm transactions accurately and efficiently;

● legal and regulatory changes affecting the operations of miners and validators of blockchain networks, including limitations and prohibitions on mining activities, or new legislative or regulatory requirements as a result of growing environmental concerns around the use of energy in bitcoin and other proof-of-work mining activities;

● ongoing technological viability and security of crypto assets and their associated smart contracts, applications and networks, including vulnerabilities against hacks and scalability;

● fees and speed associated with processing crypto asset transactions, including on the underlying blockchain networks and on crypto platforms;

● financial strength of market participants;

● the availability and cost of funding and capital;

● the liquidity of crypto platforms;

● interruptions in service from or failures of major crypto platforms;

● availability of an active derivatives market for various crypto assets;

● availability of banking and payment services to support crypto-related projects;

● level of interest rates and inflation;

● monetary policies of governments, trade restrictions, and fiat currency devaluations; and

● national and international economic and political conditions.

There is no assurance that any supported crypto asset will maintain its value or that there will be meaningful levels of trading activities. In the event that the price of crypto assets or the demand for trading crypto assets decline, our business, operating results, and financial condition would be adversely affected.

New or changing laws and regulations or interpretations of existing laws and regulations, in the United States and elsewhere, may materially and adversely impact the development and growth of blockchain networks and the adoption and use of blockchain assets. The imposition of restrictions on all blockchain assets, or certain blockchain assets, could affect the value, liquidity and market price of blockchain assets subject to heightened regulation, by limiting access to marketplaces or exchanges on which to trade such blockchain assets, or imposing restrictions on the structure, rights and transferability of such blockchain assets. Some governments may seek to ban transactions in blockchain assets altogether.

The crypto asset market has been characterized by significant volatility and unexpected price movements. Certain crypto assets may become more volatile and less liquid in a very short period of time, resulting in market prices being subject to erratic and abrupt market movement, which could harm our business. For instance, abrupt changes in volatility or market movement can lead to extreme pressures on our platform and infrastructure that can lead to inadvertent suspension of services across parts of the platform or the entire platform.

***Our revenues and profits will be substantially dependent on the trading volume in our markets. Our revenues and profits would be adversely affected if we are unable to develop and continually increase our trading volume on either of our trading platforms.***

The success of our business depends, in part, on our ability to continually increase our trading volume; further develop and expand our product offerings or execution facilities; and attract and retain new customers. Our success also depends on our ability to offer competitive prices and services in an increasingly price-sensitive business.

We cannot provide assurances that we will be able to develop and expand product lines, that we will be able to attract and retain customers or that we will be able to modify our pricing structure to compete effectively.

Trading volumes on blockchain asset trading platforms have historically been volatile. Such volatility may be the result of various factors, including fluctuations in the price of blockchain assets or periods of rapid expansion and contraction of adoption and use of blockchain assets. Trading volume will also be directly affected by domestic and international factors that are beyond our control, including:

● economic, political and geopolitical market conditions;

● legislative and regulatory changes, including any direct or indirect restrictions on or increased costs associated with trading in our markets;

● broad trends in the industry and financial markets;

● shifts in global or regional demand or supply in commodities underlying our products;

● competition;

● changes in government monetary policies, especially the regulation of tokens and the number of registered token offerings;

● availability of capital to our market participants and their appetite for risk-taking;

● levels of assets under management;

● pandemics affecting our customer base or our ability to operate our markets; and

● consolidation in our customer base and within our industry.

Any one or more of these factors may contribute to reduced activity in our markets.

Declines in trading volume may negatively impact market liquidity, which could lead to further loss of trading volume. Material decreases in trading volume would have a material adverse effect on our financial condition and operating results.

***If we fail to retain existing customers or add new customers, or if our customers decrease their level of engagement with our products, services and platform, our business, operating results, and financial condition may be significantly harmed.***

Any number of factors can negatively affect customer retention, growth, and engagement, including if:

● customers increasingly engage with competing products and services, including products and services that we are unable to offer due to regulatory reasons;

● we fail to introduce new and improved products and services, or if we introduce new products or services that are not favorably received;

● we fail to support new and in-demand crypto assets or if we elect to support crypto assets with negative reputations;

● there are changes in sentiment about the quality or usefulness of our products and services or concerns related to privacy, security, or other factors;

● there are adverse changes in our products and services that are mandated by legislation, regulatory authorities, or litigation;

● customers perceive the crypto assets on our platform to be bad investments, or experience significant losses in investments made on our platform;

● technical or other problems prevent us from delivering our products and services with the speed, functionality, security, and reliability that our customers expect;

● cybersecurity incidents, employee or service provider misconduct, or other unforeseen activities cause losses to us or our customers, including losses to assets held by us on behalf of our customers;

● modifications to our pricing model or modifications by competitors to their pricing;

● we fail to provide adequate customer service;

● regulatory and governmental bodies in countries that we target for expansion express negative views towards crypto asset trading platforms and, more broadly, the digital asset economy; or

● we or other companies in our industry are the subject of adverse media reports or other negative publicity.

From time to time, certain of these factors have negatively affected customer retention, growth, and engagement to varying degrees. If we are unable to maintain or increase our customer base and customer engagement, our revenue and financial results may be adversely affected. Any decrease in user retention, growth, or engagement could render our products and services less attractive to customers, which may have an adverse impact on our revenue, business, operating results, and financial condition. If our customer growth rate slows or declines, we will become increasingly dependent on our ability to maintain or increase levels of user engagement and monetization in order to drive growth of revenue.

***The revaluation of the INX Token liability to fair value for each reporting period may have a negative effect on our equity and our comprehensive income.***

As more fully described in the notes to our financial statements, the INX Token is presented as a liability on our consolidated balance sheet, which is remeasured at each reporting period to fair value with changes in fair value recorded in profit or loss.

The fair market value of the INX Tokens, based on the quoted market price, is subject to fluctuations due to a number of factors, including fluctuations in the Company's results of operations and macro-economic factors. Accordingly, the financial liability measured at fair market value also fluctuates.

The remeasurement of the INX Token liability to fair value in each reporting period may have a negative effect on our equity and our comprehensive income.

***We have an evolving business model.***

As blockchain assets and blockchain technologies become more widely available, we expect the services and products associated with them to evolve. As a result, to stay current with the industry, our business model may need to evolve as well. From time to time we may modify aspects of our business model relating to our product mix and service offerings. We cannot offer any assurance that these or any other modifications will be successful or will not result in harm to the business. We may not be able to manage growth effectively, which could damage our reputation, limit our growth and negatively affect our operating results.

***We may have difficulty executing our growth strategy and maintaining our growth effectively.***

Our growth requires additional investment in personnel, facilities, information technology infrastructure and financial and management systems and controls and may place a significant strain on our management and resources. Our growth strategy also may subject us to increased legal, compliance and regulatory obligations.

There is no guarantee that our efforts will be successful. We may not be able to implement important strategic initiatives in accordance with our expectations, including that the strategic initiatives could result in additional unanticipated costs, which may result in an adverse impact on our business and financial results. Unless our growth results in an increase in our revenues that is proportionate to the increase in our costs associated with our growth, our future profitability could be adversely affected.

***We intend to explore acquisitions, other investments and strategic alliances. We may not be successful in identifying opportunities or in integrating the acquired businesses. Any such transaction may not produce the results we anticipate, which could adversely affect our business and the price of INX Tokens.***

We intend to explore and pursue acquisitions, strategic partnerships, joint ventures and other alliances to strengthen our business and grow our company.

The market for acquisitions and strategic opportunities is highly competitive, especially in light of recent merger and acquisition activity in our industry. In addition, these transactions entail numerous operational and financial risks, including but not limited to difficulties in valuing acquired businesses, combining personnel and firm cultures, integrating acquired products, services and operations, achieving anticipated synergies that were inherent in our valuation assumptions, exposure to unknown material liabilities, the potential loss of key vendors, clients or employees of acquired companies, incurrence of substantial debt or dilutive issuance of equity securities to pay for acquisitions, higher-than expected acquisition or integration costs, write-downs of assets or impairment charges, increased amortization expenses and decreased earnings, revenue or cash flow from dispositions.

We may be unable to identify strategic opportunities or we may be unable to negotiate or finance future transactions on terms favorable to us. To the extent we enter into joint ventures and alliances, we may experience difficulties in the development and expansion of the business of any newly formed ventures, in the exercise of influence over the activities of any ventures in which we do not have a controlling interest, as well as encounter potential conflicts with our joint venture or alliance partners.

We may not realize the anticipated growth and other benefits from our growth initiatives and investments, which may have an adverse impact on our financial condition and operating results.

***The Company is dependent in part on the data center facilities of third parties.***

The Company's infrastructure network may be established in whole or in part through servers which it owns and/or houses at the location facilities of third parties, and/or servers that it rents at data center facilities of third parties. If the Company is unable to secure or renew its data facility leases on commercially reasonable terms or at all, the Company may be required to transfer its servers to a new data center facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third party providers of such facilities may suffer a breach of security as a result of third party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data in such servers. The Company and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures.

***Our business may be adversely affected by the impact of coronavirus, other epidemics or pandemics, acts of God, wars, insurrections, riots, infrastructure failures, and other force majeure events.***

Public health epidemics or outbreaks could adversely impact our business. In early 2021, an outbreak of the novel strain of a coronavirus, which causes a disease named COVID-19, spread worldwide, including to Israel and the United States. As a result of the coronavirus pandemic, governments and industries instituted drastic actions to contain the coronavirus or treat its impact. Such actions, including bans on international and domestic travel, quarantines, and prohibitions on accessing work sites, have caused significant disruptions to global and local economies and have led to dramatic volatility in the capital markets.

The extent to which the coronavirus pandemic, other epidemics or pandemics, acts of God, wars, insurrections, riots, infrastructure failures, and other force majeure events, impacts our operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Factors that may result in material delays and complications with respect to our business, financial condition and results of operation include the duration and severity of any outbreak, and the actions that may be required to contain the outbreak or treat its impact. In particular, the impact of any pandemic globally could adversely impact our operations, including the development of our platforms within our expected timeframes, our workforce, including the health and safety of our employees and our ability to complete recruitment for open positions on our team, and our ability to raise capital. In addition, a pandemic could affect the operations of key governmental agencies, such as the SEC and CFTC, which may delay the development and regulatory approval necessary to operate our platforms. Each of these factors could have an adverse impact on our business, financial condition and results of operation.

***General global market and economic conditions may have an adverse impact on the Company's operating performance, results of operations and/or cash flow.***

Weakness in the economy could have a negative effect on the Company's business, operations and financial condition, including decreases in revenue and operating cash flow, and inability to attract future equity and/or debt financing on commercially reasonable terms. Additionally, in a down-cycle economic environment, the Company may experience the negative effects of a slowdown in trading and usage of the Company's business platform and may delay or cancel the development, structuring, licensing and/or launch of any token functionality. Suppliers with which the Company engages for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on the Company's operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant, adverse impact on the Company's business, financial condition and results of operations, and hence, the Company's business platform and/or the ability to develop, structure, license and/or launch any Token functionality. Any such circumstances may then correspondingly negatively impact the functionality, liquidity, and/or trading price of INX Tokens.

***Several recent company failures and bankruptcies have adversely affected our industry.***

In 2022, several companies in the broader digital asset space failed or filed for bankruptcy protection. At the time of this Annual Report on Form 20-F, several digital asset space bankruptcies are still pending closure. The Company's business does not have a direct exposure to, and the Company is not a creditor of, any of the cryptocurrency market participants that filed for bankruptcy protection. At the time of this Annual Report on Form 20-F, we have no assets, material or otherwise, that may not be recovered due to these bankruptcies, and we have no direct exposure to any other counterparties, customers, custodians or other crypto asset market participants known to have (i) experienced excessive redemptions or suspended redemptions or withdrawal of crypto assets, (ii) their crypto assets of their customers unaccounted for, or (iii) experienced material corporate compliance failures. Our business, financial condition and results of operations may not be immune to unfavorable investor sentiment resulting from these recent developments in the broader cryptocurrency industry. Also, as circumstances develop, additional companies might find themselves in a similar unfavorable position that might have a direct effect on the Company.

Moreover, while the Company has not been directly affected by recent crypto market events, our business, financial condition and results of operations may still be adversely affected by recent industry-wide adverse developments beyond our control. The bankruptcy filings of crypto companies over the last several months and other developments in the broader cryptocurrency space will likely attract heightened regulatory scrutiny from U.S. regulatory agencies and others. Increasing regulation and regulatory scrutiny may result in new costs for the Company and Company's management having to devote increased time and attention to regulatory matters, and potentially change aspects of the Company's business. In addition, regulatory developments and/or the Company's business activities may require the Company to comply with certain regulatory regimes. Increasingly strict legal and regulatory requirements and any regulatory investigations and enforcement may result in changes to our business, as well as increased costs, and supervision and examination for ourselves and our service providers. Moreover, new laws, regulations, or interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions. Adverse changes to, or our failure to comply with, any laws and regulations, may have an adverse effect on our reputation and brand and our business, operating results, and financial condition.

Additionally, although we are not directly connected to the recent cryptocurrency market events, we may still suffer reputational harm due to our association with the cryptocurrency industry in light of the recent disruption in the crypto asset markets.

***Access to banking is limited for crypto companies, and recent bank failures in the U.S. may adversely affect our business and the industry we operate in.***

Access to banking is limited for crypto companies, and may impose risks of liquidity or operational challenges. In addition, during March 2023, the banking industry in the U.S. experienced disruptions, characterized by the failure of Silvergate Bank, Silicon Valley Bank, and Signature Bank. All three banks serviced the digital asset industry and provided services that facilitated the transmission of money across the industry and between industry participants. While the Company was not directly affected by the failure of these three banks and did not hold any Company or customer funds at these banks, our business, financial condition and results of operations may still be adversely affected by these developments or similar developments in the future. First, the operation and business activity of companies within the cryptocurrency space might be damaged or encumbered. Secondly, other banks may also encounter similar problems in the near future, that will result in their failure. For these reasons and others, the Company might be directly or indirectly affected.

Moreover, these bank failures attracted heightened regulatory scrutiny from U.S. regulatory agencies and others to the industry in general. Increasing regulation and regulatory scrutiny may result in new costs for the Company and Company's management having to devote increased time and attention to regulatory matters, and potentially change aspects of the Company's business. In addition, regulatory developments and/or the Company's business activities may require the Company to comply with certain regulatory regimes. Increasingly strict legal and regulatory requirements and any regulatory investigations and enforcement may result in changes to our business, as well as increased costs, and supervision and examination for ourselves and our service providers. Moreover, new laws, regulations, or interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions. Adverse changes to, or our failure to comply with, any laws and regulations, may have an adverse effect on our reputation and brand and our business, operating results, and financial condition. Further, these bank failures may hinder our ability to acquire bank accounts or payment services in the future. It is also unknown if additional bank failures will occur in the future.

**Risks Related To An Investment In Our Tokens**

***We have limited operating history and therefore valuation of the INX Token is difficult.***

The value of the INX Token is influenced by the supply of the INX Token, the market's perception of the INX Token's value and the liquidity for Tokens on a secondary market. The original purchase price of the INX Token in our initial public offering has not been indicative of the market price of INX Tokens in the secondary market.

If our INX Token does not gain public acceptance or is not traded by a substantial number of individuals, companies and other entities, it could have a material adverse impact on the value of the INX Token.

***The prospect of any holder of INX Tokens to receive any cash distributions from us is uncertain.***

Under the INX Token Purchase Agreement, holders of INX Tokens as of March 31 of a year following a year end for which there was positive cumulative Adjusted Operating Cash Flow are entitled to receive a pro rata cash distribution equal to 40% of our cumulative Adjusted Operating Cash Flow. The pro rata distribution of our cumulative Adjusted Operating Cash Flow is not self-executing and requires that our board of directors approve the Company's financial statements and calculate such distribution in good faith. Although such annual calculation is based on the cash flow from operating activities reflected in the consolidated statement of cash flow of our Company that is included in the audited consolidated financial statements of our Company and its subsidiaries, neither the calculation of the cumulative Adjusted Operating Cash Flow nor any pro rata distributions thereof to holders of INX Tokens will be audited at the time of any distribution. Further, the general public will not be able to independently verify the number of INX Tokens outstanding that are entitled to share in the distribution.

Further, as of December 31, 2025, our cumulative Adjusted Operating Cash Flow was approximately negative $87.0 million. Because each INX Token holder's right to a pro rata distribution is based on our cumulative Adjusted Operating Cash Flow, no distribution will be made to INX Token holders, if at all, until the Company generates positive Adjusted Operating Cash Flows that exceeds this deficit. Therefore, the token holders may not receive a pro rata distribution even in years in which we are profitable due to our historical losses.

In addition, we may elect to operate our business and pursue business strategies, such as acquisitions and the development of our products and services, which could adversely affect our ability to generate positive net operating cash flow. Our cumulative Adjusted Operating Cash Flow will increase or decrease based on the difference between our cash inflows and outflows. Although we may generate cash inflow from daily operations through trading fees and other services, such amounts will be reduced by cash outflows from our operations, including cash payments to our service providers, our employees, taxes, fees, and other operating expenses. To the extent that we engage in acquisitions, we may expend significant cash in order to integrate such businesses, products, technologies or personnel. As a result of our expenditures, we may never generate a positive cumulative Adjusted Operating Cash Flow and may never pay any cash distributions, which could adversely affect the value of INX Tokens. As a result, the prospect of any holder of INX Tokens to receive any cash distributions from us is uncertain.

Further, each INX Token holder's right to the pro rata portion of the distribution for any given year is subject to charges related to banking fees, transaction fees and/or Ethereum gas fees required to be paid with respect to the transfer of funds or Ether to such holders. Thus, with respect to any year during which the amount to be distributed to an individual INX Token holder is less than the amount of fees relating to such transfer, no distribution will be made to that individual INX Token holder.

***The trading price of our INX Tokens is volatile.***

The trading price of our INX Tokens is volatile. The INX Token is not issued by any central bank nor is it backed by any hard assets or other credit. Consequently, investors may not be able to liquidate their investment at a price that reflects the value of the business.

The trading volume of INX Tokens could affect their price volatility.

Although our Board of Directors approved repurchase of INX Tokens by the Company (up to a certain yearly amount) we do not have a token repurchase policy. Accordingly, nothing obligates us to repurchase any specific number of INX Tokens.

Further, the trading price of INX Tokens could be significantly affected by any number of factors including volatility in the broader market for blockchain assets, changes in analyst earnings estimates, fluctuations in our results of operations, shifting investor perceptions, dilution (in both monetary and percentage amounts) from future sales or issuances of INX Tokens by the Company, large purchases or sales by a significant INX Token holder or by the Company, the announcement of new products or the occurrence of any of the events described within this "Risk Factors" section.

Any of these factors could adversely affect the trading price of INX Tokens. Market volatility of the INX Token may affect the value of investment by token holders and could subject us to litigation. Securities litigation against us could result in substantial costs and divert our management's attention from achieving business objectives, which could harm our business. We are currently not subject to any token holder litigation and continue to aggressively pursue our business objectives toward gaining profitability, which ultimately leads to fulfilling the purpose of the INX Token, which is to share in profitability of the Company by token holders.

***Our decision to introduce or suspend promotional incentives for the use of INX Tokens to pay transaction fees on the INX.One trading platform or for holding INX Tokens could impact the trading price of INX Tokens (INX.One is not a separate platform but rather a solution designed to provide users with access to INX Digital and INXS platforms, creating a unified customer experience for trading both security tokens and digital assets).***

The INX Tokens may entitle owners to, at a minimum, a ten percent (10%) discount as compared to fees paid using other currencies. From time to time, the Company or INXS may offer additional discounts for the use of INX Tokens as payment for INXS transaction fees such that the aggregate discount exceeds ten percent (10%). In addition, although the INX Tokens may not be used as payment for transaction fees on the INXD trading platform, we intend from time to time to offer promotional discounts on transaction fees on the INXD trading platform to record holders of INX Tokens. Such discounts, as well as discounts on the INXS Trading Platform in excess of 10%, are promotional incentives that are governed by the terms and conditions for use of the trading platform and are not rights granted to the holders of INX Tokens through the INX Token Purchase Agreement or otherwise. The value and percentage of any such discount is subject to change at the sole discretion of INX with reasonable notice to INX Token holders and participants on the INX.One trading Platform.

Decisions to set or change the transaction fees for trades executed on our trading platforms or to change the discount applied to transaction fees on our trading platform may impact the trading price of INX Tokens or may result in increased volatility in the price of INX Tokens, especially during periods surrounding the announcement to institute or terminate any fee discount. The decision to reverse or suspend any discounts could negatively impact the trading price of INX Tokens and, as a result, the trading price of INX Tokens may not accurately reflect the value of the public's perception and acceptance of other rights and characteristics of the INX Tokens. Registered exchanges may decline to list INX Tokens if this feature violates applicable listing standards or ATSs may decide not to make INX Tokens available for trading.

Prior to making decisions to set the rate for the transaction fees on our trading platform and the level of additional discounts, if any, offered to holders of INX Tokens, the Company will consider various factors such as the profitability of our trading platform, the effect of such changes on current holders of INX Tokens, and whether such changes will discourage investors from purchasing INX Tokens in the future.

Under the INX Token Purchase Agreement, holders of INX Tokens are entitled to receive a pro rata cash distribution equal to 40% of our cumulative Adjusted Operating Cash Flow. This means that the portion of any cash distribution allocated to each INX Token is in part determined by the number of outstanding INX Tokens that are not owned by the Company or any subsidiary of the Company.

We anticipate that users of the INX.One platform will be incentivized to hold INX Tokens to be entitled to transaction fees discounts on the platform.

Large swings in the use of INX Tokens as payment for transaction fees or future issuances of INX Tokens equity or convertible debt securities could cause INX Token holders to suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of our then-existing capital stock. Any debt financing secured by us in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities. If we cannot raise additional funds when we need them, our business and prospects could fail or be materially and adversely affected.

Although the INX token holders have the right to use the INX Token to pay transaction fees on the INX.One Trading Platform, this functionality is not currently available. Due to the evolving regulatory landscape, and our understanding that payment of transaction fees with securities may not be clearly allowed under the current regulatory guidance for digital assets, we cannot determine whether this right will ever be available to INX token holders. As a result, we have offered a benefit to INX token holders whereby they are granted a discount on transaction fees on the INX.One Trading Platform based on how many INX Tokens are held in their INX Securities account. Holders of INX Tokens are entitled, at a minimum, to a 10% discount on the payment of transaction fees on the INX.One trading platform. We believe this aligns with regulatory guidelines while offering a benefit to INX token holders that offers value.

***INX Token holders may not have full or any recourse in the event that the Company enters into insolvency, liquidation, dissolution, reorganization or bankruptcy and the Company may incur debt that ranks equally with, or senior to, the rights of the INX Token holders.***

Pursuant to the INX Token Purchase Agreement, if (i) the Company permanently discontinued all the activities of INX.One and there is no successor conducting a substantially similar business that assumes the obligations of the Company with regard to the INX Tokens and (ii) an "Insolvency Event" (as defined in the INX Token Purchase Agreement) occurs, then the Company shall be deemed to be in default of its obligations under the INX Token Purchase Agreement, which breach shall create a claim in favor of INX Token holders that may be asserted by INX Token holders against the Company in any proceeding arising from such Insolvency Event. The claim amount will be determined by the liquidator, a court of competent jurisdiction overseeing the liquidation, or some other authority pursuant to applicable insolvency law.

The Company intends that the INX Token holders will be unsecured creditors of the Company and would therefore rank *pari passu* with all the other unsecured creditors of the Company and senior to the claims of holders of the Company's shares. Further, the Company is obligated to cause its future shareholders, to enter an agreement, pursuant to which such shareholders (a) irrevocably subordinate their rights to receive any distributions and payments from the Company prior to the payment in full by the Company of all distributions owed to INX Token holders, and (b) irrevocably waive and subordinate their rights, in the event of an Insolvency Event, to any cash held in the Cash Fund. However, to the extent applicable, the Cash Fund or any proceeds thereof will not be held in an escrow or trust account, but rather, may be held in a separate bank or broker account controlled by the Company. In the case of an Insolvency Event, a liquidator, court or other applicable authority may determine that INX Token holders are not entitled to any payment from the Company's assets or that the INX Token holders' claims are not senior in right to claims or interests of the Company's shareholders, in particular the shareholders who have not agreed to subordinate their rights to the claims of INX Token holders. In addition, the Company may incur debt (including secured debt) that ranks equally with, or senior to, the rights of INX Token holders, as well as holders of other preferential claims under relevant insolvency laws. In the case of an Insolvency Event, holders of debt instruments ranking senior to INX Tokens may be entitled to receive payment in full before INX Token holders receive any distribution, including distributions of Adjusted Operating Cash Flow.

***INX Token holders do not have a perfected security interest in their Pro Rata Portion of the Distributable Amount of the cumulative Adjusted Operating Cash Flow. There is no guarantee that an INX Token holder will receive any funds following an Insolvency Event.***

After repaying such senior creditors, the Company may not have sufficient assets, if any, remaining for payment of any obligations that it owes to INX Token holders. Further, if it is determined that the Company's obligations to INX Token holders rank equally with other debt, INX Token holders may share on an equal basis with other creditors. However, the Company may not have sufficient assets, if any, remaining for payment of obligations owed to INX Token holders.

***The tax characterization of INX Tokens is uncertain. You must seek your own tax advice in connection with purchasing INX Tokens, which may result in adverse tax consequences to you, including withholding taxes, income taxes and tax reporting requirements.***

The treatment of INX Tokens for U.S. federal income tax purposes is uncertain. Due to the new and evolving nature of digital currencies, tokens and blockchain assets, and a general absence of clearly controlling authority with respect to these assets, many significant aspects of the U.S. federal income tax treatment of digital currencies are uncertain. It is unclear what guidance on the treatment of tokens and blockchain for U.S. federal income tax purposes may be issued in the future. Future developments regarding the treatment of tokens or blockchain assets for U.S. federal income tax purposes could adversely affect an investment in INX Tokens.

The Company does not intend to request a ruling from the Internal Revenue Service ("IRS") on these issues. The IRS has ruled on the tax treatment of bitcoin and other cryptocurrencies. In Notice 2014-21 (the "Notice") the Service held that digital "currencies" are treated like property and that each transaction using these currencies is a separate taxable event. The IRS stated in the Notice that, for U.S. federal income tax purposes, (i) digital currency is "property" that is not currency and (ii) digital currency may be held as a capital asset. There can be no assurance that the IRS will not alter its position with respect to digital currency in the future or that a court would uphold the treatment set forth in the Notice.

The Notice does not address other significant aspects of the U.S. federal income tax treatment of tokens or blockchain assets, including: the tax characterization of tokens which possess other non-currency-like rights or powers (so called "utility" tokens) or tokens which provide a share of profits to holders. Moreover, there is no authority on the circumstances in which profit-sharing tokens such as INX Tokens may be treated as equity or stock in the Company for U.S. federal income tax (or other tax) purposes. If INX Tokens were characterized as equity interests in the Company for U.S. federal income purposes, U.S. holders of INX Tokens would be subject additional tax consequences and related reporting considerations applicable to holders of stock in a foreign company, including the possible application of rules relating to passive foreign investment companies (or "PFICs") and controlled foreign corporations ("CFCs").

The tax characterization of INX Tokens is uncertain. Token holders must seek their own tax advice in connection with purchasing Tokens, which may result in adverse tax consequences, including withholding taxes, income taxes and tax reporting requirements. Prospective investors are urged to consult their tax advisers regarding the uncertainty regarding tax consequences of an investment in INX Tokens and in blockchain assets in general.

***INX Token holders are not afforded an opportunity to vote in the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, and may not realize any benefit from such transactions.***

Although the INX Token is an equity security, as such term is defined in Section 3(a)(11) of the Exchange Act, the rights that attach to an INX Token are materially different from the rights that are typically associated with equity securities such as common shares. As holders of a non-voting security, INX Token holders have no influence over our corporate governance policies and affairs, and INX Token holders are not afforded an opportunity to vote on any matters affecting the Company, including the election of directors, related party transactions or significant corporate transactions such as a merger, or sale of the Company or its assets. INX Token holders are not afforded the same protections generally as shareholders of other publicly traded companies. Further, INX Token holders may not benefit from a sale of the Company or its assets in the same way that our shareholders will benefit, if at all. Your only opportunity to affect an investment decision regarding the Company, if at all, may be limited to selling your INX Tokens.

***The interests of our shareholders may conflict with the interests of INX Token holders.***

Our directors are nominated and elected by a majority of our shareholders and their interests in our business may differ from the interests of INX Token holders. Our directors will have no fiduciary obligations to act in the interests of INX Token holders. As a result of the purchase of the Company by Open Deal, Inc. in November 2025, as the new shareholders of our sole shareholder, OpenDeal, Inc. will have significant influence over management and affairs and all other matters of the Company, including significant corporate transactions, such as a merger or other sale of our Company or its assets.

***The INX Tokens are not currently registered under the Exchange Act.***

The INX Token is an equity security as such term is defined in Section 3(a)(11) of the Exchange Act; however, The INX Tokens are not currently registered under the Exchange Act, however, the Company is currently required to file annual and other periodic reports pursuant to Section 15(d) of the Exchange Act, as required by a foreign private issuer.

If the Company does not continue to be subject to, or voluntarily comply with, the periodic reporting and other obligations of the Exchange Act, you may not be able to access regular publicly available reports about us and you will not be entitled to the same type of disclosure in relation to critical corporate events as if we were subject to the Exchange Act.

***The INX Token Purchase Agreement includes exclusive venue and jurisdiction provisions. By purchasing INX Tokens, an investor is irrevocably consenting to these provisions regarding claims, suits, actions or proceedings, and submitting to the exclusive jurisdiction of Delaware courts. The INX Token Purchase Agreement also provides that the Company will not be responsible for any losses except those arising from the Company's gross negligence, fraud or willful misconduct.***

The INX Token Purchase Agreement is governed by Delaware law and includes exclusive venue and jurisdiction provisions designating Delaware courts as the exclusive venue for most claims, suits, actions and proceedings involving us or our officers, directors and employees.

By purchasing an INX Token, an investor is irrevocably consenting to these limitations and provisions regarding claims, suits, actions or proceedings and submitting to the exclusive jurisdiction of Delaware courts. If a dispute were to arise between an investor and us or our officers, directors or employees, the investor may be required to travel to Delaware in order to pursue its legal remedies and participate in any proceeding in Delaware courts which may be an inconvenient or distant location and which is considered to be a more corporate friendly environment. In addition, the choice of forum provision may limit an investor's ability to bring a claim in a judicial forum that it finds favorable for disputes with us. These provisions may have the effect of discouraging lawsuits and limiting an investors' ability to obtain a favorable judicial forum for disputes against us and our directors and officers.

This provision does not, nor is intended to, apply to claims under the federal securities laws. By agreeing to this limitation of liability, investors will not be deemed to have waived the Company's compliance with federal securities laws and the rules and regulations thereunder.

The INX Token Purchase Agreement also includes a provision limiting our liability, to the maximum extent permitted by applicable law, for any losses the investor may incur, except for such losses that arise from our gross negligence, fraud or willful misconduct. By purchasing an INX Token, an investor is agreeing to this limitation of liability which could reduce its ability to recover damages from us if we act in a manner that causes investors to incur losses.

***There may not be any marketplace or secondary trading for the INX Token or other digital assets related to our business.***

On February 15, 2026, secondary trading of the INX Tokens on the INX.One trading platform was terminated. As a result, holders of INX Tokens are currently unable to trade or otherwise realize liquidity from their investment through any Company-operated venue. There can be no assurance that any alternative regulated trading venue will become available or accessible to INX Token holders. The termination of trading on INX.One has materially adversely affected the liquidity, market value, and tradability of the INX Tokens, and such adverse effects may continue indefinitely.

Although the INX Token is listed and traded on the INX Securities ATS, an alternative trading system operated by our subsidiary, there is no guarantee that an active or liquid trading market for the INX Token will be sustained or that the market will remain sufficiently deep to allow holders to sell their tokens without significant price concessions. Unlike traditional equity securities that can be traded across multiple national exchanges or alternative trading systems, the INX Token is a digital security that may only be traded on trading platforms specifically licensed to support security tokens and that have integrated the necessary blockchain compliance protocols (such as ERC-1404 restricted token standards). Currently, the number of such regulated venues is extremely limited. If the INX Securities ATS were to cease operations, lose its regulatory license, or experience technical failures, holders of INX Tokens could be unable to transfer or sell their tokens, rendering them illiquid.

We may not be able to ensure that there are sufficient market makers or institutional liquidity providers to support trading volume of the INX Token. Without active market making, the spread between the bid and ask prices may widen significantly, leading to price volatility and making it difficult for holders to liquidate positions efficiently. The secondary trading of digital assets is also subject to evolving regulation by the SEC, FINRA, and other global authorities. Regulatory actions could limit our ability to maintain a marketplace for the INX Token or could impose restrictions that reduce the pool of eligible traders, such as restricting trading to accredited investors only, thereby severely reducing liquidity.

The transferability of the INX Token relies on the Ethereum blockchain. Significant congestion on the Ethereum network ("gas wars") could make transactions prohibitively expensive or slow. Furthermore, if a hard fork or other disruption occurs on the underlying blockchain, or if smart contract vulnerabilities are discovered, trading could be halted entirely. The INX Token is a complex financial instrument that entitles holders to a portion of the Company's Adjusted Operating Cash Flow, and traditional valuation models used for equity or debt may not be applicable or widely understood by the general investing public. This lack of consensus on valuation methodologies could dampen investor demand and trading activity.

We may from time to time consider strategic alternatives, including a transaction that would result in us becoming a privately held company, such as a merger, tender offer, or other business combination involving an affiliate or controlling stockholder. If we were to consummate a going-private transaction, INX Token holders could be required to sell their securities, and our securities could be delisted from any trading system. To the extent any such transaction is consummated, we would no longer be subject to the reporting requirements of the SEC, and there may be no public market for our securities thereafter. As a result, the liquidity and trading value of our securities could be materially and adversely affected.

Consequently, holders should be prepared to hold their INX Tokens indefinitely, as there is no assurance that a broad, public market will continue to exist or that they will be able to liquidate their investment.

***It may be illegal now, or in the future, to acquire, own, hold, sell or use INX Tokens in one or more countries, and ownership of, holding or trading in our Company's securities may also be considered illegal and subject to sanction.***

The regulation of blockchain assets remains uncertain or undefined in many jurisdictions. Although we anticipate treating the INX Tokens as securities under the laws of all foreign jurisdictions and adhering to such laws with regard to the offering and sale of INX Tokens abroad, one or more foreign governmental authorities, such as those in China, may take regulatory action in the future that severely restricts the right to acquire, own, hold, sell or use blockchain assets or to exchange blockchain assets for fiat currency. Such an action may result in the restriction of ownership, holding or trading in the INX Token and other securities. Such restrictions may adversely affect an investment in the Company.

**Risks Relating to Intellectual Property Rights And Disputes**

***We may be unable to protect our proprietary technology and to obtain trademark protection for our marks.***

 

Our success depends to a significant degree upon the protection of our software and other proprietary intellectual property rights. We may be unable to bring enforcement actions under the laws of the US or other countries to protect our intellectual property rights, which could have a material adverse effect on our business. Further, we may not be able to secure protection for our service marks or trademarks in the United States or elsewhere as we expand internationally. Our competitors might adopt service marks or trademarks similar to our marks or might try to prevent us from using our marks. Any claim by another party against us or customer confusion related to our trademarks, or our failure to obtain trademark registration, could have a material adverse effect on our business.

***We may not be able to enforce protection of our intellectual property rights under the laws of other countries.***

We do business internationally and consequently we are subject to risks of doing business internationally, including uncertainty regarding liability for the listings and other content provided by our users, and differing intellectual property laws, which may provide insufficient protection for our intellectual property. Any such difficulties could have a material adverse effect on our business.

**Risks Related to Incorporation in Gibraltar**

***We are a "foreign private issuer" and we cannot be certain if the reduced reporting requirements applicable to foreign private issuers will make owning INX Tokens less attractive to investors.***

As a foreign private issuer, we are not subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Securities Exchange Act of 1934, or the Exchange Act, we will be subject to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies. For example, we will not be required to issue proxy statements that comply with the requirements applicable to U.S. domestic reporting companies. We will also have four months after the end of each fiscal year to file our annual reports with the SEC and will not be required to file current reports as frequently or promptly as U.S. domestic reporting companies. Furthermore, our officers, directors, and principal shareholders will be exempt from the requirements to report transactions in our equity securities and from the short-swing profit liability provisions contained in Section 16 of the Exchange Act. These exemptions and leniencies, along with other corporate governance exemptions resulting from our ability to rely on home country rules, will reduce the frequency and scope of information and protections to which you may otherwise have been eligible in relation to a U.S. domestic reporting company.

***We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

As discussed above, the Company is a foreign private issuer, and therefore, it is not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter, and, accordingly, the next determination will be made with respect to us on June 30, 2026. In the future, the Company would lose its foreign private issuer status if (1) more than 50% of our outstanding voting securities are owned by U.S. residents and (2) any of the following three circumstances applies: (i) the majority of our executive officers or directors are U.S. citizens or residents; (ii) more than 50% of our assets are located in the United States; or (iii) our business is administered principally in the United States. If the Company loses its foreign private issuer status, it will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms available to a foreign private issuer. Although we have elected to comply with certain U.S. regulatory provisions, our loss of foreign private issuer status would make such provisions mandatory. The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic reporting company may be significantly higher. The Company will also have to mandatorily comply with U.S. federal proxy requirements, and the Company's officers, directors and principal shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, the Company will lose its ability to rely upon exemptions from certain corporate governance requirements under the listing rules of the Nasdaq. As a U.S. listed public company that is not a foreign private issuer, the Company would incur significant additional legal, accounting and other expenses that it will not incur as a foreign private issuer. We may also be required to modify certain of our policies to comply with accepted governance practices associated with U.S. domestic reporting companies. Such conversion and modifications will involve additional costs. In addition, we may lose our ability to rely upon exemptions from certain corporate governance requirements on U.S. stock exchanges that are available to foreign private issuers.

***It may be difficult to enforce a U.S. judgment against us, our officers and directors, and the experts named in this report, or to assert U.S. securities laws claims or serve process on our officers and directors and these experts.***

We were incorporated in Gibraltar, and a significant part of our operations are currently located in the State of Israel. Therefore, it may be difficult to enforce a U.S. court judgment based upon the civil liability provisions of the U.S. federal securities laws against us or any of these persons in a U.S. or Gibraltar court, or to affect service of process upon these persons in the United States.

Additionally, it may be difficult for an investor, or any other person or entity, to assert U.S. securities law claims in original actions instituted in Gibraltar. This is for two principal reasons: 1) because the Gibraltar courts may regard the U.S. law in question to be a penal, revenue or public law and therefore, under Gibraltar law, not capable of direct or indirect enforcement in the Gibraltar courts, or 2) because the Gibraltar court may stay the claim on the grounds that Gibraltar is not an appropriate forum ("forum non conveniens"). If U.S. law is found to be applicable to a claim which the Gibraltar court can and is prepared to hear, the content of applicable U.S. law must be proved as a fact by expert witnesses, which can be a time-consuming and costly process. If proceedings were to be brought in Gibraltar, all procedural matters would be governed by Gibraltar law. There is little case law addressing the matters described above that would be binding case law in a Gibraltar court.

**Risks Related to Doing Business In Israel**

***Potential political, economic, and military instability in the State of Israel, where some of our senior management and our research and development facilities are located, may adversely impact our results of operations.***

Our offices and operations are currently located in the State of Israel and in the United States. In addition, certain of our employees, officers, and directors are residents of Israel. Accordingly, political, economic, and military conditions in Israel directly affect our business.

Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its neighbouring countries, and between Israel and the Hamas (an Islamist militia and political group in the Gaza Strip) and Hezbollah (an Islamist militia and political group in Lebanon).

In October 2023, Hamas terrorists infiltrated Israel's southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israeli population and industrial centers located along Israel's border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers. Following the attack, Israel's security cabinet declared war against Hamas and a military campaign against these terrorist organizations commenced in parallel to their continued rocket and terror attacks. In October 2025, a ceasefire was brokered between Israel and Hamas. However, we cannot predict if and to what extent this ceasefire will remain in effect or upheld.

In addition, since the commencement of these events, there have been continued hostilities along Israel's northern border with Lebanon (with the Hezbollah terror organization) and on other fronts from various extremist groups in the region, such as the Houthis in Yemen and various rebel militia groups in Syria and Iraq. In October 2024, Israel began limited ground operations against Hezbollah in Lebanon, and in November 2024, a ceasefire was brokered between Israel and Hezbollah, but in March 2026, hostilities resumed along Israel's northern border with Lebanon, when Hezbollah resumed its attacks as part of a broader regional escalation. In response, Israel resumed military operations against Hezbollah in Lebanon. In addition, in June 2025, in light of continued nuclear threats and intelligence assessments indicating imminent attacks, Israel launched a preemptive strike directly targeting military and nuclear infrastructure inside Iran, aimed at disrupting Iran's capacity to coordinate or launch further hostilities against Israel, as well as to degrade its nuclear program. In response, Iran launched multiple waves of drones and ballistic missiles at Israeli cities. While a ceasefire was reached in June 2025 following 12 days of hostilities, on February 28, 2026, the United States and Israel launched coordinated military strikes against Iran, including attacks on strategic military infrastructure and leadership targets, with the stated aim of degrading Iran's capacity to conduct or support hostile operations against them. In response, Iran has fired missiles and drones toward population centers and military installations in Israel, Europe and neighboring countries in the Gulf region, and also launched counter-strikes against U.S. forces and allied bases throughout the Gulf region. A two-week ceasefire was brokered in April 2026 to allow the parties to negotiate, but its durability and the prospects for a successful agreement remain uncertain.

In connection with the Israeli security cabinet's declaration of war against Hamas and possible hostilities with other organizations, several hundred thousand Israeli military reservists were drafted to perform immediate military service.

As of the date of this Annual Report, we have not been materially impacted by any absences of personnel at our service providers or counterparties located in Israel. Military service call ups that result in absences of personnel from us for an extended period of time may materially and adversely affect our business, prospects, financial condition and results of operations. As of the date of this Annual Report, we currently have 21 full-time employees, with 15 employees located in Israel and 6 employees located outside of Israel.

Since the war broke out on October 7, 2023, our operations have not been adversely affected by this situation, and we have not experienced any material disruptions to our operations. However, the intensity and duration of Israel's current war is difficult to predict at this stage, as are such war's economic implications on the Company's business and operations and on Israel's economy in general. If the declared ceasefires collapse or a new war commences or hostilities expand to other fronts, our operations may be adversely affected.

Our commercial insurance does not cover losses that may occur as a result of events associated with the security situation in the Middle East. Although the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that this government coverage will be maintained. Any losses or damages incurred by us could have a material adverse effect on our business. Any armed conflicts or political instability in the region would likely negatively affect business conditions and could harm our results of operations.

In addition, some countries around the world restrict doing business with Israel and Israeli companies, and additional countries may do so if hostilities in Israel or political instability in the region continue or increase. In addition, there have been increased efforts by countries, activists and organizations to cause companies and consumers to boycott Israeli goods and services and some of such efforts have been successful. In addition, in January 2024 the International Court of Justice, or ICJ, issued an interim ruling in a case filed by South Africa against Israel alleging genocide amid and in connection with the war in Gaza, and ordered Israel to take measures to prevent genocidal acts, prevent and punish incitement to genocide, and take steps to provide basic services and humanitarian aid to civilians in Gaza, among others. On November 21, 2024, the International Criminal Court, or ICC, issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Minister of Defense Yoav Gallant based on allegations of war crimes including using starvation as a method of warfare, murder and other inhumane acts. Companies and businesses may terminate, and may have already terminated, certain commercial relationships with Israeli companies following the ICJ and ICC decisions.

Finally, political conditions within Israel may affect our operations. Israel has held five general elections between 2019 and 2022, and prior to October 2023, the Israeli government pursued extensive changes to Israel's judicial system, which sparked extensive political debate and unrest. Actual or perceived political instability in Israel or any negative changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, our business, financial condition, results of operations and growth prospects.

**ITEM 4. INFORMATION ON THE COMPANY**

**A. History and Development of the Company.**

We are a Gibraltar private company limited by shares, incorporated on November 27, 2017 under the Gibraltar Companies Act. We were originally incorporated under the name "INX Holdings Ltd." On December 17, 2017, we changed our name to our current name, INX Limited.

On February 16, 2021, we were registered as a foreign company in Israel with the Israeli Registrar of Companies.

On January 10, 2022, Valdy Investments Ltd. ("Valdy"), a company incorporated under the provincial Business Corporations Act (British Columbia), entered into a definitive securities exchange agreement with INX, whereby INX became a wholly owned subsidiary of Valdy (the "Parent Company"). The Transaction resulted in a reverse takeover transaction whereby current shareholders of INX (pre-transaction) became majority shareholders of the Parent Company. The combined entities (the "Resulting Issuer") continues the business. Also, as a result of the transaction, Valdy changed its name to The INX Digital Company Inc.

The Company is engaged in the operation and development of a digital asset and a security token trading platform and other services and products related to the fully integrated and regulated solutions for trading of blockchain assets. In 2021, the Company completed a SEC registered initial public offering of the INX Token. The offering of the INX Token was registered under the United States Securities Act of 1933 and, in such registration, the INX Token is deemed to be an "equity security" under relevant SEC rules and regulations.

The Company, through one of the subsidiaries, also facilitates financial transactions between global banks and offers a full range of brokerage services to several leading banking institutions worldwide, mainly in foreign exchange and interest rate derivatives.

***Recent Developments***

 ****

On April 3, 2025, TIDCI, then our sole shareholder, announced that it had entered into an arrangement agreement dated April 3, 2025 (the "Arrangement Agreement") with OpenDeal Inc. (d/b/a Republic) ("Republic") in connection with a transaction (the "Arrangement") that valued TIDCI's equity at up to $60 million (assuming the Rollover Share Limit (as defined below) is achieved). The Arrangement Agreement closed on November 10, 2025 (the "Closing").

Under the terms of the Arrangement Agreement, on Closing, Republic Strategic Acquisition Co LLC (the "Purchaser"), a wholly-owned subsidiary of Republic, acquired all of the issued and outstanding common shares of The INX Digital Company, Inc., then our sole shareholder (the "Shares"), other than those Shares already owned by Republic. The consideration for such an acquisition was $60 million , with $18.8 million in consideration provided to the Rollover Shareholders (as defined below), as further described below, and fixed consideration of $36 million paid by Republic to the non-Rollover Shareholders. With respect to the consideration which was provided to the non-Rollover Shareholders, $20 million was paid by Republic in cash upon completion of the Arrangement and $16 million will be paid by Republic 18 months following the Escrow Deposit Date (which is defined in the Arrangement Agreement) pursuant to the terms of a contingent value rights agreement (the "CVR Agreement").

Based on the number of Shares held by Republic and the Rollover Shareholders as of April 3, 2025, the combined cash and contingent value right ("CVR") consideration payable to the non-Rollover Shareholders under the Arrangement (assuming full payment of the CVRs) represents a premium of approximately 457% to the closing price of C$0.05 on the Cboe Canada Inc. of the Shares on April 2, 2025 (based on an exchange ratio C$1 to US$0.70 on such date).

In connection with the Arrangement, Shy Datika and a company wholly-owned by Mr. Datika (the "Rollover Shareholders") have entered into rollover agreements ("Rollover Agreements") with Republic, pursuant which such shareholders agreed to exchange their Shares ("Rollover Shares") for simple agreements for future equity ("SAFEs") of Republic that have a face value equal to the number of Shares being transferred by such Rollover Shareholders pursuant to the Rollover Agreements multiplied by the per Share value that the non-Rollover Shareholders will receive pursuant to the Arrangement, assuming full payment of the CVR.

The Arrangement was completed pursuant to a court-approved plan of arrangement under section 288 of the Business Corporations Act (British Columbia) upon satisfaction of certain closing conditions, including court approval, the approval of the shareholders of the Company (as further described below) and certain regulatory approvals.

As part of the transfer of ownership, $34,325 of INX's Cash Fund was distributed to INX Token holders after Closing. As of May 19th, 2026, $2,921 remained in INX's Cash Fund for pending distribution procedures to eligible holders. Following completion of such pending distributions, the Cash Fund shall have been fully distributed and no assets will remain therein.

***Subsidiaries***

The Company operates through the following wholly-owned subsidiaries:

● INX Digital, Inc. ("INXD"), a Delaware corporation, is licensed or otherwise cleared to operate in 48 U.S. states plus Washington D.C. and Puerto Rico as a money transmitter to operate a trading platform for cryptocurrencies. INXD launched a cryptocurrency trading platform on April 29, 2021, which was developed by INX Limited and is operated by INXD.

As of the date of this annual report, the following crypto assets are supported for trading on the INX Digital platform (identified by symbol):

● BTC

● ETH

● LTC

● USDC

● AVAXC

● USDT

● DOT

● XRP

● PYUSD

● SOL

● POL

● TCS

● CC

● INX Securities, LLC ("INXS") (formerly known as: Openfinance Securities, LLC), is a Pennsylvania limited liability company. INXS is recognized in the U.S. as a SEC registered Broker Dealer and is an SEC ATS. INXS was purchased by INX on May 10, 2021 as part of the Asset Purchase Agreement with Openfinance Holdings, Inc. and certain subsidiaries of Openfinance Holdings, Inc., dated January 12, 2021. After closing on the acquisition, the company's name was changed from Openfinance Securities, LLC to INX Securities, LLC.

● Midgard Technologies Ltd. ("Midgard") is a company incorporated under the laws of the State of Israel. Midgard had served as the research and development arm of INX since November 1, 2020, and was acquired on April 1, 2021. Midgard provides software development, marketing and operations services for the group and starting 2022, Midgard develops the digital assets trading platform, security token trading platform, and other products, and holds Intellectual property.

● INX Transfer Agent LLC (f/k/a Tokensoft Transfer Agent LLC) ("INX Transfer Agent"), a Delaware limited liability company. INX Transfer is a transfer agent registered with the SEC, acquired by the Company pursuant to a purchase agreement dated December 28, 2021.

● INX Solutions Limited is incorporated in Gibraltar as a private company limited by shares. INX Solutions Limited provided liquidity and risk management services to the group through the end of 2023. The entity is currently dormant.

● INX Digital Assets UK Limited (formerly known as: ILSB UK Limited) ("INX UK"), a company incorporated under the laws of England and Wales INX acquired and issued and outstanding shares of INX UK on July 13, 2021, from Mr. James Crossley, former board member of INX, in consideration for an inconsequential amount of cash. INX UK is currently a dormant entity.

● INX Services, Inc., a Delaware corporation, is currently dormant and is in the process of dissolution.

● INX EU Ltd. ("INX EU"), a company incorporated under the laws of Cyprus, was dissolved and ceased to exist as a legal entity on September 12, 2025.

 INX Global Ltd, a company incorporated under the laws of Cyprus on June 20th, 2025.

***Securities Exchange Agreement***

On January 10, 2022, Valdy Investments Ltd. ("Valdy"), a Capital Pool Company (CPC) incorporated under the laws of British Columbia, Canada, acquired all of the issued and outstanding securities of the Company (including all outstanding options and warrants) from the holders thereof by way of a securities exchange, in accordance with the terms and conditions of the Amended and Restated Security Exchange Agreement dated November 3, 2021, as amended (the "Security Exchange Agreement"), whereby, at the closing, then current holders of shares and options to purchase shares of the Company were issued an aggregate of 175,000,000 common shares of the combined entity and the Company became a wholly owned subsidiary of Valdy (the "Valdy Transaction"). The shareholders of Valdy received 5,124,740 common shares of the combined entity. Additional securities of the combined entity were issued to consultants of the Company and to principals of Valdy as set forth in the Security Exchange Agreement. Following the closing of the Valdy Transaction, Valdy changed its name to "The INX Digital Company, Inc." For more information on the Security Exchange Agreement, see "Item 7, Part A – Major Shareholders and Related Party Transactions – Major Shareholders – Changes in Percentage Ownership by Major Shareholders – Security Exchange Agreement."

***Consolidation***

Immediately prior to the completion of the Valdy Transaction, on January 10, 2022, Valdy completed a consolidation (the "<u>Consolidation</u>") of the (pre-Valdy Transaction) issued and outstanding Valdy Shares, on the basis of one (1) post-Consolidation Valdy Share for each 2.7266667 pre-Consolidation Valdy Shares, such that the number of Valdy common shares outstanding immediately prior to the completion of the Valdy Transaction was 3,844,740 on a fully-diluted basis**.**

***Concurrent Financing***

 

In parallel with the Valdy Transaction, on April 1, 2021, the Company completed a private placement of 31,680,000 subscription receipts, at a price of CAD$1.25 per receipt (the "<u>Concurrent Financing</u>"). Each receipt entitled its holder to receive a unit ("INX Unit") comprised of one ordinary share of the Company ("<u>Ordinary Share</u>") and one half of one warrant to purchase one Ordinary Share (at a price of CAD$1.88 per share) ("each, an "INX Financing Warrant"). The Ordinary Shares and warrants issued pursuant to the subscription receipts were exchanged for comparable securities of Valdy on closing of the Valdy Transaction. The Company raised an aggregate amount of US$31.3 million pursuant to the Concurrent Financing. In consideration for their services to the Company, the Company's financial advisors received cash compensation and options to purchase ordinary shares of Valdy.

***Token Offering***

As further detailed in this Annual Report on Form 20-F, the Company is the first company to successfully complete an SEC-registered IPO of a blockchain security token (the "INX Token"). On August 20, 2021, the public offering of the INX Token (the "Token Offering") was registered under the United States Securities Act of 1933 and, in such registration, the INX Token is deemed to be an "equity security" under relevant SEC rules and regulations. On April 22, 2021, the Token Offering was completed.

Under the Token Offering, the Company raised $84.0 million, pursuant to the sale of 93,409,410 INX Tokens (excluding the sale of INX Tokens described below). Additionally, the Company raised $7,621,778, pursuant to the sale of 10,386,148 INX Tokens through private placements, which were subject to a 12-month lockup.

Under the Token Offering, INX Tokens were bought by more than 7,200 retail and institutional investors in 75 countries, with more than 61,000 investors expressing interest but unable to invest in the Token Offering, in part due to the U.S. blue sky restrictions. In June 2021, it came to the attention of the Company that during the course of the Token Offering as it related to Canada, the Company did not take all steps that may be required under Canadian securities laws. As a result, the Company elected to unwind the transactions forthwith by cancelling the 1,948,483 INX Tokens that were sold to such purchasers and refunding $1,753,635 representing the full purchase price of the INX Tokens sold.

On February 15, 2026, the Company delisted the INX Token from the INX One trading platform. This decision was made following a strategic internal review of the Company's offerings, administrative requirements and other related factors. As a result of the delisting, the INX Token is no longer available for secondary market trading on the Company's platform. The Company continues to recognize the rights of INX Token holders pursuant to the terms of the INX Token Purchase Agreement.

***General***

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The ordinary shares of the Company (the "INX Shares") have never been listed for public trading.

INX Limited's registered office is located at 57/63 Line Wall Road, Gibraltar, GX11 1AA. INX Limited also has an office located in Israel.

The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov. Our website is https://www.inx.co/. The reference to our website is an inactive textual reference only and information contained in, or that can be accessed through, our website is not part of this report.

**B. Business Overview.**

**Background & Current Market** 

*Blockchain Technology and Blockchain Assets*

Blockchain technology is a digital record or ledger of transaction data that is permanently recorded in files called "blocks." Each blockchain is founded upon software source code that establishes and governs its cryptographic system for verifying transactions.

In traditional blockchain networks, copies of the blockchain ledger are stored in a decentralized manner on computers across a peer-to-peer network. Users of the blockchain network maintain a copy of the ledger with all copies of the ledger synchronized through a consensus algorithm. Protocols included in the source code govern the rules, operations, and communications of the underlying blockchain network, including the validation of new blocks that contain an updated ledger reflecting new transactions.

This lack of a single point of data collection is believed to enhance the security of traditional blockchain networks and blockchain assets. Nonetheless, blockchain assets and blockchain trading platforms remain susceptible to security breaches and cybercrime. The crypto industry has suffered a continued series of thefts, prompting questions about the security of customer assets. In 2025, hacking incidents resulted in the theft of more than $3.4 billion in digital assets, driven in part by several large-scale exchange and protocol breaches. Variations on traditional blockchain networks include "permissioned" blockchains, in which a limited number of pre-selected users monitor and validate transactions (or add "blocks" to the chain). In a fully centralized blockchain, one organization monitors and validates transactions. Such blockchain ledgers may be viewable by the public or viewing ledger information may be restricted.

Blockchain assets are assets that utilize blockchain ledgers to record their creation, ownership, and transfer of ownership. Blockchain assets have generally been created and used in two broad contexts: within blockchain protocol layers and within application layers. Blockchain assets used at the protocol layer are generally intended to create financial incentives that drive the underlying blockchain network to verify and authorize the creation of a new block to update the ledger of ownership. Network participants may receive a fee, generally paid in the protocol's native blockchain asset, for validating the authenticity of a new block. A blockchain asset used at the application layer is not designed to incentivize validation of new blocks on the blockchain. However, the ledger of ownership of an application blockchain asset, including the record of transfers of such blockchain assets, is recorded on blocks added to the underlying blockchain. For example, Bitcoin and Ether are protocol blockchain assets used on the Bitcoin and Ethereum blockchains, respectively. The INX Token is an application blockchain asset that is recorded on the Ethereum blockchain.

Ownership of a blockchain asset is established by recording on the blockchain ledger the owner's unique identifier address, or "public address," and the amount of the asset held by such address. When a blockchain asset is transferred, the ledger records the sender's public address, the recipient's public address and the amount of digital assets transferred. Authorization of the transfer requires the sender's digital signature and a transfer fee.

Digital signatures are generated by use of the private key associated with the relevant public address. The public address is publicly known so that it may be used to direct transfers of the blockchain asset. Private keys are used to sign transactions that initiate the transfer of blockchain assets from a sender's public address to a recipient's public address. Only the private key associated with a particular public address can digitally sign a transaction proposing a transfer of the blockchain asset from one public address to another. Similar to a digital password, if an unauthorized third person learns of a user's private key, that third person could forge the user's digital signature and transfer blockchain assets from the user's public address to another public address, thereby transferring ownership of the user's blockchain assets.

*Blockchain Asset Classes*

Blockchain assets exist as a digital representation of value or rights, including rights to an underlying asset. Some blockchain assets may be viewed as having intrinsic value. In addition, the blockchain asset may be tethered to the value of another asset or may be a representation of contractual rights. Almost any asset can be "tokenized," meaning that title to the asset, including any rights associated with such title, can be recorded on a blockchain ledger. To this point, blockchain assets may be used to pay for goods and services, may entitle the owner to certain rights, or may represent assets that have traditionally existed off the blockchain.

We have identified and targeted our business operations around two emerging blockchain asset classes: cryptocurrencies and security tokens.

A "cryptocurrency," also known as a digital currency or virtual currency, is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value. Cryptocurrencies are generally used as a substitute for fiat currencies as a means of paying for goods or services or transferring value. While there remains considerable regulatory uncertainty as to which specific blockchain assets qualify as "cryptocurrencies" and which are "digital securities" (and therefore subject to securities laws), a "cryptocurrency," as the term is used in this report, is not a "security" as that term is defined under U.S. federal securities laws. Bitcoin and Ether are examples of well-known cryptocurrencies.

A "digital security" is a blockchain asset that falls within the definition of a security under federal securities laws. On April 3, 2019, the Strategic Hub for Innovation and Financial Technology (FinHub) of the SEC published informal guidance, titled "Framework for 'Investment Contract' Analysis of Digital Assets" (the "Framework"), which provides analytical tools for determining whether a blockchain asset is a security under federal securities laws. In the Framework, the SEC uses the term "digital asset" to refer to an asset that is issued and transferred using distributed ledger or blockchain technology. In this report, we use the term "blockchain asset" to distinguish between assets that are recorded and stored using blockchain technology and assets that may be stored in digital form, but which do not utilize blockchain technology. In addition, the SEC has not used the term "digital security." The Framework provides a list of factors to consider when determining whether a digital asset offered for sale is a security. The factors included in the Framework are based on an analysis of whether the blockchain asset is an "investment contract" as that term was first used by the Supreme Court in SEC v. Howey, 328 U.S. 293 (1946), and which has been further clarified through subsequent case law.

The SEC staff has acknowledged that determining whether a blockchain asset is a security can require a careful analysis of the nature of the blockchain asset and how it is offered and sold. Further, the SEC staff acknowledged that a blockchain asset that is initially sold as a security may, at a later point, no longer meet the characteristics of a security. The Framework represents the views of the SEC staff, and it is not a rule, regulation, or statement of the SEC and it is not binding on the SEC.

To determine the character of a blockchain asset and whether it should be traded on the INXD trading platform or the INXS Trading Platform, we have sought the guidance of nationally recognized outside legal counsel. In certain instances, we may seek a declaratory judgment or no action relief from the relevant regulatory agency prior to deciding whether to permit the trading of an asset on one of our platforms.

*Markets for Blockchain Assets*

 

The market for blockchain assets has grown dramatically including through dramatic volatility since blockchain assets were first introduced in 2009 with the launch of Bitcoin. There are currently over 200 active listed spot crypto exchanges. The total global crypto trading volume in September 2025 reached $4.27 trillion, with Binance, Coinbase, OKX, Bybit and Kraken among the consistently top-ranked platforms by volume and liquidity.

Some blockchain industry participants have reported that a significant percentage of blockchain asset trading activity is artificial or non-economic in nature and may represent attempts to manipulate the price of certain blockchain assets. For example, according to Chainalysis's January 2025 report, suspected wash trading across Ethereum, BNB, and Base blockchains may have accounted for up to $2.57 billion in artificial trading volume in 2024, with one address alone executing over 54,000 near-identical buy-and-sell transactions, suggesting significant non-economic activity. The most popular ways of manipulation are: pumping and dumping, whale wall spoofing and stop hunting, wash trading, and disseminating false information. As a result, trading platforms or blockchain assets may seek to inflate demand for specific blockchain assets, or blockchain assets generally, which could increase the volatility of that asset or blockchain asset trading prices generally.

On the digital securities side, the market is in an early stage of development. Early trends indicate gradual growth and growing interest from institutional and retail participants; however, there can be no assurance that such growth will continue or that the market will develop as expected. 

 

*Blockchain Asset Exchanges*

We believe that there is a growing institutional interest in operating regulated blockchain asset exchanges and trading platforms and utilizing blockchain assets in bank financing practices.

The SEC has historically treated many digital assets that meet the applicable legal standards (such as the Howey test) as securities under the Securities Act of 1933 and the Securities Exchange Act of 1934. In April 2025, the SEC's Division of Corporation Finance issued a staff statement on offerings and registrations of crypto asset securities, which clarified how issuers should evaluate registration and disclosure obligations under existing law. In May 2025, SEC staff published additional FAQs addressing crypto asset activities, including custody and capital requirements for digital asset securities, and distinguished between digital assets that qualify as securities and those that do not. The SEC has also taken steps to modernize digital asset regulation, including rescinding outdated guidance, dismissing certain enforcement actions, and issuing no-action relief to support tokenization pilots for traditional securities. Although the SEC continues to assert its regulatory jurisdiction over digital asset securities and related markets, these actions demonstrate an ongoing effort to provide greater clarity and a compliance-focused framework for regulated entities operating in the digital asset ecosystem. There can be no assurance that future rulemaking will not materially alter these views or the regulatory obligations of market participants.

Finally, the Commodity Futures Trading Commission (CFTC) has long taken the position that virtual currencies, including Bitcoin and Ethereum, may qualify as "commodities" under the U.S. Commodity Exchange Act (CEA). However, beyond its anti-fraud and anti- manipulation authorities, the CFTC generally does not oversee "spot" or cash market exchanges and transactions involving cryptocurrencies that do not utilize margin, leverage, or financing. Recent CFTC and SEC joint staff statements clarify that regulated exchanges may facilitate trading in certain spot crypto asset products. Additionally, initiatives announced in late 2025 seek to permit spot cryptocurrency products to be listed and traded on CFTC-regulated futures exchanges, reflecting evolving approaches to digital asset oversight. There can be no assurance that the CFTC's jurisdiction over digital asset markets will expand or that proposed legislative or regulatory changes will be enacted.

A large and growing number of cryptocurrency exchanges operate globally, offering trading in digital assets across both spot and derivatives markets. Trading volumes on these platforms are substantial, with the largest exchanges accounting for a significant share of total market activity.

Because of the uncertainty built into a "facts and circumstances" analysis, as well as general regulatory uncertainty worldwide, companies have begun to structure their blockchain assets as securities and conduct sales of their blockchain assets as securities offerings. As blockchain assets take on the attributes of securities and market makers expand the breadth of blockchain asset trading products into spot, futures and derivative trading instruments, the need and demand for a regulated blockchain asset trading solution continues to grow.

*Opportunities in the Current Market*

As blockchain assets are sorted into cryptocurrencies and digital securities, the need and demand for regulated trading solutions for each asset class continues to grow. However, current platforms or exchange markets that permit the trading of blockchain assets have the following shortcomings:

●  ***Lack of Trading History.*** Some blockchain asset trading platforms do not or cannot present the entire history of trades to exchange participants in a manner that would be requested by a regulator. This lack of trading history does not allow regulatory agencies to effectively monitor transactions.

●  ***Lack of Regulatory Compliance*** . Many blockchain asset trading platforms are not prepared to comply (or are not willing to comply) with regulatory requirements imposed by federal and state securities law. Blockchain asset trading platforms assume less responsibility for what takes place on their platforms as compared to regulated exchanges. For example, blockchain asset trading platforms are generally unable to verify the legitimate origin of funds in a trade and therefore cannot confirm that the trades are not in violation of anti-money laundering laws. In addition, current blockchain asset trading platforms do not provide traditional trading protections, such as liquidity reserves, making professional traders unable or reluctant to conduct trading on these exchanges. The lack of compliant exchanges for the trading of blockchain assets leads to low customer and public confidence in both the exchanges and the blockchain assets traded.

●  ***Lack of Technological Capability*** . Blockchain asset trading platforms generally do not have the technological capability to handle the large trading volumes or capture trades for multiple simultaneous trading requests without disruption or significant errors. The technology of many blockchain asset trading platforms was not developed to handle the dramatic growth in demand to engage in blockchain trades and the market has witnessed exchange outages, sometimes for many hours, pricing errors, lack of user access to their funds, and other service-related complaints.

●  ***Lack of Fee Transparency*** . There is currently no clear market standard for fees for trading blockchain assets. This is particularly true in the retail market, where many trading platforms do not separately state the transaction fee but instead include any fees as part of the price of the blockchain asset. In this way, many unregulated exchanges do not disclose their fees, creating uncertainty regarding the cost of trading.

●  ***Poor Price Discovery*** . Blockchain asset trading platforms experience inefficiencies in the form of significant arbitrage due to recurrent operational issues including temporary service outages and other temporary restrictions on access to the trading platform, the ability to withdraw or deposit fiat currencies and cryptocurrencies, or otherwise perform a trade on the platform. This creates significant exposure to arbitrage trading between exchanges. Further, the operator of a blockchain asset trading platform may trade on its own behalf on the trading platform. Doing so provides liquidity to platform participants. However, it also presents potential conflicts of interest, such as front-running customer order flow and engaging in price manipulation. By acting as a trading participant on one's own platform, trading platforms may artificially inflate or deflate prices, which impairs market pricing discovery.

These weaknesses in current blockchain asset trading platforms reveal a significant opportunity in the blockchain asset industry for market development through operations and services that provide functionality, transparency and trading platforms backed by cash reserves similar to those of regulated trading marketplaces.

**INX.One, a Single Regulated Ecosystem for Trading Blockchain Assets**

We believe that we have a comprehensive solution to the issues that we have identified.

Since our inception, we have sought to become a regulated digital hub, aiming to offer all digital services, whether with cryptocurrencies, digital securities or derivatives, under a regulated umbrella.

The first stage involved cementing our place in the United States as we began by obtaining money transmitter licenses, a broker/dealer and an ATS (registered under the SEC and FINRA) for digital assets. We are qualified to operate as a money transmitter in forty-nine (48) U.S. states plus Washington D.C. and Puerto Rico.

On September 14, 2022, we launched INX.One. a single point of entry with one onboarding process and a unified graphic user interface for both. INX.One is not a separate platform but rather a solution designed to provide users with access to INX Digital and INXS platforms, creating a unified customer experience for trading both security tokens and digital assets. After successfully completing the distinguish onboarding processes and receiving the relevant platform's approval, customers gain entry to either INX Digital and/or INXS platforms through the INX.ONE hub, which integrates both security and crypto-asset trading on a single application:

● The digital asset platform operated through our subsidiary INX Digital Inc., which offers trading on digital assets that do not constitute securities (e.g. Bitcoin and Ethereum), and

● The digital security platform operated through our subsidiary INXS, which offers trading and investing in digital assets that do constitute securities under applicable securities laws (such as the INX Token and tokens of other issuers who chose to issue a digital security).

We offer professional traders and retail and institutional investors trading platforms with established practices common in other regulated financial services markets, such as customary trading and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency.

The INX Digital trading platform operates within the US, however, users from other regions may independently access our platform and engage in trading activities involving securities or cryptocurrencies, subject to compliance with the Company's policies and procedures. The INX Digital platform offers secondary market trading in the following jurisdictions outside the US: Andorra, Anguilla, Antigua and Barbuda, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belgium, Belize, Bermuda, Bhutan, Brazil, Brunei Darussalam, Bulgaria, Cape Verde, Chile, Colombia, Comoros, Croatia, Cyprus, Czech Republic, Denmark, Djibouti, Dominica, Dominican Republic, El Salvador, Estonia, Faroe Islands, Fiji, Finland, France, French Polynesia, Gambia, Georgia, Germany, Gibraltar, Greece, Grenada, Guadeloupe, Guatemala, Guernsey, Honduras, Hong Kong, Hungary, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Jordan, Kazakhstan, Kenya, Kiribati, Korea (Republic of), Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Madagascar, Malaysia, Maldives, Malta, Marshall Islands, Martinique, Mauritania, Mexico, Micronesia (Federated States of), Moldova (Republic of), Monaco, Mongolia, Montserrat, Mozambique, Nauru, Netherlands, New Zealand, Nigeria, Norway, Oman, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Réunion, Romania, Saint Kitts and Nevis, Saint Lucia, Saint Martin (French part), Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome and Principe, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Suriname, Sweden, Switzerland, Taiwan (Province of China), Tanzania (United Republic of), Timor-Leste, Tonga, Turkey, Turkmenistan, Turks and Caicos Islands, Tuvalu, Uganda, Ukraine, United Arab Emirates, United Kingdom, and Uruguay.On the INXS platform, the security tokens are available for trading in all 50 U.S. states, as well as in two U.S. territories and other foreign jurisdictions that we believe we have the right to operate in. The INXS platform offers secondary market trading in the following jurisdictions outside the US: Argentina, Australia, Austria, Bahamas, Bahrain, Bangladesh, Barbados, Belgium, Bermuda, Bolivia (Plurinational State of), Brazil, Brunei Darussalam, Bulgaria, Cameroon, Cayman Islands, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Guadeloupe, Guatemala, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jersey, Jordan, Kenya, South Korea (Republic of), Kuwait, Latvia, Lithuania, Luxembourg, Madagascar, Malaysia, Malta, Martinique, Mexico, Netherlands, New Zealand, Nigeria, Norway, Oman, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Réunion, Romania, Saint Kitts and Nevis, Saint Lucia, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan (Province of China), Tanzania (United Republic of), Thailand, Turkey, Turks and Caicos Islands, Uganda, United Arab Emirates, United Kingdom, Uruguay, British Virgin Islands, and Zambia.

For certain of our security tokens listed on our INXS platform, in addition to trading services, the Company also offers broker-dealer of record services for certain primary offerings in compliance with local laws. We provide these services to the following jurisdictions outside the US: Argentina, Australia, Austria, Bahamas, Bahrain, Bangladesh, Barbados, Belgium, Bermuda, Bolivia (Plurinational State of), Brazil, Brunei Darussalam, Bulgaria, Cameroon, Cayman Islands, Chile, China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Guadeloupe, Guatemala, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jersey, Jordan, Kenya, South Korea (Republic of), Kuwait, Latvia, Lithuania, Luxembourg, Madagascar, Malaysia, Malta, Martinique, Mexico, Netherlands, New Zealand, Nigeria, Norway, Oman, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Réunion, Romania, Saint Kitts and Nevis, Saint Lucia, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan (Province of China), Tanzania (United Republic of), Thailand, Turkey, Turks and Caicos Islands, Uganda, United Arab Emirates, United Kingdom, Uruguay, British Virgin Islands, and Zambia.

We also created the INX Token, an ERC-1404 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain (the "<u>INX Token</u>"), which was offered to the public from August 20, 2020 and closed on April 22, 2021. For more information see below "The INX Token" and Item 4, Part A – "Information on the Company - History and Development of the Company – The Token Offering."

We designed our platforms to provide the following solutions to the problems identified above, which we believe makes the INXD trading platform, the INXS trading platform and our related business activities (collectively, the "INX.One") an attractive choice for the trading of blockchain assets:

●  ***Robust Pre-Trade and Post-Trade Services*** . We have developed trading features to permit clients to continually monitor and manage blotter, position, and other technical analysis. We also offer investment tools during the pre-trading period and provide trade confirmations, reporting and access to pricing data during the post-trading period. We intend to continue with the development of additional features and improvements to our pre-trade and post-trade services.

●  ***Historical Trading Record*** . Beginning with the first recorded transaction on the INX.One trading platforms, we apply anti-money laundering ("AML") and "Know Your Client" ("KYC") procedures for all account holders and provide transparency so that clients have the ability to review all activities taken by them. We believe that this accessibility will supplement the transparency of blockchain assets.

● **Regulation and Safeguards**. We believe that regulatory oversight will instill greater confidence in our trading platforms compared to unregulated blockchain asset trading platforms. As the ownership of blockchain assets becomes more commonplace and professional traders continue to analyze and enter the blockchain asset marketplace, we believe that clients will expect regulatory safeguards for blockchain asset trading, comparable to the current fiat and securities exchanges. All customers of INX.One, whether trading cryptocurrencies or security tokens, are required to complete KYC/AML checks in compliance with applicable laws and regulations. Blockchain assets traded on the INXD trading platform are transferred to a digital wallet held by one of our custodians.

 Blockchain assets traded on the INXD trading platform are transferred to a digital wallet held by one of our custodians, which transfer is recorded on the blockchain ledger that underlies such blockchain asset. Once a blockchain asset is deposited with our custodian, none of the trading transactions performed on the INXD trading platform are recorded on a blockchain ledger. Trades on our trading platforms are recorded only on our internal centralized servers, and they are then reflected in each customer's respective account. A transfer of a blockchain asset is recorded on its underlying blockchain ledger when the owner of the blockchain asset wishes to withdraw the blockchain asset from their account. In this event, the blockchain asset is transferred from our respective custodian's digital wallet to the customer's private digital wallet. Digital securities traded on the INXS ATS are reflected via bids and offers in the order book visible to approved users on INXS. Each user self-custodies the digital security in their own digital wallet. Trades are executed based on user instructions using API connections to third party custodians and blockchain distributed ledger technology. We have a cyber security function that ensures that transfers in and out of our respective custodian's digital wallet will be done after full verification of the person that requested the withdrawal. The procedure includes user credential verification plus a one-time password that is replaced every 30 seconds. The customer gets a dedicated unique cryptographic application that generates unique passwords every 30 seconds while we have a second unique key that enables the verification of the one-time password. The used technology implements the PPK algorithm which is considered to highly strengthen the security of the customer's account. Alex Weinert, Group Program Manager for Identity Security and Protection at Microsoft said, "Based on our studies, your account is more than 99.9% less likely to be compromised if you use MFA (Multi- Factor Authentication)."<sup>8</sup>Our system, after verifying the client's one-time password, sends a verification email with a short expiration to get additional client verification for the withdrawal request. A withdrawal request will be approved only after a completion of all the above steps. In addition to robust policies and procedures that govern the onboarding of customers to INXD trading platform, including both AML and KYC screening and controls, fiat withdrawal requests are screened by operations staff to match the account credentials and identifying information to the receiving bank account information provided for the withdrawals (i.e. first-party wires only). Discrepancies in information are investigated by operations staff and escalated to compliance staff for further review, if necessary, in-line with the suspicious activity escalation procedures in the policies referenced above. Similarly, regarding crypto withdrawal requests, our industry-leading vendor Elliptic analyzes the blockchain and risk scores the recipient wallets (barring a de minimis or market maker transfer), allowing our operations staff to timely screen withdrawal and approve, deny, or escalate to our compliance staff for further review, if necessary.

●  ***Reserve Fund*** . We provide additional comfort to our customers with respect to the financial stability of the Company by allocating a reserve fund (the "Reserve Fund"), out of the funds raised in the Token Offering, which fund is available to cover customer and Company losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. As of May 19th, 2026, there is an amount of $2.9 million in the Cash Fund that is still unclaimed and therefore undistributed.

●  ***Our Robust Technology*** . We are developing technology to support rapid trading activity. Our platforms are custom-built to support the growing blockchain asset market, and to scale along with the continued growth of the market.

<br> The architecture for the INX.One matching engine is such that all orders are matched based on a "first in, first out" ("FIFO") asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. Orders in different markets/pairs are processed in parallel to provide the fastest possible execution. To facilitate liquidity and support a vibrant trading market on our trading platforms, we offer incentives to attract high volume traders and establish strategic partnerships with market makers. INX Digital engages Keyrock s.a. and Flowdesk as independent liquidity providers on the INX Digital platform. INX.One enables trading via web portal and application programming interface solutions ("API"). The INXS ATS allows users to place bids and offers in digital securities such as the INX Token. All orders are placed in the order book which are visible to all approved users of the ATS. The ATS only accepts limit orders placed by each user. The system will automatically execute the best bids or offers in the order book. The ATS enables this peer-to-peer trading for approved users that have passed the KYC/AML requirements of INXS.<br>

●  ***Transaction Fee Transparency*** . We have established transaction fees as a percentage of digital assets received by the buyer and a percentage of consideration paid by the seller in each trade, which could be denominated in fiat or in a digital asset. For trades in digital assets on INX.One, transaction fees are charged by deducting the fee amount from the asset that is received by the buying and selling customer in a trade. For trades in security tokens on INX.One, the trading fee is deducted from the buyer and the seller in US Dollars as a percentage of the trade value in US Dollars. The transaction fees of our trading platforms are published and updated from time to time on our website available at https://www.inx.co/. For example, if a customer buys BTC with USD, the transaction fee would be charged from that customer in BTC. The same process is followed with regards to transactions where one digital asset is purchased for another. For example, if BTC is purchased with ETH, the transaction fee would be charged from the buyer in BTC. With regards to trading of security tokens, the transaction fee is charged and deducted from both customers' bank accounts (the buyer and the seller) in USD at the time of the order execution. The transaction fee is similarly set as a percentage of the transaction value based on the fee schedule referred to above. In addition, there is an Ethereum settlement fee paid by both the buyer and seller per order, which covers the blockchain costs associated with the order's execution.

As of the date of this Annual Report on Form 20-F, we offer services in the following crypto assets and security tokens (identified by symbol) on INX.One:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**INX Digital** | &nbsp;&nbsp;**INX Securities** |
| &nbsp;&nbsp; BTC | &nbsp;&nbsp;Republic NOTE |
| &nbsp;&nbsp;ETH | &nbsp;&nbsp;HAG |
| &nbsp;&nbsp;LTC | &nbsp;&nbsp;FURA |
| &nbsp;&nbsp;USDC | &nbsp;&nbsp;TRUCPAL |
| &nbsp;&nbsp;AVAXC |  |
| &nbsp;&nbsp;USDT |  |
| &nbsp;&nbsp;DOT |  |
| &nbsp;&nbsp;XRP |  |
| &nbsp;&nbsp;PYUSD |  |
| &nbsp;&nbsp;SOL |  |
| &nbsp;&nbsp;POL |  |
| &nbsp;&nbsp;TCS |  |
| &nbsp;&nbsp;CC |  |

---

The INX Digital platform operates within the U.S.; however, users from other regions may independently access our platform and engage in trading activities involving securities or cryptocurrencies, subject to compliance with the Company's policies and procedures. Trading on the INX Digital platform is offered in the following U.S. jurisdictions: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. For these assets, the Company offers listing and trading services.

On the INX Securities platform, the security tokens are listed for trading in all 50 U.S. states plus the District of Columbia and Puerto Rico, and other foreign jurisdictions that we believe we have the right to operate in. For certain of our security tokens listed on our INXS platform, in addition to trading services, the Company also offers broker-dealer of record services for certain primary offerings in compliance with local laws.

We believe that our use of the Ethereum blockchain to create the INX Token has the following benefits, which we believe makes the INX Token an attractive choice:

●  ***Decentralization*** . Record-keeping of transfers is performed in real time using a distributed ledger, with no need for third party or intermediary validation.

●  ***Traceability*** . Full historical data of all transfers of INX Tokens is recorded on the Ethereum blockchain.

●  ***Immutability*** . Data is written into the blockchain to allow it to be shared publicly while ensuring its immutability. There are no known methods for changing a blockchain once it has been written.

●  ***High Availability*** . Because the Ethereum blockchain is based on thousands of nodes in a peer-to-peer network, and data is replicated and updated on each and every node, the distributed ledger becomes highly available.

●  ***Privacy*** . Personal information of INX Token holders is stored in an encrypted form and only available to the Company and will be provided to regulatory and governmental authorities as required by law.

**Technology and Product Development**

We designed our trading platforms to provide clients with a multi-currency non-biased execution trading solution and to eventually function as broker, execution, and clearing agent. We provide trading of different types of digital blockchain assets, including cryptocurrencies and security tokens.

Our goal in the development of INX.One is to offer professionals in the financial services community a comprehensive, interactive platform that allows for seamless integrated trading, real-time risk management and reporting and administration tools. The INX.One will help our customers automate and coordinate front-office trading functions, middle-office risk management and reporting functions, and back-office accounting functions.

The INX.One website serves as a single entry point for our customers. INX.One is not a separate platform but rather a solution designed to provide users with access to INXD and INXS platforms, creating a unified customer experience for trading both security tokens and digital assets. After successfully completing the distinguish onboarding processes and receiving the relevant platform's approval, customers gain entry to either INXD and/or INXS platforms through the INX.ONE hub, which integrates both security and crypto-asset trading on a single application. As we further develop and update our trading platforms, we intend to add functionalities across the entire transaction lifecycle, as well as other information and features. Our platforms do not support cross-asset (i.e., digital securities for cryptocurrency) trading, nor will we permit the settlement of securities transactions in cryptocurrency, at least until such time as the regulatory uncertainty regarding such transactions is resolved.

INX.One is not a separate platform but rather a solution designed to provide users with access to INX Digital and INXS platforms, creating a unified customer experience for trading both security tokens and digital assets. After successfully completing the onboarding processes, which deliver distinct and separate user agreements for INX Securities and INX Digital, and receiving the relevant platform's approval, customers gain entry to either INX Digital and/or INXS platforms through the INX.ONE hub, which integrates both security and crypto-asset trading on a single application. Users of INX.One can select either "crypto" or "security token" trading markets on the INX.One platform trading page, directing them to either the INX Digital or INX Securities trading platforms, respectively.

We developed and operate each of our trading platforms through certain of our subsidiaries and these functions are separated by entity as follows:

● INXD is responsible for recording cryptocurrency trades in accordance with state money transmitter regulations; and

● INXS is responsible for recording digital security trades in accordance with applicable SEC and FINRA regulations.

We utilize key criteria in the selection of our leadership team and team members. This includes relevant experience in platform development (designing, building, and operating trading platforms), trading, financial markets, digital assets, regulations, legal or compliance skills, foreign exchange, and money transmission. Multiple team members are involved in hiring potential candidates and screening for relevant experience. Multiple interviews and reference checks are conducted for each role, and where appropriate, background checks and/or police report screening is mandatory. Licensed individuals are registered with relevant regulatory authorities. Potential team members are also evaluated based on their experience operating within regulated businesses, especially of a financial nature.

The Company utilizes "straight-through processing" for efficiently managing customer orders and subsequent trades, on both INXD and INXS. This approach entails the automatic recording of orders and trade outcomes within internal databases, seamlessly updating customer accounts without any manual involvement. While both entities maintain a dedicated staff to oversee trading activities and provide customer support as necessary, the initiation and execution of orders are fully automated

Our proprietary order management software, which is utilized by both INXD and INXS has a rules engine that ensures sufficient funds or fully paid assets are available to cover orders, prior to their submission.

 ****

***INX Digital Trading Platform***

We developed the INXD trading platform and tested its trading capabilities from a functional and load perspective. We have completed the minimum viable product of the platform that includes the architecture design, trading functionalities and the user interface and experience. To be able to handle large amounts of traffic and transactions, we are currently working on scaling the capabilities of the system from an architecture and application level. We are putting in place fail safe and recovery processes in case of system failure that are designed to inherently respond in a way that will cause no or minimal harm to core trading data.

Customers of the INXD trading platform may be entitled to discounts on trading fees charged by the Company, providing that they hold INX Tokens. Discounts may be granted according to different tiers, allowing for larger discounts given to customers who hold a larger number of INX Tokens.

INXD is registered with FinCEN as a federal money services business. In addition, we have been issued a license by the following U.S. states, territories, and districts: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia and Wisconsin and have submitted notifications or are otherwise qualified to operate (based on being exempted from any licensing requirement or notice requirement) in the following States: California, Colorado, Hawaii, Indiana, Michigan, Missouri, Montana, Utah and Wyoming. INX Digital is eligible to operate as proposed in those jurisdictions.

The INXD trading platform incorporates a secure trading and matching engine, which has high frequency transaction capabilities and supports a range of standard order types. We also developed an API interface for institutional and high volume clients.

The architecture for the INXD trading platform allows all orders to be matched based on a FIFO logic. Orders in different markets/pairs are processed in parallel to provide the fastest possible execution.

We have designed trading features to permit clients to continually monitor and manage blotter, position, and other technical analysis. We also offer investment tools during the pre-trading period and provide trade confirmations, reporting and access to pricing data during the post-trading period.

***Custody of Client Assets on the INXD trading platform***

INXD receives custodian services for cryptocurrencies held on behalf of the clients of our INXD trading platform from BitGo Trust Company ("BitGo Trust"), a trust company under §51-A of the South Dakota Banking Law that is licensed to act as a custodian of its client's digital assets on its client's behalf and BitGo, Inc. (together, "BitGo"). BitGo Trust describes itself as a "qualified custodian" as defined in Rule 206(4)-2 promulgated under the Investment Advisers Act of 1940.

We believe that BitGo is a leading provider of custody and wallet services for cryptocurrency trading, with a high degree of electronic and physical security, as well as transaction processing and reporting. BitGo is independent from INX.

BitGo offers two types of services; a hot wallet solution and a cold storage solution. INXD is contracted with BitGo for both services. A hot wallet is a multi-signature storage solution, which requires two of three private keys to transfer digital assets. Pursuant to our agreement with BitGo, INX is holding two of the keys, and BitGo, Inc. is holding the other key. Two keys are created whenever INX establishes a BitGo hot wallet, a primary key (used to authorize transactions) and a backup key (used to recover the wallet, if the wallet password is lost or if BitGo ceases operations). The Company currently utilizes BitGo's hot wallet multi-signature solution. The Company has reassessed its plan to transition to a cold storage solution, and, as of the date hereof, the Company intends to continue to utilize the hot wallet multi-signature solution for all cryptocurrency assets. Up to this point, the Company's operations have exclusively relied on the hot wallet multi-signature solution.

BitGo Trust's cold storage solution outsources key management and security to BitGo Trust. Cold storage is offline storage; it is the most secure way to store digital assets, as it is never connected to a network. INXD will transfer cryptocurrency assets from its hot wallet to cold storage at BitGo Trust; BitGo Trust, as custodian, will safeguard cryptocurrency assets for our customers. To initiate a transfer from cold storage to a Company hot wallet, we will specify the amount to transfer and submit the request to BitGo Trust. BitGo Trust will contact us, to conduct an out-of-band video verification to confirm the transfer is legitimate and that a Company authorized signatory approves it. BitGo Trust will then generate the transaction and sign it securely offline with the user key that BitGo Trust holds in custody. Once half-signed, BitGo Trust will bring the transaction back online, and upload it to the platform. After key policies are evaluated and satisfied, BitGo Inc. will then sign the transaction with the BitGo Inc. key. Once completely signed, BitGo Inc. will broadcast the transaction to the blockchain, and the cryptocurrency assets will be transferred from cold storage to the appropriate Company hot wallet. This separation of functions makes our operations more secure because, among other reasons, we only need to keep a hot wallet sufficiently funded to service withdrawals. We plan to use cold storage to store the majority of the cryptocurrency assets held by us when they become material, because cold storage provides greater asset protection through policies and physical security.

Assets are held using BitGo's multi-signature solution and properly constructed policies used in conjunction with multiple admins on a wallet, which are key elements in keeping funds safe.

BitGo's custodial services are provided pursuant to a custodial services agreement dated August 21, 2021 (as amended on January 8, 2021, March 1, 2021, and April 17, 2023, the "Custodial Services Agreement") between INXD and BitGo. For its custodial services, BitGo receives an onboarding fee and receives a monthly custody fee equal to an annualized percentage of the market value of the assets under custody (subject to a minimum monthly charge). BitGo also receives various transaction-based fees.

The Custodial Services Agreement is for an initial term of one year and has been automatically extended for one-year periods, unless terminated by either party by delivery of a written notice at least 60-days prior to the expiration of the then-current term. INXD may also terminate the Custodial Services Agreement for any reason upon 30 days' prior written notice.

The foregoing description of the Custodial Services Agreement summarizes the material terms of the Custodial Services Agreement but is not a complete description. For more details about the Custodial Services Agreement, please refer to the full text of the Custodial Services Agreement, which is attached as Exhibit 4.13 to the Company's Annual Report on Form 20-F.

In addition to the Custodial Services Agreement, on August 23, 2021 the parties thereto entered into an Electronic Trading Agreement (the "Electronic Trading Agreement") in connection with BitGo's services to INXD and the access granted to INXD by BitGo to BitGo Prime LLC's ("BitGo Prime") proprietary electronic trading system (the "BitGo System"). The Electronic Trading Agreement includes, without limitation, terms of use of the BitGo Prime System by INXD, disclaimers by BitGo Prime and limitations to its responsibility and liability in connection with the BitGo Prime System, undertakings by INXD to indemnify BitGo Prime under certain circumstances, and the right of BitGo Prime to terminate the Electronic Trading Agreement at its discretion and without cause upon a 30 days' notice. INXD's access and use of the BitGo Prime's proprietary electronic trading system is further subject to execution of, and to the terms that were determined by, the Custodial Services Agreement and a clearing and settlement addendum with BitGo Prime. BitGo Prime and its affiliates retain all rights, title and interest in and to the BitGo System, including all source code, object code, data, information, copyrights, trademarks, patents, inventions and trade secrets embodied therein, and all other rights not expressly granted to INXD pursuant to the Electronic Trading Agreement. The Electronic Trading Agreement is governed by the laws of California, USA and includes a binding arbitration clause pursuant to the Commercial Arbitration Rules of the American Arbitration Authority.

As stated in INXD's Custodial Services Agreement with BitGo, BitGo obtains and maintains insurance coverage in such types and amounts as are commercially reasonable for the custodial services provided. Any insurance related to theft of digital assets will apply to custodial services only (where keys are held by custodian) and not wallet services for non-custodial accounts (where keys are held by client).

As of April 30, 2026, there is approximately $3.5 million of customers' funds held in BitGo wallets.

INX committed to reserve 75% of the gross proceeds less payments to underwriters from its initial public offering in excess of $25,000 to be available to cover customer and INX's losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. INX refers to this amount as the "Cash Fund" or "Reserve Fund".

As a result of the sale of the Company to Republic that closed on November 10, 2025, the Company began distributing the Cash Fund was distributed to INX Token holders. As of the date of this annual report, $3,120 remained undistributed, and following the completion of the distribution to all the INX Holders. The undistributed Cash Fund amount is held in cash at INX Limited's bank and investment accounts with BMO Bank.

***INXS Trading Platform***

Company owns INXS, a Pennsylvania limited liability company, that is registered in the United States as a broker-dealer, a FINRA member, and that operates and is registered as an Alternative Trading System with the SEC. We count INXS's broker-dealer/ATS - including its digital security listings and client base - among our wholly owned subsidiaries.

INXS was developed as a platform for investors that trade (buy and sell) securities and would like to enrich their portfolios with a new type of securities, also known as "digital securities."

The INXS Trading Platform opens access to a new stream of market liquidity that comes from the alternative asset markets. The INXS Trading Platform manages to complete transactions without the need to custody the clients' tokens nor funds and still provides full confidence to the seller and the buyer that the trade will be completed based on their firm orders.

INX Securities does not provide custodial services for the funds traded on the Platform. INX Securities does not guarantee or otherwise have responsibility for settling the trades and does not, at any time, exercise any level of control over the cash being used to make the purchase. The user establishes an account at Layer2financial's (db "Rail") partner financial institutions ("PFI"). Rail PFI provides custodial services with respect to the platform users' funds for US Dollars. The user consents to instruct INX to communicate their instructions to Rail in order to move funds to and from the user's Rail PFI's accounts to effectuate settlement of a trade. As needed for trade funds settlement, instructions of the user are conveyed via API calls transmitted via the platform to Rail. As of April 30, 2026, INXS terminated its agreement with Rail and now is cash custodian for all INXS users. The cash is held at BMO Bank in an INXS Special Reserve Account.

*When a user desires to buy a security token*, these instructions directs INXS to allocate funds out of the buyer's' account to pay net sale proceeds to the seller's account and to credit commissions and fees to INX Securities' account. Pursuant to the Digital Trading Agreement, entry of a Bid order on the Platform explicitly constitutes the user's direct and complete instruction to INXS to, upon match, allocate the net transaction proceeds from the Buyer's trading account to the matched seller's trading account and allocate commissions and fees from the Buyer's trading account to INX Securities' commission account and authorizes INX Securities to transmit this instruction, upon match, to the subject security's SEC transfer agent or digital registrar, if necessary.

*When a user desires to sell a security token*, the user will indicate the quantity of the security token that he/she wishes to offer and must indicate the desired ask price. INX Securities will electronically confirm with the digital registrar that the seller's Digital Wallet indicates sufficient seller security holdings. The user consents to forward the user's transfer instructions for the security being offered to the digital registrar via a Platform API call to the digital registrar's smart contract on the Ethereum Network, to prepare for a potential transfer of the security in the event of an order match. Pursuant to the Digital Trading Agreement, entry of an Offer order on the Platform explicitly constitutes the user's direct and complete instruction to the subject security's digital registrar to, upon match, transfer the security to a matched buyer and authorizes the Company to transmit this instruction, upon match, to the subject security's digital registrar. Once this has been verified, the digital security is allowed to be offered for sale on the Platform's displayed order book.

The seller/buyer is obligated to sell/buy the digital security if there is a bid at the ask price, as determined by the matching engine, which operates on a price-time priority algorithm. These terms are described in the Digital Trading Agreement and are re-confirmed by both buyers and sellers each time a bid or offer is entered onto the Platform.

Once the asset and funds transfers described above are completed, the settlement process and trade are deemed complete.

***The INX Token***

We developed the INX Token, an ERC-1404 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain, which was offered to the public from August 20, 2021 to April 22, 2021. For more information regarding the initial offering of the INX Tokens with the SEC, see "Item 4, Part A – Information on the Company - History and Development of the Company – The Token Offering."

The INX Token operates on the ERC-1404 blockchain standard, a modified version of ERC-20 that introduces two additional functions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Detect Transfer Restrictions: This feature allows for the identification of transfer restrictions, providing enhanced security and compliance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Human-Readable Error Messages: ERC-1404 enhances user experience by offering clear and understandable error messages when a transfer is likely to fail.

Furthermore, ERC-1404's compatibility with existing wallets and exchanges designed for ERC-20 simplifies integration, making it convenient for a wide range of users and platforms.

In July 2021, we listed the INX Token on the INXS Trading Platform. We developed our token smart contract based on the "ERC-1404: Simple Restricted Token Standard." ERC-1404 is designed for security tokens, tokenized securities and other tokens that carry complex compliance requirements. ERC-1404 is a token standard developed with corporate governance, banking, and securities laws in mind. It is fully open source, which is paramount to ensuring its security, quality and interoperability. ERC-1404 carries all of the same benefits of an ERC-20 token, it is simple, easy to deploy and interoperable with the entire Ethereum universe, with a few key improvements that allow issuers to enforce regulatory transfer restrictions and maintain compliance with KYC/AML rules as well as the ability to recover tokens in case of wallet loss. The INX Token/smart contract passed an external audit test by Quantstamp.

We engaged Quantstamp, a blockchain security firm, a leader in blockchain security, having performed over 200 audits and secured over US$100 billion in value, to perform an audit of the INX Token smart contract code, which was completed on December 12, 2019 (the "INX Contract Audit"). Quantstamp's team has decades of combined experience in formal verification, static analysis, and software verification. Through their services, Quantstamp has assisted blockchain projects globally with its white glove security auditing services, and has secured billions of dollars in transaction value for blockchain applications. Quantstamp is also dedicated to research and development in the form of collaborations with leading academic institutions such as National University of Singapore and MIT (Massachusetts Institute of Technology). Quantstamp has experience with auditing various blockchain platforms including Ethereum, Binance Chain, Hyperledger, EOS, and Corda, and languages including Solidity and Vyper.

The INX Contract Audit was intended to evaluate security-related issues, code quality, adherence to specification and best practices and it includes a manual review of code and a comparison to specifications of the code. Quantstamp reviewed the INX Token smart contract for vulnerabilities related to transaction-ordering dependence, timestamp dependence, mishandled exceptions and call stack limits, reentrancy and cross-function vulnerabilities, logical oversights, access control, code clones, functionality duplication, gas usage and arbitrary token minting. The INX Contract Audit is not an endorsement of the reliability or effectiveness of the INX Token smart contract, but rather it is limited to an assessment of its logic and implementation.

During the INX Contract Audit, Quantstamp identified two specific risks: (i) the ability of a hacker to delay the release of INX Tokens by other holders as a means to get a trading advantage, and (ii) the risk to users if the Company's private keys are compromised. Quantstamp advised that the Company take caution in using particular functions when transaction ordering. Quantstamp also advised that the Company disclose the risk associated with theft or loss of its private keys having the ability to revoke INX Tokens from a third-party account or time-lock INX Tokens of such accounts. The Company has acknowledged each of these risks and has taken security precautions with regards to each.

The INX Tokens are accessible only from secure Ethereum wallets and have a recovery mechanism that allows the Company under certain circumstances to protect the INX Token holder even in the case of loss of wallet credentials.

Prospective investors who were duly identified through KYC/AML procedures were able to purchase the INX Token under the INX Token Purchase Agreement, which all initial purchasers of INX Tokens in the offering of the INX Token with the SEC are a party to, and which sets forth the rights of each INX Token holder with regard to the INX Tokens held by such holder.

Holders of INX Tokens are entitled to receive an annual pro rata distribution of 40% of the Company's cumulative net cash flow from operating activities, excluding any cash proceeds from an initial sale by the Company of an INX Token ("Adjusted Operating Cash Flow"). INX's profit share model makes these INX Token holders beneficiaries of the growth and success of INX's business.

The distribution is calculated on an annual basis and paid on or before April 30 to parties (other than the Company or its subsidiaries) that hold INX Tokens on the preceding March 31. Each annual distribution is based on INX's cumulative Adjusted Operating Cash Flow (net of cash flows which have already formed the basis for a prior distribution), calculated as of December 31 of the year prior to the distribution. However, because each INX Token holder's right to a pro rata distribution is based on our cumulative Adjusted Operating Cash Flow, no distribution will be made to INX Token holders, if at all, until the Company generates positive cumulative Adjusted Operating Cash Flows. As of December 31, 2025, cumulative Adjusted Operating Cash Flow was negative $121.2 million. The distribution to INX Token holders is a contractual obligation of the Company and a right of each INX Token holder of record as of March 31 of a year following a year end for which there was positive cumulative Adjusted Operating Cash Flow. However, the pro-rata distribution of the Company's cumulative Adjusted Operating Cash Flow is not self-executing and requires the approval of the Company's financial statements and calculation of such distributions in good faith by the Company's Board of Directors. For purposes of the calculation of the Adjusted Operating Cash Flow, cash flow from the sale and purchase of blockchain assets, including cash flow from the sale and purchase of the INX Token (excluding cash proceeds from an Initial Sale) and cash flow for interest paid and interest received, will be included in the calculation of Adjusted Operating Cash Flow regardless of their classification in the consolidated statement of cash flow of the Company. An "Initial Sale" refers to the first sale and transfer of the respective INX Token by the Company to an initial purchaser. Distributions will be paid either in U.S. Dollars to an INX Token holder's bank account or in ether which will be transferred to the INX Token holders' wallet that is recorded on the INX Token Distributed Ledger (as defined in the Token Offering).

In addition, holders of INX Tokens will be entitled to, at a minimum, a 10% discount on the payment of transaction fees on the INX trading platform, INX.One, provided that they hold INX Tokens. Discounts will be granted according to different tiers, allowing for larger discounts given to customers who hold a larger number of INX Tokens. The Company does not currently accept INX Tokens as payment for its services.

Holders of INX Tokens have contractual rights determined by the INX Token Purchase Agreement. Pursuant to the terms of the INX Token Purchase Agreement, ownership of the INX Tokens and all rights under the INX Token Purchase Agreement are contingent upon holders of INX Tokens satisfying the Company's KYC/AML procedures, including any requirements to periodically or otherwise update information provided to the Company. Transfer of INX Tokens would include similar rights and obligations toward the new holder of the INX Tokens.

● Rights of INX Token Holders Upon a Failure or a Change of Control. Each INX Token held by parties other than the Company shall entitle its holder to receive a pro rata portion (based upon the number of INX Tokens then outstanding) of the Cash Fund, if any of the following occur:

- The Company fails to operate a bona fide trading platform that permits the spot trading of Bitcoin and Ethereum by December 31, 2021, (a milestone which has, as of the date hereof, been achieved); or

(a) a sale of all or substantially all of the assets of the Company; (b) any person or entity becoming the beneficial owner, directly or indirectly, of more than 50% of the outstanding voting interests of the Company; or (c) the closing of a merger, consolidation, recapitalization or reorganization of the Company with or into any person or entity pursuant to which the shareholders of the Company immediately prior to such transaction own less than 50% of the outstanding voting interests of the resulting entity or its parent company.

● Rights of INX Token Holders Upon an Insolvency Event. If (i) the Company permanently discontinues all the activities of INX.One and there is no successor conducting a substantially similar business that assumes the obligations of the Company with regard to the INX Tokens and (ii) an "Insolvency Event" (as defined in the INX Token Purchase Agreement) occurs, then INX shall be deemed to be in breach of its obligations under the INX Token Purchase Agreement, which breach shall create a claim in favor of INX Token holders that may be asserted by INX Token holders against the Company in any proceeding arising from such Insolvency Event. The claim amount will be determined by the liquidator, a court of competent jurisdiction overseeing the liquidation, or some other authority pursuant to applicable insolvency law, and accordingly, there can be no assurance as to the payment amount, if any, that may be received by an INX Token Holder in settlement of such claim.

The Company intends that the INX Token holders will be unsecured creditors of the Company and would therefore rank pari passu with all the other unsecured creditors of the Company and senior to the claims of holders of the Company's shares. On closing of the transactions contemplated by the Security Exchange Agreement, TIDCI entered an agreement with the Company (the "Waiver and Subordination Undertaking"), pursuant to which TIDCI will (a) irrevocably subordinate its rights to receive any distributions and payments from the Company prior to the payment in full by the Company of all distributions owed to INX Token holders, and (b) irrevocably waive and subordinate its rights, in the event of an Insolvency Event, to any cash held in the Cash Fund.

The Cash Fund is not held in an escrow or trust account, but rather, is held in a separate bank account or accounts controlled by the Company. The Cash Fund can be used only for very specific designated purposes, under certain pre-identified circumstances, such as for covering losses of the Company and its clients that result from cybersecurity breaches or theft, errors in the execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses, or for the purpose of payment to holders of INX Tokens (other than to the Company itself) in the event of a change of control in the Company. In the case of an Insolvency Event, a liquidator, court or other applicable authority may determine that INX Token holders are not entitled to any payment from the Company's assets or that the INX Token holders' claims are not senior in right to claims or interests of the Company's shareholders, in particular the shareholders who have not agreed to subordinate their rights to the claims of INX Token holders. In addition, the Company may incur debt (including secured debt) that ranks equally with, or senior to, the rights of INX Token holders. In the case of an Insolvency Event, holders of debt instruments ranking senior to INX Tokens, as well as holders of other preferential claims under relevant insolvency laws, may be entitled to receive payment in full before INX Token holders receive any distribution, including distributions of Adjusted Operating Cash Flow and distributions from the Cash Fund. INX Token holders do not have a perfected security interest in either the Cash Fund, or their Pro Rata Portion (as such term is defined in the Token Offering) of the Distributable Amount (as such term is defined in the Token Offering) of the cumulative Adjusted Operating Cash Flow. There is no guarantee that an INX Token holder will receive any funds following an Insolvency Event (as such term is defined in the Token Offering). As a result of the closing of the Arrangement Agreement with Republic which occurred in November 2025, the Company began distributing the Cash Fund to INX Token holders. As of the date of this annual report, $3,120 of the Cash Fund remained undistributed, and following the completion of the distribution to all the INX Holders, the Cash Fund will be fully distributed and no assets will remain therein.

On February 15, 2026, the Company delisted the INX Token from the INX One trading platform. This decision was made following a strategic internal review of the Company's offerings, administrative requirements and other related factors. As a result of the delisting, the INX Token is no longer available for secondary market trading on the Company's platform. The Company continues to recognize the rights of INX Token holders pursuant to the terms of the INX Token Purchase Agreement.

**Future Development**

We plan to further develop our products and business, and in particular, to conduct the following development activities:

● Develop full solution to support onboarding and trading of institutions - front and back office.

● Enhance risk trading management tools.

● Create the infrastructure to develop and launch new digital assets and/or integration with third party providers for specific solutions.

● Execute the full vision of one regulated hub for digital assets – all under the same platform and share common processes (such as: registration, onboarding, trading, support).

● Develop automated know-your-client (KYC) and anti-money laundering (AML) procedures.

● Develop and launch a mobile application for digital securities trading.

● Add additional payment methods for INX.One.

● Further develop multi-blockchain support for the INXS platform.

**Our Growth Strategies**

We believe that as INX.One completes each phase of development, which we expect will increase the number of high-volume blockchain assets included on our platforms, our business operations will grow and enable us to launch several growth strategies, including the following:

● <u>Active expansion of institutional blockchain asset trading and large-scale block transactions</u>. We promote our trading platforms and related services with institutional and other accredited investors such as family offices, hedge funds and others who require access to platforms for trading cryptocurrencies or security tokens, including trades in large-scale block transactions.

● <u>Fully monetize market data and connectivity</u>. We aim to serve as a hub for blockchain asset traders, institutional investors, commercial banks and individuals trading blockchain assets. As we attract more clients, we expect that we will accumulate non-proprietary big-data relating to trading behavior and related market statistics. We plan to use this data for internal use and as a product to be sold to institutional investors and trade analysts.

● <u>Strategic opportunities</u>. We plan to continue to pursue strategic alliances with commercial banks and other licensed and regulated blockchain asset trading platforms for the expansion of our business.

● <u>The INX Token</u> *.* Use of the INX Token is intended to create a "virtuous cycle," where users will get benefits to buy INX Tokens. For example, INX Token holders may be entitled to a minimum of 10% discount on the trading fees on the INXS Trading Platform. This, in turn, may increase the value of the INX Token as the number of users on the INXS Trading Platform grows. In addition, holders of INX Tokens will be entitled to a distribution based on our net cash flow from operating activities, excluding any cash proceeds from an initial sale by the Company of an INX Token. Our profit share model makes these INX Token holders beneficiaries of the growth and success of the Company's operations. The Company has not allocated for issuance and has no current intention to issue 35 million of the 200 million INX Tokens that have been created. In addition, the Company may reserve an additional 20% of INX Tokens received as payment of transaction fees, as long as the total amount of INX Tokens reserved does not exceed 35 million plus 50% of the number of INX Tokens sold by the Company to the public pursuant to our initial public offering and subsequent offerings of INX Tokens (excluding re-issuances of reacquired INX Tokens), up to a maximum of 100 million INX Tokens. The Company does not intend to issue these reserved INX Tokens for general fundraising purposes; these INX Tokens may be issued to fund acquisitions, address regulatory requirements or fund the operations of the Company if the Board of Directors determines that the Company has net cash balances sufficient to fund less than six months of the Company's operations. We intend to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit the dilution to INX Token holders.

● <u>Single integrated solution</u>. We believe that developing INX.One with the capability to provide customers with a single integrated solution to access an array of services and features will be preferred by participants in the financial services community and will attract high volume traders who need a multifunctional trading solution. We intend to bolster our competitive position by developing platforms for a wide breadth of asset classes, each platform with a suite of workflow functionalities across the entire transaction lifecycle, including pre-trade, trade and post-trade services. In the future, the Company intends to establish a platform for the trading of cryptocurrency-based futures, options and swaps. We have taken no steps towards the establishment of such a platform, which will require the development of technological solutions as well as federal and state regulatory approvals; accordingly, there is no assurance that such a trading platform will ever be developed.

**Competition**

We face intense competition in the blockchain asset trading market on a global level. In 2025, leading blockchain asset trading platforms by trading volume and liquidity included Binance, Coinbase, OKX, Bybit and Kraken.

An ever-growing number of previously unregulated trading platforms have announced intentions to operate as a regulated broker-dealers, or as otherwise regulated entities either under the federal securities laws, U.S. state or local laws or, as applicable, the laws of other jurisdictions (outside the U.S.) such as the EU. The market for trading blockchain assets has generated considerable interest and is continually evolving with new entrants to the market. In addition, established financial institutions have expressed interest in operating regulated blockchain asset exchanges or trading platforms and utilizing blockchain assets in bank financing practices.

The market for trading blockchain assets is developing and we anticipate new entrants to the market and competition to intensify in the future. Our future competitors may have greater resources than us and there can be no assurance that we will have the financial and operational resources necessary to carry out our business plan and successfully compete with our competitors.

**Regulation of our Trading Solution**

INX Digital is registered with FinCEN as a federal money service business. In addition,, we have been issued a license by the following U.S. states, territories, and districts: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia and Wisconsin, and have submitted notifications or are otherwise qualified to operate (based on being exempted from any licensing requirement or notice requirement) in the following States: California, Colorado, Hawaii, Indiana, Michigan, Missouri, Montana, Utah and Wyoming. INX Digital is eligible to operate as proposed in those jurisdictions.

INXS was approved by FINRA as a registered broker-dealer and is registered with the SEC as an alternative trading system ("ATS").

***Regulation of Our Trading Platforms and Our Subsidiaries***

The financial services industry is subject to extensive regulation under both federal and state laws. Regulators that oversee our business activities are charged with ensuring the integrity of the financial markets and the protection of customers and other third parties who engage in the financial markets. Registration as a money transmitter, broker-dealer, and alternative trading system subject our subsidiaries to laws and regulations covering all aspects of financial services, including sales methods, trade practices, use and safekeeping of clients' funds and other assets, minimum capital requirements, record keeping, financing of securities purchases and conduct of directors, officers and employees.

*Regulation of Money Transmitters*

The vast majority of States maintain "money transmitter", "money service business" or "check casher" licensing and regulatory regimes, which generally govern entities that are in the business of taking possession of, providing non-bank storage services for and transferring funds. These state licensing regimes vary from jurisdiction to jurisdiction and, while certain states have issued guidance indicating that its licensing requirements do not apply to virtual currency, the majority of states have either affirmatively stated that certain virtual currency activities are covered by their licensing regime or have been silent on the issue. Many jurisdictions maintain exemptions and/or exceptions to their respective licensing regimes.

At a federal level, the activity regulated by state licenses also may make the relevant actor a "money transmitter" or "provider of prepaid access," each of which is considered a "money service business" ("MSB") that must be registered with FinCEN unless otherwise exempt. MSBs are subject to regulatory oversight and enforcement by FinCEN. MSBs are subject to the Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001 ("BSA"). MSBs must register with FinCEN and implement a compliance program appropriately tailored to the MSBs' money laundering and financial crime risks. An MSB's compliance program must incorporate relevant reporting, recordkeeping and anti-money laundering controls and processes, including, to the extent applicable to the MSB's business know-your-customer controls, transaction monitoring, filing of suspicious activity reports ("SARs"), and sharing information with other financial institutions under Section 314(b) of the USA PATRIOT Act, the "Funds Transfer Rule," or the "Funds Travel Rule." On March 18, 2013 and May 9, 2019, FinCEN issued guidance concerning virtual currency and MSB licensing requirements in which FinCEN identified "administrators" or "exchangers" of virtual currencies as MSBs, unless an exemption applies. There are various exemptions to the MSB registration requirements. For example, entities that are "registered with, and functionally regulated or examined by, the SEC or the CFTC" are exempt from federal MSB registration and reporting obligations.

Larger money transmitters may also be subject to direct supervision by the Consumer Financial Protection Bureau (the "CFPB") and are required to provide additional consumer information and disclosures, adopt error resolution standards and adjust refund procedures for international transactions originating in the United States in a manner consistent with the Remittance Transfer Rule (a rule issued by the CFPB pursuant to the Dodd-Frank Act). In addition, the CFPB may adopt other regulations governing consumer financial services, including regulations defining unfair, deceptive, or abusive acts or practices, and new model disclosures. In addition, money transmitters may be subject to periodic examination by the CFPB.

We have registered INX Digital with FinCEN as a federal MSB and we have notified or intend to notify and/or register with state regulators in compliance with state money transmitter requirements. We do not currently intend to rely on any state or federal exemptions to registering as an MSB, including any exemptions relating to registration with and regulation by the SEC or CFTC, and we intend to monitor all legislative and regulatory developments with respect to the BSA, including the publication of further rulings or guidance by FinCEN, and to make revisions to INX Digital's compliance program when appropriate.

*Broker-Dealer Regulation*

In the United States, the SEC is the federal agency responsible for the administration of the federal securities laws, with certain standard setting and monitoring responsibilities delegated to self-regulatory organizations ("SROs"). Of these SROs, the regulation of broker-dealers is principally the function of FINRA and every firm and broker that sells securities to the public in the United States must be licensed and registered by FINRA. National securities exchanges, such as the New York Stock Exchange, also regulate and monitor broker-dealer activity. In addition to federal and SRO oversight, securities firms are also subject to regulation by state securities administrators in those states in which they conduct business.

Broker-dealers, like other securities market participants, must comply with the general "anti-fraud" provisions of the federal securities laws. The "anti-fraud" provisions prohibit misstatements or misleading omissions of material facts, and fraudulent or manipulative acts and practices, in connection with the purchase or sale of securities, and broker-dealers must conduct their activities to avoid these kinds of practices.

Broker-dealers must also comply with many requirements that are designed to maintain high industry standards. Broker-dealers owe their customers a duty: a) of fair dealing, b) to recommend only those specific investments or overall investment strategies that are suitable, c) to seek to obtain the most favorable terms available under the circumstances for its orders (best execution), d) to provide at or before the completion of transaction certain information (including the identifying the securities involved in the transaction and compensation related to the transaction), and e) to provide notice about purchasing securities on credit, among other disclosure requirements.

Broker-dealers are also subject to broad obligations under the Bank Secrecy Act to guard against money laundering and terrorist financing which include requirements to file reports or retain records relating to suspicious transactions, customer identity, large cash transactions, cross-border currency movement, foreign bank accounts and wire transfers, among other things.

Every U.S.-registered broker-dealer is also subject to the Uniform Net Capital Requirements. The Uniform Net Capital Requirements are designed to ensure financial soundness and liquidity by prohibiting a broker or dealer from engaging in business at a time when it does not satisfy minimum net capital requirements.

In the United States, net capital is essentially defined as net worth (assets minus liabilities), plus qualifying subordinated borrowings and less certain mandatory deductions that result from excluding assets that are not readily convertible into cash and from conservatively valuing certain other assets, such as a firm's positions in securities. Among these deductions are adjustments, which are referred to as "haircuts," in the market value of securities positions to reflect the market risk of such positions prior to their liquidation or disposition. The Uniform Net Capital Requirements also impose a minimum ratio of equity to subordinated debt which may be included in net capital.

Regulations have been adopted by the SEC that prohibit the withdrawal of equity capital of a broker-dealer, restrict the ability of a broker-dealer to distribute or engage in any transaction with a parent company or an affiliate that results in a reduction of equity capital or to provide an unsecured loan or advance against equity capital for the direct or indirect benefit of certain persons related to the broker-dealer (including partners and affiliates) if the broker-dealer's net capital is, or would be as a result of such withdrawal, distribution, loan or advance, below specified thresholds of excess net capital. In addition, the SEC's regulations require certain notifications to be provided in advance of such withdrawals, distributions, reductions, loans and advances that exceed in the aggregate 30% of excess net capital within any 30 day period, and the SEC has the authority to restrict, for up to 20 business days, such withdrawal, distribution or reduction of capital if the SEC concludes that it may be detrimental to the financial integrity of the broker-dealer or may expose its customers or creditors to loss. Notice is required following any such withdrawal, distribution, reduction, loan or advance that exceeds in the aggregate 20% of excess net capital within any 30 day period. The SEC's regulations limiting withdrawals of excess net capital do not preclude the payment to employees of "reasonable compensation."

Compliance with the Uniform Net Capital Requirements may limit the extent and nature of our operations requiring the use of our registered broker-dealer subsidiaries' capital and could also restrict or preclude our ability to withdraw capital from our broker-dealer subsidiaries.

*Regulation ATS*

Regulation ATS permits a U.S. ATS to match orders submitted by buyers and sellers without having to register as a national securities exchange. An ATS, although functionally an exchange, is regulated as a broker-dealer. In order to acquire the status of an ATS, a firm must first be registered as a broker-dealer, and then file an initial operation report with respect to the trading system on Form ATS. The Form ATS must provide detailed information regarding the types of subscribers it expects to admit to the system, the securities it expects to trade, the manner in which the system operates, including how orders are entered and transactions executed, reported, cleared and settled, as well as all relevant infrastructure and procedures concerning system access, capacity, supervision, security, contingency planning and subscriber compliance.

The initial operation report must be accurate and kept current. The Commission does not issue approval orders for Form ATS filings; however, the Form ATS is not considered filed unless it complies with all applicable requirements under Regulation ATS. Regulation ATS contains provisions concerning the system's operations, including: fair access to the trading system; fees charged; the display of orders and the ability to execute orders; system capacity, integrity and security; record keeping and reporting; and procedures to ensure the confidential treatment of trading information.

An ATS must also comply with any applicable SRO rules and with state laws relating to alternative trading systems and relating to the offer or sale of securities or the registration or regulation of persons or entities affecting securities transactions.

*Futures Exchanges, Clearing Houses, and Swaps*

The CFTC is the federal agency primarily responsible for the administration of federal commodities laws, including the adoption of rules applicable to Futures Commissions Merchants, Designated Contract Markets and Swap Execution Facilities. The operations of U.S. futures exchanges, clearing houses, swap data repository and swap execution facilities are subject to extensive regulation by the CFTC. The CFTC carries out the regulation of the futures and swaps markets and clearing houses in accordance with the provisions of the CEA as amended by, among others, the Commodity Futures Modernization Act and Dodd-Frank.

**Regulatory Oversight of Blockchain Assets**

The following is a summary of recent regulatory actions and developments taken with regard to blockchain assets. Regulatory authorities in the U.S. have taken a range of actions involving blockchain assets. Prior to 2025, the SEC pursued numerous enforcement actions addressing the characterization of certain blockchain assets as securities and the operation of digital asset trading platforms and related services. In 2025 and thereafter, the U.S. regulatory approach evolved, with a greater emphasis on legislative and policy-based frameworks., alongside the dismissal or resolution of certain high-profile enforcement actions. Despite these developments, regulation of the blockchain industry continues to evolve rapidly, and regulatory approaches may differ significantly across jurisdictions and these may impact the Company's operations.

Regulation of blockchain assets by U.S. federal and state governments, foreign governments and self-regulatory organizations is evolving. As blockchain assets have grown in popularity and in market size, the U.S. Congress and various agencies such as the SEC, the CFTC, FinCEN and others, have expanded their regulatory focus, and initial legislation has been enacted (such as the GENIUS Act), but a comprehensive unified regulatory regime has not yet been fully established.

Historically, the SEC has taken various actions against persons or entities misusing blockchain assets, including virtual currencies, in connection with fraudulent schemes, inaccurate and inadequate publicly disseminated information, and the offering of unregistered securities. In addition, on July 25, 2017, the SEC issued Release No. 81207 ("the DAO Report"), in which it analyzed a certain issuance of tokens, and indicated that "whether or not a particular transaction involves the offer and sale of a security – regardless of the terminology used – will depend on the facts and circumstances, including the economic realities of the transaction." The SEC clarified that the registration requirements" apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are …distributed in certificated form or through distributed ledger technology…"

On December 4, 2017 and December 11, 2017, the SEC announced enforcement actions relating to the PlexCoin and Munchee token launches, respectively. Also on December 11, 2017, SEC Chairman Jay Clayton published a public statement entitled "Cryptocurrencies and Initial Coin Offerings." The SEC has made a concerted effort to monitor the ICO market and address—through the DAO Report and SEC guidance—transactions and behaviors it believes are both inconsistent with and in violation of U.S. securities laws.

In early 2018, media reports indicated that the SEC has subpoenaed around 80 cryptocurrency firms as part of a targeted probe. On March 7, 2018, the Divisions of Enforcement and Trading and Markets issued a public statement stating that many digital assets are likely to be securities under the federal securities laws and urged investors to use platforms for trading such assets that are registered with the SEC, such as a national securities exchange, ATS, or broker-dealer. Since March 2018, the SEC has continued to bring enforcement actions and make public statements which further supports its view that blockchain assets should be treated as securities in almost all cases.

In December 2020 the SEC filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that the sale of XPR constituted an unregistered securities offering that raised over $1.3 billion. In 2024, the court entered a judgment imposing a civil penalty on Ripple, and in 2025, the parties dismissed their appeals, leaving the district court judgment in effect.

The SEC also sued blockchain-based publishing company LBRY Inc,. alleging LBRY offered and sold "LBRY Credits" or "LBC" without registering them as securities in violation of the US federal securities laws. A US District Court judge in New Hampshire ruled that no reasonable jury could reject the SEC's claim that LBRY offered LBC as an investment in its content distribution network and therefore, securities. LBC did not sell the tokens through an initial coin offering (ICO), but instead sold LBC directly through the LBRY application. LBRY attempted to argue that LBC had utility and were able to be used as currency on the platform early on to compensate creators and incentivize users. LBRY CEO noted the judge's decision in this case "threatens the entire US cryptocurrency industry" by setting a standard that would deem "almost every cryptocurrency" a security. As this case was heard in the US First District, it does not necessarily impact any decision in the Ripple case held in the Second District.

In December 2022, the SEC filed a complaint against Thor Technologies, Inc. and certain of its officers, for the sale of its Thor tokens as unregistered securities from its 2018 ICO. The SEC highlighted in its complaint that the Thor tokens were marketed as an investment, and Thor did not give proper disclosures to investors regarding its financial condition and ability to generate profits. In October 2023, the court entered a default judgment in favor of the SEC, ordering disgorgement, prejudgment interest, and permanent injunctions against the company and its founder.

The SEC charged the FTX Trading Ltd. CEO and co-founder with defrauding investors through its crypto asset trading platform, FTX, with investigations of other securities law violations ongoing. The CEO of FTX and various alleged celebrity endorsers were also sued in a potential class action lawsuit for engaging in the unlawful sale of unregistered securities, deceptive and unfair business practices and participation in a civil conspiracy akin to a "Ponzi scheme." However, this is only one of many during 2022, and we will highlight a few notable ones below.

In July 2022, the SEC filed a complaint against Coinbase Global, Inc., employee and two others alleging insider trading in violation of the federal securities laws. In its complaint, the SEC alleged that at least nine of the digital assets involved met the definition of securities under the U.S. law.

In June 2023, the SEC filed a complaint against Coinbase Global, Inc., claiming that it was operating an unlawful securities exchange, clearing agency, and broker. In February 2025, Coinbase announced that the SEC agreed to drop its enforcement lawsuit, subject to final Commission approval. In June 2023, the SEC also filed a complaint against Binance, its U.S. affiliate, and founder Changpeng Zhao, alleging several securities violations. In May 2025, the SEC voluntarily dismissed its enforcement lawsuit against Binance and Zhao, with prejudice.

In November 2023, the SEC filed a complaint against Kraken, alleging it was operating as an unregistered securities exchange, broker, dealer, and clearing agency, in violation of the Securities Act of 1934. In March 2025, Kraken announced that the SEC had agreed in principle to dismiss its lawsuit with prejudice, without penalties or business changes.

On April 3, 2019, the Strategic Hub for Innovation and Financial Technology (FinHub) of the SEC published informal guidance, titled "Framework for 'Investment Contract' Analysis of Digital Assets" (the Framework), which provides analytical tools for determining whether a blockchain asset is a security under the U.S. federal securities laws. In the Framework, the SEC uses the term "digital asset" to refer to an asset that is issued and transferred using distributed ledger or blockchain technology. In this report, we use the term "blockchain asset" to distinguish between assets that are recorded and stored using blockchain technology and assets that may be stored in digital form but which do not utilize blockchain technology. In addition, the SEC has not used the term "security token." The Framework provides a list of factors to consider when determining whether a digital asset offered for sale is a security. The factors included in the Framework are based on an analysis of whether the blockchain asset is an "investment contract" as that term was first used by the Supreme Court in *SEC v. Howey*, 328 U.S. 293 (1946), and which has been further clarified through subsequent case law.

The SEC has historically focused on the cryptocurrency industry, and digital asset regulation continues to remain an area of focus. The current administration signalled a shift toward clearer regulatory frameworks and engagement with industry participants.

In January 21, 2025, the SEC launched a crypto task force, led by Commissioner Hester Peirce, dedicated to developing a comprehensive and clear regulatory framework for crypto assets. Additionally, the President signed an executive order titled "Executive Order on Strengthening American Leadership in Digital Financial Technology" that outlined the administration's commitment to strengthening U.S. leadership in the digital asset space and established an inter-agency working group for artificial intelligence and digital assets that is tasked with proposing a regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. Additionally, on February 20, 2025, the SEC announced the creation of the Cyber and Emerging Technologies Unit (CETU), which consists of approximately 30 fraud specialists and attorneys, focusing on combating cyber-related misconduct and protecting retail investors from bad actors in the emerging technologies space.

In May 2025, SEC staff published additional FAQs addressing crypto asset activities, including custody and capital requirements for digital asset securities, and distinguished between digital assets that qualify as securities and those that do not. The SEC has also taken steps to modernize digital asset regulation, including rescinding outdated guidance, dismissing certain enforcement actions, and issuing no-action relief to support tokenization pilots for traditional securities.

In July 2025, the U.S. Congress passed the GENIUS Act, the first comprehensive federal legislation governing stablecoins. The law establishes a federal licensing and supervision framework for payment stablecoins, including requirements for transparency, reserves, and consumer protection. In parallel, the Digital Asset Market CLARITY Act passed the U.S. House of Representatives, aiming to clarify the classification of digital assets as securities or commodities and set registration requirements. The CLARITY Act remains under consideration by the Senate, with potential passage expected in early 2026.

Additionally, in January 2026, the U.S. Securities and Exchange Commission staff (Divisions of Corporation Finance, Investment Management, and Trading and Markets) issued a joint statement clarifying the application of federal securities laws to tokenized securities. The statement confirms that tokenized securities remain securities under U.S. law regardless of their digital format and discusses various tokenization models, including issuer-sponsored and third-party tokenization. This statement does not establish new law but reflects the staff's current views on regulatory treatment and compliance expectations for tokenized representations of securities.

The CFTC has historically asserted that bitcoin and other virtual currencies meet the definition of a commodity and that it has regulatory authority over futures and other derivatives based on virtual currencies, subject to facts and circumstances. The CFTC defined "virtual currencies" as "a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value, but does not have legal tender status in any jurisdiction. Bitcoin and other virtual currencies are distinct from 'real' currencies, which are the coin and paper money of the United States or another country that are designated as legal tender, circulate, and are customarily used and accepted as a medium of exchange in the country of issuance." Although the CFTC maintains regulatory oversight of the commodities markets, beyond its anti-fraud and anti- manipulation authorities, the CFTC generally does not oversee "spot" or cash market exchanges and transactions involving virtual currencies that do not utilize margin, leverage, or financing. In 2025, the CFTC continued to monitor digital asset markets closely, while Congress passed the GENIUS Act, which regulates stablecoins, and debated the Digital Asset Market CLARITY Act, which would clarify digital asset classification and CFTC registration authority. The CFTC also maintained ongoing discussions with Congress regarding expanded jurisdiction over spot and derivatives digital asset markets, and any future legislation could impact the Company.

In addition to relevant state money transmitter and securities laws, local state regulators may also regulate or seek to regulate blockchain assets. In July 2014, the New York State Department of Financial Services (the "NYSDFS") proposed the first state regulatory framework for licensing participants in "virtual currency business activity." The regulations, known as the "BitLicense," are intended to focus on consumer protection and, after the closure of an initial comment period that yielded 3,746 formal public comments and a re-proposal, the NYSDFS issued its final BitLicense regulatory framework in June 2015. The BitLicense regulates the conduct of businesses that are involved in "virtual currencies" in New York or with New York customers and prohibits any person or entity involved in such activity to conduct activities without a license. Not all regulations of blockchain assets are restrictive. For example, on June 28, 2014, California repealed a provision of its Corporations Code that prohibited corporations from using alternative forms of currency or value. The bill indirectly authorizes the use of bitcoin as an alternative form of money in the state.

The IRS continues to treat bitcoin as property for U.S. federal income tax purposes. Taxing authorities of a number of U.S. states have also issued their own guidance regarding the tax treatment of bitcoin for state income or sales tax purposes. The treatment of blockchain assets may be the subject of contemplated tax reform. Recent IRS guidance clarifies treatment of digital asset transactions and reporting obligations, including new digital asset information reporting regulations that apply starting in 2025.

On November 13, 2017, the European Securities and Markets Authority ("ESMA") issued two statements, the first statement was intended to warn investors of the inherent risks of ICOs, and the second statement sought to alert companies involved in ICOS to the need to meet relevant EU and member state regulatory requirements. On February 12 2018, ESMA issued another EU-wide warning to consumers about the risks of buying virtual currencies. In July 2018, The EU Fifth Anti Money Laundering Directive (EU) 2018/843 came into force and extended the scope of KYC/AML regulations pertaining to virtual currency exchange platforms and wallet providers. On January 9 2019, both ESMA as well as the European Banking Authority published reports on crypto-assets and assessed the suitability of the existing regulatory framework relating to these instruments. In October 2021, the FATF updated its 2019 Guidance for a risk-based approach to virtual assets and virtual asset service providers ("VASPs"). The update focused mainly on helping countries and VASPs understand their anti-money laundering and counter-terrorist financial obligations, whilst also providing guidance on how to effectively implement the FATF's requirements as they apply to this sector.

Additionally, newly introduced European regulations establish the foundation for a new regulatory framework governing crypto assets within the EU. MiCA entered into force in 2023 and creates one of the most encompassing regulatory regimes designed to provide legal clarity and certainty for crypto-asset issuers, crypto-asset providers and crypto-assets not covered by existing financial services legislation. MiCA covers transparency and disclosure requirements for the issuing, offering to the public and admitting of crypto-assets to a trading platform; the authorization and supervision of crypto-asset service providers and issuers of asset-referenced and electronic money tokens; the operation, organization and governance of the issuers and crypto-asset service providers; protection for holders of crypto-assets and clients of service providers; measures to prevent insider dealing, unlawful disclosure of inside information and market manipulation. MiCA became effective on December 30, 2024, however, rules on asset-referenced tokens and e-money tokens applied starting on June 30, 2024, and impact any operations in the European Union. The new Regulation on the Traceability of Transfers of Funds ("TFR") applied as of December 2024 and provides for the traceability of crypto-assets transfers and the authentication of users, aligning with FATF standards.

MiCA is part of a broader E.U. digital finance package, which, inter alia, also includes the Digital Operational Resilience Act ("DORA") which applied as of January 2025 and the DLT Pilot Regime which has started applying since March 2023 and provides a legal framework for trading and settlement of transactions in crypto-assets that qualify as financial instruments under MiFID II., contributing to a more integrated and harmonized regulatory framework within the E.U.

Blockchain assets also face an uncertain regulatory landscape in many foreign jurisdictions. On September 4, 2017, the People's Bank of China labeled blockchain asset sales as "illegal and disruptive to economic and financial stability." Previously, China had issued a notice that classified bitcoin as legal and "virtual commodities;" however, the same notice restricted the banking and payment industries from using bitcoin, creating uncertainty and limiting the ability of Bitcoin Exchanges to operate in the then-second largest bitcoin market. In 2021, it was reported that China banned all cryptocurrency trading and mining. It is possible that persons from the Chinese market have been or have been attempting to engage in cryptocurrency trading activity through off-shore access. Notwithstanding the foregoing, it is still illegal in China except for highly restricted instances of personal investment or as a payment method.

In 2017, South Korea's Financial Services Commission imposed broad restrictions on token issuance and institutional participation in cryptocurrency markets. That approach has since evolved, with comprehensive virtual asset legislation enacted in July 2024 and, in 2026, the lifting of the long-standing corporate investment ban to permit regulated corporate investment in cryptocurrencies subject to defined limits. Japan regulates crypto assets through a registration and oversight regime under the Payment Services Act, but is actively reforming its legal framework to treat many crypto assets as financial products with added securities-style oversight and enhanced market rules As of December 2025, there were 28 crypto-asset exchange service providers registered with the Japanese Financial Services Agency (FSA) under the Payment Services Act. Singapore has enacted a comprehensive regulatory regime under the Payment Services Act, including finalized stablecoin rules in 2023, and has further strengthened its framework by expanding licensing requirements to Singapore-based digital token service providers serving overseas customers, while stablecoin issuers must meet strict criteria to be designated as MAS-regulated stablecoins.

The UK is in the process of formalizing comprehensive crypto regulation, with primary legislation expected to take effect by October 2027. This will bring crypto assets fully under the Financial Services and Markets Act regime, giving the Financial Conduct Authority (FCA) explicit powers to regulate crypto trading platforms, custody services, stablecoin issuance, and other cryptoasset activities. In the interim, certain crypto activities in the UK remain subject to FCA oversight, including anti-money-laundering and customer protection obligations for cryptoasset firms under the Money Laundering Regulations 2017, as well as FCA financial promotions and consumer protection guidance designed to ensure clear risk disclosures for UK retail investors.

Israeli authorities have continued to advance regulation of crypto assets. In late 2024 and into 2025, the Israel Tax Authority and Ministry of Finance published a memorandum proposing to define "digital assets" as capital assets subject to capital gains tax, providing statutory clarity on their tax treatment. The Israel Securities Authority (ISA) has also published proposals to amend securities regulations to clarify the legal status of digital assets and bring certain crypto activities under existing securities law. While comprehensive crypto-specific legislation has not yet been enacted, these initiatives reflect ongoing efforts by multiple regulators, including the ISA, the Bank of Israel, and the Ministry of Finance, to provide greater legal and tax clarity for digital assets in Israel.

In Canada, the Canadian Securities Administrators (the "CSA"), the umbrella group for the provincial and territorial securities regulators, have generally taken the position that securities laws apply to cryptocurrencies. The CSA, beginning in 2017, has published a series of Staff Notices outlining their position and explaining how securities laws apply to various aspects of the cryptocurrency industry. The majority of those Staff Notices have dealt with the question of when a cryptocurrency constitutes a security for securities law purposes, as well as providing specific regulatory guidance for cryptocurrency trading platforms that have Canadian resident customers and other businesses that hold cryptocurrencies on behalf of Canadian clients. As the Company does not have Canadian clients, or other Canadian operations, such regulatory guidance does not apply to the Company. In a September 2024 announcement, the Canadian Securities Administrators extended the deadline for registered crypto asset trading platforms ("CTPs") to comply with value-referenced crypto assets related terms and conditions to December 31, 2024. Additionally, during 2024 several CTPs received authorization to operate in Canada.

The Government of Gibraltar enacted the Financial Services (Distributed Ledger Technology Providers) Regulations (the "DLT Regulations") which came into effect on January 1, 2018. The primary purpose of the DLT Regulations is to create a safe environment for DLT-related businesses to operate and innovate, while simultaneously protecting consumers and safeguarding Gibraltar's reputation as a trusted and stable global business hub. In April 2022, Gibraltar introduced the 10<sup>th</sup> core principle of their DLT Regulations, Market Integrity. This principle focuses on combating market and price manipulation, as well as any other activity that may negatively affect the reputation of Gibraltar's digital asset market. The integrity of these markets is a key focus and Gibraltar intends to remain at the forefront of standard setting in the industry. Companies which use blockchain technology to store or transmit value belonging to others by way of business are caught by the DLT Regulations and require a license in Gibraltar. The activity of undertaking a token sale does not automatically fall within the scope of the DLT Regulations, however, this will depend on the manner in which the sale of tokens is structured and the characteristics of the token. The Gibraltar Financial Services Commission ("GFSC") issued guidance notes in 2024 as to the scope of the DLT framework, to assist DLT providers in understanding and complying with their regulatory obligations. In October 2025, amendments to the Financial Services Act expanded the regulatory perimeter by bringing virtual asset arrangements — including the exchange of virtual assets for fiat currency or for other virtual assets — within the regulated activities regime, requiring firms to obtain Part 7 permission from the GFSC. Gibraltar has also implemented cross-border anti-money-laundering requirements, including the FATF Travel Rule for virtual asset transfers, and is advancing a digital clearing and settlement framework for virtual asset derivatives, reflecting ongoing evolution of its regulatory standards for distributed ledger and virtual asset activities.

*European Regulation*

The extension of anti-money laundering requirements to certain crypto-related activities by the European Union's Fifth Money Laundering Directive has increased the regulatory compliance burden for our business in Europe and, as a result of the fragmented approach to the implementation of its provisions, resulted in distinct and divergent national licensing and registration regimes in different E.U. Member States. Since then EU lawmakers have reached provisional agreements and adopted a European anti-money laundering (AML) package, bringing new rules on anti-money laundering one step closer in the legislative process. The aim of the AML package is to update the EU AML framework and tackle the evolving landscape of money laundering practices within the EU.

The Council of the EU and the European Parliament have reached common positions on parts of the AML reform package, including the establishment of a new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) with direct and indirect supervisory powers over high-risk obliged entities, including certain crypto-asset service providers, and the adoption of a new directly applicable EU AML Regulation that will set a single rulebook for obliged entities throughout the EU. These measures, together with enhanced customer due diligence requirements and broader coverage of obliged entities, are intended to close loopholes in national AML regimes and provide greater consistency in anti-money-laundering oversight across Member States. The new EU AML framework was adopted in 2024 and is being implemented, and at the beginning of 2026 AMLA and the European Banking Authority completed the handover of all AML/CFT mandates and functions, establishing AMLA as the EU's central authority for anti-money-laundering and counter-terrorist-financing supervision.

Additionally, European regulations establish the foundation for a regulatory framework governing crypto assets within the EU. MiCA entered into force in June 2023 and creates one of the most encompassing regulatory regimes designed to provide legal clarity and certainty for crypto-asset issuers, crypto-asset providers and crypto-assets not covered by existing financial services legislation. MiCA covers transparency and disclosure requirements for the issuing, offering to the public and admitting of crypto-assets to a trading platform; the authorization and supervision of crypto-asset service providers and issuers of asset-referenced and electronic money tokens; the operation, organization and governance of the issuers and crypto-asset service providers; protection for holders of crypto-assets and clients of service providers; measures to prevent insider dealing, unlawful disclosure of inside information and market manipulation. MiCA became effective starting on December 30, 2024, however, rules on asset-referenced tokens and e-money tokens applied starting on June 30, 2024, and impact any operations in the European Union. The Regulation on the Traceability of Transfers of Funds ("TFR") has also applied from December 2024 and provides for the traceability of crypto-assets transfers and the authentication of users, aligning with FATF standards.

MiCA is part of a broader E.U. digital finance package, which, inter alia, also includes the Digital Operational Resilience Act ("DORA") which applied as of January 2025; and the DLT Pilot Regime which has started applying since March 2023 and provides, amongst others, a legal framework for trading and settlement of transactions in crypto-assets that qualify as financial instruments under MiFID II.

*United Kingdom*

In October 2022, the House of Commons voted to give HM Treasury (HMT) the power to make crypto assets a regulated financial instrument. The vote clarified that 'Digital Settlement Assets' can be brought within the scope of the existing provisions of the Financial Services and Markets Act 2000 (FSMA).

The Financial Services and Markets Act of 2023 (FSMA 2023) became effective on June 29, 2023. It gives the government of the United Kingdom the authority to specify which cryptocurrency activities fall under the FSMA and to specify what activities fall under the Designated Activities Regime (DAR). FSMA 2023 also grants the authority to establish a regulatory regime for digital settlement assets (DSA), also known as stablecoins, for payment activities. In November 2024, the UK Financial Conduct Authority ("FCA") published a series of pieces on crypto regulation, including its anticipated crypto roadmap, which sets out key dates for the development of a comprehensive regulatory framework for crypto in the UK and forecasts the publication of all Policy Statements to be completed in 2026, with the regime coming into force in 2027. Under the future regime, firms undertaking specified cryptoasset regulated activities will generally need to obtain authorisation from the FCA and comply with applicable conduct, prudential and consumer protection rules.

*Japan*

 

In June 2023, the Japanese government introduced new notification obligations (travel rule) regarding crypto-assets and electronic payment instruments providing Japanese authorities with additional monitoring capabilities to track virtual currency transfers.Crypto-asset Exchange Service Providers and Electronic Payment Instrument Exchange Service Providers (collectively referred to as "VASPs") have to submit information on originators and beneficiaries at the time of transfer of crypto-assets or electronic payment instruments, to make it possible to trace transaction flows.

Japan has since limited the scope of the travel rule to transfers involving foreign VASPs located in jurisdictions that have regulations equivalent to the travel rule requirements in Japan. In June 2025 the Financial Services Agency finalized amendments expanding the list of jurisdictions covered by the travel rule effective August 1, 2025.

To date, we have treated, and we anticipate continuing to treat, the INX Tokens as securities under the laws of all foreign jurisdictions.

**C. Organizational Structure.**

***TIDCI***

TIDCI, the sole shareholder of the Company until the completion of the Arrangement, was incorporated under the Business Corporations Act (British Columbia) ("BCBCA") on August 22, 2018, as evidenced by a Certificate of Incorporation issued pursuant to the provisions of the BCBCA under the name "Valdy Investments Ltd."

On May 27, 2019, Valdy completed its initial public offering of common shares as a CPC, pursuant to which it issued 2,500,000 common shares ("Valdy Shares") at a price of CAD$0.10 per Valdy Share for gross proceeds of CAD$250,000. The Valdy Shares were listed on the TSXV on May 29, 2019, under the symbol "VLDY.P" until November 16, 2021, when they were voluntarily delisted from the TSXV.

TIDCI consolidated its issued and outstanding common shares (the "Consolidation") on the basis of one (1) post-Consolidation Share for every 2.7266667 pre-Consolidation Shares outstanding on a fully-diluted basis such that immediately prior to the Closing, there were 5,124,740 Shares outstanding on a fully-diluted basis ("post consolidated shares").

TIDCI issued to the shareholders of INX (excluding holders of INX Financing Shares) consideration of an aggregate of 167,331,410 post-Consolidation common shares. The common shares issued to holders of INX Financing Shares were issued on a 1:1 basis, and all other common shares will be issued on the basis of 10.4871348 common shares for each INX Share (the "Conversion Ratio").

On January 10, 2022, the Valdy Transaction was completed, pursuant to which Valdy acquired all of the issued and outstanding securities of the Company (including all outstanding options and warrants) from the INX Securityholders by way of a securities exchange, in accordance with the terms and conditions of the Security Exchange Agreement dated November 3, 2021, whereby its name was changed from "Valdy Investments Ltd." to "The INX Digital Company, Inc." For more information on the Security Exchange Agreement, see "Item 7, Part A – Major Shareholders and Related Party Transactions – Major Shareholders – Changes in Percentage Ownership by Major Shareholders - Security Exchange Agreement."

TIDCI has obtained a final approval from the Cboe Canada exchange ("Cboe CA") to list the Valdy Shares on Cboe CA under the symbol "INXD" upon fulfilling all listing requirements of Cboe CA and as of January 24, 2022, the shares of TIDCI started trading on Cboe CA under such symbol. Also, on July 28, 2022, TIDCI received approval from The OTCQB Venture Market operated by OTC Markets Group Inc. to commence trading of its common shares under the symbol INXDF, also being eligible to be cleared and settled by the Depository Trust Company.

On November 10, 2025, Republic completed its acquisition of the Company, TIDCI and their related companies pursuant to the Arrangement. As of the date of the Closing, TIDCI is no longer a shareholder of the Company.

***List of Subsidiaries***

The following table sets forth the legal name, location and country of incorporation and percentage ownership of each of our current principal operating subsidiaries:

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| | | |
|:---|:---|:---|
| **Subsidiary Name** | **Country of Incorporation** | **Ownership<br> Percentage** |
| INX Digital, Inc. | United States (Delaware) | 100% |
| INX Services, Inc. | United States (Delaware) | 100% |
| INX Solutions Limited | Gibraltar | 100% |
| Midgard Technologies Ltd. | Israel | 100% |
| INX Securities, LLC | United States (Pennsylvania) | 100% |
| INX Digital Assets UK Limited | UK | 100% |
| INX Transfer Agent LLC | United States (Delaware) | 100% |
| INX Global Ltd. | Cyprus | 100% |

---

The contractual relationship between the Company and the following Company Subsidiaries: INX Digital, INX Services, INXS and Midgard, are administered by a series of intercompany agreements that include services agreements, license agreements, loan agreements and expense sharing agreements.

For more information on our subsidiaries, see "Item 4, Part A – "Information on the Company - History and Development of the Company."

**D. Property, Plant and Equipment.**

Other than computer equipment used in operations, the Company currently does not own or hold any tangible fixed assets, including real property, plant or equipment, whether by leasehold or otherwise.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

Not applicable.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

**A. Operating Results**.

*You should read the following discussion and analysis of our financial condition and results of operations together with the section titled "Selected Financial Data" and our financial statements and related notes included elsewhere in this report. This discussion and other parts of this report contain forward-looking statements that involve risk and uncertainties, such as statements of our plans, objectives, expectations, and intentions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors." Our discussion and analysis for the year ended December 31, 2025 can be found in Item 5. "Operating and Financial Review and Prospects" of our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, filed with the SEC on May 21, 2026.* 

**Nature of Operations**

The Company was incorporated on November 27, 2017, and through its subsidiaries, is engaged in the operation and ongoing development of an integrated and regulated solution for trading of blockchain assets on a digital asset and security token trading platform called INX.One. The Company also provides other services and products related to the trading of blockchain assets.

The Company, through one of the subsidiaries, also facilitates financial transactions between global banks and offers a full range of brokerage services to several leading banking institutions worldwide, mainly in foreign exchange and interest rate derivatives.

**INX Token**

As part of its blockchain ecosystem, the Company created the INX Token (the "INX Token"), and on August 20, 2020, the SEC acknowledged the effectiveness of the F-1 Registration Statement that was filed by INX with the SEC and declared effectiveness of the INX Token Offering ("the Offering"). In such Offering, INX offered up to 130 million INX Tokens at a price of $0.90 per INX Token.

The INX Token was offered to the public on August 24, 2020, and closed on April 22, 2021, when the Offering was completed.

The Company is the world's first company to debut and successfully complete an SEC-registered IPO of a blockchain security token (the INX Token). The public offering of the INX Token was registered under the United States Securities Act of 1933 and, in such registration, the INX Token is deemed to be an "equity security" under relevant SEC rules and regulations.

In July 2021, INX listed the INX Token for trading on the INXS Trading Platform, rebranded since then to INX.One.

INX has not allocated for issuance and does not intend to issue 35 million of the 200 million INX Tokens that have been created. The Company may reserve an additional 20% of INX Tokens received as payment of transaction fees, as long as the total amount of INX Tokens reserved does not exceed 35 million plus 50% of the number of INX Tokens sold by the Company to the public pursuant to the Offering and subsequent offerings of INX Tokens (excluding re-issuances of reacquired INX Tokens), up to a maximum of 100 million INX Tokens. The Company does not intend to issue these reserved INX Tokens for general fundraising purposes; these INX Tokens may be issued to fund acquisitions, address regulatory requirements or fund the operations of the Company if the Board of Directors of it determines that the Company has net cash balances sufficient to fund less than nine months of its operations. The Company intends to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit dilution to INX Token holders. As of December 31, 2025, the Company held approximately 57.9 million (including 35 million not allocated to issue) INX Tokens in reserve.

On February 15, 2026, the Company delisted the INX Token from the INX One trading platform. This decision was made following a strategic internal review of the Company's offerings, administrative requirements and other related factors. As a result of the delisting, the INX Token is no longer available for secondary market trading on the Company's platform. The Company continues to recognize the rights of INX Token holders pursuant to the terms of the INX Token Purchase Agreement.

Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the "Token Rights Amendment"), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of the Company's net cash flow from operating activities, excluding any cash proceeds from an initial sale by the Company of an INX Token (the "Adjusted Operating Cash Flow"). The distribution is based on the Company's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than the Company) holding INX Tokens as of March 31 of the following year on April 30th, commencing with the first distribution to be paid, if at all. As of December 31, 2025, the cumulative adjusted operating cash flow activity was negative, and therefore no distribution was paid on April 30, 2026.

We offer holders of INX Tokens an entitlement to, at a minimum, a 10% discount on the payment of transaction fees on the INX.One Trading Platform.

***Recent Developments***

 ****

On April 3, 2025, INX Digital Company, Inc., then our sole shareholder, and Republic have entered into the Arrangement Agreement, pursuant to which the Purchaser acquired all of the Shares, other than those Shares already owned by Republic. The Arrangement closed on November 10, 2025. For more information regarding the Arrangement Agreement, see "Item 4. Information on The Company - History and Development of the Company."

**Results of Operations for the year ended December 31, 2025** 

***Income***

The Company's main sources of income are trading and transaction fees generated from providing digital assets and security tokens trading platforms to our customers.

Additionally, the Company generates revenue from services including technology consultation, listing services, and blockchain development services.

***Trading and transaction fees***

 

Trading fee revenue consists of transaction revenue generated from trading and transaction fees from trades in security tokens and digital assets on our INX.One platform. Trading fees earned are based on the price and quantity of the digital asset that is bought or sold and are published on our website (https://www.inx.co/fee-schedules/). Transaction fees may be either set as a fixed fee per transaction or as a percentage of the amount traded. Transaction revenue is recognized at the time the transaction is processed and is directly correlated with trading and transaction volume.

In late 2022, INX launched listings of security tokens seeking to raise capital in primary offerings. This service is offered by our SEC broker-dealer subsidiary, INX Securities. Similar to the INX Token, security tokens listed by us are registered with the SEC and are deemed to be an "equity security" under relevant SEC rules and regulations. After the primary offerings are completed, tokens are expected to trade on INX.One in the secondary market. Listing fees are generated on each primary raise and are directly correlated to the total capital raised by the issuer.

The Company evaluates the digital assets business as a whole and uses total trading volume on the platform to measure its performance. During the year ended December 31, 2025, our subsidiaries INXD and INXS, earned total trading and transaction fees of $0.3, while the total notional amount traded on the platform was $120.2 million.

***Service revenue***

Service revenue represents fees from technology consultation and advisory, as well as listing services performed by the Company under written agreements. The Company recorded an income of $0.03 million.

Equity (income) loss on investment in associate,the Company recorded income of $1.2 million, representing the reversal of equity losses from previous years recognized from its investment in Nabatech.

On March 20, 2026, the Company sold its 33% interest in Nabatech for $0.5 million.

***Total operating expenses***

Operating expenses for the year ended December 31, 2025, were $24.4 million, and they consist of research and development, sales and marketing, general and administrative expenses, other expenses, disposal of fixed assets and intangible assets as well as the change in fair value of INX Token warrants.

Research and development expenses, of $4.0 million, primarily consist of costs of our technology development personnel, software and web services and other technology related expenses.

Sales and marketing expenses of $2.9 million primarily includes personnel cost, promotional campaigns and other marketing costs incurred mainly related to the digital assets business segment.

General and administrative expenses of $14.4 million, mainly include the cost of personnel, compliance and legal costs, amortization of intangible assets, audit services and insurance.<br>

Disposal of fixed assets and intangible assets of $2.6 million

Operating expenses include a gain on the change in the fair value of the INX Token warrant liability for warrants granted to employees and service providers of $0.5 million.

***Gain (loss) on INX Tokens issued***

Our balance sheet as of December 31, 2025 includes the INX Token liability of $24.3 million compared to $25.8 million as of December 31, 2024. Based on the terms of the INX Token, the INX Token is a hybrid financial instrument and under the applicable accounting standards it is presented as a financial liability on our consolidated balance sheet due to the right of the INX Token holders to use the INX Token to pay transaction fees on the INX.One trading platform. Accordingly, we elected, in accordance with IFRS 9, to designate the entire financial liability at fair value with changes in fair value of the liability recognized as gain or loss in the Company's consolidated statements of profit and loss.

During the year ended December 31, 2025, the Company recorded an unrealized gain on INX Tokens issued of $3.5 million, compared to gain of $28.4 million recorded during the year ended December 31, 2024.

 ****

***Net income (loss)***

Our loss from operations and net loss for the year ended December 31, 2025, was approximately $22.9 million and $51.2 million, respectively.

 ****

***Total comprehensive loss***

Total comprehensive loss includes net losses and other comprehensive income. The other comprehensive income mainly includes unrealized gain on investments held in our portfolio as part of our operating capital and the Reserve Fund. During the year ended December 31, 2025, we recognized $0.6 million unrealized loss. Total comprehensive loss for the year was $51.8 million.

***Adjusted Operating Cash Flow***

 ****

Following the entry into the Token Rights Amendment, the Holders of INX Tokens (other than the Company) are entitled to receive a pro rata distribution of 40% of the INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale of INX Tokens (the "Adjusted Operating Cash Flow"). The distribution is based on the INX's cumulative Adjusted Operating Cash Flow, net of cash flow which has already formed a basis for a prior distribution, calculated annually as of December 31. The distribution is to be paid to parties (other than the Company) holding INX Tokens as of March 31 of the following year on April 30, commencing with the first distribution to be paid, if any. As of December 31, 2025, the cumulative adjusted operating cash flow activity was negative, and therefore no distribution is expected on April 30, 2026.

Our Adjusted Operating Cash Flow for the year ended December 31, 2025, was negative $11.8 million. The cumulative Adjusted Operating Cash Flow as of December 31, 2025, was negative $87.0 million.

The following table provides the calculation of our cumulative Adjusted Operating Cash Flow as of December 31, 2025 (unaudited):

(in U.S. Dollars in thousands)

---

| | |
|:---|:---|
| **Cumulative Adjusted Operating Cash Flow as of December 31, 2024** | $(75174) |
| Less: Net cash used in operating activities in the year ended December 31, 2025 | (11834) |
| Less: Cumulative Adjusted Operating Cash Flow as of December 31, 2025 that formed the basis of distribution paid to INX Token holders on April 30, 2025(there was no distribution) |  |
| Plus: Proceeds from INX Tokens during the year ended December 31, 2025 |  |
| Less: Proceeds from initial sale of INX Tokens during the year ended December 31, 2025 | - |
| **Cumulative Adjusted Operating Cash Flow as of December 31, 2025** | $**(87008)** |

---

**Results of Operations for the year ended December 31, 2024**

***Income***

The Company's main sources of income are trading and transaction fees generated from providing digital assets and security tokens trading platforms to our customers.

Additionally, the Company generates revenue from services including technology consultation, listing services, and blockchain development services.

 **

***Trading and transaction fees***

 **

Trading fee revenue consists of transaction revenue generated from trading and transaction fees from trades in security tokens and digital assets on our INX.One platform. Trading fees earned are based on the price and quantity of the digital asset that is bought or sold and are published on our website (https://www.inx.co/fee-schedules/). Transaction fees may be either set as a fixed fee per transaction or as a percentage of the amount traded. Transaction revenue is recognized at the time the transaction is processed and is directly correlated with trading and transaction volume.

In late 2022, INX launched listings of security tokens seeking to raise capital in primary offerings. This service is offered by our SEC broker-dealer subsidiary, INX Securities. Similar to the INX Token, security tokens listed by us are registered with the SEC and are deemed to be an "equity security" under relevant SEC rules and regulations. After the primary offerings are completed, tokens are expected to trade on INX.One in the secondary market. Listing fees are generated on each primary raise and are directly correlated to the total capital raised by the issuer.

The Company evaluates the digital assets business as a whole and uses total trading volume on the platform to measure its performance. During the years ended December 31, 2024, our subsidiaries INXD and INXS, earned total trading and transaction fees of $0.4, while the total notional amount traded on the platform was $43 million.

***Service revenue***

 ****

Service revenue represents fees from technology consultation and advisory, as well as listing services performed by the Company under written agreements.

In 2023, the Company entered into a service agreement with Nabatech, an entity organized under a joint venture agreement between the Company and an entity based in Switzerland, whereby both parties agreed to join their expertise to develop central bank digital currency solutions utilizing blockchain technology. The Company provides blockchain technology support and advisory services to Nabatech and earns revenue based on time and resources dedicated to the development project.

The Company recorded an income of $0.9 million mostly set off against the cost of Nabatech $0.8 million, and the Company's share (33%) in Nabatech's loss of $0.7 million.

***Total operating expenses***

 ****

Operating expenses for the year ended December 31, 2024, were $12 million, and they consist of research and development, sales and marketing, general and administrative expenses, other expense, as well as the change in fair value of INX Token warrants.

Research and development expenses, of $3.1 million, primarily consist of costs of our technology development personnel, software and web services and other technology related expenses.

Sales and marketing expenses of $3.1 million primarily includes personnel cost, promotional campaigns and other marketing costs incurred mainly related to the digital assets business segment.

General and administrative expenses of $6.7 million, mainly include the cost of personnel, compliance and legal costs, amortization of intangible assets, audit services and insurance.

Operating expenses include a gain on the change in the fair value of the INX Token warrant liability for warrants granted to employees and service providers of $0.9 million.

***Gain (loss) on INX Tokens issued***

 ****

Our balance sheet as of December 31, 2024 includes the INX Token liability of $25.8 million compared to $54.1 million as of December 31, 2023. Based on the terms of the INX Token, the INX Token is a hybrid financial instrument and under the applicable accounting standards it is presented as a financial liability on our consolidated balance sheet due to the right of the INX Token holders to use the INX Token to pay transaction fees on the INX.One trading platform. Accordingly, we elected, in accordance with IFRS 9, to designate the entire financial liability at fair value with changes in fair value of the liability recognized as gain or loss in the Company's consolidated statements of profit and loss.

During the year ended December 31, 2024, the Company recorded an unrealized gain on INX Tokens issued of $28.4 million, compared to gain of $3.8 million recorded during the year ended December 31, 2023.

 

***Net income (loss)***

 ****

Our net loss from operations and net income for the year ended December 31, 2024, was approximately $12.2 million and $18.4 million, respectively.

***Net Income from discontinued operation***

 ****

Our net income from discontinued operation for the year ended December 31, 2024, was approximately $1.2 million.

***Total comprehensive income (loss)***

 ****

Total comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). The other comprehensive income (loss) mainly includes unrealized gain (loss) on securities and investments held in our portfolio as part of our operating capital and the Reserve Fund. During the year ended December 31, 2024, we recognized $0.7 million unrealized gain on our investments. Total comprehensive Income for the year was $20.4 million.

 **

***Adjusted Operating Cash Flow***

 **

Following an amendment to the INX Token rights, which was approved by the Board of Directors of INX on May 17, 2019 (the "Token Rights Amendment"), the Holders of INX Tokens (other than the Company) are entitled to receive a pro rata distribution of 40% of the INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale of INX Tokens (the "Adjusted Operating Cash Flow"). The distribution is based on the INX's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated annually as of December 31. The distribution is to be paid to parties (other than the Company) holding INX Tokens as of March 31 of the following year on April 30, commencing with the first distribution to be paid, if any. As of December 31, 2024, the cumulative adjusted operating cash flow activity was negative, and therefore no distribution is expected on April 30, 2025.

Our Adjusted Operating Cash Flow for the year ended December 31, 2024, was negative $10.7 million. The cumulative Adjusted Operating Cash Flow as of December 31, 2024, was negative $75.2 million.

The following table provides the calculation of our cumulative Adjusted Operating Cash Flow as of December 31, 2024 (unaudited):

(in U.S. Dollars in thousands)

---

| | |
|:---|:---|
| Cumulative Adjusted Operating Cash Flow as of December 31, 2023 | $(64460) |
| Less: Net cash used in operating activities in the year ended December 31, 2024 | (10714) |
| &nbsp;&nbsp;&nbsp;Less: Cumulative Adjusted Operating Cash Flow as of December 31, 2023 that formed the basis of distribution paid to INX Token holders on April 30, 2024 (there was no distribution) |  |
| Plus: Proceeds from INX Tokens during the year ended December 31, 2024 |  |
| Less: Proceeds from initial sale of INX Tokens during the year ended December 31, 2024 | - |
| **Cumulative Adjusted Operating Cash Flow as of December 31, 2024** | $**(75174)** |

---

**Comparison of operating results for the year ended December 31, 2025 and 2024** 

The following table presents an overview of our results of operations for years ended December 31, 2025 and 2024:

(U.S. Dollars in thousands, except share and per share data)

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** |
| **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;Transaction and brokerage fees | $290 | $422 |
| &nbsp;&nbsp;&nbsp;Service revenue | 28 | 871 |
| &nbsp;&nbsp;&nbsp;Cost of services | - | (836) |
| &nbsp;&nbsp;&nbsp;Gross profit on service revenue | 28 | 35 |
| &nbsp;&nbsp;&nbsp;Equity (Income) Loss on investment in associate | 1207 | (651) |
| &nbsp;&nbsp;&nbsp;Sales of digital assets |  |  |
| &nbsp;&nbsp;&nbsp;Cost of digital assets |  |  |
| &nbsp;&nbsp;&nbsp;Change in revaluation of digital assets | - | - |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on digital assets | - | - |
| **Total income (loss)** | **1525** | **(194)** |
| **Operating income (expenses):** |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | (3982) | (3082) |
| &nbsp;&nbsp;&nbsp;Sales and marketing | (2838) | (3112) |
| &nbsp;&nbsp;&nbsp;General and administrative | (14425) | (6712) |
| &nbsp;&nbsp;&nbsp;Other expense | (120) |  |
| Loss on disposal and impairment of assets, net | (2500) |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of INX Token warrant liability | (528) | 936 |
| **Total operating expenses** | (24393) | (11970) |
| **Loss from operations** | **(22868)** | **(12164)** |
| Unrealized gain (loss) on INX Tokens issued | 3495 | 28394 |
| Finance income | 2747 | 2363 |
| Financial expenses | (222) | (195) |
| Financial Exp. From Cash Funds Distribution | (34325) | - |
| **Income (loss) before tax** | (51173) | 18398) |
| Tax Income (expense) | (16) | (1) |
| **Net income (loss) from continuing operations** | $**(51189)** | $**18397** |
| Income from discontinued operations |  | 105 |
| Gain (loss) from sale of discontinued operations | (34) | 1145 |
| Net income from discontinued operations | (34) | 1250 |
| **Net Income (loss)** | **(51223)** | **19647** |
| &nbsp;&nbsp;&nbsp;Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: |  |  |
| &nbsp;&nbsp;&nbsp;Realized loss on securities at fair value through other comprehensive income (loss) reclassification adjustment into net income (loss) | (710) | (265) |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on securities at fair value through other comprehensive income | 141 | 600 |
| &nbsp;&nbsp;&nbsp;Realized gain on investments – Sale of Subsidiary |  | 356 |
| &nbsp;&nbsp;&nbsp;Adjustments arising from translating financial statements from functional currency to presentation currency | (22) | 44 |
| **Total other comprehensive income (loss)** | (591) | 735 |
| **Total comprehensive income (loss)** | $**(51814)** | $**20382** |
| Earnings (loss) per share, basic and diluted |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operation | $(1.08) | $0.39 |
| &nbsp;&nbsp;&nbsp;From discontinued operation | - | 0.02 |
|  | (1.08) | 0.41 |
| Weighted average number of shares outstanding, basic and diluted | 47635875 | 47635875 |

---

***Income***

***Trading and transaction fees***

 ****

Trading fee revenue consists of transaction revenue generated from trading and transaction fees from trades in security tokens and digital assets on our INX.One platform. Trading fees earned are based on the price and quantity of the digital asset that is bought or sold and are published on our website (https://www.inx.co/fee-schedules/). Transaction fees may be either set as a fixed fee per transaction or as a percentage of the amount traded. Transaction revenue is recognized at the time the transaction is processed and is directly correlated with trading and transaction volume.

During the years ended December 31, 2025, and 2024, our subsidiaries INXD and INXS, earned total trading and transaction fees of $0.3 million and $0.4 million, respectively., while the total notional amount traded on the platform was $120.2 million and $43.0 million, respectively. The total trading and transaction fee revenue remained stable in 2025 compared to 2024, maintaining consistent revenue generation despite slight fluctuations in trading volume.

***Service revenue***

Service revenue represents fees from technology consultation and advisory, as well as listing services performed by the Company under written agreements.

In 2023, the Company entered into a service agreement with Nabatech, an entity organized under a joint venture agreement between the Company and an entity based in Switzerland, whereby both parties agreed to join their expertise to develop central bank digital currency solutions utilizing blockchain technology. For the years ended December 31, 2025 and 2024, the Company recorded service income of $0.0 million and $0.9 million respectively, in 2024 mostly offset against Nabatech's costs, while in 2025 the Company recorded $1.2 million in income related to Nabatech equity losses from previous years. In 2024 the company recorded its 33% share of Nabatech's equity losses $0.7 million In March 2026 the Company sold its interest in Nabatech and no longer has any rights to future revenue associated with the business.

***Operating Expenses***

***Research and development expenses***

We incurred $4.0 million in research and development expenses for the year ended December 31, 2025, compared to $3.1 million for the year ended December 31, 2024. Research and Development expenses increased by $0.9 million from 2025 to 2024. The increase was primarily driven by an increase of $1.0 million in research and development personnel costs, $0.1 million in Token-based compensation expense offset by decrease in Share-based compensation costs of $0.1 million and in other research and development expenses of $0.1 million.

.

***Sales and marketing expenses***

 

We incurred $2.9 million in sales and marketing expenses for the year ended December 31, 2025, compared to $3.1 million for the year ended December 31, 2024. Sales and marketing expenses decreased by $0.2 million from 2025 to 2024. This decrease was mainly driven by customer support and personnel cost of $0.4 million, token-based compensation of $0.1 offset by other marketing costs of $0.3 million.

***General and administrative expenses***

 ****

We incurred $14.4 million in general and administrative expenses during the year ended December 31, 2025, compared to $6.7 million for the year ended December 31, 2024. The increase of $7.7 million was mainly driven by an increase in debts write off of $5.9 million (the parent company $4.3 and Nabatech $1.6 million), personnel cost of $1.4 million,financial and audit expenses of $0.6 million and insurance costs $0.7. These increases were offset by a decrease in share-based compensation of $0.6 million and other general and administrative expenses of $0.3 million,

Our balance sheet as of December 31, 2025 includes the INX Token liability of $24.3 million compared to $25.8 million as of December 31, 2024. Based on the terms of the INX Token, the INX Token is a hybrid financial instrument and under the applicable accounting standards it is presented as a financial liability on our consolidated balance sheet due to the right of the INX Token holders to use the INX Token to pay transaction fees on the INX.One Trading Platform.

On December 31, 2025 and 2024, we measured the INX Token at fair value based on the closing market price of the INX Token (see further details in Note 12 in the audited consolidated financial statements).

In addition, the company may grant restricted INX Token awards or INX Token warrants to directors, advisors, employees or service providers as compensation. As of December 31, 2025 and December 31, 2024 the total amount of outstanding INX Token warrants the Company has granted to directors, employees and service providers is $0.0 and 8,116,958, respectively. The INX Token warrant liability of $0.0 and $0.7 million at December 31, 2025 and 2024, respectively, is presented at fair value based on Black-Scholes pricing model. (see further details in Note 14 in the financial statements).

Changes in fair value of the liabilities noted above are recorded through profit and loss in our consolidated statement of comprehensive income (loss). During the year ended December 31, 2025, the fair value of INX Tokens and INX Token warrants issued decreased, and is recorded as an unrealized gain in the statement of comprehensive income of $3.5 million and $28.4 million, respectively.

***INX Token Valuation***

The fair value of each INX Token as of December 31, 2025 and 2024, was $0.17 and $0.19, respectively.

 

***Net income (loss)***

Net loss for the year ended December 31, 2025, was $51.2 million compared to net income of $18.4 million for the year ended December 31, 2024, a decrease of $69.6 million. A substantial portion of this decrease is the cash fund distribution of $34.3, attributable to a decrease in the unrealized on INX Tokens issued, difference of $24.9 million a $3.5 compared $28.4 million, respectively, which is recorded through profit and loss, an increase in operating expenses of $12.4 million mostly of debts write off of $5.9, and amortization on intangible liability of $2.5, these decreases were partially offset by an increase in equity loss on investment in association $1.2 million.

***Total comprehensive income (loss)***

Total comprehensive loss for the year ended December 31, 2025 was $51.8 million compared to total comprehensive income of $20.4 million for the year ended December 31, 2024, a decrease of $72.2 million. A substantial portion of this decrease is the cash fund distribution of $34.3, attributable to a decrease in the unrealized on INX Tokens issued, difference of $24.9 million a $3.5 compared $28.4 million, respectively, which is recorded through profit and loss, an increase in operating expenses of $12.4 million, these decreases were partially offset by an increase in equity loss on investment in association $1.2 million.

***Adjusted Operating Cash Flow***

Adjusted Operating Cash Flow for the year ended December 31, 2025, was negative $11.8 million, compared to negative $10.7 million during the year ended December 31, 2024.

To significant non-cash adjustments, primarily the unrealized gain on INX Tokens issued of $3.5 million in 2025 compared to $28.4 million in 2024. Additionally, there were lower non-cash expenses including reduced share-based payments ($0.3 million vs $1.2 million) and an increase in accounts payable and accrued expenses (positive $3.2 million vs negative $0.5 million). We also experienced negative impacts from changes in working capital, particularly in prepaid expenses and other receivable (positive $0.2 million vs negative $1.3 million) and Impairment of goodwill and intangible assets ($2.5 million vs. $0.2 million).

**Key Business Metrics**

*Security Token and Digital Asset Business*

For our security token and digital assets business, we use the following key business metrics to evaluate our business, measure performance and make strategic decisions:

---

| | | |
|:---|:---|:---|
|  | **Years ended December 31 (unaudited)** | **Years ended December 31 (unaudited)** |
|  | **2025** | **2024** |
| Number of Verified Accounts | 2608 | 2968 |
| Trading Volume | $120238000 | $43039000 |
| Customer Assets on Platform | $10939000 | $6555000 |

---

We define "Verified Accounts" as all retail and institutional customers that have registered and successfully onboarded onto our platform and have established an account during the applicable period of measurement. Verified Users are an indication of our growth. These customers have demonstrated an interest in our platform or direct intent to invest and transact in security tokens and digital assets. Number of Verified Accounts represents our customer acquisition pace. Verified Accounts may overstate the number of unique customers who have established an account on our platform as one customer may register for, and use, multiple accounts.

We define "Trading Volume" as the total U.S. dollar equivalent value of spot matched trades transacted by buyers and sellers on our platform during the applicable period of measurement. Trading Volume represents the product of the quantity of asset transacted and the trade price at the time the transaction was executed. As trading activity directly impacts transaction revenue, we believe this measure is a reflection of liquidity on our order books, trading health, and the underlying growth of the digital asset economy. Generally, Trading Volume on our platform is primarily influenced by the price of security tokens and digital assets, price volatility and macroeconomic conditions.

We define "Customer Assets on Platform" as the aggregate of customer owned digital assets and fiat balances, set forth on our consolidated balance sheet under Customer Funds.

The value of Assets on Platform is driven by three factors: the price, quantity, and type of digital asset or security token held by customers on our platform. Changes in the price and quantity or type of digital asset or security token held on our platform, can result in the increase or decrease in assets on the platform in a particular period.

**B. Liquidity and Capital Resources.**

***Capital resources***

Our financial statements as of December 31, 2025 have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the ordinary course of business.

Based on the Company's cash position, alongside projected continued negative cash flows, the Company's resources are not sufficient to fund its operation for the next 12 months. Accordingly, our ability to continue as a going concern will require obtaining additional financing to fund its operations, which may include private and/or public offerings of debt or equity securities and/or additional payments that may be received. There can be no assurance that such funding or payments will be available on acceptable terms, or at all.

The Company currently lacks sufficient recurring sources of revenue and its ability to continue as a going concern is dependent on its ability to raise revenue and/or capital to fund its ongoing operations and working capital requirements or its ability to profitably execute its business plan. Additionally, the volatility in capital markets and general economic conditions in the U.S. and elsewhere can pose significant challenges to raising the required funds and/or expanding operating revenue. The doubts regarding the Company's ability to continue as a going concern may adversely affect its ability to obtain new financing on reasonable terms or at all. If funds are not available, the Company may be required to delay, reduce the scope of, or eliminate its business plans. These factors raise substantial doubt about the Company's ability to continue as a going concern.

Our future operations are dependent upon our ability to raise revenue and/or capital to fund our ongoing operations and working capital requirements or our ability to profitably execute our business plan, and there can be no assurances that we will be successful in doing so. The financial statements do not give effect to any adjustments relating to the carrying values and classification of assets and liabilities that would be necessary should we be unable to continue as a going concern.

Management and the Board of Directors are actively involved in the review, planning and approval of our significant expenditures and financial commitments.

As of December 31, 2025 our operating capital of $5,069 million is held in banks. $13.42 million, as of December 2024, was held in cash and cash equivalents, U.S. Treasury securities, marketable corporate bonds and other investments as follows:

(U.S. Dollars in thousands)

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Cash and cash equivalents | $5069 | $10008 |
| Short-term investments |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities |  |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | - | 2922 |
| Total short-term investments | $- | $2922 |
| Long-term investments |  |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments |  |  |
| &nbsp;&nbsp;&nbsp;Investments in private equity | 490 | 490 |
| Total long-term investments | $490 | $490 |
| Total capital | $5559 | $13420 |

---

***Reserve Fund (otherwise referred to as Cash Fund)***

As of December 31, 2022, INX had segregated $36 million as the Reserve Fund. In December 2023, the Company learned of a cyber-attack that occurred on the computer system of a third-party service provider of one of the Company's subsidiaries. As a result, the malicious party managed to cause a loss of funds of the Company's subsidiary in the amount of $1.6 million. Upon the discovery of the breach, the Company took an immediate action to eliminate the security vulnerability, subsequently put in place additional security measures designed to prevent such cyber-attack incidents in the future, and continues to work with relevant law enforcements seeking to recover lost funds. The Company utilized funds set aside in the Reserve Fund to cover the loss, as a result, as of December 31, 2023, the balance of the Reserve Fund was reduced to $34.4 million. In April 2024, a human error in the Company's trading platform execution led to a loss of $80,000. The Company promptly updated work procedures to prevent similar errors. The Company utilized funds set aside in the Reserve Fund to cover the loss. In connection with the Arrangement, as of the date of this annual report, $31,205 of INX's Cash Fund was distributed to the INX Token holders, and $3,120 remained in INX's Cash Fund for pending distribution procedures to eligible holders. Following completion of such pending distributions, the cash reserve fund as of the date of the Arrangement shall have been fully distributed.

The Reserve Fund consists of cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows:

(U.S. Dollars in thousands)

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31, <br> 2024** |
| Cash and cash equivalents | 3120 | 14209 |
| Short-term investments |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities |  | 2954 |
| &nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | - | 8848 |
| Total short-term investments | 3120 | 11802 |
| Long-term investments |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities |  |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | - | 8314 |
| Total long-term investments | - | 8314 |
| Total Reserve Fund | 3120 | 34325 |

---

***Digital assets***

As of December 31, 2025 and 2024, we held $1 million and $0.1 million, respectively, of digital assets for operating purposes.

---

| | | |
|:---|:---|:---|
| **Coin Symbol** | **December 31,<br> 2025** | **December 31,<br> 2024** |
| BTC | $404 | $356 |
| USDC | 382 | 251 |
| ETH | 168 | 146 |
| AVAXC | 27 | 73 |
| USDT | 36 | 26 |
| LTC | 17 | 16 |
| ZEC | 3 | 3 |
| ZUSD | 5 |  |
| Other | 105 | 114 |
|  | 1147 | 985 |

---

***Material cash commitments and contractual obligations***

As of December 31, 2025 and 2024, we have the following short and long-term cash commitments and contractual obligations:

(U.S. Dollars in thousands)

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 4715 | 1570 |
| &nbsp;&nbsp;&nbsp;Lease liability |  | 228 |
| &nbsp;&nbsp;&nbsp;Liability from cash fund token distribution | 3120 | - |
| Total current liabilities | 7835 | 1798 |
| Total | 7835 | 1798 |

---

We are required to hold corporate liquid assets or net worth at our subsidiaries to meet capital requirements established by our regulators based on statutory net capital requirements. We are in compliance with these capital requirements.

***Operating capital***

To date, although we have generated brokerage fee revenue through ILSB as well as trading and transaction fees earned on our security token and digital assets business offered by INXS and INXD, we have mainly financed our operations through equity investments made by our shareholders, the INX Token Offering in the US, and the Valdy Transaction in Canada.

Following the acquisition of the Company by OpenDeal Inc. (dba "Republic"), our financing considerations and capital strategy have been integrated into the broader Republic ecosystem. As a subsidiary of Republic, our continuing operations and strategic initiatives may be supported by Republic's financial resources, capital-raising capabilities, and institutional backing. We believe this acquisition provides an additional layer of financial stability and access to capital that supports our long-term growth objectives.

Our future expenditures and capital requirements will depend on numerous factors, including our growth, our ability to acquire and retain new clients utilizing our services, and our success in attracting issuers to issue security tokens and list them on INX.One for trading. These requirements are also subject to the continuing market acceptance of our products and services, the evolution of digital assets and blockchain technology, and overall economic conditions.

Based on the Company's cash position, alongside projected continued negative cash flows, the Company's resources are not sufficient to fund its operation for the next 12 months. Accordingly, our ability to continue as a going concern will require obtaining additional financing to fund its operations, which may include private and/or public offerings of debt or equity securities and/or additional payments that may be received. There can be no assurance that such funding or payments will be available on acceptable terms, or at all.

**C. Research and development, patents and licenses, etc.**

For information concerning our research and development policies and a description of the amount spent during each of the last four fiscal years on company-sponsored research and development activities, see "Item 5. Operating and Financial Review and Prospects—Results of Operations."

**D. Trend Information**

See "Item 4, Item 5.A" and "Item 5.B."

**E. Critical Accounting Estimates**

**Critical Accounting Policies and Estimates**

The consolidated financial statements have been prepared in accordance with International Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Reporting Interpretations Committee ("IFRIC").

In accordance with IFRS, in preparing our consolidated financial statements, we must make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of net revenues and expenses during the reported period. We develop and periodically change these estimates and assumptions based on historical experience and on various other factors that we believe are reasonable under the applicable circumstances. Actual results may differ from these estimates.

Many aspects of the digital currency and blockchain industry have not yet been addressed by current IFRS guidance. We are required to make significant assumptions and judgments as to applicable accounting policies and the application thereof, which is disclosed in the notes to the consolidated financial statements. If specific guidance is enacted by the IASB in the future, the impact may result in changes to the Company's profit or loss and financial position as currently presented.

The critical accounting policies requiring estimates, assumptions and judgments that we believe have the most significant impact on our financial statements are described below.

*Financial liabilities at fair value through profit or loss - INX Token liability:*

 

Based on the terms of the INX Token, the INX Token is a hybrid financial instrument. The host instrument is a financial liability due to the right of the INX Token holder to use the INX Token to pay transaction fees on the INX.One trading platform. The INX Token is considered a puttable instrument which is a financial liability in accordance with IAS 32, Financial Instruments: Presentation.

Our obligation to make a pro rata distribution annually to the INX Token holders from INX's Adjusted Operating Cash Flow is an embedded derivative. The Company views INX's operating cash flows as a financial variable, and therefore, the embedded derivative requires bifurcation pursuant to IFRS 9. The Company elected, in accordance with IFRS 9, to designate the entire financial liability (including the embedded derivative) at fair value through profit and loss. Accordingly, the INX Token liability and the INX Token warrant liability are re-measured to fair value at the end of each reporting period.

The change in the fair value of the INX Token liability that is attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, to the extent there are any, would be presented in other comprehensive income. The remaining amount of the change in the fair value of the INX Token liability would be presented in profit or loss. The change in fair value of the INX Token liability is included in profit or loss.

Should the INX Token be used to pay for services provided by INX, revenue would be recognized and the respective portion of the INX Token liability would be derecognized. Additionally, the fair value of INX Tokens issued in consideration for services provided to the Company would be recognized as compensation expense when services are provided.

*Determining the fair value of an unquoted financial liability*

The fair value of unquoted warrant liability in Level 3 of the fair value hierarchy is determined using the Black and Scholes option pricing model. The inputs to the model include share price, exercise price and assumptions regarding expected volatility, expected life of and expected dividend yield.

 

*Impairment of goodwill*

The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. This requires management to make an estimate of the projected future cash flows from the continuing use of the cash-generating unit (or a group of cash-generating units) to which the goodwill is allocated and also to choose a suitable discount rate for those cash flows.

*Revenue recognition*

The Company determines revenue recognition from contracts with customers through the following steps:

● Identification of the contract with the customer;

● Identification of performance obligations in the contract;

● Determination of transaction price;

● Allocation of the transaction price to the performance obligations in the contract; and

● Recognition of the revenue when, or as, the Company satisfies a performance obligation.

In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of the consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal.

Transaction fees revenue includes revenue from transaction and trading fees charged to customers utilizing the Company's trading platform and are presented on a net basis. The Company's service is comprised of a single performance obligation to provide a matching service when customers buy, sell, or convert digital assets. The Company does not control the digital asset being provided before it is transferred to the buyer, does not have inventory risk related to the digital asset, and is not responsible for the settlement of the digital asset. The Company also does not set the price for the digital asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase digital assets from another customer.

Transaction fees charged on the INX.One trading platform are recognized as revenue when the Company's obligation is satisfied, promised services are transferred to the customer and the customer obtains control. Brokerage fees revenue is recorded according to the date the service was provided, or the operation was carried out. Relevant to brokerage and transaction fees, contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, these contracts are defined at the transaction level and do not extend beyond the service already provided. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes).

Service revenue represents fees for technology consultation and advisory, as well as listing services performed by the Company under written agreements and is recognized upon the delivery of promised goods or services to the customer and when Company's performance obligation to the customer is satisfied. The revenue is recognized in an amount that reflects the fair value of the consideration to which the Company expects to be entitled to, upon completion of the Company's performance obligation for those services, as stated in the contract.

The Company also recognizes revenue from buying and selling digital assets it owns. Such revenue is recognized in the gross amount of consideration received on sales less the cost of digital assets sold.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES** 

**A. Directors and Senior Management.**

The following table sets forth certain information relating to our executive officers and board members, including their ages, as of April 30, 2026 . Unless otherwise stated, the address for our senior management is at the Company's registered office currently located at 57/63 Line Wall Road, Gibraltar, GX11 1AA.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Vlad Uchenik | 55 | Chief Executive Officer & Chief Compliance Officer |
| Iris Even-tov | 56 | Chief Financial Officer |
| Paz Diamant | 57 | Chief Technology Officer |
| Edward Cohen | 38 | Chief Legal Officer |
| Chuck Pettid(2) | 47 | Director |
| Noam Elharar(1)(2)(3) | 43 | Independent Director |
| Allen Yee(1)(2)(3) | 48 | Independent Director |

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\* Under Gibraltar law, directors are appointed indefinitely unless their appointment specifies a defined period. Our directors were not appointed with a specified defined period of term.

(1) Member of the Compensation Committee

(2) Member of the Audit Committee

(3) Member of the Nominating and Governance Committee

*Mr. Vlad Uchenik* is Chief Executive Officer and Chief Compliance Officer for the Company and the Chief Executive Officer of INXS. Mr. Uchenik has over 29 years of experience in the financial services industry. Vlad is currently CEO and CCO for INXS, and together with its predecessor entities - Openfinance Securities, LLC, Sageworks Capital, LLC and Raiseworks - has altogether been in the role since 2013. Mr. Uchenik was responsible for getting regulatory approval for the first ATS that traded digital securities in the secondary market, with the first trade occurring in November 2018. Mr. Uchenik also previously worked as CCO for Eagliew Securities, LLC, as CCO for iTB Securities LLC, a fixed income ATS trading platform BD, and as COO and CCO for InterMerchant Securities, LLC in New York. Prior to that, Mr. Uchenik was the Chief Operating, Compliance and Financial Officer of Jesup & Lamont Securities Corp supervising over 150 registered reps. Mr. Uchenik was also the COO/CCO of Safdie Investment Services Corp., a boutique BD and Investment Advisor, and served as the VP of Regulatory Risk and Control for US Trust's Operations Division where his responsibilities included overseeing the risk and compliance measures in operations for the BD, 4 SEC IAs, a National Bank, '40 Act mutual funds and a Trust company. Mr. Uchenik also held a CCO role with BBVA Securities Corp in New York and was CCO/COO for Security Financial Network in Phoenixville, PA. Mr. Uchenik has the FINRA Series 4, 7, 24, 28, 53, 63 and 65 licenses. Mr. Uchenik has an undergraduate degree in Business Management from Rutgers University in New Brunswick, NJ and a master's degree in Finance from Temple University in Philadelphia, PA.

*Ms. Iris Even-tov* is the Chief Financial Officer of the Company. She is a Certified Public Accountant (CPA) and an experienced financial manager specializing in public company financial reporting and governance. Ms. Even-Tov has been a partner in three Initial Public Offerings (IPOs) across stock exchanges in Israel, Canada, and Europe. She possesses extensive expertise in controlling consolidated reports for international companies in accordance with IFRS and US GAAP while ensuring SOX compliance. Her background includes significant experience in M&A acquisitions, private fundraising, and high-level cash flow management. Ms. Even-Tov has served as a board member for public companies for over 22 years. Her professional affiliations include board memberships at the Jerusalem Academy of Music and Dance, the College of Law and Business, and Edmond de Rothschild Mutual Funds Management (Israel) Ltd. She holds a B.A. in Accounting and is a licensed CPA.

*Mr. Paz Diamant* has served as our Chief Technology Officer since July 2021. Mr. Diamant has more than 28 years of experience in the banking and financial technology industry. From November 2013 to January 2021, Mr. Diamant held several roles at eToro, a worldwide leading social investment network, where he was most recently. Managing Director of R&D and Product. In that role he directed the design, development, and deployment of the company's cloud-based exchange system, and was responsible for the development of eToro's complicated hedging algorithms. While at eToro, Mr. Diamant managed R&D teams for several years while implementing cutting-edge, cloud-based technologies successfully. From October 2002 to January 2011, Mr. Diamant was the founder and Chief Executive Officer of ForexManage Ltd., a leading provider of advanced, real-time, risk management and foreign exchange online trading technologies for the banking industry. Through his role at ForexManage, Mr. Diamant had a significant role in the adoption of advanced risk management models in major European banks and brokerage houses. Mr. Diamant holds a BS in Physics from the Technion - Israel Institute of Technology, where he graduated cum laude, and an MBA, Finance from Bar-Ilan University.

*Mr. Edward Cohen* has served as Chief Legal Officer of the Company and Deputy General Counsel of Republic since January 2026. From 2021 to 2025, Mr. Cohen served as Assistant General Counsel at Tilray Brands, Inc. (Nasdaq: TLRY), where he managed a broad spectrum of transactional, capital markets, and regulatory matters while spearheading the company's corporate cryptocurrency strategy. In 2021, he served as Corporate Counsel at Ascend Wellness Holdings, Inc. (CSE: AAWH.U), where he drove the company's initial public offering and established issuer reporting compliance. Previously, Mr. Cohen was an Associate in the corporate departments of Akin Gump Strauss Hauer & Feld LLP, Pryor Cashman LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, focusing on mergers and acquisitions, securities, and debt finance. Mr. Cohen holds a J.D., magna cum laude, from Brooklyn Law School and a B.S. in Economics and Finance, magna cum laude, from the Leonard N. Stern School of Business at New York University

*Mr. Chuck Pettid* is a Director of the Company. Mr. Pettid is the Executive Vice President, Head of Global Partnerships and founding team member of Republic, a leader in real world assets, tokenization, and blockchain infrastructure. He is also GP of micro VC fund RainmakeMe, sits on the board of Everyrealm, sat on the boards of Ruby Love, Riders Share, CrowdSmart and is an active mentor at a handful of accelerator programs. Chuck has an MBA from Fordham Gabelli School of Business and a BS from the University of Nebraska-Lincoln.

*Mr. Noam Elharar* is an Independent Director of the Company. Mr. Elharar is Vice President of Finance at Tzumi Electronics, where he oversees financial strategy, governance, and regulatory matters across the company's global operations. Earlier in his career he held leadership roles at Fung Group across Asia and North America. Mr. Elharar holds an MBA from University of Chicago Booth School of Business and a BBA from Hong Kong University of Science and Technology.

*Mr. Allen Yee* is an Independent Director of the Company. Mr. Yee is an experienced legal, compliance, business, and external affairs counselor with over 20 years of experience, primarily in regulated industries. He currently serves as Chief Legal Officer for Gorilla Mind, overseeing critical functions like legal, regulatory, and compliance. His extensive corporate career includes roles such as General Counsel for Tilray Brands' subsidiaries (American Beverage Crafts and Manitoba Harvest) and over ten years at The Coca-Cola Company, where he managed major litigation and special dealings with US regulators. Mr. Yee earned both his B.S. (1999) and J.D. (2003) (magna cum laude and with High Honors) from the University of Georgia. Mr. Yee also maintains an active role in public service and community leadership in Georgia.

***Arrangements Concerning Election of Directors; Family Relationships***

 ****

There are no family relationships between any of the directors or members of senior management named above.

We are not aware of any arrangements or understandings with major shareholders, customers, suppliers or others, pursuant to which any person referred to above was selected as a director or member of senior management.

**B. Compensation.**

**Compensation of Senior Management and Directors**

Each of the Company's independent directors is entitled to receive an option to purchase 3,500 INX Tokens each month at an exercise price equal to the fair market value of the INX Token at the date of the grant.

Compensation provided to key management personnel and directors for the years ended December 31, 2025, and 2024 and 2023 was as follows:

(U.S. Dollars in thousands)

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| Cost of service: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $- | $226 | $226 |
|  | $- | $226 | $226 |
| Research and development: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $592 | $263 | $234 |
| &nbsp;&nbsp;&nbsp;Share-based compensation (\*) | 11 | 24 | 190 |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation |  | 324 | 41 |
|  | $603 | $321 | $465 |
| Sales and marketing: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $203 | $167 |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation (\*) | 76 | 37 |  |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | 23 | 14 |  |
|  | $302 | $218 | $- |
| General and administrative: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $2912 | $2760 | $2934 |
| &nbsp;&nbsp;&nbsp;Share-based compensation (\*) | 204 | 884 | 1702 |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | 139 | 296 | 396 |
|  | $3255 | $3940 | $5032 |
| Total compensation and benefits | $4160 | $4705 | $5723 |
| Reserve funds distribution | 3173 | - | - |
| Change in fair value of INX Token and warrant liabilities | $1135 | $(2943) | $(830) |

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| | |
|:---|:---|
| (\*) | See Note 16 Share-Based Payment to the consolidated audited financial statements as of December 31, 2025, for the description of options granted by TIDCIto employees of the Company that are exercisable into Common shares of TIDCI. |
| (\*\*) | On November 10**,** 2025, in connection with the closing of the Arrangement, all members of the board of directors Shy Datika, David Weild, Thomas Lewis, Nicholas Thadaney, Hilary Kramer, Alan Silbert and Demetra Kalogerou resigned. From November 10, 2025 through March 1, 2026, Chuck Petid, Peter Green and Sami Ahmed served on our board of directors. On March 1, 2026, Peter Green and Sami Ahmed resigned, and Allen (Wai Sing) Yee and Noam Elharar were appointed as directors. As of March 1, 2026, the reconstituted board of directors includes Allen (Wai Sing) Yee, Noam Elharar and Lee Charles (Chuck) Pettid. |

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For additional information, see "Item 7.B Related Party Transactions *–* Relationships and Transactions with Directors and Executive Officers."

 

***Equity Compensation Plan Information***

 

On February 22, 2021, the Company's board of directors adopted the INX Limited Share Ownership and Award Plan (2021) (the "INX Plan") and, on March 18, 2021, the Company's shareholders approved the Plan. The Plan provided for grants of options to purchase Ordinary Shares and restricted shares to such employees, directors and consultants engaged by the Company or any of its affiliates. In connection with the Valdy Transaction, the INX Plan was terminated and replaced by the Parent Company Omnibus Equity Incentive Compensation Plan (the "Plan"). Upon closing of the Valdy Transaction, awards granted pursuant to the INX Plan were exchanged for equivalent awards under the Plan.

The Plan provides for grants of options to purchase the Parent Company's common shares and restricted share units to employees, directors and service providers of the Company. The Plan includes U.S. and Israeli appendices that further specify the terms and conditions of grants of options and restricted share units to such grantees.

Effective January 10, 2022, the completion date of the Valdy Transaction, all of our outstanding share capital is held by TIDCI. Commencing as of this completion date, share award compensation are granted to employees, directors and consultants engaged by the Company or any of its affiliates pursuant to the TIDCI Equity Incentive Plan. The Plan is used by the Company solely for grant of Token awards as described below.

**<u>Grant of Token Awards under the Plan</u>**:

<u>Token Plan Awards</u>. On March 31, 2022, our Board of Directors and the Board of Directors of TIDCI (acting as our general meeting) approved certain changes to our Plan (including to the Plans' US and Israeli Appendices) in connection with grant of INX Tokens, restricted INX Tokens and options to purchase INX Tokens (collectively, "Token Awards") pursuant to the provisions of the Plan. The Plan provides for the grant of Token Awards to employees, directors and consultants who are Gibraltar citizens and others who are not Gibraltar citizens, and includes U.S. and Israeli appendices that further specify the terms and conditions of grants of Token Awards to such non-Gibraltar grantees.

<u>Authorized Tokens for Grant under the Plan</u>. Subject to certain capitalization adjustments, the aggregate number of INX Tokens that may be issued pursuant to Token Awards under the Plan may not exceed 17,373,438 INX Tokens. Tokens subject to Token Awards granted under the Plan that expire, become un-exercisable or are canceled, forfeited to or repurchased by the Company due to the failure to vest, or otherwise terminated without having been exercised or settled in full, in accordance with the Plan, shall revert to and again become available for issuance under the Plan (unless the Plan has terminated). This includes INX Tokens that are reacquired pursuant to any forfeiture provision, right of repurchase or redemption or INX Tokens that are used to satisfy the exercise or purchase price for the award or any tax withholding obligations related to an award.

<u>Plan Administration</u>. The Company's board of directors administers and interprets the provisions of the Plan. Under the Plan, the Company's board of directors has the authority to, among other things, determine award grantees, the numbers and types of Token Awards to be granted, the applicable fair market value and the provisions of each Token Award, including the period of their exercisability and the vesting schedule applicable to a Token Award, construe and interpret the Plan and awards granted thereunder, prescribe, amend and rescind rules and regulations for the administration of the Plan, and accelerate the vesting of awards.

<u>Options for INX Tokens</u>. Options to purchase INX Tokens are granted under option agreements adopted by the Company's board of directors. The Company's board of directors determines the exercise price for Tokens, within the terms and conditions of the Plan. Options granted under the Plan vest at the rate specified in the option agreements and option rules as determined by the Company's board of directors.

The Company's board of directors determines the term of options for Tokens granted under the Plan, up to a maximum of 15 years, or 10 years for its US grantees. If a grantee's service relationship with the Company or any of its affiliates ceases for any reason other than disability or death or Cause (as such term is defined below), the grantee may generally exercise any vested awards for a period of up to 90 days following the cessation of service, or such other period of time set forth in the option agreement. If a grantee's service relationship with the Company or any of its affiliates ceases by reason of death or disability (as determined by the Company's board of directors in its absolute discretion), the award shall remain exercisable for a period of one year following such termination (but only to the extent exercisable at termination of engagement or appointment, as the case may be, and not beyond the scheduled expiration date). If a grantee's service relationship with the Company or any of its affiliates ceases by reason of retirement, pursuant to applicable law with the approval of the Company's board of directors, the award shall remain exercisable for a period of one hundred and eighty (180) days following such termination (but only to the extent exercisable at termination of engagement or appointment, as the case may be, and not beyond the scheduled expiration date). If a grantee's service relationship with the Company or any of its affiliates ceases for Cause, as shall be determined by the Company's board of directors, all awards held by or on behalf of such grantee shall immediately expire upon the earlier of such termination or notice of termination. In no event may an option be exercised beyond the expiration of its term.

For purposes of the Plan, the term "Cause" means any of (i) a material breach by the grantee of the grantee's obligations under any agreement with the Company or any related company; (ii) the commission by the grantee of an act of fraud or embezzlement against the Company or any related company or the willful taking of action injurious to the business or prospects of the Company or any related company; (iii) the conviction of the grantee of a felony; and (iv) the grantee's involvement in an act or omission which constitutes breach of trust between the grantee and the Company or any related company.

The exercise price for INX Tokens issued under the Plan is generally payable in cash or cash equivalents or other forms of consideration determined by the Company's board of directors, including but not limited to a cashless exercise.

Unless the Company's board of directors provides otherwise, options may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution.

<u>Significant Event</u>. In the event of (a) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation, other than a transaction in which the holders of INX Shares (on an as converted basis) immediately prior thereto have the same, or substantially similar, proportionate ownership of shares (on an as converted basis) of the surviving corporation immediately after the transaction and a transaction in which the holders of INX Shares (on an as converted basis) immediately prior thereto own a majority of the voting power of the surviving corporation; or (b) any sale, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets or all or substantially all of the outstanding and issued shares of the Company; each outstanding award will be treated as the Company's board of directors determines, unless in each case the applicable award agreement provides otherwise. The Board may, but shall not be obligated to, determine that a certain portion of the outstanding awards held by or for the benefit of any grantee and which have not yet vested shall be accelerated and become immediately vested and exercisable. The Board is not obligated to treat all awards similarly.

<u>Plan Amendment or Termination</u>. The Company's board of directors may at any time amend, alter, suspend or terminate the Plan. Certain amendments, alterations, or the suspension or discontinuance of the Plan may require the written consent of holders of outstanding awards. Certain material amendments also require the approval of the Company's shareholders. Unless sooner terminated, the Plan terminates in February 2036.

**<u>Grant of TIDCI Share Awards under the TIDCI Equity Incentive Plan</u>**:

Commencing as of the completion of the Valdy Transaction and until the Arrangement, certain employees, directors and consultants engaged by the Company or any of its affiliates are being compensated by grant of share awards of TIDCI pursuant to the TIDCI Equity Incentive Plan.

The TIDCI Equity Incentive Plan provides for the grant of shares of TIDCI, options to purchase shares of TIDCI, restricted shares of TIDCI and restricted share units of TIDCI and it includes US and Israeli appendices that further specify the terms and conditions of grants of share awards to US and Israeli grantees.

<u>Authorized Shares</u>. Subject to certain capitalization adjustments, the aggregate number of TIDCI shares that may be issued pursuant to share awards under the TIDCI Equity Incentive Plan may not exceed 49,192,357 shares. Should any award for any reason expire or be canceled prior to its exercise or relinquishment in full, the share underlying to such award may again, according to the TIDCI Board's sole and absolute discretion, be subject to an award under the TIDCI Equity Incentive Plan, provided, however, that shares that have actually been issued under the TIDCI Equity Incentive Plan shall not be returned to the TIDCI Equity Incentive Plan and shall not become available for future distribution under the TIDCI Equity Incentive Plan. The aggregate number of shares to be delivered upon the exercise of all awards granted under the TIDCI Equity Incentive Plan shall not exceed the maximum number of shares permitted under the rule of any stock exchange on which shares are then listed or other regulatory body having jurisdiction.

<u>Plan Administration</u>. The TIDCI Board administers and interprets the provisions of the TIDCI Equity Incentive Plan. Under the TIDCI Equity Incentive Plan, the TIDCI Board has the authority to, among other things, determine award grantees, the numbers and types of share awards to be granted, applicable market value and the provisions of each share award, including the period of their exercisability and the vesting schedule applicable to a share award, construe and interpret the TIDCI Equity Incentive Plan and awards granted thereunder, prescribe, amend and rescind rules and regulations for the administration of the TIDCI Equity Incentive Plan, and accelerate the vesting of awards.

<u>Share Options</u>. Options to purchase TIDCI shares are granted under option agreements adopted by the TIDCI's Board. TIDCI's Board determines the exercise price for share options, within the terms and conditions of the TIDCI Equity Incentive Plan. Options granted under the TIDCI Equity Incentive Plan vest at the rate specified in the share option agreements and option rules as determined by the TIDCI Board.

The TIDCI's Board determines the term of share options granted under the TIDCI Equity Incentive Plan, up to a maximum of 10 years. If a grantee's service relationship with TIDCI or any of its affiliates ceases for any reason other than disability or death or Cause (as such term is defined below), the grantee may generally exercise any vested awards for a period of up to 90 days following the cessation of service, or such other period of time set forth in the option agreement. If a grantee's service relationship with TIDCI or any of its affiliates ceases by reason of death or disability (as determined by the TIDCI's Board in its absolute discretion), the award shall remain exercisable for a period of one year following such termination (but only to the extent exercisable at termination of engagement or appointment, as the case may be, and not beyond the scheduled expiration date). If a grantee's service relationship with the TIDCI or any of its affiliates ceases by reason of retirement, pursuant to applicable law with the approval of the TIDCI's Board, the award shall remain exercisable for a period of one hundred and eighty (180) days following such termination (but only to the extent exercisable at termination of engagement or appointment, as the case may be, and not beyond the scheduled expiration date). If a grantee's service relationship with the Company or any of its affiliates ceases for Cause, as shall be determined by TIDCI's Board, all awards held by or on behalf of such grantee shall immediately expire upon the earlier of such termination or notice of termination. In no event may an option be exercised beyond the expiration of its term.

For purposes of the TIDCI Equity Incentive Plan, the term "Cause" means any of (i) a material breach by the grantee of the grantee's obligations under any agreement with the TIDCI or any subsidiary; (ii) the commission by the grantee of an act of fraud or embezzlement against TIDCI or any subsidiary or the willful taking of action injurious to the business or prospects of TIDCI or any subsidiary; (iii) the conviction of the grantee of a felony; and (iv) the grantee's involvement in an act or omission which constitutes breach of trust between the grantee and the TIDCI or any subsidiary.

The exercise price for shares issued under the TIDCI Equity Incentive Plan are generally payable in cash or cash equivalents or other forms of consideration determined by TIDCI's Board, including but not limited to a cashless exercise.

Unless TIDCI's Board provides otherwise, options may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution.

TIDCI's Board may award options to purchase shares of the TIDCI to any eligible grantee. Each option granted under the TIDCI Equity Incentive Plan shall be evidenced by a written agreement between TIDCI and the grantee, in such form as TIDCI's Board shall from time to time approve. The options shall be subject to all applicable terms of the TIDCI Equity Incentive Plan. The provisions of the various option agreements entered into under the TIDCI Equity Incentive Plan need not be identical.

<u>Limitations on Grants.</u>

The TIDCI Equity Incentive Plan provides that-

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| | |
|:---|:---|
| ◌ | Awards granted to any one individual in any 12-month period cannot exceed more than 5% of the issued TIDCI shares, unless TIDCI has obtained disinterested shareholder approval. |

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| | |
|:---|:---|
| ◌ | Awards granted to any one consultant, in aggregate, in any 12-month period cannot exceed more than 2% of the issued TIDCI shares. |

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| | |
|:---|:---|
| ◌ | Stock options granted to all persons, in aggregate, conducting investor relations activities in any 12-month period cannot exceed more than 2% of the issued TIDCI shares. |

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<u>Restricted Shares</u>. Restricted shares may be awarded in consideration for cash or cash equivalents or another form of consideration, including past services, as determined by TIDCI's Board. TIDCI's Board determines the terms and conditions of restricted shares, including vesting and forfeiture terms. If a participant's service relationship with TIDCI ends for any reason, TIDCI may receive any or all of the shares held by the participant that have not vested as of the date the participant terminates service with TIDCI through a forfeiture condition or a repurchase right.

<u>Restricted Share Units</u>. Restricted share units may be awarded in consideration for cash or cash equivalents or another form of consideration, including past services, as determined by TIDCI's Board. TIDCI's Board determines the terms and conditions of restricted share units, including vesting and forfeiture terms. If a participant's service relationship with TIDCI ends for any reason, TIDCI may receive any or all of the shares held by the participant that have not vested as of the date the participant terminates service with TIDCI through a forfeiture condition or a repurchase right.

<u>Changes to Capital Structure</u>. In the event of any dividend or other distribution, recapitalization, share split, reverse share split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or other change in TIDCI's corporate structure affecting its shares, TIDCI Board may make any adjustments it deems appropriate, including in the aggregate number and class of shares available under the TIDCI Equity Incentive Plan, and TIDCI Board's determination in this regard shall be conclusive.

<u>Significant Event</u>. In the event of the consummation of a Significant Event (as defined below) or the adoption of any plan or proposal for the liquidation or dissolution of TIDCI, then, notwithstanding any contrary vesting periods in any agreement or in the TIDCI Equity Incentive Plan, and unless in each case the applicable agreement provides otherwise, TIDCI Board may, but shall not be obligated to, determine that a certain portion of the outstanding awards held by or for the benefit of any grantee and which have not yet vested shall be accelerated and become immediately vested and exercisable.

For purposes of the TIDCI Equity Incentive Plan, the term "Significant Event" means each of the following: (a) a takeover bid (as defined in the Act), which is successful in acquiring shares, (b) a change of control of the TIDCI Board resulting from the election by the members of TIDCI of less than a majority of the persons nominated for election by management of TIDCI, (c) any consolidation, plan of arrangement or amalgamation of TIDCI, other than a transaction in which the holders of shares immediately prior thereto have the same, or substantially similar, proportionate ownership of shares of the surviving or resulting entity immediately after the transaction and a transaction in which the holders of shares immediately prior thereto own a majority of the voting power of the surviving or resulting entity, (d) any sale, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets or all or substantially all of the outstanding and issued Shares of TIDCI, or (e) the dissolution of TIDCI business or the liquidation of its assets.

**C. Board Practices**

***Election of Directors; Independent Board Members***

Under the Companies Act, a Gibraltar private company must have at least one director. Appointments of directors are performed by means of a vote at the general meeting of shareholders, or by a resolution of the board if permitted by the memorandum or if the articles so provide. Our Articles of Association provide that, any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director (a) by ordinary resolution of the shareholders (members) (within the meaning given in section 200 of the Companies Act), or (b) by a decision of our Board of Directors.

Our Articles of Association also provide that, upon the effectiveness of the registration statement submitted as part of the Token Offering, the Company shall maintain a Board consisting of a majority of independent directors, as defined by the NASAA Statements of Policy and the UK Corporate Governance Code. We currently have seven (7) directors, five of whom are independent as such term is defined by the North American Securities Administrators Association (NASAA) Statement of Policy Regarding Corporate Securities Definitions and the UK Corporate Governance Code. There is no definition under Gibraltar law to the term "Independent Director."

Further, our Articles of Association state that, in addition to any obligation, duty or consideration imposed on them by law, independent directors shall be required to consider the interests of token holders in determining whether to approve or disapprove of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a
transaction with an Affiliate (as such term is defined in the Articles);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a
Deemed Liquidation (as such term is defined in the Articles); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) an
Insolvency (as such term is defined in the Articles).

In connection with all future material affiliated transactions and loans, we will (i) make and enter into such transactions and loans on terms no less favorable to us than those that can be obtained from unaffiliated third parties; (ii) obtain approval from a majority of our independent directors of all future material transactions and loans, including any forgiveness of loans; and (iii) to the extent required by law, obtain shareholder approval for any such transaction. Our officers and directors have considered their due diligence and assure that there is a reasonable basis for these representations. Further, we have considered and decided to embody certain of these representations in our Articles of Association. Our Articles of Association include a provision that any material transaction between the Company and an affiliate of the Company must be approved by a majority (and at least two) of our independent directors who do not have an interest in the transaction.

Our Articles of Association provide that if the numbers of director votes for and against a proposal are equal, the chairman of the meeting has a casting vote.

***Qualification of Directors***

The shareholding qualification for directors may be fixed by the Company in general meeting, and unless and until so fixed no qualification shall be required.

***Authority Granted to Directors***

Subject to the Articles, the directors are responsible for the management of the company's business, for which purpose they may exercise all the powers of the Company. Subject to the Articles, the directors may delegate any of the powers which are conferred on them under the Articles: (i) to such person or committee; (ii) by such means (including by power of attorney) to such an extent; (iii) in relation to such matters or territories; and (iv) on such terms and conditions; as they think fit. Committees to which the directors delegate any of their powers must follow procedures which are based (as far as they are applicable) on those provisions of the articles which govern the taking of decisions by directors. The directors may make rules of procedure for all or any committees, which prevail over rules derived from the articles if they are not consistent with them.

***Directors' Remuneration***

Directors may undertake any services for the Company as determined by the Board of Directors. Directors are entitled to such remuneration as determined by the Board of Directors: (a) for their services to the Company as directors, and (b) for any other services undertaken for the Company. Subject to the Company's articles of association, a director's remuneration may take any form, and include any arrangements in connection with the payment of a pension, allowance or gratuity, or any death, sickness or disability benefits, to or in respect of that director. Unless otherwise determined by the Board of Directors, their remuneration accrues from day to day and directors are not accountable to the Company for any remuneration that they receive as directors or as officers or employees of the Company's subsidiaries or of any other body corporate in which the Company is interested. The Company may pay any reasonable expenses which the directors properly incur in connection with their attendance at: (a) meetings of directors or committees of directors, (b) general meetings, or (c) separate meetings of the holders of any class of shares or of debentures of the company, or otherwise in connection with the exercise of their powers and the discharge of their responsibilities in relation to the Company.

**Corporate Governance**

Under Gibraltar law, the Company is governed in accordance with its memorandum and articles of association, the provisions of the Companies Act and other Gibraltar statutory and common law principles. The Board is committed to the principles of corporate governance which it considers to be central to the effective management of the business and to maintaining the confidence of investors.

***Differences between the Gibraltar Companies Act and laws impacting Delaware companies***

The Sarbanes-Oxley Act, as well as related rules subsequently implemented by the SEC, requires foreign private issuers, such as us, to comply with various corporate governance practices. Under those rules, we may elect to follow certain corporate governance practices permitted under the Companies Act, in lieu of compliance with corresponding corporate governance requirements otherwise imposed by the SEC regulations for U.S. domestic issuers.

The Companies Act and the laws of Gibraltar affecting Gibraltar companies like us and our shareholders differ from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the laws of Gibraltar applicable to us and, for illustrative purposes only, the Delaware General Corporation Law (the "DGCL"), which governs companies incorporated in the state of Delaware. The summary is not intended to be a complete discussion nor a comprehensive all included description of the respective rights and it is qualified in its entirety by reference to Delaware law and the Companies Act, and as may be relevant, to our Memorandum and our Articles of Association.

**Number of Directors**

Under the Companies Act, every Gibraltar private limited company shall have at least one director and the number shall be fixed in the company's memorandum and articles of association.

**Removal of Directors**

Under the Gibraltar law, directors may be removed from office, with or without cause, in accordance with the provisions of their memorandum and articles of association. Gibraltar law allows shareholders with sufficient majority to exercise a vote to remove directors. In addition, under our Articles of Association, a person ceases to be a director as soon as: (a) that person ceases to be a director by virtue of any provision of the Companies Act or the Gibraltar Insolvency Act 2011 or is prohibited from being a director by law; (b) a bankruptcy order is made against that person; (c) a composition is made with that person's creditors generally in satisfaction of that person's debts; (d) a registered medical practitioner who is treating that person gives a written opinion to the company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more than three months; (e) notification is received by the company from the director that the director is resigning from office, and such resignation has taken effect in accordance with its terms. Under Delaware law, unless otherwise provided in the certificate of incorporation, directors may be removed from office, with or without cause, by a majority stockholder vote, though in the case of a corporation whose board is classified, stockholders may affect such removal only for cause.

<u>Vacancies on the Board of Directors</u>. Under the Companies Act, appointments of directors (other than nomination of directors via the general meeting of shareholders) may also be made by a resolution of the board if allowed by the articles of association of the Gibraltar company. Our Articles of Association provide that, any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director (a) by ordinary resolution of the shareholders (members) of the Gibraltar company (within the meaning given in section 200 of the Companies Act), or (b) by a decision of our Board of Directors. Under Delaware law, vacancies on a corporation's board of directors, including those caused by an increase in the number of directors, may be filled by a majority of the remaining directors.

<u>Shareholder/Stockholder Meetings</u>. Under the Companies Act, annual general meetings of shareholders and extraordinary general meetings of shareholders (within the meaning given in sections 193 and 195 of the Companies Act) shall be held at such place, on such date and at such time as may be designated from time to time by the board of directors or as provided in the articles of association of the Gibraltar company, and extraordinary general meetings of the shareholders may be called by the board of directors or by such person or persons as may be authorized under the Companies Act or by the articles of association. With respect to notices of general meetings, subject to the provisions of the Companies Act relating to *special resolutions*, seven days' notice at the least (exclusive of the day on which the notice is served or deemed to be served, but inclusive of the day for which notice is given) specifying the place, the day and the hour of meeting and, in case of special business, the general nature of that business shall be given in manner hereinafter mentioned, or in such other manner (if any) as may be prescribed by the company in general meeting, to such persons as are, under the articles of association of the company, entitled to receive such notices from the company; but with the consent of all the members entitled to receive notice of some particular meeting, that meeting may be convened by such shorter notice and in such manner as those members may think fit. Meetings to resolve matters requiring a special resolution necessitate a 21 day notice period.

A Gibraltar company can decide its own way of communicating with its shareholders, including publication of notice of meetings on a website of a company (in accordance with the provision of the Companies Act). *Ordinary resolutions* (within the meaning given in section 200 of the Companies Act) at the general meetings are passed by a simple majority. *Extraordinary and special* resolutions (within the meaning given in section 201 of the Companies Act) are passed by seventy-five percent (75%) majority. Under Delaware law, (i) the annual meeting of stockholders shall be held at such place, on such date and at such time as may be designated from time to time by the board of directors or as provided in the certificate of incorporation or by the bylaw, and (ii) special meetings of the stockholders may be called by the board of directors or by such person or persons as may be authorized by the certificate of incorporation or by the bylaws.

<u>Shareholder action by written consent</u>. Under the Companies Act, it is not necessary in the case of a Gibraltar private company to hold a general meeting in order to pass an ordinary, an extraordinary, or a special resolution. Subject to provisions in the articles of the company, such resolutions may be passed in writing by unanimous approval. Our Memorandum and Articles of Association currently provide such provisions. Under the DGCL, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation.

<u>Preemptive Rights</u>. Under Gibraltar law, rights of pre-emption can be worked into the articles of association of the company. However, in the absence of such explicit rights, shareholders are not automatically entitled to benefit from preemptive rights. Under Delaware law, unless otherwise provided in a corporation's certificate of incorporation, a stockholder does not, by operation of law, possess preemptive rights to subscribe to additional issuances of the corporation's stock.

<u>Liability of Directors and Officers</u>.

Pursuant to s. 224 of the Companies Act, in a limited company the liability of the directors or managers, or of the managing director, if so provided by the memorandum, may be unlimited, while s. 225 of the Companies Act states that a limited company, if so authorized by its articles, may by special resolution, alter its memorandum so as to render unlimited the liability of its directors or managers, or of any managing director. Upon the passing of any such special resolution the provisions of the special resolution shall be as valid as if they had been originally contained in the memorandum. However, s. 231 (1) states that subject to its provisions, any provision, whether contained in the articles of a company or in any contract with a company or otherwise, for exempting any director, manager or officer of the company from, or indemnifying him against, any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the company, shall be void. S. 231 (2) further states that nothing shall preclude:

● Any person, not being the company, indemnifying any director, manager or officer of the company against any such liability as referred to in subsection (1);

● A company from purchasing and maintaining for any director manager or officer of the company, or any person (whether an officer of the company or not) employed by the company as auditor, insurance against any such liability referred to in subsection (1);

A company from indemnifying any director, manager or officer of the company against any such liability incurred by him in defending any proceedings, whether civil or criminal, in which judgment is given in his favor or in which he is acquitted or in connection with any application under s. 477 in which relief is granted to him by the court.

Under Delaware law, a corporation's certificate of incorporation may include a provision eliminating or limiting the personal liability of a director to the corporation and its stockholders for damages arising from a breach of fiduciary duty as a director. However, no provision can limit the liability of a director for:

● any breach of the director's duty of loyalty to the corporation or its stockholders;

● acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;

● intentional or negligent payment of unlawful dividends or stock purchases or redemptions; or

● any transaction from which the director derives an improper personal benefit.

<u>Standard of Conduct for Directors</u>. Under Gibraltar law, directors are subject to various common law duties. Director's duties are not codified in Gibraltar and are not set in statute but derive from common law principles and case law. These significant duties and responsibilities include the following:

● to act in good faith and in the best interest of the company;

● to not allow their interests to conflict with those of the company; and

● to act with due care and skill.

Delaware law does not contain specific provisions setting forth the standard of conduct of a director. The scope of the fiduciary duties of directors is generally determined by the courts of the State of Delaware. In general, directors have a duty to act without self-interest, on a well-informed basis and in a manner they reasonably believe to be in the best interest of the stockholders.

<u>Voting Rights</u>. Under Gibraltar law, the basic presumption is that each shareholder is entitled to one vote for each share held. However, the rights and entitlements attaching to shares of a Gibraltar company are set out in a company's memorandum and articles of association which can be modified to denote the rights and entitlements attaching to each type of share in the company. Certain shares may be granted additional voting rights while others may only be entitled to financial remuneration and not voting rights. Delaware law provides that, unless otherwise provided in the certificate of incorporation, each stockholder of capital stock is entitled to one vote for each share of capital stock held by such stockholder, and blockchain assets are not considered capital stock unless expressly identified in the certificate of incorporation of the company.

<u>Distribution of periodic reports to shareholders; proxy solicitation</u>. Under the Companies Act, each company decides its own way of communicating with its shareholders, however shareholders have a right to request certain information from the company.

<u>Quorum</u>. Under the Companies Act, a company is entitled to determine in its memorandum of association and in its articles of association, the number of shareholders and percentage of holdings required for a quorum at a shareholders meeting. Our Articles and our memorandum of association, or the Memorandum, provides that two members present in person or by proxy shall constitute a quorum unless there shall at any time be one member in which event such member alone shall have the authority to transact the business of a general meeting. An ordinary resolution of the members (or of a class of members) can be passed by members representing a simple majority (i.e. more than 50%) of the total voting rights of the members or, as the case may be, of the class of members. An extraordinary or special resolution of the members requires a majority of not less than 75% of those members at a general meeting of which notice specifying the terms of the resolution and the intention to propose the resolution as such a resolution has been given.

<u>Nomination of our directors</u>. Our directors are elected by an annual meeting of our shareholders to hold office until the next annual meeting following one year from his or her election. The nominations of directors, which are presented to our shareholders by our Board, are generally made by the Board itself, in accordance with the provisions of our Articles of Association and the Companies Act. Nominations need not be made by a nominating committee of our Board consisting solely of independent directors.

<u>Compensation of officers</u>. Under the Companies Act and our Memorandum and Articles of Association, compensation of our officers requires approval by, our Board and, at times, our shareholders. The Board will seek recommendations and approval from the Audit Committee.

<u>Independent directors</u>. A majority of the directors serving on our Board are "independent", and in any case, we will at all times maintain a Board with at least two directors who are independent. We define independence using both the North American Securities Administrators Association (NASAA) Statement of Policy Regarding Corporate Securities Definitions and the UK Corporate Governance Code.

Gibraltar law does not require, nor do our independent directors conduct, regularly scheduled meetings at which only they are present.

<u>Shareholder approval</u>. We will seek shareholder approval for all corporate actions requiring such approval under the requirements of the Companies Act. The Companies Act sets our various matters requiring shareholder approval. Notable examples of this include any amendments to the company's Memorandum and Articles of Association, any increase or reclassification of share capital and the issuance of dividends.

In particular, shareholder approval shall be generally required for: (i) an acquisition of shares/assets of another company that involves the issuance of 20% or more of the acquirer's shares or voting rights or if a director, officer or 5% shareholder has greater than a 5% interest in the target company or the consideration to be received; (ii) the issuance of shares leading to a change of control; (iii) adoption/amendment of equity compensation arrangements; and (iv) issuances of 20% or more of the shares or voting rights (including securities convertible into, or exercisable for, equity) of a listed company via a private placement (and/or via sales by directors/officers/5% shareholders) if such equity is issued (or sold) at below the greater of the book or market value of shares.

Generally, under Delaware law, unless the certificate of incorporation provides for the vote of a larger portion of the stock, completion of a merger, consolidation, sale, lease or exchange of all or substantially all of a corporation's assets or dissolution requires:

● the approval of the board of directors; and

● approval by the vote of the holders of a majority of the outstanding stock or, if the certificate of incorporation provides for more or less than one vote per share, a majority of the votes of the outstanding stock of a corporation entitled to vote on the matter.

<u>Mergers and similar arrangements</u>. Under the Gibraltar law, there are various mechanisms to give effect to a merger or takeover. However, the most common way is pursuant to the provisions of the Companies Act by way of scheme of arrangement. The procedure for a scheme of arrangement is set out at Part VIII of the Companies Act.

In very general terms, a scheme of arrangement is a compromise or arrangement between a company and its members. Under a scheme to effect a merger, the shares in one Gibraltar company (target) would be exchanged by its shareholders for consideration shares and/or cash by another Gibraltar company.

A brief overview of the process is as follows:

● **Court order for holding meeting**: an application may be made by a company or any member (or creditors) of such company to summon a meeting of members;

● **Statement to be circulated**: Where a meeting is summoned, the notice of such meeting which is sent to members must include a statement explaining the proposed arrangement and disclosing any material interests of the directors of the company, whether as directors or as members or as creditors of the company or otherwise;

● **Approval of members of merging companies**: The scheme is conditional on, amongst other things, the approval by shareholders; the statutory majority required to approve the scheme at the meeting is a 75% majority of those shareholders who are present and vote in person or who vote by proxy or at any adjournment thereof;

● **Petition to the Court**: Upon approval of a majority of shareholders, an application must then be made to Court by way of petition seeking the Court's sanction of the scheme. As part of this application, the Court will need to be satisfied that the requisite approval of the shareholders has been duly sought and obtained in accordance with the necessary legal processes. If the Court is satisfied in this regard, it may then, either by order sanctioning the arrangement or by imposing certain conditions for the implementation of the scheme or by any subsequent order, make provision for the amalgamation of the relevant companies.

● **Delivery of the Order to the Registrar**: When issued by the Court, the order sanctioning the scheme will need to be delivered to with the Register of Companies for registration and, it is upon such delivery and registration that the scheme will become effective; a copy of such order must be delivered to the Registrar within 7 days after its making. The entire process can take between 4 and 8 months.

Under Delaware law each corporation's board of directors must approve a merger agreement. The merger agreement must state, among other terms, the terms of the merger and method of carrying out the merger. This agreement must then be approved by the majority vote of the outstanding stock entitled to vote at an annual or special meeting of each corporation, and no class vote is required unless provided in the certificate of incorporation. Delaware permits an agreement of merger to contain a provision allowing the agreement to be terminated by the board of directors of either corporation, notwithstanding approval of the agreement by the stockholders of all or any of the corporations (1) at any time prior to the filing of the agreement with the Secretary of State or (2) after filing if the agreement contains a post-filing effective time and an appropriate filing is made with the Secretary of State to terminate the agreement before the effective time. In lieu of filing an agreement of merger, the surviving corporation may file a certificate of merger, executed in accordance with Section 103 of the DGCL. The surviving corporation is also permitted to amend and restate its certification of incorporation in its entirety. The agreement of merger may also provide that it may be amended by the board of directors of either corporation prior to the time that the agreement filed with the Secretary of State becomes effective, even after approval by stockholders, so long as any amendment made after such approval does not adversely affect the rights of the stockholders of either corporation and does not change any term in the certificate of incorporation of the surviving corporation. If the agreement is amended after filing but before becoming effective, an appropriate amendment must be filed with the Secretary of State. If the surviving corporation is not a Delaware corporation, it must consent to service of process for enforcement of any obligation of the corporation arising as a result of the merger; such obligations include any suit by a stockholder of the disappearing Delaware corporation to enforce appraisal rights under Delaware law.

If a proposed merger or consolidation for which appraisal rights are provided is to be submitted for approval at a shareholder meeting, the subject company must give notice of the availability of appraisal rights to its shareholders at least 20 days prior to the meeting.

A dissenting shareholder who desires to exercise appraisal rights must (a) not vote in favor of the merger or consolidation; and (b) continuously hold the shares of record from the date of making the demand through the effective date of the applicable merger or consolidation. Further, the dissenting shareholder must deliver a written demand for appraisal to the company before the vote is taken. The Delaware Court of Chancery will determine the fair value of the shares exclusive of any element of value arising from the accomplishment or expectation of the merger, together with interest, if any, to be paid upon the amount determined to be the fair value. In determining such fair value, the court will take into account "all relevant factors." Unless the Delaware Court of Chancery in its discretion determines otherwise, interest from the effective date of the merger through the date of payment of the judgment will be compounded annually and accrue at 5% over the Federal Reserve discount rate.

<u>Approval of Related Party Transactions</u>. All related party transactions must be disclosed to the Company for approval.

<u>Transactions with interested shareholders</u>. Delaware law contains a business combination statute applicable to Delaware public corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or group who or which owns or owned 15% or more of the target's outstanding voting shares within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware public corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

The Companies Act has no direct comparison, but it is worth noting that certain common law provisions relating, for example, to conflicts of interest and similar considerations, may, depending on the facts, apply under Gibraltar law.

**Committees of the Board of Directors**

Gibraltar companies are not required to establish any sub committees of the Board. Nevertheless, they have the power to create such subcommittees and delegate responsibilities and oversight accordingly. Committees to which the directors delegate any of their powers must follow procedures which are based as far as they are applicable on those provisions of the articles which govern the taking of decisions by directors. The directors may make rules of procedure for all or any committees, which prevail over rules derived from the articles if they are not consistent with them.

Our Board has established three committees: (1) an audit committee, (2) a compensation committee, and (3) a nominating and corporate governance committee. The members of the audit committee, compensation committee, and nominating and corporate governance committee were appointed by the Board.

 ****

 ****

***Audit Committee***

Our Board has adopted terms of reference for an audit committee, as customary for public companies, and established the committee upon the closing of the Token Offering. The audit committee is currently comprised of three independent members of the Board. The audit committee has primary responsibility for monitoring the quality of internal controls and ensuring that the financial performance of the Company is properly measured and reported on. It receives and reviews reports from our management and auditors relating to the interim and annual accounts and the accounting and internal control systems in use throughout the Company. The audit committee meets not less than once in each financial year and at such other times as circumstances require.

Our Board of Directors has adopted an audit committee charter, which sets forth the responsibilities of the audit committee consistent with SEC rules and regulations governing audit committee members, including the following:

● considering and making recommendations to our Board on our financial statements, reviewing and discussing the financial statements and presenting its recommendations with respect to the financial statements to the Board prior to the approval of the financial statements by our Board;

● oversight of our independent registered public accounting firm and recommending the engagement, compensation or termination of engagement of our independent registered public accounting firm to the Board in accordance with Gibraltar law;

● recommending the engagement or termination of the person filling the office of our internal auditor, reviewing the services provided by our internal auditor and reviewing effectiveness of our system of internal control over financial reporting;

● recommending the terms of audit and non-audit services provided by the independent registered public accounting firm for pre-approval by our Board; and

● reviewing and monitoring, if applicable, legal matters with significant impact, finding of regulatory authorities' findings, receiving reports regarding irregularities and legal compliance, acting according to "whistleblower policy" and recommending to our Board if so required, and overseeing our policies and procedures regarding compliance to applicable financial and accounting related standards, rules and regulations.

Although not required under Gibraltar law, the members of our audit committee are independent in accordance with the independence standard that is applied to non-investment company issuers under Rule 10A-3 of the Exchange Act. All members of our audit committee are financially literate.

 **

***Remuneration (Compensation) Committee***

 **

Although not required under Gibraltar law, our Board has also adopted terms of reference for a compensation committee and SEC rules and regulations, and established the committee upon the closing of the Token Offering. The compensation committee is currently comprised of three independent members of the Board. The members of our compensation committee are independent in accordance with the independence standard under Rule 10C-1 of the Exchange Act. The compensation committee reviews the performance of management and makes recommendations to our Board on matters relating to their remuneration and terms of employment.

 ****

***Nominating and Corporate Governance Committee***

Although not required under Gibraltar law, our Board has also adopted terms of reference for a Nominating and Corporate Governance Committee under SEC rules and regulations and established the committee on December 14th, 2021. The Nominating and Corporate Governance committee is currently comprised of two independent members of the Board. The members of our Nominating and Corporate Governance committee are independent in accordance with the independence standard under Rule 10C-1 of the Exchange Act. The Nominating and Corporate Governance committee exercises general oversight with respect to the governance of the Board of Directors.

**Role of Board of Directors in Risk Oversight Process**

Risk assessment and oversight are an integral part of our governance and management processes and business strategy. Our Board encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations, to discusses strategic and operational risks at regular management meetings, and to conduct specific strategic planning and review sessions during the year that include a focused discussion and analysis of the risks facing us. Throughout the year, senior management reviews these risks with the Board at regular board meetings as part of management presentations that focus on particular business functions, operations or strategies, and presents steps taken by management to mitigate or eliminate such risks.

**Appointment of Secretary**

Subject to the provisions of the Companies Act, the secretary shall be appointed by the directors for such term, at such remuneration and upon such conditions as they may think fit; and any secretary so appointed may be removed by them.

**Family Relationships**

There are no family relationships between any members of our executive management and our directors.

**Approval of Related Party Transactions**

*General*

 

Under Gibraltar law, related party transactions need to be disclosed to the board as such before the transaction. Details on the transaction appear as related party transactions in the notes to the consolidated financial statements of the Company.

Under the Companies Act, we may approve an action by an office holder from which the office holder would otherwise have to refrain, as described above, if:

● the office holder acts in good faith and the act or its approval does not cause harm to the company; and

● the office holder disclosed the nature of his or her interest in the transaction (including any significant fact or document) to the company at a reasonable time before the company's approval of such matter.

*Duty to Disclose Personal Interests*

 

As set out above, under Gibraltar law directors of the company have various common law and fiduciary duties to the company. These duties are not codified in the Companies Act but are wide ranging and include a duty to not to allow their interests to conflict with those of the company. They are therefore required to promptly disclose any direct or indirect personal interest that they may have and all related material information known to them relating to any existing or proposed transaction by the company.

All arrangements as to compensation and indemnification or insurance of office holders require approval of the compensation committee and Board of Directors, and compensation of office holders who are directors must be also approved, subject to certain exceptions, by the shareholders, in that order. If shareholders of a company do not approve the compensation terms of office holders, other than directors, the compensation committee and Board of Directors may override the shareholders' decision, subject to certain conditions.

**Exculpation and Indemnification of Directors and Officers Indemnities**

The general common law position that a company can indemnify its directors has been circumscribed in Gibraltar by statutory enactment. Section 231 of the Companies Act imposes certain limits on the extent and scope of indemnification relieving directors of indemnification under Gibraltar law. Section 231(1) prohibits indemnification for liability arising from their own negligence, default, breach of duty or breach of trust. A provision in the articles of a company or a specific contract seeking to provide such indemnification is void. However, it follows that apart from such restrictions, directors can in certain circumstances be indemnified (i.e. for matters not expressly prohibited).

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is therefore unenforceable.

**Insurance**

Under our Articles, the directors may decide to purchase and maintain insurance, at the expense of the company, for the benefit of any relevant director in respect of any relevant loss. In this paragraph: (a) a "relevant director" means any director or former director of the company or an associated company, (b) a "relevant loss" means any loss or liability which has been or may be incurred by a relevant director in connection with that director's duties or powers in relation to the company, any associated company or any pension fund or employees' share scheme of the company or associated company, and (c) companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate.

The Company executed a run-off insurance arrangement for its existing representatives' insurance policy from Willis Towers Watson Israel in connection with the Company's acquisition by Republic for applicable parties.

**D. Employees.**

Each individual who provides services to us does so through an employment, services, consulting or similar agreement.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Company<sup>(1)</sup>** | **Location** | **Management** | **Financing** | **Development** | **Administration and Other Positions** | **Total** |
| INX Limited (Gib.) **<sup>(2)</sup>** | &nbsp;&nbsp;Cyprus and Gibraltar | 0 | 0 | 0 | 3 | 3 |
| INX Digital, Inc. (US) **<sup>(2)</sup>** | &nbsp;&nbsp;United States | 1 | 0 | 0 | 2 | 3 |
| Midgard Technologies Ltd. (Israel) **<sup>(2)</sup>** | Israel | 0 | 1 | 13 | 1 | 15 |
| **Total** |  | **1** | **1** | **13** | **6** | **21** |

---

**Notes:**

(1) As a single employee/service provider may be engaged in more than one activity, each employee/service provider is represented only once under the activity representing their primary responsibility.

(2) Employees/service providers of INXL, INXS, INXD, Midgard, and Republic Operations LLC also provide services to other entities in the group. The INX Digital Company, Inc. has entered into an intercompany services agreement with Republic Operations LLC pursuant to which Republic Operations LLC provides strategic, operational, administrative and other services. Under this agreement, Republic Operations LLC determines, in its discretion, the personnel and resources used to perform such services, and no employees are exclusively dedicated to the Company. Accordingly, services are provided on a shared, as-needed basis, and no specific headcount is allocated.

**E. Share Ownership.**

As of December 31, 2025, 47,635,875 of our ordinary shares are outstanding and are held by TIDCI. Beneficial ownership is determined in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting or investment power with respect to those securities and include shares subject to options and warrants that are exercisable within 60 days from the date of this report. Such shares are also deemed outstanding for purposes of computing the percentage ownership of the person holding the option, but not the percentage ownership of any other person. As of May 14, 2026, none of the outstanding ordinary shares are held by U.S. Persons.

Unless otherwise indicated below, to our knowledge, all persons named in the table have sole voting and investment power with respect to their shares, except to the extent that authority is shared by spouses under community property laws. None of our shareholders has informed us that he, she, or it is affiliated with a registered broker-dealer or is in the business of underwriting securities. None of our shareholders has different voting rights from other shareholders.

---

| | | |
|:---|:---|:---|
|  | **Ordinary<br> Shares<br> Beneficially<br> Owned** | **Percentage<br> of<br> Ordinary<br> Shares<br> Beneficially<br> Owned** |
| **5% Shareholders** | | |
| The INX Digital Company Inc. | 47635875 | 100% |
| **Senior Management and Directors<sup>(1)</sup>** |  |  |
| Iris Even-tov |  |  |
| Vlad Uchenik |  |  |
| Paz Diamant |  |  |
| Chuck Petid |  |  |
| Edward Cohen |  |  |
| Allen Yee |  |  |
| Noam Elharar |  |  |
| All of the senior management and directors as a group (7 persons) | **-** |  |

---

(1) The
address of Senior Management and Directors is INX Limited's registered office at 57/63 Line Wall Road, Gibraltar, GX11 1AA.

In addition, the following table sets forth information with respect to the outstanding beneficial ownership of INX Tokens as of May 14, 2026, by:

● each of our executive officers and directors;

● each person or entity known by us to beneficially own more than 5% of our outstanding tokens; and

● all of our senior management and directors as a group.

---

| | | |
|:---|:---|:---|
|  | **INX<br> Tokens<br> Beneficially<br> Owned** | **Percentage<br> of INX<br> Tokens<br> Beneficially<br> Owned** |
| **5% INX Tokenholders** | | |
| - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| **Senior Management and Directors** |  |  |
| % |  |  |
| Iris Even-tov |  |  |
| Paz Diamant | 394341 | \* |
| Chuck Petid |  |  |
| Edward Cohen |  |  |
| Noam Elharar |  |  |
| Allen Yee |  |  |
| Vlad Uchenik |  |  |
| All of the senior management and directors as a group (7 persons)% |  |  |

---

\* Less than 1%

**Share Ownership and Award Plan**

See "Item 6, B. Compensation - Equity Compensation Plan Information" for a description of the Company's Share Ownership and Award Plan.

On March 31, 2022, our Board of Directors and the Board of Directors of TIDCI (acting as our general meeting) approved certain changes to our Plan (including to the Plan's US and Israeli Appendixes) in connection with grant of INX Tokens, restricted INX Tokens and options to purchase INX Tokens pursuant to the provisions of the Plan.

**F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation.**

None.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders.**

Except as set forth in "Item 6. Directors, Senior Management and Employees—E. Share Ownership," to the best of our knowledge, no other person who we know beneficially owns 5% or more of our ordinary shares outstanding as of May 14, 2026. None of our shareholders has different voting rights from other shareholders. Other than as described herein, to the best of our knowledge, we are not owned or controlled, directly or indirectly, by another corporation, by any foreign government or by any natural person or legal persons, severally or jointly, and we are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company.

***Changes in Percentage Ownership by Major Shareholders***

 ****

<u>Security Exchange Agreement</u>

On March 31, 2021, the Company, Valdy, certain Company securityholders, PI Financial Corp. and Eight Capital Inc. entered into the Security Exchange Agreement, for the consummation of a securities exchange.

Pursuant to the terms of the Security Exchange Agreement, on January 10, 2022, Valdy acquired all the issued and outstanding securities of the Company from the Company Securityholders by way of a securities exchange, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Valdy
acquired an aggregate of 15,955,875 INX Shares (excluding the INX Shares issued pursuant to the Concurrent Financing (the "INX
Financing Shares")) from the holders thereof, and issued to such holders consideration of an aggregate of 167,331,410 post-Consolidation
Valdy Shares, being the product of the number of INX Shares acquired by the ratio of 10.4871348 Valdy Shares for each INX Share (the
"Exchange Ratio");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Valdy
acquired an aggregate of 31,680,000 INX Financing Shares from the holders thereof and issued to such holders consideration of an aggregate
of 31,680,000 post-Consolidation Valdy Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
holders of INX Options surrendered for cancellation each INX Option held by them, and for each INX Option so surrendered, Valdy issued
to such holder options to acquire post-Consolidation Valdy Shares (the "Valdy Consideration Options") having terms equivalent
to the surrendered INX Option with respect to exercise price, vesting conditions, and expiry date, but adjusted such that: (i) the number
of post- Consolidation Valdy Shares issuable pursuant to the Valdy Consideration Option shall be the product of the number of INX Shares
issuable pursuant to the INX Option and the Exchange Ratio; and (ii) the exercise price for each post-Consolidation Valdy Share issuable
upon conversion of the Valdy Consideration Option shall be equal to the exercise price of the INX Option divided by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
holders of common share purchase warrants which entitle the holder thereof to acquire one INX Share (the "INX Legacy Warrants")
surrendered for cancellation each INX Legacy Warrant held by them, and for each INX Legacy Warrant so surrendered, Valdy issued to such
holder warrants to purchase post-Consolidation Valdy Shares (the "Valdy Consideration Warrants") having terms equivalent
to the surrendered INX Legacy Warrant with respect to exercise price, the number of post-Consolidation Valdy Shares issuable pursuant
thereto, and expiry date, but adjusted such that: (i) the number of post-Consolidation Valdy Shares issuable pursuant to the Valdy Consideration
Warrant shall be the product of the number of INX Shares issuable pursuant to the INX Legacy Warrant and the Exchange Ratio; and (ii)
the exercise price for each post-Consolidation Valdy Share issuable upon conversion of the Valdy Consideration Warrant shall be equal
to the exercise price of the INX Legacy Warrant divided by the Exchange Ratio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) each
warrant to purchase INX Shares issued pursuant to the Concurrent Financing ("INX Financing Warrant"), in accordance with
its terms, became exercisable to purchase an equivalent number of post-Consolidation Valdy Shares at the same exercise price as the INX
Shares to which such warrant was previously exercisable for, and such INX Financing Warrant otherwise continued to be governed in accordance
with its terms.

***Record Holders***

As of May 14, 2026, there were zero holders of record of our shares that are not incorporated in the United States.

**B. Related Party Transactions.**

The following is a description of the material terms of those transactions with related parties to which we are party to date.

For a description of the Valdy Transaction and the Security Exchange Agreement, see "Item 4, Part A - History and Development of the Company" and "Item 7, Part A – Major Shareholders and Related Party Transactions – Major Shareholders – Changes in Percentage Ownership by Major Shareholders – Security Exchange Agreement."

**Relationships and Transactions with Directors and Executive Officers**

*Mr. Vladislav Uchenik, Officer*

 

<u>Management, Services or Consulting Agreement</u>

 

Mr. Uchenik serves as the Chief Executive Officer and Chief Compliance Officer for the Company.

<u>Transactions Involving the Company's Securities</u>

 

On February 8, 2022, the Board of Directors of TIDCI approved a grant of 509,617 Ordinary Shares of TIDCI to Mr. Uchenik pursuant to the terms of the Omnibus Equity Incentive Compensation Plan of TIDCI, subject to the standard vesting provisions set forth in such plan. The exercise price of the shares underlying such grant shall be equal to their fair market value on March 15, 2022 (the date of the grant).

On Nay 26, 2024, the Board of Directors of TIDCI approved a grant of 235,668 Ordinary Shares of TIDCI to Mr. Uchenik pursuant to the terms of the Omnibus Equity Incentive Compensation Plan of TIDCI, subject to the standard vesting provisions set forth in such plan. The exercise price of the shares underlying such grant shall be equal to their fair market value on May 26, 2024 (the date of the grant).

On December 17, 2024, the Board of Directors of TIDCI approved a grant of 120,000 Restricted Share Units of TIDCI to Mr. Uchenik, pursuant to the terms of the Omnibus Equity Incentive Compensation Plan of TIDCI.

The Company's Board of Directors also approved, all subject to a Restricted Token Agreement: (i) a grant of 75,000 INX Tokens effective April 12, 2022, (ii) a grant of 75,000 INX Tokens effective December 8, 2022, (iii) a grant of 25,000 INX Tokens effective May 12, 2023. and (iv) a grant of 50,000 INX Tokens effective May 26, 2024.

**C. Interests of Experts and Counsel.**

None.

**ITEM 8. FINANCIAL INFORMATION.**

**A. Consolidated Statements and Other Financial Information.**

See "Item 18. Financial Statements."

**Legal Proceedings**

From time to time we may be subject to legal proceedings and claims in the ordinary course of business. We are not involved in any material legal proceedings.

**Dividends**

We have never declared or paid cash dividends to our shareholders. Currently we do not intend to pay cash dividends. We currently intend to reinvest any future earnings in developing and expanding our business. Any future determination relating to our dividend policy will be at the discretion of our Board of Directors and will depend on a number of factors, including future earnings, our financial condition, operating results, contractual restrictions, capital requirements, business prospects, applicable law and other factors our Board of Directors may deem relevant.

**B. Significant Changes.**

None.

**ITEM 9. THE OFFER AND LISTING**

**A. Offer and Listing Details.**

No trading market currently exists for our Ordinary Shares in the United States or elsewhere.

**B. Plan of Distribution.**

Not applicable.

**C. Markets.**

No trading market currently exists for our Ordinary Shares in the United States or elsewhere.

**D. Selling Shareholders.**

Not applicable.

**E. Dilution.**

Not applicable.

**F. Expenses of the Issue.**

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital.**

Not applicable.

**B. Memorandum and Articles of Association.**

A copy of our Memorandum of Association is attached as Exhibit 1.1 to this Annual Report. Other than as disclosed below, the information called for by this Item is set forth in Exhibit 1.1 to this Annual Report and is incorporated by reference into this Annual Report.

**C. Material Contracts.**

We have not entered into any material contract within the two years prior to the date of this annual report on Form 20-F, other than (i) contracts entered into in the ordinary course of business, (ii) as otherwise described below, (iii) as described in "Item 4.A. History and Development of the Company" above, (iv) as described in "Item 4.B. Business Overview" above, (v) as described in "Item 7A. Major Shareholders" above, or (vi) as described in "Item 8B. Significant Changes."

On December 15, 2022, INX entered into a shareholders' and joint venture agreement with SICPA SA, a company organized under the laws of Switzerland, Mr. Yosef Meir Cohen and Mr. Hagai Itkin ("SICPA Agreement"), whereby parties to the agreement have agreed to joint their expertise and collaborate to develop central bank digital currency solutions with the utilization of blockchain technology. Subsequently, for the purpose of executing joint objectives under the SICPA Agreement, the parties agreed to form SICPA INX SA ("SICPA INX"), an entity organized under the laws of Switzerland. All parties to the agreement are to become shareholders of SICPA INX, with INX's share of the issued and outstanding share capital to be 33 percent. Also, under the SICPA Agreement, INX is entitled to introduce a new partner within the first year from the date of the agreement, which, if approved by the majority shareholder, would be entitled to receive a maximum number of shares constituting 16.5 percent of the issued and outstanding share capital of SICPA INX, which shall be reduced from INX's initial allocation of shares. In relation to the SICPA Agreement, INX also intends to enter into a service agreement with SICPA INX to license its technology and provide technology support and management services for a period of one year in return for compensation.

On June 19, 2023, the Company announced that Republic, a global alternative investment platform, entered into a subscription agreement (the "Subscription Agreement") with TIDCI to acquire 9.5% of the issued and outstanding shares of TIDCI in a combination of cash and shares at an approximately pre-money valuation of US$50 million. As part of the agreement, TIDCI and Republic entered into a non-binding term sheet, which contemplates a transaction where Republic acquires 100% of the common equity of the Company at a valuation up to US$120 million. Additionally, the two parties entered into a collaboration agreement ("Collaboration Agreement") pursuant to which the parties will seek to expand the breadth and depth of tokenization infrastructure and access to digital assets for investors worldwide. On August 18, 2023, the Company announced the closing of the investment by Republic for 9.5% of TIDCI's shares.

On November 8, 2023, the Company announced an extension of the deadline for Republic's potential option exercise to acquire the remaining common shares of TIDCI. The deadline was extended until February 15, 2024. Additionally, the Company announced that the Collaboration Agreement would be extended until February 15, 2024.

On February 15, 2024, the Company announced that it agreed to extend the negotiating period for the previously announced acquisition of TIDCI by Republic Group ("Republic") for three months, to May 15, 2024. The Company also announced that it and Republic were renewing their previously announced collaboration agreement for an additional year.

On May 15, 2024, the Company announced that it would not extend the "drop-dead-date" for execution of a definitive agreement with Republic, and that the term sheet for the potential acquisition would lapse.

On April 3, 2025, TIDCI announced that it has entered into the Arrangement Agreement with Republic, which closed on November 10, 2025. For more information regarding the Arrangement Agreement, see "Item 4. Information on The Company - History and Development of the Company – Recent Developments".

**D. Exchange Controls.**

Dividends paid or deemed to be paid or credited by the Company to a U.S. Holder are subject to Canadian withholding tax under Part XIII of the Tax Act. The default rate of withholding tax is 25% of the gross dividend paid to a non-resident of Canada.

Under the Treaty, the rate of withholding tax on dividends paid to a U.S. Holder is generally limited to 15% of the gross dividend. In the case of a U.S. Holder that is a corporation owning at least 10% of the Company's voting shares, the applicable withholding rate is 5% of the gross dividend, provided the U.S. Holder can establish entitlement to the benefits of the Treaty.

Except as provided in the Investment Canada Act, or the Act, there are no limitations under the laws of Canada, the Province of British Columbia or in the charter or any other constituent documents of the Company on the right of foreigners to hold or vote the ordinary shares of the Company.

The following discussion summarizes the principal features of the Investment Canada Act for a non-resident who proposes to acquire the ordinary shares.

The Investment Canada Act generally prohibits an "entity" that is not Canadian-controlled from effecting an acquisition of control of a Canadian business that exceeds the applicable financial threshold for review, unless after review, the Director of Investments appointed by the Minister responsible for the Investment Canada Act is satisfied that the investment is likely to be of net benefit to Canada. The financial thresholds for review vary according to whether the direct acquisition of control is made by (i) an investor that is controlled by nationals of a specified free trade party; (ii) a national of a World Trade Organization (WTO) member state; or (iii) a state-owned enterprise. Any investment, regardless of the applicable financial threshold for review, may be reviewed on national security grounds. An acquisition of control is presumed to occur under the Investment Canada Act if a non-Canadian acquires a majority of the ordinary shares. An acquisition resulting in the non-Canadian purchaser holding one third or more, but less than a majority, of the ordinary shares would be presumed to be an acquisition of control of the Company unless it could be established that, on the acquisition, the Company was not controlled in fact by the acquirer through the ownership of the ordinary shares. Certain transactions relating to the ordinary shares would be exempt from the Investment Canada Act, including: (a) an acquisition of the ordinary shares by a person in the ordinary course of that person's business as a trader or dealer in securities; (b) an acquisition of control of the Company in connection with the realization of security granted for a loan or other financial assistance and not for a purpose related to the provisions of the Investment Canada Act; and (c) an acquisition of control of the Company by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control in fact of the Company, through the ownership of the ordinary shares, remained unchanged.

**E. Taxation.**

**U.S. Federal Income Tax Considerations**

 ****

Set forth below is a discussion, in summary form, of certain United States federal income tax consequences relating to the acquisition, ownership and disposition of Tokens. This summary does not attempt to present all aspects of the United States federal income tax laws or any state, local or foreign laws that may affect an interest in Tokens. Financial institutions, insurance companies, tax-exempt entities, purchasers subject to the alternative minimum tax and other purchasers of special status must consult with their own professional tax advisors regarding a prospective or current investment in INX Tokens. This summary is by nature general in nature and should not be construed as tax advice to any prospective purchaser or current INX Token holder. No ruling has been or will be requested from the IRS and no assurance can be given that the IRS will agree with the tax consequences described in this summary. The following discussion assumes that each purchaser will acquire Tokens as a capital asset (generally, property held for investment). This description is based on the U.S. Internal Revenue Code of 1986, as amended, (the "Code"), existing, proposed and temporary U.S. Treasury Regulations and judicial and administrative interpretations thereof, in each case as available on the date hereof. All of the foregoing is subject to change, which change could apply retroactively and could affect the tax consequences described below. The following discussion is limited to prospective purchasers and current INX Token holders who are "United States Persons" within the meaning of the Code. Each prospective purchaser and current INX Token holder should consult with its own tax adviser in order to fully understand the United States federal, state, local and foreign income tax consequences of purchasing or holding an interest in Tokens. No formal or legal tax advice is hereby given to any prospective purchaser or current INX Token holder, and no prospective purchaser and or INX Token holder may rely on the Company's statements regarding the anticipated tax consequences of purchasing, holding and disposing of Tokens.

Transactions involving Tokens are relatively new and it is more than likely that the IRS will issue guidance, possibly with retroactive effect, impacting the taxation of participating in the purchase, ownership and disposition of Tokens. Such future tax guidance from the IRS (or guidance resulting from future judicial decisions) could negatively impact purchasers of Tokens.

**Character of Tokens**

There are no regulations, published rulings or judicial decisions involving the characterization for US federal income tax purposes of instruments with substantially the same terms as the INX Tokens. It is also unclear what guidance on the characterization and treatment of tokens for U.S. federal income tax purposes may be issued in the future. Thus, the characterization and treatment of INX Tokens for U.S. federal income tax purposes is uncertain.

The IRS has ruled on the tax treatment of virtual currencies. In Notice 2014-21, the IRS held that digital currencies (i) are "property" that is not currency for US federal income tax purposes and (ii) may be held as a capital asset. The Notice does not address other aspects of the U.S. federal income tax treatment of tokens, including the tax characterization of tokens which possess non-currency rights or powers (so called "utility" tokens) or tokens which provide a share of profits to holders.

Moreover, there is no authority on the circumstances in which profit-sharing tokens such as INX Tokens may be treated as equity in the Company for U.S. federal income tax purposes. It should be expected, however, that the IRS or a court would determine the characterization of tokens based on a consideration and weighing of the characteristics of these instruments. Based on the characteristics of the INX Tokens, the Company intends to treat the INX Tokens as property that is not an equity interest in the Company for US federal income tax purposes. This treatment is supported by the following characteristics:(i) distribution rights on the INX Tokens are (a) based on annual net cash flow from operating activities rather than earnings and profits of the Company and (b) entitlements pursuant to the terms of the INX Tokens without any action to declare a payment (distribution) required by Company's board of directors, (ii) no participation rights in residual property of the Company on liquidation along with common equity and no specified liquidation preference typical with preferred equity and (iii) no voting rights.

Other characterizations of the INX Tokens are possible, including the possible characterization as equity of the Company. If INX Tokens were characterized as equity interests in the Company for U.S. federal income purposes, U.S. holders of INX Tokens would be subject additional tax consequences and related reporting considerations applicable to holders of stock in a foreign company, including the possible application of rules relating to PFICs and CFCs. The summary below assumes that INX Tokens will not constitute an equity interest in the Company for U.S. federal income tax purposes.

Potential purchasers and current INX Token holders are strongly advised to consult their own tax advisors as to the US federal income tax characterization of the INX Tokens and the consequences to them of the various alternative characterizations.

Treatment of Token Sales. The issuance of Tokens to a purchaser will be treated as a taxable sale of property by the Company to the purchaser. A purchaser should not be taxed upon the acquisition of Tokens. A purchaser should generally have a tax basis for U.S. federal income tax purposes in INX Tokens it acquires from the Company equal to the value of the purchase price paid by such purchaser for INX Tokens. The purchaser's holding period in INX Tokens should begin on the day INX Tokens are issued to the purchaser.

Disposition of Tokens. A Token holder who sells, exchanges, or otherwise disposes of Tokens for cash or other property (including pursuant to an exchange of such Tokens for other convertible virtual currency) should, pursuant to Internal Revenue Service Notice 2014-21, recognize capital gain or loss in an amount equal to the difference between the fair market value of the property received in exchange for such Tokens and the purchaser's adjusted tax basis in INX Tokens. This capital gain may be long term if the purchaser has held his Tokens for more than one year prior to disposition. Preferential tax rates for long term capital gain will generally apply to non-corporate U.S. Holders. Any gain or loss realized by a U.S. Holder on the sale, exchange, or other disposition of Tokens should generally be treated as from sources within the United States for U.S. foreign tax credit purposes. The deductibility of capital losses for U.S. federal income tax purposes is subject to limitations.

Treatment of Profit-Share Distributions. U.S. holders of Tokens are required to include in gross income the amount of any distribution paid with respect to their Tokens. The source of distributions paid in respect of INX Tokens for U.S. foreign tax credit purposes is not clear.

EACH PURCHASER SHOULD SEEK, AND MUST DEPEND UPON, THE ADVICE OF HIS OR HER TAX ADVISOR WITH RESPECT TO THEIR PURCHASE OWNERSHIP AND DISPOSITION OF TOKENS, AND EACH PURCHASER IS RESPONSIBLE FOR THE FEES OF SUCH ADVISOR. NOTHING IN THIS ANNUAL REPORT ON FORM 20-F IS OR SHOULD BE CONSTRUED AS LEGAL OR TAX ADVICE TO A PURCHASER. PURCHASERS SHOULD BE AWARE THAT THE INTERNAL REVENUE SERVICE MAY NOT AGREE WITH ALL TAX POSITIONS TAKEN BY THE COMPANY AND THAT CHANGES TO THE INTERNAL REVENUE CODE OR THE REGULATIONS OR RULINGS THEREUNDER OR COURT DECISIONS AFTER THE DATE OF THIS REPORT MAY CHANGE THE ANTICIPATED TAX TREATMENT TO A PURCHASER. THE COMPANY WILL NOT OBTAIN ANY RULING FROM THE INTERNAL REVENUE SERVICE WITH REGARD TO THE TAX CONSEQUENCES OF PURCHASES OF TOKENS.

THE TAX TREATMENT OF INX TOKENS IS UNCERTAIN AND THERE MAY BE ADVERSE TAX CONSEQUENCES FOR PURCHASERS UPON CERTAIN FUTURE EVENTS. A PURCHASE OF TOKENS MAY RESULT IN ADVERSE TAX CONSEQUENCES TO PURCHASERS, INCLUDING WITHHOLDING TAXES, INCOME TAXES AND TAX REPORTING REQUIREMENTS. EACH PURCHASER SHOULD CONSULT WITH AND MUST RELY UPON THE ADVICE OF ITS OWN PROFESSIONAL TAX ADVISORS WITH RESPECT TO THE UNITED STATES TAX TREATMENT OF TOKENS.

**F. Dividends and Paying Agents.**

Not applicable.

**G. Statement by Experts.**

Not applicable.

**H. Documents on Display.**

We are subject to certain information reporting requirements of the Exchange Act, applicable to foreign private issuers and under those requirements will file reports with the SEC. The SEC maintains an internet site at http://www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. Our filings with the SEC will also be available to the public through the SEC's website at www.sec.gov.

While we currently qualify as a "foreign private issuer" under the rules of the U.S. Securities and Exchange Commission, based on our shareholder composition and other relevant factors, we expect that, as of June 30, 2026, we will cease to meet the definition of a foreign private issuer. As a result, although we will remain eligible to use foreign private issuer forms for the remainder of the fiscal year ending December 31, 2026, beginning on January 1, 2027 we expect to be subject to the reporting and governance requirements applicable to U.S. domestic issuers. Commencing with our first periodic report required after January 1, 2027, we expect to file our reports on Forms 10-K, 10-Q and 8-K within the deadlines applicable to U.S. domestic filers, to become subject to the U.S. federal proxy rules and all of the beneficial ownership reporting and short-swing profit provisions of Section 16 of the Securities Exchange Act of 1934, and to no longer be permitted to rely on the home-country corporate governance practices available to foreign private issuers. Where appropriate in this annual report, we have included additional information regarding these anticipated changes.

Until January 1, 2027, we are expected to qualify as a foreign private issuer, and will be exempt from the rules and regulations under the Exchange Act, related to the furnishing and content of proxy statements, including disclosures with respect to executive compensation. Section 8103 of the National Defense Authorization Act for Fiscal Year 2026, named the "Holding Foreign Insiders Accountable Act", which was signed into law on December 18, 2025, requires directors and officers of foreign private issuers to make insider reports under *Section 16*(a) of the Exchange Act, effective March 18, 2026. Our principal shareholders continue to remain exempt from the reporting under Section 16(a) of the Exchange Act and our directors, officers and principal shareholders continue to remain exempt from the short-swing profit recovery provisions contained in Section 16(b) of the Exchange Act. In addition, we will not be required under the Exchange Act to file annual, quarterly and current reports and financial statements with the SEC as frequently or as promptly as U.S. domestic companies whose securities are registered under the Exchange Act. However, we will file with the SEC, within 120 days after the end of each fiscal year, or such applicable time as required by the SEC, an annual report on Form 20-F containing financial statements audited by an independent registered public accounting firm, and may submit to the SEC, on a Form 6-K, unaudited quarterly financial information.

We maintain a corporate website at https://www.inx.co/. Information contained on, or that can be accessed through, our website and the other websites referenced above do not constitute a part of this annual report. We have included these website addresses in this report solely as inactive textual references.

**I. Subsidiary Information.**

Not applicable.

**J. Annual Report to Security Holders.**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

*Foreign Exchange Risk*

 

We have not been exposed to material risks due to changes in foreign exchange rates, and we have not used any derivative financial instruments to manage our foreign exchange risk exposure.

 

*Interest Rate Risk*

 

We have not been exposed to material risks due to changes in market interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure.

We have invested a portion of our operating funds and a portion of the Cash Fund (also known as "Reserve Fund") in interest-earning instruments. Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.

*Credit Risk*

 

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company's cash and cash equivalents, investments and digital assets are exposed to credit risk. The Company limits its credit risk by placing its assets with high credit quality banks, financial institutions and digital assets custodians that are believed to have sufficient capital to meet their obligations. While the Company intends to only transact with counterparties that it believes to be creditworthy there can be no assurance that a counterparty will not default and that the Company will not sustain a material loss as a result. It is the Company's policy to monitor the creditworthiness of its counterparties and to minimize the concentration of credit risk to mitigate significant loss caused by potential counterparty's failure.

*Market Risk*

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to market risk arising from uncertainties about future prices of the instruments. The Company manages this risk through the various investment strategies within the parameters of the Company's investment guidelines.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**A. Debt Securities.**

Not applicable.

**B. Warrants and Rights.**

Not applicable.

**C. Other Securities.**

Not applicable.

**D. American Depositary Shares.**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

Not applicable.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

Not applicable.

**ITEM 15. CONTROLS AND PROCEDURES**

*Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes and includes those policies and procedures that: (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets; (2) provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards and that our receipts and expenditures are being made only in accordance with appropriate authorizations; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial statements.*

 

*Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.*

In connection with the preparation and audit of INX's consolidated financial statements as of December 31, 2025, our management, used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control—Integrated Framework (2013), and identified certain control deficiencies in the design and implementation of its internal control over financial reporting that constituted material weakness. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected on a timely basis.

We have identified some ineffective ITGC controls existed at December 31, 2025. As a result, business process controls (automated and IT-dependent manual controls) that are dependent on the ineffective ITGCs, or that use data produced from systems impacted by the ineffective ITGCs were deemed ineffective at December 31, 2025. In addition, there is an inadequate number of accounting personnel who have the requisite experience in SEC reporting regulation to properly implement control procedures.

These deficiencies could result in material misstatement in the financial statements and therefore constitute a material weakness. Based on this material weakness, the Company's management concluded that as of December 31, 2025, the Company's internal control over financial reporting was not effective.

Management is developing a plan to remediate the material weakness identified, including hiring additional accounting staff with the requisite background and knowledge, engaging third parties to assist in complying with the accounting and financial reporting requirements related to significant and complex transactions as well as adding personnel to assist with formalizing our business processes, accounting policies and internal control documentation, strengthening supervisory reviews by our management, and evaluating the effectiveness of our internal controls in accordance with the framework established by Internal Control - Integrated Framework (2013) published by the Committee of Sponsoring Organizations of the Treadway Commission. While our efforts are ongoing, we plan to continue to take additional steps to remediate the material weakness, improve our financial reporting systems, and implement new policies, procedures, and controls.

Management cannot assure that they will be successful in remediating the material weakness identified in the internal controls over financial reporting as of December 31, 2025. The failure to correct the material weakness or the failure to discover and address any other material weakness or deficiencies could result in inaccuracies in the financial statements and impair the ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis.

**ITEM 16. [RESERVED]**

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Currently no independent Audit Committee member is an "audit committee financial expert", as that term is defined by the SEC in its final rules implementing Section 407 of the Sarbanes-Oxley Act of 2002, because, after self-evaluation, our Audit Committee members did not consider themselves, individually, as an "audit committee financial expert". However, our Audit Committee members and our Board of Directors believe that our Audit Committee members are nonetheless qualified to carry out their duties on the Audit Committee given their experience and other qualifications in financial matters.

**ITEM 16B. CODE OF ETHICS**

We have adopted a Code of Business Conduct and Ethics applicable to all of our directors and employees, including our chief executive officer, chief financial officer, controller or principal accounting officer, and other persons performing similar functions, which is a "code of ethics" as defined in Item 16B of Form 20-F promulgated by the SEC. The Code of Business Conduct and Ethics is referenced on our website at INX.co. Information contained on, or that can be accessed through, our website does not constitute a part of this report and is not incorporated by reference herein.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees billed for professional services rendered by our principal auditors for the years ended December 31, 2025 and 2024, for various types of services and a brief description of the nature of such services. Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global, and an independent public accounting firm, was our principal auditor for the year ended December 31, 2025 and 2024. We currently expect Kost Forer Gabbay & Kasierer to serve as our principal auditor for the year ended December 31, 2025.

(U.S. dollars in thousands)

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| <br>**Services Rendered** | **(U.S. dollars in thousands)** | **(U.S. dollars in thousands)** |
| Audit services (1) | 893 | 490 |
| Total | 893 | 490 |

---

(1) These include professional services rendered by the principal accountant for the audit of the registrant's annual financial statements, including audited financial statements that were included in registration statements filed as part of our initial public offering.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not applicable.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not applicable.

**ITEM 16G. CORPORATE GOVERNANCE**

Not applicable.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**ITEM 16J. INSIDER TRADING POLICIES**

We have adopted insider trading policies and procedures governing the purchase, sale, and other dispositions of our securities by directors, senior management, and employees that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and any listing standards applicable to the registrant. A copy of the insider trading policy is filed as Exhibit 11.2 to this annual report.

**ITEM 16K. CYBERSECURITY**

We have developed and maintain a cybersecurity risk management program, consisting of cybersecurity policies, procedures, compliance and awareness programs to mitigate risk and to ensure compliance with security, availability and confidentiality trust principles. The cybersecurity process has been integrated into our overall risk management system and process and is managed both internally and through an external cybersecurity vendor. Management is responsible for identifying risks that threaten achievement of the control activities stated in the management's description of the services organizations systems. Management has implemented a process for identifying relevant risks that could affect the organization's ability to provide secure and reliable service to its users. The risk assessment occurs annually, or as business needs change, and covers identification of risks that could act against the company's objectives as well as specific risks related to a compromise to the security of data. See "Item 3.D — Risk Factors—Risks Related to Blockchain Assets— — The open-source structure of blockchain software means that blockchain networks may be susceptible to malicious cyber-attacks or may contain exploitable flaws, which may result in security breaches and the loss or theft of blockchain assets."

The level of each identified risk is determined by considering the impact of the risk itself and the likelihood of the risk materializing and high scoring risks are actioned upon. Risks are analyzed to determine whether the risk meets company risk acceptance criteria to be accepted or whether a mitigation plan will be applied. Mitigation plans include both the individual or department responsible for the plan and may include budget considerations.

The oversight of cybersecurity threats is undertaken by our Chief Technology Officer, who holds over two decades of experience in information technology and the design and architecture of information systems and is supported by management. Our audit committee is responsible for cybersecurity oversight and monitoring risk. Management informs the audit and investment committee of such risk by committee meetings.

We have not, to our knowledge, experienced any material IT system failures or any material cybersecurity attacks to date. See "Item 3.D — Risk Factors—Risks Related to Blockchain Assets—The open-source structure of blockchain software means that blockchain networks may be susceptible to malicious cyber-attacks or may contain exploitable flaws, which may result in security breaches and the loss or theft of blockchain assets."

As of the date of this report, we are not aware of any material risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

We have elected to provide consolidated financial statements and related information pursuant to Item 18.

**ITEM 18. FINANCIAL STATEMENTS**

The consolidated audited financial statements and the related notes required by this Item are included in this Annual Report on Form 20-F beginning on page F-1.

**ITEM 19. EXHIBITS.** 

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit Description** |
| 1.1 | [Memorandum of Association of the Company (previously filed as Exhibit 3.1 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex3-1_inxlimited.htm) |
| 1.2 | [Amended Third Amended and Restated Articles of Association of the Company, as currently in effect (Previously filed as Exhibit 1.2 to the Company's Form 20-F, filed on April 29, 2021 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390021023343/f20f2020ex1-2_inxlimited.htm) |
| 2.1 | [Form of INX Token Purchase Agreement (previously filed as Exhibit 4.1 to Amendment No. 10 to the Company's Form F-1, filed on August 12, 2020 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390020021590/ea125411ex4-1_inxlimited.htm) |
| 2.2 | [Form of Waiver and Subordination Undertaking (previously filed as Exhibit 4.2 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex4-2_inxlimited.htm) |
| 2.3 | [Smart Contract (previously filed as Exhibit 4.3 to Amendment No. 5 to the Company's Form F-1, filed on December 20, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019026616/ff12019a5ex4-3_inxlimited.htm) |
| 2.4 | [INX Smart Contract Description V.3.0, dated December 12, 2019 (previously filed as Exhibit 4.4 to Amendment No. 5 to the Company's Form F-1, filed on December 20, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019026616/ff12019a5ex4-4_inxlimited.htm) |
| 4.1# | [Amended and Restated Consultancy Agreement dated June 25, 2018 between Triple-V (1999) Ltd. and INX Limited (previously filed as Exhibit 10.4 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-4_inxlimited.htm) |
| 4.2# | [Financial Services Agreement dated December 26, 2017 between Insight Finance Ltd. and INX Limited (previously filed as Exhibit 10.5 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-5_inxlimited.htm) |
| 4.3 | [Second Amended and Restated Engagement Agreement dated December 31, 2017 between A-Labs Finance and Advisory Ltd. and INX Limited (previously filed as Exhibit 10.6 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-6_inxlimited.htm) |
| 4.4 | [Amendment to the Second Amended and Restated Engagement Agreement dated January 31, 2018, between A-Labs Finance and Advisory Ltd. and INX Limited (previously filed as Exhibit 10.7 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-7_inxlimited.htm) |
| 4.5 | [Amended and Restated Consultancy Agreement dated June 25, 2018 between Mr. Jonathan Azeroual and INX Limited (previously filed as Exhibit 10.13 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-13_inxlimited.htm) |
| 4.6# | [Executive Employment Agreement dated January 1, 2021 between Alan Silbert and INX Digital, Inc. (previously filed as Exhibit 10.42 to Post-Effective Amendment No. 2 to the Company's Form F-1, filed on March 30, 2021 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390021018494/ea138533ex10-42_inxlimited.htm) |
| 4.7 | [Services Agreement dated March 8, 2018 between Bentley Limited and INX Limited (previously filed as Exhibit 10.15 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-15_inxlimited.htm) |
| 4.8# | [Amendment to Services Agreement dated September 6, 2018 between Bentley Limited and INX Limited (previously filed as Exhibit 10.16 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-16_inxlimited.htm) |
| 4.9# | [Second Amendment to Services Agreement dated November 30, 2018 between Bentley Limited and INX Limited (previously filed as Exhibit 10.17 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-17_inxlimited.htm) |
| 4.10# | [Amended and Restated letter of invitation, dated June 25, 2018, between Mr. David Weild and INX Limited (previously filed as Exhibit 10.18 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-18_inxlimited.htm) |
| 4.11# | [Letter of Invitation, dated July 10, 2018, between Mr. Nicholas Thadaney and INX Limited (previously filed as Exhibit 10.22 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-22_inxlimited.htm) |
| 4.12# | [Letter of Invitation, dated September 21, 2018, between Mr. Thomas Lewis and INX Limited (previously filed as Exhibit 10.24 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-24_inxlimited.htm) |

---

---

| | |
|:---|:---|
| 4.13 | [Form of Custodial Services Agreement between INX Digital Inc. and BitGo Trust Company (previously filed as Exhibit 10.25 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-25_inxlimited.htm) |
| 4.14# | [Simple Agreement for Future Equity, dated April 25, 2019, between Shy Datika and INX Limited (previously filed as Exhibit 10.27 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-27_inxlimited.htm) |
| 4.15# | [Simple Agreement for Future Equity, dated April 25, 2019, between A-Labs Finance and Advisory Ltd. and INX Limited (previously filed as Exhibit 10.28 to the Company's Form F-1, filed on August 19, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019016285/ff12019ex10-28_inxlimited.htm) |
| 4.16# | [Simple Agreement for Future Equity, dated August 30, 2019, between Shy Datika and INX Limited (previously filed as Exhibit 10.29 to Amendment No. 1 to the Company's Form F-1, filed on September 26, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019018961/ff12019a1ex10-29_inxlimit.htm) |
| 4.17# | [Simple Agreement for Future Equity, dated August 30, 2019, between Triple-V (1999) Ltd. and INX Limited (previously filed as Exhibit 10.30 to Amendment No. 1 to the Company's Form F-1, filed on September 26, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019018961/ff12019a1ex10-30_inxlimit.htm) |
| 4.19# | [Simple Agreement for Future Equity, dated November 29, 2019, between Shy Datika and INX Limited (previously filed as Exhibit 10.33 to Amendment No. 5 to the Company's Form F-1, filed on December 20, 2019 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390019026616/ff12019a5ex10-33_inxlimited.htm) |
| 4.20# | [Simple Agreement for Future Equity, dated January 31, 2020, between Shy Datika and INX Limited (previously filed as Exhibit 10.35 to Amendment No. 8 to the Company's Form F-1, filed on April 23, 2020 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390020009969/ea120439ex10-35_inxlimited.htm) |
| 4.21# | [Simple Agreement for Future Equity, dated March 7, 2020, between A-Labs Finance and Advisory, Ltd. and INX Limited (previously filed as Exhibit 10.36 to Amendment No. 8 to the Company's Form F-1, filed on April 23, 2020 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390020009969/ea120439ex10-36_inxlimited.htm) |
| 4.22# | [Simple Agreement for Future Equity, dated March 31, 2020, between Shy Datika and INX Limited (previously filed as Exhibit 10.37 to Amendment No. 8 to the Company's Form F-1, filed on April 23, 2020 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390020009969/ea120439ex10-37_inxlimited.htm) |
| 4.23# | [Amended and Restated Services Agreement dated July 6, 2020 between Mr. Paz Diamant and INX Limited (previously filed as Exhibit 10.38 to Amendment No. 9 to the Company's Form F-1, filed on August 3, 2020 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390020019938/ea124642ex10-38_inxlimited.htm) |
| 4.24 | [Transfer Agency and Service Agreement (previously filed as Exhibit 10.40 to Amendment No. 9 to the Company's Form F-1, filed on August 3, 2020 and herein incorporated by reference)](https://www.sec.gov/Archives/edgar/data/1725882/000121390020019938/ea124642ex10-40_inxlimited.htm) |
| 4.25# | [Services Agreement, dated December 24, 2020, between Itai Avneri and INX Limited (previously filed as Exhibit 10.44 to Post-Effective Amendment No. 2 to the Company's Form F-1, filed on March 30, 2021 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390021018494/ea138533ex10-44_inxlimited.htm) |
| 4.26 | [Amended and Restated Securities Exchange Agreement dated, November 3, 2021, among Valdy Investments Ltd, the Company, the INX securityholders listed therein, PI Financial Corp. and Eight Capital (previously filed as Exhibit 99.2 to the Company's Form 6-K, filed on November 4, 2021 and herein incorporated by reference)](http://www.sec.gov/Archives/edgar/data/1725882/000121390021056870/ea149978ex99-2_inxlimited.htm) |
| 4.27# | [Letter of Invitation, dated December 13, 2021, between Hilary Kramer and INX Limited (previously filed as Exhibit 4.27 to the Company's Form 20-F, filed on May 2, 2022 and herein incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1725882/000121390022023077/f20f2021ex4-27_inxlimited.htm) |
| 4.28# | [Letter of Invitation, dated February 3, 2022, between Demetra Kalogerou and INX Limited (previously filed as Exhibit 4.28 to the Company's Form 20-F, filed on May 2, 2022 and herein incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1725882/000121390022023077/f20f2021ex4-28_inxlimited.htm) |
| 4.29# | [INX Limited Share and Token Ownership and Award Plan, as amended on March 31, 2022 (previously filed as Exhibit 4.29 to the Company's Form 20-F, filed on May 2, 2022 and herein incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1725882/000121390022023077/f20f2021ex4-29_inxlimited.htm) |
| 4.30# | [INX Limited Restricted Token Grant Notice and Restricted Token Agreement (previously filed as Exhibit 4.30 to the Company's Form 20-F, filed on May 2, 2022 and herein incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1725882/000121390022023077/f20f2021ex4-30_inxlimited.htm) |
| 4.31\* | [The INX Digital Company, Inc. and Opendeal Inc. (DBA Republic) and Republic Strategic Acquisition Co LLC Arrangement Agreement dated April 3, 2025](ea029020901ex4-31.htm) |
| 11.1\* | [List of subsidiaries of the Registrant](ea029020901ex11-1.htm) |
| 11.2 | [Insider trading policy (previously filed as Exhibit 11.2 to the Company's Form 20-F, filed on April 3, 2025 and herein incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1725882/000121390025028697/ea023665401ex11-2_inxltd.htm) |
| 12.1\* | [Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea029020901ex12-1.htm) |
| 12.2\* | [Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea029020901ex12-2.htm) |
| 13.1\* | [Certification by Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea029020901ex13-1.htm) |
| 13.2\* | [Certification by Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea029020901ex13-2.htm) |
| 15.1\* | [Consent of Kost Forer Gabbay & Kasierer, a member firm of Ernst & Young Global, Independent Registered Public Accounting Firm.](ea029020901ex15-1.htm) |
| 101 | The following financial information from INX's Annual Report on Form 20-F for the year ended December 31, 2025, formatted in Inline Extensible Business Reporting Language (XBRL): (i) Statement of Financial Position, (ii) Statements of Comprehensive Loss, (iii) Statements of Changes in Equity, (iv) Statements of Cash Flows and (iv) Notes to Financial Statements.\* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith

# Management contract or compensatory plan

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this report filed on its behalf.

---

| | | |
|:---|:---|:---|
|  | **INX LIMITED** | **INX LIMITED** |
| Date: May 21, 2026 | **By:** | /s/ Vladislav Uchenik |
|  |  | President and CEO |

---

![](ea029020901_img1.jpg)

**INX LIMITED**

**CONSOLIDATED FINANCIAL STATEMENTS** 

**AS OF DECEMBER 31, 2025**

**(U.S. DOLLARS IN THOUSANDS)**

**INDEX**

---

| | |
|:---|:---|
|  | **Page** |
| [**Report of Independent Registered Public Accounting Firm** *(PCAOB ID: 1281)*](#fin_001) | **F-2** |
| [**Consolidated Statements of Financial Position**](#fin_002) | **F-3** |
| [**Consolidated Statements of Profit or Loss and Comprehensive Income (Loss)**](#fin_003) | **F-4 - F-5** |
| [**Consolidated Statements of Changes in Equity**](#fin_004) | **F-6 - F-7** |
| [**Consolidated Statements of Cash Flows**](#fin_005) | **F-8 - F-9** |
| [**Notes to Consolidated Financial Statements**](#fin_006) | **F-10 - F-39** |

---

- - - - - - - - - - -

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| | | |
|:---|:---|:---|
| ![](ea029020901_img2.jpg) | **Kost Forer Gabbay & Kasierer**<br> 144 Menachem Begin Road, Building A<br> Tel-Aviv 6492102, Israel  | Tel: +972-3-6232525<br> Fax: +972-3-5622555<br> ey.com |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To the Shareholders and the Board of Directors of**

**INX LIMITED**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of financial position of INX Limited (the Company) as of December 31, 2025 and 2024, the related consolidated statements of profit and loss and comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with International Financial Reporting Standards as issued by the International Accounting Standard Board.

**The Company's Ability to Continue as a Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, has negative cash flows from operating activities, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These 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 audits. 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 audits 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 audits 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 audits 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 audits provide a reasonable basis for our opinion.

/s / KOST FORER GABBAY & KASIERER

A Member of Ernst & Young Global

We have served as the Company's auditor since its incorporation in 2017.

Tel-Aviv, Israel

May 21, 2026

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

**U.S. Dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | | **December 31** | **December 31** |
|  |<br>**Note** | **2025** | **2024 (\*)** |
| **Assets** |  |  |  |
| **Current assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $5069 | $10008 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents held in Reserve Fund | 5 | 3120 | 14209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 6 |  | 2922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments held in Reserve Fund | 5 |  | 11802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade receivables |  | 17 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other receivables | 8 | 989 | 2426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables for sale of subsidiary | 4 | 808 | 5265 |
| **Total current assets** |  | 10003 | 46651 |
| **Non-current assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments held in Reserve Fund | 5 |  | 8314 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments | 6 | 490 | 490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 7 | 1147 | 985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 9 | 24 | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 10 |  | 1483 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 10 |  | 1017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use-assets, net | 11 | - | 223 |
| **Total non-current assets** |  | 1661 | 12697 |
| **Total Assets** |  | $**11664** | $**59348** |
| **Liabilities and Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Current liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses |  | $4715 | $1570 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liability for Reserve Fund distribution | 5 | 3120 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability | 11 |  | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;INX Token liability | 12 | 24258 | 25833 |
| &nbsp;&nbsp;&nbsp;&nbsp;INX Token warrant liability | 13 | - | 660 |
| **Total current liabilities** |  | 32093 | 28291 |
| **Equity** | 15 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary shares of GBP 0.001 par value; Authorized: 100,000,000 shares at December 31, 2025, and 2024; Issued and Outstanding: 47,635,875 shares. |  | 60 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share premium |  | 49474 | 49474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contribution to equity by controlling shareholder |  | 10236 | 9908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit |  | (80199) | (28976) |
| **Total Equity** |  | (20429) | 31057 |
| **Total Liabilities and Equity** |  | $**11664** | $**59348** |

---

(\*) After retrospective application of SAB 122 – see Note 3a

The accompanying notes are an integral part of the consolidated financial statements.

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND COMPREHENSIVE INCOME (LOSS)**

**U.S. Dollars in thousands (except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  |<br>**Note** | **2025** | **2024** | **2023** |
| **Revenue:** |  |  |  |  |
| Trading and transaction fees | 19 | $290 | $422 | $432 |
| Service revenue | 1914 | 28 | 871 | 976 |
| Cost of services | 14 | - | (836) | (976) |
| Income on service revenue |  | 28 | 35 | - |
| Equity income (loss) on investment in associate | 6 | 1207 | (651) | (591) |
| Sales of digital assets |  |  |  | 11380 |
| Cost of digital assets |  |  |  | (11380) |
| Change in revaluation of digital assets |  | - | - | 235 |
| Net gain on digital assets |  | - | - | 235 |
| **Total income (loss)** |  | 1525 | (194) | 76 |
| **Operating income (expenses):** |  |  |  |  |
| Research and development |  | (3982) | (3082) | (3319) |
| Sales and marketing |  | (2838) | (3112) | (3876) |
| General and administrative |  | (14425) | (6712) | (9107) |
| Other expense |  | (120) |  | (1618) |
| Impairment of goodwill and intangible assets | 10 | (2500) |  |  |
| Change in fair value of INX Token warrant liability | 13 | (528) | 936 | 204 |
| **Total operating expenses** |  | (24393) | (11970) | (17716) |
| **Loss from operations** |  | **(22868)** | **(12164)** | **(17640)** |
| Unrealized gain on INX Tokens issued | 12 | 3495 | 28394 | 3775 |
| Finance income |  | 2747 | 2363 | 1682 |
| Financial expenses |  | (222) | (195) | (182) |
| Financial expense arising from distribution of Reserve Funds | 5 | (34325) | - | - |
| **Income (loss) before tax** |  | (51173) | 18398 | (12365) |
| Tax income (expense) | 21 | (16) | (1) | 20 |
| Net income (loss) from continuing operations |  | **(51189)** | **18397** | **(12345)** |
| Income from discontinued operation | 4 |  | 105 | 290 |
| Gain (loss) from sale of discontinued operation |  | (34) | 1145 |  |
| Net income (loss) from discontinued operation |  | (34) | 1250 | 290 |
| **Net income (loss)** |  | $**(51223)** | $**19647** | $**(12055)** |

---

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND COMPREHENSIVE INCOME (LOSS)**

**U.S. Dollars in thousands (except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | | **2025** | **2024** | **2023** |
| Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized (gain) loss on securities at fair value through other comprehensive income (loss) reclassification adjustment into net income (loss) |  | (710) | (265) | 77 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on investments at fair value through other comprehensive income (loss) |  | 141 | 600 | 1086 |
| &nbsp;&nbsp;&nbsp;Realized gain on investments – Sale of Subsidiary |  | - | 356 | - |
| &nbsp;&nbsp;&nbsp;Adjustments arising from translating financial statements from functional currency to presentation currency |  | (22) | 44 | (53) |
| **Total other comprehensive income (loss)** |  | (591) | 735 | 1110 |
| **Total comprehensive income (loss)** |  | $**(51814)** | $**20382** | $**(10945)** |
| Earnings (loss) per share, basic and diluted | 19 |  |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operation |  | $(1.08) | $0.39 | $(0.26) |
| &nbsp;&nbsp;&nbsp;From discontinued operation |  | - | 0.02 | 0.01 |
|  |  | (1.08) | 0.41 | (0.25) |
| Weighted average number of shares outstanding, basic and diluted |  | 47635875 | 47635875 | 47635875 |

---

The accompanying notes are an integral part of the consolidated financial statements.

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**U.S. Dollars in thousands (except share and per share data)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Ordinary<br> Shares** | **Par<br> Value** | **Share<br> Premium** | **Contribution<br> to Equity by Controlling Shareholder** | **Accumulated Other Comprehensive Income (Loss)** | **Accumulated<br> Deficit** | **Total<br> Equity** |
| **Balance as of December 31, 2022** |  | **47635875** | $**60** | $**49474** | $**5972** | $**(1254)** | $**(36568)** | $**17684** |
| Net loss |  |  |  |  |  |  | (12055) | (12055) |
| Realized loss on available-for sale securities reclassification adjustment into net income (loss) |  |  |  |  |  | 77 |  | 77 |
| Unrealized loss on available-for-sale securities, net of realized gain (loss) reclassification |  |  |  |  |  | 1086 |  | 1086 |
| Share-based compensation | 16 |  |  |  | 2724 |  |  | 2724 |
| Foreign currency translation |  | - | - | - | - | (53) | - | (53) |
| **Balance as of December 31, 2023** |  | **47635875** | $**60** | $**49474** | $**8696** | $**(144)** | $**(48623)** | $**9463** |
| Net income |  |  |  |  |  |  | 19647 | 19647 |
| Realized loss on available-for sale securities reclassification | 15 |  |  |  |  | (265) |  | (265) |
| Unrealized gain (loss) on investments |  | **-** | **-** | **-** | **-** | 600 |  | 600 |
| Reclassification of translation differences |  | **-** | **-** | **-** | **-** | 356 |  | 356 |
| Share-based compensation | 16 |  |  |  | 1212 |  |  | 1212 |
| Foreign currency translation |  | - | - | - | - | 44 | - | 44 |
| **Balance as of December 31, 2024** |  | **47635875** | $**60** | $**49474** | $**9908** | $**591** | $**(28976)** | $**31057** |

---

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**U.S. Dollars in thousands (except share and per share data)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Ordinary Shares** | **Par<br> Value** | **Share Premium** | **Contribution<br> to Equity by Controlling Shareholder** | **Accumulated Other Comprehensive Income (Loss)** | **Accumulated Deficit** | **Total Equity** |
| **Balance as of December 31, 2024** |  | **47635875** | $**60** | $**49474** | $**9908** | $**591** | $**(28976)** | $**31057** |
| Net loss |  |  |  |  |  |  | (51223) | (51223) |
| Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 15 |  |  |  |  | (710) |  | (710) |
| Unrealized gain (loss) on investments |  | **-** | **-** | **-** | **-** | 140 |  | 140 |
| Share-based compensation | 16 |  |  |  | 328 |  |  | 328 |
| Foreign currency translation |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22) | - | (22) |
| **Balance as of December 31, 2025** |  | **47635875** | $**60** | $**49474** | $**10236** | $**-** | $**(80199)** | $**(20429)** |

---

The accompanying notes are an integral part of the consolidated financial statements.

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**U.S. Dollars in thousands** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| **Net cash flows from operating activities:** |  |  |  |
| Net income (loss) for the period | $(51223) | $19647 | $(12055) |
| **Adjustments to reconcile net income (loss) to net cash used in operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based payment | 328 | 1212 | 2724 |
| &nbsp;&nbsp;&nbsp;Realized loss (gain) on investments, net | (710) | (265) | 77 |
| &nbsp;&nbsp;&nbsp;Financial income, net | (911) | (1808) | (1542) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 16 | 1 | 205 |
| &nbsp;&nbsp;&nbsp;Depreciation of equipment and right-of-use-assets | 270 | 367 | 512 |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill and intangible assets | 2500 | 152 | 168 |
| &nbsp;&nbsp;&nbsp;Changes in accrued interest and amortization of premium (discount) on investments | 124 | (251) | (91) |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | 1246 | (473) | 694 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on INX Tokens issued | (3495) | (28394) | (3775) |
| &nbsp;&nbsp;&nbsp;Loss (gain) on investment in associate | (1207) | 651 | 591 |
| &nbsp;&nbsp;&nbsp;Loss from disposal of equipment | 120 |  | 1618 |
| &nbsp;&nbsp;&nbsp;Net loss on office space sublease agreement |  |  | 33 |
| &nbsp;&nbsp;&nbsp;Impairment loss on digital assets | 65 | 12 |  |
| &nbsp;&nbsp;&nbsp;Financial expense arising from distribution of Reserve Funds | 34325 |  |  |
| &nbsp;&nbsp;&nbsp;Revaluation of lease liability and right-of-use assets |  |  | 14 |
| **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in digital assets, net |  | (72) | 1648 |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in trade receivables | 2 | (137) | (200) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in derivative assets |  |  | (546) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expenses and other receivables | 2622 | (1337) | 73 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued expenses | 3153 | (528) | 514 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in deferred revenue |  | (85) | 85 |
| &nbsp;&nbsp;&nbsp;Gain from sale of discontinued operation |  | (1145) |  |
| Cash paid and received during the year for: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest received | 941 | 1845 | 1560 |
| &nbsp;&nbsp;&nbsp;Taxes received (paid), net | - | (106) | (86) |
| **Net cash used in operating activities** | $**(11834)** | $**(10714)** | $**(7781)** |
| **Net cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of digital assets | (251) | (100) |  |
| &nbsp;&nbsp;&nbsp;Changes in sublease receivables |  | 91 | 106 |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (14) | (20) | (48) |
| &nbsp;&nbsp;&nbsp;Investment in associate |  |  | (32) |
| &nbsp;&nbsp;&nbsp;Purchase of investments | (37903) | (25581) | (9030) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales and maturities of investments | 60958 | 32175 | 20824 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of equipment | 10 |  |  |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in cash from sale of discontinued operation | 4457 | (293) | - |
| **Net cash provided by investing activities** | $**27257** | $**6272** | $**11820** |

---

The accompanying notes are an integral part of the consolidated financial statements.

**INX LIMITED**

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

 **U.S. Dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| **Net cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of INX Token warrants | $- | $- | $14 |
| &nbsp;&nbsp;&nbsp;Distribution of Reserve Fund | (31205) |  |  |
| &nbsp;&nbsp;&nbsp;Increase in INX Token liability | 14 |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of finance lease liabilities | (260) | (435) | (564) |
| **Net cash used in financing activities** | $**(31451)** | $**(435)** | $**(550)** |
| Change in cash and cash equivalents | (16028) | (4877) | 3489 |
| Cash and cash equivalents at beginning of year | 24217 | 29094 | 25605 |
| **Cash and cash equivalents at end of year** | $**8189** | $**24217** | $**29094** |

---

On December 31, 2025, 2024 and 2023, cash and cash equivalents include the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Cash and cash equivalents | $5069 | $10008 | $12572 |
| Cash and cash equivalents held in Reserve Fund | 3120 | 14209 | 16522 |
| Total cash and cash equivalents | $**8189** | $**24217** | $**29094** |

---

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Right of-use-asset recognized with corresponding lease liability | $- | $- | $28 |
| Digital assets payments to service providers | $(24) | (124) | - |

---

**Deconsolidation of a subsidiary:**

(A) Decrease in cash from sale of discontinued operation:

---

| | |
|:---|:---|
|  | **2024** |
| Working capital (excluding cash and cash equivalent) | $(514) |
| Receivable for sale of discontinued operation | 5265 |
| Rights-of-use-assets | (244) |
| Property and Equipment, net | (95) |
| Intangible Assets | (1651) |
| Goodwill | (1230) |
| Lease liability | 263 |
| Foreign currency translation reserve | (356) |
| Gain from sale of discontinued operation | (1145) |
| **Net cash transferred** | $**293** |

---

The accompanying notes are an integral part of the consolidated financial statements.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS**

INX Limited (the "Company" or "INX") was incorporated under the Gibraltar Companies Act on November 27, 2017, with registered office at 57/63 Line Wall Road, Gibraltar GX11 1AA, Gibraltar. The Company is wholly owned by The INX Digital Company Inc., a company incorporated under the provincial Business Corporations Act in British Columbia, Canada, with publicly listed shares on Cboe Canada under the symbol INXD and The OTCQB Venture Market under the symbol INXDF until November 2025.

On April 3, 2025, The INX Digital Company Inc., announced that it had entered into an arrangement agreement dated April 3, 2025 (the "Arrangement Agreement") with OpenDeal Inc. (d/b/a Republic) ("Republic") in connection with a transaction (the "Arrangement") that valued The INX Digital Company Inc.'s equity at up to $60,000. The Arrangement Agreement closed on November 10, 2025 (the "Closing").

Under the terms of the Arrangement Agreement, on Closing, Republic Strategic Acquisition Co LLC, a wholly-owned subsidiary of Republic, acquired all of the issued and outstanding Ordinary shares of The INX Digital Company, Inc., other than those Shares already owned by Republic.

The consolidated financial statements of the Company as of December 31, 2025, and 2024 and for the three years in the period ended December 31, 2025, were authorized for issuance on May 21, 2026, in accordance with a resolution of the board of directors.

***Discontinued operation***

 ****

On August 29, 2024 ("the sale date"), INX entered into a share sale agreement to sell its holdings in I.L.S. Brokers Ltd., a Company incorporated under the laws of the State of Israel ("ILSB"). The transaction was completed on November 29, 2025. The consideration was $4,450 plus ILSB's equity value as of October 31, 2024. A cash amount equal to 15% of the purchase price was held in escrow for one year, to secure the indemnification and other payment obligations of the Company. The escrow amount was released on January 27, 2026. For further details see note 4.

***Nature of Operations***

The Company, through its subsidiaries, primarily focuses on providing regulated infrastructure for security token offerings and on-chain Real World Assets (RWAs). The Company operates INX.One, a comprehensive platform that serves as a single point of entry for both primary issuance of regulated security tokens and secondary market trading of these tokens, along with digital assets (cryptocurrencies) trading capabilities. This integrated approach allows the Company to offer a complete solution for tokenization and regulated trading of blockchain-based securities. The Company charges fees at a transaction level. The transaction fee is calculated based on volume and the value of the transaction. The transaction fee is collected from customers at the time the transaction is executed.

The Company operates in the digital asset segment, which includes the development and operation of integrated, regulated solutions for trading of blockchain assets, and providing services for products utilizing blockchain technology.

Until November 24, 2024, the Company also operated in the brokerage segment through ILSB, which facilitated financial transactions between financial institutions and offered a full range of brokerage services to several leading banking institutions. Following the sale agreement signed on August 29, 2024, this segment was sold on November 29, 2024. The segment's results until the sale date are presented as net income from discontinued operation in the statement of comprehensive income. For further information see note 4.

 ****

***INX Token***

As part of the Company's blockchain ecosystem, INX created the INX Token (the "INX Token"), and on August 20, 2020, the U.S Securities and Exchange Commission (the "SEC") acknowledged the effectiveness of the F-1 Registration Statement that was filed by INX with the SEC and declared the effectiveness of the initial public offering of INX Tokens ("The INX Token Offering" or "the Offering") pursuant to which INX offered up to 130 million INX Tokens at a price of $0.90 per INX Token.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS (Cont.)**

The INX Token was offered to the public on August 24, 2020, and closed on April 22, 2021, when the Offering was completed.

In July 2021, INX listed the INX Token for trading on the trading platform for "digital securities," i.e., digital assets that constitute securities under the applicable law, operated through INX's subsidiary, INX Securities, LLC (formerly the "INX Securities Trading Platform", rebranded as INX.One in 2022).

INX has not allocated for issuance and does not intend to issue 35 million of the 200 million INX Tokens that have been created. These tokens may be used to fund acquisitions, address regulatory requirements or fund the operations of INX if the Board of Directors of INX determines that INX has net cash balances sufficient to fund less than nine months of its operations. INX intends to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit dilution to INX Token holders. In addition, INX maintains 29.4 million INX Tokens in its treasury. As of December 31, 2025, the Company held approximately 57.9 million INX Tokens in aggregate.

Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the "Token Rights Amendment"), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale by INX of an INX Token (the "Adjusted Operating Cash Flow"). The distribution is based on INX's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than INX) holding INX Tokens as of March 31 of the following year on April 30th, commencing with the first distribution to be paid, if at all. As of December 31, 2025, the INX cumulative adjusted operating cash flow activity was negative, and therefore no distribution was paid on April 30, 2026.

Holders of INX Tokens are also entitled, at a minimum, to a 10% discount on the payment of transaction fees on the INX.One Trading Platform.

Following the Arrangement and as part of the transfer of ownership of INX, INX was obliged to distribute after Closing all of the cash and investments in the Reserve Fund in the amount of $34,325 to INX Token holders. As of December 31, 2025, $3,120 remained in INX's Reserve Fund pending distribution to eligible Token holders. Following completion of such pending distributions, the Reserve Fund shall have been fully distributed, and no assets will remain therein. For further information, see Note 5.

Subsequent to the reporting date, the Company distributed an additional amount of $199 to eligible Token holders

On February 15, 2026, subsequent to the reporting date, INX Token was delisted from trading on INX.One. All existing INX Token rights remain unchanged. See Note 22a for further information.

***Organizational Structure***

The Company operates through the following wholly owned subsidiaries:

● INX Digital, Inc. ("INXD"), a Delaware corporation, is registered in 49 US states plus Washington D.C. and Puerto Rico as a money transmitter to operate a trading platform for digital assets. INXD launched a digital asset trading platform on April 29, 2021, which was developed by INX and is operated by INXD. Select digital assets are supported for trading on the INXD platform, such as (identified by symbol): AVAXC , BTC , DOT , ETH , LTC, POL, PYUSD , SOL , TCS, USDC , USDT , XRP.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS (Cont.)**

● INX Securities, LLC (Previously named: Openfinance Securities, LLC) ("INXS"), a Pennsylvania limited liability company. INXS is recognized in the US as a SEC registered Broker Dealer and is an SEC registered Alternative Trading System ("ATS"). INXS was purchased by INX on May 10, 2021, as part of the Asset Purchase Agreement with Openfinance Holdings, Inc. and certain subsidiaries of Openfinance Holdings, Inc., dated January 12, 2021. After closing on the acquisition, the company's name was changed from Openfinance Securities, LLC to INX Securities, LLC. INXS offers investment in secondary market trading of security tokens previously registered with the SEC or offered under an applicable SEC exemption or a valid overseas exemption.

● Midgard Technologies Ltd. ("Midgard") is a company incorporated under the laws of the State of Israel. Midgard had served as the research and development arm of INX since November 1, 2020, and was acquired on April 1, 2021. Midgard provides software development, marketing and operations services for the group and holds certain intellectual property.

● INX Transfer Agent LLC (previously named TokenSoft LLC) ("INX Transfer Agent"), is a Delaware limited liability company. INX Transfer Agent is a transfer agent registered with the SEC and was acquired by INX pursuant to a purchase agreement dated December 28, 2021, for nominal consideration.

● INX Solutions Limited ("INX Solutions") was incorporated by INX in Gibraltar as a private company limited by shares. INX Solutions provided liquidity and risk management services to the group through the end of 2023.

The following subsidiaries are currently dormant:

● INX Digital Assets UK Limited (Previously named: ILSB UK Limited) ("INX UK"), a company incorporated under the laws of England and Wales. INX acquired all issued and outstanding shares of INX UK on July 13, 2021, from Mr. James Crossley, former board member of INX, in consideration for an inconsequential amount of cash.

● INX Global EU Ltd. ("INX GlobalEU"), a company incorporated under the laws of Cyprus. INX Services, Inc., a Delaware corporation.

 **

***Going Concern***

 **

The consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company has limited working capital, has incurred losses since its inception, has negative cash flows from operating activities, and has not yet generated material revenues from the sale of its products or services.

During the year ended December 31, 2025, the Company funded operations primarily through financing and intercompany arrangements. The ability of the Company to continue as a going concern is dependent on the Company generating cash from its operations, and/or obtaining debt financing. There can be no assurance the Company will be successful in these efforts.

These factors create substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES** 

The following accounting policies have been applied consistently in these consolidated financial statements for the periods presented, unless otherwise stated.

a. Basis of presentation of the financial statements:

These consolidated financial statements have been prepared in accordance with International Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Reporting Interpretations Committee ("IFRIC").

The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value.

b. Consolidated financial statements:

The consolidated financial statements comprise the financial statements of the Company and companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases.

The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the group. Significant intra group balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements.

c. Functional and presentation currencies:

&nbsp;&nbsp;&nbsp;&nbsp;1. Functional
 currency and presentation currency:

The consolidated financial statements are presented in U.S. Dollars.

The Company determines the functional currency of each entity through an analysis of the consideration factors identified in International Accounting Standard ("IAS") 21.

Assets, including fair value adjustments upon acquisition, and liabilities of an investee which is a foreign operation, are translated at the closing rate at each reporting date. Profit or loss items are translated at average exchange rates for all periods presented. The resulting translation differences are recognized in other comprehensive income (loss).

&nbsp;&nbsp;&nbsp;&nbsp;2. Transactions,
 assets and liabilities in foreign currency:

Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences, other than those capitalized to qualifying assets or accounted for as hedging transactions in equity, are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;3. Index-linked
 monetary items:

Monetary assets and liabilities linked to the changes in the Israeli Consumer Price Index ("Israeli CPI") are adjusted at the relevant index at each reporting date according to the terms of the agreement.

d. Use
of material estimates and judgements:

The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from those estimates.

Many aspects of the digital currency and blockchain industry have not yet been addressed by current IFRS guidance. The Company is required to make assumptions and judgments as to its accounting policies and the application thereof, which is disclosed in the notes to the consolidated financial statements. If specific guidance is enacted by the IASB in the future, the impact may result in changes to the Company's profit or loss and financial position as currently presented.

e. Financial instruments:

&nbsp;&nbsp;&nbsp;&nbsp;1. Financial
 assets, including short-term and long-term investments, and derivative assets, are initially
 recognized at fair value plus directly attributable transaction costs, except for financial
 assets measured at fair value through profit or loss in respect of which transaction costs
 are recorded in profit or loss.

The Company classifies and measures debt instruments in the financial statements based on the following criteria:

- The Company's business model for managing financial assets; and

- The contractual cash flow terms of the financial asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Debt
 instruments are measured at fair value through other comprehensive incomes when:

The Company's business model is to hold the financial assets in order to both collect their contractual cash flows and to sell the financial assets, and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, instruments in this category are measured at fair value. Gains or losses from fair value adjustments, excluding interest and exchange rate differences, are recognized in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Debt
 instruments are measured at fair value through profit or loss when:

A financial asset which is a debt instrument does not meet the criteria for measurement at amortized cost or at fair value through other comprehensive income. After initial recognition, the financial asset is measured at fair value and gains or losses from fair value adjustments are recognized in profit or loss.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;2. Loans
 and receivables are held to collect contractual cash flows and give rise to cash flows representing
 solely payments of principal and interest. These are measured subsequent to initial recognition
 at amortized cost.

Impairment of financial assets:

At the end of each reporting period, the Company evaluates the loss allowance for financial debt instruments which are not measured at fair value through profit or loss.

The Company has short-term financial assets such as trade receivables for which the Company applies the simplified approach to IFRS 9 and measures the loss allowance in an amount equal to the expected lifetime credit losses.

With regards to trade receivables, the Company grants its customers interest-free credit for periods of 30-90 days. As of December 31, 2025, and 2024, there were no material past-due accounts and no allowance for doubtful accounts was recorded.

&nbsp;&nbsp;&nbsp;&nbsp;3. Financial
 liabilities:

Financial liabilities are initially recognized at fair value. After initial recognition, the accounting treatment of financial liabilities is based on their classification as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Financial
 liabilities at amortized cost:

After the initial recognition, loans and other liabilities are measured based on their terms at amortized cost less directly attributable transaction costs using the effective interest method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Financial
 liabilities at fair value through profit or loss:

These liabilities include financial liabilities held for trading (including the INX Token warrant liability) and financial liabilities designated upon initial recognition as at fair value through profit or loss. Changes in the fair value of liabilities held for trading are recognized in profit or loss in financial expenses. Based on the terms of the INX Token, as described in Note 1, the INX Token is a hybrid financial instrument. The host instrument is financial liability due to the right of the INX Token holder to use the INX Token to pay transactions fees on the INX.One Trading Platform. The INX Token is considered a puttable instrument which is financial liability in accordance with IAS 32, Financial Instruments: Presentation.

INX's obligation to make a pro-rate distribution annually to the INX Token holders from INX's Adjusted Operating Cash Flow is an embedded derivative. The Company views INX's operating cash flows as a financial variable, and therefore, the embedded derivative requires bifurcation pursuant to IFRS 9. The Company elected, in accordance with IFRS 9, to designate the entire financial liability (including the embedded derivative) at fair value through profit and loss. Accordingly, the INX Token liability and the INX Token warrant liability are remeasured to fair value at the end of each reporting period.

The change in the fair value of the INX Token liability is attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, to the extent there are any which would be presented in other comprehensive income. The remaining amount of the change in the fair value of the INX Token liability would be presented in profit or loss. On December 31, 2025, the change in fair value of the INX Token liability is included in profit or loss. Should the INX Token be used to pay for services provided by INX, revenue would be recognized, and the respective portion of the INX Token liability would be derecognized. Additionally, the fair value of INX Tokens issued in consideration for services provided to the Company would be recognized as compensation expense when services are provided.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 202** **3**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

f. Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the assets or the liability principal market, or in the absence of a principal market, in the most advantageous market.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

Fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement.

The Company classifies the bases used to measure certain assets and liabilities at their fair value. Assets and liabilities carried or measured at fair value have been classified into three levels based upon a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The levels are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Significant inputs other than within Level 1 that are observable for the asset or liability, either directly (i.e.: as prices) or indirectly (i.e.: derived from prices);

Level 3: Inputs for the assets or liabilities that are not based on observable market data and require management assumptions or inputs from unobservable markets.

For details of the fair value of the INX Token liability, see Note 12. For the fair value of INX Token warrant liability, see Note 13. The fair values of current financial assets and financial liabilities, other than the INX Token and INX Token warrant liability, approximate their carrying amounts due to the short-term maturity of these instruments.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 202** **3**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

g. Investments:

Investments in equity securities, other than the investment in an associate, which are not held for trading, are accounted for as financial assets, which are initially recognized at fair value and subsequently measured at fair value through other comprehensive income (loss).

The Company's investment in an associate represents an ownership share in an entity in which the Company has significant influence and that is accounted for under the equity method in accordance with IAS 28 *Investments in Associates*. Under the equity method, the investment is presented at cost with the addition of post-acquisition changes in the Company's share of net assets, including other comprehensive income of the associate. Gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of interest in the associate.

Losses of an associate in amounts which exceed its equity are recognized by the Company to the extent of its investment in the associate plus any losses that the Company may incur as a result of its legal or constructive obligations on behalf of the associate.

The equity method is applied until the loss of significant influence or the classification of the investment as held for sale. On the date of loss of significant influence, the Company would measure any remaining investment in the associate at fair value and recognizes in profit or loss the difference between the fair value of any remaining investment plus any proceeds from the sale of the investment in the associate and the carrying amount of the investment on that date.

h. Digital assets:

Digital assets characterized as intangible assets (non-current assets):

From 2024, digital assets are not characterized as inventory and are classified as indefinite life intangible assets and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. An impairment loss is recognized if the carrying amount exceeds its fair value less cost of sale. The Company recorded impairment of digital assets in the amount of $65 and $12, for the year ended December 31, 2025, and 2024, respectively.

i. Intangible assets:

Intangible assets acquired in a business combination are measured at fair value at the acquisition date.

Intangible assets with a finite useful life are amortized on a straight-line basis over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year-end.

Intangible assets with indefinite useful lives are not systematically amortized and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted for prospectively as a change in the accounting estimate and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life.

j. Goodwill:

Goodwill is initially measured at cost which represents the excess of the acquisition consideration and the amount of non-controlling interests over the net identifiable assets acquired and liabilities assumed. If the resulting amount is negative, the acquirer recognizes the resulting gain on the acquisition date.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 202** **3**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

k. Impairment
of non-financial assets:

The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flow is allocated to the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss**.**

An impairment loss of an asset, other than goodwill, is reversed only if there have been changes in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss.

The following criteria are applied in assessing the impairment of these specific assets:

1. Goodwill:

The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is impairment.

Goodwill is tested for impairment by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated. An impairment loss is recognized if the recoverable amount of the cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is less than the carrying amount of the cash-generating unit (or group of cash-generating units). Any impairment loss is allocated first to goodwill. Impairment losses recognized on goodwill cannot be reversed in subsequent periods.

2. Intangible
 assets with an indefinite useful life that have not yet been systematically amortized:

The impairment test is performed annually, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment (see Note 10).

l. Revenue recognition:

The Company determines revenue recognition from contracts with customers through the following steps:

● Identification of the contract with the customer.

● Identification of performance obligations in the contract.

● Determination of transaction price.

● Allocation of the transaction price to the performance obligations in the contract; and

● Recognition of the revenue when, or as, the Company satisfies a performance obligation.

In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 202** **3**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

Transaction fees revenue includes revenue from transaction and trading fees charged to customers utilizing the Company's trading platform and are presented on net basis. The Company's service is comprised of a single performance obligation to provide a matching service when customers buy, sell, or convert digital assets. The Company does not control the digital asset being provided before it is transferred to the buyer, does not have inventory risk related to the digital asset, and is not responsible for the settlement of the digital asset. The Company also does not set the price for the digital asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase digital assets from another customer.

Transaction fees charged on the INX.One trading platform are recognized as revenue when the Company's obligation is satisfied, promised services are transferred to the customer and the customer obtains control. Brokerage fees revenue is recorded according to the date the service was provided, or the operation was carried out. Relevant to brokerage and transaction fees, contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, these contracts are defined at the transaction level and do not extend beyond the service already provided. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes).

Service revenue represents fees for technology consultation and advisory, as well as listing services performed by the Company under written agreements and is recognized upon the delivery of promised goods or services to the customer and when Company's performance obligation to the customer is satisfied. The revenue is recognized in an amount that reflects the fair value of the consideration to which the Company expects to be entitled to, upon completion of the Company's performance obligation for those services, as stated in the contract.

During 2023, the Company also recognizes revenue from buying and selling digital assets it owns. Such revenue is recognized in the gross amount of consideration received on sales less the cost of digital assets sold.

m. Share-based payment transactions:

Certain of the Company's employees and other service providers are entitled to compensation in the form of equity settled share-based payment. The cost of the transactions is measured at the fair value of the equity instruments granted at the grant date, using an appropriate valuation model, further details of which are provided in Note 17. The cost of share-based grants is recognized in profit or loss together with a corresponding increase in equity during the period during which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employee or service provider becomes entitled to the award (the "vesting period"). The cumulative expense is recognized at the end of each reporting period until the vesting period expires, reflecting the number of instruments that will ultimately vest at the end of the vesting period.

n. Research and development expenses:

Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company's intention to complete the intangible asset and use or sell it; the Company's ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company's ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2025, the Company has not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 202** **3**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 2: MATERIAL ACCOUNTING POLICIES (Cont.)**

o. Income taxes:

The consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying temporary differences that relate to each subsidiary. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities using the tax rates used enacted or substantively enacted at the reporting date. Deferred tax is provided using a liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized for deductible temporary differences and the carryforward of any unused tax losses. Deferred tax assets are recognized to the extent it is probable that taxable profit will be available against the deductible temporary differences and that the carryforward of unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted accordingly.

p. Net income (loss) per share:

Basic income (loss) per share is computed by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of Common Shares outstanding during the period. Diluted loss per share is computed by dividing the net income (loss) by the weighted average number of Common Shares outstanding, plus the weighted average number of Common Shares that would be issued on conversion of stock options and warrants.

**NOTE 3: NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS**

a. Amendments to
 existing standards effective during the year ended December 31, 2025.

 ****

***SAB122,* "*Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users*":**

SAB 122 cancels the guidance in SAB 121 which requires entities that had an obligation to safeguard customers' cryptocurrencies to record the liability in its statement of financial position with a corresponding asset measured at the fair value of the cryptocurrencies.

Under SAB 122, an entity is required to determine whether a liability for the risk of loss is to be recorded on the balance sheet by applying the guidance in IAS 37, "Provisions, Contingent Liabilities and Contingent Assets".

SAB 122 has been initially applied in 2025, with retrospective effect. The application of SAB122 resulted in derecognition as of December 31, 2024, of the asset Customer Funds and the corresponding liability in the amount of $6,555. The application of SAB 122 had no effect on the Company's profit or loss and its equity.

 ****

**b.** Accounting standards
 and amendments to existing standards that are not yet effective.

 ****

***IFRS 18, "Presentation and Disclosure in Financial Statements":***

In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".

IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.

IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.

IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit.

Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".

IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed. The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 4: DISCONTINUED OPERATION**

**a.** **I.L.S Brokers Ltd.** 

On August 27, 2024, the Company's Board of Directors approved the sale of ILSB, the Company's brokerage segment incorporated in Israel. On August 29, 2024 ("Sale Date"), the Company entered into a share sale agreement with the following key terms:

● Consideration: $4,450 plus ILSB's equity value at month-end preceding closing. Total consideration at closing was $5,265.

● A cash amount equal to 15% of the purchase price will be held back for a period of 12 months following the closing date to secure the indemnification and other payment obligations of the Company.

● Closing deadline: Within 3 months from Sale Date (November 29, 2024)

In accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations", revenues and expenses less income taxes that are attributable to the subsidiary are presented in the statement of comprehensive income, for all reported periods in the "Net income from discontinued operations" section.

Transaction cost related to the sale transaction amounts to $104.

**b.** Composition of the discontinued operation:

---

| | | |
|:---|:---|:---|
|  | **Eleven (11) months ended<br> November 30,**<br>**2024** | **Year ended<br> December 31,**<br>**2023** |
| Revenue from brokerage fees | $4456 | $4913 |
| Sales and marketing | (4) | (130) |
| General and administrative | (4309) | (4209) |
| **Income from operations** | 143 | 574 |
| Financial expenses, net | (77) | (59) |
| **Income (loss) before tax from discontinued operation** | 66 | 515 |
| Tax (expenses) income | 39 | (225) |
| **Net income (loss) from discontinued operation** | $105 | $290 |

---

**c.** Cashflow deriving from discontinued operation is as follows:

---

| | | |
|:---|:---|:---|
|  | **Eleven (11) months ended<br> November 30,**<br>**2024** | **Year ended<br> December 31,**<br>**2023** |
| Net cash provided by (used in) operating activities | $**(234)** | 709 |
| Net cash used in investing activities | $(1) | (9) |
| Net cash used in financing activities | $(80) | (83) |
| &nbsp;&nbsp;Net Cashflow | $(315) | 617 |

---

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 4: DISCONTINUED OPERATION (Cont.)**

---

| | |
|:---|:---|
|  | **November 30,<br> 2024** |
| Total consideration (\*) | $5265 |
| Net assets of discontinued operations&nbsp;&nbsp;&nbsp;&nbsp; | 3764 |
| Reclassification of translation differences | 356 |
| Gain from sale of discontinued operations | $1145 |

---

---

| | |
|:---|:---|
| (\*) | As of December 31, 2025 and 2024, the consideration is recorded as receivable from sale of subsidiary. The cash consideration of $4,423 was received during January 2025, while the 15% holdback in escrow was scheduled to be received after 12 months from the closing date. The escrow amount of $808 was released in January 2026. |

---

**NOTE 5: RESERVE FUND**

In connection with the INX Token Offering, INX committed to reserve 75% of the gross proceeds less payments to underwriters in excess of $25,000 as a "Reserve Fund". This fund is available to cover customers and INX's losses, if any, that result from cybersecurity breaches, theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses.

As of December 31, 2022, INX had segregated $36,023 as the Reserve Fund.

The following events have impact on the Reserve Fund:

In December 2023, a cyber-attack on third-party service provider computer system resulted a loss of $1,618 to one of the Company׳s subsidiaries. The Company immediately addressed the security vulnerability and implemented additional security measures designed to prevent such cyber-attack incidents in the future. The Reserve Fund was used to cover this loss, reducing its balance to $34,405 as of December 31, 2023.

In April 2024, a human error in the Company's trading platform execution led to a loss of $80. The Company promptly updated work procedures to prevent similar errors. This loss was also covered by the Reserve Fund, further reducing its balance to $34,325 as of December 31, 2024.

On July 13, 2021, INX's Board of Directors approved the Investment Policy of the Reserve Fund, which was amended on August 11, 2022. The Reserve Fund shall be invested as follows: minimum 15% in cash and bank deposits, up to 70% in U.S Treasury securities, up to 20% shall be invested in exchange traded funds and up to 50% in corporate bonds and other instruments with lowest investment grade rating of BBB.

As described in Note 1 regarding INX Token, as part of the transfer of ownership of INX, INX was obligated to distribute after Closing the balance of the Reserve Fund in the amount of $34,325. Of that amount $31,205 was distributed to INX Token holders after Closing. As of December 31, 2025, $3,120 remained in INX's Reserve Fund pending distribution to eligible holders and is recorded as a liability for Reserve Fund distribution. Following completion of such pending distributions, the Reserve Fund shall have been fully distributed, and no assets will remain therein.

The Reserve Fund is comprised of cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Cash and cash equivalents | $3120 | $14209 |
| Financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities |  | 2954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | - | 8848 |
| &nbsp;&nbsp;&nbsp;Total short-term investments | - | 11802 |
| &nbsp;&nbsp;&nbsp;Long-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds and loans (principally) – marketable investments | - | 8314 |
| &nbsp;&nbsp;&nbsp;Total long-term investments | - | 8314 |
| Total Reserve Fund | $3120 | $34325 |

---

(\*) Classified as Level 1 inputs in the fair value hierarchy.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 6: INVESTMENTS**

On December 31, 2025, and 2024, the Company held the following investments:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Financial assets are at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | $- | $2922 |
| &nbsp;&nbsp;&nbsp;Total short-term investments | - | 2922 |
| &nbsp;&nbsp;&nbsp;Long-term investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in private equity (\*\*) | 490 | 490 |
| &nbsp;&nbsp;&nbsp;Total long-term investments | 490 | 490 |
| Total investments | $490 | $3412 |

---

(\*) Classified as level 1 inputs in the fair value hierarchy.

(\*\*) Classified as level 3 inputs in the fair value hierarchy.

***Investments in Private Equity***

Investments in private equity are not traded in public markets and include Company's holdings in private companies under share purchase agreements and a simple agreement for future equity (SAFE), which entitles

the Company to receive common stock of the issuing companies at a future date.

As of December 31, 2025, INX holds investments in the following private companies:

● On March 20, 2021, the Company made an investment of $150 in a private company based in the United Kingdom. The share purchase agreement entitles the Company to receive 95,411 ordinary shares at a price of $1.57 per share.

● On September 9, 2021, the Company made an investment of $250 in a private company based in Gibraltar under a SAFE. The SAFE entitles the Company to receive the most senior class of shares issued by the company upon the completion of the qualified or non-qualified equity financing, as defined in the SAFE, at the SAFE conversion price.

● During 2023, the Company made an investment of $90 in a private company based in the United States, in return for preferred shares to be issued by the private company at the time of the closing in the amount of the investment, plus a warrant to purchase newly issued by the private company security tokens valued at $300 as of the date of the primary issuance at $0.01 per token. The preferred shares are convertible to security tokens.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 6: INVESTMENTS (Cont.)**

***Investment in Associate***

 ****

In June 2023, INX entered into a shareholders' and joint venture agreement ("SICPA Agreement"), whereby parties to the agreement have agreed to joint their expertise and collaborate to develop central bank digital currency solutions with the utilization of blockchain technology. Subsequently, for the purpose of executing joint objectives under the SICPA Agreement, the parties formed SICPA INX SA, subsequently renamed as NABATECH SA, ("Nabatech"), an entity organized under the laws of Switzerland. During the year ended December 31, 2024, the Company made the initial capitalization investment in Nabatech of $32 and owns 33 percent of the issued and outstanding share capital. In addition, INX entered into a service agreement with Nabatech to provide technological support and advisory services to the entity.

As of December 31, 2024, the Company recorded a loss on the investment in associates of $651, and a gain from foreign currency translation of $62. The Company's share in Nabatech's net loss is $1,186 in excess of the Company's investment amount. The excess amount is offset against the balance of prepaid expenses and other receivables.

As of December 31, 2025, the Company reassessed the receivables amount and decided to record a full credit loss provision of $1,838 on all outstanding balances with Nabatech. In addition, the Company offset all i׳s financial obligations in the amount of $1,207.

See Note 23b regarding the sale of its investment to SICPA in March 2026.

**NOTE 7: DIGITAL ASSETS**

The Company held the following digital assets as of December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
| **Coin Symbol** | **December 31, <br> 2025** | **December 31, <br> 2024** |
| BTC | $404 | $356 |
| USDC | 382 | 251 |
| ETH | 168 | 146 |
| AVAXC | 27 | 73 |
| USDT | 36 | 26 |
| LTC | 17 | 16 |
| ZEC | 3 | 3 |
| ZUSD | 5 |  |
| Other | 105 | 114 |
|  | $1147 | $985 |

---

(\*) Digital assets are classified as Level 2 in the fair value hierarchy, based on quoted prices in the principal market at 12:00 UTC.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 8: PREPAID EXPENSES AND OTHER RECEIVABLES**

As of December 31, 2025, and 2024, the Company's prepaid expenses and other receivables include the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Receivable from related parties | $- | $1417 |
| Prepaid expenses and advances to service providers | 316 | 548 |
| Receivable from government agencies | 346 | 365 |
| Other receivables | 327 | 96 |
|  | $989 | $2426 |

---

**NOTE 9: PROPERTY AND EQUIPMENT**

The following table presents activity of the Company's property and equipment during the years ended December 31, 2025, and 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Computers<br> and Software** | **Office Equipment<br> & Furniture** | **Leasehold<br> Improvements** | **Communication & Equipment** | **Total** |
| ***Property and equipment, at cost:*** | | | | | |
| Balance at January 1, 2024 | **208** | **105** | **105** | **154** | **572** |
| Additions | 19 |  |  | 1 | 20 |
| Adjustments arising from translating financial statements from functional currency to presentation currency | 2 |  |  |  | 2 |
| Deconsolidated subsidiary | (71) | (18) | - | (146) | (235) |
| Balance at December 31, 2024 | **158** | **87** | **105** | **9** | **359** |
| Additions | 14 |  |  |  | 14 |
| Disposal of fixed assets | (111) | (87) | (105) | (4) | (307) |
| **Balance at December 31, 2025** | **61** | **-** | **-** | **5** | **66** |
| ***Accumulated depreciation:*** |  |  |  |  |  |
| Balance at January 1, 2024 | **144** | **26** | **21** | **40** | **231** |
| Depreciation expense | 42 | 7 | 11 | 23 | 83 |
| Deconsolidated subsidiary | (64) | (16) | (2) | (58) | (140) |
| Balance at December 31, 2024 | **122** | **17** | **30** | **5** | **174** |
| Depreciation expense | 28 | 5 | 10 | 2 | 45 |
| Disposals | (111) | (22) | (40) | (4) | (177) |
| **Balance at December 31, 2025** | **39** | **-** | **-** | **3** | **42** |
| **Net assets at December 31, 2025** | $**22** | $**-** | $**-** | **2** | $**24** |
| **Net assets at December 31, 2024** | $**36** | $**70** | $**75** | $**4** | $**185** |

---

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 10: GOODWILL AND OTHER INTANGIBLE ASSETS**

a. The following table presents activity in goodwill and intangible assets during the years ended December 31, 2025, and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Trade<br> Name** | **Customer<br> Relationships** | **Licenses** | **Technology** | **Goodwill** | **Total** |
| **Intangible assets, at cost:** | | | | | | |
| Balance as of January 1, 2024 | **405** | **1693** | **1648** | **430** | **2253** | **6429** |
| Adjustments arising from translating financial statements from functional currency to presentation currency | (2) | (7) | (2) |  | (6) | (17) |
| Deconsolidated subsidiary | (403) | (1403) | (446) | - | (1230) | (3482) |
| **Balance as of December 31, 2024 and 2025** | **-** | **283** | **1200** | **430** | **1017** | **2930** |
| **<u>Accumulated amortization and impairment:</u>** |  |  |  |  |  |  |
| Balance as of January 1, 2024 | **101** | **348** | **-** | **430** | **-** | **879** |
| Amortization expense | 34 | 118 |  |  |  | 152 |
| Deconsolidated subsidiary | (135) | (466) | - | - | - | (601) |
| **Balance as of December 31, 2024** | **-** | **-** | **-** | **430** | **-** | **430** |
| Impairment | - | 283 | 1200 | - | 1017 | 2500 |
| **Balance as of December 31, 2025** | **-** | **-** | **-** | **-** | **-** | **-** |
| Net intangible assets at cost, at December 31, 2024 | - | 283 | 1200 | - | 1017 | 2500 |
| **Net intangible assets at cost, at December 31, 2025** | **-** | **-** | **-** |  | **-** | **-** |

---

b. Useful life of intangible
 assets:

The useful life of intangible assets is as follows:

---

| | | |
|:---|:---|:---|
|  | **Licenses** | &nbsp;&nbsp;**Customer<br> Relationships<br> INXS** |
| Useful life | Indefinite | &nbsp;&nbsp;Indefinite |
| Amortization method | Not amortized | &nbsp;&nbsp;Not amortized |

---

Licenses don't have a fixed term and do not require renewal. Consequently, licenses have an indefinite useful life.

c. Amortization
 and impairment expense:

Amortization of intangible assets of $152 for the year ended December 31, 2024, is recorded in profit or loss within General and administrative expenses.

During 2025, the Company recognized an impairment of goodwill and intangible assets of $2,500 as the assets are no longer expected to generate future economic benefits or sufficient cash flows.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 11: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES**

a. Activity
 with respect to right-of-use assets:

The Company has entered into agreements to lease office spaces which are used for the Company's operations. Lease of office space has a lease term of 5 years ending December 31, 2025.

On June 19, 2023, the Company entered into an office space sublease agreement with a third party. The agreement terminates on May 31, 2024, and provides for a monthly lease payment of $18.

In November 2025 the Company entered into a new agreement for a period of 6 months starting January 1, 2026, to lease office spaces which are used for the Company's operations for a monthly lease payment of $15.

---

| | |
|:---|:---|
|  | **Land and<br> Buildings** |
| ***Right-of-use-assets, at cost:*** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of January 1, 2024 | $1338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions during the year: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deconsolidated subsidiary | (625) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments arising from translating financial statements from functional currency to presentation currency | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;CPI and revaluation differences | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of December 31, 2024 | 725 |
| ***Accumulated depreciation:*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of January 1, 2024 | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deconsolidated subsidiary | (381) |
| Balance as of December 31, 2024 | 502 |
| **Right-of-use assets as of December 31, 2024, net** | $**223** |
| ***Right-of-use-assets, at cost:*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of January 1, 2025 | $725 |
| &nbsp;&nbsp;&nbsp;&nbsp;CPI and revaluation differences | 2 |
| Balance as of December 31, 2025 | 727 |
| ***Accumulated depreciation:*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of January 1, 2025 | 502 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 225 |
| Balance as of December 31, 2025 | 727 |
| **Right-of-use assets as of December 31, 2025, net** | $**-** |

---

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 11: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont.)**

b. Activity with respect to the lease liability:

---

| | |
|:---|:---|
|  | **Land and<br> Buildings** |
| Lease liability, January 1, 2024 | $869 |
| Changes during the year: |  |
| &nbsp;&nbsp;&nbsp;Lease payments | (435) |
| &nbsp;&nbsp;&nbsp;Interest expense | 67 |
| &nbsp;&nbsp;&nbsp;Lease modification | (10) |
| &nbsp;&nbsp;&nbsp;CPI and revaluation differences | 67 |
| &nbsp;&nbsp;&nbsp;Decrease from sale of subsidiary | (263) |
| **Lease liability, December 31, 2024** | $**228** |
| Current lease liability, December 31, 2024 | $228 |
| Non-current lease liability, December 31, 2024 | $- |
| Lease liability, January 1, 2025 | $228 |
| Changes during the year: |  |
| &nbsp;&nbsp;&nbsp;Lease payments | (260) |
| &nbsp;&nbsp;&nbsp;Interest expense | 17 |
| &nbsp;&nbsp;&nbsp;CPI and revaluation differences | 15 |
| &nbsp;&nbsp;&nbsp;Decrease from sale of subsidiary |  |
| **Lease liability, December 31, 2025** | $**-** |
| Current lease liability, December 31, 2025 | $- |
| Non-current lease liability, December 31, 2025 | $- |

---

N**OTE 12: INX TOKEN LIABILITY**

The INX Token is a hybrid financial instrument and is accounted for as a financial liability. The number of INX Tokens that the Company has issued as of December 31, 2025, and December 31, 2024, or has an obligation to issue is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31,<br> 2024** |
| Total number of INX Tokens | 142696001 | 135959320 |
| INX Token liability | $24258 | $25833 |

---

During the year ended on December 31, 2025, the Company granted 250,000 INX Token issued for a total consideration of $13 to a former employee, 250,000 INX Token to a service provider and an advisor and recorded a corresponding expense of $82. Additionally, 6,813,680 INX Token warrants were exercised on a cashless basis.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 12: INX TOKEN LIABILITY (Cont.)**

On September 19, 2024, the Board renewed its authorization from August 9, 2023, authorizing the management to repurchase INX Tokens (the "Repurchased Tokens") from their holders as the management deems required or desirable for the benefit of INX, provided that the aggregate purchase amount of Repurchased Tokens and Company's common shares repurchased through September 18, 2025, will not exceed $5,000. Such repurchase shall be subject to the provisions of any applicable laws and regulations, and to the advice of the Company's legal advisors.

The share and INX Tokens repurchase program expired on September 18, 2025 and was not renewed.

As of December 31, 2025, there were no repurchases of the INX Tokens by the Company.

The fair value of INX Tokens free of, or subject to lock-up agreements and the discount rates applied as of December 31, 2025, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Discount <br> rate** | **Number of<br> INX Tokens** | **Total fair<br> value** |
| Not subject to lock-up | 0% | 142696001 | $24258 |

---

The fair value of INX Tokens free of, or subject to lock-up agreements and the discount rates applied as of December 31, 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Discount <br> rate** | **Number of<br> INX Tokens** | **Total fair <br> value** |
| Not subject to lock-up | 0% | 135959320 | $25833 |

---

The fair value per INX Token as of December 31, 2025, and 2024, for tokens that are not subject to lock-up agreement was $0.17 and $0.19 respectively, based on the closing market price. The level in the fair value hierarchy is level 1.

For the years ended December 31, 2025, and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized gain of $3,495 and $28,394, respectively, which was recorded in profit or loss.

The changes in the fair value of the INX Token liability are attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, are immaterial for all reported periods and therefore no amounts have been included in other comprehensive income with respect to the credit risk.

**NOTE 13: INX TOKEN WARRANT LIABILITY**

The Company grants restricted INX Token awards ("RTA") or INX Token warrants to directors, advisors, employees or service providers as compensation. The warrant grantees have a right to purchase INX Tokens upon the completion of the term set forth in each warrant agreement. As of December 31, 2025, and 2024, directors, advisors, employees and service providers held 0 and 8,116,958 restricted INX Tokens or INX Token warrants, as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| INX Token warrant liability: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants granted to employees, advisors and service providers | $- | $660 |

---

The liability related to INX Token warrants is presented at fair value based on the below inputs. The level in the fair value hierarchy is level 3.

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 13: INX TOKEN WARRANT LIABILITY (Cont.)**

The following table lists the inputs to the Black-Scholes pricing model used for the fair value measurement of INX Token warrants:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Expected volatility of the token prices (%) | 95.85%-118.72 | 96.95%-129.38 |
| Risk-free interest rate (%) | 3.57%-4.41 | 4.16%-4.58 |
| Expected life of warrant (years) | 0.17-10.00 | 0.50-10.00 |
| Exercise price | $0.01-$2.81 | $0.01-$2.81 |

---

The following table presents changes in the number of INX Token warrants and restricted INX Token awards during the years ended December 31, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Number of<br> tokens** | **Weighted<br> average<br> exercise<br> price** | **Number of<br> tokens** | **Weighted<br> average<br> exercise<br> price** |
| INX Token warrants outstanding at beginning of year | 8116958 | $0.24 | 5574292 | $0.33 |
| INX Token warrants granted during the year(\*) | 4430028 | 0.10 | 4030000 | 0.11 |
| INX Token warrants canceled during the year(\*) | (4892994) | 0.32 |  |  |
| INX Token warrants forfeited during the year | (840314) | 0.15 | (854334) | 0.37 |
| INX Token warrants expired during the year |  |  | (244666) | 0.07 |
| INX Token warrants exercised (INX Token issued) and INX Tokens vested during the year | (6813678) | 0.00 | (388334) | 0.00 |
| INX Token warrants outstanding at the end of year | - | $- | 8116958 | $0.24 |
| INX Token warrants exercisable at the end of year | - | $&nbsp;&nbsp;&nbsp;&nbsp; - | 3126000 | $0.26 |

---

---

| | |
|:---|:---|
| (\*) | On February 27, 2025, the Board approved the cancellation of 2,386,000 token warrants previously granted by INX Limited to some of the Company's employees and service providers. On the same date, the BOD approved to grant 1,599,076 token warrants if exercised or vested in accordance with its terms, will entitle the holder to purchase INX Tokens pursuant to the Share and Token Ownership and Award Plan (2021) of INX Limited, with any unspecified terms and conditions to be governed by the Plan. On August 4, 2025, the Board approved the cancellation of additional 2,479,202 token warrants previously granted by INX Limited to some of the Company's employees and service providers. On the same date, the BOD approved to grant of 2,170,000 token warrants if exercised or vested in accordance with its terms, will entitle the holder to purchase INX Tokens pursuant to the Share and Token Ownership and Award Plan (2021) of INX Limited, with any unspecified terms and conditions to be governed by the Plan. |

---

**INX LIMITED**

**NOTES TO** **CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 13: INX TOKEN WARRANT LIABILITY (Cont.)**

Token-based compensation for the years ended December 31, 2025, 2024 and 2023 is included within the following expenses:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| **Operating expenses (income):** |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | $169 | $60 | $166 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 38 | 30 | 268 |
| &nbsp;&nbsp;&nbsp;General and administrative | 430 | 372 | 464 |
| &nbsp;&nbsp;&nbsp;Change in fair value of INX Token warrant liability | 528 | (936) | (204) |
| **Total token-based compensation expense (income)** | $**1165** | $**(474)** | $**694** |

---

**NOTE 14: RELATED PARTIES**

The Company's related parties include its subsidiaries, associates and service providers over which the Company exercises significant influence, and key management personnel. Key management personnel are those people who have the authority and responsibility, directing and controlling the activities of the Company, directly and indirectly. Key management personnel include officers, directors and companies controlled by officers and directors.

*Service Agreement with Nabatech*

Effective on January 1, 2023, as part of the joint venture SICPA Agreement, the Company entered into a service agreement with Nabatech, under which it provides technology support and advisory services to Nabatech, an entity formed for the development of central bank digital currency solutions with the utilization of blockchain technology, and in which the Company holds 33 percent ownership.

During the year ended December 31, 2025, and 2024, the Company recognized service revenue of $0 and $871, respectively, and cost of services of $0 and $836, respectively, for providing services to Nabatech. Prepaid expenses and other receivables include $0 and $605 due from Nabatech as of December 31, 2025, and 2024, respectively.

As of December 31, 2025, the Company reassessed the receivables amount and decided to record a full credit loss provision of $1,838 thousand on all outstanding balances with Nabatech. In addition, the Company offset all it׳s financial obligations by the amount of $1,207.

The following balances are held with or by related parties as of December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2025** | **2024** |
| Assets: |  |  |
| Prepaid expenses and other receivables | $- | $1417 |
| Total | $**-** | $**1417** |
| <u>Liabilities:</u> |  |  |
| Accounts payable and accrued expenses | 136 | 242 |
| INX Token liability | 67 | 2423 |
| INX Token warrant liability | - | 464 |
| Total | $**203** | $**3129** |

---

 

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 14: RELATED PARTIES (Cont.)**

Revenue and expense items recognized in transactions with related parties during the years ended December 31, 2025, and 2024 mainly include service revenue earned from Nabatech, and compensation provided to key management personnel and directors, as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| Service revenue | $- | $863 | $976 |
|  | $- | $863 | $976 |
| Cost of service: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | - | 226 | 226 |
|  | $- | $226 | $226 |
| Research and Development: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $592 | $263 | 234 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 11 | 24 | 190 |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | - | 34 | 41 |
|  | $603 | $321 | $465 |
| Sales and marketing: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 203 | 167 |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 76 | 37 |  |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | 23 | 14 | - |
|  | $302 | $218 | $- |
| General and administrative: |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 2912 | 2760 | 2934 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 204 | 884 | 1702 |
| &nbsp;&nbsp;&nbsp;INX Token-based compensation | 139 | 296 | 396 |
|  | $3255 | $3940 | $5032 |
| Total compensation and benefits | $4160 | $4705 | $5723 |
| Reserve Fund distribution | $3173 | $- | $- |
| Change in fair value of INX Token and warrant liabilities | $1135 | $(2943) | $(830) |

---

Each of the Company's independent directors receives a monthly fee of $4 for the term of the engagement. In addition, each independent director receives $1 in consideration for participation in a committee meeting of the Board. Further, each independent director is entitled to receive an option to purchase 3,500 INX Tokens each month at an exercise price equal to the fair market value of the INX Token at the date of the grant. The warrants expire 10 years after the date of the grant.

On November 30, 2022, the Company committed to grant, and subsequently issued, options to its independent directors to purchase 928,399 Common Shares of the Company at CAD 0.165 ($0.12), a price per share equal to the fair value per share at the date of the commitment to grant the options. 397,886 options vest immediately on the date of the grant and remaining 530,514 options shall vest over the period of over 2 to 3 years with the first anniversary on November 30, 2023, and with all options fully vested on November 30, 2025.

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 15: EQUITY**

Composition of share capital:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31** | **December 31** | **December 31** | **December 31** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** |
|  | **Authorized** | **Issued and<br> outstanding** | **Authorized** | **Issued and<br> outstanding** |
| Ordinary shares with 0.01 GBP par value per share | 100000000 | 47635875 | 100000000 | 47635875 |

---

*Private Placement*

As part of the Transaction (see Note 1), on January 10, 2022, the Company completed a private placement of 31,680,000 INX subscription receipts (units) for gross proceeds of $31,283. Each unit consists of one Ordinary share and one-half of one Ordinary share purchase warrant exercisable for two years at an exercise price of CAD1.88 ($1.49) per share. As the exercise price of the warrants is denominated in CAD while the functional currency of the Company is the U.S. Dollar, the warrants are accounted for as a derivative liability.

The warrants were valued at $4,255 as of the date of the private placement. The balance of gross proceeds from the private placement in the amount of $27,028 was allocated to ordinary shares with the addition to equity of $25,336, net of the issuance cost of $1,692.

Agents of the private placement collectively received cash commissions of $1,951, of which $259 was allocated to the warrants and remaining amount was recorded as transaction fees in profit or loss.

The placement agents also received 1,810,740 agent compensation options exercised into one common share of the Parent Company at an exercise price of CAD1.25 ($0.99). The options were valued at $515.

As a result of the Transaction (see Note 1), effective on January 10, 2022, options granted and warrants issued by INX prior to such date were surrendered and cancelled, and new options and warrants of the Parent Company were issued to holders with equivalent terms, adjusted for the Exchange Ratio, as defined under the agreement. Upon the cancellation of the private placement warrants, the warrant liability in the amount of $4,255 was derecognized and recorded as a contribution to equity.

*Composition of other comprehensive income (loss) (OCI):*

---

| | | | |
|:---|:---|:---|:---|
|  | **Reserve from<br> financial assets<br> measured<br> at fair value<br> through OCI** | **Gain (loss)<br> on foreign<br> currency translation** | **Total** |
| **Balance as of December 31, 2022** | $**(929)** | $**(325)** | $**(1254)** |
| Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 77 |  | 77 |
| Unrealized gain on available-for-sale securities | 1086 |  | 1086 |
| Foreign currency translation | - | (53) | (53) |
| **Balance as of December 31, 2023** | $**234** | $**(378)** | $**(144)** |
| Realized loss on available-for sale securities reclassification adjustment into net income (loss) | (265) |  | (265) |
| Unrealized gain on available-for-sale securities | 600 |  | 600 |
| Foreign currency translation |  | 44 | 44 |
| Reclassification on sale of subsidiary | - | 356 | 356 |
| **Balance as of December 31, 2024** | $**569** | **22** | **591** |
| Realized loss on available-for sale securities reclassification adjustment into net income (loss) | (710) |  | (710) |
| Unrealized gain on available-for-sale securities | 141 |  | 141 |
| Foreign currency translation | - | (22) | (22) |
| **Balance as of December 31, 2025** | $**-** | **-** | **-** |

---

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 16: SHARE-BASED PAYMENT** 

a. Shares reserved
 for Employee Stock Option Plan of Parent Company:

INX's board of directors adopted the INX Limited Share Ownership and Award Plan (2021) on February 22, 2021, as amended from time to time (the "Share Ownership and Award Plan" or the "INX Plan"), and INX shareholders approved the INX Plan on March 18, 2021.

In connection with the Transaction (see Note1), the INX Plan was terminated and replaced by the Parent Company Omnibus Equity Incentive Compensation Plan (the "Plan"). The Plan provides for grants of options to purchase the Parent Company's common shares and restricted share units to employees, directors and service providers of the Company. The Plan includes U.S. and Israeli appendices that further specify the terms and conditions of grants of options and restricted share units to such grantees.

Upon closing of the Transaction, Awards granted pursuant to the INX Plan were exchanged for equivalent awards under the Plan. As of closing of the Transaction, 25,352,832 common shares of the Parent Company were authorized for issuance pursuant to the Plan.

On June 27, 2025, the Parent Company shareholders approved further increase of the common shares reserved for the purpose of the Plan. Subject to certain capitalization adjustments, the aggregate number of common shares that may be issued pursuant to share awards under the Plan may not exceed 49,192,357 common shares of the Parent Company.

b. During the years ended December 31, 2025, and 2024, the activity related to stock options under the Plan was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Number of<br> Stock Options** | **Weighted average<br> exercise price** | **Number of<br> Stock Options** | **Weighted average<br> exercise price** |
| Balance as of January 1 | 31636487 | 0.45 | 27775946 | $0.46 |
| Granted | 100000 | 0.06 | 13826046 | 0.09 |
| Forfeited | (12395523) | 0.68 | (7065822) | 0.44 |
| Exercised | (19340964) | 0.10 | (2899683) | 0.05 |
| Balance as of December 31 | - | - | 31636487 | $0.45 |
| Stock options exercisable at the end of year | - | - | 11551492 | $0.59 |

---

The weighted average fair value of the options granted during the years ended December 31, 2025, and 2024, based on the exercise price as of the grant date, was $0.18 and $0.09 per option, respectively.

Upon closing of the Arrangement (as described in note 1) options which were in the money were accelerated resulting in the Company recording $271 share-based compensation expenses in 2025.

c. The table below summarizes the assumptions that were used to estimate the fair value of the above options
granted under the Plan using the Black- Scholes option pricing model:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Expected term (years) | 10 | 10 |
| Expected volatility | 160% | 87.40% -101.50 |
| Exercise price | $0.00-0.12 | $0.07-0.30 |
| Risk-free interest rate | 4.5% | 3.142% -3.609 |
| Dividend yield |  |  |

---

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 16: SHARE-BASED PAYMENT (Cont.)**

d. Share
 options and restricted stock of the Parent Company granted to employees, directors and service
 providers under the Plan during the years ending on December 31, 2025, and 2024:

&nbsp;&nbsp;&nbsp;&nbsp;1. On January 8, 2024, a key officer, through his wholly owned entity, was awarded 2,337,212 restricted share units. All shares shall fully vest on January 8, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;2. On January 8, 2024, the Company committed to grant options to each of its five independent directors to purchase 467,442 common shares (total of 2,337,210) of the Company at CAD 0.30 ($0.23), a price per share equal to the fair value per share at the date of the commitment to grant the options. Options shall vest evenly over the period of over 4 years, commencing as of the later of: (i) the date in which the independent director commenced to serve as the board member; and (ii) January 10, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;3. On January 8, 2024, the Company granted certain employees and a service provider option to purchase 1,519,388 common shares of the Company at a price per share equal to the fair value per share at the effective date of the grant at a price of CAD 0.30 ($0.22), with the vesting period over 4 years.

&nbsp;&nbsp;&nbsp;&nbsp;4. On May 26, 2024, the Company granted certain employees and a service provider option to purchase 4,477,694 common shares of the Company at a price per share equal to the fair value per share at the effective date of the grant at a price of CAD 0.1 ($0.074), with the vesting period over 4 years.

&nbsp;&nbsp;&nbsp;&nbsp;5. On May 26, 2024, a key officer, through his wholly owned entity, was awarded 471,336 restricted share units. All shares shall fully vest on May 26, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;6. On December 17, 2024, the Company granted certain employees and a service provider option to purchase 434,000 common shares of the Company at a price per share equal to the fair value per share at the effective date of the grant at a price of CAD 0.07 ($0.052), with the vesting period over 4 years.

&nbsp;&nbsp;&nbsp;&nbsp;7. On December 17, 2024, certain employees, directors and service providers received 2,249,206 restricted common share units of the Company on a cashless basis. Restricted share units shall vest over the period of 4 years, and all shares fully vested on December 17, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;8. On April 29, 2025, the Company granted to a service provider an option to purchase 50,000 common shares of the Company at the price equal to the fair value per share at the effective date of the grant at a price of CAD 0.15, with a vesting period over 4 years.

&nbsp;&nbsp;&nbsp;&nbsp;9. On April 29, 2025, the Company granted to an employee 50,000 RSU׳s of the Company with vesting period over 4 years.

e. For the years ended December 31, 2025, 2024 and 2023, the Company recorded share-based compensation expense of $328, $1,212 and $2,724, respectively, related to stock options and restricted stock units granted under the Plan.

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 17: INCOME (LOSS) PER SHARE** 

**Earnings (loss) per share, basic and diluted**

The net income (loss) and weighted average number of common shares used in the calculation of basic income (loss) per share are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| Net income (loss) from continuing operations used in the calculation of earnings (loss) per share, diluted | $(51223) | $19647 | $(12055) |
| Net income (loss) from discontinued operation used in the calculation of earnings (loss) per share, diluted | $(34) | $1250 | $290 |
| Weighted average number of Ordinary Shares for the purposes of earnings (loss) per share, basic and diluted | 47635875 | 47635875 | 47635875 |

---

**NOTE 18: FINANCIAL RISKS AND RISK MANAGEMENT**

*Financial risk management objectives and policies*

Activities of the Company may expose it to a variety of financial and related risks: credit risk, market risk, liquidity risk, digital asset risk, loss of access risk, irrevocability of transactions, and regulatory oversight risk, among others. The Company seeks to mitigate potential adverse effects of these risks on performance and the Company's financial position by employing experienced personnel, monitoring market events, maintaining sufficient liquidity, implementing appropriate policies and procedures addressing significant financial risks and diversifying the Company's business strategy within the constraints of the Company's objectives.

*Credit risk* 

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company's cash and cash equivalents, investments and digital assets are exposed to credit risk. The Company limits its credit risk by placing its assets with high credit quality banks, financial institutions and digital assets custodians that are believed to have sufficient capital to meet their obligations. While the Company intends to only transact with counterparties that it believes to be creditworthy there can be no assurance that a counterparty will not default and that the Company will not sustain a material loss as a result. It is the Company's policy to monitor the creditworthiness of its counterparties and to minimize the concentration of credit risk to mitigate significant loss caused by potential counterparty's failure.

 

*Market risk* 

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to also market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

*Liquidity risk* 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due, as well as the risk of not being able to liquidate invested assets at reasonable prices. The Company manages liquidity risk by maintaining sufficient cash balances and investing capital reserves in highly rated, marketable financial instruments that allow meeting liquidity obligations in the ordinary course of business as well as under increased liquidity demands.

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 18: FINANCIAL RISKS AND RISK MANAGEMENT (Cont.)**

*Foreign currency risk*

Foreign currency risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate as a result of changes in foreign currency exchange rates. The Company's exposure to foreign currency risk relates primarily to the Company's continuing operation (when revenue or expense is recognized in a different currency from the Company's presentation currency). As of December 31, 2025, and 2024, management's estimate of the Company's exposure related to the price fluctuation in foreign currency is not material.

*Geopolitical risk*

Significant portion of Company's operations and management is based in Israel. On October 7, 2023, Hamas launched an attack on Israel and a war started. On February 28, 2026, a joint offensive by Israel and the United States, named 'Roaring Lion,' was launched against Iranian government targets with the aim of degrading Iran's nuclear and ballistic missile capabilities. As of the date of issuance of the consolidated financial statements, there has been no interruption or adverse impact on the Company's business activities resulting from the war. The Company maintains a comprehensive business continuity plan and has taken necessary steps in line with such a plan, in an effort to ensure that operations and service to customers remain consistent.

**NOTE 19: OPERATING SEGMENTS**

a. Reportable
 segments represent the two lines of business for which the Company expects to earn income,
 incur costs and allocate resources. Operating segments are identified based on information
 that is reviewed by the chief operating decision maker ("CODM") and senior management
 to make decisions about resources to be allocated and assess operational and financial performance.
 Accordingly, for management purposes, the Company is organized into operating segments as
 follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Digital
 assets segment - development and operation of an integrated, regulated solutions for trading
 of blockchain assets, and providing related services for products utilizing blockchain technology.

&nbsp;&nbsp;&nbsp;&nbsp;2. Brokerage
 segment - Until November 29, 2024, the Company also operated in the brokerage segment through
 ILSB, which facilitated financial transactions between financial institutions and offered
 a full range of brokerage services to several leading banking institutions. Following the
 sale agreement signed on August 29, 2024, this segment was sold on November 29, 2024. The
 segment's results until the sale date are presented as net income from discontinued operation
 in the statement of comprehensive income.

b. Revenue
 based on geographic locations:

Revenue reported in the financial statements are attributed to countries based on the location of the customers, as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| **Digital Asset Segment:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Switzerland | $- | $871 | $976 |
| &nbsp;&nbsp;&nbsp;United States | $159 | $231 | $149 |
| &nbsp;&nbsp;&nbsp;United Kingdom | $34 | $56 | $4 |
| &nbsp;&nbsp;&nbsp;Japan | $51 | $44 | $107 |
| &nbsp;&nbsp;&nbsp;State of Israel | $16 | $16 | $21 |
| &nbsp;&nbsp;&nbsp;Gibraltar | $5 | $- | $11380 |
| &nbsp;&nbsp;&nbsp;South Korea | $25 | $20 | $37 |
| &nbsp;&nbsp;&nbsp;Other | $28 | $55 | $114 |

---

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 19: OPERATING SEGMENTS (Cont.)**

c. Revenue from major customers:

Revenue from major customers which account for 10 percent or more of total revenue as reported in the financial statements:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2025** | **2024** | **2023** |
| Customer A (\*) | $- | $659 | $976 |

---

(\*) See note 14 - Related parties

**NOTE 20: EMPLOYEE BENEFITS EXPENSE**

Share-based and token-based compensation, and short-term employee benefits included in consolidated statements of comprehensive income (loss) are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Cost of service |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $- | $584 | 505 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  |  |  |
| &nbsp;&nbsp;&nbsp;Token-based compensation | - | - | - |
|  | $- | $584 | 505 |
| Research and development |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $2989 | $2146 | 2053 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 53 | 191 | 400 |
| &nbsp;&nbsp;&nbsp;Token-based compensation | 169 | 60 | 166 |
|  | $3211 | $2397 | 2619 |
| Sales and marketing |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $1070 | $1769 | 1637 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | (17) | 98 | 443 |
| &nbsp;&nbsp;&nbsp;Token-based compensation | 38 | 30 | 268 |
|  | $1091 | $1897 | 2348 |
| General and administrative |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | $3587 | $2617 | 3036 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 292 | 922 | 1882 |
| &nbsp;&nbsp;&nbsp;Token-based compensation | 430 | 372 | 464 |
|  | $4309 | $3911 | 5382 |

---

During the years ended December 31, 2025, and 2024, the Company incurred costs of $760 and $707, respectively, related to contributions to employee post-retirement benefit plans.

**INX LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 2025, 2024, AND 2023**

**U.S. Dollars in thousands (except share, token, per share and per token data)**

**NOTE 21: TAXES ON INCOME**

The Company is a Canadian corporation for Canadian tax purposes and as such subject to British of Columbia taxes. Subsidiary entities are generally subject to taxes in the jurisdictions where they are located or have the majority of operations and management control, therefore federal income taxes are calculated as if the Company filed separate federal income tax returns. The following tax rates were applicable to the individual entities based on the country of their organization:

● Israel corporate income tax rate – 23 percent in 2025, 2024 and 2023

● United States federal weighted tax rate - 21 percent (30.8 percent state weighted tax rate)

● Gibraltar tax rate - 12.5 percent and 10 percent before August 1, 2021.

a. Carryforward
 losses for tax purposes and other temporary differences:

Carryforward operating tax losses of the Group total approximately $81,256 as of December 31, 2025. Deferred tax assets relating to these losses and to other deductible temporary differences were not recognized because their utilization in the foreseeable future is not probable.

b. Theoretical
 tax:

As the Company and its subsidiaries incurred operating losses during the years ended December 31, 2025 and 2024 for which deferred income taxes were not recorded, as mentioned in Note 22a, the reconciliation between the tax expense, assuming that all the income and expenses, gains and losses in the statement of income were taxed at the statutory tax rate, and the taxes on income recorded in profit or loss, does not provide significant information and therefore is not presented.

**NOTE 22: SUBSEQUENT EVENTS**

a. On
 February 15, 2026, the Company delisted the INX Token from the INX One trading platform. 
 This decision was made following a strategic internal review of the Company's offerings,
 administrative requirements and other related factors. As a result of the delisting, the
 INX Token is no longer available for secondary market trading on the Company's platform.
 The Company continues to recognize the rights of INX Token holders pursuant to the terms
 of the INX Token Purchase Agreement. The Company cannot provide assurance that an alternative
 trading venue will develop or be maintained, which may limit the ability of holders to divest
 their positions.

b. On March 31, 2026, the Company sold its 33% interest in Nabatech (see note 6) to SICPA for $500, which was received on April 1, 2026.

## Exhibit 4.31

**Exhibit 4.31** 

**Execution Version**

**THE INX DIGITAL COMPANY, INC.**

**And**

**OPENDEAL INC. (DBA REPUBLIC)**

**And**

**REPUBLIC STRATEGIC ACQUISITION CO LLC**

**ARRANGEMENT AGREEMENT**

**April 3, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **ARTICLE 1 INTERPRETATION** | **ARTICLE 1 INTERPRETATION** | 1 |
| &nbsp;&nbsp;&nbsp;1.1 | Defined Terms | 1 |
| &nbsp;&nbsp;&nbsp;1.2 | Certain Rules of Interpretation | 14 |
| &nbsp;&nbsp;&nbsp;1.3 | Schedules | 15 |
| **ARTICLE 2 THE ARRANGEMENT** | **ARTICLE 2 THE ARRANGEMENT** | 16 |
| &nbsp;&nbsp;&nbsp;2.1 | Arrangement | 16 |
| &nbsp;&nbsp;&nbsp;2.2 | Interim Order | 16 |
| &nbsp;&nbsp;&nbsp;2.3 | News Release and Meeting | 17 |
| &nbsp;&nbsp;&nbsp;2.4 | The Circular | 19 |
| &nbsp;&nbsp;&nbsp;2.5 | Final Order | 20 |
| &nbsp;&nbsp;&nbsp;2.6 | Court Proceedings | 21 |
| &nbsp;&nbsp;&nbsp;2.7 | INX Tokens | 21 |
| &nbsp;&nbsp;&nbsp;2.8 | Escrow Event | 22 |
| &nbsp;&nbsp;&nbsp;2.9 | Effective Date | 23 |
| &nbsp;&nbsp;&nbsp;2.10 | Payment of Cash Consideration | 23 |
| &nbsp;&nbsp;&nbsp;2.11 | Adjustment of Cash Consideration | 24 |
| &nbsp;&nbsp;&nbsp;2.12 | Treatment of Incentive Securities | 24 |
| &nbsp;&nbsp;&nbsp;2.13 | Withholding Rights | 24 |
| &nbsp;&nbsp;&nbsp;2.14 | Securityholder Lists | 25 |
| &nbsp;&nbsp;&nbsp;2.15 | Contingent Value Rights, CVR Agent and the CVR Representatives | 25 |
| &nbsp;&nbsp;&nbsp;2.16 | Efforts | 28 |
| &nbsp;&nbsp;&nbsp;2.17 | CVR Payment Procedures | 28 |
| **ARTICLE 3 REPRESENTATIONS AND WARRANTIES** | **ARTICLE 3 REPRESENTATIONS AND WARRANTIES** | 29 |
| &nbsp;&nbsp;&nbsp;3.1 | Representations and Warranties of the Corporation | 29 |
| &nbsp;&nbsp;&nbsp;3.2 | Representations and Warranties of the Purchaser | 29 |
| **ARTICLE 4 COVENANTS** | **ARTICLE 4 COVENANTS** | 29 |
| &nbsp;&nbsp;&nbsp;4.1 | Conduct of Business of the Corporation | 29 |
| &nbsp;&nbsp;&nbsp;4.2 | Regarding the Arrangement | 34 |
| &nbsp;&nbsp;&nbsp;4.3 | Regulatory Approvals | 36 |
| &nbsp;&nbsp;&nbsp;4.4 | Access to Information; Confidentiality | 37 |
| &nbsp;&nbsp;&nbsp;4.5 | Public Communications | 38 |
| &nbsp;&nbsp;&nbsp;4.6 | Notice and Cure Provisions | 38 |
| &nbsp;&nbsp;&nbsp;4.7 | Insurance and Indemnification | 39 |
| &nbsp;&nbsp;&nbsp;4.8 | Cboe De-Listing | 40 |
| &nbsp;&nbsp;&nbsp;4.9 | Tax Cooperation | 40 |
| &nbsp;&nbsp;&nbsp;4.10 | Rollover Agreements | 40 |
| **ARTICLE 5 ADDITIONAL COVENANTS REGARDING NON-SOLICITATION** | **ARTICLE 5 ADDITIONAL COVENANTS REGARDING NON-SOLICITATION** | 40 |
| &nbsp;&nbsp;&nbsp;5.1 | Non-Solicitation | 40 |
| &nbsp;&nbsp;&nbsp;5.2 | Notification of Acquisition Proposals | 42 |
| &nbsp;&nbsp;&nbsp;5.3 | Responding to an Acquisition Proposal | 42 |
| &nbsp;&nbsp;&nbsp;5.4 | Right to Match | 43 |
| &nbsp;&nbsp;&nbsp;5.5 | Breach by Subsidiaries and Representatives | 45 |

---

i

---

| | | |
|:---|:---|:---|
| **ARTICLE 6 CONDITIONS** | **ARTICLE 6 CONDITIONS** | 45 |
| &nbsp;&nbsp;&nbsp;6.1 | Mutual Conditions Precedent | 45 |
| &nbsp;&nbsp;&nbsp;6.2 | Additional Conditions Precedent to the Obligations of the Purchaser | 46 |
| &nbsp;&nbsp;&nbsp;6.3 | Additional Conditions Precedent to the Obligations of the Corporation | 47 |
| **ARTICLE 7 TERM AND TERMINATION** | **ARTICLE 7 TERM AND TERMINATION** | 48 |
| &nbsp;&nbsp;&nbsp;7.1 | Term | 48 |
| &nbsp;&nbsp;&nbsp;7.2 | Termination | 48 |
| &nbsp;&nbsp;&nbsp;7.3 | Effect of Termination/Survival | 50 |
| **ARTICLE 8 GENERAL PROVISIONS** | **ARTICLE 8 GENERAL PROVISIONS** | 50 |
| &nbsp;&nbsp;&nbsp;8.1 | Amendments | 50 |
| &nbsp;&nbsp;&nbsp;8.2 | Termination and Reverse Termination Fees | 51 |
| &nbsp;&nbsp;&nbsp;8.3 | Guarantee | 52 |
| &nbsp;&nbsp;&nbsp;8.4 | Liquidated Damages | 52 |
| &nbsp;&nbsp;&nbsp;8.5 | Expenses | 53 |
| &nbsp;&nbsp;&nbsp;8.6 | Notices | 53 |
| &nbsp;&nbsp;&nbsp;8.7 | Time of the Essence | 55 |
| &nbsp;&nbsp;&nbsp;8.8 | Further Assurances | 55 |
| &nbsp;&nbsp;&nbsp;8.9 | Injunctive Relief | 55 |
| &nbsp;&nbsp;&nbsp;8.10 | Third Party Beneficiaries | 55 |
| &nbsp;&nbsp;&nbsp;8.11 | Waiver | 55 |
| &nbsp;&nbsp;&nbsp;8.12 | Entire Agreement | 56 |
| &nbsp;&nbsp;&nbsp;8.13 | Successors and Assigns | 56 |
| &nbsp;&nbsp;&nbsp;8.14 | Severability | 56 |
| &nbsp;&nbsp;&nbsp;8.15 | Governing Law | 56 |
| &nbsp;&nbsp;&nbsp;8.16 | Rules of Construction | 57 |
| &nbsp;&nbsp;&nbsp;8.17 | No Liability | 57 |
| &nbsp;&nbsp;&nbsp;8.18 | Counterparts | 57 |
| **SCHEDULE A PLAN OF ARRANGEMENT** | **SCHEDULE A PLAN OF ARRANGEMENT** | A-1 |
| **SCHEDULE B ARRANGEMENT RESOLUTION** | **SCHEDULE B ARRANGEMENT RESOLUTION** | B-1 |
| **SCHEDULE C REPRESENTATIONS AND WARRANTIES OF THE CORPORATION** | **SCHEDULE C REPRESENTATIONS AND WARRANTIES OF THE CORPORATION** | C-1 |
| **SCHEDULE D REPRESENTATIONS AND WARRANTIES OF THE PURCHASER** | **SCHEDULE D REPRESENTATIONS AND WARRANTIES OF THE PURCHASER** | D-1 |
| **SCHEDULE E FORM OF ROLLOVER AGREEMENT** | **SCHEDULE E FORM OF ROLLOVER AGREEMENT** | E-1 |
| **SCHEDULE F FORM OF SUPPORT AND VOTING AGREEMENTS** | **SCHEDULE F FORM OF SUPPORT AND VOTING AGREEMENTS** | F-1 |
| **SCHEDULE G ROLLOVER SHAREHOLDERS** | **SCHEDULE G ROLLOVER SHAREHOLDERS** | G-1 |
| **SCHEDULE H FORM OF ESCROW AGREEMENT** | **SCHEDULE H FORM OF ESCROW AGREEMENT** | H-1 |
| **SCHEDULE I FORM OF CVR AGREEMENT** | **SCHEDULE I FORM OF CVR AGREEMENT** | I-1 |

---

ii

**ARRANGEMENT AGREEMENT**

**THIS AGREEMENT** is made as of April 3, 2025

AMONG:

**The INX Digital Company, Inc.,** a corporation incorporated under the laws of British Columbia;

(the "**Corporation**")

AND:

**Republic Strategic Acquisition Co LLC**, a limited liability corporation formed under the laws of Delaware;

(the "**Purchaser**")

AND:

**OpenDeal Inc. (dba Republic)**, a corporation incorporated under the laws of Delaware;

(the "**Guarantor**" or "**Republic**")

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. The Corporation, the Guarantor and the Purchaser, which is
a wholly-owned subsidiary of the Guarantor, have agreed to enter into this Agreement to set out their respective rights and responsibilities
in respect of the Arrangement (as defined below).

**NOW THEREFORE**, in consideration of the covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties agree as follows:

**ARTICLE 1**

**INTERPRETATION**

1.1 Defined Terms

As used in this Agreement, the following terms have the following meanings:

"**Acquisition Proposal**" means, other than the transactions contemplated by this Agreement and other than any transaction involving only the Corporation and/or one or more of its Subsidiaries or between one or more of its Subsidiaries, any offer or proposal (written or oral) from any Person or group of Persons other than the Purchaser (or any of its Affiliates or any Person acting jointly or in concert with the Purchaser or any of its Affiliates) after the date of this Agreement relating to (i) any direct or indirect sale, disposition, alliance or joint venture (or any lease, license, long-term supply agreement or other arrangement having the same economic effect as a sale or disposition), in a single transaction or a series of transactions, of assets (including shares of Subsidiaries of the Corporation) representing 20% or more of the consolidated assets or contributing 20% or more of the consolidated revenue of the Corporation and its Subsidiaries (based on the financial statements of the Corporation most recently filed prior to such time as part of the Corporation Filings); (ii) any direct or indirect take-over bid, tender offer, exchange offer, treasury issuance or other transaction that, if consummated, would result in such Person or group of Persons beneficially owning 20% or more of any class of voting or equity securities (assuming, if applicable, the conversion, exchange or exercise by such Person or group of Persons of any securities convertible into or exchangeable or exercisable for such voting or equity securities) of the Corporation or any of its Subsidiaries whose assets represent 20% or more of the consolidated assets, or contribute 20% or more of the consolidated revenue, of the Corporation and its Subsidiaries (based on the financial statements of the Corporation most recently filed prior to such time as part of the Corporation Filings)); (iii) any plan of arrangement, merger, amalgamation, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution, winding up or exclusive license involving the Corporation or any of its Subsidiaries whose assets represent 20% or more of the consolidated assets, or contribute 20% or more of the consolidated revenue, of the Corporation and its Subsidiaries (based on the financial statements of the Corporation most recently filed prior to such time as part of the Corporation Filings); or (iv) any other similar transaction or series of transactions involving the Corporation or any of its Subsidiaries the consummation of which would reasonably be expected to impede, interfere with, prevent or delay the transactions contemplated by this Agreement or the Arrangement.

"**Affiliate**" has the meaning specified in National Instrument 45-106 - *Prospectus Exemptions*.

"**Agreement**" means this Arrangement Agreement among the Purchaser, the Corporation and the Guarantor (including the Schedules hereto and the Corporation Disclosure Letter) as it may be amended, modified or supplemented from time to time in accordance with its terms.

"**Anti-Spam Laws**" means applicable Laws with respect to unsolicited electronic communications or the installation of computer programs, including *An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities*, and to amend the *Canadian Radio-television and Telecommunications Commissions Act*, *the Competition Act*, *the Personal Information Protection and Electronic Documents Act* and *the Telecommunications Act* (Canada) and other Laws that regulate the same or similar subject matter, and shall be deemed to include all regulations or guidance from Governmental Entities with respect to same.

"**Arrangement**" means an arrangement under the provisions of Section 288 of the BCBCA, on the terms and conditions set forth in the Plan of Arrangement as amended or varied from time to time in accordance with the terms of this Agreement or the Plan of Arrangement or made at the direction of the Court in the Final Order with the prior consent of the Corporation and the Purchaser, each acting reasonably.

"**Arrangement Resolution**" means the special resolution approving the Plan of Arrangement to be considered at the Meeting, substantially in the form of Schedule B.

"**Associate**" has the meaning specified in the *Securities Act* (Ontario) as in effect on the date of this Agreement.

"**Authorization**" means, with respect to any Person, any order, grant permit, approval, certificate, consent, waiver, license or similar authorization of or from any Governmental Entity, whether by expiry or termination of an applicable waiting period or otherwise, that is binding upon or applicable to such Person, or its business, assets or securities.

"**Award**" means the outstanding and unexercised options to purchase Shares, restricted shares and Restricted Share Units issued pursuant to the Incentive Plan, whether or not vested.

"**BCBCA**" means the *Business Corporations Act* (British Columbia) including all regulations made thereunder, as promulgated or amended from time to time;

"**Board**" means the board of directors of the Corporation, as constituted from time to time.

"**Board Recommendation**" has the meaning specified in Section 2.4(2).

"**Books and Records**" means the books and records of the Corporation and its Subsidiaries, including corporate records, minute books, books of account and Tax records, whether in written or electronic form.

"**Breaching Party**" has the meaning specified in Section 4.6(3).

"**Business Day**" means any day of the year, other than a Saturday, Sunday or any day on which major banks are closed for business in Toronto, Ontario.

"**Cash Consideration**" means, in respect of each outstanding Share (other than Shares held by Republic and the Rollover Shares), an amount equal to $20 million in cash, without interest, divided by the number of outstanding Shares (other than Shares held by Republic and the Rollover Shares) payable to Shareholders (other than Republic or the Rollover Shareholders with respect to their Rollover Shares) pursuant to the Plan of Arrangement and for greater certainty shall not include the CVR Amount.

"**Cboe**" means the Cboe (Canada) Exchange.

"**Change in Recommendation**" has the meaning specified in Section 7.2(4)(b).

"**Circular**" means the notice of the Meeting and accompanying management information circular, including all schedules, appendices and exhibits thereto, to be sent to the Securityholders in connection with the Meeting, as amended, supplemented or otherwise modified from time to time in accordance with the terms of this Agreement.

"**CMA**" means the request for approval of the change of control contemplated under the Arrangement by FINRA, pursuant to a Continuing Membership Application (FINRA Rule 1017(a)(4)), which will be filed with FINRA as required by the Broker Dealer Membership Agreement of INX Securities, LLC.

"**CMA Approval**" means the approval of the CMA by FINRA.

"**Competition Act**" means the *Competition Act (Canada)*, as amended, and the regulations promulgated thereunder.

"**Confidentiality Agreement**" means the confidentiality agreement entered into between the Corporation and Republic, dated as of October 22, 2022.

"**Consideration**" means, collectively, (i) the Cash Consideration; and (ii) one CVR.

"**Constating Documents**" means articles, notice of incorporation, amalgamation, or continuation, as applicable, by-laws, notice of articles, or other constating documents and all amendments thereto.

"**Contingent Value Right**" or "**CVR**" means a contingent value right entitling the holder thereof to receive a payment equal to the CVR Amount in accordance with the terms of the CVR Agreement.

"**Contract**" means, any legally binding, written or oral agreement, commitment, engagement, contract, license, lease, obligation, purchase order, statement of work, or any other right, obligation or undertaking to which the Corporation or any of its Subsidiaries is a party or by which the Corporation or any of its Subsidiaries is bound or affected or to which any of their respective properties or their assets is subject.

"**Corporation**" has the meaning specified in the Preamble.

"**Corporation Disclosure Letter**" means the disclosure letter dated the date of this Agreement and delivered by the Corporation to the Purchaser contemporaneously with the execution of this Agreement.

"**Corporation Employees**" means the employees of the Corporation or its Subsidiaries, as the case may be, including part time, full time, active and inactive employees.

"**Corporation Filings**" means all documents publicly filed under the profile of the Corporation on the System for Electronic Document Analysis Retrieval + (SEDAR+) and all other documents required to be publicly filed by it with any Securities Authorities or the Cboe since January 1, 2023.

"**Court**" means the Supreme Court of British Columbia, or other court as applicable.

"**Crypto Assets**" means bitcoin, ether, crypto currency and anything commonly considered a crypto asset, digital or virtual currency, or digital or virtual tokens, that are not themselves securities or derivatives.

"**Customer Data**" means all data, meta data, information or other content (i) transmitted to the Corporation by users or customers of the Corporation's products; or (ii) otherwise stored or hosted by the Corporation, including Personal Data, but excluding any confidential information and anonymized data.

"**CVR Agent**" has the meaning specified thereto in Section 2.15(3).

"**CVR Agreement**" has the meaning specified thereto in Section 2.15(3).

"**CVR Amount**" means, in respect of each outstanding CVR, an amount equal to $16 million in cash, without interest, divided by the number of outstanding CVRs payable to CVR Holders pursuant to the Plan of Arrangement and the terms of the CVR Agreement.

"**CVR Holder**" means a Person entitled to receive payment pursuant to a Contingent Value Right.

"**CVR Payment Date**" has the meaning specified thereto in Section 2.17(1).

"**CVR Register**" has the meaning specified thereto in Section 2.15(3)(a).

"**CVR Representatives**" has the meaning specified thereto in Section 2.15(5).

"**Data Protection Laws**" means all Laws relating to privacy or the processing of Personal Data, including PIPEDA and any similar or analogous Laws of any other jurisdiction.

"**Depositary**" means Odyssey Trust Company in its capacity as depositary for the Arrangement, or such other person as the Corporation and the Purchaser agree to engage as depositary for the Arrangement.

"**Dissolution Event**" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the creditors or (iii) any other liquidation, dissolution or winding up, whether voluntary or involuntary.

"**Dissent Rights**" means the rights of dissent in respect of the Arrangement described in the Plan of Arrangement.

"**Effective Date**" has the meaning specified in the Plan of Arrangement.

"**Effective Time**" has the meaning specified in the Plan of Arrangement.

"**Employee Plans**" has the meaning specified in Section 29(a) of Schedule C.

"**Environmental Laws**" means all Laws relating to the protection of human health and safety, the environment or substances regulated by Laws, including hazardous or toxic substances or wastes, pollutants or contaminants.

"**Escrow Agent**" means Odyssey Trust Company, or such other person as the Corporation and the Purchaser agree to engage as escrow agent.

"**Escrow Agreement**" has the meaning specified in 2.8(2).

"**Escrow Amount**" has the meaning specified in Section 2.8(3).

"**Escrow Deposit Certificate**" has the meaning specified in Section 2.8(3).

"**Escrow Deposit Date**" has the meaning specified in Section 2.8(3).

"**Escrow Deposit Event**" has the meaning specified in Section 2.8(1).

"**Fairness Opinion**" means the opinion of Origin Merchant Partners to the effect that, as of the date of such opinion, the Consideration to be received by the Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares) is fair, from a financial point of view, to such Shareholders (other than Republic and the Rollover Shareholders with respect to the Rollover Shares with respect to their Rollover Shares).

"**Final Order**" means the order of the Court approving the Arrangement under Section 291 of the BCBCA, in form and substance acceptable to the Corporation and the Purchaser, each acting reasonably, after a hearing upon the procedural and substantive fairness of the terms and conditions of the Arrangement, as such order may be affirmed, amended, modified, supplemented or varied by the Court (with the consent of both the Corporation and the Purchaser, each acting reasonably) at any time prior to the Effective Date or, if appealed, as affirmed or amended (provided that any such amendment, modification, supplement or variation is acceptable to both the Corporation and the Purchaser, each acting reasonably) on appeal unless such appeal is withdrawn, abandoned or denied.

"**Governmental Entity**" means (i) any international, multinational, national, federal, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, commissioner, board, bureau, minister, cabinet, governor in council, ministry, agency or instrumentality, domestic or foreign; (ii) any subdivision, agent or authority of any of the foregoing; (iii) any quasi-governmental or private body including any tribunal, commission, regulatory agency or self-regulatory organization exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing; (iv) any administrative court, tribunal, commission, board, panel or arbitrator acting under the authority of any of the foregoing; or (iv) any Securities Authority or stock exchange, including the Cboe.

"**Guarantor**" has the meaning specified in the Preamble.

"**IFRS**" means International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted in Canada from time to time.

"**Incentive Plan**" means the 2021 Omnibus Equity Incentive Compensation Plan of the Corporation effective on May 14, 2021, as amended from time to time.

"**Intellectual Property**" means domestic and foreign: (i) patents, applications for patents and reissues, re-examinations, divisionals, continuations, renewals, extensions and continuations-in-part of patents or patent applications; (ii) proprietary and non-public business information, including inventions (whether patentable or not), invention disclosures, improvements, discoveries, trade secrets, confidential information, know- how, methods, processes, designs, technology, technical data, schematics, formulae and customer lists, and documentation relating to any of the foregoing; (iii) copyrights, copyright registrations and applications for copyright registration; (iv) integrated circuit, topographies, integrated circuit topography registrations and applications, mask works, mask work registrations and applications for mask work registrations; (v) industrial designs, industrial designation registrations and applications, designs, design registrations and design registration applications; (vi) trade names, business names, corporate names, domain names, website names and world wide web addresses, common law trade-marks, trade-mark registrations, trade mark applications, trade dress and logos, and the goodwill associated with any of the foregoing; (vii) Software; and (viii) any other intellectual property and industrial property.

"**Interim Order**" means the interim order of the Court to be issued following the application therefor submitted to the Court as contemplated by Section 2.2 in a form acceptable to the Corporation and the Purchaser, each acting reasonably, providing for, among other things, the calling and holding of the Meeting, as such order may be amended, modified, supplemented or varied by the Court with the consent of the Corporation and the Purchaser, each acting reasonably.

"**Investment Canada Act"** means the *Investment Canada Act*, as amended, and the regulations promulgated thereunder.

"**INX Limited**" means the Subsidiary of the Corporation.

"**INX Registration Statement**" means the registration statement of INX Limited dated September 23, 2020, on Form F-1 filed with the SEC and available at www. sec.gov., as it may be amended or supplemented from time to time, including the post-effective amendment filed by the Corporation on March 30, 2021.

"**INX Token Purchase Agreement**" means the token purchase agreement between the Corporation and holders of tokens.

"**INX Tokens**" means an ERC20 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain, issued by the INX Limited and registered under the U.S. Securities Act and to be sold pursuant to the INX Registration Statement.

"**Law**" means, with respect to any Person, any and all domestic or foreign, national, federal, provincial, state, municipal or local laws (statutory, civil, common or otherwise), statutes, codes, constitutions, treaties, conventions, ordinances (including zoning), decrees, rules, regulations, by-laws, statutory rules, published policies and guidelines, notices, judicial, arbitral, administrative, ministerial, departmental or regulatory judgments, injunctions, orders, decisions, settlements, writs, assessments, arbitration awards, rulings, determinations or awards, decrees or other requirements of any Governmental Entity having the force of law and any legal requirements arising under the common law or principles of law or equity and the term "applicable" with respect to such Laws and, in the context that refers to any person, means such Laws as are applicable at the relevant time or times to such person or its business, undertaking, property or securities and emanate from a Governmental Entity having jurisdiction over such person or its business, undertaking, property or securities.

"**Lease**" means any Contract pursuant to which the Corporation or any of its Subsidiaries leases, or holds a leasehold interest in, a Leased Property.

"**Leased Properties**" has the meaning specified in Section 23(b) of Schedule C.

"**Lien**" means any pledge, claim, lien, charge, option, hypothec, mortgage, security interest, restriction, adverse right, prior assignment, lease, sublease, royalty, levy, right to possession or any other encumbrance, easement, license, right of first refusal, covenant, voting trust or agreement, transfer restriction under any shareholder or similar agreement, right or restriction of any kind or nature whatsoever, whether contingent or absolute, direct or indirect, or any agreement, option, right or privilege (whether by Law, contract or otherwise) capable of becoming any of the foregoing.

"**Matching Period**" has the meaning specified in Section 5.4(1)(e).

"**Material Adverse Effect**" means, in respect of the Corporation, any fact, state of facts, change, event, occurrence, effect or circumstance that, individually or in the aggregate with other such facts, state of facts, changes, events, occurrences, effects or circumstances is or would reasonably be expected to have a material and adverse effect on the current business, operations, affairs, capitalization, results of operations, assets, properties, liabilities (contingent or otherwise, including any contingent liabilities that may arise through outstanding pending or threatened litigation) or condition (financial or otherwise) of the Corporation and its Subsidiaries, taken as a whole, whether before or after giving effect to the transactions contemplated by this Agreement, except any such fact, state of facts, change, event, occurrence, effect, or circumstance resulting from or arising in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any change or event affecting the cryptocurrency and security token trading industries in general;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in general economic, political or capital market conditions in Canada or elsewhere where the Corporation currently engages
in business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any change in IFRS in Canada or changes in regulatory accounting requirements applicable to the industries in which the Corporation and its Subsidiaries operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any adoption, proposal, implementation or change in Law, or in any interpretation of Law, by any Governmental Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any natural disaster;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the commencement or continuation of war, armed hostilities, including the escalation or worsening thereof,
or acts of terrorism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the commencement or continuation of an epidemic, pandemic or other outbreak of illness or public health
event, including the escalation or worsening thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any actions taken (or omitted to be taken) upon the request of the Purchaser or Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as a result of the announcement or performance of this Agreement or the consummation of the Arrangement;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any change in the market price or trading volumes of any securities of the Corporation (it being understood
that the causes underlying such change in market price or trading volumes may be taken into account in determining whether a Material
Adverse Effect has occurred);

provided, however, references in certain sections of this Agreement to dollar amounts are not intended to be, and shall not be deemed to be, illustrative or interpretive for purposes of determining whether a "Material Adverse Effect" has occurred.

"**Material Contract**" means any Contract that involves obligations (contingent or otherwise) of, or payments to, the Corporation, in excess of $500,000 per annum or that if terminated or modified or if it ceased to be in effect, would reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) relating directly or indirectly to indebtedness for borrowed money or to the guarantee of any liabilities
or obligations of another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) restricting the incurrence of indebtedness by the Corporation or any of its Subsidiaries (including by
requiring the granting of an equal and rateable Lien) or the incurrence of any Liens on any properties or assets of the Corporation or
any of its Subsidiaries, or restricting the payment of dividends by the Corporation or by any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that is a partnership agreement, limited liability company agreement, joint venture agreement or similar
agreement or arrangement relating to the formation, creation or operation of any partnership, limited liability company or joint venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that is a collective bargaining agreement or other material agreement with a labour union, other than
a national collective bargaining agreement prescribed by Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) that creates an exclusive dealing arrangement or right of first offer or refusal or "most favoured
nation" obligation in favour of another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) with a Governmental Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) providing for the purchase, sale or exchange of, or option to purchase, sell or exchange, any property
or asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) that limits or restricts (A) the ability of the Corporation or any of its Subsidiaries to engage in any
line of business or carry on business in any geographic area, or (B) the scope of Persons to whom the Corporation or any of its Subsidiaries
may sell products or deliver services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that is a Lease; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) that is otherwise material to the Corporation and its Subsidiaries, taken as a whole.

"**Meeting**" means the special meeting of Shareholders, including any adjournment or postponement of such special meeting in accordance with the terms of this Agreement, to be called and held in accordance with the Interim Order to consider the Arrangement Resolution and for any other purpose as may be set out in the Circular and agreed to in writing by the Purchaser.

"**MI 61-101**" means Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions.

"**Misrepresentation**" has the meaning specified in the *Securities Act* (Ontario) and other Securities Laws.

"**MTL**" means the collective money transmitter licenses held by the Corporation or any Affiliate of the Corporation as of the date of this Agreement;

"**MTL Approval**" means that at least 50% of all MTLs, including but not limited to MTLs for the States of Florida, Washington, Georgia, Oklahoma and Virginia have been approved for a change of control by the applicable Governmental Entity or in the case where approval is not required, such Governmental Entity has received the requisite notice of the change of control, as the case may be;

"**MTL Surety Bond Approval**" means the approval of Endurance Assurance Corporation, Skyward Specialty Insurance Group, Inc. and Arch Insurance Company (or any other reputable insurance companies which provide equivalent services) to the change of control contemplated by the Arrangement for the continuation of surety bond coverage required for the MTLs which, in accordance with their terms, require such surety bond coverage.

"**Officer**" has the meaning specified in the *Securities Act* (Ontario).

"**Option**" means the outstanding and unexercised options to purchase Shares issued pursuant to the Incentive Plan, whether or not vested.

"**Ordinary Course**" means, with respect to an action taken by the Corporation or one of its Subsidiaries, that such action is consistent with past practices of the Corporation or its Subsidiaries, as applicable, and is taken in the ordinary course of the normal day-to-day operations of the business of the Corporation or such Subsidiary.

"**Outside Date**" means the date which is 8 months following the execution of this Agreement or such later date as may be agreed to in writing by the Parties.

"**Owned Intellectual Property**" means the Intellectual Property owned by the Corporation and its Subsidiaries.

"**Parties**" means the Corporation and the Purchaser and "**Party**" means any one of them.

"**Permitted Liens**" means, in respect of the Corporation or any of its Subsidiaries, any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens for Taxes which are not delinquent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) inchoate or statutory Liens of contractors, subcontractors, mechanics, workers, suppliers, materialmen,
carriers and others in respect of the construction, maintenance, repair or operation of assets, provided that such Liens are related to
obligations not due or delinquent, are not registered against title to any assets and in respect of which adequate holdbacks are being
maintained as required by applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the right reserved to or vested in any Governmental Entity by any statutory provision or by the terms
of any lease, license, franchise, grant or permit of the Corporation or any of its Subsidiaries, to terminate any such lease, license,
franchise, grant or permit, or to require annual or other payments as a condition of their continuance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens listed and described in Section 1.1 of the Corporation Disclosure Letter.

"**Person**" includes any individual, partnership, association, body corporate, organization, trust, estate, trustee, executor, administrator, legal representative, government (including Governmental Entity), syndicate or other entity, whether or not having legal status.

"**Personal Data**" means any "personal information" (within the meaning of PIPEDA), and any other information relating to an identifiable Person that can be directly or indirectly identified in particular by reference to an identifier.

"**PIPEDA**" means the *Personal Information Protection and Electronic Documents Act* (Canada).

"**Plan of Arrangement**" means the plan of arrangement substantially in the form of Schedule A to this Agreement, and any amendments or variations to such plan made in accordance with its terms, the terms of this Agreement or made at the direction of the Court in the Final Order with the prior consent of the Corporation and the Purchaser, each acting reasonably.

"**Publicly Available Software**" means, collectively: (1) any software that contains, or is derived in any manner (in whole or in part) from, any software that is distributed as "free software" or "open source software" (e.g., Linux), or pursuant to "open source," "copyleft" or similar licensing and distribution models; and (2) any software that requires as a condition of use, modification or distribution of such software that such software or other software incorporated into, derived from, or distributed with such software be (a) disclosed or distributed in source code form, (b) licensed for the purpose of making derivative works or (c) redistributable at no or minimal charge.

"**Purchaser**" has the meaning specified in the Preamble.

"**Rail Implementation**" means the completion by INX and INX Securities of the integration with Layer2 Financial, Inc. and the transfer of customer accounts to a Layer2 Financial, Inc. partner bank, as evidenced by a duly executed certificate by the CEO of Corporation.

"**Registrar**" means the person appointed as the Registrar of Companies under section 400 of the BCBCA.

"**Regulatory Approvals**" means any consent, waiver, permit, exemption, review, order, decision or approval of, or any registration and filing with, any Governmental Entity, or the expiry, waiver or termination of any waiting period imposed by Law or a Governmental Entity, in each case in connection with the Arrangement and shall include the Required Regulatory Approvals.

"**Representative**" means, with respect to any Person, any officer, director, employee, representative (including any financial, legal or other advisor) or agent of such Person or of any of its Subsidiaries.

"**Required Regulatory Approval**" means collectively, the CMA Approval, the MTL Approval, the MTL Surety Bond Approval and the Transfer Agent Approval.

"**Required Shareholder Approval**" means the required votes set forth in Section 2.2(2), together with any other vote required under the Interim Order.

"**Reserve Fund**" means **$34,325,000** which is available to cover INX Limited's losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses.

"**Reverse Termination Fee**" has the meaning specified in Section 8.2(3).

"**Reverse Termination Fee Event**" has the meaning specified in Section 8.2(3).

"**Rollover Agreement**" means the share purchase agreement, substantially in the form of Schedule E, pursuant to which, among other things, a Rollover Shareholder agrees to transfer some or all of its Shares to the Purchaser prior to the Effective Time for the consideration set out in such agreement.

"**Rollover Shares**" means the issued and outstanding Shares held by the Rollover Shareholders that are to be transferred to the Purchaser pursuant to the terms of the Rollover Agreements, but only to the extent that such Shares are actually transferred to the Purchaser, prior to the Effective Time, for the consideration contemplated by the Rollover Agreements.

"**Rollover Shareholders**" means the Shareholders listed in Schedule G, together with any other Shareholder that enters into a Rollover Agreement after the date hereof and prior to the date of the Meeting in accordance with the terms of this Agreement.

"**RSU**" means, at any time, the outstanding restricted share units issued pursuant to the Incentive Plan, whether or not vested.

"**SEC**" means the U.S. Securities and Exchange Commission and any other U.S. Governmental Entity administering the U.S. Securities Act and the U.S. Exchange Act at the time.

"**Securities Authority**" means the Ontario Securities Commission and any other applicable securities commission or securities regulatory authority of a province or territory of Canada.

"**Securities Laws**" means the *Securities Act* (Ontario) and the rules, regulations and published policies thereunder, any other applicable Canadian provincial and territorial securities Laws, and, where applicable, applicable securities laws and regulations or other jurisdictions, and the rules and regulations of the Cboe.

"**Securityholders**" means, collectively, the Shareholders and the holders of Awards.

"**Shareholders**" means the registered or beneficial holders of the Shares, as the context requires.

"**Shares**" means the common shares without par value in the capital of the Corporation.

"**Software**" means computer software and programs (both source code and object code form), all proprietary rights in the computer software and programs and all documentation and other materials related to the computer software and programs.

"**Subsidiary**" has the meaning specified in National Instrument 45-106 *Prospectus Exemptions* as in effect on the date of this Agreement. SICPA INX SA shall not be deemed a Subsidiary of the Corporation for the purpose of this Agreement.

"**Superior Proposal**" means any unsolicited *bona fide* written Acquisition Proposal from an arms' length third party or arms' length third parties acting jointly or in concert on or after the date of this Agreement that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) complies in all material respects with Securities Laws and did not result from or involve a material breach
of Article 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is reasonably capable of being completed without undue delay, taking into account all financial, legal,
regulatory and other aspects of such proposal and the Person or group of Persons making such proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is not subject to any financing condition and in respect of which adequate arrangements have been made
to ensure that the required funds will be available to effect payment in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is not subject to any due diligence or access conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) that the Board determines, in its good faith judgment, after receiving the advice of its outside legal
counsel and financial advisors and after taking into account all the terms and conditions of the Acquisition Proposal, including all legal,
financial, regulatory, tax and other aspects of such Acquisition Proposal and the Person or group of Persons making such Acquisition Proposal,
would, if consummated in accordance with its terms (but without assuming away any risk of non-completion), result in a transaction which
is more favorable to the Corporation and its Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover
Shares) from a financial point of view than the Arrangement (including any amendments to the terms and conditions of the Arrangement proposed
by the Purchaser pursuant to Section 5.4(2) hereof).

"**Superior Proposal Notice**" has the meaning specified in Section 5.4(1)(c).

"**Support Agreements**" means, collectively, the (i) Support and Voting Agreements, and (ii) the Rollover Agreements.

"**Support and Voting Agreements**" means, collectively, each of the support and voting agreements entered into between the Purchaser and the senior officers and independent directors of the Corporation, substantially in the form of Schedule F.

"**Tax Act**" means the *Income Tax Act* (Canada).

"**Tax Credits**" has the meaning specified in Section 31(e) of Schedule C.

"**Tax Returns**" means any and all federal, provincial, and local returns, reports, declarations, elections, notices, forms, designations, schedules, attachments, filings, and statements (including any amendments, and estimated tax returns and reports, withholding tax returns and reports, and information returns and reports) filed or required to be filed in respect of Taxes (whether in tangible, electronic or other form).

"**Taxes**" means (i) any and all taxes, duties, fees, excises, premiums, assessments, imposts, levies and other charges or assessments of any kind whatsoever imposed by any Governmental Entity, whether computed on a separate, consolidated, unitary, combined or other basis, including those levied on, or measured by, or described with respect to, income, gross receipts, profits, gains, windfalls, capital, capital stock, production, recapture, transfer, land transfer, license, gift, occupation, wealth, environment, net worth, indebtedness, surplus, sales, goods and services, harmonized sales, use, value-added, excise, special assessment, stamp, withholding, business, franchising, real or personal property, health, employee health, payroll, workers' compensation, employment or unemployment, severance, social services, social security, education, utility, surtaxes, customs, import or export, and including all license and registration fees and all employment insurance, health insurance and government pension plan premiums or contributions; (ii) all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Entity on or in respect of amounts of the type described in clause (i) above or this clause (ii); (iii) any liability for the payment of any amounts of the type described in clauses (i) or (ii) as a result of being a member of an affiliated, consolidated, combined or unitary group for any period; and (iv) any liability for the payment of any amounts of the type described in clauses (i) or (ii) as a result of any express or implied obligation to indemnify any other Person or as a result of being a transferee or successor in interest to any party.

"**Termination Fee**" has the meaning specified in Section 8.2(2).

"**Termination Fee Event**" has the meaning specified in Section 8.2(2).

"**Terminating Party**" has the meaning specified in Section 4.6(3).

"**Termination Notice**" has the meaning specified in Section 4.6(3).

"**Transfer Agent Approval**" means the date in which the ownership change is deemed effective following filing of an indirect ownership change via a TA1 filing in the SEC EDGAR database by the Corporation or INX Transfer Agent LLC.

"**Wash Trading**" means entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk, or transactions which the trader knew or reasonably ought to have known that its order entry would result in trades involving no change in beneficial or economic ownership.

"**Wilful Breach**" means a material breach that is a consequence of an act or a failure to act undertaken by the breaching party with the actual knowledge that such act or failure to act would, or would be reasonably expected to, cause a breach of this Agreement.

1.2 Certain Rules of Interpretation

In this Agreement, unless otherwise specified:

(1) **Headings, etc.** The provision of a **Table of Contents**, the division of this Agreement into Articles
and Sections and the insertion of headings are for convenient reference only and do not affect the construction or interpretation of this
Agreement.

(2) **Currency.** All references to dollars or to $ are references to United States currency. References
to C$ are references to Canadian dollars.

(3) **Gender and Number.** Any reference to gender includes all genders. Words importing the singular number
only include the plural and vice versa.

(4) **Certain Phrases and References, etc.** The words "including,"
 "includes" and "include" mean "including (or includes or include) without limitation," and
 "the aggregate of," "the total of," "the sum of," or a phrase of similar meaning means
 "the aggregate (or total or sum), without duplication, of."
Unless stated otherwise, "Article," "Section," and "Schedule" followed by a number or letter mean
and refer to the specified Article or Section of or Schedule to this Agreement. The term "Agreement" and any reference in
this Agreement to this Agreement or any other agreement or document includes, and is a reference to, this Agreement or such other agreement
or document as it may have been, or may from time to time be, amended, restated, replaced, supplemented or novated and includes all schedules
to it.

(5) **Capitalized Terms.** All capitalized terms used in any Schedule or in the Corporation Disclosure
Letter have the meanings ascribed to them in this Agreement.

(6) **Knowledge.** Where any representation or warranty is expressly qualified by reference to the knowledge
of the Corporation or its Subsidiaries, it is deemed to refer to the actual knowledge of Shy Datika, Chief Executive Officer of the Corporation
and the Chief Financial Officer of the Corporation in their respective capacities as Officers and/or employees of the Corporation or its
Subsidiaries and not in their personal capacity, after due and diligent inquiry.

(7) **Accounting Terms.** All accounting terms are to be interpreted in accordance with IFRS and all determinations
of an accounting nature in respect of the Corporation required to be made shall be made in a manner consistent with IFRS.

(8) **Statutes.** Any reference to a statute refers to such statute and all rules and regulations made
under it, as it or they may have been or may from time to time be amended or re- enacted, unless stated otherwise.

(9) **Computation of Time.** If any action may be taken within, or any right or obligation is to expire
at the end of, a period of days under this Agreement, then the first day of the period is not counted, but the day of its expiry is counted.
Whenever payments are to be made or an action is to be taken on a day which is not a Business Day, such payment will be made or such action
will be taken on or not later than the next succeeding Business Day.

(10) **Time References.** References to time are to local time, Toronto, Ontario.

(11) **Subsidiaries.** To the extent any covenants or agreements relate, directly or indirectly, to a Subsidiary
of the Corporation, each such provision shall be construed as a covenant by the Corporation to cause (to the fullest extent to which it
is legally capable) such Subsidiary to perform the required action.

1.3 Schedules

(1) The schedules attached to this Agreement form an integral part of this Agreement for all purposes of it.

(2) The Corporation Disclosure Letter itself and all information contained in it is confidential information
and may not be disclosed unless (i) it is required to be disclosed pursuant to Law unless such Law permits the Parties to refrain from
disclosing the information for confidentiality or other purposes or (ii) a Party needs to
disclose it in order to enforce or exercise its rights under this Agreement.

**ARTICLE 2**

**THE ARRANGEMENT**

2.1 Arrangement

(1) The Corporation and the Purchaser agree that the Arrangement will be implemented in accordance with and
subject to the terms and conditions of this Agreement and the Plan of Arrangement.

(2) From and after the Effective Time, the steps to be carried out pursuant to the Arrangement shall become
effective in accordance with the Plan of Arrangement.

2.2 Interim Order

As soon as reasonably practicable after the date of this Agreement, but in any event on or before May 15, 2025, the Corporation shall make application for a hearing before the Court pursuant to Section 291 of the BCBCA, seeking the Interim Order, in a manner and form acceptable to the Purchaser and the Corporation, each acting reasonably, which must provide, among other things:

(1) for the class of persons to whom notice is to be provided in respect of the Arrangement and the Meeting
and for the manner in which such notice is to be provided;

(2) that the required level of approval for the Arrangement Resolution shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at least 66⅔% of the votes cast on the Arrangement Resolution by Shareholders present in person
or represented by proxy at the Meeting, each being entitled to one vote per Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a simple majority of the votes cast on the Arrangement Resolution by Shareholders (other than Republic
and the Rollover Shareholders and any other Shareholder excluded for purpose of such vote under MI 61-101) present in person or represented
by proxy at the Meeting, each being entitled to one vote per Share, voting in accordance with Part 8 of MI 61-101;

(3) that, subject to the foregoing and in all other respects, the terms, restrictions and conditions of the
Corporation's Constating Documents, including quorum requirements and all other matters, shall apply in respect of the Meeting;

(4) for the grant of the Dissent Rights to those Shareholders who are registered Shareholders as contemplated
in the Plan of Arrangement;

(5) for the notice requirements with respect to the presentation of the application to the Court for the Final
Order;

(6) that the Meeting may be adjourned or postponed from time to time by the Corporation in accordance with
the terms of this Agreement and without the need for additional approval of the Court;

(7) for a record date, for the purposes of determining the Shareholders entitled to receive notice of and
vote at the Meeting, of not later than the date of the issue of the Initial Order, which date shall be fixed and published by the Corporation
in consultation with the Purchaser and will not change in respect of any adjournment(s) of the Meeting, unless required by Law; and

(8) for such other matters as the Purchaser or the Corporation (each with the prior consent of the other,
such consent not to be unreasonably withheld or delayed) may reasonably require.

2.3 News Release and Meeting

The Corporation shall:

(1) subject to compliance with applicable Securities Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately after the execution of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such later time prior to the next opening of markets in Toronto as is agreed to by the Corporation and
the Purchaser,

issue a news release announcing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the execution of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Board having determined that the Arrangement is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fair to the Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the best interests of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Board has resolved to recommend that the Shareholders (other than Republic and the Rollover Shareholders
with respect to their Rollover Shares) vote in favour of the Arrangement Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) each independent director and senior officer of the Corporation who owns Shares has entered into a Support
and Voting Agreement pursuant to which, and subject to the terms thereof, such director has agreed to vote all of such individual's
Shares in favour of the Arrangement Resolution and against any proposed action or agreement which could reasonably be expected to impede,
interfere with or delay, or in any way adversely affect the completion of the Arrangement and any other transactions contemplated by the
Arrangement Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) each of the Rollover Shareholders listed in Schedule G has entered into a Rollover Agreement pursuant
to which, and subject to the terms thereof, such Rollover Shareholder has agreed to vote all of such individual's Shares in favour
of the Arrangement Resolution and against any proposed action or agreement which could reasonably be expected to impede, interfere with
or delay, or in any way adversely affect the completion of the Arrangement and any other transactions contemplated by the Arrangement
Agreement;

which news release shall be satisfactory in form and substance to each of the Corporation and the Purchaser, each acting reasonably; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) file such news release and a corresponding material change report in prescribed form in accordance with
applicable Securities Laws;

(2) lawfully convene and conduct the Meeting in accordance with the Interim Order, the Corporation's
Constating Documents and Law as soon as reasonably practicable after the Interim Order is issued, for the purpose of having Shareholders
consider the Arrangement Resolution and for any other proper purpose as may be set out in the Circular and agreed to by the Purchaser,
and not adjourn, postpone or cancel (or propose the adjournment, postponement or cancellation of) the Meeting without the prior written
consent of the Purchaser, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an adjournment, as required for quorum purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as required or permitted under Section 2.3(10), Section 4.6(3) or Section 5.4(5).

(3) subject to the terms of this Agreement, solicit proxies in favour of the approval of the Arrangement Resolution
and against any resolution submitted by any Shareholder that is inconsistent with the Arrangement Resolution and the completion of any
of the transactions contemplated by this Agreement, including, if so requested by the Purchaser, acting reasonably, using dealer and proxy
solicitation services firms and cooperating with any Persons engaged by the Purchaser to solicit proxies in favour of the approval of
the Arrangement Resolution. For greater certainty, the Purchaser shall be solely responsible for paying all costs associated with any
dealers or proxy solicitors so engaged;

(4) (a) provide the Purchaser with copies of or access to information regarding the Meeting generated by any
dealer or proxy solicitation services firm, as reasonably requested from time to time by the Purchaser; (b) consult with, and consider
any suggestions from, the Purchaser with regards to the proxy solicitation agent, and (c) consult with the Purchaser and keep the Purchaser
apprised, with respect to such solicitation and other actions;

(5) consult with the Purchaser in fixing the date of the Meeting, give notice to the Purchaser of the Meeting
and allow the Representatives of the Purchaser (including its legal counsel) to attend the Meeting;

(6) promptly advise the Purchaser, at such times as the Purchaser may reasonably request and at least on a
daily basis on each of the last 10 Business Days prior to the date of the Meeting, as to the aggregate tally of the proxies (for greater
certainty, specifying votes "for" and votes "against" the Arrangement Resolution)
received by the Corporation from the Shareholders in respect of the Arrangement Resolution;

(7) promptly advise the Purchaser of any communication, written or oral, from any Person in opposition to
the Arrangement, written notice of dissent, purported exercise or withdrawal of Dissent Rights, other instruments served pursuant to the
Dissent Rights and received by the Corporation and written communications sent by or on behalf of the Corporation to any Shareholder exercising
or purporting to exercise Dissent Rights;

(8) not make any payment or settlement offer, agree to any payment or settlement or conduct any negotiations
prior to the Effective Time with respect to Dissent Rights without the prior written consent of the Purchaser;

(9) not change the record date for the Shareholders entitled to vote at the Meeting in connection with any
adjournment or postponement of the Meeting unless required by Law or the Court; and

(10) if the Meeting is to be held during a Matching Period, at the request of the Purchaser, adjourn or postpone
the Meeting to a date specified by the Purchaser that is not later than 10 Business Days after the date on which the Meeting was originally
scheduled and in any event to a date that is not later than five Business Days prior to the Outside Date.

2.4 The Circular

(1) The Corporation shall as soon as reasonably practicable after the execution of this Agreement promptly
prepare and complete, in consultation with the Purchaser, the Circular together with any other documents required by the BCBCA and Law
in connection with the Meeting, the approval of the Arrangement Resolution thereat and the Arrangement, including obtaining the Fairness
Opinion for inclusion in the Circular, and the Corporation shall, promptly after obtaining the Interim Order, cause the Circular and such
other documents to be filed and sent to each Securityholder and other Persons as required by the Interim Order and Law, in compliance
with the abridged timing requirements contemplated by National Instrument 54-101 - *Communication with Beneficial Owners of Securities of a Reporting Issuer* in each case so as to permit the Meeting to be held by the date specified in Section 2.3(2), provided that the
Purchaser shall have complied with Section 2.4(4).

(2) The Corporation shall ensure that the Circular complies in all material respects with Law, and, without
limiting the generality of the foregoing, that the Circular (including with respect to any information incorporated therein by reference),
does not contain any Misrepresentation (other than in respect to any written information with respect to the Purchaser and the Guarantor
that is furnished in writing by or on behalf of the Purchaser for inclusion in the Circular) and provides the Shareholders with sufficient
information to permit them to form a reasoned judgement concerning the matters to be placed before the Meeting. Without limiting the generality
of the foregoing, the Circular must include: (i) a summary and a copy of the Fairness Opinion, (ii) a statement that the Board has received
the Fairness Opinion, and has (with interested directors abstaining from voting), after receiving legal and financial advice, determined
that the Arrangement is in the best interests of the Corporation and is fair to
the Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares) and that the Board (with interested
directors abstaining from voting) recommends that the Shareholders (other than Republic and the Rollover Shareholders with respect to
their Rollover Shares) vote in favour of the Arrangement Resolution (the "**Board Recommendation**") and a rationale for
that recommendation, (iii) a statement that each of the senior officers and independent directors of the Corporation who owns Shares (other
than the Rollover Shareholders or their Affiliates) has entered into a Support and Voting Agreement pursuant to which such director intends
to vote all of such individual's Shares in favour of the Arrangement Resolution and against any proposed action or agreement which
could reasonably be expected to impede, interfere with or delay, or in any way adversely affect the completion of the Arrangement and
any other transactions contemplated by the Arrangement Agreement; and (iv) a statement that each of the Rollover Shareholders that have
entered into a Rollover Agreement have agreed to vote all of such Rollover Shareholder's Shares in favour of the Arrangement Resolution
and against any proposed action or agreement which could reasonably be expected to impede, interfere with or delay, or in any way adversely
affect the completion of the Arrangement and any other transactions contemplated by the Arrangement Agreement.

(3) Prior to filing the Circular with applicable Governmental Entities and printing and mailing the Circular
to the Securityholders, the Corporation shall give the Purchaser and its legal counsel a reasonable opportunity to review and comment
on drafts of the Circular and other related documents, and shall give reasonable consideration to any comments made by the Purchaser and
its legal counsel, and agrees that all information relating solely to the Purchaser, and the Guarantor, that is furnished in writing by
or on behalf of the Purchaser or Guarantor for inclusion in the Circular, and any information describing the terms of the Arrangement
and/or the Plan of Arrangement, must be in a form and content satisfactory to the Purchaser or the Guarantor (as applicable), acting reasonably.
The Corporation shall provide each of the Purchaser and the Guarantor with a final copy of the Circular prior to its mailing to the Securityholders.

(4) Each of the Purchaser and the Guarantor shall provide in writing to the Corporation all information concerning
the Purchaser and the Guarantor that is required by Law to be included by the Corporation in the Circular or other related documents,
and shall ensure that such information does not contain any Misrepresentation and all information relating solely to the Purchaser and
the Guarantor, shall be in the form and content satisfactory to the Purchaser or the Guarantor (as applicable) acting reasonably.

(5) Each Party shall promptly notify the other Party if it becomes aware that the Circular contains a Misrepresentation,
or otherwise requires an amendment or supplement. The Parties shall co-operate in the preparation of any such amendment or supplement
to the Circular or such other document, as the case may be, and any related news release or other document necessary or desirable in connection
therewith, as required or appropriate, and the Corporation shall promptly mail, file or otherwise publicly disseminate any such amendment
or supplement to the Securityholders and, if required by the Court or by Law, file the same with the Securities Authorities or any other
Governmental Entity as required.

(6) The Corporation shall keep the Purchaser fully informed, in a timely manner, of any requests or comments
made by the Securities Authorities and/or the Cboe in connection with the Circular.

2.5 Final Order

If the Interim Order is obtained and the Arrangement Resolution is passed at the Meeting as provided for in the Interim Order, the Corporation shall take all steps necessary or advisable to submit the Arrangement to the Court and diligently make application to the Court pursuant to Section 291 of the BCBCA for the Final Order, as soon as reasonably practicable and in no event no later than five Business Days after the Arrangement Resolution is passed at the Meeting, as provided for in the Interim Order.

2.6 Court Proceedings

In connection with all Court proceedings relating to obtaining the Interim Order and the Final Order, the Corporation shall:

(1) diligently pursue, and cooperate with the Purchaser to obtain, the Interim Order and the Final Order;

(2) provide the Purchaser and its legal counsel with a reasonable opportunity to review and comment upon drafts
of all material to be filed with, or submitted to, the Court in connection with the Arrangement, including drafts of the Interim Order
and Final Order, prior to the service and filing of such materials, and give reasonable consideration to all such comments of the Purchaser
and its legal counsel;

(3) provide the Purchaser and legal counsel to the Purchaser on a timely basis with copies of any notice of
appearance, evidence or other documents served on the Corporation or its legal counsel in respect of the application for the Interim Order
or the Final Order or any appeal from them, and any notice, written or oral, indicating the intention of any Person to appeal, or oppose
the granting of, the Interim Order or the Final Order;

(4) ensure that all materials filed with the Court in connection with the Arrangement is consistent with the
terms of this Agreement and the Plan of Arrangement;

(5) not file any material with the Court in connection with the Arrangement or serve any such material, or
agree to modify or amend any material so filed or served, except as contemplated by this Agreement or with the Purchaser's prior
written consent, such consent not to be unreasonably withheld, conditioned or delayed, provided the Purchaser is not required to agree
or consent to any increase in or variation in the form of the Consideration or other modification or amendment to such filed or served
materials that expands or increases the Purchaser's obligations, or diminishes or limits the Purchaser's rights, set forth
in any such filed or served materials or under this Agreement, or that require any amendment or modification to the terms and conditions
of the Support Agreements;

(6) oppose any proposal from any Person that the Final Order contain any provision inconsistent with this
Agreement, and if required by the terms of the Final Order or by Law to return to Court with respect to the Final Order do so
only after notice to, and in consultation and cooperation with, the Purchaser; and

(7) not object to legal counsel to the Purchaser making such submissions on the hearing of the motion for
the Interim Order and the application for the Final Order as such counsel considers appropriate, provided the Purchaser advises the Corporation
of the nature of such submissions reasonably in advance of the hearing and such submissions are consistent with this Agreement and the
Plan of Arrangement.

2.7 INX Tokens

At the Effective Time or as soon as practicable thereafter (and in any event within two Business Days following the Effective Date), INX Limited shall distribute the funds deposited in its Reserve Fund to the holders of INX Tokens, in accordance with the terms of the INX Token Purchase Agreement and the Guarantor shall guarantee such distribution. This Section 2.7 shall survive the consummation of the Arrangement and is intended to be for the benefit of, and shall be enforceable by, the holders of INX Tokens and shall be binding on Republic and its respective successors and assigns, and, for such purpose, the Corporation hereby confirms that it is acting as agent on behalf of the holders of INX Tokens.

2.8 Escrow Event

(1) Subject to Section 2.8(3), the Guarantor undertakes that, upon receipt of a duly executed CEO certificate
evidencing the completion of the Rail Implementation (the "**Escrow Deposit Event** "), the Guarantor shall deposit the
Escrow Amount with the Escrow Agent in accordance with Section 2.8(2).

(2) Upon the occurrence of the Escrow Deposit Event, and in each case, no later than two Business Days following
the occurrence of the Escrow Deposit Event, the Parties shall enter into an escrow agreement substantially in the form attached hereto
as Schedule H (the "**Escrow Agreement** "), subject to such changes as may be reasonable or necessary to reflect reasonable
requests of the Escrow Agent.

(3) The Guarantor shall deposit $10,000,000 (such deposit, except for any interest earned thereon from (and
including) the date hereof to (but excluding) the Effective Date or date of earlier termination of this Agreement being referred to as
the "**Escrow Amount**") with the Escrow Agent (the "**Escrow Deposit Date** "). Notwithstanding anything
in this Agreement to the contrary, the Guarantor shall not be required to deposit the Escrow Amount with the Escrow Agent unless it has
receives a certificate executed by two senior officers of the Corporation addressed to the Purchaser and dated the Escrow Deposit Date
confirming that the representations and warranties of the Corporation set forth in this Agreement are true and correct as of the Escrow
Deposit Date, except to the extent that the failure or failures of such representations and warranties to be so true and correct, individually
or in the aggregate, has not had or would not reasonably be expected to have a Material Adverse Effect or prevent, significantly impede
or materially delay the completion of the Arrangement (and, for this purpose, any reference to "material", "Material
Adverse Effect" or other concepts of materiality in such representations and warranties shall be ignored), and
(ii) the representations and warranties of the Corporation set forth in Paragraphs (1) [ *Organization and Qualification* ], (2)
[ *Corporate Authorization* ], (3) [ *Execution and Binding Obligation* ], (5)(a) [ *No Conflict* ], (6)
[ *Capitalization* ], (8) [ *Subsidiaries* ] and (20) [ *Brokers* ] of Schedule C are true and correct in all respects as
of the Escrow Deposit Date in each case except for representations and warranties made as of a specified date, the accuracy of which
shall be determined as of such specified date (the "**Escrow Deposit Certificate** ").

(4) One Business Day prior to the Effective Date the Cash Consideration (including the Escrow Amount which
shall be deemed as applied towards satisfaction of the payment of the Cash Consideration payable by the Guarantor pursuant to this Agreement)
shall be transferred by wire transfer in immediately available funds by the Guarantor and Escrow Agent, respectively, to the Depository
and paid to the former holders of INX Shares in accordance with the terms of the Depositary Agreement. In the event that this Agreement
is duly and validly terminated pursuant to the terms of this Agreement, then, in such event, the Escrow Agent shall, in accordance with
the provisions of the Escrow Agreement, transfer the Escrow Amount to Purchaser within two Business Days of such termination; provided
that if the Escrow Amount has been deposited with the Escrow Agent prior to a Reverse Termination Fee Event, upon the occurrence of a
Reverse Termination Fee Event, the Reverse Termination Fee shall be transferred to the Corporation in accordance with 8.2(3).

2.9 Effective Date

(1) Subject to Sections 4.6 and 7.2, the Effective Date shall occur as soon as reasonably practicable (and
in any event not later than five Business Days) after the satisfaction or, where not prohibited, the waiver by the applicable Party or
Parties in whose favour the condition is stipulated, of the conditions set out in Article 6 (excluding conditions that, by their terms,
cannot be satisfied until the Effective Date, but subject to the satisfaction or, where not prohibited, the waiver by the applicable Party
or Parties in whose favour the condition is stipulated, of those conditions as of the Effective Date), unless another time or date is
agreed to in writing by the Parties.

(2) In connection with the Effective Time, each Party shall deliver to the other Party: (a) a certificate
of good standing (or similar), in respect of such Party issued by the appropriate registrar dated within two Business Days prior to the
Effective Date; (b) a certified copy of the resolutions of the directors and, if applicable, the shareholders of such Party approving
the transactions contemplated hereby (in the case of the Shareholders, the Arrangement Resolution); and (c) a certified copy of the such
Party's Constating Documents.

(3) From and after the Effective Time, the Plan of Arrangement shall have all of the effects provided by applicable
Law, including the BCBCA. The closing of the Arrangement will take place by remote communication and by the exchange of documents by electronic
transmission (by email or other electronic means), unless otherwise agreed upon by the Parties.

2.10 Payment of Cash Consideration

Not less than one Business Day prior to the Effective Date, the Escrow Agent shall transfer or cause to be transferred the Escrow Funds to the Depositary. Not less than one Business Day prior to the Effective Date, the Guarantor shall provide the Depositary with sufficient funds to be held in escrow to satisfy the Cash Consideration payable to the Shareholders as provided in the Plan of Arrangement (taking into account the transfer by the Escrow Agent of the Escrow Funds).

2.11 Adjustment of Cash Consideration

Notwithstanding anything in this Agreement to the contrary, if, on or after the date of this Agreement, the Corporation declares or pays any dividend or other distribution on the Shares prior to the Effective Time, the Cash Consideration shall be reduced by the amount of such dividends or distributions, on a dollar for dollar basis, to provide to Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares) the same economic effect as contemplated by this Agreement and the Arrangement prior to such action and as so adjusted shall, from and after the date of such event, be the Cash Consideration payable to the Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares).

2.12 Treatment of Incentive Securities

The Parties acknowledge that the Arrangement will trigger a "significant event" under the Incentive Plan and related agreements which govern the Options and RSUs and, as such, the Options and RSUs will not be assumed by the Purchaser pursuant to the Arrangement, and the vesting of the Options and RSUs may be accelerated and become fully vested as a result of the completion of the Arrangement. With respect to payments to be made in respect of Options and RSUs accelerated as a result of the Arrangement, the Company shall cause to be taken all necessary corporate action to allot and reserve for issuance the Shares to be issued in settlement of Options and RSUs in connection with the Arrangement. The Parties acknowledge and agree that all outstanding Options and RSUs that are not settled or exercised in accordance with their terms, whether conditionally or otherwise, prior to the date set by the Board, which date shall be at least five Business Days prior to the Effective Date, shall terminate and expire in accordance with the terms of the Incentive Plan.

2.13 Withholding Rights

Each of the Purchaser, the Corporation, the Depositary or any other Person that makes a payment hereunder shall be entitled to deduct and withhold from the amounts otherwise payable under this Agreement and the Arrangement, such amounts as it is directed to deduct and withhold or is required to deduct and withhold with respect to such payment under the Tax Act and the rules and regulations promulgated thereunder, or any provision of any Law, including any provision of any provincial, state, local or foreign Law relating to Taxes as counsel may advise, and remit such deduction and withholding amount to the appropriate Governmental Entity. To the extent that amounts are so properly deducted, withheld and remitted, such amounts shall be treated for all purposes of this Agreement and the Arrangement as having been paid to the payee in respect of which such deduction, withholding and remittance was made.

2.14 Securityholder Lists

(1) Upon the reasonable request from time to time of the Purchaser, the Corporation will promptly provide
the Purchaser with lists (in both written and electronic form) of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Registered Shareholders and holders of Awards, together with their addresses and their respective holdings
of Shares, and Awards, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) names and addresses and respective holdings of all persons having rights issued or granted by the Corporation
to acquire or otherwise related to Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) names of non-objecting beneficial owners of Shares and participants in book-based nominee registers (such
as CDS & Co., Cede & Co. and the Depositary Trust Corporation), together with their respective addresses and holdings of Shares.

(2) The Corporation will from time to time require that its registrar and transfer agent furnish the Purchaser
with such additional information, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) updated or additional lists of Shareholders, and holders of Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) information regarding beneficial ownership of Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) other assistance as the Purchaser may reasonably request.

2.15 Contingent Value Rights, CVR Agent and the CVR Representatives

(1) Each Contingent Value Right will be a direct obligation of Republic and each CVR Holder shall have the
right to receive the payment set forth in Section 2.17. The Contingent Value Rights are an integral part of the consideration payable
for the Shares (other than the Rollover Shares) and will represent only the right to receive the contingent payment set forth in Section
2.17. For greater certainty, the Contingent Value Rights will not represent any equity or ownership interest in the Corporation, the Purchaser,
Republic or any of their affiliates, or in any other Person, and will not be represented by any certificates or other instruments. The
Contingent Value Rights will not have any voting or dividend rights and no interest shall accrue on any amounts payable on the Contingent
Value Rights to any CVR Holder and other than as may be specifically provided for herein, CVR Holders will not have any information or
reporting rights from the Purchaser, Republic or the Corporation.

(2) The Contingent Value Rights may not be sold, assigned, transferred, pledged or encumbered or in any other
manner transferred or disposed of, other than (i) transfers by will or intestacy, by *inter vivos* or testamentary trust where the
Contingent Value Right is to be passed to the beneficiaries upon the death of the trustee, (ii) pursuant to a court order, by operation
of law, (iii) from a trust governed by a registered retirement savings plan, a registered retirement income fund, a deferred profit sharing
plan, a registered education savings plan, a registered disability savings plan, a tax-free savings account or a first home savings account
(each as defined in the Tax Act) or any equivalent trust, fund or plan under any other applicable legislation worldwide to the annuitant
or subscriber of the plan or holder of the account, as the case
may be, or (iv) in connection with the dissolution, sale of all or substantially all the assets, liquidation or termination of a corporation,
limited liability company, partnership or other Person which is the holder thereof, or in accordance with Section 2.15(4). Any attempted
sale, assignment, transfer, pledge, encumbrance or disposition of Contingent Value Rights, in whole or in part, in violation of this Section
2.15(2) shall be void *ab initio* and of no effect.

(3) Prior to the Effective Time, the Corporation shall designate Odyssey Trust Company (the "**CVR Agent**") or such other Person elected by the Corporation and reasonably acceptable to the Purchaser, to act as agent for the
CVR Holders in connection with the Arrangement. Prior to the Effective Time, Republic shall enter into a contingent value rights agent
agreement with the CVR Agent and the CVR Representatives substantially in the form attached hereto as Schedule I (the "**CVR Agreement** "),
subject to such changes as may be reasonable or necessary to reflect reasonable requests of the CVR Agent. To the extent any modification
to the terms of Section 2.15, Section 2.16 or Section 2.17 (and related defined terms) are reasonable or necessary to permit the effective
administration of the CVRs in a manner substantially consistent with the rights and obligations of the parties and the CVR Holders contemplated
by such provisions, the Purchaser, Republic and the Corporation will negotiate and implement such modifications in good faith. Any and
all fees due to the CVR Agent shall be solely borne by Republic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The CVR Agent shall keep a register (the "**CVR Register**") for the purpose of registering
Contingent Value Rights and transfers of Contingent Value Rights as herein provided, which Contingent Value Rights will always remain
in uncertificated form and any entitlement to a payment pursuant to the Contingent Value Rights will only be evidenced by a position on
the CVR Register. The CVR Register shall show one position for CDS & Co. representing all the Shares held by CDS on behalf of the
street name holders of the Shares (other than Republic and the Rollover Shareholders in respect of their Rollover Shares) held by such
holders as of immediately prior to the Effective Time, and any payments to be made under Section 2.17 to any street name holders of Shares
(other than Republic and the Rollover Shareholders in respect of their Rollover Shares) shall be accomplished by the CVR Agent sending
one lump payment to CDS. In the case of any other former holder of record of Shares (other than Republic and Rollover Shareholders in
respect of their Rollover Shares), the Contingent Value Rights shall be registered in the name and address of such former holder of record
as such names and addresses are provided to the Purchaser and Republic by or on behalf of the Corporation prior to the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A CVR Holder may make a written request to the CVR Agent to change such CVR Holder's address of
record in the CVR Register. The written request must be duly executed by the CVR Holder. Subject to any reasonable procedures imposed
by the CVR Agent, the CVR Agent shall promptly record the change of address in the CVR Register upon receipt of such written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the restrictions on transferability set forth in Section 2.15(2), every request made to transfer
a Contingent Value Right must be in writing and accompanied by a written instrument
of transfer in form reasonably satisfactory to the CVR Agent, duly executed by the relevant CVR Holder, his, her or its attorney duly
authorized in writing, personal representative or survivor and setting forth in reasonable detail the circumstances relating to such transfer.
Upon receipt of such written notice, the CVR Agent shall, subject to its reasonable determination that the transfer instrument is in proper
form and the transfer otherwise complies with the other terms and conditions herein, register the transfer of the Contingent Value Rights
in the CVR Register. The CVR Agent may require payment of a sum sufficient to cover any stamp or other tax or governmental charge that
is imposed in connection with any such registration of transfer such payment shall be solely borne by Republic. No transfer of a Contingent
Value Right shall be valid until registered in the CVR Register, and any transfer not duly registered in the CVR Register will be void *ab initio*.

(4) Notwithstanding anything to the contrary contained herein, a CVR Holder may at any time at its option
abandon all of its rights in a Contingent Value Right by written notice to the CVR Agent. The CVR Register shall be updated by the CVR
Agent to reflect the abandonment of the rights of a CVR Holder.

(5) David Weild, Nicholas Thadaney, Thomas Lewis, Hilary Kramer and Demetra
Kalogerou (collectively , the "**CVR Representatives** ")
shall have the authority to monitor compliance with, and enforce, on behalf of the CVR Holders, the obligations of the Purchaser and its
affiliates contemplated by this Section 2.15, Section 2.16 and Section 2.17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permitted by applicable law, none of the CVR Representatives shall owe a fiduciary
duty to the CVR Holders, and the CVR Holders hereby waive any and all fiduciary duties that, absent a waiver, may be implied in law or
equity with respect to the CVR Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the CVR Representatives shall, in such capacity, have any liability for any actions taken or not
taken in connection with the Contingent Value Rights, this Agreement or the transactions contemplated hereby, including the Arrangement,
except to the extent of a Wilful Breach or fraud by that CVR Representative. The Guarantor shall indemnify and hold harmless each of the
CVR Representatives against any and all losses, claims, damages or liabilities incurred by any such Person (in such capacity) in connection
with or as a result of the services of the CVR Representatives hereunder, except to the extent that any such loss, claim, damage or liability
results from the gross negligence, Wilful Breach of fraud of such CVR Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Effective Time, the Corporation will deposit in escrow with the CVR Agent an amount
of US$1,000,000 (one million US dollars) (the "**CVR Escrow Amount** "). The CVR Escrow Amount shall be used by the CVR Representatives,
at the sole discretion of the majority of the CVR Representatives, solely in order to cover any costs and expenses (including attorney
fees and other fees associated with litigation processes) incurred in connection with any failure by Republic to provide the CVR Agent
with the CVR Amount at least five (5) Business Days prior to the CVR Payment Date
or provide instructions to the CVR Agent to distribute the CVR Amount to the CVR Holders on the CVR Payment Date in accordance with the
terms of the CVR Agreement. The CVR Agent shall transfer the CVR Escrow Amount either to the Corporation or to Republic, as instructed
in writing by Republic, promptly, and in any event no later than five (5) Business Days, following the satisfaction of the obligations
of Republic under the CVR Agreement.

(6) The CVR Representatives shall be express third party beneficiaries of the provisions of this Section 2.15,
Section 2.16 and Section 2.17 with full authority on behalf of the CVR Holders to enforce such provisions and to settle, negotiate or
compromise any claims thereunder. Any decision, action or instruction of the majority of the CVR Representatives with respect to the matters
set forth in this Section 2.15, Section 2.16 and Section 2.17 shall be final, binding and conclusive on all CVR Holders.

2.16 Efforts

From and after the Effective Time, the Purchaser shall (and shall cause the Corporation and its Subsidiaries to) use commercially reasonable efforts to continue operating the business of the Corporation and its Subsidiaries in a manner generally consistent with the manner in which the business of the Corporation and its Subsidiaries was operated prior to the Effective Time, with such modifications as reasonably determined by the Purchaser from time to time following the Effective Time.

2.17 CVR Payment Procedures

(1) Following the Effective Date, each Contingent Value Right shall entitle the holder thereof to a payment
from Republic equal to the CVR Amount on the date that is 18 months following the Escrow Deposit Date or earlier upon the occurrence of,
or the filing of a request to a competent authority in connection with, a Dissolution Event of Republic (the "**CVR Payment Date** ").

(2) Promptly, and in any event no later than five (5) Business Days, prior the CVR Payment Date, Republic
shall deposit (or cause to be deposited) with the CVR Agent, by wire transfer of immediately available funds, a cash amount, for distribution
to the CVR Holders in accordance with the terms of the CVR Agreement, equal to the CVR Amount. Republic and the CVR Representatives shall,
substantially concurrent with such deposit, instruct the CVR Agent to promptly (and in any event within five (5) Business Days after such
deposit) distribute such required funds to the CVR Holders.

(3) The Parties agree the Contingent Value Rights shall constitute, if and when payment is made, consideration
for the Shares (other than the Rollover Shares) at the Effective Time.

**ARTICLE 3**

**REPRESENTATIONS AND WARRANTIES**

3.1 Representations and Warranties of the Corporation

(1) Except as set forth in the Corporation Disclosure Letter, the Corporation hereby represents and warrants
to the Purchaser as set forth in Schedule C hereto and acknowledges and agrees that the Purchaser is relying upon such representations
and warranties in connection with the entering into of this Agreement and the consummation of the Arrangement.

(2) Except for the representations and warranties set forth in this Agreement, neither the Corporation nor
any other Person has made, or makes any other, express or implied representation and warranty, either written or oral, on behalf of the
Corporation.

(3) The representations and warranties of the Corporation contained in this Agreement shall not survive the
completion of the Arrangement and shall expire and be terminated on the earlier of the Effective Time and the date on which this Agreement
is terminated in accordance with its terms.

3.2 Representations and Warranties of the Purchaser

(1) The Purchaser hereby represents and warrants to the Corporation as set forth in Schedule D and acknowledges
and agrees that the Corporation is relying upon such representations and warranties in connection with the entering into of this Agreement
and the consummation of the Arrangement.

(2) Except for the representations and warranties set forth in this Agreement, neither the Purchaser nor any
other Person has made, or makes any other, express or implied representation and warranty, either written or oral, on behalf of the Purchaser.

(3) The representations and warranties of the Purchaser contained in this Agreement shall not survive the
completion of the Arrangement and shall expire and be terminated on the earlier of the Effective Time and the date on which this Agreement
is terminated in accordance with its terms.

**ARTICLE 4**

**COVENANTS**

4.1 Conduct of Business of the Corporation

(1) The Corporation covenants and agrees that, during the period from the date of this Agreement until the
earlier of the Effective Time and the time that this Agreement is terminated in accordance with its terms, the Corporation shall, and
shall cause each of its Subsidiaries to, conduct business in the Ordinary Course, except as set out in Section 4.1(1) of the Corporation
Disclosure Letter, as required or permitted by this Agreement, as required by Law, in accordance with operating plans approved by the
Board, or with the prior written consent of the Purchaser.

(2) Without limiting the generality of Section 4.1(1) and except as set out in Section 4.1(2) of the Corporation
Disclosure Letter, as required or permitted by this Agreement, as required by Law, in accordance with operating plans approved by the
Board, or with the prior written consent of the Purchaser, the Corporation covenants and agrees that, during the period from the date
of this Agreement until the earlier of the Effective Time and the time that this Agreement is terminated in accordance with its terms,
the Corporation shall, and shall cause each of its Subsidiaries to (a) duly and timely file with the appropriate Governmental Entity all
material Tax Returns required to be filed by any of them, which shall be correct and complete in all respects and (b) pay, withhold, collect
and remit to the appropriate Governmental Entity in a timely fashion all amounts required to be so paid, withheld collected or remitted.
The Corporation shall keep the Purchaser reasonably informed of any events, discussions, notices or changes with respect to any Tax or
regulatory Proceeding involving the Corporation or any of its Subsidiaries.

(3) Without limiting the generality of Section 4.1(1) and except as set out in Section 4.1(3) of the Corporation
Disclosure Letter, as required or permitted by this Agreement, as required by Law, in accordance with operating plans approved by the
Board or with the prior written consent of the Purchaser, the Corporation covenants and agrees that, until the earlier of the Effective
Time or the time that this Agreement is terminated in accordance with its terms, the Corporation shall, and shall cause its Subsidiaries,
to use commercially reasonable efforts to preserve intact the current business organization of the Corporation and its Subsidiaries, keep
available the services of the Corporation Employees, contractors and agents of the Corporation and its Subsidiaries and maintain good
relations with, and the goodwill of, suppliers, customers, landlords, licensors, lessors, creditors, distributors, employees, counterparties
and all other Persons having business relationships with the Corporation or any of its Subsidiaries, and the Corporation shall not, and
shall not permit any of its Subsidiaries, directly or indirectly to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend its Constating Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) split, combine or reclassify any shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) redeem, repurchase, or otherwise acquire or offer to redeem, repurchase or otherwise acquire, any of its
securities other than pursuant to a normal course issuer bid approved by the Cboe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) adopt a plan of liquidation or resolution providing for the liquidation or dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) enter into, or resolve to enter into, any agreement that has the effect of creating a joint venture, partnership,
shareholders' agreement or similar relationship between the Corporation or any of its Subsidiaries and another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) engage in any transaction with any director, Officer or employee of the Corporation or any of its Subsidiaries
or any of their respective Affiliates or Associates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) issue, grant, deliver, sell, pledge or otherwise encumber, or authorize the issuance, grant, delivery,
sale, pledge or other encumbrance or create any derivative interest in, any securities of the Corporation or its Subsidiaries or other
equity or voting interests, or any options, warrants
or similar rights exercisable or exchangeable for or convertible into, or otherwise evidencing a right to acquire such securities or other
equity or voting interests, or any stock appreciation rights, phantom stock awards or other rights that are linked to the price or the
value of the Shares, except for the issuance of Shares issuable upon the exercise of the currently outstanding Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) reorganize, merge, combine or amalgamate with any Person or acquire (by merger, amalgamation, consolidation,
acquisition of securities, assets or otherwise), directly or indirectly, in one transaction or in a series of transactions, any businesses
or enterprises, or acquire assets, securities, properties, or other interests of any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend the terms of any securities of the Corporation or its subsidiaries, including any outstanding indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) reduce the stated capital of its shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) sell, pledge, hypothecate, lease, license, sell and lease back, mortgage, dispose of, lose the right to
use, surrender or encumber or otherwise transfer, any of its assets, securities, properties, interests or businesses, except in the Ordinary
Course or in respect of assets whose book value, individually or in the aggregate, does not exceed $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) make any capital expenditure or commitment to do so which individually or in the aggregate exceeds $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) prepay any long-term indebtedness (whether in account of borrowed money or otherwise) before its scheduled
maturity or increase, create, incur, assume or otherwise become liable for any indebtedness for borrowed money or guarantees thereof or
debt securities, other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) commence, cancel, waive, release, assign, settle or compromise any claim (other than insured claims),
action or proceeding before a Governmental Entity (i) relating to the assets or the business of the Corporation or any of its Subsidiaries,
in excess of an aggregate amount of $1,000,000 or which would reasonably be expected to impede, prevent or materially delay the consummation
of the transactions contemplated by this Agreement, or (ii) brought by any present, former or purported holder of securities of the Corporation
or any of its Subsidiaries in connection with the transactions contemplated by this Agreement or the Plan of Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) make any loan or advance to, or any capital contribution or investment in, or assume, guarantee or otherwise
become liable with respect to the liabilities or obligations of, any Person (other than in respect of a liability or obligation incurred
by a Subsidiary of the Corporation, provided that the incurrence of such liability or obligation by such Subsidiary does not constitute
a breach of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) enter into any interest rate, currency, equity or commodity swaps, hedges, derivatives, forward sales
contracts or similar financial instruments, other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) make any bonus or profit sharing distribution or similar payment of any kind, other than in accordance
with the terms of an Employee Plan in force as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) make any material change in the Corporation's methods of accounting, except as required by concurrent
changes in IFRS or pursuant to written instructions, comments or orders of a Securities Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) grant any general increase in the rate of wages, salaries, bonuses or other remuneration of any Corporation
Employees, directors or Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) except as required by Law or otherwise in the Ordinary Course: (i) adopt, enter into or amend any Employee
Plan or Contract with a Corporation Employee; (ii) grant, accelerate, increase or otherwise amend any payment, award or other benefit
payable to, or for the benefit of, any director or Officer of the Corporation or any of its Subsidiaries or to any Corporation Employee
other as required pursuant to an existing Employee Plan or Contract; (iii) hire or terminate other than for cause the employment of any
Officer-level or management-level Corporation Employee; (iv) grant any rights of indemnification, retention, severance, change of control,
bonus or termination pay to, or enter into any employment agreement, indemnity agreement, deferred compensation or bonus compensation
agreement (or amend such existing agreement) with, any Officer or director of the Corporation or its Subsidiaries or to any Corporation
Employee; or (v) make any loan to any director or Officer of the Corporation or its Subsidiaries or to any Corporation Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) amend or modify in any material respect, or terminate or waive any right under, any Material Contract,
or enter into any Contract that would be a Material Contract if in effect on the date hereof, or fail to enforce any material breach of
any Material Contract of which it becomes aware, or materially breach or violate or be in default under any Material Contract, except
for the entering into of any Contract with suppliers, customers, distributors and agents in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) enter into or renew any Contract containing any limitation or restriction on the ability of the Corporation
or its Subsidiaries or, following completion of the transactions contemplated hereby, the ability of the Purchaser or any of its Affiliates,
to engage in any type of activity or business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) enter into an agreement that could result in the payment by the Corporation or any of its Subsidiaries
of a finder's fee, success fee or other similar fee in connection with the Arrangement or the other transactions contemplated in
this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) file any Tax Return inconsistent with past practice unless required by applicable Law, amend any Tax Return,
make, change or revoke any entity classification or other material Tax election, settle or compromise any material Tax claim, assessment,
reassessment, liability or other dispute, change any annual accounting period, adopt or change any accounting
method with respect to material Taxes, enter into any closing agreement with a Governmental Entity, surrender any right to claim a refund
of an amount of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim, assessment or reassessment,
or enter into or make any voluntary disclosure with respect to any amount of Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) take any action or fail to take any action that would, or would reasonably be expected to (i) cause the
Tax attributes of assets of the Corporation or any of its Subsidiaries or the amount of Tax loss carry-forwards of the Corporation or
any of its Subsidiaries to materially and adversely change from what is reflected in their respective Tax Returns or (ii) render such
Tax loss carry-forwards unusable (in whole or in part) by any of them or any successor of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) take any action or fail to take any action which action or failure to act would, or would reasonably be
expected to, result in the loss, expiration or surrender of, or the loss of any material benefit under, or reasonably be expected to cause
any Governmental Entities to institute proceedings for the suspension, revocation or limitation of rights under, any material Authorizations,
or fail to pursue with commercially reasonable due diligence any pending applications to any Governmental Entities for material Authorizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) except as contemplated in Section 4.7 and except for scheduled
renewals in the Ordinary Course, amend, modify or terminate any material insurance (or re-insurance) policy of the Corporation or any
of its Subsidiaries in effect on the date of this Agreement and use commercially reasonable efforts to cause the current insurance (or
re-insurance) policies maintained by the Corporation, including directors' and Officers' insurance, not to be cancelled or
terminated and to prevent any of the coverage thereunder from lapsing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) waive, release, abandon, let lapse, grant or transfer any
material right or exclusive sublicense under, or amend, modify or change in any material respect, any existing material license or right
to use the Intellectual Property of a third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) grant or commit to grant a license or otherwise transfer
any Owned Intellectual Property or right in or in respect thereto except for non-exclusive licenses entered into in the Ordinary Course,
or as required pursuant to a Contract in force as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) take any action which would render, or which reasonably may
be expected to render, any representation or warranty made by the Corporation in this Agreement untrue or inaccurate in any material
respect (disregarding for this purpose all materiality or Material Adverse Effect qualifications contained therein) at any time prior
to the Effective Date if then made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) materially change its business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) authorize, agree, resolve or otherwise commit to do any of
the foregoing.

4.2 Regarding the Arrangement

(1) The Corporation shall, and shall cause its Subsidiaries to, perform all obligations required or advisable
to be performed by the Corporation or its Subsidiaries under this Agreement, cooperate with the Purchaser in connection therewith, and
shall use its commercially reasonable efforts to perform all such other actions as may be necessary or advisable in order to consummate
or make effective, as soon as reasonably practicable, the Arrangement and, without limiting the generality of the foregoing, the Corporation
shall, and shall cause its Subsidiaries to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) use its commercially reasonable efforts to satisfy all conditions precedent set forth in Article 6 and
carry out the terms of the Interim Order and Final Order applicable to it and comply promptly with all requirements imposed by Law on
it or its Subsidiaries with respect to this Agreement or the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use its commercially reasonable efforts to effect all necessary registrations, filings and submissions
of information required by Governmental Entities from it relating to the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use its commercially reasonable efforts to, upon reasonable consultation with the Purchaser, oppose, lift
or rescind any injunction, restraining or other order, decree, judgment or ruling seeking to restrain, enjoin or otherwise prohibit or
adversely affect the consummation of the Arrangement and defend, or cause to be defended, any proceedings to which it or any of its Subsidiaries
is a party or brought against it or any of its Subsidiaries or any of their directors or Officers challenging the Arrangement or this
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its commercially reasonable efforts to obtain and maintain all third party consents, waivers or approvals
that are required to be obtained under Contracts in connection with the Arrangement or in order to maintain Contracts in full force and
effect following completion of the Arrangement, in each case, on terms that are reasonably satisfactory to the Purchaser, and without
paying, and without committing itself or the Purchaser to pay, any consideration or incur any liability or obligation without the prior
written consent of the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not take any action, or refraining from taking any commercially reasonable action, or permitting any action
to be taken or not taken, which is inconsistent with this Agreement or the Arrangement or which would reasonably be expected to prevent,
delay or otherwise impede the consummation of the Arrangement or the transactions contemplated by this Agreement, other than as permitted
under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its commercially reasonable efforts to assist in obtaining the resignations and releases (in a form
satisfactory to the Purchaser, acting reasonably) of each member of the Board and each member of the board of directors of the Subsidiaries
to the extent requested by the Purchaser, and causing them to be replaced by Persons nominated by the Purchaser effective as of the Effective
Time, subject to these directors obtaining a satisfactory release in their favour
from the Purchaser, the Corporation and the relevant Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) use commercially reasonable efforts to cause each of the senior officers and independent directors of
the Corporation who own Shares to comply with and perform his or her obligations under their respective Support and Voting Agreement.

(2) The Purchaser shall perform all obligations required or advisable to be performed by it under this Agreement,
cooperate with the Corporation in connection therewith, and shall use its commercially reasonable efforts to perform all such other actions
as may be necessary or advisable in order to consummate and make effective, as soon as reasonably practicable, the Arrangement and, without
limiting the generality of the foregoing, the Purchaser shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) use its commercially reasonable efforts to satisfy the conditions precedent set forth in Article 6 and
carry out the terms of the Interim Order and Final Order applicable to it and comply promptly with all requirements imposed by Law on
it with respect to this Agreement or the Arrangement, provided, however, that under no circumstances will the Purchaser be required to
agree or consent to any increase in the Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use its commercially reasonable efforts to effect all necessary registrations, filings and submissions
of information required by Governmental Entities from it relating to the Arrangement or the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use its commercially reasonable efforts, upon reasonable consultation with the Corporation, to oppose,
lift or rescind any injunction, restraining or other order, decree, judgment or ruling seeking to restrain, enjoin or otherwise prohibit
or adversely affect the consummation of the Arrangement and defend, or cause to be defended, any proceedings to which it is a party or
brought against it or its directors or Officers and challenging the Arrangement or this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not take any action, or refraining from taking any commercially reasonable action, or permitting any action
to be taken or not taken, which is inconsistent with this Agreement or which would reasonably be expected to prevent, materially delay
or otherwise impede the consummation of the Arrangement or the transactions contemplated by this Agreement, other than as permitted under
this Agreement.

Notwithstanding anything to the contrary in this Agreement, in connection with obtaining any waiver, consent or approval from any with respect to any transaction contemplated by this Agreement, the Purchaser will not be required to pay or commit to pay to such person whose waiver, consent or approval is being solicited any cash or other consideration, make any commitment or incur any liability or other obligation.

(3) The Corporation shall promptly notify the Purchaser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "*material change*" (as defined in the *Securities Act* (Ontario)) in relation to
the Corporation or its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any event, circumstance or development that has had or would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any material breach of this Agreement by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any notice or other communication from any Person alleging (i) that the consent, waiver or approval of
such Person is required in connection with this Agreement or the Arrangement, or (ii) such Person is terminating or otherwise materially
adversely modifying a Material Contract as a result of the Arrangement or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any material notice or other communication from any Governmental Entity in connection with this Agreement
(and, subject to Law, the Corporation shall contemporaneously provide a copy of any such written notice or communication to the Purchaser);
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any actions, suits, arbitrations or other proceedings commenced or, to the knowledge of the Corporation,
threatened against the Corporation or its Subsidiaries or affecting their assets that, if pending on the date of this Agreement, would
have been required to have been disclosed pursuant to Section 26(a) of the Corporation Disclosure Letter or that relate to this Agreement
or the Arrangement.

4.3 Regulatory Approvals

(1) The Purchaser, Republic and the Corporation, or where applicable, the Parties jointly, will promptly make
all filings as are reasonably required to obtain the Regulatory Approvals, and will provide all information to Governmental Entities as
may be requested, required or ordered pursuant to statutory and non-statutory requests for information, supplemental information requests
and any court orders in connection with the Regulatory Approvals.

(2) The Purchaser, Republic and the Corporation will exchange advance drafts of all proposed submissions,
filings, applications, correspondence and other documents to be filed with any Governmental Entity in respect of this Agreement or the
Arrangement, will consider in good faith any suggestions and comments made in relation thereto by the other Party and its counsel, and
will provide the other Party and its counsel with final, as-submitted copies of all such submissions, filings, applications, correspondence
and other documents; provided, however, that competitively sensitive information may be provided only to the external legal counsel of
the other Party. The Purchaser, Republic and the Corporation will keep each other fully apprised of all communications with any Governmental
Entity in respect of this Agreement or the Arrangement, including providing copies to each other on a timely basis of all communications
that are received from Governmental Entities, and will not participate in such communications or meetings with Governmental Entities without
giving the other Party and its counsel the opportunity to participate therein, except to the extent that competitively sensitive information
is discussed, in which case external legal counsel for the relevant Party will be given the opportunity to participate.

(3) The Parties will, and will cause its affiliates to, use its best efforts to promptly and expeditiously
take all steps in order to obtain the Regulatory Approvals so as to permit the Effective Time to occur at the earliest possible date and
in any event prior to the Outside Date including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not withdrawing any filings or notifications in respect of the Regulatory Approvals or agreeing to extend
any waiting periods or review periods without the prior written consent of the other Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if any objections are asserted with respect to the transactions contemplated by this Agreement under any
Law, or if any proceeding is instituted or threatened by any Governmental Entity challenging or which could lead to a challenge of any
of the transactions contemplated by this Agreement as not in compliance with Law or as not satisfying any applicable legal text under
a Law necessary to obtain the Regulatory Approvals, use its best efforts to avoid and resolve such objection or proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not take any action, or refrain from taking any commercially reasonable action, or permitting any action
to be taken or not taken, which would reasonably be expected to prevent, materially delay or otherwise impede the consummation of the
Arrangement or the transactions contemplated by this Agreement, including, for the avoidance of doubt, the taking of any action or the
entering into of any transaction, including any merger, acquisition, joint venture, disposition or contract that would reasonably be expected
to prevent, delay or impede the obtaining of or increase the risk of not obtaining, any Regulatory Approval or otherwise prevent, delay
or impede the consummation of the transactions contemplated by this Agreement.

(4) For greater certainty, neither the Purchaser nor Republic is under any obligation to take any steps or
actions or refrain from taking any steps or actions that would materially adversely affect such Party's right to own, use or exploit
its business, operations or assets or those of its affiliates, the Corporation or its subsidiaries or to negotiate or agree to the sale,
divestiture or disposition by the Purchaser or Republic of its business, operations or assets or those of its affiliates, the Corporation
or its subsidiaries, or to any form of behavioral remedy including an interim or permanent hold separate order.

4.4 Access to Information; Confidentiality

(1) From the date hereof until the earlier of the Effective Time and the termination of this Agreement, subject
to Law and the Confidentiality Agreement, the Corporation shall, and shall cause its Subsidiaries to give to the Purchaser, Republic and
their Representatives, upon reasonable notice, reasonable access to its and its Subsidiaries' Books and Records, Contracts and financial
and operating data or other information with respect to the assets or business of the Corporation as the Purchaser, Republic or their
Representatives may from time to time reasonably request in connection with strategic and integration planning and for any other reasons
reasonably relating to the transactions contemplated herein, so long as the access does not unduly interfere with the conduct of the business
of the Corporation.

(2) The Purchaser and Republic acknowledges that the Confidentiality Agreement shall continue to apply and
that all information provided to the Purchaser, Republic and their Representatives under Section 4.4(1) that is non-public or proprietary
in nature shall be subject to the terms of the Confidentiality Agreement. If this Agreement is terminated in accordance with its terms,
the obligations of the parties under the Confidentiality Agreement shall survive the termination of this Agreement in accordance with
the terms of the Confidentiality Agreement.

4.5 Public Communications

(1) The Parties shall cooperate in the preparation of presentations, if any, to Securityholders regarding
the Arrangement. A Party must not issue any press release or make any other public statement or disclosure with respect to this Agreement
or the Arrangement without the written consent of the other Party (which consent shall not be unreasonably withheld, conditioned or delayed),
and the Corporation must not make any filing with any Governmental Entity (other than as required under Securities Laws) with respect
to this Agreement or the Arrangement without the written consent of the Purchaser and Republic (which consent shall not be unreasonably
withheld, conditioned or delayed); provided that any Party that is required to make disclosure by Law with respect to the Arrangement
or this Agreement shall use its commercially reasonable efforts to give the other Parties prior oral or written notice and a reasonable
opportunity for them and their legal counsel to review or comment on the disclosure or filing (other than with respect to confidential
information of the disclosing Party contained in such disclosure or filing). The Party making such disclosure required by Law shall give
reasonable consideration to any comments made by the other Parties or their legal counsel, and if such prior notice is not possible, shall
give such notice immediately following the making of such disclosure or filing. The Parties acknowledge that this Agreement may be filed
under the Corporation's profile on SEDAR+; provided that each Party will provide reasonable opportunity for the other Party to review
or comment on the disclosure or filing (including any proposed redactions).

(2) The Corporation shall provide reasonable opportunity for the Purchaser, Republic and their outside counsel
to review or comment on any disclosure or filing made pursuant to Securities Laws not otherwise referred to in Section 4.5(1). The Corporation
shall give reasonable consideration to any comments made by the Purchaser, Republic or their outside counsel prior to making such disclosure
or filing, provided that all information relating solely to the Purchaser and Republic, and any information describing the terms of the
Arrangement and/or the Plan of Arrangement, must be in a form and content satisfactory to the Purchaser and Republic, acting reasonably.

4.6 Notice and Cure Provisions

(1) Each Party shall promptly notify the other Party in writing of the occurrence, or failure to occur, of
any event or state of facts which occurrence or failure would, or would be reasonably expected to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cause any of the representations or warranties of such Party contained in this Agreement to be untrue
or inaccurate in any material respect at any time from the date of this Agreement until the earlier of the Effective Time and the time
this Agreement is terminated in accordance with its terms; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in the failure to comply with or satisfy any covenant, condition or agreement to be complied with
or satisfied by such Party prior to or at the Effective Time under this Agreement.

(2) Notification provided under Section 4.6(1) will not affect the representations, warranties, covenants,
agreements or obligations of the Parties (or remedies with respect thereto) or the conditions to the obligations of the Parties under
this Agreement.

(3) The Purchaser may not elect to exercise its right to terminate this Agreement pursuant to Section 7.2(4)(a)
[ *Breach of Representation or Warranty or Failure to Perform Covenant by the Corporation* ] and the Corporation may not elect to exercise
its right to terminate this Agreement pursuant to Section 7.2(3)(a) [ *Breach of Representation or Warranty or Failure to Perform Covenant by the Purchaser* ], unless the Party seeking to terminate the Agreement (the "**Terminating Party**") has delivered
a written notice (a "**Termination Notice**") to the other Party (the "**Breaching Party**") specifying
in reasonable detail all breaches of covenants, representations and warranties or other matters which the Terminating Party asserts as
the basis for termination. After delivering a Termination Notice, provided the Breaching Party is proceeding diligently to cure such matter
and such matter is capable of being cured prior to the Outside Date (with any Wilful Breach being deemed to be incurable), the Terminating
Party may not exercise such termination right until the earlier of (a) the Outside Date, and (b) if such matter has not been cured by
the date that is 10 Business Days following receipt of such Termination Notice by the Breaching Party, such date. If the Terminating Party
delivers a Termination Notice prior to the date of the Meeting or the making of the application for the Final Order, unless the Parties
agree otherwise, the Corporation shall postpone or adjourn the Meeting or delay making the application for the Final Order, or both, to
the earlier of (a) 5 Business Days prior to the Outside Date and (b) the date that is 10 Business Days following receipt of such Termination
Notice by the Breaching Party (without causing any breach of any other provision contained herein).

4.7 Insurance and Indemnification

(1) Prior to the Effective Time, the Corporation shall and, if the Corporation is unable to, the Purchaser
shall cause the Corporation as of the Effective Time, to obtain and fully pay the premium for the extension of the directors' and
Officers' liability coverage of the Corporation's and its Subsidiaries' existing directors' and Officers'
insurance policies for a claims reporting or run-off and extended reporting period and claims reporting period of six years from and after
the Effective Time with respect to any claim related to any period of time at or prior to the Effective Time from the Corporation's
current insurance carriers or an insurance carrier with the same or better credit rating with respect to directors' and Officers'
liability insurance ()"**D&O Insurance** "), and with terms, conditions, retentions and limits of liability that are
no less advantageous to the present and former directors and Officers of the Corporation and its
Subsidiaries than the coverage provided under the Corporation's and its Subsidiaries' existing policies with respect to any
actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of duty or any matter claimed against a present
or former director or Officer of the Corporation or any of its Subsidiaries by reason of him or her serving in such capacity that existed
or occurred at or prior to the Effective Time (including in connection with the approval or completion of this Agreement, the Arrangement
or the other transactions contemplated by this Agreement or arising out of or related to this Agreement and the transactions contemplated
hereby); provided, however, that the total premium for such insurance policy shall not exceed 300% of the premium payable by Corporation
for its current fiscal year. If the Corporation for any reason fails to obtain such run off insurance policies as of the Effective Time,
the Purchaser shall, or shall cause the Corporation and its Subsidiaries to, maintain in effect for a period of six years from and after
the Effective Time the D&O Insurance in place as of the date hereof with terms, conditions, retentions and limits of liability that
are no less advantageous than the coverage provided under the Corporation's and its Subsidiaries' existing policies as of
the date hereof, or Corporation shall purchase comparable D&O Insurance for such six-year period with terms, conditions, retentions
and limits of liability that are at least as favourable to the present and former directors and Officers of the Corporation and its Subsidiaries
as provided in Corporation's existing policies as of the date hereof.

(2) The Purchaser shall cause the Corporation or the applicable Subsidiary of the Corporation to honour all
rights to indemnification or exculpation now existing in favour of present and former employees, Officers and directors of the Corporation
and its Subsidiaries to the extent that they are contained in their Constating Documents or disclosed in Section 4.7(2) of the Corporation
Disclosure Letter and acknowledges that such rights, to the extent that they are contained in their Constating Documents or disclosed
in Section 4.7(2) of the Corporation Disclosure Letter, shall survive the completion of the Plan of Arrangement and shall continue in
full force and effect in accordance with their terms.

(3) This Section 4.7 shall survive the consummation of the Arrangement and
is intended to be for the benefit of, and shall be enforceable by, the present and former directors and Officers of the Corporation and
its Subsidiaries and their respective heirs, executors, administrators and personal representatives (the "**Indemnified Persons** ")
and shall be binding on the Purchaser, the Corporation and their respective successors and assigns, and, for such purpose, the Corporation
hereby confirms that it is acting as agent on behalf of the Indemnified Persons.

4.8 Cboe De-Listing

(1) Each of the Corporation and the Purchaser agrees to use their
commercially reasonable efforts to cooperate with the other Party in taking, or causing to be taken, all actions necessary to enable
(i) the delisting of the Shares from the Cboe (including, if requested by the Purchaser, such items as may be necessary to delist the
Shares on the Effective Date) and (ii) the Corporation to cease being a reporting issuer under applicable Canadian Securities Laws, in
each case, as promptly as practicable following the Effective Time. Notwithstanding the foregoing, the Corporation will continue to qualify
as a "public corporation" for purposes of the Tax Act until the Effective Time.

4.9 Tax Cooperation

The Parties shall reasonably cooperate in good faith to determine whether any transaction contemplated by this Agreement or the Plan of Arrangement, or any transaction that may be considered to be part of the same series of transactions as the transactions contemplated by this Agreement or the Plan of Arrangement, is a "reportable transaction" (as defined in section 237.3 of the Tax Act), is a "notifiable transaction" (as defined in section 237.4 of the Tax Act), or is otherwise required to be reported to any applicable Governmental Entity under any analogous provision of any comparable Law of any province or territory of Canada. If any Party determines that any such transaction is reportable then it shall so notify all other Parties and the Parties shall reasonably cooperate in good faith (including sharing of draft reporting forms) to make any such report on a timely basis. Notwithstanding the foregoing and for greater certainty, each Party shall be permitted to report any transaction to an applicable Governmental Entity to the extent that such Party determines, acting reasonably, that such reporting is required by applicable Law.

4.10 Rollover Agreements

The Purchaser shall enter into additional Rollover Agreements with Shareholders identified by the Corporation that collectively, hold not more than 40% of the outstanding Shares (on a fully diluted basis assuming a cashless exercise by holders of Options in accordance with the terms of the Incentive Plan and the settlement of all outstanding Restricted Share Units and inclusive of any Shares that are subject to Rollover Agreements entered into as of the date hereof and the Shares held by Republic as of the date hereof).

**ARTICLE 5**

**ADDITIONAL COVENANTS REGARDING NON-SOLICITATION**

5.1 Non-Solicitation

(1) Except as expressly
 provided in this Article 5, the Corporation shall not, and shall cause its Subsidiaries not to, directly
 or indirectly, through any of its Representatives or Affiliates, or otherwise, and shall not permit
 any such Person to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) solicit,
 assist, initiate, knowingly encourage or otherwise knowingly facilitate (including by way
 of furnishing or providing copies of, access to, or disclosure of, any confidential information,
 properties, facilities, Books or Records or entering into any form of agreement, arrangement
 or understanding) any inquiry, proposal or offer (whether public or otherwise) that constitutes
 or may reasonably be expected to constitute or lead to, an Acquisition Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) enter
 into or otherwise engage, co-operate or participate in any discussions or negotiations with,
 or furnish information to, or otherwise co-operate in any way with, any Person (other than
 the Purchaser and its Affiliates) regarding any inquiry, proposal or offer that constitutes
 or may reasonably be expected to constitute or lead to, an Acquisition Proposal provided
 that the Corporation may (i) advise any Person of the restrictions of this Agreement, and
 (ii) advise any Person making an Acquisition Proposal that the Board has determined that
 such Acquisition Proposal does not constitute a Superior Proposal, in each case if, in so
 doing, no other information that is prohibited from being communicated under this Agreement
 is communicated to such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make a Change
 in Recommendation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) accept,
 approve, endorse, recommend or publicly propose to accept endorse or recommend, or take no
 position or remain neutral with respect to, any Acquisition Proposal, it being understood
 that publicly taking no position or a neutral position with respect to a publicly announced,
 or otherwise publicly disclosed, Acquisition Proposal for a period of no more than five Business
 Days following such public announcement or public disclosure will not be considered to be
 in violation of this Section 5.1 (or in the event that the Meeting is scheduled to occur
 within such five Business Day period, prior to the third Business Day prior to the date of
 the Meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) accept
 or enter into or publicly propose to accept or enter into any agreement, letter or intent,
 term sheet, understanding or arrangement (in each case, whether or not legally binding) with
 any Person (other than the Purchaser or its Affiliates) in respect of an Acquisition Proposal
 (other than a confidentiality agreement permitted by and in accordance with Section 5.3(1)(d)).

(2) The Corporation
 shall, and shall cause its Subsidiaries and their respective Representatives to, promptly cease and
 terminate, and cause to be terminated, any solicitation, encouragement, discussion, negotiations, or
 other activities with any Person (other than the Purchaser and its Affiliates) with respect to any inquiry,
 proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, an Acquisition
 Proposal, and in connection with such termination shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately
 discontinue access to and disclosure of all information regarding the Corporation or any
 of its Subsidiaries, including any data room, any confidential information, properties, facilities
 and Books and Records; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) promptly,
 and in any event within two (2) Business Days of the date hereof, request, and exercise all
 rights it has to require (i) the prompt return or destruction of all copies of any confidential
 information regarding the Corporation or any of its Subsidiaries provided to any Person other
 than the Purchaser, its Affiliates and its Representatives, and (ii) the destruction of all
 material including or incorporating or otherwise reflecting such confidential information
 regarding the Corporation or any of its Subsidiaries, to the extent that such information
 has not previously been returned or destroyed, using its commercially reasonable efforts
 to ensure that such requests are fully complied with in accordance with the terms of such
 rights or entitlements.

(3) The Corporation
 represents and warrants that it has not waived any confidentiality, standstill, non-disclosure, non-solicitation,
 use, business purpose or similar agreement, restriction or covenant to which the Corporation or any
 of its Subsidiaries is a Party, and the Corporation covenants and agrees that (a) the Corporation shall
 use commercially reasonable efforts to enforce each confidentiality, standstill, non-disclosure, non-solicitation,
 use, business purpose or similar agreement, restriction or covenant to which the Corporation or any
 of its Subsidiaries is a party, and (b) neither the Corporation, nor any of its Subsidiaries nor any
 of their respective Representatives have released or will, without the prior written consent of the
 Purchaser (which may be withheld or delayed in the Purchaser's sole and absolute discretion),
 release any Person from, or waive, amend, suspend or otherwise modify such Person's obligations
 respecting the Corporation, or any of its Subsidiaries, under any confidentiality or similar agreement
 or restriction to which the Corporation or any of its Subsidiaries is a party.

5.2 Notification of Acquisition Proposals

(1) If the Corporation
 or any of its Subsidiaries or any of their respective Representatives, receives or otherwise becomes
 aware of any inquiry, proposal or offer that constitutes or may reasonably be expected to constitute
 or lead to an Acquisition Proposal, or any request for copies of, access to, or disclosure of, confidential
 information relating to the Corporation or any of its Subsidiaries, including but not limited to information,
 access, or disclosure relating to the properties, facilities and Books and Records, or any discussions
 or negotiations are sought to be initiated or continued with the Corporation, its Subsidiaries or any
 of their respective Representatives in connection with Acquisition Proposal, the Corporation shall promptly
 notify the Purchaser, at first orally, and then in writing, of such Acquisition Proposal, inquiry, proposal,
 offer or request, including a description of its material terms and conditions, the identity of all
 Persons making the Acquisition Proposal, proposal, offer or request, and copies of documents, material
 correspondence or other material received in respect of, from or on behalf of any such Person.

(2) The Corporation
 shall keep the Purchaser fully informed, on a prompt basis, of the status of developments and negotiations
 with respect to such Acquisition Proposal, inquiry, proposal, offer or request, including any changes,
 modifications or other amendments to any such Acquisition Proposal, inquiry, proposal, offer or request
 and shall provide to the Purchaser copies of all material correspondence if in writing or electronic
 form, and if not in writing or electronic form, a description of the material terms of such correspondence
 communicated to the Corporation by or on behalf of any Person making such Acquisition Proposal, inquiry,
 proposal, offer or request.

5.3 Responding to an Acquisition Proposal

(1) Notwithstanding
 Section 5.1, if at any time prior to obtaining the Required Shareholder Approval, the Corporation receives
 a written Acquisition Proposal, the Corporation may engage in or participate in discussions or negotiations
 with such Person regarding such Acquisition Proposal, and may provide copies of, access to or disclosure
 of confidential information, properties, facilities, or Books and Records, provided that if and only
 if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Board first determines in good faith, after consultation with its financial advisors and
 its outside legal counsel, that such Acquisition Proposal constitutes, or would reasonably
 be expected to constitute or lead to a Superior Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such
 Person making the Acquisition Proposal was not restricted from making such Acquisition Proposal
 pursuant to an existing confidentiality, non-disclosure, use, business purpose or similar
 restriction with the Corporation or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Corporation has been, and continues to be, in compliance with its obligations under this
 Article 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) prior
 to providing any such copies, access, or disclosure, the Corporation enters into a confidentiality
 and standstill agreement with such Person that contains confidentiality restrictions that
 are no less favourable to the Corporation than those set out in the Confidentiality Agreement,
 and any such copies, access or disclosure provided to such Person shall have already been
 (or simultaneously be) provided to the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Corporation
 promptly provides the Purchaser with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prior
 written notice stating the Corporation's intention to participate in such discussions
 or negotiations and to provide such copies, access or disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior
 to providing any such copies, access or disclosure, true, complete and final executed copy
 of the confidentiality and standstill agreement referred to in Section 5.3(1)(d); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 material non-public information concerning the Corporation or its Subsidiaries provided to
 such other Person which was not previously provided to the Purchaser.

(2) Nothing contained
 in this Article 5 shall prohibit the Board from making disclosure to securityholders as required by
 applicable Law, including complying with section 2.17 of Multilateral Instrument 62-104 – *Takeover Bids and Issuer Bids* and similar provisions under Securities Laws relating to the provision of a
 directors' circular in respect of an Acquisition Proposal.

5.4 Right to Match

(1) If the Corporation
 receives an Acquisition Proposal that constitutes a Superior Proposal, the Board may at any time prior
 to obtaining the Required Shareholder Approval, enter into a definitive agreement with respect to such
 Superior Proposal or make a Change in Recommendation, if and only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Person making the Superior Proposal was not restricted from making such Superior Proposal
 pursuant to an existing confidentiality, non-disclosure, use, business purpose or similar
 restriction with the Corporation or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Corporation has been, and continues to be, in material compliance with its obligations under
 this Article 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Corporation has delivered to the Purchaser a written notice of the determination of the Board
 that such Acquisition Proposal constitutes a Superior Proposal and of the intention of the
 Board to enter into such definitive agreement or make a Change of Recommendation with respect
 to such Superior Proposal, together with a written notice from the Board regarding the value
 and financial terms that the Board, in consultation with its financial advisors, has determined
 should be ascribed to any non-cash consideration offered under such Superior Proposal (the
 "**Superior Proposal Notice** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Corporation has provided the Purchaser a copy of the proposed definitive agreement for the
 Superior Proposal and all supporting materials, including any financing documents supplied
 to the Corporation in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) at
 least 5 Business Days (the "**Matching Period**") have elapsed from the date
 that is the later of the date on which the Purchaser received the Superior Proposal Notice
 and the date on which the Purchaser received all of the materials set forth in Section 5.4(1)(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) during
 any Matching Period, the Purchaser has had the opportunity (but not the obligation), in accordance
 with Section 5.4(2), to offer to amend this Agreement and the Arrangement in order for such
 Acquisition Proposal to cease to be a Superior Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) after
 the Matching Period, the Board has determined in good faith, after consultation with the
 Corporation's outside legal counsel and financial advisors, that such Acquisition Proposal
 continues to constitute a Superior Proposal (if applicable, compared to the terms of the
 Arrangement as proposed to be amended by the Purchaser under Section 5.4(2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) prior
 to or concurrently with entering into such definitive agreement, the Corporation terminates
 this Agreement pursuant to Section 7.2(3)(b) and pays the Termination Fee pursuant to Section
 8.2.

(2) During the
 Matching Period, or such longer period as the Corporation may approve in writing for such purpose: (a)
 the Board shall review any offer made by the Purchaser under Section 5.4(1)(f) to amend the terms of
 this Agreement, the Arrangement or the Plan of Arrangement in good faith in order to determine whether
 such proposal would, upon acceptance, result in the Acquisition Proposal previously constituting a Superior
 Proposal ceasing to be a Superior Proposal; and (b) the Corporation shall negotiate in good faith with
 the Purchaser to make such amendments to the terms of this Agreement, and the Plan of Arrangement as
 would enable the Purchaser to proceed with the transactions contemplated by this Agreement on such amended
 terms. If the Board determines that such Acquisition Proposal would cease to be a Superior Proposal,
 the Corporation shall promptly so advise the Purchaser and the Corporation and the Purchaser shall amend
 this Agreement to reflect such offer made by the Purchaser, and shall take and cause to be taken all
 such actions as are necessary to give effect to the foregoing.

(3) Each successive
 amendment or modification to any Acquisition Proposal that results in an increase in, or modification
 of, the consideration (or value of such consideration) to be received by the Shareholders (other than
 Republic and the Rollover Shareholders with respect to their Rollover Shares) or other material terms
 or conditions thereof shall constitute a new Acquisition Proposal for the purposes of this Section 5.4,
 and the Purchaser shall be afforded a new 5 Business Day Matching Period from the later of the date
 on which the Purchaser received the Superior Proposal Notice and the date on which the Purchaser received
 all of the materials set forth in Section 5.4(1)(d) with respect to the new Superior Proposal from the
 Corporation.

(4) The Board shall
 promptly reaffirm the Board Recommendation by press release after any Acquisition Proposal which the
 Board has determined not to be a Superior Proposal is publicly announced or publicly disclosed or the
 Board determines that a proposed amendment to the terms of this Agreement, or the Plan of Arrangement
 as contemplated under Section 5.4(2) would result in an Acquisition Proposal no longer being a Superior
 Proposal. The Corporation shall provide the Purchaser and its legal counsel with a reasonable opportunity
 to review and comment on the form and content of any such press release and shall make all reasonable
 amendments to such press release as requested by the Purchaser and its counsel.

(5) If the Corporation
 provides a Superior Proposal Notice to the Purchaser on a date that is less than 10 Business Days before
 the Meeting, the Corporation shall either proceed with or shall postpone the Meeting, as directed by
 the Purchaser, to a date that is not more than 15 Business Days after the scheduled date of the Meeting.

5.5 Breach by Subsidiaries and Representatives

Without limiting the generality of the foregoing, the Corporation shall advise its Subsidiaries and its Representatives of the prohibitions set out in this Article 5 and any violation of the restrictions set forth in this Article 5 by the Corporation, its Subsidiaries or Representatives is deemed to be a breach of this Article 5 by the Corporation.

**ARTICLE 6**

**CONDITIONS**

6.1 Mutual Conditions Precedent

The Parties are not required to complete the Arrangement unless each of the following conditions is satisfied on or prior to the Effective Time, which conditions may only be waived, in whole or in part, by the mutual consent of each of the Parties:

(1) **Arrangement Resolution.** The Required
 Shareholder Approval has been obtained at the Meeting in accordance with the Interim Order.

(2) **Interim and Final Order.** The Interim Order and the Final Order have each been obtained on terms consistent
 with this Agreement, and have not been set aside or modified in a manner unacceptable to either the
 Corporation or the Purchaser, each acting reasonably, on appeal or otherwise.

(3) **Illegality.** No Law is in effect (whether temporary, preliminary or permanent) which prevents, prohibits or makes
 the consummation of the Arrangement illegal or otherwise prohibits or enjoins the Corporation or the
 Purchaser from consummating the Arrangement or any of the other transactions contemplated in this Agreement.

(4) **Cboe Approval.** The necessary conditional approvals or equivalent approvals, as the case may be, of the Cboe have been
 obtained.

(5) **Regulatory Approval.** The Required Regulatory Approvals have been obtained, and shall not have been rescinded
 or modified.

6.2 Additional Conditions Precedent to the
 Obligations of the Purchaser

The Purchaser is not required to complete the Arrangement unless each of the following conditions is satisfied on or before the Effective Time, which conditions are for the exclusive benefit of the Purchaser and may only be waived, in whole or in part, by the Purchaser in its sole discretion:

(1) **Representations and Warranties.** (i) The representations and warranties of the Corporation set forth in this Agreement
 are true and correct as of the Effective Time, except to the extent that the failure or failures of
 such representations and warranties to be so true and correct, individually or in the aggregate, has
 not had or would not reasonably be expected to have a Material Adverse Effect or prevent, significantly
 impede or materially delay the completion of the Arrangement (and, for this purpose, any reference to
 "material", "Material Adverse Effect" or other concepts of materiality in such
 representations and warranties shall be ignored), and (ii) the representations and warranties of the
 Corporation set forth in Paragraphs (1) [ *Organization and Qualification* ], (2) [ *Corporate Authorization* ],
 (3) [ *Execution and Binding Obligation* ], (5)(a) [ *No Conflict* ], (6) [ *Capitalization* ],
 (8) [ *Subsidiaries* ] and (20) [ *Brokers* ] of Schedule C are true and correct in all respects
 as of the Effective Time, in each case except for representations and warranties made as of a specified
 date, the accuracy of which shall be determined as of such specified date, and the Corporation has delivered
 a certificate confirming same to the Purchaser, executed by two senior Officers of the Corporation (in
 each case without personal liability) addressed to the Purchaser and dated the Effective Date.

(2) **Performance of Covenants.** The Corporation has fulfilled or complied in all material respects with each of the
 covenants of the Corporation contained in this Agreement to be fulfilled or complied with by it on or
 prior to the Effective Time, and has delivered a certificate confirming same to the Purchaser, executed
 by two senior Officers of the Corporation (in each case without personal liability) addressed to the
 Purchaser and dated the Effective Date.

(3) **No Legal Action.** There is no action or proceeding pending before any Governmental Entity by any Person (other
 than the Purchaser) that is reasonably likely to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cease
 trade, enjoin, prohibit, or impose any material limitations or conditions on, the Purchaser's
 ability to acquire, hold, or exercise full rights of ownership over, any Shares, including
 the right to vote the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) impose
 material terms or conditions on completion of the Arrangement or on the ownership or operation
 by the Purchaser of the business or assets of the Corporation or any of its Subsidiaries,
 or compel the Purchaser to dispose of or hold separate any of the business or assets of the
 Purchaser, any of its Affiliates, the Corporation or any of its Subsidiaries as a result
 of the Arrangement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) prevent
 the consummation of the Arrangement, or if the Arrangement is consummated, have a Material
 Adverse Effect.

(4) **Dissent Rights.** Dissent Rights have not been exercised with respect to more than 5% of the issued and outstanding
 Shares (excluding, for the purpose of such calculation, the issued and outstanding Shares held by Republic
 and the Rollover Shareholders with respect to their Rollover Shares) and the Corporation shall have
 delivered a certificate confirming same to the Purchaser, executed by two senior Officers of the Corporation
 (in each case without personal liability) addressed to the Purchaser and dated the Effective Date.

(5) **Material Adverse Effect.** Since the date of this Agreement, there shall have not occurred a Material Adverse
 Effect.

(6) **Support and Voting Agreement**. The Purchaser shall have received the applicable signed Support and Voting
 Agreements from all senior officers and the independent directors of the Corporation.

6.3 Additional Conditions Precedent to the
 Obligations of the Corporation

The Corporation is not required to complete the Arrangement unless each of the following conditions is satisfied on or before the Effective Time, which conditions are for the exclusive benefit of the Corporation and may only be waived, in whole or in part, by the Corporation in its sole discretion:

(1) **Representations and Warranties.** The representations and warranties of the Purchaser are true and correct in all
 material respects as of the Effective Time, except for representations and warranties made as of a specified
 date, the accuracy of which shall be determined as of such specified date, and the Purchaser has delivered
 a certificate confirming same to the Corporation, executed by two senior Officers of the Purchaser (in
 each case without personal liability) addressed to the Corporation and dated the Effective Date.

(2) **Performance of Covenants.** Each of the Purchaser and the Guarantor has fulfilled or complied in all material
 respects with each of the covenants of the Purchaser and the Guarantor contained in this Agreement to
 be fulfilled or complied with by them on or prior to the Effective Time, and each of the Purchaser and
 the Guarantor has delivered a certificate confirming same to the Corporation, executed by two senior
 Officers of the Purchaser and the Guarantor (in each case without personal liability) addressed to the
 Corporation and dated the Effective Date.

(3) **Deposit of Cash Consideration with Depositary.** Subject to obtaining the Final Order and the satisfaction
 or waiver of the other conditions precedent contained herein in its favour (other than conditions which,
 by their nature, are only capable of being satisfied as of the Effective Time), the Guarantor has deposited
 or caused to be deposited, one Business Day prior to the Effective Date, with the Depositary in escrow
 in accordance with Section 2.10, the funds required to effect payment in full of the Cash Consideration
 to be paid pursuant to the Arrangement.

(4) **Tax Ruling by Israeli Tax Authorities.** The Corporation has obtained from the Israeli Tax Authorities a favourable
 tax ruling, satisfactory to the Corporation at its sole discretion.

(5) **Rollover Agreements.** The Rollover Agreements entered into with the Rollover Shareholders listed in Schedule
 G remain in full force and effect.

**ARTICLE 7**

**TERM AND TERMINATION**

7.1 Term

This Agreement shall be effective from the date hereof until the earlier of the Effective Time and the termination of this Agreement in accordance with the provisions of Section 7.2 below.

7.2 Termination

This Agreement may be terminated prior to the Effective Time by:

(1) the mutual written agreement of the Parties;
 or

(2) either the Corporation, on the one hand,
 or the Purchaser, on the other hand, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **No Required Shareholder Approval.** The Required Shareholder Approval is not obtained at the
 Meeting in accordance with the Interim Order; provided that a Party may not terminate this
 Agreement pursuant to this Section 7.2(2)(a) if the failure to obtain the Required Shareholder
 Approval has been caused by, or is a result of, a breach by such Party of any of its representations
 or warranties or the failure of such Party to perform any of its covenants or agreements
 under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Illegality.** After the date of this Agreement, any Law is enacted, made, enforced or amended, as applicable,
 that makes the consummation of the Arrangement illegal or otherwise permanently prohibits
 or enjoins the Corporation or the Purchaser from consummating the Arrangement, and such Law
 has, if applicable, become final and non-appealable, provided the Party seeking to terminate
 this Agreement pursuant to this Section 7.2(2)(b) has used its commercially reasonable efforts
 to, as applicable, appeal or overturn such Law or otherwise have it lifted or rendered non-applicable
 in respect of the Arrangement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Occurrence of Outside Date.** The Effective Time does not occur on or prior to the Outside Date, provided
 that a Party may not terminate this Agreement pursuant to this Section 7.2(2)(c) if the failure
 of the Effective Time to so occur has been caused by, or is a result of, a breach by such
 Party of any of its representations or warranties or the failure of such Party to perform
 any of its covenants or agreements under this Agreement.

(3) the Corporation if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Breach of Representation or Warranty or Failure to Perform Covenant.** A breach of any representation
 or warranty or failure to perform any covenant or agreement on the part of the Purchaser
 or the Guarantor under this Agreement occurs that would cause any condition in Section 6.3(1)
 [ *Purchaser Representations and Warranties Condition* ] or Section 6.3(2) [ *Purchaser Covenants Condition* ] not to be satisfied, and such breach or failure is incapable of
 being cured or is not cured on or prior to the Outside Date in accordance with the terms
 of Section 4.6(2) provided that the Corporation is not then in breach of this Agreement so
 as to directly or indirectly cause any condition in Section 6.2(1) [ *Corporation Representations and Warranties Condition* ] or Section 6.2(2) [ *Corporation Covenants Condition* ]
 not to be satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Superior Proposal.** Prior to obtaining the Required Shareholder Approval, the Board authorizes
 the Corporation to enter into a definitive written agreement (other than the confidentiality
 agreement permitted by and in accordance with Section 5.3(1)(d) with respect to a Superior
 Proposal and prior to or concurrently with such termination the Corporation pays the Termination
 Fee in accordance with Section 8.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Early Termination.** In the reasonable opinion of the Corporation, the condition in Section 6.3(2)
 [ *Performance of Covenants* ] is not likely to be satisfied on or prior to the Effective
 Date, but only due to a breach by the Purchaser or the Guarantor of their obligations set
 out in Section 2.4(4); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Material Adverse Effect.** There has occurred a Material Adverse Effect on or after the date of
 this Agreement.

(4) the Purchaser if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Breach of Representation or Warranty or Failure to Perform Covenant.** A breach of any representation
 or warranty or failure to perform any covenant or agreement on the part of the Corporation
 under this Agreement occurs that would cause any condition in Section 6.2(1) [ *Corporation Representations and Warranties Condition* ] or Section 6.2(2) [ *Corporation Covenants Condition* ] not to be satisfied, and such breach or failure is incapable of being cured
 on or prior to the Outside Date or is not cured in accordance with the terms of Section 4.6(2);
 provided that the Purchaser is not then in breach of this Agreement so as to directly or
 indirectly cause any condition in Section 6.3(1) [ *Purchaser Representations and Warranties* ]
 or Section 6.3(2) [ *Purchaser Covenants Condition* ] not to be satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Change in Recommendation or Breach of Article 5.** (A) the Board fails to recommend or withdraws,
 amends, modifies or qualifies, or publicly proposes or states an intention to withdraw, amend,
 modify or qualify, the Board Recommendation, (B) the Board accepts, approves, endorses or
 recommends, or publicly proposes to accept, approve, endorse or recommend an Acquisition
 Proposal or takes no position or remains neutral with respect to a publicly announced, or
 otherwise publicly disclosed, Acquisition Proposal for more than five Business Days (or beyond
 the third Business Day prior to the date of the Meeting, if sooner), (C) the Board fails
 to publicly recommend or reaffirm the Board Recommendation within five Business Days after
 having been requested in writing by the Purchaser to do so (or in the event that the Meeting
 is scheduled to occur within such five Business Day period, prior to the third Business Day
 prior to the date of the Meeting) (collectively, a "**Change in Recommendation** "),
 or (D) the Corporation breaches Article 5 in any material respect.

7.3 Effect of Termination/Survival

If this Agreement is terminated pursuant to Section 7.1 due to the occurrence of the Effective Time or Sections 7.2 or 8.2(2), this Agreement shall become void and of no further force or effect without liability of any Party (or any Shareholder or Representative of such Party) to any other Party to this Agreement, except that: (a) in the event of termination under Section 7.1 as a result of the completion of the Arrangement, Section 4.8 shall survive such termination; and (b) in the event of termination under Sections 7.2 or 8.2(2), this Section 7.3 and Section 8.2 through to and including Section 8.18 shall survive and remain enforceable, and provided further that no Party shall be relieved of any liability for any Wilful Breach by it of this Agreement.

**ARTICLE 8 <br> GENERAL PROVISIONS**

8.1 Amendments

This Agreement and the Plan of Arrangement, may, at any time and from time to time before or after the holding of the Meeting but not later than the Effective Time, be amended by written agreement of the Parties without, subject to applicable Laws, further notice to or authorization on the part of the affected securityholders, and any such amendment may, without limitation:

(1) change the time for performance of any
 of the obligations or acts of the Parties;

(2) waive
 any inaccuracies or modify any representation, term or provision contained herein or in any
 document delivered pursuant hereto; or

(3) waive compliance with or modify any of
 the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conditions
 precedent referred to in Article 6; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 of the covenants herein contained or waive or modify performance of any of the obligations
 of the Parties,

provided, however, that no such amendment may reduce or materially affect the consideration to be received by the Shareholders under the Arrangement without their approval at the Meeting or, following the Meeting, without their approval given in the same manner as required by applicable Laws for the approval of the Arrangement as may be required by the Court.

8.2 Termination
 and Reverse Termination Fees

(1) Upon the occurrence
 of a Termination Fee Event, the Corporation shall pay the Purchaser the Termination Fee in
 accordance with Section 8.2(3).

(2) For the purposes
 of this Agreement, "**Termination Fee**" means $10,000,000, and "**Termination Fee Event**" means the termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by the Purchaser,
 pursuant to Section 7.2(4)(b) [ *Change in Recommendation or Breach of Article 5* ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by the Corporation
 pursuant to Section 7.2(3)(b) [ *Superior Proposal* ]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by the Corporation
 or the Purchaser pursuant to Section 7.2(2)(a) [ *No Required Shareholder Approval* ],
 if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) after
 the announcement of this Agreement and prior to such termination, an Acquisition Proposal
 is made or publicly announced or otherwise publicly disclosed by any Person (other than the
 Purchaser or any of its Affiliates) and such Acquisition Proposal has not expired or been
 withdrawn prior to the date of the Meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within
six months following the date of such termination, (i) such Acquisition Proposal is completed, or (ii) the Corporation or one or more
of its Subsidiaries, directly or indirectly, in one or more transactions, enters into a definitive agreement in respect of such Acquisition
Proposal and such Acquisition Proposal is later completed (whether or not within six months after such termination);

for the purpose of Section 8.2(2)(c), the term "Acquisition Proposal" shall have the meaning assigned to such term in Section 1.1, except that reference to 20% or more shall be deemed to be references to 50% or more.

(3) The Termination
 Fee shall be paid by the Corporation to the Purchaser, by wire transfer of immediately available
 funds, if a Termination Fee Event occurs due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a termination
 of this Agreement described in Section 8.2(2)(a), within five Business Days of the occurrence
 of such Termination Fee Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a termination
 of this Agreement described in Section 8.2(2)(b), prior to or concurrently with such termination;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a termination
 of this Agreement described in Section 8.2(2)(c), on the completion of the Acquisition Proposal
 referred to in Section 8.2(2)(c).

Despite any other provision in this Agreement relating to the payment of fees and expenses, including the payment of brokerage fees, if a Reverse Termination Fee Event occurs, the Guarantor will pay or cause to be paid (by instructing the Escrow Agent to release the Escrow Amount) to the Corporation by wire transfer in immediately available funds to an account designated by the Corporation, an amount equal to $10,000,000 (the "**Reverse Termination Fee**") within two Business Days following such Reverse Termination Fee Event. For greater certainty, in no event will the Guarantor or the Purchaser be obligated to pay the Reverse Termination Fee on more than one occasion. For the purposes of this Agreement, "**Reverse Termination Fee Event**" means the termination of this Agreement by the Corporation pursuant to Section 7.2(3)(a) [*Purchaser Breach*] due to a breach of paragraph 11 of Schedule D or a failure to perform any covenant or agreement on the part of the Purchaser or the Guarantor under this Agreement other than a breach by the Purchaser or the Guarantor of their obligations under Section 2.4(4).

8.3 Guarantee

The Guarantor hereby unconditionally and irrevocably guarantees in favour of the Corporation, as principal and not as surety, the due and punctual performance (and, where applicable, payment) by the Purchaser (and its successors and permitted assigns) of each of its obligations and liabilities under this Agreement and the Plan of Arrangement, as the same may be amended, changed, replaced, settled, compromised or otherwise modified from time to time, and irrespective of any bankruptcy, insolvency, dissolution, winding-up, termination of the existence of or other matter whatsoever respecting the Purchaser or any successor or permitted assignee. The Guarantor hereby agrees that the Corporation shall not have to proceed first against the Purchaser in respect of any such matter before exercising its rights under this guarantee against the Guarantor and agrees to be liable for all guaranteed obligations as if it were the principal obligor of such obligations. The Guarantor hereby waives promptness, diligence, demand, notice of acceptance and any other notice with respect to any of the guaranteed obligations and this Agreement. The Guarantor hereby agrees to indemnify and save the Corporation and the Shareholders harmless from and against all loss, cost, damage, expense, claims and liability which they may at any time suffer or incur in connection with any failure by Purchaser to duly and punctually pay or perform its obligations owed to the Corporation and/or the Shareholders under this Agreement.

8.4 Liquidated
 Damages

Each of the Parties acknowledges and agrees that all of the payment amounts sent out in Section 8.2 are payments of liquidated damages which are a genuine pre-estimate of the damages, including opportunity costs, reputational damage, and out of pocket expenditures, which the Party entitled to payment will suffer or incur as a result of the event giving rise to such payment and are not penalties. Each Party irrevocably waives any right that it may have to raise as a defense that any such liquidated damages are excessive or punitive. In addition, the Parties agree that the payment of the Termination Fee and the Reverse Termination Fee, as the case may be, pursuant to Section 8.2 in the manner provided therein is the sole and exclusive remedy of the Party in respect of the events giving rise to such payment, provided, however, that this limitation shall not apply in the event of Wilful Breach or fraud by the Parties and nothing contained in herein shall preclude the Parties from seeking injunctive relief to restrain the breach or threatened breach of the covenants or agreements set forth in this Agreement or the Confidentiality Agreement as set out in Section 8.9 or specific performance of any of the acts, covenants or agreements set forth in this Agreement or the Confidentiality Agreement, without the necessity of posting a bond or security in connection therewith.

8.5 Expenses

(1) Except
as expressly otherwise provided in this Agreement, all out-of-pocket third party transaction expenses incurred in connection with this
Agreement and the Plan of Arrangement and the transactions contemplated hereunder and thereunder, including all costs, expenses and fees
of the Corporation incurred prior to or after the Effective Time in connection with, or incidental to, the Plan of Arrangement, shall
be paid by the Party incurring such expenses, whether or not the Arrangement is consummated.

8.6 Notices

(1) Any
 notice, or other communication given regarding the matters contemplated by this Agreement
 must be in writing, sent by personal delivery, courier, facsimile or electronic mail (provided
 confirmation of receipt is acknowledged by return electronic mail from the recipient) and
 addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Purchaser
 at:

Republic Strategic Acquisition Co LLC

---

| | |
|:---|:---|
| Attention: | **[REDACTED - NAME]** |

---

---

| | |
|:---|:---|
| Email: | **[REDACTED - EMAIL]** |

---

with a copy (which will not constitute notice) to:

McCarthy Tétrault LLP

4000, 421-7<sup>th</sup> Avenue S.W.

Calgary, Alberta

T2P 4K9

Attention: Bradley Squibb

Email: bsquibb@mccarthy.ca

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Corporation
 at:

The INX Digital Company, Inc.

---

| | |
|:---|:---|
| Attention: | **[REDACTED - NAME]** |

---

---

| | |
|:---|:---|
| Email: | **[REDACTED - EMAIL]** |

---

with a copy (which will not constitute notice) to:

Fasken Martineau DuMoulin LLP

2400-333 Bay Street

Toronto, Ontario

M5H 2T6

Attention: Bradley Freelan and Daniel Fuke

Email: bfreelan@fasken.com and dfuke@fasken.com

with a copy (which will not constitute notice) to:

Gornitzky & Co.

Vitania Tel Aviv Tower,

20 HaHarash St., TLV Israel

Telephone No.: +972-3-710 9107

E-Mail: Yhorn@gornitzky.com

Attention: Adv. Yuval Horn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the
 Guarantor at:

OpenDeal Inc. (dba Republic)

---

| | |
|:---|:---|
| Attention: | **[REDACTED - NAME]** |

---

---

| | |
|:---|:---|
| Email: | **[REDACTED - EMAIL]** |

---

with a copy (which will not constitute notice) to:

McCarthy Tétrault LLP

4000, 421-7<sup>th</sup> Avenue S.W.

Calgary, Alberta

T2P 4K9

Attention: Bradley Squibb

Email: bsquibb@mccarthy.ca

(2) Any
 notice or other communication is deemed to be given and received (i) if sent by personal
 delivery or same day courier, on the date of delivery if it is a Business Day and the delivery
 was made prior to 4:00 p.m. (local time in place of receipt) and otherwise on the next Business
 Day, (ii) if sent by overnight courier, on the next Business Day, (iii) if sent by facsimile,
 on the Business Day following the date of confirmation of transmission by the originating
 facsimile or (iv) if sent by electronic mail, upon confirmation of receipt by the recipient
 if it is a Business Day and confirmation was received prior to 5:00 p.m. (local time in place
 of delivery or receipt) and otherwise on the next Business Day. A Party may change its address
 for service from time to time by providing a notice in accordance with the foregoing. Any
 subsequent notice or other communication must be sent to the Party at its changed address.
 Any element of a Party's address that is not specifically changed in a notice will
 be assumed not to be changed. Sending a copy of a notice or other communication to a Party's
 outside legal counsel as contemplated above is for information purposes only and does not
 constitute delivery of the notice or other communication to that Party. The failure to send
 a copy of a notice or other communication to outside legal counsel does not invalidate delivery
 of that notice or other communication to a Party.

8.7 Time of the
 Essence

Time is of the essence in this Agreement.

8.8 Further Assurances

Subject to the provisions of this Agreement, the Parties will, from time to time, do all acts and things and execute and deliver all such further documents and instruments, as the other Party may, either before the Effective Date, reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement and, in the event the Arrangement becomes effective, to document or evidence any of the transactions or events set out in the Plan of Arrangement.

8.9 Injunctive
 Relief

Subject to Sections 8.2 and 8.4, the Parties agree that irreparable harm would occur for which money damages would not be an adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Subject to Sections 8.2 and 8.4, it is accordingly agreed that the Parties shall be entitled to specific performance of the terms of this Agreement and an injunction or injunctions and other equitable relief to prevent breaches or threatened breaches of this Agreement, and to enforce compliance with the terms of this Agreement without any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief hereby being waived.

8.10 Third Party
 Beneficiaries

Except as provided in Section 2.7, Section 2.15(6) and Section 4.7 which, without limiting their terms, are intended as stipulations for the irrevocable benefit of, and shall be enforceable by, the third Persons mentioned in such provisions, the Corporation and the Purchaser intend that this Agreement will not benefit or create any right or cause of action in favour of any Person, other than the Parties and that no Person, other than the Parties, shall be entitled to rely on the provisions of this Agreement in any action, suit, proceeding, hearing or other forum. The Parties reserve their right to vary or rescind the rights at any time and in any way whatsoever, if any, granted by or under this Agreement to any person who is not a Party, without notice to or consent of that Person, including third Persons mentioned in Section 2.7, Section 2.15(6) and Section 4.7.

8.11 Waiver

No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision (whether or not similar). No waiver will be binding unless executed in writing by the Party to be bound by the waiver. A Party's failure or delay in exercising any right under this Agreement will not operate as a waiver of that right. A single or partial exercise of any right will not preclude a Party from any other or further exercise of that right or the exercise of any other right. The rights and remedies of the Parties hereunder are cumulative and are in addition to, and not in substitution for, any other rights and remedies available at law or in equity or otherwise.

8.12 Entire Agreement

This Agreement, together with the Corporation Disclosure Letter, the Confidentiality Agreement and the CVR Agreement, constitutes the entire agreement between the Parties with respect to the transactions contemplated by this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. There are no representations, warranties, covenants, conditions or other agreements, express or implied, collateral, statutory or otherwise, between the Parties in connection with the subject matter of this Agreement, except as specifically set forth in this Agreement.

8.13 Successors
 and Assigns

(1) This
 Agreement becomes effective only when executed by the Corporation and the Purchaser. After
 that time, it will be binding upon and enure to the benefit of the Corporation, the Purchaser
 and their respective successors and permitted assigns.

(2) Neither
 this Agreement nor any of the rights or obligations under this Agreement are assignable or
 transferable by any Party without the prior written consent of the other Party, except that
 the Purchaser may assign all or any portion of its rights and obligations under this Agreement
 to a wholly-owned Subsidiary of the Purchaser, but none of any such assignments shall (i)
 relieve the Purchaser of its obligations hereunder, (ii) impair, delay or prevent the satisfaction
 of any other conditions set forth in Article 6, or (iii) impair, delay or prevent the consummation
 of the transactions contemplated by this Agreement.

8.14 Severability

If any provision of this Agreement is determined to be illegal, invalid or unenforceable by an arbitrator or any court of competent jurisdiction, that provision will be severed from this Agreement and the remaining provisions shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

8.15 Governing
 Law

(1) This
 Agreement will be governed by, interpreted and enforced in accordance with the Laws of the
 Province of Ontario and the federal Laws of Canada applicable therein.

(2) Each
 Party irrevocably attorns and submits to the non-exclusive jurisdiction of the Ontario courts
 situated in the City of Toronto and waives objection to the venue of any proceeding in such
 court or that such court provides an inconvenient forum.

8.16 Rules of Construction

The Parties to this Agreement waive the application of any Law or rule of construction providing that ambiguities in any agreement or other document shall be construed against the party drafting such agreement or other document.

8.17 No Liability

No director or Officer of the Purchaser shall have any personal liability whatsoever to the Corporation under this Agreement or any other document delivered in connection with the transactions contemplated hereby on behalf of the Purchaser. No director or Officer of the Corporation or any of its Subsidiaries shall have any personal liability whatsoever to the Purchaser under this Agreement or any other document delivered in connection with the transactions contemplated hereby on behalf of the Corporation or any of its Subsidiaries.

8.18 Counterparts

This Agreement may be executed in any number of counterparts (including counterparts by facsimile) and all such counterparts taken together shall be deemed to constitute one and the same instrument. The Parties shall be entitled to rely upon delivery of an executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy shall be legally effective to create a valid and binding agreement between the Parties.

 

*[Remainder of page intentionally left blank]*

**IN WITNESS WHEREOF** the Parties have executed this Arrangement Agreement.

---

| | | |
|:---|:---|:---|
| **THE INX DIGITAL COMPANY, INC.** | **THE INX DIGITAL COMPANY, INC.** | **THE INX DIGITAL COMPANY, INC.** |
| By: | *"Shy Datika"* | *"Shy Datika"* |
|  | Name: | Shy Datika |
|  | Title: | Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| By: | *"Kendrick Nguyen"* | *"Kendrick Nguyen"* |
|  | Name: | Kendrick Nguyen |
|  | Title: | Co-Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **REPUBLIC STRATEGIC ACQUISITION CO LLC** | **REPUBLIC STRATEGIC ACQUISITION CO LLC** | **REPUBLIC STRATEGIC ACQUISITION CO LLC** |
| By: | *"Kendrick Nguyen"* | *"Kendrick Nguyen"* |
|  | Name: | Kendrick Nguyen |
|  | Title: | As representative of OpenDeal Inc., sole member of Republic Strategic Acquisition Co LLC |

---

**SCHEDULE A**

**PLAN OF ARRANGEMENT**

(*See attached*)

**FORM OF PLAN OF ARRANGEMENT**

**PLAN OF ARRANGEMENT UNDER DIVISION 5 OF PART 9 OF THE BUSINESS**

**CORPORATIONS ACT (BRITISH COLUMBIA)**

**ARTICLE 1**

**INTERPRETATION**

1.1 Definitions

In this Plan of Arrangement, unless there is something in the subject matter or context inconsistent therewith, the following terms have the respective meanings set out below and grammatical variations of those terms have corresponding meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate** "
 has the meaning specified in National Instrument 45-106 – *Prospectus Exemptions*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Arrangement** "
 means an arrangement under the provisions of Section 288 of the BCBCA, on the terms and conditions
 set forth in this Plan of Arrangement, as amended or varied from time to time in accordance
 with the terms of the Arrangement Agreement or this Plan of Arrangement or made at the direction
 of the Court in the Final Order with the prior consent of the Corporation and the Purchaser,
 each acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Arrangement Agreement**" means the agreement made as of April 3, 2025 among the Corporation,
 the Purchaser and the Guarantor including the schedules thereto, as the same may be supplemented
 or amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Arrangement Resolution**" means the special resolution approving this Plan of Arrangement to
 be considered at the Meeting, substantially in the form of Schedule B to the Arrangement
 Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**BCBCA** "
 means the *Business Corporations Act* (British Columbia), as promulgated or amended
 from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Business Day**" means any day of the year, other than a Saturday, Sunday or any day on which
 major banks are closed for business in Toronto, Ontario;

(g) "**Cash Consideration**" means $[●]<sup>1</sup> in cash per Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Cboe** "
 means the Cboe (Canada) Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Corporation** "
 means The INX Digital Company, Inc., a corporation incorporated under the laws of the Province
 of British Columbia;

<sup>1</sup> Number to be determined once the total number of Shares held by Rollover Shareholders is finalized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Consideration** "
 means, collectively, for each Share, (i) the Cash Consideration, and (ii) one CVR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Court** "
 means the Supreme Court of British Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**CVR** "
 means a contingent value right entitling the holder thereof to receive a payment equal to
 the CVR Amount in accordance with the terms of the CVR Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**CVR Agent**" means Odyssey Trust Company or such other person that is reasonably acceptable
 to the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**CVR Agreement**" means the contingent value rights agent agreement to be entered into
 prior to the Effective Date between the Guarantor and the CVR Agent;

(o) "**CVR Amount**" means a payment equal to $[●]<sup>2</sup> per CVR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**CVR Representatives**" means the representatives set out in Section 2.15(5) of the Arrangement
 Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Depositary** "
 means Odyssey Trust Company in its capacity as depositary for the Arrangement, or such other
 person as the Corporation and the Purchaser agree to engage as depositary for the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Dissent Rights**" has the meaning ascribed thereto in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Dissenting Shareholder**" means a registered holder of Shares who has duly and validly exercised
 Dissent Rights in respect of the Arrangement Resolution in strict compliance with the Dissent
 Rights and who has not withdrawn or been deemed to have withdrawn such exercise of Dissent
 Rights, but only in respect of Shares in respect of which Dissent Rights are validly exercised
 by such holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Dissenting Shares**" means the Shares held by Dissenting Shareholders in respect of which such
 Dissenting Shareholders have given Notice of Dissent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Effective Date**" means the date upon which the Arrangement becomes effective, as set out in
 Section 2.9(1) and (2) of the Arrangement Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Effective Time**" means 12:01 a.m. (Toronto time) on the Effective Date or such other time
 as the Corporation and the Purchaser may agree upon in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Escrow Agent**" means Odyssey Trust Company, or such other person as the Corporation and
 the Purchaser agree to engage as escrow agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Escrow Amount**" means $10,000,000;

<sup>2</sup> Number to be determined once the total number of Shares held by Rollover Shareholders is finalized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Final Order**" means the order of the Court approving the Arrangement under Section 291
 of the BCBCA, in form and substance acceptable to the Corporation and the Purchaser, each
 acting reasonably, after a hearing upon the procedural and substantive fairness of the terms
 and conditions of the Arrangement, as such order may be affirmed, amended, modified, supplemented
 or varied by the Court (with the consent of both the Corporation and the Purchaser, each
 acting reasonably) at any time prior to the Effective Date or, if appealed, as affirmed or
 amended (provided that any such amendment, modification, supplement or variation is acceptable
 to both the Corporation and the Purchaser, each acting reasonably) on appeal unless such
 appeal is withdrawn, abandoned or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Former Shareholders**" means the holders of Shares, registered or beneficial as the case
 may be, immediately prior to the Effective Time other than the Purchaser or any or its Affiliates
 (including the Guarantor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Governmental Entity**" means (i) any international, multinational, national, federal, provincial,
 state, regional, municipal, local or other government, governmental or public department,
 central bank, court, tribunal, arbitral body, commission, commissioner, board, bureau, minister,
 cabinet, governor in council, ministry, agency or instrumentality, domestic or foreign; (ii)
 any subdivision, agent or authority of any of the foregoing; (iii) any quasi-governmental
 or private body including any tribunal, commission, regulatory agency or self-regulatory
 organization exercising any regulatory, expropriation or taxing authority under or for the
 account of any of the foregoing; (iv) any administrative court, tribunal, commission, board,
 panel or arbitrator acting under the authority of any of the foregoing; or (v) any Securities
 Authority or stock exchange, including the Cboe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Guarantor** "
 means OpenDeal Inc. (dba Republic), a corporation incorporated under the laws of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Interim Order**" means the interim order of the Court to be issued following the application
 therefor submitted to the Court as contemplated by Section 2.2 of the Arrangement Agreement
 in a form acceptable to the Corporation and the Purchaser, each acting reasonably, providing
 for, among other things, the calling and holding of the Meeting, as such order may be amended,
 modified, supplemented or varied by the Court with the consent of the Corporation and the
 Purchaser, each acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Law** "
 means any and domestic or foreign, national, federal, provincial, state, municipal or local
 laws (statutory, civil, common or otherwise), statutes, codes, constitutions, treaties, conventions,
 ordinances (including zoning), decrees, rules, regulations, by-laws, statutory rules, published
 policies and guidelines, notices, judicial, arbitral, administrative, ministerial, departmental
 or regulatory judgments, injunctions, orders, decisions, settlements, writs, assessments,
 arbitration awards, rulings, determinations or awards, decrees or other requirements of any
 Governmental Entity having the force of law and any legal requirements arising under the
 common law or principles of law or equity and the term "applicable" with respect
 to such Laws and, in the context that refers to any person, means such Laws as are applicable
 at the relevant time or times to such person or its business, undertaking, property or securities
 and emanate from a Governmental Entity having jurisdiction over such person or its business,
 undertaking, property or securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Letter of Transmittal**" means the letter of transmittal to be delivered by the Corporation
 to the Shareholders providing for the delivery of Shares (other than the Shares held by the
 Purchaser or any of its Affiliates (including the Guarantor) at the Effective Time) to the
 Depositary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Liens** "
 means any pledge, claim, lien, charge, option, hypothec, mortgage, security interest, restriction,
 adverse right, prior assignment, lease, sublease, royalty, levy, right to possession or any
 other encumbrance, easement, license, right of first refusal, covenant, voting trust or agreement,
 transfer restriction under any shareholder or similar agreement, right or restriction of
 any kind or nature whatsoever, whether contingent or absolute, direct or indirect, or any
 agreement, option, right or privilege (whether by Law, contract or otherwise) capable of
 becoming any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Meeting** "
 means the special meeting of the Shareholders, including any adjournment or postponement
 of such special meeting, to be called and held in accordance with the Interim Order to consider
 the Arrangement Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Notice of Dissent**" means a notice of dissent duly and validly given by a registered holder
 of Shares exercising Dissent Rights as contemplated in the Interim Order and as described
 in Article 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Person** "
 includes any individual, partnership, association, body corporate, organization, trust, estate,
 trustee, executor, administrator, legal representative, government (including Governmental
 Entity), syndicate or other entity, whether or not having legal status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Plan of Arrangement**" means this plan of arrangement, including any appendices hereto,
 and any amendments or variations to such plan made in accordance with its terms, the terms
 of the Arrangement Agreement or made at the direction of the Court in the Final Order with
 the prior consent of the Corporation and the Purchaser, each acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Purchaser** "
 means Republic Strategic Acquisition Co LLC a corporation incorporated under the laws of
 Delawareand wholly-owned by the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Securities Authority**" means the Ontario Securities Commission and any other applicable securities
 commission or securities regulatory authority of a province or territory of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Shareholder** "
 means the registered or beneficial holders of the Shares, as the context requires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Shares** "
 means the common shares without par value in the capital of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Tax Act**" means the *Income Tax Act* (Canada).

Any terms used but not defined herein have the meaning ascribed to such terms in the Arrangement Agreement. In addition, words and phrases used herein and defined in the BCBCA and not otherwise defined herein or in the Arrangement Agreement have the same meaning herein as in the BCBCA unless the context otherwise requires.

1.2 Interpretation
 Not Affected by Headings, etc.

The division of this Plan of Arrangement into Articles, Sections, paragraphs and other portions and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation hereof. Unless otherwise indicated, all references to an "Article", "Section" or "paragraph" followed by a number and/or a letter refer to the specified Article, Section or paragraph of this Plan of Arrangement.

1.3 Number

In this Plan of Arrangement, unless the context otherwise requires, words used herein importing the singular include the plural and vice versa.

1.4 Date of Any
 Action

In the event that any date on which any action is required to be taken hereunder by any Person is not a Business Day, such action will be required to be taken on the next succeeding day which is a Business Day.

1.5 Time

Time will be of the essence in every matter or action contemplated hereunder. All times expressed herein or in any letter of transmittal contemplated herein are local time (Toronto, Ontario) unless otherwise stipulated herein or therein.

1.6 Currency

Unless otherwise stated, all references in this Plan of Arrangement to sums of money are expressed in lawful money of the United States of America.

1.7 Statutes

Any reference to a statute refers to such statute and all rules and regulations made under it, as it or they may have been or may from time to time be amended or re-enacted, unless stated otherwise.

**ARTICLE 2**

**EFFECT OF THE ARRANGEMENT**

2.1 Arrangement
 Agreement

This Plan of Arrangement is made pursuant to, is subject to the provisions of, and forms a part of the Arrangement Agreement, except in respect of the sequence of the steps comprising the Arrangement, which will occur in the order set forth herein.

2.2 Binding Effect

This Plan of Arrangement will become effective at the Effective Time and will be binding upon the Purchaser, the Guarantor, the Corporation, the Shareholders (including Dissenting Shareholders), any agent or transfer agent therefor, the Depositary, the CVR Agent, the CVR Representatives, the CVR Holders and all other Persons at and after the Effective Time, without any further act or formality required on the part of any Person, except as expressly provided in this Plan of Arrangement.

**ARTICLE 3**

**ARRANGEMENT**

3.1 The Arrangement

Commencing at the Effective Time, each of the events set out below will occur and be deemed to occur in the following sequence, in each case without any further authorization, act or formality of or by the Corporation, the Purchaser, the Guarantor, the Shareholders or any other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each
 issued and outstanding Share held by a Dissenting Shareholder will be deemed to be transferred
 by the holder thereof, without any further act or formality on its part, free and clear of
 all Liens, to the Corporation and the Corporation will thereupon be obliged to pay the amount
 therefor determined and payable in accordance with Article 4 hereof, and the name of such
 holder will be removed from the central securities register of the Corporation as a holder
 of Shares and such Shares will be deemed to be cancelled and returned to the authorized but
 unissued share capital of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each
 issued and outstanding Share held by a Former Shareholder (other than Shares held by a Dissenting
 Shareholder, but including Shares held by a Dissenting Shareholder who is ultimately found
 not to be entitled to be paid fair value for its Shares, and other than Shares held by the
 Purchaser or any of its Affiliates (including the Guarantor)) will be transferred by the
 holder thereof, without any further act or formality on its part, free and clear of all Liens,
 to the Purchaser in exchange for the Consideration, subject to Article 5 hereof, and the
 name of such holder will be removed from the central securities register of the Corporation
 as a holder of Shares and the Purchaser will be recorded as the registered holder of the
 Shares so transferred and will be deemed to be the owner of such Shares.

The exchanges and cancellations provided for in this Section 3.1 will be deemed to occur on the Effective Date, notwithstanding that certain of the procedures related thereto are not completed until after the Effective Date.

3.2 Delivery of
 Consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 or prior to the Effective Date, (i) the Guarantor shall deliver or arrange to be delivered
 to the Depositary the aggregate amount of Cash Consideration to be paid by the Guarantor
 to Former Shareholders in accordance with the provisions of Section 3.1(b) hereof (including
 by authorizing the transfer of the Escrow Amount by the Escrow Agent to the Depositary),
 and such amount will be held by the Depositary as agent and nominee for such Former Shareholders
 for distribution to such Former Shareholders in accordance with the provisions of Article
 5 hereof, and (ii) the Guarantor shall enter into the CVR Agreement with the CVR Agent and
 the CVR Representatives prior to the Effective Time, pursuant to which each Former Shareholder
 shall be entitled to one CVR in respect of each Share transferred pursuant to Section 3.1(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject
 to the provisions of Article 5 hereof, and upon return of a properly completed Letter of
 Transmittal by a registered Former Shareholder together with certificates representing Shares
 and such other documents as the Depositary may require, Former Shareholders will be entitled
 to receive delivery of the Consideration or other amounts to which they are entitled pursuant
 to Section 3.1(b) hereof.

**ARTICLE 4**

**DISSENT RIGHTS**

4.1 Rights of Dissent

Pursuant to the Interim Order, each registered Shareholder may exercise rights of dissent ("**Dissent Rights**") under Section 238 of the BCBCA and in the manner set forth in Sections 237 to 247 of the BCBCA, all as modified by this Article 4 and as the same may be modified by the Interim Order or the Final Order in respect of the Arrangement, provided that the written objection to the Arrangement Resolution contemplated by Section 242 of the BCBCA must be sent to and received by the Corporation not later than 5:00 p.m. (Toronto time) on the Business Day that is two Business Days before the Meeting. Shareholders who duly exercise such rights of dissent and who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are
 ultimately determined to be entitled to be paid fair value from the Corporation for the Dissenting
 Shares in respect of which they have exercised Dissent Rights, notwithstanding anything to
 the contrary contained in Section 245 of the BCBCA, will be deemed to have irrevocably transferred
 such Dissenting Shares to the Corporation for cancellation pursuant to Section 3.1(a) in
 consideration of such fair value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) are
ultimately not entitled, for any reason, to be paid fair value for the Dissenting Shares in respect of which they have exercised Dissent
Rights, will be deemed to have participated in the Arrangement on the same basis as a Shareholder who has not exercised Dissent Rights,
as at and from the time specified in Section 3.1(b), and be entitled to receive only the Consideration,

but in no case will the Corporation or the Purchaser or any other person be required to recognize such holders as holders of Shares after the completion of the steps set forth in Section 3.1(a), and each Dissenting Shareholder will cease to be entitled to the rights of a Shareholder in respect of the Shares in relation to which such Dissenting Shareholder has exercised Dissent Rights and the central securities register of the Corporation will be amended to reflect that such former holder is no longer the holder of such Shares as and from the completion of the steps in Section 3.1(a).

In addition to any other restrictions set forth in the BCBCA, Shareholders who vote in favour of the Arrangement Resolution shall not be entitled to exercise Dissent Rights.

**ARTICLE 5**

**CERTIFICATES AND PAYMENTS**

5.1 Payment of
 Consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 soon as practicable following the later of the Effective Date and the surrender to the Depositary
 for cancellation of a certificate that immediately prior to the Effective Time represented
 outstanding Shares (other than Shares held by the Purchaser or any of its Affiliates (including
 the Guarantor) as at the Effective Time) that were transferred under Section 3.1(b), together
 with a duly completed Letter of Transmittal and such additional documents and instruments
 as the Depositary may reasonably require and such other documents and instruments as would
 have been required to effect such transfer under the BCBCA, the *Securities Transfer Act* (British Columbia) and the articles of the Corporation, after giving effect to Section
 3.1(b) the former holder of such Shares will be entitled to receive in exchange therefor,
 and the Depositary shall deliver to such holder, the Consideration that such holder is entitled
 to receive in accordance with Section 3.1(b) hereof, less any amounts withheld pursuant to
 Section 5.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject
 to Section 5.3, until surrendered as contemplated by this Section 5.1, each certificate which
 immediately prior to the Effective Time represented Shares (other than Shares held by the
 Purchaser or any of its Affiliates (including the Guarantor) as at the Effective Time) will
 be deemed after the Effective Time to represent only the right to receive from the Depositary
 upon such surrender the Consideration that the holder of such Shares is entitled to receive
 in accordance with Section 3.1 hereof, less any amounts withheld pursuant to Section 5.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No
 Shareholder will be entitled to receive any consideration or entitlement with respect to
 any Shares other than any consideration or entitlement to which such holder is entitled to
 receive in accordance with Section 3.1, this Section 5.1 and the other terms of this Plan
 of Arrangement and, for greater certainty, no such holder will be entitled to receive any
 interest, dividends, premium or other payment in connection therewith, other than any declared
 but unpaid dividends.

5.2 Lost Certificates

In the event any certificate which immediately prior to the Effective Time represented any outstanding Shares (other than Shares held by the Purchaser or any of its Affiliates (including the Guarantor) as at the Effective Time) that were acquired by the Purchaser pursuant to Section 3.1 has been lost, stolen or destroyed, upon the making of an affidavit of that fact by the former holder of such Shares, the Depositary will issue in exchange for such lost, stolen or destroyed certificate, the Consideration to which the former holder of such Shares is entitled to receive pursuant to Section 3.1 hereof in accordance with such holder's Letter of Transmittal. When authorizing such payment in relation to any lost, stolen or destroyed certificate, the former holder of such Shares will, as a condition precedent to the delivery of such Consideration, give a bond satisfactory to the Corporation, the Purchaser and the Depositary in such sum as the Purchaser may direct or otherwise indemnify the Corporation and the Purchaser in a manner satisfactory to the Corporation and the Purchaser against any claim that may be made against the Corporation or the Purchaser with respect to the certificate alleged to have been lost, stolen or destroyed.

5.3 Extinction
 of Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 any Former Shareholder fails to deliver to the Depositary the certificates, documents or
 instruments required to be delivered to the Depositary under Section 5.1 or Section 5.2 in
 order for such Former Shareholder to receive the Consideration which such Former Shareholder
 is entitled to receive pursuant to Section 3.1, on or before the sixth anniversary of the
 Effective Date, on the sixth anniversary of the Effective Date (i) such Former Shareholder
 will be deemed to have donated and forfeited to the Purchaser or its successor any Consideration
 held by the Depositary in trust for such Former Shareholder to which such Former Shareholder
 is entitled and (ii) any certificate formerly representing Shares held by such Former Shareholder
 will cease to represent a claim of any nature whatsoever and will be deemed to have been
 surrendered to the Purchaser and will be cancelled. Neither the Corporation nor the Purchaser,
 or any of their respective successors, will be liable to any person in respect of any Consideration
 (including any consideration previously held by the Depositary in trust for any Former Shareholder
 which is forfeited to the Corporation or the Purchaser or delivered to any public official
 pursuant to any applicable abandoned property, escheat or similar Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 payment made by way of cheque by the Depositary pursuant to this Plan of Arrangement that
 has not been deposited or has been returned to the Depositary or that otherwise remains unclaimed,
 in each case, on or before the sixth anniversary of the Effective Date, and any right or
 claim to payment hereunder that remains outstanding on the sixth anniversary of the Effective
 Date, will cease to represent a right or claim of any kind or nature and the right of applicable
 Former Shareholder to receive the Consideration or other payment pursuant to this Plan of
 Arrangement will terminate and be deemed to be surrendered and forfeited to the Purchaser
 or Corporation, as applicable, for no consideration.

5.4 Withholding
 Rights

Each of the Purchaser, Guarantor, the Corporation, and the Depositary or any other Person that makes a payment under this Plan of Arrangement shall be entitled to deduct and withhold from the amounts otherwise payable to any Shareholder, or any other person under this Plan of Arrangement (including any payment to Dissenting Shareholders or former Shareholders) such amounts as the Purchaser, Corporation, the Guarantor or the Depositary determines, acting reasonably, based on advice from counsel, they should deduct and withhold with respect to such payment under the Tax Act and the rules and regulations promulgated thereunder, or any provision of any Law, including any provincial, state, local or foreign tax Law, and shall remit such deduction and withholding amount to the appropriate Governmental Entity. For the purposes hereof, all such withheld amounts will be treated as having been paid to the person in respect of which such deduction and withholding was made on account of the obligation to make payment to such person hereunder, provided that such deducted or withheld amounts are actually remitted to the appropriate Governmental Entity by or on behalf of the Purchaser, Guarantor, the Corporation, the Depositary, or other Person as the case may be.

5.5 No Liens

Any exchange or transfer of securities pursuant to this Plan of Arrangement will be free and clear of any Liens or other claims of third parties of any kind.

5.6 Paramountcy

From and after the Effective Time: (a) this Plan of Arrangement will take precedence and priority over any and all Shares issued prior to the Effective Time, (b) the rights and obligations of the Shareholders, the Corporation, the Purchaser, the Depositary, the Guarantor and any transfer agent or other depositary therefor in relation thereto, will be solely as provided for in this Plan of Arrangement, and (c) all actions, causes of action, claims or proceedings (actual or contingent and whether or not previously asserted) based on or in any way relating to any Shares will be deemed to have been settled, compromised, released and determined without liability except as set forth in this Plan of Arrangement.

**ARTICLE 6**

**AMENDMENTS**

6.1 Amendments
 to Plan of Arrangement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation and the Purchaser reserve the right to amend, modify or supplement this Plan
 of Arrangement at any time and from time to time prior to the Effective Time, provided that
 each such amendment, modification or supplement must be (i) set out in writing, (ii) approved
 by the Purchaser and the Corporation, (iii) filed with the Court and, if made following the
 Meeting, approved by the Court; and (iv) communicated to or approved by the Shareholders
 if and as required by the Court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 amendment, modification or supplement to this Plan of Arrangement may be proposed by the
 Corporation and the Purchaser at any time prior to the Meeting with or without any other
 prior notice or communication and, if so proposed and accepted by the persons voting at the
 Meeting (other than as may be required under the Interim Order), will become part of this
 Plan of Arrangement for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 amendment, modification or supplement to this Plan of Arrangement that is approved or directed
 by the Court following the Meeting will be effective only if such amendment, modification
 or supplement (i) is consented to by each of the Corporation and the Purchaser and (ii) if
 required by the Court or applicable Law, is consented to by Shareholders voting in the manner
 directed by the Court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 amendment, modification or supplement to this Plan of Arrangement may be made following the
 Effective Date unilaterally by the Purchaser provided that it concerns a matter which, in
 the reasonable opinion of the Purchaser, is of an administrative nature required to better
 give effect to the implementation of this Plan of Arrangement and is not adverse to the financial
 or economic interests of any Former Shareholder or to the obligations of the Corporation
 or any of its Subsidiaries towards third parties, and such amendments, modifications or supplements
 need not be filed with the Court or communicated to the Former Shareholders.

**ARTICLE 7**

**FURTHER ASSURANCES**

Notwithstanding that the transactions and events set out herein will occur and be deemed to occur in the order set out in this Plan of Arrangement without any further act or formality, each of the Corporation and the Purchaser will make, do and execute, or cause to be made, done and executed, any such further acts, deeds, agreements, transfers, assurances, instruments or documents as may reasonably be required by any of them in order to further document or evidence any of the transactions or events set out herein.

**SCHEDULE B**

**ARRANGEMENT RESOLUTION**

**BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:**

1. The
 arrangement (as it may be, or may have been, modified or amended in accordance with its terms,
 the "**Arrangement**") under Division 5 of Part 9 of the *Business Corporations Act* (British Columbia) (the "**BCBCA**") involving The INX Digital Company,
 Inc. (the "**Corporation**") and its shareholders, all as more particularly
 described and set forth in the Management Information Circular of the Corporation dated [ ● ]
 (the "**Circular** "), is hereby authorized, approved and adopted.

2. The
 plan of arrangement (as it may be, or may have been, modified or amended in accordance with
 its terms, the "**Plan of Arrangement**") involving the Corporation and its
 shareholders and implementing the Arrangement, the full text of which is attached as Appendix
 to the Circular is hereby authorized, approved and adopted.

3. The
 Arrangement Agreement (as it may be amended from time to time in accordance with its terms,
 the "**Arrangement Agreement**") dated as of April 3, 2025 between the Corporation,
 OpenDeal Inc. (dba Republic) and Republic Strategic Acquisition Co LLC and all the transactions
 contemplated therein, the actions of the directors of the Corporation in approving the Arrangement
 and the Arrangement Agreement and the actions of the directors and officers of the Corporation
 in executing and delivering the Arrangement Agreement and causing the performance by the
 Corporation of its obligations thereunder are hereby confirmed, ratified, authorized and
 approved.

4. The
 Corporation be and is hereby authorized to apply for a final order from the Supreme Court
 of British Columbia to approve the Arrangement on the terms set forth in the Arrangement
 Agreement and the Plan of Arrangement (as they may be amended, modified or supplemented and
 as described in the Circular).

5. Notwithstanding
 that this resolution has been passed (and the Arrangement approved and agreed to) by the
 shareholders of the Corporation, or that the Arrangement has been approved by the Supreme
 Court of British Columbia, the directors of the Corporation are hereby authorized and empowered
 without further approval of any shareholders of the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 amend the Arrangement Agreement or the Plan of Arrangement to the extent permitted by the
 Arrangement Agreement or Plan of Arrangement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 to the terms and conditions of the Arrangement Agreement, not to proceed with the Arrangement
 at any time prior to the Effective Time (as defined in the Arrangement Agreement).

6. Any
 officer or director of the Corporation is hereby authorized for and on behalf of the Corporation
 to execute and deliver for filing with the Registrar under the BCBCA any and all documents
 as are necessary or desirable to give effect to the Arrangement in accordance with the Arrangement
 Agreement or the Plan of Arrangement, such determination to be conclusively evidenced by
 the execution and delivery of such documents.

7. Any
 one director or officer of the Corporation is hereby authorized, empowered and instructed,
 acting for, in the name and on behalf of the Corporation, to execute or cause to be executed,
 under the seal of the Corporation or otherwise, and to deliver or to cause to be delivered,
 all such other documents and to do or to cause to be done all such other acts and things
 as in such person's opinion may be necessary or desirable in order to carry out the
 intent of the foregoing paragraphs of these resolutions and the matters authorized thereby,
 such determination to be conclusively evidenced by the execution and delivery of such document
 or the doing of such act or thing.

**SCHEDULE C**

**REPRESENTATIONS AND WARRANTIES OF THE CORPORATION**

1. Organization
 and Qualification

The Corporation is a corporation validly existing under the laws of the Province of British Columbia and has all requisite corporate power and authority to own, lease and operate its assets and properties and conduct its business as now owned and conducted. The Corporation is duly qualified, licensed or registered to carry on business and is in good standing in each jurisdiction in which the character of its assets and properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such qualification, licensing or registration necessary.

2. Corporate
 Authorization

The Corporation has the requisite corporate power and authority to enter into and perform its obligations under this Agreement. The execution and delivery and performance by the Corporation of this Agreement and the consummation of the Arrangement and the other transactions contemplated by this Agreement have been duly authorized by all necessary corporate action on the part of the Corporation and no other corporate proceedings on the part of the Corporation are necessary to authorize this Agreement or the consummation of the Arrangement and the other transactions contemplated hereby other than approval of the Circular and calling of the Meeting by the Board, approval by the Shareholders in the manner required by the Interim Order and Law and approval by the Court.

3. Execution
 and Binding Obligation

This Agreement has been duly executed and delivered by the Corporation, and constitutes a legal, valid and binding agreement of the Corporation enforceable against it in accordance with its terms subject only to any limitation on enforcement under Laws relating to (i) bankruptcy, winding-up, insolvency, reorganization, arrangement or other Law affecting the enforcement of creditors' rights generally and (ii) the discretion that a court may exercise in the granting of extraordinary remedies such as specific performance and injunction.

4. Governmental
 Authorization

The execution, delivery and performance by the Corporation of this Agreement and the consummation by the Corporation of the Arrangement and the other transactions contemplated hereby do not require any Authorization or other action by or in respect of, or filing, recording, registering or publication with, or notification to, any Governmental Entity by the Corporation or by any of its Subsidiaries other than: (i) the Interim Order and any approvals required by the Interim Order; (ii) the Final Order, (iii) the CMA Approval and (iv) such filings and other actions required under applicable Securities Laws and the rules and policies of the Cboe as are contemplated by this Agreement.

5. No Conflict/
 Non-Contravention

Save as set forth in Section 5 of the Corporation Disclosure Letter, the execution, delivery and performance by the Corporation of this Agreement and the consummation of the Arrangement and the other transactions contemplated hereby do not and will not (or would not with the giving of notice, the lapse of time or the happening of any other event or condition):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contravene,
 conflict with, or result in any violation or breach of the Constating Documents of the Corporation
 or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 to the formalities described in (4) above, contravene, conflict with or result in a violation
 or breach of any Law or result in a breach of any judgment, decree, order, or award of any
 Governmental Entity or arbitrator; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) allow
 any Person to exercise any rights, require any consent or other action by any Person, or
 constitute a default under, or cause or permit the termination, cancellation, acceleration
 or other change of any right or obligation or the loss of any benefit to which the Corporation
 or any of its Subsidiaries are entitled (including by triggering any rights of first refusal
 or first offer, change in control provision or other restriction or limitation), or result
 in the creation or imposition of any Lien upon any of the Corporation's assets or the
 assets of any of its Subsidiaries, under any Material Contract, Lease or any material Authorization
 to which the Corporation or any of its Subsidiaries is a party or by which the Corporation
 or any of its Subsidiaries is bound.

6. Capitalization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 authorized share capital of the Corporation consists of an unlimited number of Shares and
 an unlimited number of preferred shares, of which, as of the date hereof, an aggregate of
 237,875,566 Shares and nil preferred shares are issued and outstanding **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 outstanding Shares have been duly authorized and validly issued as fully paid and non-assessable
 and free and clear of any Liens (except for the Permitted Lien or the undertakings of INX
 Limited and the Corporation towards the holders of INX Tokens as specified in the INX Registration
 Statement.) No Shares and other securities of the Corporation have been issued in violation
 of any pre-emptive or similar rights applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section
 6(c) of the Corporation Disclosure Letter sets forth, as of the date hereof, the number of
 issued and outstanding Shares, warrants, Options and other securities of the Corporation
 exercisable into Common Shares, including the number of Shares subject to each such security,
 the date of grant, the name of the registered holder and the extent to which such securities
 are vested as of the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All
 outstanding Shares have been issued in material compliance with Laws and all Shares that
 may be issued pursuant to the exercise of other securities will, when issued in accordance
 with the terms thereof, be duly authorized, and validly issued, and fully-paid and non-assessable
 and have been recorded on the Corporation's financial statements in accordance with
 IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except
 as set out in Section 6(c) of the Corporation Disclosure Letter there are no options, warrants,
 calls, conversion privileges, pre-emptive rights, stock appreciation rights or other rights,
 agreements, arrangements, instruments or commitments of any kind that obligate the Corporation
 or any of its Subsidiaries to issue or sell any securities of the Corporation or any of its
 Subsidiaries or any obligations convertible or exchangeable into or exercisable for, or give
 any Person a right to subscribe for or acquire, any securities of the Corporation or any
 of its Subsidiaries, or the value of which is based on the value of the securities of the
 Corporation or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) There
 are no obligations of the Corporation to repurchase, redeem or otherwise acquire any securities
 of the Corporation or qualify securities for public distribution in Canada or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Since
 January 10, 2022, there has been no dividend or distribution of any kind declared, paid or
 made by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) As
 of the date of this Agreement, pursuant to the INX Registration Statement and any supplement
 to the prospectus thereof, INX Limited is eligible to generate and issue up to 200,000,000
 INX Tokens and since the date of the INX Registration Statement, INX Limited has generated
 such number of INX Tokens. 138,322,320 of such INX Tokens (including restricted INX Tokens
 and INX Tokens underlying options to purchase INX Tokens which were granted under INX Limited
 incentive plan) are held by Persons other than INX Limited and 61,677,680 of such INX Tokens
 are held by INX Limited (including 35,000,000 INT Tokens reserved by INX Limited pursuant
 to the provisions of the INX Registration Statement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All
 outstanding INX Tokens have been duly authorized and validly issued as fully paid and free
 and clear of any Liens, except for undertakings of INX Limited and the Corporation towards
 the holders of INX Tokens as specified in the INX Registration Statement or the INX Token
 Purchase Agreements. No INX Tokens have been issued in violation of any pre-emptive or similar
 rights applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All
 outstanding INX Tokens have been issued in material compliance with Laws and all INX Tokens
 that may be issued pursuant to the exercise of other securities will, when issued in accordance
 with the terms thereof, be duly authorized, and validly issued and fully-paid and have been
 recorded on the INX Limited's financial statements in accordance with IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Registration Statement does not contain any Misrepresentations, is duly filed with the U.S.
 Securities and Exchange Commission, and duly qualifies the distribution of the INX Tokens
 from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) There
 are no obligations of INX Limited to repurchase, redeem or otherwise acquire any INX Tokens
 except as otherwise specified in the Registration Statement.

7. Shareholders'
 and Similar Agreement

The Corporation is not a party to any shareholder, pooling, voting or other similar arrangement or agreement relating to the ownership or voting of any of the securities of the Corporation and has not adopted a shareholder rights plan or any other similar plan or agreement.

8. Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section
 8(a) of the Corporation Disclosure Letter sets forth a complete and accurate list as of the
 date of this Agreement of all Persons in which the Corporation owns or controls, directly
 or indirectly, any equity or proprietary interest indicating: (i) its name; (ii) the number,
 type and principal amount, as applicable, of its outstanding equity securities or other equity
 interests and a list of registered holders of capital stock or other equity interests; and
 (iii) its jurisdiction of incorporation, organization or formation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Subsidiary is a corporation or company validly existing under the laws of the jurisdiction
 of its incorporation, amalgamation, constitution or formation, as the case may be, and has
 all requisite corporate power and authority to own, lease and operate its properties and
 assets and to carry on its business as now being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corporation is, directly or indirectly, the registered and beneficial owner of all of the
 outstanding shares or other equity interests of each of its Subsidiaries, free and clear
 of any Liens, except for Permitted Liens, and all such shares or other equity interests so
 owned by the Corporation have been duly authorized and validly issued, as fully paid and
 non-assessable, and no such shares or other equity interests have been issued in violation
 of any Law or any pre-emptive or similar rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except
 for the shares or other equity interests owned by the Corporation in any Subsidiary, the
 Corporation does not own, beneficially or of record, any equity interests of any kind in
 any other Person.

9. Securities Law
 Matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation is a "reporting issuer" under Securities Laws in the provinces of
 British Columbia, Alberta, and Ontario, and is not on the list of reporting issuers in default
 under the Securities Laws of these provinces and territories. The Shares are listed and posted
 for trading on Cboe. The Corporation is not in default of any requirement of applicable rules
 and requirements of Cboe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) INX Limited
 is a reporting company in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corporation has not taken any action to cease to be a reporting issuer in any province or
 territory nor has the Corporation received notification from any Securities Authority seeking
 to revoke the reporting issuer status of the Corporation. No delisting, suspension of trading
 halt, or cease trade order with respect to any securities of the Corporation is in effect
 and the Corporation is not subject to any formal or informal audit, review, enquiry, investigation
 or other proceeding relating to any such order by any Securities Authority or Cboe There
 are no outstanding or unresolved comments in comment letters from any Securities Authority
 or the Cboe with respect to any of the Corporation Filings. The Corporation is not in default
 of any material provision of applicable Securities Laws or the rules and regulations of the
 Cboe and there are no current, pending, or, to the knowledge of the Corporation, threatened
 proceedings before any Governmental Entity relating to any alleged non-compliance with any
 applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Corporation has timely filed all material forms, reports, schedules, statements and other
 documents required to be filed under Securities Laws with any Securities Authority since
 January 10, 2022. The documents comprising the Corporation Filings complied as filed in all
 material respects with Law and did not, as of the date filed (or, if amended or superseded
 by a subsequent filing prior to the date of this Agreement, on the date of such filing),
 contain any Misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Corporation has not filed any confidential material change report (which at the date of this
 Agreement remains confidential) with any Securities Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Corporation is not subject to continuous disclosure or other public reporting requirements
 under any Securities Laws outside of Canada or the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Other
 than INX Digital, Inc., INX Securities, LLC and INX Transfer Agent, LLC, none of the Corporation
 or any other Subsidiaries of the Corporation is required to be registered as a dealer, money
 transmitter, advisor or to be recognized as a marketplace with one or more Securities Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To
 the knowledge of the Corporation and other than as disclosed in Section 9(h) of the Corporation
 Disclosure Letter, other than pursuant to any Rollover Agreement (a) no related party of
 the Corporation (within the meaning of MI 61-101) is entitled to receive a "collateral
 benefit" (within the meaning of such instrument) as a consequence of the transactions
 contemplated by this Agreement, and (b) no Shares, except Shares beneficially owned or over
 which control or direction is exercised by Republic or a Rollover Shareholder, are required
 by MI 61-101 to be excluded from voting on the Arrangement.

10. Financial
 Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 audited consolidated financial statements of the Corporation for the years ended December
 31, 2023 and the interim consolidated financial statements for the third quarter of 2024
 (including the notes thereto and the auditor's report thereon) included in the Corporation
 Filings (i) were prepared in accordance with IFRS, (ii) complied as to form in all material
 respects with applicable accounting requirements under applicable Laws, and (iii) fairly
 present, in all material respects, the consolidated financial position of the Corporation
 and its Subsidiaries as of their respective dates and the consolidated financial performance
 and cash flows of the Corporation and its Subsidiaries for the respective periods covered
 thereby (except as may be expressly indicated in the notes to such financial statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation does not intend to correct or restate, nor is there any basis for any correction
 or restatement of, any aspect of any of the financial statements referred to in this Section
 (10).

11. Books and Records

The financial books, records and accounts of the Corporation and each of its Subsidiaries (i) have been maintained, in all material respects, in accordance with IFRS, and good business practices and applicable Laws (ii) accurately and fairly reflect, in all material respects, all the material transactions, acquisitions and dispositions of the Corporation and its Subsidiaries, and (ii) accurately and fairly reflect, in all material respects, the basis for the Corporation's financial statements. The corporate records and minute books of the Corporation and each of its Subsidiaries, copies of which have been provided to the Purchaser have been maintained in accordance with all applicable Laws in all material respects; and (B) are complete and accurate in all material respects.

12. Disclosure
 Controls and Internal Control over Financial Reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation maintains a system of disclosure controls and procedures (as such term is defined
 in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*) that are designed to provide reasonable assurance that: (i) material
 information relating to the Corporation is made known to the Corporation's management,
 including its Chief Financial Officer and Chief Executive Officer, particularly during the
 periods in which the Corporation's interim filings and annual filings (as such terms
 are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*) are being prepared; and (ii) information required to be disclosed
 by the Corporation in such annual or interim filings or other reports filed or submitted
 by it under Securities Laws, is recorded, processed, summarized and reported within the time
 periods specified in Securities Laws, subject to the limitations on scope of design set forth
 in the certifications included in the Corporation Filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation maintains a system of internal control over financial reporting (as such term
 is defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*) that is designed to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with IFRS, subject to the limitations on scope of design set forth
 in the certifications included in the Corporation Filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither
 the Corporation nor any of its Subsidiaries has received any written complaint, allegation,
 assertion, or claim regarding accounting, internal accounting controls or auditing matters,
 including any complaint, allegation, assertion, or claim that the Corporation or any of its
 Subsidiaries has engaged in questionable accounting or auditing practices.

13. Auditor

Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global is and was, during the periods covered by its reports included in the Corporation Filings, independent as required by applicable Laws and in accordance with applicable Securities Laws. There has not been any reportable event (within the meaning of National Instrument 51-102 *Continuous Disclosure Obligations*) with such auditors with respect to audits of Corporation and its Subsidiaries.

14. No Undisclosed
 Liabilities

There are no liabilities or obligations of the Corporation or any of its Subsidiaries, whether accrued, contingent, absolute, determined, determinable or otherwise, other than liabilities or obligations: (i) disclosed in the Corporation Filings; (ii) incurred in the Ordinary Course since December 31, 2023; or (iii) incurred in connection with this Agreement.

15. Related Party
 Transactions

Except as disclosed in the Corporation Filings, neither the Corporation nor any of its Subsidiaries is indebted to any director, Officer or employee of the Corporation or any of its Subsidiaries or any of their respective Affiliates or Associates (except for amounts due in the Ordinary Course as salaries, bonuses and director's fees or the reimbursement of Ordinary Course expenses), and there are no Contracts (other than employment agreements, stock option agreements, grant letters or indemnification agreements) with, or advances or loans to, guarantees in favour of, or material liabilities or other obligations incurred by, any Officer or director of the Corporation or any of its Subsidiaries, or any of their respective Affiliates or Associates (except for "routine indebtedness" as defined under applicable Securities Laws).

16. Absence of
 Certain Changes or Events

Since December 31, 2023, except as disclosed in the Corporation Filings and other than the transactions contemplated in this Agreement, the business of the Corporation and its Subsidiaries has been conducted in the Ordinary Course and there has not been any event, circumstance or occurrence which has had, or which would reasonably be expected to have, a Material Adverse Effect.

17. Compliance
 with Laws

Except as disclosed in Section 17 of the Corporation Disclosure Letter, the Corporation and each of its Subsidiaries is in material compliance with Law and neither the Corporation nor any of its Subsidiaries is, to the knowledge of the Corporation, under any investigation with respect to, or, has been charged with, or, to the knowledge of the Corporation, threatened to be charged with, or, has received written notice of, any violation or alleged violation of any Law.

18. Authorizations
 and Licenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation and each of its Subsidiaries own, possess or have obtained all Authorizations
 that are required by Law in connection with the operation of the business of the Corporation
 or any of its Subsidiaries as presently conducted, or in connection with the current ownership,
 operation or use of the assets of the Corporation or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation and each of its Subsidiaries are in compliance with all such Authorizations.
 Each Authorization is valid and in full force and effect in accordance with its terms, and
 is renewable (if subject to lapse) by its terms or in the Ordinary Course.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No
 action or proceeding is pending or, to the knowledge of the Corporation, threatened in respect
 of, and none of the Corporation or any of its Subsidiaries is, to the knowledge of the Corporation,
 under investigation which could reasonably result in or has received written notice of revocation,
 non-renewal of, or material amendments to, any such Authorization, or of the intention of
 any Governmental Entity to revoke, refuse to renew or materially amend any such Authorization.

19. Fairness
 Opinion

The Board received the Fairness Opinion (a true and complete copy of which, when executed and delivered in writing, will be provided to the Purchaser) and the Fairness Opinion has not been withdrawn or modified.

20. Brokers

Other than the provider of the Fairness Opinion, no investment banker, broker, finder, financial advisor or other intermediary has been retained by or is authorized to act on behalf of the Corporation or any of its Subsidiaries and is entitled to any fee, commission or other payment from the Corporation or any of its Subsidiaries in connection with the Arrangement or any other transaction contemplated by this Agreement.

21. Board Approval

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Board, after receiving legal and financial advice, has (with interested directors abstaining
 from voting): (i) determined that the Arrangement is in the best interests of the Corporation
 and fair to the Shareholders (other than Republic and the Rollover Shareholders with respect
 to their Rollover Shares); (ii) resolved to (excluding any director not entitled to vote)
 recommend that the Shareholders (other than Republic and the Rollover Shareholders with respect
 to their Rollover Shares) vote in favour of the Arrangement Resolution; and (iii) authorized
 the entering into of this Agreement and the performance by the Corporation of its obligations
 under this Agreement, and no action has been taken to amend, or supersede such determinations,
 resolutions, or authorizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 action has been taken to amend, or supersede such determinations, resolutions or authorizations
 of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each
 of the directors and Officers of the Corporation who owns Shares has advised the Corporation,
 and the Corporation believes, that they intend to vote or cause to be voted all Shares beneficially
 held by them in favour of the Arrangement Resolution and against any resolution submitted
 by any Shareholder that is inconsistent therewith and the Corporation shall make a statement
 to that effect in the Circular and in any press release disclosing the Arrangement.

22. Material
 Contracts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section
 22(a) of the Corporation Disclosure Letter sets out a complete and accurate list of all Material
 Contracts. True and complete copies of the Material Contracts have been made available to
 the Purchaser and no such Material Contract has, since such disclosure, been modified, rescinded
 or terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Material Contract is in full force and effect and is a legal, valid and binding obligation
 of the Corporation or a Subsidiary, as applicable, enforceable against it in accordance with
 its terms, and is a legal, valid and binding obligation of the other party to such Material
 Contract, enforceable against it in accordance with its terms, subject, in each case, to
 any limitation on enforcement under Law relating to (i) bankruptcy, winding-up, insolvency,
 arrangement, reorganization or other Law of general application affecting the enforcement
 of creditors' rights and (ii) the discretion that a court may exercise in the granting
 of extraordinary remedies such as specific performance and injunction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corporation and its Subsidiaries have performed all respective material obligations required
 to be performed by them to date under the Material Contracts and, to the knowledge of the
 Corporation, neither the Corporation nor any of its Subsidiaries is in material breach or
 default under any Material Contract, nor does there exist any condition that with the passage
 of time or the giving of notice or both would result in such a breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None
 of the Corporation or any of its Subsidiaries has received from any other party to a Material
 Contract any written notice of any breach or default under any such Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Corporation has not received any written notice that any party to a Material Contract intends
 to cancel, terminate or otherwise modify or not renew such Material Contract.

23. Real Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither
 the Corporation nor any of the Subsidiaries owns any real or immovable property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section
 23(b) of the Corporation Disclosure Letter sets out a complete and accurate list of all real
 and immoveable property leased, subleased, licensed and/or occupied by the Corporation and/or
 its Subsidiaries (each such property disclosed, or required to be disclosed, in Section 23(b)
 of the Corporation Disclosure Letter, a "**Leased Property** "), in each case
 by reference to their municipal addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section
 23(c) of the Corporation Disclosure Letter sets out a complete and accurate list of all of
 the Leases. True and complete copies of the Leases have been made available to the Purchaser
 and no Lease has been modified, rescinded or terminated since such disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Neither
 the Corporation nor any of its Subsidiaries is a party to, or under any agreement to become
 a party to, any lease, licence or occupancy agreement with respect to real or immoveable
 property other than the Leases in respect of the Leased Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each
 Lease is in full force and effect and creates a good and valid leasehold estate in the Leased
 Properties thereby demised, free and clear of all Liens except for Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except
 as disclosed in Section 23(f) of the Corporation Disclosure Letter, none of the Leases has
 been assigned, and none of the Leased Properties has been subleased or sublicensed by the
 Corporation or any of its Subsidiaries, to any Person.

24. Personal Property

The Corporation and its Subsidiaries have valid, good and marketable title to all material personal or movable property of any kind or nature which the Corporation or any of its Subsidiaries purports to own or as reflected in the Corporation's financial statement (except for Crypto Assets of clients of the Corporation disclosed in the financial statements which are controlled by the Corporation or its Subsidiaries), free and clear of all Liens (other than Permitted Liens). The Corporation and its Subsidiaries, as lessees, have the right under Contract to use, possess and control all personal or movable property leased by and material to the Corporation or any of its Subsidiaries as used, possessed and controlled by the Corporation or its Subsidiaries, as applicable.

25. Intellectual
 Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section
 25(a) of the Corporation Disclosure Letter sets out a list of all domestic and foreign patents,
 patent applications, registered trade-marks, trade-mark applications, registered copyrights
 and registered domain names owned by the Corporation and its Subsidiaries which each have
 been registered or applied for by the Corporation and its Subsidiaries in accordance with
 Law. Such registrations and applications have been properly maintained and renewed in accordance
 with Law to the extent commercially reasonable to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section
 25(b) of the Corporation Disclosure Letter sets out a list of all licences pursuant to which
 the Corporation or its Subsidiaries are granted rights to use the Intellectual Property of
 a third party, excluding, for greater certainty, licenses for commercially available off-the-shelf
 software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section
 25(c) of the Corporation Disclosure Letter sets out a list of all licenses pursuant to which
 the Corporation or its Subsidiaries have granted rights to the Corporation Owned Intellectual
 Property to a third party, excluding for greater certainty (i) any licenses granted to customers
 of the Corporation in the Ordinary Course and (ii) any licenses granted in the Ordinary Course
 to third parties for promotional, marketing, advertising, production or manufacturing purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All
 Intellectual Property used by the Corporation and its Subsidiaries in the carrying on of
 their business is owned by or licensed to the Corporation and its Subsidiaries. Except for
 the Permitted Liens, the Corporation and its Subsidiaries exclusively own all right, title
 and interest in and to the Owned Intellectual Property, free and clear of all Liens, other
 than Permitted Liens, and the Corporation and its Subsidiaries have the right to use all
 the Intellectual Property used by them in the carrying on of their business as presently
 conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Other
 than as disclosed in Section 25(c) of the Corporation Disclosure Letter, the Corporation
 and its Subsidiaries are not party to or bound by any Contract that limits their ability
 to use, sell, transfer, assign or convey any of the Owned Intellectual Property. Other than
 as disclosed in Section 25(c) of the Corporation Disclosure Letter, the Corporation and its
 Subsidiaries have not granted to any person any right, license or permission to use all or
 any portion of, or otherwise encumbered any of their rights in, or to, any of the Owned Intellectual
 Property out of the Ordinary Course. No royalties, fees or other compensation are payable
 by the Corporation or its Subsidiaries to any person in respect of the use of any Intellectual
 Property used in carrying on their business other than the fees payable pursuant to the licences
 disclosed in Section 25(b) of the Corporation Disclosure Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Corporation and its Subsidiaries do not infringe, misappropriate or otherwise violate the
 Intellectual Property of any Person. No action or proceeding is pending or, to the knowledge
 of the Corporation, threatened by any Person alleging that the conduct of the Corporation
 and its Subsidiaries' business, including the use of the Owned Intellectual Property,
 infringes upon or otherwise violates any of their Intellectual Property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To
 the knowledge of the Corporation, no Person is currently infringing, misappropriating or
 otherwise violating any of the Owned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All
 Intellectual Property developed by employees, Officers, consultants and contractors retained
 by the Corporation or its Subsidiaries to develop Intellectual Property or otherwise performing
 services relating to the development of Intellectual Property for the Corporation or its
 Subsidiaries is owned by the Corporation (except for moral rights) or has been assigned to
 the Corporation pursuant to written agreement, and such employees, Officers, consultants
 and contractors have irrevocably waived in writing any moral rights to any such Intellectual
 Property to the full extent permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Corporation has taken commercially reasonable measures to protect the confidentiality of
 its trade secrets, proprietary know-how, non-public information and confidential information
 included in the Owned Intellectual Property, and none of the Corporation's respective
 trade secrets, proprietary know-how, non-public information and confidential information
 included in the Owned Intellectual Property have been disclosed to or, to the Corporation's
 knowledge, discovered by any third party other than pursuant to the reasonable terms of non-disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Except
 as would not reasonably be expected to have a Material Adverse Effect, to the knowledge of
 the Corporation, none of the software owned by the Corporation or distributed by the Corporation
 incorporates or is comprised of or distributed with any Publicly Available Software in a
 manner which (i) requires the distribution of the software source code in connection with
 the distribution of such software in object code form; (ii) materially limits the Corporation's
 freedom to seek full compensation in connection with making, using, marketing, licensing
 or distributing such software; or (iii) allows a Person or requires that a Person have the
 right to decompile, disassemble or otherwise reverse engineer such software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In
 respect of the hardware equipment and software components of the information management,
 technology and computer systems of the Corporation (collectively, the "**Systems** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Systems have been maintained and supported in accordance with prudent industry practices
 in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there
 is a commercially reasonable disaster recovery plan in place in respect of such Systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) commercially
 reasonable controls are in place to control access and security to such Systems and there
 are appropriate firewalls, virus protection programs and other cybersecurity measures in
 place that are consistent with current standards and practices of a reasonably prudent business
 operating in a similar industry and that such measures and policies reasonably safeguards
 proper access to and the security of, the data of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all
 related data, content and programs are backed-up regularly with copies stored safely and
 securely off-site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Except
 as disclosed in the Corporation Filings, there have been no written complaints relating to
 any improper use or disclosure of any information involving the Corporation, nor any breach
 in the information security, cybersecurity or similar systems in respect of the Corporation
 since January 10, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) There
 are no outstanding judgements, orders, decrees, stipulations or Laws that restrict the use
 of the Owned Intellectual Property.

26. Litigation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as disclosed in the Corporation Filings or in Section 26(a) of the Corporation Disclosure Letter,
there are no actions, suits, arbitrations or other proceedings pending or, to the knowledge of the Corporation, threatened against the
Corporation or any of its Subsidiaries or affecting any of their respective properties or assets, before any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no material award of any Governmental Entity outstanding against the Corporation or any of its
Subsidiaries, and neither the Corporation nor any of its Subsidiaries is subject to any outstanding order, writ, injunction or decree
of any Governmental Entity.

27. Environmental Matters

The Corporation and each of its Subsidiaries (i) are in compliance in all respects with all Environmental Laws; (ii) have received all Authorizations required of them under the applicable Environmental Laws to conduct their business, and (iii) are in compliance with all terms and conditions of any such Authorization, except where such non-compliance with Environmental Laws, failure to receive required Authorizations or failure to comply with the terms and conditions of such Authorizations would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

28. Employees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 28(a) of the Corporation Disclosure Letter contains a list of all Corporation Employees, Officers
and contractors of the Corporation or the Subsidiaries, and a list of written employment Contracts with the same (copies of which Contracts
were made available to the Purchaser), who have yearly compensation (including but not limited to salary, bonus and commissions) of greater
than $200,000 per annum and/or is a party to any agreement, arrangement, plan, obligation, or understanding as to: (i) length of notice
or severance payment required to terminate his or her employment, other than such as results by Law from the employment of an employee
without an agreement as to notice or severance; or (ii) retention, severance or termination payments in connection with the termination
of their position or their employment as a direct result of a change in control of the Corporation (including as a result of the Arrangement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as disclosed in Section 28(b) of the Corporation Disclosure Letter, neither the Corporation nor
any of its Subsidiaries is subject to any claim for wrongful dismissal, constructive dismissal or any other claim, written complaint or
litigation relating to employment, discrimination or termination of employment of any current or former Corporation Employee or relating
to any failure to hire a candidate for employment, and there is no order pursuant to any Law requiring the reinstatement of any former
Corporation Employee or requiring the taking of any action or the refraining from taking any action, in respect of any current or former
Corporation Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation and its Subsidiaries are in compliance with all terms and conditions of employment and
Laws respecting employment and labour, including pay equity, wages, hours of work, overtime pay, human rights and occupational health
and safety, workers' compensation, termination of employment, and the terms of any national collective bargaining agreement prescribed
by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as set forth in Section 28(a) of the Corporation Disclosure Letter, there are no change of control
payments, golden parachutes, termination or severance payments, retention payments or Contracts with any Officer of the Corporation or
any of its Subsidiaries providing for cash or other compensation or benefits upon the consummation of, or relating to, the Arrangement,
including a change of control of the Corporation or of any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No labour dispute (including any strike, lock-out or work slow-down or stoppage) with the Corporation
Employees exists or is pending or, to the knowledge of the Corporation, is threatened or imminent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No union has been accredited or otherwise designated to represent any Corporation Employees and, to the
knowledge of the Corporation, no accreditation request or other representation question is pending with respect to the Corporation Employees
and no collective agreement or collective bargaining agreement is in effect in any of the premises of the Corporation or the Subsidiaries,
and none is currently being negotiated by the Corporation or its Subsidiaries.

29. Employee Plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the current plans for retirement, bonus, stock purchase, profit sharing, stock option, deferred
compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation,
legal benefits, unemployment benefits, vacation or incentive contributed to, or required to be contributed to, by the Corporation or any
of its Subsidiaries for the benefit of any current or former director, Officer, employee or consultant of the Corporation or any of its
Subsidiaries, as applicable, (the "**Employee Plans**") has been maintained in accordance with its terms and with the requirements
prescribed by any and all Laws that are applicable to such Employee Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation has made available to the Purchaser true, correct and complete copies of all the Employee
Plans as amended, together with all related documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All current obligations of the Corporation or any of its Subsidiaries regarding the Employee Plans have
been satisfied, and all contributions, premiums or taxes required to be made or paid by the Corporation or any of its Subsidiaries, as
the case may be, under the terms of each Employee Plan or by Law in respect of the Employee Plans have been made in a timely fashion in
accordance with Law and in accordance with the terms of the applicable Employee Plan.

30. Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Policies of insurance issued by insurers of recognized financial responsibility are maintained in respect
of the operations, properties and assets, employees, directors and Officers of the Corporation and its Subsidiaries in such amounts and
covering such risks as are prudent and customary in the businesses in which they are engaged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No default exists under such policies of insurance as to the payment of premiums or otherwise under the
terms of any such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no claims by the Corporation or its Subsidiaries under any such policy as to which any insurance
company is denying liability or defending under a reservation of rights clause, and neither the Corporation nor any of its Subsidiaries
has been denied any insurance coverage which it has sought or for which it has applied.

31. Taxes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as disclosed in Section 31 of the Corporation Disclosure Letter, all Tax Returns required by Law
to be filed with any Governmental Entity by, or on behalf of, the Corporation and each of its Subsidiaries have been filed when due in
accordance with Law (taking into account any applicable extensions), and all such material Tax Returns are, or shall be at the time of
filing, true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation and each of its Subsidiaries have paid, or have collected, withheld and remitted to the
appropriate Governmental Entity all Taxes due and payable, whether or not such Taxes are shown on a Tax Return or on any assessments or
reassessments, on a timely basis, other than those Taxes being contested in good faith and in respect of which adequate reserves have
been recorded in the Books and Records, and where payment is not yet due, have established in accordance with IFRS an adequate accrual
for all Taxes through the end of the last period for which the Corporation and each of its Subsidiaries ordinarily record items on their
Books and Records and such Taxes will be remitted when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as disclosed in Section 31 of the Corporation Disclosure Letter, there are no currently effective
elections, agreements or waivers extending the statutory period or providing for an extension of time with respect to the assessment or
reassessment of any Taxes, or of the filing of any Tax Return or any payment of material Taxes, by the Corporation or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as disclosed in Section 31 of the Corporation Disclosure Letter, no claim has been made by any
Governmental Entity in a jurisdiction where the Corporation or any of its Subsidiaries does not file Tax Returns that the Corporation
or such Subsidiary (as applicable) is or may be subject to Tax by that jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All scientific research and experimental development investment tax credits and all other tax credits
(" **Tax Credits**") that were claimed by the Corporation and each of its Subsidiaries in accordance in all respects with
the Tax Act and any other provision of Law and the Corporation and each of its Subsidiaries satisfied, the relevant criteria and conditions
entitling them to such Tax Credits. All refunds of Tax Credits received or receivable by the Corporation and each of its Subsidiaries
in any fiscal year were claimed in accordance in all respects with the Tax Act and any other provision of Law and, at all relevant times,
the Corporation and each of its Subsidiaries that claimed refunds of Tax Credits satisfied the relevant criteria and conditions entitling
them to claim such a refund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as disclosed in Section 31 of the Corporation Disclosure Letter, there are no claims, actions,
suits, audits or other proceedings now pending or, to the knowledge of the Corporation, threatened against the Corporation or any of its
Subsidiaries in respect of any Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Corporation nor any of its Subsidiaries have owned property that is described in subparagraphs
(d)(i) to (iv) of the definition of "taxable Canadian property" in the Tax Act, at any time in the 60-month period immediately
preceding the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Neither the Corporation nor any Subsidiary is party to or bound by any tax sharing agreement, tax indemnity
obligation in favour of any Person or similar agreement in favour of any Person with respect to material income or other Taxes, other
than a customary commercial agreement or arrangement entered into in the ordinary course of business the primary purpose of which does
not relate to Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There are no transactions or events that have resulted, and no circumstances existing which could result,
in the application to the Corporation or any of its Subsidiaries of sections 80, 80.01, 80.03 or 80.04 of the Tax Act or any analogous
provision of any comparable Law of any province or territory of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Neither the Corporation nor any of its Subsidiaries have incurred any deductible outlay or expense owing
to a Person not dealing at arm's length (for purposes of the Tax Act) with the Corporation or such Subsidiary, as the case may be,
the amount of which would, in the absence of an agreement filed under paragraph 78(1)(b) of the Tax Act, be included in the Corporation
or such Subsidiary's income for Canadian income tax purposes, as the case may be, for any taxation year or fiscal period beginning
on or after the Effective Date under paragraph 78(1)(a) of the Tax Act or any analogous provision of any comparable Law of any province
or territory of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Neither the Corporation nor any of its Subsidiaries have any liability for the Taxes of any Person under
subsection 160(1) of the Tax Act (or any analogous provision of any comparable Law of any province or territory of Canada), as a transferee,
successor, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Neither the Corporation nor any of its Subsidiaries have ever had an obligation to file an information
return pursuant to (i) sections 237.3, 237.4 or 237.5 of the Tax Act, or (ii) sections 1079.8.5 or 1079.8.6 of the *Taxation Act* (Québec).

32. Anti-Corruption

Neither the Corporation nor any of its Subsidiaries, nor, to the knowledge of the Corporation, any of their respective directors, Officers, agents or employees, has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violated or is violating any provision of the Corruption of Foreign Public Officials Act (Canada), the
United States Foreign Corrupt Practices Act of 1977, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) or
any Law of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) made or authorized any direct or indirect contribution, payment or gift of funds, property or anything
else of value to any official, employee or agent of any Governmental Entity, authority or instrumentality in Canada, other jurisdictions
in which the Corporation or any of its subsidiaries has assets other than in accordance with applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) used any corporate funds, or made any direct or indirect unlawful payment from corporate funds, to any
foreign or domestic government official or employee or any unlawful contribution, gift, entertainment or other unlawful expense relating
to political activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) violated or is in violation of any provision of the Criminal Code (Canada) relating to foreign corrupt
practices, including making any contribution to any candidate for public office, in either case, where either the payment or gift or the
purpose of such contribution payment or gift was or is prohibited under the foregoing.

33. Money-Laundering

The operations of the Corporation and its Subsidiaries are and have been conducted at all times in compliance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) applicable financial recordkeeping and reporting requirements of the money laundering statutes of all
applicable jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the rules and regulations thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental
Entity,

(collectively, the "**Money Laundering Laws**").

No action, claim, notice of assessment, suit or proceeding by or before any commission, court, Governmental Entity, arbitrator or non-Governmental Entity involving the Corporation or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Corporation, threatened.

34. Privacy and Data Protection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation is, and has been, conducting its business in compliance in all material respect with all
Data Protection Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation's use of handling of Customer Data has not and does not violate any applicable Data
Protection Laws in a manner that could reasonably be expected to result in a Material Adverse Effect in respect of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There have been no breaches, security incidents, misuse of or unauthorized access to or disclosure of,
or any instances of accidental or unlawful destruction, loss or alteration of, any Personal Data in the possession or control of the Corporation
and, to the knowledge of the Corporation, there is no fact or matter which may give rise to the occurrence of any of the foregoing. The
Corporation has not received any written or other notice of any claims or investigations related to alleged violations of Data Protection
Laws, applicable privacy policies or contracts with respect to Personal Data, and, to the knowledge of Corporation, there are no facts
or circumstances which could form the basis for any such claim or investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Corporation is, and has been, conducting its business in compliance with all Anti-Spam Laws, other
than acts of non-compliance which individually or in the aggregate are not material.

35. Cryptocurrency Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 35 of the Corporation Disclosure Letter sets forth the total amount of all Crypto Assets (i) under
management, and (ii) under custody (including the breakdown by custodian) on the Crypto Assets exchange platform operated by the Corporation
and its Subsidiaries at December 31, 2024 on an unaudited basis, subject to normal audit adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Corporation nor its Subsidiaries, employees, management or contractors are engaged in any
Wash Trading or have engaged in any Wash Trading since the incorporation of the Corporation or the applicable Subsidiary, or any other
acts or forms of trading which manipulate or inflate transaction volume, revenue or user numbers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of the Corporation and the Subsidiaries' existing security and coin storage policies and practices
have been disclosed to the Purchaser. Each of the Corporation and its Subsidiaries are in compliance with such policies and actively monitor
their balances to ensure they remain in compliance with such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All of the cryptocurrency reflected in the Corporation's financial statement is custodied by the
Corporation, its Subsidiaries or third party service providers contracted by them. Any Crypto Assets of clients of the Corporation not
disclosed in the Corporation's financial statements
have been disclosed to the Purchaser on Section 35 of the Corporation Disclosure Letter and are equal to the liabilities associated with
such Crypto Assets reflected in the Corporation's financial statements and are compliant with all applicable third-party custody
requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Corporation and its Subsidiaries, through those authorized directors, Officers, employees, and consultants
set forth in Section 35 of the Corporation Disclosure Letter, have full, complete and sole control of the keys to the Corporation and
Subsidiaries' hot and cold wallets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Corporation and its Subsidiaries have adequate and prudent hedging and pricing strategies in place
and, except as disclosed in the Corporation Filings, have not experienced material losses related to volatility in the pricing of the
Crypto Assets traded in connection with its business.

36. Competition Act

Neither the aggregate value of the assets in Canada of the Corporation and its Subsidiaries, nor the annual gross revenues from sales in, from or into Canada generated by the Corporation and its Subsidiaries, exceed C$93 million, as determined in accordance with the Competition Act.

37. Investment Canada Act

The Corporation and its Subsidiaries do not, and at the Effective Time will not, carry on a cultural business, as such term is defined in the Investment Canada Act.

**SCHEDULE D**

**REPRESENTATIONS AND WARRANTIES OF THE PURCHASER**

1. Organization and Qualification

Each of the Purchaser and the Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite power and authority to own, lease and operate its assets and properties and conduct its business as now owned and conducted.

2. Corporate Authorization

Each of the Purchaser and the Guarantor has the requisite corporate power and authority to enter into and perform its obligations under this Agreement. The execution, delivery and performance by the Purchaser and Guarantor of their obligations under this Agreement and the consummation of the Arrangement and the other transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Purchaser and the Guarantor and no other corporate proceedings on the part of the Purchaser or the Guarantor are necessary to authorize this Agreement or the consummation of the Arrangement and the other transactions contemplated hereby.

3. Execution and Binding Obligation

This Agreement has been duly executed and delivered by each of the Purchaser and the Guarantor and constitutes a legal, valid and binding agreement of each of the Purchaser and Guarantor enforceable against each of them in accordance with its terms subject only to any limitation on enforcement under Laws relating to (i) bankruptcy, winding-up, insolvency, reorganization, arrangement or other Law affecting the enforcement of creditors' rights generally and (ii) the discretion that a court may exercise in the granting of extraordinary remedies such as specific performance and injunction.

4. Governmental Authorization

The execution, delivery and performance by each of the Purchaser and the Guarantor of its obligations under this Agreement and the consummation by the each of the Purchaser and the Guarantor of the Arrangement and the transactions contemplated hereby do not require any Authorization or other action by or in respect of, or filing with, or notification to, any Governmental Entity by the Purchaser other than: (i) in connection with the Required Regulatory Approvals, as applicable and (ii) such filings and other actions required under applicable Securities Laws and the rules and policies of the Cboe as are contemplated by this Agreement.

5. Non-Contravention

The execution, delivery and performance by each of the Purchaser and Guarantor of its obligations under this Agreement and the consummation of the Arrangement and the transactions contemplated hereby do not and will not (or would not with the giving of notice, the lapse of time or the happening of any other event or condition):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contravene, conflict with, or result in any violation or breach of the organizational documents of the
Purchaser or the Guarantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) assuming compliance with the matters referred to in Section (4) above, contravene, conflict with or result
in a violation or breach of Law except as would not, individually or in the aggregate, impede the ability of the Purchaser or the Guarantor
to consummate the Arrangement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No consent, Authorization, permit, order, declaration or filing, or notice to any Governmental Entities
is required by or with respect to the Purchaser in connection with the execution and delivery of this Agreement and consummation of the
transactions contemplated hereby, except for such consents, Authorization, permit, order declaration or filing which in the aggregate,
would not have a Material Adverse Effect.

6. Litigation

There are no claims, actions, suits, arbitrations, inquiries, investigations or proceedings pending, or, to the knowledge of the Purchaser threatened, against or relating to the Purchaser or the Guarantor before any Governmental Entity nor is the Purchaser or the Guarantor subject to any outstanding judgment, order, writ, injunction or decree that, either individually or in the aggregate, is reasonably likely to prevent or materially delay consummation of the Arrangement or the transactions contemplated hereby.

7. Security Ownership

Other than the Rollover Shares to be held by the Purchaser prior to the Effective Time and the 22,048,406 Shares acquired by Republic on August 18, 2023 and still held by Republic, neither Republic nor any of its Subsidiaries owns or exercises control or direction over any securities of the Corporation. As of the date hereof, neither Republic nor any of its Subsidiaries owns or exercises control or direction over any of the INX Tokens.

8. Sufficient Funds

The Guarantor will have, (i) by no later than the Escrow Deposit Date, sufficient funds available to satisfy the Escrow Amount, (ii) at the Effective Time, sufficient funds available to satisfy the amount of Cash Consideration, in excess of the Escrow Amount, payable to Shareholders (other than Republic and the Rollover Shareholders with respect to their Rollover Shares), and (iii) by no later than the CVR Payment Date, sufficient funds available to satisfy the CVR Amount payable to CVR Holders.

9. No Restriction on Payment

Neither the Purchaser nor the Guarantor is party to any agreement or arrangement which purports to restrict the Purchaser's or Guarantor's ability to timely deposit the Escrow Amount or pay the Cash Consideration (less the Escrow Amount) or the CVR Amount, respectively, when due.

**10.**  **<u>No "Bad Actor" Disqualification</u>; <u>Involvement in Certain Legal Proceedings</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Purchaser and Guarantor has exercised reasonable care, in accordance with SEC rules and guidance,
to determine whether any Covered Person (as defined below) is subject to any of the "bad actor" disqualifications described
in Rule 506(d)(1)(i) through (viii) under the Securities Act ("Disqualification Events"). No Covered Person is subject to
a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. For purposes
hereof, "Covered Persons" are those persons specified in Rule 506(d)(1) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the officers and directors of either Purchaser and/or Guarantor are subject to a statutory disqualification,
as that term is defined in Section 3(a) (39) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the current directors, executive officers of either Purchaser and/or Guarantor have, during the
past ten years:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic
violations and other minor offenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) had any bankruptcy petition filed by or against the business or property of the person, or of any partnership,
corporation or business association of which he or she was a general partner or executive officer, either at the time of the bankruptcy
filing or within two years prior to that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any
court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise
limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance
activities, or to be associated with persons engaged in any such activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures
Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended,
or vacated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) been the subject of, or a party to, any federal or state judicial or administrative order, judgment,
 decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among
 private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or
 regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
 injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal
 or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection
with any business entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated,
of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section
1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority
over its members or persons associated with a member.

11. Investment Canada Act

Purchaser is a WTO investor or a trade agreement investor for purposes of the Investment Canada Act.

**SCHEDULE E**

**FORM OF ROLLOVER AGREEMENT**

(*See attached*)

**FORM OF ROLLOVER AGREEMENT**

**(ROLLOVER SHAREHOLDERS)**

[●], 2025

OpenDeal Inc. (dba Republic)

149 5th Avenue, #1314

New York, NY, United States 10010

Attention: **[REDACTED – NAME]**

Dear Sirs/Mesdames:

**Re: Rollover Agreement** (this "**Agreement**")

In connection with an arrangement agreement among Republic Strategic Acquisition Co LLC (the "**Purchaser**"), The INX Digital Company, Inc. (the "**Corporation**") and OpenDeal Inc. (dba Republic) (the "**Guarantor**") dated the date hereof (as it may be amended, modified or supplemented from time to time in accordance with its terms, the "**Arrangement Agreement**"), the Purchaser, *inter alia*, proposes to acquire all of the issued and outstanding common shares (the "**Shares**") of the Corporation not owned by the Guarantor and its Affiliates, from time to time, pursuant to the terms and conditions set forth in the Arrangement Agreement (the "**Transaction**", which includes, for certainty, any and all transactions contemplated by the Arrangement Agreement). It is contemplated that the Transaction will be effected pursuant to a statutory plan of arrangement (the "**Arrangement**") under Division 5 of Part 9 of the *Business Corporations Act* (British Columbia).

Each of the undersigned and the Guarantor agree that the undersigned will be a Rollover Shareholder for the purposes of the Arrangement Agreement such that the Subject Securities (as defined below) that are "Rollover Shares" as indicated in Schedule A (the "**Rollover Shares**") will, conditional upon the closing of the Arrangement, and on the date that is concurrent with the closing of the Arrangement (the "**Closing Date**"), be transferred by the undersigned to the Purchaser in consideration of the Guarantor entering into a Simple Agreement for Future Equity (the "**SAFE**"), the form of which is set forth on Schedule B.

Pursuant to the SAFE, and subject to the terms thereof, upon conversion, the undersigned will be issued a number and class and/or series of preferred shares of the Guarantor of the most superior class issued by the Guarantor ("**Consideration Shares**"). The number and class and/or series of Consideration Shares to be issued to the undersigned pursuant to the SAFE shall be fixed upon the earlier of (i) the closing of the Guarantor's next Equity Financing (as defined in the SAFE) (the "**Series C Round**"), and (ii) the date which is 24 months following execution of the Arrangement Agreement (the "**Maturity Date**"). In the event that the Series C Round closes prior to the Maturity Date, the number of Consideration Shares to be issued to the undersigned pursuant to the SAFE shall be determined based on the lower of (x) the price per share paid by subscribers in the Guarantor's Series B funding round completed on October 15, 2021, being [**REDACTED – COMMERCIALLY SENSITIVE**] (the "**Series B Price**"), and (ii) the price per share paid by subscribers in the Series C Round. In the event that the Series C Round does not close prior to the Maturity Date, the number of Consideration Shares to be issued to the undersigned shall be determined based on the Series B Price less a 10% discount. The Consideration Shares shall be issued by the Guarantor to the undersigned on a date mutually agreeable between the parties, which shall be no later than 3 days after the closing of the Series C Round or the Maturity Date, as applicable (the "**Issuance Date**").

All capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them in the Arrangement Agreement.

The undersigned hereby agrees, in his or her capacity as holder of securities of the Corporation and not in his or her capacity as a director or officer of the Corporation, from the date hereof until the earlier of (x) the Effective Time, and (y) the time at which the Arrangement Agreement is terminated in accordance with its terms (the "**Expiry Time**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to cause to be counted as present for the purposes of establishing quorum, the Shares, Options, RSUs and
any other voting securities of the Corporation owned (beneficially or otherwise) by the undersigned as of the record date for the Meeting
(collectively, the "**Subject Securities**") and to vote or to cause to be voted the Subject Securities: (i) in favour
of the Transaction and the Arrangement, including the Arrangement Resolution, and any other matter that could reasonably be expected to
facilitate the Transaction and any proposal to adjourn or postpone the Meeting if such adjournment or postponement is proposed pursuant
to and in compliance with the provisions of the Arrangement Agreement; and (ii) against any proposed action or agreement (including, for
certainty, any Acquisition Proposal) which could reasonably be expected to impede, interfere with or delay, or in any way adversely affect
the completion of the Transaction or the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no later than ten (10) Business Days prior to the date of the Meeting, deliver or cause to be delivered
to, or deposit or cause to be deposited with, the Corporation or the proximate intermediary, as applicable, in each case, with a copy
to the Guarantor concurrently, a duly executed proxy (or proxies) or voting instruction form (or voting instruction forms), as applicable,
directing the Subject Securities to be voted in favour of the Transaction and the Arrangement, including the Arrangement Resolution and
any other matter that could reasonably be expected to facilitate the Transaction, and (if applicable) name, in such proxy (or proxies)
or voting instruction form (or voting instruction forms), as applicable, those individuals as may be designated by the Corporation in
the Circular for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not take, or permit any Person to take, any action to withdraw, revoke, amend or invalidate any proxy
(or proxies) or voting instruction form (or voting instruction forms), as applicable, delivered to or deposited with the Corporation or
the proximate intermediary, as applicable, pursuant to paragraph (b) above, notwithstanding any statutory or other rights or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except as contemplated by the Arrangement Agreement or upon the settlement of Awards or other equity incentive
securities of the Corporation, not to, directly or indirectly, (i) option, offer, sell, assign, transfer, distribute, exchange, gift,
dispose of, pledge, encumber, grant a security interest in, hypothecate, appoint, encumber or otherwise convey or dispose of ()"**Transfer** ")
any Subject Securities; (ii) enter into any forward sale, repurchase agreement or other monetization transaction with respect to any of
the Subject Securities, or any right or interest therein (legal or equitable), to any Person or group of Persons; (iii) enter into any
contract, option or other arrangement or undertaking with respect to the Transfer of any Subject Securities; or (iv) agree to do any of
the foregoing or take any action that would reasonably be expected to restrict or otherwise adversely affect the undersigned's legal
power, authority and right to comply with and perform its covenants and obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not to, directly or indirectly, through any representative or other third party, (i) solicit, assist, initiate, encourage
or otherwise knowingly facilitate (including by way of furnishing or providing copies of, access to, or disclosure of, any confidential
information, properties, assets, facilities, books or records of the Corporation or any of its Subsidiaries) any inquiry, proposal or
offer from any Person that constitutes, or may reasonably be expected to constitute or lead to, an Acquisition Proposal; (ii) enter into
or otherwise engage or participate in any discussions or negotiations with any Person (other than the Purchaser, the Guarantor and their
Affiliates) regarding any inquiry, proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, an Acquisition
Proposal; (iii) support, endorse or accept, or publicly propose to support, endorse or accept any Acquisition Proposal; (iv) provide any
confidential information relating to the Corporation or its Subsidiaries to any Person or group of Persons in connection with any actual
or potential Acquisition Proposal; (v) solicit proxies or become a participant in a solicitation of proxies in opposition to or in competition
with the Transaction; (vi) requisition or join in any requisition of any meeting of Shareholders or other Securityholders; or (vii) otherwise
co-operate in any way with any effort or attempt by any other Person or group of Persons to do or seek to do any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) not exercise any rights of dissent provided under any applicable Law or otherwise, including any Dissent
Rights, in connection with the Arrangement or any other corporate transaction considered at the Meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to promptly notify the Guarantor of the amount of any debt or equity securities or other interests in
the Corporation of which the beneficial ownership, or the control or direction, is acquired by the undersigned, to the extent permitted
to do so, after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to notify the Guarantor promptly if any of the undersigned's representations and warranties contained
in this Agreement becomes untrue or incorrect in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on the Closing Date, to transfer and assign, free and clear of all Liens, the Rollover Shares beneficially
owned by the undersigned as indicated in Schedule A to the Purchaser, in consideration for the Guarantor entering into the SAFE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to, from time to time, execute and deliver, or cause to be executed and delivered, such additional or
further consents, documents and other instruments and shall take all such other action necessary or as the Guarantor may reasonably request
for the purpose of effectively carrying out the transfer of the Rollover Shares by such undersigned in consideration for the Guarantor
entering into the SAFE as contemplated by this Agreement and the Arrangement Agreement, including delivering, or causing to be delivered
to the Guarantor on the Closing Date, share certificate(s) or copies of DRS Transaction Advice(s) in the name of such undersigned representing
the Rollover Shares, duly endorsed for transfer by the undersigned to the Purchaser or accompanied by a duly executed share transfer form,
and acknowledges that all the Subject Securities that are not the Rollover Shares, including all other voting securities of the Corporation,
directly or indirectly acquired by or issued to the undersigned after the date hereof, , will be subject to the Arrangement.

Notwithstanding any provision of this Agreement to the contrary, the Guarantor hereby acknowledges and agrees that the undersigned is executing this Agreement and is bound hereunder solely in his or her capacity as a holder of securities of the Corporation. Without limiting the provisions of the Arrangement Agreement, nothing contained in this Agreement shall (a) limit or affect in any way any actions or omissions the undersigned may take in his or her capacity as a director or officer of the Corporation, including in exercising rights under the Arrangement Agreement, or (b) be construed to prohibit, limit or restrict in any way the undersigned from exercising of his or her fiduciary duties as a director or officer of the Corporation. The undersigned acknowledges that Article 4 and Article 5 of the Arrangement Agreement imposes certain restrictions on the actions of the Corporation and its officers and directors.

The undersigned hereby represents and warrants on the date hereof and on the Closing Date that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the undersigned is the sole and unconditional beneficial owner of, or has control or direction over, such
Subject Securities as indicated in Schedule A, with good and valid title thereto, free and clear of all liens, and has the sole right
to sell and vote all of such Subject Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Agreement has been duly executed and delivered and is a valid and binding agreement, enforceable
against the undersigned in accordance with its terms, and the performance by the undersigned of its obligations hereunder will not constitute
a violation or breach of or default under, or conflict with, any contract, commitment, agreement, understanding or arrangement of any
kind to which the undersigned will be a party and by which the undersigned will be bound at the time of such performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the undersigned has been afforded the opportunity to obtain independent legal advice and confirms by the
execution of this Agreement that he or she has either done so or waived his or her right to do so in connection with the entering into
of this Agreement, and that any failure on the undersigned's part to seek independent legal advice shall not affect (and the undersigned
shall not assert that it affects) the validity, enforceability or effect of this Agreement or the Arrangement Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except for the Purchaser pursuant to the terms of the Arrangement Agreement, no person has any written
or oral agreement, warrant or option, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming such,
for the purchase, acquisition or transfer from the undersigned of any of its Subject Securities or any interest therein or right thereto;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the only securities of the Corporation beneficially owned, or controlled or directed, directly or indirectly,
by the undersigned on the date hereof are the Subject Securities.

The representations and warranties of the undersigned set forth in this Agreement (other than the representation set forth in Subsection (f) below) shall not survive the completion of the Arrangement and will expire and be terminated on the date that this Agreement is terminated in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In addition, the undersigned hereby acknowledges that the undersigned's entrance into the SAFE and/or
the issuance of the Consideration Shares thereunder might have tax consequences to the undersigned and that neither the Purchaser, the
Guarantor nor the Corporation is able to ensure or represent the nature and extent of such tax consequences. The undersigned acknowledges
that the Purchaser, the Guarantor and the Corporation recommended to me to seek the advice of my own tax advisor prior to the execution
of this Agreement. The undersigned covenants to bear all tax obligations, duties, levies and other payments which may be imposed on the
undersigned by competent tax authorities in connection with this Agreement. The representation set forth in this Subsection (f) shall
survive the completion of the Arrangement.

The Guarantor hereby represents and warrants that the representations and warranties set forth on Schedule C hereto are true and correct on the date hereof (and covenants that such representations and warranties shall be true as of the Issuance Date). The representations and warranties of the Guarantor set forth in this Agreement shall survive the completion of the Arrangement and shall continue in full force and effect in accordance with their terms for a period of two years from the Issuance Date.

The Guarantor hereby agrees, from the date hereof unless the date the Arrangement Agreement is terminated in accordance with its terms, to acquire the Rollover Shares in exchange for issuance of the SAFE, and to issue the Consideration Shares in consideration thereof to the undersigned transferring such Rollover Shares to the Purchaser and to deliver share certificates representing the same issued to such undersigned, on the Issuance Date.

Other than as set out herein, this Agreement shall terminate and be of no further force and effect at upon at the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the written agreement of the undersigned and the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event the Consideration to be paid to the Non-Rollover Shareholders is increased, unless the consideration
per share to be paid to the Rollover Shareholders under the Transaction is increased in same proportion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Expiry Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Effective Time.

This Agreement shall be governed by, construed and enforced in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable therein.

This Agreement may be executed and delivered in multiple counterparts (including by facsimile, email or other electronic means), each of which shall be deemed an original, and such counterparts together shall constitute one and the same agreement.

 

*[Remainder of page intentionally left blank]*

 

Accepted and agreed this [●] day of [●], 2025

By:

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| | | |
|:---|:---|:---|
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| By: |  |  |
|  | Name: | Kendrick Nguyen |
|  | Title: | Co-Chief Executive Officer |

---

**SCHEDULE A**

**SUBJECT SECURITIES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of Registered Shareholder** | **Beneficial Owner** | **Options** | **RSUs** | **Number of Common Shares that are Not Rollover Shares** | **Number of Common Shares that are Rollover Shares** | **Purchase Price** |
| &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] | &nbsp;&nbsp;[●] |

---

**SCHEDULE B**

**FORM OF SAFE**

**[REDACTED – COMMERCIALLY SENSITIVE. INFORMATION REGARDING THE FORM OF SAFE CAN BE FOUND ON PAGE 1 OF THE FORM OF ROLLOVER AGREEMENT. IN ADDITION, THE FORM OF SAFE FIXES THE VALUE OF STOCK ISSUABLE THEREUNDER TO THE "ROLLOVER CONSIDERATION", BEING "THE NUMBER OF SHARES BEING TRANSFERRED BY THE INVESTOR PURSUANT TO THE ROLLOVER AGREEMENT MULTIPLIED BY THE PER SHARE VALUE THAT NON-ROLLOVER SHAREHOLDERS RECEIVE PURSUANT TO THE PLAN OF ARRANGEMENT, ASSUMING FULL PAYMENT OF THE CVR (AS THOSE TERMS ARE DEFINED IN THE ARRANGEMENT AGREEMENT)". ]**

**SCHEDULE C**

**REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR**

All capitalized terms used but not otherwise defined in this Schedule C shall have the respective meanings ascribed to them in the Arrangement Agreement.

1. Organization and Qualification

The Guarantor is a corporation validly existing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its assets and properties and conduct its business as now owned and conducted. The Guarantor is duly qualified, licensed or registered to carry on business and is in good standing in each jurisdiction in which the character of its assets and properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such qualification, licensing or registration necessary.

2. Corporate Authorization

The Guarantor has the requisite corporate power and authority to enter into and perform its obligations under the Arrangement Agreement, this Agreement and the SAFE. The execution and delivery and performance by the Guarantor of the Arrangement Agreement, this Agreement and the SAFE and the consummation of the Arrangement and the other transactions contemplated by the Arrangement Agreement, this Agreement and the SAFE, respectively, have been duly authorized by all necessary corporate action on the part of the Guarantor and no other corporate proceedings on the part of the Guarantor are necessary to authorize this Agreement or the consummation of the Arrangement and the other transactions contemplated by the Arrangement Agreement, this Agreement and the SAFE.

3. Execution and Binding Obligation

Each of the Arrangement Agreement, this Agreement and the SAFE has been duly executed and delivered by the Guarantor, and constitutes a legal, valid and binding agreement of the Guarantor enforceable against it in accordance with its terms subject only to any limitation on enforcement under Laws relating to (i) bankruptcy, winding-up, insolvency, reorganization, arrangement or other Laws affecting the enforcement of creditors' rights generally and (ii) the discretion that a court may exercise in the granting of extraordinary remedies such as specific performance and injunction.

4. Governmental Authorization

The execution, delivery and performance by the Guarantor of the Arrangement Agreement, this Agreement and the SAFE and the consummation by the Guarantor of the Arrangement and the other transactions contemplated by the Arrangement Agreement, this Agreement and the SAFE do not require any Authorization or other action by or in respect of, or filing, recording, registering or publication with, or notification to, any Governmental Entity by the Guarantor or by any of its Subsidiaries other than (i) in connection with the Required Regulatory Approvals, as applicable, and (ii) such filings and other actions required under applicable Securities Laws as are contemplated by the Arrangement Agreement, this Agreement and the SAFE.

5. No Conflict/ Non-Contravention

The execution, delivery and performance by the Guarantor of the Arrangement Agreement, this Agreement and the SAFE and the consummation of the Arrangement and the other transactions contemplated by the Arrangement Agreement, this Agreement and the SAFE do not and will not (or would not with the giving of notice, the lapse of time or the happening of any other event or condition):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contravene, conflict with, or result in any violation or breach of the Constating Documents or shareholders'
agreement of the Guarantor or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to the formalities described in (4) above, contravene, conflict with or result in a violation
or breach of any Law or result in a breach of any judgment, decree, order, or award of any Governmental Entity or arbitrator; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) allow any Person to exercise any rights, require any consent or other action by any Person, or constitute
a default under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation or the loss
of any benefit to which the Guarantor or any of its Subsidiaries are entitled (including by triggering any rights of first refusal or
first offer, change in control provision or other restriction or limitation), or result in the creation or imposition of any Lien upon
any of the Guarantor's assets or the assets of any of its Subsidiaries, under any material contract, lease or any material Authorization
to which the Guarantor or any of its Subsidiaries is a party or by which the Guarantor or any of its Subsidiaries is bound.

6. Capitalization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized share capital of the Guarantor consists of [ **REDACTED – COMMERCIALLY SENSITIVE** ]
common shares and [ **REDACTED – COMMERCIALLY SENSITIVE** ] preferred shares, of which, as of the date hereof, an aggregate of
[ **REDACTED – COMMERCIALLY SENSITIVE** ] common shares and [ **REDACTED – COMMERCIALLY SENSITIVE** ] preferred shares are
issued and outstanding **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All outstanding common shares and preferred shares of the Guarantor have been duly authorized and validly
issued as fully paid and non-assessable and free and clear of any Liens. No outstanding common shares or preferred shares of the Guarantor
and other securities of the Guarantor have been issued in violation of any pre-emptive or similar rights applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The table below sets forth, as of the date hereof, the number of issued and outstanding common shares
and preferred shares, warrants, options to purchase common shares or preferred shares of the Guarantor and other securities of the Guarantor
exercisable into common shares, including the number of common shares and preferred shares of the Guarantor subject to each such security
and the extent to which such securities are vested as of the date of this Agreement.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Security | &nbsp;&nbsp;Number Issued and Outstanding | &nbsp;&nbsp;Number of Common Shares on Conversion | &nbsp;&nbsp;Percentage That Have Fully Vested |
| &nbsp;&nbsp;Common shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] |
| &nbsp;&nbsp;Preferred shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] |
| &nbsp;&nbsp;Options | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] |
| &nbsp;&nbsp;Warrants | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[**REDACTED – COMMERCIALLY SENSITIVE**] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All outstanding common shares and preferred shares of the Guarantor have been issued in material compliance
with Laws and all common shares and preferred shares of the Guarantor that may be issued pursuant to the exercise of other securities
will, when issued in accordance with the terms thereof, be duly authorized, and validly issued, and fully-paid and non-assessable and
have been recorded on the Guarantor's financial statements.

7. Shareholders' and Similar Agreement

The Guarantor is not a party to any shareholder, pooling, voting or other similar arrangement or agreement relating to the ownership or voting of any of the securities of the Guarantor and has not adopted a shareholder rights plan or any other similar plan or agreement.

8. Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The consolidated financial statements of the Guarantor for the year ended December 31, 2024 (including
the notes thereto) (i) were prepared in accordance with US GAAP, (ii) complied as to form in all material respects with applicable accounting
requirements under applicable Laws, and (iii) fairly present, in all material respects, the consolidated financial position of the Guarantor
and its Subsidiaries as of their respective dates and the consolidated financial performance and cash flows of the Guarantor and its Subsidiaries
for the respective periods covered thereby (except as may be expressly indicated in the notes to such financial statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor does not intend to correct or restate, nor is there any basis for any correction or restatement
of, any aspect of any of the financial statements referred to in this Section (8).

9. No Undisclosed Liabilities

There are no liabilities or obligations of the Guarantor or any of its Subsidiaries, whether accrued, contingent, absolute, determined, determinable or otherwise, other than liabilities or obligations: (i) incurred in the ordinary course of business consistent with past practice since December 31, 2024; or (ii) incurred in connection with the Arrangement Agreement, this Agreement or the SAFE.

10. Compliance with Laws

The Guarantor and each of its Subsidiaries is in compliance with Law and neither the Guarantor nor any of its Subsidiaries is, to the knowledge of the Guarantor, under any investigation with respect to, or, has been charged with, or, to the knowledge of the Guarantor, threatened to be charged with, or, has received written notice of, any violation or alleged violation of any Law.

11. Absence of Certain Changes or Events

Since December 31, 2024, other than the transactions contemplated in this Agreement, the business of the Guarantor and its Subsidiaries has been conducted in the ordinary course of business consistent with past practice and there has not been any event, circumstance or occurrence which has had, or which would reasonably be expected to have, a material adverse effect.

12. Authorizations and Licenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor and each of its Subsidiaries own, possess or have obtained all Authorizations that are required
by Law in connection with the operation of the business of the Guarantor or any of its Subsidiaries as presently conducted, or in connection
with the current ownership, operation or use of the assets of the Guarantor or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor and each of its Subsidiaries are in compliance with all such Authorizations. Each Authorization
is valid and in full force and effect in accordance with its terms, and is renewable (if subject to lapse) by its terms or in the ordinary
course of business consistent with past practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No action or proceeding is pending or, to the knowledge of the Guarantor, threatened in respect of, and
none of the Guarantor or any of its Subsidiaries is, to the knowledge of the Guarantor, under investigation or has received written notice
of revocation, non-renewal of, or material amendments to, any such Authorization, or of the intention of any Governmental Entity to revoke,
refuse to renew or materially amend any such Authorization.

13. Board Approval

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The board of directors of the Guarantor has authorized the entering into of the Arrangement Agreement,
this Agreement and the SAFE and the performance by the Guarantor of its obligations under the Arrangement Agreement, this Agreement and
the SAFE, and no action has been taken to amend, or supersede such determinations, resolutions, or authorizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No action has been taken to amend, or supersede such determinations, resolutions or authorizations of
the board of directors of the Guarantor.

14. Personal Property

The Guarantor and its Subsidiaries have valid, good and marketable title to all material personal or movable property of any kind or nature which the Guarantor or any of its Subsidiaries purports to own or as reflected in the Guarantor's financial statements, free and clear of all Liens (other than as disclosed in such financial statements).

15. Intellectual Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Intellectual Property used by the Guarantor and its Subsidiaries in the carrying on of their business
is owned by or licensed to the Guarantor and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor and its Subsidiaries do not infringe, misappropriate or otherwise violate the Intellectual
Property of any Person. No action or proceeding is pending or, to the knowledge of the Guarantor, threatened by any Person alleging that
the conduct of the Guarantor and its Subsidiaries' business infringes upon or otherwise violates any of their Intellectual Property
rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Guarantor has taken commercially reasonable measures to protect the confidentiality of its trade secrets,
proprietary know-how, non-public information and confidential, and none of the Guarantor's respective trade secrets, proprietary
know-how, non-public information and confidential information have been disclosed to or, to the Guarantor's knowledge, discovered
by any third party other than pursuant to the reasonable terms of non-disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not reasonably be expected to have a material adverse effect, to the knowledge of the
Guarantor, none of the software owned by the Guarantor or distributed by the Guarantor incorporates or is comprised of or distributed
with any Publicly Available Software in a manner which (i) requires the distribution of the software source code in connection with the
distribution of such software in object code form; (ii) materially limits the Guarantor's freedom to seek full compensation in connection
with making, using, marketing, licensing or distributing such software; or (iii) allows a Person or requires that a Person have the right
to decompile, disassemble or otherwise reverse engineer such software.

16. Material contract

Each material contract of the Guarantor is in full force and effect and is a legal, valid and binding obligation of the Guarantor or a Subsidiary, as applicable, enforceable against it in accordance with its terms, and is a legal, valid and binding obligation of the other party to such material contract, enforceable against it in accordance with its terms, subject, in each case, to any limitation on enforcement under Laws relating to (i) bankruptcy, winding-up, insolvency, arrangement, reorganization or other Laws of general application affecting the enforcement of creditors' rights and (ii) the discretion that a court may exercise in the granting of extraordinary remedies such as specific performance and injunction.

17. Litigation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than as disclosed in Schedule 17(a), there are no actions, suits, arbitrations or other proceedings
pending or, to the knowledge of the Guarantor, threatened against the Guarantor or any of its Subsidiaries or affecting any of their respective
properties or assets, before any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no material award of any Governmental Entity outstanding against the Guarantor or any of its
Subsidiaries, and neither the Guarantor nor any of its Subsidiaries is subject to any outstanding order, writ, injunction or decree of
any Governmental Entity.

18. Environmental Matters

The Guarantor and each of its Subsidiaries (i) are in compliance in all respects with all Environmental Laws; (ii) have received all Authorizations required of them under the applicable Environmental Laws to conduct their business, and (iii) are in compliance with all terms and conditions of any such Authorization, except where such non-compliance with Environmental Laws, failure to receive required Authorizations or failure to comply with the terms and conditions of such Authorizations would not be reasonably expected to have, individually or in the aggregate, a material adverse effect.

19. Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Policies of insurance issued by insurers of recognized financial responsibility are maintained in respect
of the operations, properties and assets, employees, directors and Officers of the Guarantor and its Subsidiaries in such amounts and
covering such risks as are prudent and customary in the businesses in which they are engaged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No default exists under such policies of insurance as to the payment of premiums or otherwise under the
terms of any such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no claims by the Guarantor or its Subsidiaries under any such policy as to which any insurance
company is denying liability or defending under a reservation of rights clause, and neither the Guarantor nor any of its Subsidiaries
has been denied any insurance coverage which it has sought or for which it has applied.

20. Taxes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns required by Law to be filed with any Governmental Entity by, or on behalf of, the Guarantor
and each of its Subsidiaries have been filed when due in accordance with Law (taking into account any applicable extensions), and all
such material Tax Returns are, or shall be at the time of filing, true and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor and each of its Subsidiaries have paid, or have collected, withheld and remitted to the
appropriate Governmental Entity all Taxes due and payable on a timely basis, other than those Taxes being contested in good faith and
in respect of which adequate reserves have been recorded in its books and records, and where payment is not yet due, have established
in accordance with US GAAP an adequate accrual for all Taxes through the end of the last period for which the Guarantor and each of its
Subsidiaries ordinarily record items on their books and records and such Taxes will be remitted when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no currently effective elections, agreements or waivers extending the statutory period or providing
for an extension of time with respect to the assessment or reassessment of any Taxes, or of the filing of any Tax Return or any payment
of material Taxes, by the Guarantor or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No claim has been made by any Governmental Entity in a jurisdiction where the Guarantor or any of its
Subsidiaries does not file Tax Returns that the Guarantor or such Subsidiary (as applicable) is or may be subject to Tax by that jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All tax credits that were claimed by the Guarantor and each of its Subsidiaries were claimed in accordance
in all respects with Law and the Guarantor and each of its Subsidiaries satisfied, the relevant criteria and conditions entitling them
to such tax credits. All refunds of tax credits received or receivable by the Guarantor and each of its Subsidiaries in any fiscal year
were claimed in accordance in all respects with Law and, at all relevant times, the Guarantor and each of its Subsidiaries that claimed
refunds of tax credits satisfied the relevant criteria and conditions entitling them to claim such a refund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) There are no claims, actions, suits, audits or other proceedings now pending or, to the knowledge of the
Guarantor, threatened against the Guarantor or any of its Subsidiaries in respect of any Tax.

21. Anti-Corruption

Neither the Guarantor nor any of its Subsidiaries, nor, to the knowledge of the Guarantor, any of their respective directors, Officers, agents or employees, has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violated or is violating any provision of the Corruption of Foreign Public Officials Act (Canada), the
United States Foreign Corrupt Practices Act of 1977, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) or
any Law of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) made or authorized any direct or indirect contribution, payment or gift of funds, property or anything
else of value to any official, employee or agent of any Governmental Entity, authority or instrumentality in Canada or the United States,
other jurisdictions in which the Guarantor or any of its subsidiaries has assets other than in accordance with applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) used any corporate funds, or made any direct or indirect unlawful payment from corporate funds, to any
foreign or domestic government official or employee or any unlawful contribution, gift, entertainment or other unlawful expense relating
to political activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) violated or is in violation of any provision of the Criminal Code (Canada) or equivalent state or federal
criminal Law in the United States relating to foreign corrupt practices, including making any contribution to any candidate for public
office, in either case, where either the payment or gift or the purpose of such contribution payment or gift was or is prohibited under
the foregoing.

22. Money-Laundering

The operations of the Guarantor and its Subsidiaries are and have been conducted at all times in compliance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) applicable financial recordkeeping and reporting requirements of the money laundering statutes of all
applicable jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the rules and regulations thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental
Entity,

(collectively, the "**Money Laundering Laws**").

No action, claim, notice of assessment, suit or proceeding by or before any commission, court, Governmental Entity, arbitrator or non-Governmental Entity involving the Guarantor or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Guarantor, threatened.

**SCHEDULE 17(a)**

**LITIGATION**

**[REDACTED – COMMERCIALLY SENSITIVE]**

**SCHEDULE F**

**FORM OF SUPPORT AND VOTING AGREEMENTS**

(*see attached)*

 

 

 

 

 

 

 

 

 

**VOTING AND SUPPORT AGREEMENT**

April 3, 2025

**Republic Strategic Acquisition Co LLC**

Dear Sirs/Madams:

Re: Voting and Support Agreement

In connection with an arrangement agreement among Republic Strategic Acquisition Co LLC (the "**Purchaser**"), The INX Digital Company, Inc. (the "**Corporation**") and OpenDeal Inc. (dba Republic) (the "**Guarantor**") dated the date hereof (as it may be amended, modified or supplemented from time to time in accordance with its terms, the "**Arrangement Agreement**"), the Purchaser, *inter alia*, proposes to acquire all of the issued and outstanding common shares (the "**Shares**") of the Corporation not owned by the Guarantor and its Affiliates, from time to time, pursuant to the terms and conditions set forth in the Arrangement Agreement (the "**Transaction**", which includes, for certainty, any and all transactions contemplated by the Arrangement Agreement). It is contemplated that the Transaction will be effected pursuant to a statutory plan of arrangement (the "**Arrangement**") under Division 5 of Part 9 of the *Business Corporations Act* (British Columbia).

All capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them in the Arrangement Agreement.

The undersigned hereby agrees, in his or her capacity as holder of securities of the Corporation and not in his or her capacity as a director or officer of the Corporation, from the date hereof until the earlier of (x) the Effective Time, and (y) the time at which the Arrangement Agreement is terminated in accordance with its terms (the "**Expiry Time**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to cause to be counted as present for the purposes of establishing quorum, the Shares, Options, RSUs and
any other voting securities of the Corporation, as applicable, owned (beneficially or otherwise) by the undersigned as of the record date
for the Meeting (collectively, the "**Subject Securities**") and to vote or to cause to be voted the applicable Subject
Securities: (i) in favour of the Transaction and the Arrangement, including the Arrangement Resolution, and any other matter that could
reasonably be expected to facilitate the Transaction and any proposal to adjourn or postpone the Meeting if such adjournment or postponement
is proposed pursuant to and in compliance with the provisions of the Arrangement Agreement; and (ii) against any proposed action or agreement
(including, for certainty, any Acquisition Proposal) which could reasonably be expected to impede, interfere with or delay, or in any
way adversely affect the completion of the Transaction or the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no later than ten (10) Business Days prior to the date of the Meeting, deliver or cause to be delivered
to, or deposit or cause to be deposited with, the Corporation or the proximate intermediary, as applicable, in each case, with a copy
to the Guarantor concurrently, a duly executed proxy (or proxies) or voting instruction form (or voting instruction forms), as applicable,
directing the applicable Subject Securities to be voted in favour of
the Transaction and the Arrangement, including the Arrangement Resolution and any other matter that could reasonably be expected to facilitate
the Transaction, and (if applicable) name, in such proxy (or proxies) or voting instruction form (or voting instruction forms), as applicable,
those individuals as may be designated by the Corporation in the Circular for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not take, or permit any Person to take, any action to withdraw, revoke, amend or invalidate any proxy
(or proxies) or voting instruction form (or voting instruction forms), as applicable, delivered to or deposited with the Corporation or
the proximate intermediary, as applicable, pursuant to paragraph (b) above, notwithstanding any statutory or other rights or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except as contemplated by the Arrangement Agreement or upon the settlement of Awards or other equity incentive
securities of the Corporation, not to, directly or indirectly, (i) option, offer, sell, assign, transfer, distribute, exchange, gift,
dispose of, pledge, encumber, grant a security interest in, hypothecate, appoint, encumber or otherwise convey or dispose of ()"**Transfer** ")
any Subject Securities; (ii) enter into any forward sale, repurchase agreement or other monetization transaction with respect to any of
the Subject Securities, or any right or interest therein (legal or equitable), to any Person or group of Persons; (iii) enter into any
contract, option or other arrangement or undertaking with respect to the Transfer of any Subject Securities; or (iv) agree to do any of
the foregoing or take any action that would reasonably be expected to restrict or otherwise adversely affect the undersigned's legal
power, authority and right to comply with and perform its covenants and obligations under this letter agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not exercise any rights of dissent provided under any applicable Law or otherwise, including any Dissent
Rights, in connection with the Arrangement or any other corporate transaction considered at the Meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to notify the Purchaser promptly if any of the undersigned's representations and warranties contained
in this letter agreement becomes untrue or incorrect in any material respect.

Notwithstanding any provision of this letter agreement to the contrary, the Purchaser hereby acknowledges and agrees that the undersigned is executing this letter agreement and is bound hereunder solely in his or her capacity as a holder of securities of the Corporation. Without limiting the provisions of the Arrangement Agreement, nothing contained in this letter agreement shall (a) limit or affect in any way any actions or omissions the undersigned may take in his or her capacity as a director or officer of the Corporation, including in exercising rights under the Arrangement Agreement, or (b) be construed to prohibit, limit or restrict in any way the undersigned from exercising of his or her fiduciary duties as a director or officer of the Corporation. The undersigned acknowledges that Article 4 and Article 5 of the Arrangement Agreement imposes certain restrictions on the actions of the Corporation and its officers and directors.

The undersigned hereby represents and warrants that (a) this letter agreement has been duly executed and delivered and is a valid and binding agreement, enforceable against the undersigned in accordance with its terms, and the performance by the undersigned of its obligations hereunder will not constitute a violation or breach of or default under, or conflict with, any contract, commitment, agreement, understanding or arrangement of any kind to which the undersigned will be a party and by which the undersigned will be bound at the time of such performance, (b) he or she has been afforded the opportunity to obtain independent legal advice and confirms by the execution of this letter agreement that he or she has either done so or waived his or her right to do so in connection with the entering into of this letter agreement, and that any failure on the undersigned's part to seek independent legal advice shall not affect (and the undersigned shall not assert that it affects) the validity, enforceability or effect of this letter agreement or the Arrangement Agreement, and (c) it is the sole registered and/or beneficial owner of the Subject Securities, with good title thereto, free and clear of any and all encumbrances and demands of any nature or kind whatsoever, and the undersigned has the sole right to vote all of the Subject Securities, as applicable and except for the Arrangement Agreement.

This letter agreement shall automatically terminate and be of no further force and effect upon the earliest of (a) the Effective Time, (b) the Expiry Time, (c) the Purchaser publicly announcing by way of news release that it will not be proceeding with the Arrangement, and (d) the date on which the Board makes a Change in Recommendation in accordance with Section 5.4 of the Arrangement Agreement.

This Agreement will be governed by and interpreted and enforced in accordance with the Laws of the Province of Ontario and the federal laws of Canada applicable therein.

Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of the Ontario courts situated in the City of Toronto and waives objection to the venue of any proceeding in such court or that such court provides an inconvenient forum.

Each of the undersigned and the Purchaser hereby consents to the disclosure of the substance of this letter agreement in any press release, any document filed with the Court in connection with the Arrangement or transactions contemplated by the Arrangement Agreement or any filing pursuant to applicable securities laws, including the Circular.

This letter agreement may be executed in any number of counterparts (including counterparts by facsimile or electronic copy) and all such counterparts taken together shall be deemed to constitute one and the same instrument.

This letter agreement may only be amended, supplemented or otherwise modified by written agreement signed by the Parties hereto. Each Party hereto shall pay all costs and expenses incurred by it in connection with the negotiation, preparation and execution of this letter agreement.

If the foregoing is in accordance with the understanding of the Purchaser and is agreed to by the Purchaser, please signify acceptance by the execution of the enclosed copies of this letter agreement where indicated below by an authorized signatory of the Purchaser and return the same to the undersigned, upon which this letter agreement as so accepted shall constitute an agreement among the Purchaser and the undersigned.

The parties expressly acknowledge that they have requested that this letter agreement and all ancillary and related documents thereto be drafted in the English language only. *Les parties aux présentes reconnaissent avoir exigé que la présente lettre entente et tous les documents qui y sont accessoires soient rédigés en anglais seulement.*

 

**[Remainder of page left intentionally blank. Signature page follows.]**

Yours very truly,

---

| | |
|:---|:---|
| by | |
|  | (Signature) |
|  | (Print Name) |
|  | (City and Province (or Country) of Residence) |
|  | (Title) |
|  | Address: |
|  | **Legal and Beneficial Ownership of Securities:** |
|  | Shares: |
|  | Options: |
|  | RSUs: |

---

Accepted and agreed as of the date first written above.

---

| | |
|:---|:---|
| **REPUBLIC STRATEGIC ACQUISITION CO LLC** | **REPUBLIC STRATEGIC ACQUISITION CO LLC** |
| By: |  |
| Name: | Kendrick Nguyen |
| Title: | As representative of OpenDeal Inc., sole member of Republic Strategic Acquisition Co LLC |

---

*Republic Signature Page to Voting Support Agreement*

 

 

**SCHEDULE G**

**ROLLOVER SHAREHOLDERS**

1. Mr. Shy Datika and Triple-V (1999) Ltd. (a company controlled by Shy Datika).

**SCHEDULE H**

**FORM OF ESCROW AGREEMENT**

(See attached)

This **ESCROW AGREEMENT** (this "**Agreement**") is made as of<u> </u>, 2025.

**AMONG:**

**OpenDeal Inc. (dba Republic).**, a company formed under the laws of Delaware (the "**Depositor**")

– and –

**The INX Digital Company, Inc.**, a company formed under the laws of British Columbia (the "**Corporation**")

– and –

**ODYSSEY TRUST COMPANY**, a trust company continued under the laws of Canada, as escrow agent (the "**Escrow Agent**")

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The arrangement agreement made as of April 3, 2025 (the "**Arrangement Agreement**") among the Corporation, Republic
Strategic Acquisition Co LLC and the Depositor contemplates that the sum of US$10,000,000 (the "**Deposit**") shall be deposited
in escrow with the Escrow Agent, to be held and distributed by the Escrow Agent on the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Depositor and the Corporation wish to appoint the Escrow Agent to act as escrow agent in connection with the Arrangement Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The foregoing recitals are representations and statements of fact made by the Depositor and the Corporation
and not by the Escrow Agent.

**NOW, THEREFORE**, in consideration of the foregoing and the mutual covenants and provisions herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement covenant and agree as follows:

1. <u>Defined Terms</u>. All capitalized terms used in this Agreement but not otherwise defined herein shall
bear the meaning ascribed to them in the Arrangement Agreement.

2. <u>Appointment of the Escrow Agent</u>. The Depositor and the Corporation appoint the Escrow Agent to
act, and the Escrow Agent agrees to act, as escrow agent in accordance with the terms and conditions of this Agreement. Subject to receipt
of the monies which are to become the Deposit, the Escrow Agent agrees to hold and deal with the Deposit in accordance with the terms
and conditions of this Agreement.

3. <u>Escrow Deposit</u>. Following the execution and delivery of this Agreement, the Escrow Agent shall
be prepared to receive one or more deposits, by wire transfer of immediately available funds, from the Depositor, which will in aggregate,
represent the Escrow Amount, to be held and distributed by the Escrow Agent on the terms and
conditions set forth herein. The Escrow Agent agrees to provide written acknowledgement of its receipt of the Escrow Amount and to deposit
such amount into a non-interest bearing bank account with a Schedule 1 Canadian bank, in the name of the Escrow Agent for the Depositor
and the Corporation under the naming convention of 'Escrow Account for the INX/Republic Plan of Arrangement' (the "**Escrow Account** "), subject to the terms and conditions of this Agreement. The Deposit shall be held according to the terms and conditions
set forth in this Agreement and shall not be subject to any security interest, lien, attachment, garnishment or any judicial process of
any creditor of any party hereto. The Escrow Agent shall not distribute or release the Deposit except in accordance with the express terms
and conditions of this Agreement.

4. <u>Release of Escrow Amount</u>. The Escrow Agent shall release the Deposit as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Release at Effective Time.** At the Effective Time, as evidenced by an irrevocable written direction
executed by both the Corporation and the Depositor in the form attached hereto as  **<u>Schedule A-1</u>** (the "**Effective Time Direction** "), the Escrow Agent shall immediately transfer the Escrow Amount by wire transfer in immediately available funds to
the Depositary (as defined in the Arrangement Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Release Upon Termination.** In the event that the Arrangement Agreement is duly and validly terminated
pursuant to its terms (other than as a result of a Reverse Termination Fee Event), as evidenced by an irrevocable written direction executed
by both the Corporation and the Depositor, in the form attached hereto as  **<u>Schedule A-2</u>** (the "**Termination Direction** ")
the Escrow Agent shall transfer the Escrow Amount to the Depositor within three (3) Business Days of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Release Upon Reverse Termination Fee Event.** Upon the occurrence of a Reverse Termination Fee Event,
as evidenced by an irrevocable written direction executed by both the Corporation and the Depositor in the form attached hereto as  **<u>Schedule A-3</u>** (the "**Reverse Termination Fee Direction** ", each of the Effective Time Direction, the Termination Direction
and the Reverse Termination Fee Direction shall be referred hereto as a "**Direction**") the Escrow Agent shall transfer
the Escrow Amount to the Corporation in accordance with Section 8.2(3) of the Arrangement Agreement.

5. <u>Inspection Rights and Account Statements</u>. Each of the Depositor and the Corporation shall have
the right to inspect and obtain copies of the records of Escrow Agent pertaining to this Agreement and, if requested, to receive monthly
reports of the status of the Escrow Account. If so requested, on or before the tenth (10<sup>th</sup>) Business Day following the end
of each month during the term hereof, the Escrow Agent shall deliver account statements to the Depositor and to the Corporation with respect
to the Escrow Account for the prior month, which statements shall include the account balance.

6. <u>Termination</u>. This Agreement shall terminate when the entire amount held in the Escrow Account has
been distributed in accordance with <u>Section 4</u>.

7. <u>Conditions to Escrow</u>. The Escrow Agent agrees to hold the Deposit in the Escrow Account and
 to perform in accordance with the terms and provisions of this Agreement. Each of the Depositor and the Corporation agrees that the
 Escrow Agent does not assume any responsibility for the failure of the Depositor to perform in accordance with the Arrangement
 Agreement or this Agreement. The acceptance by the Escrow Agent of its responsibilities hereunder is subject to the following terms and conditions, which the parties hereto agree shall govern
and control with respect to the Escrow Agent's rights, duties, liabilities and immunities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Escrow Agent shall have only those duties as are specifically provided herein, which shall be deemed
purely administerial in nature, and shall under no circumstance be deemed a trustee for any of the other parties to this Agreement. The
Escrow Agent shall not be required to take any action hereunder involving any expense unless the payment of such expense is made or provided
for in a manner reasonably satisfactory to it. None of the provisions contained in this Agreement shall require the Escrow Agent to expend
or to risk its own funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of
its rights or powers unless funded and indemnified as aforesaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Escrow Agent shall be entitled to act and rely upon any Direction furnished to it in accordance with
this Agreement. The Escrow Agent shall be protected in acting and relying upon any Direction furnished to it in accordance with this Agreement,
not only as to its due execution and validity and the effectiveness of its provisions, but also as to the truth and accuracy of any information
therein contained, which the Escrow Agent in good faith believes to be genuine and what it purports to be. If it should be necessary for
the Escrow Agent to act and rely upon any Direction issued or signed by or on behalf of any corporation, fiduciary or individual acting
on behalf of another party hereto, which the Escrow Agent in good faith believes to be genuine, it shall not be necessary for the Escrow
Agent to inquire into the authority of such corporation, fiduciary or individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted
by it in good faith or for anything which it may do or refrain from doing in connection herewith, except for its own gross negligence,
intentional fraud or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Escrow Agent may consult with, and obtain advice from, legal counsel in the event of any question
as to any of the provisions hereof or the duties hereunder, and it shall incur no liability and shall be fully protected in acting in
good faith in accordance with the opinion and instructions of such counsel. The reasonable and documented costs of such counsel's
services shall be paid to the Escrow Agent in accordance with <u>Section 12</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) notwithstanding any other provision of this Agreement, the Escrow Agent shall not be responsible for,
bound by, or chargeable with knowledge of, the terms and conditions of any other agreement, instrument or document between the other parties
hereto, including, without limitation, the Arrangement Agreement. This Agreement sets forth all matters pertinent to the escrow contemplated
hereunder, and no additional obligations of the Escrow Agent shall be inferred from the terms of this Agreement or any other agreement,
instrument or document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions,
claims or demands from the Depositor that, in its opinion, conflict with any of the provisions of this Agreement, it shall be entitled
to refrain from taking any action and its sole obligation shall be to keep safely all property held in escrow until it shall be directed
otherwise in writing by Direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any corporation or association into which the Escrow Agent may be amalgamated or to which it may sell
or transfer its escrow business and assets as a whole or substantially as a whole, or any corporation or association
resulting from any such amalgamation, arrangement, sale, merger or transfer to which it is a party, shall be and become the successor
escrow agent hereunder and vested with all of the title to the whole property or trust estate and all of the trusts, powers, immunities,
privileges, protections and all other matters as was its predecessor, without the execution or filing of any instrument or any further
act, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Escrow Agent may, in its sole discretion, deliver the Deposit into court by way of interpleader (i)
if a court of competent jurisdiction instructs the Escrow Agent to do so or (ii)) if the Escrow Agent is unable
or unwilling to continue acting and no successor escrow agent has been appointed and accepted such appointment in accordance with <u>Section 8</u>. Upon the Escrow Agent making such delivery, the Escrow Agent shall be released from all its duties and obligations under this Agreement.

8. <u>Resignation and Removal of Escrow Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent reserves the right to resign at any time by giving thirty (30) days' written notice
of resignation to the Depositor and the Corporation, specifying the effective date thereof. On the effective date of such resignation,
the Escrow Agent shall deliver this Agreement together with the Deposit and any and all related instruments or documents to any successor
escrow agent agreeable to the Depositor and the Corporation. If a successor escrow agent has not been appointed and has not accepted such
appointment before the expiration of thirty (30) days following the date of the notice of such resignation, the Escrow Agent may, but
shall not be obligated to, apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent. Any such resulting
appointment shall be binding upon all of the parties to this Agreement. Notwithstanding anything to the contrary in the foregoing, the
Escrow Agent or any successor escrow agent shall continue to act as the Escrow Agent until a successor is appointed and qualified to act
as the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon delivery of the Deposit to a successor
 escrow agent in accordance with this <u>Section 8</u>, the Escrow Agent shall thereafter
 be discharged from any further obligations hereunder. All power, authority, duties and obligations
 of the Escrow Agent shall apply to any successor escrow agent.

9. <u>Indemnification of Escrow Agent</u>. Each of the Depositor or the Corporation, as applicable, shall,
severally and not jointly, indemnify and hold the Escrow Agent, its partners, employees and agents, and their respective heirs, executors,
administrators, successors and assigns, harmless, from and against any liability, loss, damage or expense (including, without limitation,
reasonable and documented legal fees, disbursements and charges) that Escrow Agent may incur in connection with this Agreement and its
performance hereunder or in connection herewith as a direct result of an act or omission of Depositor or the Corporation, as applicable,
except to the extent such liability, loss, damage or expense arises from the Escrow Agent's gross negligence, intentional fraud or willful
misconduct. The indemnification provided for under this <u>Section 9</u> shall survive the termination of this Agreement and the resignation
or removal of the Escrow Agent. Notwithstanding any other provision of this Agreement, except for in the event of gross negligence, fraud
or willful misconduct the Escrow Agent's liability shall be limited in the aggregate to the amount of fees paid by the parties to
the Escrow Agent in the twelve (12) months immediately preceding the first receipt by the Escrow Agent of notice of the claim.

10. <u>Taxes</u>. The Escrow Agent shall deduct and withhold from any amount distributed or released from the Deposit such amounts as
it is required to deduct and withhold with respect to the making of such distribution or release under the *Income Tax Act* (Canada)
and the rules and regulations promulgated thereunder, or any applicable provisions of federal, state, provincial, municipal, local or
foreign (including national, provincial or territorial). To the extent that amounts are so deducted or withheld and remitted to the applicable
taxing authority, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which
such deduction and withholding was made.

11. <u>Business Days</u>. If any date on which the Escrow Agent is required to make an investment or a delivery
under the provisions of this Agreement is not a day on which the Escrow Agent is open for business, then the Escrow Agent shall make such
investment or delivery on the next succeeding Business Day.

12. <u>Escrow Costs</u>. The Depositor shall pay all of the fees and expenses (including reasonable and documented
legal fees, disbursements and charges) of the Escrow Agent for the services to be rendered by Escrow Agent under this Agreement. The Escrow
Agent agrees to serve as Escrow Agent in accordance with the fee schedule attached as Schedule B hereto. The Depositor agrees to satisfy
any outstanding fees and expenses set forth on Schedule B hereto before (i) any final release of Deposit and/or (ii) any transfer of the
Deposit.

13. <u>Force Majeure</u>. No party shall be liable or responsible to the other parties, nor be deemed to have
defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, when and
to the extent such failure or delay is caused by or results from acts beyond the affected party's reasonable control, including,
without limitation: (i) acts of God; (ii) flood, earthquake, tsunami, fire
or explosion, epidemics and pandemics; (iii) war, invasion, riot or other civil unrest; (iv) government order or law; (v) actions, embargoes
or blockades in effect on or after the date of this Agreement; (vi) action by any governmental authority; (vii) national or regional emergency;
and (viii) strikes, labour stoppages or slowdowns or other industrial disturbances (each a "**Force Majeure Event** ").
The party suffering a Force Majeure Event shall give notice to the other parties, stating the period of time the occurrence is expected
to continue and shall use diligent efforts to end the failure or delay and ensure that the effects of such Force Majeure Event are minimized.

14. <u>Notices</u>. All notices, requests, consents, claims, demands, waivers and other communications hereunder
(each, a "**Notice**") shall be in writing and shall be deemed to have been given (i) when delivered by hand (with written
confirmation of receipt); (ii) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested);
(iii) on the date sent by e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient,
and on the next Business Day if sent after normal business hours of the recipient, or (iv) on the third (3<sup>rd</sup>) day after the
date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such Notice must be sent to the respective parties
at the addresses indicated below (or at such other address for a party as shall be specified in a Notice given in accordance with this
Section).

---

| | | |
|:---|:---|:---|
| If to the Depositor: | OpenDeal Inc. (dba Republic) | OpenDeal Inc. (dba Republic) |
|  | 149 5th Avenue, #1314 | 149 5th Avenue, #1314 |
|  | New York, NY, United States | New York, NY, United States |
|  | 10010 | 10010 |
|  | Email: | [**REDACTED - EMAIL**] |
|  | Attention: | [**REDACTED - NAME**] |

---

---

| | | |
|:---|:---|:---|
| with a copy (such copy shall not constitute notice) to: | McCarthy Tétrault LLP<br> 4000, 421-7<sup>th</sup> Avenue S.W.<br> Calgary, Alberta <br> T2P 4K9 | McCarthy Tétrault LLP<br> 4000, 421-7<sup>th</sup> Avenue S.W.<br> Calgary, Alberta <br> T2P 4K9 |
|  | Attention: | Bradley Squibb |
|  | Email: | bsquibb@mccarthy.ca |
| If to the Escrow Agent: | 1230 – 300 5th Avenue SW<br> Calgary, AB T2P 3C4 | 1230 – 300 5th Avenue SW<br> Calgary, AB T2P 3C4 |
|  | Email: | corptrust@odysseytrust.com |
|  | Attention: | Corporate Trust |
| If to the Corporation: | The INX Digital Company, Inc. | The INX Digital Company, Inc. |
|  | Attention: | [**REDACTED - NAME**] |
|  | Email: | [**REDACTED - EMAIL**] |
|  | with a copy (which will not constitute notice) to: | with a copy (which will not constitute notice) to: |
|  | Fasken Martineau DuMoulin LLP<br> 2400-333 Bay Street<br> Toronto, Ontario <br> M5H 2T6 | Fasken Martineau DuMoulin LLP<br> 2400-333 Bay Street<br> Toronto, Ontario <br> M5H 2T6 |

---

---

| | |
|:---|:---|
| Attention: | Bradley Freelan and Daniel Fuke |
| Email:bfreelan@fasken.com and | Email:bfreelan@fasken.com and |
| dfuke@fasken.com | dfuke@fasken.com |
| with a copy (which will not | with a copy (which will not |
| constitute notice) to: | constitute notice) to: |
| Gornitzky & Co. | Gornitzky & Co. |
| Vitania Tel Aviv Tower, | Vitania Tel Aviv Tower, |
| 20 HaHarash St., TLV Israel | 20 HaHarash St., TLV Israel |
| Telephone No.: +972-3-710 9107 | Telephone No.: +972-3-710 9107 |
| E-Mail: Yhorn@gornitzky.com | E-Mail: Yhorn@gornitzky.com |
| Attention: Adv. Yuval Horn | Attention: Adv. Yuval Horn |

---

15. <u>Entire Agreement</u>. This Agreement and related exhibits and schedules constitute the sole and
 entire agreement of the parties to this Agreement with respect to the subject matter contained
 herein and supersede all prior and contemporaneous understandings and agreements, both written
 and oral, with respect to such subject matter.

16. <u>Successor and Assigns</u>. This Agreement shall be binding upon and shall enure to the benefit of the
 parties hereto and their respective successors and permitted assigns. No party may assign
 any of its rights or obligations hereunder without the prior written consent of all other
 parties heretowhich consent shall not be unreasonably withheld or delayed; . No assignment
 shall relieve the assigning party of any of its obligations hereunder.

17. <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the parties hereto
 and their respective successors and permitted assigns and nothing herein, express or implied,
 is intended to or shall confer upon any other person any legal or equitable right, benefit
 or remedy of any nature whatsoever under or by reason of this Agreement save for as explicitly
 stated in this Agreement.

18. <u>Headings</u>.
 The headings in this Agreement are for reference only and shall not affect the interpretation
 of this Agreement.

19. <u>Amendment and Modification; Waiver</u>. This Agreement may only be amended, modified or supplemented
 by an agreement in writing signed by each party hereto. No waiver by any party of any of
 the provisions hereof shall be effective unless explicitly set forth in writing and signed
 by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise,
 or delay in exercising, any rights, remedy, power or privilege arising from this Agreement
 shall operate or be construed as a waiver thereof; nor shall any single or partial exercise
 of any right, remedy, power or privilege hereunder preclude any other or further exercise
 thereof or the exercise of any other right, remedy, power or privilege.

20. <u>Severability</u>.
 If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
 such invalidity, illegality or unenforceability shall not affect any other term or provision
 of this Agreement or invalidate or render unenforceable such term or provision in any other
 jurisdiction.

21. <u>Time</u>.
 Time shall be of the essence in this Agreement.

22. <u>Governing Law; Forum Selection</u>. This Agreement shall be governed by and construed in accordance
 with the laws of the Province of Ontario and the federal laws of Canada applicable therein.
 Any legal action or proceeding arising out of or based upon this Agreement or the transactions
 contemplated hereby may be instituted in the courts of the Province of Ontario, and each
 party irrevocably submits to the exclusive jurisdiction of such courts in any such action
 or proceeding. The parties irrevocably and unconditionally waive any objection to the laying
 of venue of any action or any proceeding in such courts and irrevocably waive and agree not
 to plead or claim in any such court that any such action or proceeding brought in any such
 court has been brought in an inconvenient forum.

23. <u>Counterparts</u>.
 This Agreement may be executed in counterparts, each of which shall be deemed an original,
 but all of which together shall be deemed to be one and the same agreement. A signed copy
 of this Agreement delivered by e-mail or other means of electronic transmission shall be
 deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

24. <u>Privacy Matters</u>. The parties acknowledge that federal and/or provincial legislation that addresses
 the protection of individuals' personal information (collectively, "**Privacy Laws**") applies to certain obligations and activities under this Agreement. Notwithstanding
 any other provision of this Agreement, neither party shall take or direct any action that
 would contravene, or cause the other to contravene, applicable Privacy Laws. The parties
 shall, prior to transferring or causing to be transferred personal information to the Escrow
 Agent, obtain and retain required consents of the relevant individuals to the collection,
 use and disclosure of their personal information, or shall have determined that such consents
 either have previously been given upon which the parties can rely or are not required under
 the Privacy Laws. The Escrow Agent shall use commercially-reasonable efforts to ensure that
 its services hereunder comply with Privacy Laws. Specifically, the Escrow Agent agrees: (i)
 to have a designated chief privacy officer; (ii) to maintain policies and procedures to protect
 personal information and to receive and respond to any privacy complaint or inquiry; (iii)
 to use personal information solely for the purposes of providing its services under or ancillary
 to this Agreement and to comply with applicable laws and not to use it for any other purpose
 except with the consent of or direction from the parties, or the individual involved or as
 permitted by Privacy Laws; (iv) not to sell or otherwise improperly disclose personal information
 to any third party; and (v) to employ administrative, physical and technological safeguards
 to reasonably secure and protect personal information against loss, theft, or unauthorized
 access, use or modification.

25. <u>Right Not to Act</u>. The Escrow Agent shall retain the right not to act and shall not be liable
 for refusing to act if, due to a lack of information or for any other reason whatsoever,
 the Escrow Agent, in its sole judgment, acting reasonably, determines that such act might
 cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist
 legislation, regulation or guideline. Further, should the Escrow Agent, in its sole judgment,
 acting reasonably, determine at any time that its acting under this Agreement has resulted
 in its being in non-compliance with any applicable anti-money laundering or anti-terrorist
 legislation, regulation or guideline, then it shall have the right to resign on 10 days prior
 written notice sent to all parties hereby provided that: (i) the Escrow Agent's written
 notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances
 are rectified to the Escrow Agent's satisfaction within such 10 day period, then such
 resignation shall not be effective.

26. <u>Currency</u>.
 All statements of or reference to dollar amounts in this Agreement are to US dollars.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement on the date first written above.

---

| | |
|:---|:---|
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| Per: | |
|  | Name: |
|  | Title: |
| **THE INX DIGITAL COMPANY, INC** | **THE INX DIGITAL COMPANY, INC** |
|  | Name: |
|  | Title: |
| **ODYSSEY TRUST COMPANY** | **ODYSSEY TRUST COMPANY** |
| Per: | |
|  | Name: |
|  | Title: |
| Per: | |
|  | Name: |
|  | Title: |

---

[*Signature Page – Escrow Agreement*]

**SCHEDULE A-1**

**Form of Effective Time Direction – Section 4(a)**

---

| | |
|:---|:---|
| **TO:** | Odyssey Trust Company (the "**Escrow Agent**")<br> Attention: Corporate Trust |

---

---

| | |
|:---|:---|
| **RE:** | Escrow Agreement dated [●], 2025 (the "**Escrow Agreement**") between OpenDeal Inc. (dba Republic)[ , The INX Digital Company Inc. (the "**Corporation**"), and the Escrow Agent |

---

---

| | |
|:---|:---|
| **DATE:** | **[●]**, 202_ |

---

Capitalized terms in this letter that are not otherwise defined herein shall have the same meaning given to them in the Escrow Agreement.

This Effective Time Direction is provided pursuant to Section 4(a) of the Escrow Agreement.

The Corporation hereby irrevocably instructs the Escrow Agent to release all the Deposit by wire transfer to the Depositary, in accordance with the instructions set forth below:

---

| |
|:---|
| Bank Name: |
| Bank Address |
| Bank Number: |
| Bank Transit Number: |
| Account Name: |
| Swift Code: |
| Account Number: |
| Beneficiary Address |

---

A signed copy of this direction delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this direction.

**[SIGNATURE PAGE FOLLOWS.]**

**SIGNED** as of the date first written above:

---

| | |
|:---|:---|
| **THE INX DIGITAL COMPANY INC.** | **THE INX DIGITAL COMPANY INC.** |
| Per: | |
|  | Name: |
|  | Title: |
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| Per: | |
|  | Name: |
|  | Title: |

---

**SCHEDULE A-2**

**Form of Termination Direction – Section 4(b)**

---

| | |
|:---|:---|
| **TO:** | Odyssey Trust Company (the "**Escrow Agent**")<br> Attention: Corporate Trust |

---

---

| | |
|:---|:---|
| **RE:** | Escrow Agreement dated , 2025 (the "**Escrow Agreement**") between OpenDeal Inc. (dba Republic) (the "**Depositor**"), The INX Digital Company, Inc. (the "**Corporation**"),. and the Escrow Agent |
| **DATE:** | [**●]**, 202_ |

---

Capitalized terms in this letter that are not otherwise defined herein shall have the same meaning given to them in the Escrow Agreement.

This Termination Direction is provided pursuant to subsection 4(b) of the Escrow Agreement.

The Depositor and the Corporation hereby irrevocably direct the Escrow Agent to return the Deposit to the Depositor in accordance with the instructions set forth below:

---

| |
|:---|
| Bank Name: |
| Bank Address |
| Bank Number: |
| Bank Transit Number: |
| Account Name: |
| Swift Code: |
| Account Number: |
| Beneficiary Address |

---

A signed copy of this direction delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this direction.

**[SIGNATURE PAGE FOLLOWS.]**

**SIGNED** as of the date first written above:

---

| | |
|:---|:---|
| **THE INX DIGITAL COMPANY INC.** | **THE INX DIGITAL COMPANY INC.** |
| Per: | |
|  | Name: |
|  | Title: |
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| Per: | |
|  | Name: |
|  | Title: |

---

**SCHEDULE A-3**

**Form of Reverse Termination Fee Direction – Section 4(c)**

---

| | |
|:---|:---|
| **TO:** | Odyssey Trust Company (the "**Escrow Agent**")<br> Attention: Corporate Trust |

---

---

| | |
|:---|:---|
| **RE:** | Escrow Agreement dated [●], 2025 (the "**Escrow Agreement**") between OpenDeal Inc. (dba Republic) , The INX Digital Company Inc. (the "**Corporation**"), and the Escrow Agent |
| **DATE:** | [●], 202_ |

---

Capitalized terms in this letter that are not otherwise defined herein shall have the same meaning given to them in the Escrow Agreement.

This Reverse Termination Fee Direction is provided pursuant to Section 4(c) of the Escrow Agreement.

The Corporation hereby irrevocably instructs the Escrow Agent to release all the Deposit by wire transfer to the Corporation, in accordance with the instructions set forth below:

---

| |
|:---|
| Bank Name: |
| Bank Address |
| Bank Number: |
| Bank Transit Number: |
| Account Name: |
| Swift Code: |
| Account Number: |
| Beneficiary Address |

---

A signed copy of this direction delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this direction.

**[SIGNATURE PAGE FOLLOWS.]**

**SIGNED** as of the date first written above:

---

| | |
|:---|:---|
| **THE INX DIGITAL COMPANY INC.** | **THE INX DIGITAL COMPANY INC.** |
| Per: | |
|  | Name: |
|  | Title: |
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| Per: | |
|  | Name: |
|  | Title: |

---

**SCHEDULE B**

**Escrow Agent Fee Schedule**

Please see attached.

**SCHEDULE I**

**FORM OF CVR AGREEMENT**

(See attached)

**CONTINGENT VALUE RIGHTS AGREEMENT, dated as of [●], by and among**

**OPENDEAL INC. (DBA REPUBLIC), as Guarantor, DAVID WEILD, NICHOLAS THADANEY, THOMAS LEWIS, HILARY KRAMER AND**

**DEMETRA KALOGREOU**

**as the CVR Representatives, and**

**ODYSSEY TRUST COMPANY, as CVR Agent**

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I DEFINITIONS; RULES OF INTERPRETATION | ARTICLE I DEFINITIONS; RULES OF INTERPRETATION | 2 |
| &nbsp;&nbsp;&nbsp;Section 1.01 | Definitions | 2 |
| &nbsp;&nbsp;&nbsp;Section 1.02 | Certain Rules of Interpretation | 5 |
| ARTICLE II CONTINGENT VALUE RIGHTS | ARTICLE II CONTINGENT VALUE RIGHTS | 5 |
| &nbsp;&nbsp;&nbsp;Section 2.01 | Contingent Value Rights | 5 |
| &nbsp;&nbsp;&nbsp;Section 2.02 | No Certificates | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.03 | Registration by the CVR Agent | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.04 | Rights of Holders | 7 |
| &nbsp;&nbsp;&nbsp;Section 2.05 | Non-transferability | 7 |
| &nbsp;&nbsp;&nbsp;Section 2.06 | Ability to Abandon Contingent Value Rights | 8 |
| ARTICLE III CVR AGENT | ARTICLE III CVR AGENT | 8 |
| &nbsp;&nbsp;&nbsp;Section 3.01 | Certain Rights and Protections of CVR Agent. | 8 |
| &nbsp;&nbsp;&nbsp;Section 3.02 | Compliance with Privacy Code | 10 |
| &nbsp;&nbsp;&nbsp;Section 3.03 | Resignation and Removal; Appointment of Successor | 11 |
| ARTICLE IV PAYMENT PROCEDURES | ARTICLE IV PAYMENT PROCEDURES | 13 |
| &nbsp;&nbsp;&nbsp;Section 4.01 | Payment of CVR Amount | 13 |
| ARTICLE V AMENDMENTS | ARTICLE V AMENDMENTS | 13 |
| &nbsp;&nbsp;&nbsp;Section 5.01 | Amendments | 13 |
| ARTICLE VI TAXES | ARTICLE VI TAXES | 15 |
| &nbsp;&nbsp;&nbsp;Section 6.01 | Withholding | 15 |
| &nbsp;&nbsp;&nbsp;Section 6.02 | Payment as Consideration. | 15 |
| ARTICLE VII MISCELLANEOUS | ARTICLE VII MISCELLANEOUS | 15 |
| &nbsp;&nbsp;&nbsp;Section 7.01 | Termination | 15 |
| &nbsp;&nbsp;&nbsp;Section 7.02 | Notices. | 15 |
| &nbsp;&nbsp;&nbsp;Section 7.03 | Notice to Holders | 17 |
| &nbsp;&nbsp;&nbsp;Section 7.04 | Assignment | 17 |
| &nbsp;&nbsp;&nbsp;Section 7.05 | Benefits of Agreement | 17 |
| &nbsp;&nbsp;&nbsp;Section 7.06 | Severability. | 18 |
| &nbsp;&nbsp;&nbsp;Section 7.07 | Counterparts | 18 |
| &nbsp;&nbsp;&nbsp;Section 7.08 | Governing Law; Jurisdiction. | 18 |
| &nbsp;&nbsp;&nbsp;Section 7.09 | Enforcement. | 18 |
| &nbsp;&nbsp;&nbsp;Section 7.10 | Anti-Money Laundering | 19 |
| &nbsp;&nbsp;&nbsp;Section 7.11 | Force majeure | 19 |
| &nbsp;&nbsp;&nbsp;Section 7.12 | Entire Agreement. | 19 |

---

**CONTINGENT VALUE RIGHTS AGREEMENT**

This contingent value rights agreement (this "**Agreement**") is dated effective as of [●], and is entered by and among OpenDeal Inc. (dba Republic), a corporation incorporated under the laws of Delaware (the "**Guarantor**"), David Weild, Nicholas Thadaney, Thomas Lewis, Hilary Kramer and Demetra Kalogerou, solely in their capacity as the representatives of the Holders (as defined below) (the "**CVR Representatives**") and Odyssey Trust Company, a trust company existing under the laws of Canada and authorized to carry on business in all provinces of Canada (the "**CVR Agent**").

**WITNESSETH:**

**WHEREAS**, Republic Strategic Acquisition Co LLC (the "**Purchaser**"), a limited liability corporation formed under the laws of **[Delaware]**, the Guarantor and The INX Digital Company, Inc. (the "**Company**"), a corporation incorporated under the laws of British Columbia, have entered into an arrangement agreement (as it may be amended or supplemented from time to time pursuant to the terms thereof, the "**Arrangement Agreement**") dated as of April 3, 2025, pursuant to which the Company, the Purchaser and the Guarantor agreed to consummate an arrangement (the "**Arrangement**") under Section 288 of the *Business Corporations Act* (British Columbia), whereby, among other things, the Purchaser will acquire all of the issued and outstanding common shares (the "**Common Shares**") in the capital of the Company, other than those Common Shares already owned by the Purchaser, the Guarantor or their affiliates, for $[●]<sup>1</sup> per Common Share in cash (the "**Cash Consideration**") plus one contingent value right (a "**Contingent Value Right**" or "**Right**" and collectively with the Cash Consideration, the "**Consideration**") per Common Share, all upon the terms and subject to the conditions set forth in the Arrangement Agreement and herein, as applicable;

**WHEREAS** the Guarantor has all requisite corporate power, capacity and authority under the laws of its jurisdiction of incorporation to carry on its business, and has all the necessary corporate power and authority to execute and deliver this Agreement and all documents ancillary thereto, to perform its obligations hereunder, and to carry out the transactions contemplated thereby;

**WHEREAS** the Arrangement Agreement has been duly authorized, executed, and delivered by the Guarantor, and both the Arrangement Agreement and the Contingent Value Rights (when issued in accordance with the Arrangement Agreement), will be valid and binding obligations of the Guarantor, enforceable in accordance with their terms;

**WHEREAS** the Guarantor and the Company desire that the CVR Agent act as contingent value rights agent for the Holders (as defined below) of Contingent Value Rights in connection with the Arrangement and, in its capacity as such, receive for distribution to the Holders of Contingent Value Rights the aggregate CVR Amount deposited in accordance with the terms set forth in the Arrangement Agreement;

<sup>1</sup> Consideration per share which will be added prior to the Effective Time= US$16,000,000 divided by the total number of Common Shares at the Effective Time excluding the Rollover Shares held by Rollover Shareholders (as such terms are defined in the Arrangement Agreement) and Common Shares already owned by the Purchaser, the Guarantor and their affiliates.

**AND WHEREAS**, the Company has appointed the CVR Representatives to act as the representatives of the Holders and to monitor compliance, and enforce, on behalf of the Holders, the obligations of the Guarantor pursuant to this Agreement and Sections 2.15, 2.16 and 2.17 of the Arrangement Agreement; and

**WHEREAS**, the foregoing recitals are made by the Guarantor and the CVR Representatives and not by the CVR Agent.

**NOW, THEREFORE**, in consideration of the premises and mutual agreements herein, the Guarantor, the CVR Representatives and the CVR Agent hereby agree as follows:

**ARTICLE I**

**<u>DEFINITIONS; RULES OF INTERPRETATION</u>**

**Section 1.01 Definitions.**

In this Agreement, capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Arrangement Agreement. In addition, the following terms shall have the meanings set forth below:

"**affiliate**" has the meaning specified in National Instrument 45-106 – *Prospectus Exemptions* as in effect on the date of the Arrangement Agreement;

"**Agreement**" has the meaning set forth in the preamble;

"**Arrangement**" has the meaning set forth in the preamble;

"**Arrangement Agreement**" has the meaning set forth in the preamble;

"**Business Day**" means any day of the year, other than a Saturday, Sunday or any day on which major banks are closed for business in Toronto, Ontario.

"**Cash Consideration**" has the meaning set forth in the preamble;

"**Closing**" means the closing of the Arrangement in accordance with the terms of the Arrangement Agreement;

"**Common Shares**" has the meaning set forth in the preamble;

"**Company**" has the meaning set forth in the preamble;

"**Consideration**" has the meaning set forth in the preamble;

"**Contingent Value Right**" has the meaning set forth in the preamble;

"**CVR Agent**" has the meaning set forth in the preamble;

"**CVR Amount**" has the meaning set forth in Section 2.01;

"**CVR Payment Date**" has the meaning set forth in the Arrangement Agreement;

"**CVR Payment Notice**" has the meaning set forth in Section 4.03(a);

"**CVR Register**" has the meaning set forth in Section 2.03(a);

"**CVR Representatives**" has the meaning set forth in the preamble;

"**Dissolution Event**" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the creditors, or (iii) any other liquidation, dissolution or winding up, whether voluntary or involuntary;

"**Effective Time**" has the meaning set forth in the Arrangement Agreement;

"**Escrow Deposit Date**" has the meaning set forth in the Arrangement Agreement;

"**Governmental Entity**" means any: (i) multinational, federal, provincial, state, territorial, municipal, local or other governmental or public department, regulatory authority, central bank, court, commission, commissioner, board, bureau, ministry, agency or instrumentality, domestic or foreign, and includes the Securities Authorities, (ii) any subdivision or authority of any of the foregoing, (iii) any quasi-governmental, self-regulatory organization or private body exercising any regulatory, expropriation or taxing authority under or for the account of its members or any of the above, including CBOE Canada Inc., the Canadian Investment Regulatory Organization (CIRO) and any other regulatory body, or (iv) any arbitrator exercising jurisdiction over the affairs of the applicable person, asset, obligation or other matter

"**Guarantor**" has the meaning set forth in the preamble;

"**Holder**" means a Person entitled to receive payment pursuant to a Contingent Value Right, in accordance with the terms of the Arrangement Agreement and this Agreement, and whose name is registered as a holder of a Contingent Value Right in the CVR Register;

"**Indemnified Parties**" has the meaning set forth in Section 3.01(d);

"**Permitted Transfer**" means (i) transfers by will or intestacy, by inter vivos or testamentary trust where the Contingent Value Right is to be passed to the beneficiaries upon the death of the trustee, (ii) pursuant to a court order, by operation of law, (iii) from a trust governed by a registered retirement savings plan, a registered retirement income fund, a deferred profit sharing plan, a registered education savings plan, a registered disability savings plan, a tax- free savings account or a first home savings account (each as defined in the Tax Act) to the annuitant or subscriber of the plan or holder of the account, as the case may be, or (iv) in connection with the dissolution, liquidation or termination of a corporation, limited liability company, partnership or other Person which is the holder thereof, or in accordance with Section 2.06.

"**Person**" includes any individual, partnership, association, body corporate, organization, trust, estate, trustee, executor, administrator, legal representative, government (including Governmental Entity), syndicate or other entity, whether or not having legal status;

"**Purchaser**" has the meaning set forth in the preamble;

"**Representatives**" means, with respect to any Person, any officer, director, employee, representative (including any financial, legal or other advisor) or agent of such Person or of any of its Subsidiaries;

"**Securities Authorities**" means the Ontario Securities Commission and any other applicable securities commissions or securities regulatory authority of a province or territory of Canada, and CBOE Canada Inc.;

"**Shares**" has the meaning set forth in the Arrangement Agreement;

"**Subsidiary**" has the meaning specified in National Instrument 45-106 – *Prospectus Exemptions* as in effect on the date of the Arrangement Agreement, and for the purposes of this Agreement, "control" shall also include the possession, directly or indirectly, of the power to direct or cause the direction of the policies, management and affairs of any Person, whether through ownership of voting securities, by contract or otherwise, including with respect to any general partner of another Person with the power to direct the policies, management and affairs of such Person;

"**Tax**" or, collectively, "**Taxes**" includes any taxes, duties, fees, premiums, assessments, imposts, levies and other charges of any kind whatsoever imposed by any Governmental Entity, including all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Entity in respect thereof, and including those levied on, or measured by, or referred to as, income, gross receipts, profits, capital, transfer, land transfer, sales, provincial sales, goods and services, harmonized sales, use, value-added, excise, stamp, withholding, business, franchising, property, development, occupancy, employer health, payroll, employment, health, social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, countervail and anti-dumping, COVID-19 Governmental Assistance, all license, franchise and registration fees and all employment insurance, health insurance and Canada, Québec and other government pension plan premiums or contributions and any amount of the type previously described as a result of being a "transferee" (within the meaning of section 160 of the Tax Act or any other laws) or successor of another taxpayer or entity or a member of a related, non-arm's length, affiliated or combined group; and

"**Tax Act**" means the *Income Tax Act* (Canada).

**Section 1.02 Certain Rules of Interpretation.**

In this Agreement, unless otherwise specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Headings, etc.** The provision of a **Table of Contents**, the division of this Agreement into Articles
 and Sections and the insertion of headings are for convenient reference only and do not affect
 the construction or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Currency.** Unless otherwise specified in the Agreement, All references to dollars or to $ are references
 to Canadian dollars. In the event that any amounts are required to be converted from a foreign
 currency to Canadian dollars or vice versa, such amounts shall be converted using the most
 recent closing exchange rate of The Bank of Canada available before the relevant calculation
 date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Gender and Number.** Any reference to gender includes all genders. Words importing the singular
 number only include the plural and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Certain Phrases and References, etc.** The words "including", "includes"
 and "include" mean "including (or includes or include) without limitation,"
 and "the aggregate of", "the total of", "the sum of",
 or a phrase of similar meaning means "the aggregate (or total or sum), without duplication,
 of." Unless stated otherwise, "Article", "Section", and "Schedule"
 followed by a number or letter mean and refer to the specified Article or Section of or Schedule
 to this Agreement. The term "Agreement" and any reference in this Agreement to
 this Agreement or any other agreement or document includes, and is a reference to, this Agreement
 or such other agreement or document as it may have been, or may from time to time be, amended,
 restated, replaced, supplemented or novated and includes all schedules to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Computation of Time.** If any action may be taken within, or any right or obligation is to expire at
 the end of, a period of days under this Agreement, then the first day of the period is not
 counted, but the day of its expiry is counted. Whenever payments are to be made or an action
 is to be taken on a day which is not a Business Day, such payment will be made or such action
 will be taken on or not later than the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Time References.** References to time are to local time, Toronto, Ontario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Schedules.** The schedules attached to this Agreement form an integral part of this Agreement for
 all purposes of it.

**ARTICLE II** 

**<u>CONTINGENT VALUE RIGHTS</u>**

**Section 2.01 Contingent Value Rights.**

The Contingent Value Rights are direct obligations of the Guarantor and each Holder of a Contingent Value Right has the right to receive a cash payment of $[●]<sup>2</sup> per Contingent Value Right (the "**CVR Amount**") on the date that is 18 months following the Escrow Deposit Date or earlier upon the occurrence of, or the filing of a request to a competent authority in connection with, a Dissolution Event of the Guarantor, pursuant to the terms of the Arrangement Agreement and this Agreement. The Guarantor represents and warrants that the Contingent Value Rights, and the obligations of the Guarantor under this Agreement, have been duly authorized by all necessary corporate actions and approvals by the Guarantor.

<sup>2</sup> CVR Amount per share which will be added prior to the Effective Time= US$16,000,000 divided by the total number of Common Shares at the Effective Time excluding the Rollover Shares held by Rollover Shareholders (as such terms are defined in the Arrangement Agreement) and Common Shares already owned by the Purchaser, the Guarantor and their affiliates.

**Section 2.02 No Certificates.**

The Contingent Value Rights shall not be evidenced by a certificate or other instrument. The Contingent Value Rights shall only be evidenced by a position on the CVR Register. The Contingent Value Rights will not be listed on any exchange.

**Section 2.03 Registration by the CVR Agent.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Guarantor and the CVR Representatives appoint the CVR Agent as registrar and transfer agent
 of the Contingent Value Rights, to act in accordance with the terms of this Agreement, and
 the CVR Agent hereby accepts such appointment and agrees to perform its duties hereunder
 in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Promptly
 following Closing, the Guarantor and the CVR Representatives Majority shall inform the CVR
 Agent in writing of the Effective Time and the Escrow Deposit Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 CVR Agent shall keep a register (the "**CVR Register**") for the purpose of
 registering Contingent Value Rights and Permitted Transfers thereof at its office in Toronto,
 Ontario, Canada. Upon receipt of a written order from the Purchaser and the CVR Representatives
 Majority, the CVR Agent shall include in the CVR Register positions for each Holder indicated
 in the written order of Contingent Value Rights, as of immediately prior to the Effective
 Time. With respect to any payments to be made under Article IV below, the CVR Agent shall
 accomplish such payments directly to each Holder of Contingent Value Rights. At any time
 following the date hereof, the CVR Agent shall promptly provide a copy of the CVR Register
 to the Guarantor and the CVR Representatives upon reasonable request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A
 Holder may make a written request to the CVR Agent to change such Holder's address
 of record in the CVR Register. The written request must be duly executed by the Holder. Subject
 to any reasonable procedures imposed by the CVR Agent, the CVR Agent shall promptly record
 the change of address in the CVR Register upon receipt of such written notice from a Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject
 to the restrictions on transferability set forth in Section 2.05, every request made to transfer
 a Contingent Value Right must be in writing by the Holder and set forth in reasonable detail
 the circumstances relating to such transfer. Upon receipt of such written notice, the CVR
 Agent shall, subject to its reasonable determination that the transfer complies with the
 other terms and conditions herein, record the transfer of the Contingent Value Rights in
 the CVR Register. The CVR Agent may require payment of a sum sufficient to cover any stamp
 or other Tax or governmental charge that is imposed in connection with any such registration
 of transfer as a condition precedent thereto. The CVR Agent is under no other obligation
 to act on transfers with respect to the CVR Register other than when such transfer instrument
 has been provided to the CVR Agent as set out in this section. No transfer of a Contingent
 Value Right shall be valid until recorded in the CVR Register, and any transfer not duly
 recorded in the CVR Register will be void ab initio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 CVR Agent will have no obligation to ensure or verify compliance with any applicable laws
 or regulatory requirements on the issue, transfer, or redemption of any Contingent Value
 Rights.

**Section 2.04 Rights of Holders.**

Nothing contained in this Agreement shall be construed as conferring upon any Holder, by virtue of being a Holder of a Contingent Value Right, (i) any equity or ownership interest in the Company, the Purchaser, the Guarantor, or any of their affiliates, or in any other Person, (ii) any voting, dividend or liquidation rights, or (iii) any information or reporting rights from the Purchaser, the Guarantor or the Company other than as may be specifically provided for herein and in the Arrangement Agreement. No interest shall accrue on any amounts payable on the Contingent Value Rights to any Holder and other than as may be specifically provided for herein and in the Arrangement Agreement. The Contingent Value Rights represent only the right to receive the payment set forth under Article IV, and the rights of a Holder are limited to those expressed in this Agreement and the Arrangement Agreement. Notwithstanding anything herein or in the Arrangement Agreement to the contrary, none of the Purchaser, the Guarantor, the Company or any of their respective affiliates or Representatives shall have any liability, responsibility or obligation of any kind to any Holder in their capacity as such on any basis (including in contract, tort, under federal or state securities law or otherwise) with respect to, arising out of, or relating to, this Agreement or the Contingent Value Rights, except to the extent this Agreement expressly requires the payment of any CVR Amount to the Holders and except to the extent otherwise expressly provided for in this Agreement or the Arrangement Agreement.

**Section 2.05 Non-transferability.**

The Contingent Value Rights may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part, directly or indirectly, other than through a Permitted Transfer or pursuant to Section 2.06. Any attempted sale, assignment, transfer, pledge, encumbrance or disposition of Contingent Value Rights, in whole or in part, in violation of this Section 2.05 shall be void ab initio and of no effect. Any CVR transferred pursuant to a Permitted Transfer shall remain subject to the terms and conditions of this Agreement, including this Section 2.05 and Section 2.06.

**Section 2.06 Ability to Abandon Contingent Value Rights.**

Notwithstanding anything to the contrary contained herein or in the Arrangement Agreement, a Holder may at any time, including prior, at or after the Effective Time, at such Holder's option, abandon all or part of such Holder's remaining rights in a Contingent Value Right by written notice to the CVR Agent in the form attached hereto as Schedule "A". The CVR Register shall be updated by the CVR Agent to reflect the abandonment of the rights of a Holder upon receipt by the CVR Agent of such a notice of abandonment. Any Contingent Value Right so abandoned shall be automatically deemed extinguished and no longer outstanding for purposes of the provisions of this Agreement, including Article IV.

**Section 2.07 CVR Escrow Amount**

On or prior to the Effective Time, the Company will deposit in escrow with the CVR Agent an amount of US$1,000,000 (one million US dollars) (the "**CVR Escrow Amount**"). The CVR Escrow Amount shall be used by the CVR Representatives Majority, at the sole discretion of the CVR Representatives Majority, solely in order to cover any costs and expenses (including attorney fees and other fees associated with legal proceedings) incurred in connection with any failure by the Guarantor to satisfy its obligations under Sections 4.01(a) and 4.01(b) of this Agreement. The CVR Agent shall transfer the CVR Escrow Amount to the Company or to the Guarantor, as instructed in writing by the Guarantor, promptly, and in any event no later than five (5) Business Days, following the satisfaction of the Guarantor's obligations under Sections 4.01(a) and 4.01(b) of this Agreement.

**ARTICLE III** 

**<u>CVR AGENT</u>**

**Section 3.01 Certain Rights and Protections of CVR Agent.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 CVR Agent undertakes to perform such duties and only such duties as are specifically set
 forth in this Agreement, and no implied covenants or obligations shall be read into this
 Agreement against the CVR Agent. The CVR Agent will report to the Guarantor and the CVR Representatives.
 In addition, the CVR Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall
 not be (i) liable for or by any reason of any statements of fact or recitals in this Agreement,
 or (ii) required to verify the same, but all such statements or recitals are and will be
 deemed to be made by the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall
 not incur any liability or responsibility whatsoever or be in any way responsible for the
 consequences of any breach on the part of the Guarantor of any of the covenants herein contained,
 or of any acts of the agents of the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) may
 rely on and shall be protected in acting, or not acting, in reliance upon any certificate,
 instrument, opinion, notice, instruction (including wire instruction), letter or other document
 or security delivered to it and reasonably believed by it to be genuine and to have been
 signed by the proper party or parties, which comply with the terms of this Agreement and which do not require the exercise of any discretion
or independent judgment on the part of the CVR Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) may
 rely on, and shall be protected in acting, or not acting, upon, written instruction given
 by any officer of, or any party authorized by, the Guarantor with respect to any matter relating
 to the CVR Agent's actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) may
 rely on, and shall be protected in acting, or not acting, upon, written instruction given
 by the CVR Representatives Majority with respect to any matter relating to the CVR Agent's
 actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 CVR Agent may employ or retain such counsel, accountants, appraisers or other experts or
 advisers as it may reasonably require for the purpose of discharging its duties hereunder
 and may pay reasonable remuneration for all services so performed by any of them, without
 taxation of costs of any counsel, and shall not be responsible for any misconduct or negligence
 on the part of any such experts or advisers who have been appointed with due care by the
 CVR Agent. The Guarantor shall pay or reimburse the CVR Agent for any reasonable fees, expenses
 and disbursements of such counsel or advisors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the
 CVR Agent may act and rely and shall be protected in acting and relying in good faith on
 the opinion or advice of or information obtained from any counsel, accountant, appraiser,
 engineer or other expert or adviser, whether retained or employed by the Guarantor or by
 the CVR Agent, in relation to any matter arising in the administration of the agency hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Guarantor agrees to pay the CVR Agent the fees set forth in the agreed fee schedule. The
 CVR Agent may employ such counsel, accountants, other experts, agents, agencies and advisors
 as it may reasonably require for the purpose of discharging its duties under this Agreement,
 and the CVR Agent may act, or not act, and shall be protected in acting, or not acting, in
 good faith on the opinion or advice or on information obtained from any such parties and
 shall not be responsible for any misconduct on the part of any of them. The reasonable and
 documented costs of such services shall be added to and be part of the CVR Agent's
 fee hereunder. For clarity, no fees or expenses of the CVR Agent shall be deducted from the
 CVR Escrow Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 any other provision of this Agreement, and whether such losses or damages are foreseeable
 or unforeseeable, no party shall be liable to any other party hereto under any circumstances
 whatsoever for any (i) breach by any other party of securities laws or other rule of any
 Securities Authority; (ii) lost profits, or (iii) special, indirect, incidental, consequential,
 exemplary, aggravated or punitive losses or damages.

With respect to the CVR Representatives, this section applies in addition to the limitations of liability and any and all indemnification provided by the Company in favor of the CVR Representatives as set forth in sections 2.15, 2.16 and 2.17 of the Arrangement Agreement (of which the CVR Representatives is a third-party beneficiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without
 limiting any protection or indemnity of the CVR Agent under any other provision of this Agreement,
 or otherwise at law, the Guarantor agrees to indemnify and hold harmless the CVR Agent and
 its affiliates, officers, directors, employees, agents, successors, and assigns (the "**Indemnified Parties**") from and against any and all loss, liability, damage, penalty, claim,
 action, suit, cost or expense and disbursement (including legal and other fees and expenses),
 or of whatever kind or nature, which at any time may be imposed on, incurred by or asserted
 against the Indemnified Parties arising out of or in connection with entering into this Agreement
 or the performance of its duties hereunder, other than such losses, liabilities or expenses
 incurred attributable to the CVR Agent's fraud, gross negligence, bad faith or willful
 misconduct. This provision shall survive the resignation or removal of the CVR Agent, or
 the termination of this Agreement. The CVR Agent shall not be under any obligation to prosecute
 or defend any action or suit in respect of the relationship which, in the opinion of its
 counsel, may involve it in expense or liability, unless the Purchaser shall, so often as
 required, furnish the Purchaser with satisfactory indemnity and funding against such expense
 or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding
 the foregoing or any other provision of this Agreement, any liability of the CVR Agent shall
 be limited, in the aggregate, to the amount of its annual retainer fees paid by the Guarantor
 to the CVR Agent under this Agreement, except where and to the extent that such liability
 arises directly from the CVR Agent's bad faith, fraud, or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No
 provision of this Agreement shall require the CVR Agent to expend or risk its own funds or
 otherwise incur any financial liability in the performance of any of its duties hereunder
 or in the exercise of its rights.

**Section 3.02 Compliance with Privacy Code**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 parties acknowledge that the CVR Agent may, in the course of providing services hereunder,
 collect or receive financial and other personal information about such parties and/or their
 representatives, as individuals, or about other individuals related to the subject matter
 hereof, and use such information for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 provide the services required under this Agreement and other services that may be requested
 from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 help the CVR Agent manage its servicing relationships with such individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 meet the CVR Agent's legal and regulatory requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 Social Insurance Numbers are collected by the CVR Agent, to perform Tax reporting and to
 assist in verification of an individual's identity for security purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 parties acknowledge and agree that the CVR Agent may receive, collect, use and disclose personal
 information provided to it or acquired by it in the course of its acting as agent hereunder
 for the purposes described above and, generally, in the manner and on the terms described
 in its Privacy Code, which the CVR Agent shall make available on its website or upon request,
 including revisions thereto. Some of this personal information may be transferred to servicers
 outside of Canada for data processing and/or storage.

Further, the parties agree that they shall not provide or cause to be provided to the CVR Agent any personal information relating to an individual who is not a party to this Agreement unless the party providing such information has assured itself that such individual understands and has consented to the aforementioned uses and disclosures, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under applicable privacy legislation.

**Section 3.03 Resignation and Removal; Appointment of Successor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 CVR Agent may resign at any time and be discharged from its duties under this Agreement by
 giving written notice thereof to the Guarantor and the CVR Representatives and specifying
 a date when such resignation will take effect, which notice will be sent at least thirty
 (30) days prior to the date so specified but in no event will such resignation become effective
 until a successor CVR Agent has been appointed. The Guarantor and the CVR Representatives
 Majority may jointly remove the CVR Agent at any time by specifying a date when such removal
 will take effect but no such removal will become effective until a successor CVR Agent has
 been appointed. Notice of such removal will be given by the Guarantor and the CVR Representatives
 Majority to the CVR Agent, which notice will be sent at least thirty (30) days prior to the
 date so specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the CVR Agent shall resign, is removed pursuant to Section 3.03(a) or shall otherwise become
 incapable of acting, the Guarantor and the CVR Representatives Majority shall jointly appoint
 a successor to the CVR Agent. If the Guarantor and the CVR Representatives Majority shall
 fail to make such appointment within a period of thirty (30) days after such removal or after
 the Guarantor and the CVR Representatives Majority have been notified in writing of such
 resignation or incapacity by the resigning or incapacitated CVR Agent, then the incumbent
 CVR Agent may apply to any court of competent jurisdiction for the appointment of a successor
 to the CVR Agent. Any successor CVR Agent shall be a nationally recognized bank or trust
 company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After
 appointment, the successor CVR Agent shall be vested with the same powers, rights, duties
 and responsibilities as if it had been originally named as CVR Agent without further act
 or deed, but the former CVR Agent shall deliver and transfer to the successor CVR Agent any
 property at the time held by it hereunder (including, but not limited to, the CVR Register
 and all computer files, data and other information related to the foregoing), and execute
 and deliver any further assurance, conveyance, act or deed necessary for such purpose. In
 addition, the former CVR Agent shall provide reasonable assistance to the successor CVR Agent
 with regard to transferring the CVR Register and related files and data to such successor
 CVR Agent and shall not retain any such files or data except to the extent required by law.

**Section 3.04 Documents, Monies, Etc. Held By Rights Agent**

Any monies, securities, documents of title or other instruments that may at any time be held by the CVR Agent shall be placed in the deposit vaults of the CVR Agent or of any Canadian chartered bank listed in Schedule I of the *Bank Act* (Canada) ("**Approved Bank**"), or deposited for safekeeping with any such bank. Any monies held pending the application or withdrawal thereof under any provisions of this Agreement, shall be held in a segregated non-interest bearing bank account of the CVR Agent. All amounts held by the CVR Agent pursuant to this Agreement shall be held by the CVR Agent for the Guarantor and the delivery of the funds to the CVR Agent shall not give rise to a debtor-creditor or other similar relationship. The amounts held by the CVR Agent pursuant to this Agreement are at the sole risk of Guarantor and, without limiting the generality of the foregoing, the CVR Agent shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with an Approved Bank pursuant to this 3.04, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). The parties hereto acknowledge and agree that the CVR Agent will have acted prudently in depositing the funds at any Approved Bank, and that the CVR Agent is not required to make any further inquiries in respect of any such bank. The CVR Agent may hold cash balances constituting part or all of such monies and need not, invest same; the CVR Agent shall not be liable to account for any profit to any parties to this Agreement or to any other person or entity.

**Section 3.05 CVR Agent Not Required To Give Security**

The CVR Agent shall not be required to give any bond or security in respect of the execution of its duties and powers under this Agreement or otherwise in respect of the premises.

**Section 3.06 CVR Agent Not Required To Give Notice Of Default**

The CVR Agent shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred on it hereby unless and until it shall have been required to do so under the terms hereof; nor shall the CVR Agent be required to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be brought to the attention of the CVR Agent and in the absence of any such notice the CVR Agent may for all purposes of this Agreement conclusively assume that no default has been made in the observance or performance of any of the representations, warranties, covenants, agreements or conditions contained herein. Any such notice shall in no way limit any discretion herein given to the CVR Agent to determine whether or not the CVR Agent shall take action with respect to any default.

**Section 3.07 Acceptance of Appointment**

The CVR Agent hereby accepts its appointment as CVR Agent and its duties and obligations in this Agreement declared and provided for and agrees to perform them upon the terms and conditions herein set forth and to hold and exercise the rights, privileges and benefits conferred upon it hereby, subject to all the terms and conditions herein set forth, until discharged therefrom by resignation or other lawful removal.

**ARTICLE IV**

**<u>PAYMENT PROCEDURES</u>**

**Section 4.01 Payment of CVR Amount.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly,
 and in any event no later than five (5) Business Days prior to the CVR Payment Date, the
 Guarantor shall deposit (or cause to be deposited) with the CVR Agent, by wire transfer of
 immediately available funds, a cash amount, for distribution to the Holders in accordance
 with the terms hereof, equal to the CVR Amount multiplied by the number of Contingent Value
 Rights outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Guarantor and the CVR Representatives Majority shall, concurrently with such deposit, instruct
 the CVR Agent to distribute the CVR Amount to the Holders on the CVR Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On
 the CVR Payment Date the CVR Agent shall cause to be mailed to the address of the Holder
 of the Rights last appearing on the CVR Register a cheque in the name of such Holder representing
 the CVR Amount payable to the Holder in accordance with the calculations set out in the written
 payment direction provided to the CVR Agent by the Guarantor and the CVR Representatives.
 Notwithstanding the aforementioned, all payments in excess of $25,000,000 in Canadian dollars
 must be made by wire transfer, rather than by cheques or other traditional paper-based payment
 items. It is agreed that cheques will be drawn on a designated account maintained by the
 CVR Agent..

**ARTICLE V**

**<u>AMENDMENTS</u>**

**Section 5.01 Amendments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Guarantor, at least a simple majority (i.e more than 50%) of the CVR Representatives (the
 "**CVR Representatives Majority**") and the CVR Agent may enter into one or
 more amendments hereto for the purpose of adding, eliminating or changing any provision of
 this Agreement, provided that such addition, elimination or change shall not be in any way
 adverse to the rights of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 anything to the contrary in this Agreement, the Guarantor and the CVR Representatives Majority
 together, without the consent of the Holders, at any time and from time to time, may enter
 into one or more amendments hereto, for any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 evidence the succession of another Person to the Guarantor and the assumption by any such
 successor of the covenants and obligations of the Guarantor; provided that such succession
 and assumption is in accordance with the terms of this Agreement and the Arrangement Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 evidence the succession of another Person as a successor CVR Agent or any successor CVR Representative
 and the assumption by any such successor of the covenants and obligations of such CVR Agent
 or CVR Representative herein; provided that (A) such succession and assumption is in accordance
 with the terms of this Agreement and the Arrangement Agreement and (B) promptly following
 any replacement of any of the CVR Representatives in accordance with the Arrangement Agreement,
 the Purchaser and any successor CVR Representative shall execute an amendment to this Agreement
 providing for the release of the former CVR Representative and the joinder of the successor
 CVR Representative as party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 cure any ambiguity, to correct or supplement any provision herein that may be defective or
 inconsistent with any other provision herein or to make any other provisions with respect
 to matters or questions arising under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as
 may be necessary or appropriate to ensure that the Contingent Value Rights are not subject
 to registration under the Securities Act of 1933, as amended, or the Securities Exchange
 Act of 1934, as amended, and the rules and regulations promulgated thereunder, are not subject
 to the prospectus requirement under applicable Canadian securities laws, or to ensure that
 the Purchaser shall not register as a "reporting issuer" in any province or territory
 in Canada or with any Securities Authorities;

 

*provided* that, in each case of clauses (i) through (iv), the Guarantor and the CVR Representatives Majority shall provide the CVR Agent with written notice of any such amendment, including a copy of such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 the execution of any amendment in accordance with this Section 5.01, this Agreement shall
 be modified in accordance therewith, such amendment shall form a part of this Agreement for
 all purposes.

**ARTICLE VI** 

**<u>TAXES</u>**

**Section 6.01 Withholding.**

Each of the Guarantor, the CVR Agent and each of their respective affiliates, as applicable, shall be entitled to deduct and withhold from amounts otherwise payable pursuant to this Agreement to any Person such amounts as it is required to deduct and withhold with respect to the making of such payment under the Tax Act and the rules and regulations promulgated thereunder, or any applicable provisions of federal, state, provincial, municipal, local or foreign (including national, provincial or territorial). To the extent that amounts are so deducted or withheld and remitted to the applicable taxing authority, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

**Section 6.02 Payment as Consideration.**

The Guarantor and the CVR Representatives agree that the Contingent Value Rights shall constitute, if and when payment is made, consideration for the Shares at the Effective Time.

**ARTICLE VII** 

**<u>MISCELLANEOUS</u>**

**Section 7.01 Termination.**

This Agreement shall be terminated without any further action of any parties hereto and of no force or effect, and the parties hereto shall have no liability hereunder, upon the earliest to occur of (i) the payment of the aggregate CVR Amount required to be paid under the terms of this Agreement and the Arrangement Agreement, and (ii) the delivery of a written notice of termination duly executed by the Guarantor and the CVR Representatives Majority to the CVR Agent (the date of such delivery being the "**Termination Date**"). On the Termination Date the Rights shall be null, void and of no effect.

**Section 7.02 Notices.**

Any notice, or other communication given regarding the matters contemplated by this Agreement must be in writing, sent by personal delivery, courier or email sent to and addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 to the Purchaser or the Guarantor:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpenDeal Inc. (dba Republic) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpenDeal Inc. (dba Republic) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;149 5th Avenue, #1314 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;149 5th Avenue, #1314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, NY, United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York, NY, United States |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: | [**REDACTED - NAME**] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email: | [**REDACTED - EMAIL**] |

---

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shall not constitute notice): | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shall not constitute notice): |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;McCarthy Tétrault LLP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;McCarthy Tétrault LLP |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4000, 421-7th Avenue S.W. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4000, 421-7th Avenue S.W. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calgary, Alberta | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calgary, Alberta |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T2P 4K9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T2P 4K9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: | Bradley Squibb |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email: | bsquibb@mccarthy.ca |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 to the CVR Representatives, to:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Odyssey Trust Company | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Odyssey Trust Company |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1230 – 300 5th Avenue SW | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1230 – 300 5th Avenue SW |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calgary, AB T2P 3C4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calgary, AB T2P 3C4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: | Corporate Trust |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email: | corptrust@odysseytrust.com |

---

with a copy to (which shall not constitute notice):

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gornitzky & Co. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gornitzky & Co. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vitania Tel Aviv Tower, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vitania Tel Aviv Tower, |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20 HaHarash St., TLV Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20 HaHarash St., TLV Israel |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telephone No.: +972-3-710 9107 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telephone No.: +972-3-710 9107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: | Adv. Yuval Horn |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email: | Yhorn@gornitzky.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 to the CVR Agent:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Odyssey Trust Company | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Odyssey Trust Company |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trader's Bank Building | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trader's Bank Building |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702 – 67 Yonge Street | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702 – 67 Yonge Street |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Toronto ON M5E 1J8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Toronto ON M5E 1J8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: | Corporate Trust |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emails: | corptrust@odysseytrust.com |

---

Any notice or other communication is deemed to be given and received (a) if sent by personal delivery or same day courier, on the date of delivery if it is a Business Day and the delivery was made prior to 5:00 p.m. (local time in place of receipt) and otherwise on the next Business Day, (b) if sent by overnight courier, on the next Business Day, or (c) if sent by email, on the date such email was sent if it is a Business Day and such email was sent prior to 5:00 p.m. (local time in the place of receipt) and otherwise on the next Business Day (provided in the case of email that no "bounceback" or notice of non-delivery is received by the sender within thirty (30) minutes of the time of sending). A party may change its address for service from time to time by providing a notice in accordance with the foregoing. Any subsequent notice or other communication must be sent to the party at its changed address. Any element of a party's address that is not specifically changed in a notice will be assumed not to be changed. Sending a copy of a notice or other communication to a party's legal counsel as contemplated above is for information purposes only and does not constitute delivery of the notice or other communication to that party.

**Section 7.03 Notice to Holders.**

Where this Agreement provides for notice to Holders, such notice will be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the Holder's address as it appears in the CVR Register, not later than the latest date, and not earlier than the earliest date, if any, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder will affect the sufficiency of such notice with respect to other Holders.

**Section 7.04 Assignment.**

Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto in whole or in part (whether by operation of law or otherwise) without the prior written consent of the other parties hereto, and any such assignment without such consent shall be null and void. Notwithstanding the foregoing, the Guarantor may assign any or all of its rights, interests and obligations hereunder to (a) in its sole discretion and without the consent of any other party, any controlled affiliate of the Guarantor, but only for so long as it remains a controlled affiliate of the applicable Person, or (b) with the prior written consent of the CVR Representatives Majority, any other Person (any permitted assignee under clause (a) or (b), an "**Assignee**"), in each case provided that the Assignee agrees to assume and be bound by all of the terms of this Agreement. Any Assignee may thereafter assign any or all of its rights, interests and obligations hereunder in the same manner as the Guarantor pursuant to the prior sentence. In connection with any assignment to an Assignee described in clause (a) above in this Section 7.04, the Guarantor (and the other assignor) shall agree to remain liable for the performance of each Assignee (and such other assignor, if applicable) of all obligations of the Guarantor hereunder, with such Assignee substituted for the Guarantor under this Agreement. Each of the Guarantor's successors and Assignees shall assume the due and punctual payment of the Contingent Value Rights and the due and punctual performance and observance of all of the covenants and obligations of this Agreement to be performed or observed by the Guarantor. The CVR Agent may not assign this Agreement without the written consent of all other parties hereto. Any attempted assignment of this Agreement or any such rights in violation of this Section 7.04 shall be void and of no effect ab initio. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.

**Section 7.05 Benefits of Agreement.**

Nothing in this Agreement, express or implied, will give to any Person (other than the CVR Agent, the Guarantor, the Guarantor's successors and Assignees, the Holders and the Holders' successors and assigns pursuant to a Permitted Transfer) any benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the foregoing. The rights of Holders and their successors and assigns pursuant to Permitted Transfers are limited to those expressly provided in this Agreement and the Arrangement Agreement. Except for the rights of the CVR Agent set forth herein, the CVR Representatives Majority will have the sole right, on behalf of all Holders, by virtue of or under any provision of this Agreement, to institute any action or proceeding with respect to this Agreement, and no individual Holder or other group of Holders will be entitled to exercise such rights.

**Section 7.06 Severability.**

If any provision of this Agreement is determined to be illegal, invalid or unenforceable by an arbitrator or any court of competent jurisdiction, that provision will be severed from this Agreement and the remaining provisions shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

**Section 7.07 Counterparts.**

This Agreement may be executed in any number of counterparts (including counterparts by email) and all such counterparts taken together shall be deemed to constitute one and the same instrument. The parties shall be entitled to rely upon delivery of an executed PDF or similar executed electronic copy of this Agreement, and such PDF or similar executed electronic copy shall be legally effective to create a valid and binding agreement between the parties.

**Section 7.08 Governing Law; Jurisdiction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement will be governed by and interpreted and enforced in accordance with the laws of
 the Province of Ontario and the federal laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Party irrevocably attorns and submits to the non-exclusive jurisdiction of the Ontario courts
 situated in the City of Toronto (and appellate courts therefrom) and waives objection to
 the venue of any Proceeding in such court or that such court provides an inconvenient forum.

**Section 7.09 Enforcement.**

The rights and remedies of the parties shall be cumulative with and not exclusive of any other remedy conferred hereby. The parties agree that irreparable damage would occur and that the parties would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties, subject to Section 7.05, shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in the Ontario courts situated in the City of Toronto (and appellate courts therefrom), without proof of actual damages or otherwise (and each party hereby waives any requirement for the securing or posting of any bond in connection with such remedy), this being in addition to any other remedy to which they are entitled at law or in equity (including monetary damages).

**Section 7.10 Anti-Money Laundering**

Each party to this Agreement hereby represents to the CVR Agent that any account to be opened by, or interest to held by the CVR Agent in connection with this Agreement, for or to the credit of such party, either (i) is not intended to be used by or on behalf of any third party; or (ii) is intended to be used by or on behalf of a third party, in which case such party hereto agrees to complete and execute forthwith a declaration in the CVR Agent's prescribed form as to the particulars of such third party.

The CVR Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the CVR Agent, in its sole judgment, determines that such act might cause it to be in non-compliance with any applicable anti-money laundering, anti-terrorist legislation or economic sanctions legislation, regulation or guideline. Further, should the CVR Agent, in its sole judgment, determine at any time that its acting under this Agreement has resulted in its being in non-compliance with any applicable anti-money laundering, anti-terrorist legislation or economic sanctions legislation, regulation or guideline, then it shall have the right to resign on ten (10) days written notice to the Guarantor and the CVR Representatives, provided (i) that the CVR Agent's written notice shall describe the circumstances of such non- compliance; and (ii) that if such circumstances are rectified to the CVR Agent's satisfaction within such ten (10) day period, then such resignation shall not be effective.

**Section 7.11 Force majeure**

No party shall be liable to the other, or held in breach of this Agreement, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, pandemics, epidemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Agreement shall be extended for a period equivalent to the time lost because of any delay pursuant to this Section.

**Section 7.12 Entire Agreement.**

This Agreement, together with the Arrangement Agreement (including the schedules, annexes and exhibits thereto and the documents and the instruments referred to therein) constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof and thereof.

**Section 7.13 Performance of Covenants.**

Guarantor and the CVR Representatives shall perform and carry out all of the acts or things to be done by each of them, as applicable, as provided in this Agreement and shall promptly advise the CVR Agent in writing of any default in the performance of their covenants hereunder.

**Section 7.14 Satisfaction and Discharge.**

Upon the Termination Date, this Agreement shall cease to be of any force and effect and the CVR Agent, on demand of and at the cost and expense of the Guarantor and upon delivery to the CVR Agent of a certificate of the Guarantor stating that all conditions precedent to the satisfaction and discharge of this Agreement have been complied with, shall execute instruments as requested by the Guarantor and the CVR Representatives acknowledging satisfaction of and discharging this Agreement. Notwithstanding the foregoing, the indemnities provided to the CVR Agent by the Guarantor hereunder shall remain in full force and effect and survive the termination of this Agreement.

[*Remainder of page intentionally left blank.*]

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed, as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** | **OPENDEAL INC. (DBA REPUBLIC)** |
| By: |  |  |
|  | Name: | Kendrick Nguyen |
|  | Title: | Co-Chief Executive Officer |

---

---

| |
|:---|
| **DAVID WEILD** |
| **NICHOLAS THADANEY** |
| **THOMAS LEWIS** |
| **HILARY KRAMER** |
| **DEMETRA KALOGREOU** |

---

---

| | |
|:---|:---|
| **ODYSSEY TRUST COMPANY** | **ODYSSEY TRUST COMPANY** |
| By: |  |
|  | Name: |
|  | Title: |
| By: |  |
|  | Name: |
|  | Title |

---

**SCHEDULE "A"**

**NOTICE OF ABANDONMENT**

---

| | |
|:---|:---|
| **TO:** | Odyssey Trust Company (the "**CVR Agent**") |
| **FROM:** | [●] (the "**Holder**") |
| **RE:** | Abandonment of Contingent Value Rights |

---

The undersigned Holder hereby provides notice to the CVR Agent as contemplated in Section 2.06 of the CVR Agreement (as defined below) that it abandons its rights in [●] Contingent Value Rights and authorizes the CVR Agent to update the CVR Register to reflect such abandonment, and recognizes that the abandoned Contingent Value Rights shall be automatically deemed extinguished and no longer outstanding for purposes of the provisions of the CVR Agreement.

Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Contingent Value Rights Agreement dated [●] among OpenDeal Inc. (dba Republic), David Weild, Nicholas Thadaney, Thomas Lewis, Hilary Kramer and Demetra Kalogerou.

**(Remainder of page intentionally left blank)**

DATED THIS______day of_________________, 20__.

By: 

Name: 

Title:

## Exhibit 11.1

**Exhibit 11.1**

**Subsidiaries of<br> INX LIMITED**

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Jurisdiction of<br> Incorporation** |
| INX Digital, Inc. | Delaware |
| INX Services, Inc. | Delaware |
| INX Solutions Limited | Gibraltar |
| Midgard Technologies Limited | Israel |
| INX Securities, LLC | Pennsylvania |
| INX Digital Assets UK Limited | UK |
| INX Transfer Agent LLC | Delaware |
| INX Global Limited | Cyprus |

---

## Exhibit 12.1

**Exhibit 12.1**

**RULE 15d-14(a) CERTIFICATION**

I, Vladislav Uchenik, certify that:

1. I have reviewed this annual report on Form 20-F of INX Limited;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all material respects the financial condition, results of operations
and cash flows of the issuer as of, and for, the periods presented in this report;

4. The other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the issuer
and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) [Omitted];

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the issuer's disclosure
controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the issuer's
internal control over financial reporting that occurred during the period covered by the annual report that has materially affected,
or is reasonably likely to materially affect, the issuer's internal control over financial reporting; and

5. The issuer's other certifying officer(s) and I have
disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit
committee of the issuer's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability
to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the issuer's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 21, 2026 | /s/ Vladislav Uchenik |
|  | Vladislav Uchenik |
|  | CEO |

---

## Exhibit 12.2

**Exhibit 12.2**

**RULE 15d-14(a) CERTIFICATION**

I, Iris EvenTov, certify that:

1. I have reviewed this annual report on Form 20-F of INX Limited;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the issuer as of, and for, the periods presented in this report;

4. The other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the issuer and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) [Omitted];

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the issuer's disclosure
controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the issuer's
internal control over financial reporting that occurred during the period covered by the annual report that has materially affected,
or is reasonably likely to materially affect, the issuer's internal control over financial reporting; and

5. The issuer's other certifying officer(s) and I have disclosed,
based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee
of the issuer's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability
to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the issuer's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 21, 2026 | /s/ Iris EvenTov |
|  | Iris EvenTov |
|  | Chief Financial Officer |

---

## Exhibit 13.1

**Exhibit 13.1**

**SECTION 1350 CERTIFICATIONS**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350 of chapter 63 of title 18 of the United States Code), the undersigned officer of INX Limited (the "Company"), hereby certifies, to such officer's knowledge, that:

This annual report on Form 20-F for the fiscal year ended December 31, 2025 (the "Report") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: May 21, 2026 | /s/ Vladislav Uchenik |
|  | Vladislav Uchenik |
|  | President and CEO |

---

## Exhibit 13.2

**Exhibit 13.2**

**SECTION 1350 CERTIFICATIONS**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350 of chapter 63 of title 18 of the United States Code), the undersigned officer of INX Limited (the "Company"), hereby certifies, to such officer's knowledge, that:

This annual report on Form 20-F for the fiscal year ended December 31, 2025 (the "Report") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: May 21, 2026 | /s/ Iris EvenTov |
|  | Iris EvenTov |
|  | Chief Financial Officer |

---

## Exhibit 15.1

**Exhibit 15.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-266445) pertaining to the INX Limited Share and Token Ownership and Award Plans of INX Limited of our report dated May 21, 2026, with respect to the consolidated financial statements of INX Limited, included in this Annual Report (Form 20-F) for the year ended December 31, 2025.

/s/ KOST FORER GABBAY & KASIERER

A Member Firm of EY Global

Tel-Aviv, Israel

May 21, 2026