# EDGAR Filing Document

**Accession Number:** 0001779303
**File Stem:** 0001213900-25-116076
**Filing Date:** 2025-11
**Character Count:** 1191640
**Document Hash:** 510be89fdf68d2f4de28130f7cfd7a7c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-116076.hdr.sgml**: 20251128

**ACCESSION NUMBER**: 0001213900-25-116076

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 46

**FILED AS OF DATE**: 20251128

**DATE AS OF CHANGE**: 20251128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Direct Communication Solutions, Inc.
- **CENTRAL INDEX KEY:** 0001779303
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 205517542
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-291846
- **FILM NUMBER:** 251535828

**BUSINESS ADDRESS:**
- **STREET 1:** 11021 VIA FRONTERA
- **STREET 2:** UNIT C
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92127
- **BUSINESS PHONE:** 858-798-7100

**MAIL ADDRESS:**
- **STREET 1:** 11021 VIA FRONTERA
- **STREET 2:** UNIT C
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92127

**As filed with the U.S. Securities and Exchange Commission on November 28, 2025**

**Registration No. 333-** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**

**UNDER**

**THE SECURITIES ACT OF 1933**

**Direct Communication Solutions, Inc.**

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

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| | | |
|:---|:---|:---|
| **Delaware** | **5045** | **20-5517542** |
| *(State or other jurisdiction of<br> incorporation or organization)* | *(Primary Standard Industrial<br> Classification Code Number)* | *(I.R.S. Employer<br> Identification No.)* |

---

**11021 Via Frontera, Suite C**

**San Diego, CA 92127**

**(858) 798-7100**

*(Address, including zip code, and telephone number, including area code, of registrant's principal executive office)*

**William Espley**

**Chief Executive Officer**

**Direct Communication Solutions, Inc.**

**11021 Via Frontera, Suite C**

**San Diego, CA 92127**

**(858) 798-7100**

*(Name, address, including zip code, and telephone number, including area code, of agent for service)*

Copies to:

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| | |
|:---|:---|
| **Mark C. Lee**<br> **Olivia Y. Wang** <br> **Rimon, P.C.** <br> **400 Madison Ave, Suite 11D**<br> **New York, NY 10017**<br> **(718) 504-9773** | **Zhaocong "Richard" Xu, Esq.**<br> **McLaughlin & Stern, LLP**<br> **260 Madison Ave, 18th Floor**<br> **New York, NY10016**<br> **Telephone: (212) 448 1100** |

---

Approximate date of commencement of proposed sale to the public: **As soon as practicable after the effective date of this registration statement.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to Section 8(a), may determine.**

**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the United States Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

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| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED , 2025** |

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**[ ] Shares of Class A Common Stock**

**Direct Communication Solutions, Inc.**

This is a firm commitment initial public offering ("IPO") of shares of Class A common stock of Direct Communication Solutions, Inc. We expect the initial public offering price will be between $[ ] and $[ ] and the assumed offering price is the midpoint of this range.

Although this is our IPO for securities in the United States, our common stock is presently quoted on the OTCQX under the symbol "DCSX," on the Canadian Securities Exchange ("CSE") under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." We have applied to have our common stock listed on the NYSE American under the symbol "DCSX". No assurance can be given that our application will be approved. If our application is not approved, we will not consummate this offering. On [ ], 2025, the last reported sale price for our stock on the OTCQX was $[ ] per share. The trading price of our common stock has been, and may continue to be, subject to wide price fluctuations in response to various factors, many of which are beyond our control, including those described in "Risk Factors."

Upon shareholder approval at our annual general meeting to be held on December 8, 2025, (i) our authorized capital stock will consist of 500,000,000 shares of Class A common stock, par value $0.00001 per share, and 500,000,000 shares of Class B common stock, par value $0.00001 per share, (ii) all 2,487,222 shares of our currently issued and outstanding common stock will be designated as Class A common stock, and (iii) Mike Yao Zhou, our director, will receive a one-time right to elect to convert 571 shares of Class A common stock owned directly by him and 528,571 Class A common stock owned indirectly by him into Class B shares on a one-for-one basis, which Mr. Zhou plans to exercise upon the completion of this offering. Upon consummation of this offering, Mr. Zhou will beneficially own all shares of our issued and outstanding Class B common stock. Holders of Class A common stock and Class B common stock will have the same rights except for voting, conversion, and transfer rights. Each share of Class A common stock will be entitled to one vote. Upon (i) our company successfully raising aggregate financing of not less than $10,000,000 and (ii) the shares of our Class A common stock being approved for listing on the NYSE American LLC or NASDAQ and commencing trading on such exchange (collectively, the "Sunrise Conditions"), each share of Class B common stock will be entitled to 20 votes. Prior to the satisfaction of the Sunrise Conditions, each share of Class B common stock will be entitled to one vote. Assuming the satisfaction of the Sunrise Conditions, the Class B common stock held by Mr. Zhou will constitute approximately [ ]% of our total issued and outstanding shares and [ ] % of the aggregate voting power of our total issued and outstanding shares immediately after this offering, assuming that the underwriters do not exercise their option to purchase additional shares. See "Description of Capital Stock" for more details and "Risk Factors—Risks Related to this Offering and Ownership of Our Common Stock—Our dual-class voting structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A common stock may view as beneficial" for a description on related risks.

The number of shares of Class A common stock offered by this prospectus and all other applicable information has been determined based on an assumed public offering price of $[ ] per share, which is the midpoint of the estimated price range for this offering. The actual public offering price per share of our Class A common stock will be determined between the underwriters and us at the time of pricing, considering our historical performance and capital structure, prevailing market conditions, and overall assessment of our business. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of the actual public offering price for our Class A common stock. See "Underwriting - Determination of Offering Price" for additional information.

**Investing in our common stock involves a high degree of risk. Before buying any shares, you should carefully read the discussion of the material risks of investing in our common stock under the heading "Risk Factors" beginning on page 9 of this prospectus.**

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price | $| $|
| Underwriting discounts and commissions<sup>(1)</sup> | $| $|
| Proceeds to us, before expenses<sup>(2)</sup> | $| $|

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(1) Underwriting
discounts and commissions do not include a non-accountable expense allowance equal to 7.5% of the gross proceeds of the public offering
price payable to the underwriters. This table does not include a non-accountable expense allowance equal to 1% of the gross proceeds
of this offering payable to the underwriters. We refer you to "Underwriting" beginning on page 67 for additional information
regarding underwriters' compensation.

(2) The
 amount of offering proceeds to us presented in this table does not give effect to any exercise of the: (i) over-allotment option (if
 any) we have granted to the underwriters as described below or (ii) warrants to purchase shares of our Class A common stock to be
 issued to the underwriters.

We have granted a 45-day option to the underwriters to purchase up to [ ] additional shares of Class A common stock equal to 15% of the aggregate number of shares of Class A common stock sold in the offering solely to cover over-allotments, if any.

In addition to the underwriting discounts listed above, upon closing of this offering, we have agreed to issue to Chaince Securities, LLC and Revere Securities LLC, acting as representatives of the underwriters, or its designees, up to [ ] warrants equal to five percent (5%) of the total numbers of shares of Class A common stock issued in the offering (including any shares of Class A common stock sold as a result of the exercise of the underwriters' over-allotment option) (the "Warrants"), exercisable at any time and from time to time, in whole or in part, during the two and a half-year period commencing six months immediately following the date of commencement of sales of the securities issued in this offering, at a per share price equal to 120% of the initial public offering price. The registration statement of which this prospectus forms a part also covers the Warrants and the shares of Class A common stock issuable upon the exercise thereof.

The underwriters expect to deliver the securities to purchasers on or about , 2025.

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| | |
|:---|:---|
| ![](image_008.jpg) | ![](image_009.jpg) |

---

The date of this prospectus is , 2025

![](image_002.jpg)

![](image_003.jpg)

![](image_004.jpg)

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [THE OFFERING](#a_002) | 5 |
| [SUMMARY HISTORICAL CONSOLIDATED FINANCIAL DATA](#a_003) | 7 |
| [RISK FACTORS](#a_004) | 9 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_005) | 26 |
| [USE OF PROCEEDS](#a_006) | 27 |
| [MARKET FOR OUR COMMON STOCK](#a_007) | 28 |
| [DIVIDEND POLICY](#a_008) | 29 |
| [CAPITALIZATION](#a_009) | 30 |
| [DILUTION](#a_010) | 31 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_011) | 33 |
| [BUSINESS](#a_012) | 43 |
| [MANAGEMENT](#a_013) | 48 |
| [EXECUTIVE COMPENSATION](#a_014) | 52 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_015) | 55 |
| [SECURITY OWNERSHIP OF PRINCIPAL STOCKHOLDERS AND MANAGEMENT](#a_016) | 57 |
| [DESCRIPTION OF CAPITAL STOCK](#a_017) | 58 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_018) | 64 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS](#a_019) | 65 |
| [UNDERWRITING](#a_020) | 68 |
| [LEGAL MATTERS](#a_021) | 78 |
| [EXPERTS](#a_022) | 78 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_023) | 78 |
| [INDEX TO FINANCIAL STATEMENTS](#a_024) | F-1 |

---

i

**General Information**

Unless otherwise indicated in this prospectus, the terms "DCS," "we," "us" and "our" refer to Direct Communication Solution, Inc. and, where appropriate, its consolidated subsidiaries.

You should rely only upon the information contained in this prospectus or in any free writing prospectus prepared by us. We have not, and the underwriters have not, authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. You should assume that the information appearing in this prospectus and in any free writing prospectus prepared by us is accurate only as of their respective dates or on the date or dates specified in these documents. Our assets, business, cash flows, financial condition, liquidity, results of operations, and prospects may have changed since those dates.

This prospectus describes the specific details regarding this offering and the terms and conditions of our common stock being offered hereby and the risks of investing in shares of our common stock. For additional information, please see the section entitled "Where You Can Find More Information."

You should not interpret the contents of this prospectus or any free writing prospectus to be legal, business, investment or tax advice. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other issues that you should consider before investing in shares of our common stock.

**Financial Information**

We present our consolidated financial statements in United States dollars, and our financial statements included elsewhere in this prospectus are prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Unless otherwise indicated, any other financial information included or incorporated by reference in this prospectus has been prepared in accordance with U.S. GAAP. Certain financial information that we have historically filed in Canada on its System for Electronic Document Analysis and Retrieval ("SEDAR") profile has been prepared in accordance with International Financial Reporting Standards ("IFRS"). U.S. GAAP differs in certain material respects from IFRS. As a result, certain financial information included in this prospectus may not be comparable to the financial information we have historically reported at www.sedar.com. This prospectus does not include any explanation of the principal differences or any reconciliation between U.S. GAAP and IFRS.

**Exchange Rate Data**

Unless otherwise noted, all translations from Canadian dollar to U.S. dollars in this prospectus are made at US$1.00 = CAD $1.44, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2024.

**Trademarks**

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks and trade names or products in this prospectus is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the®, TM or SM symbols, but the omission of such references is not intended to indicate, in any way, that we will assert, to the fullest extent under applicable law, our rights or the right of the applicable owner of these trademarks, service marks and trade names.

**Market and Industry Data**

Unless otherwise indicated, information contained in this prospectus concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Because this information involves a number of assumptions and limitations, you are cautioned not to give undue weight to such information. We have not independently verified market data and industry forecasts provided by any of these or any other third-party sources referred to in this prospectus. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions we made upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

ii

**PROSPECTUS SUMMARY**

*This summary highlights selected information discussed in this prospectus. The summary is not complete and does not contain all of the information you should consider before investing in our common stock. Therefore, you should read this entire prospectus carefully, including the sections entitled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our financial statements and the related notes included elsewhere in this prospectus, before making a decision to purchase shares of our common stock. Some of the statements in this summary constitute forward-looking statements. See "Forward-Looking Statements."*

**Overview**

We are a provider of Internet of Things (IoT) products, services and solutions. We deliver enhanced one-stop solutions that connect assets to increase visibility, operational efficiency, and profitability. We provide our solutions and services to a variety of industries, including Asset Location Management, Supply Chain Logistics and Transportation. We are a chosen global partner of service providers, value-added collaborators, system integrators, and enterprises due to our commitment to quality and demonstrated experience. We intend to continue expanding our long-standing relationships and work strategically with our partners, to jointly build leading IoT solutions based on integrated hardware, cloud-based software, and other services.

For the years ended December 31, 2024 and 2023, we had net losses of $1,742,951 and $5,182,196, respectively. For the nine months ended September 30, 2025 and 2024, we had a net loss of $979,298 and a net income of $857,267, respectively. As a result of our recurring losses from operations and ongoing negative cash flows, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of, and for the year ended, December 31, 2024 and as of, and for nine months ended, September 30, 2025, describing the existence of substantial doubt about our ability to continue as a going concern.

**Our Products and Services**

***Smart Hardware:***

We identify the right device for our client with a focus on the most suitable technology (4G LTE, Bluetooth, WiFi, etc.), price and the features & capabilities of the device to collect the data to solve the client's problem. Our specialty is aiding global Original Equipment Manufacturers, or OEMs, with devices that are not available or approved to operate in North America and guide the OEM with regulatory guidance, feature requirements and preparing the equipment for the North American market. We assist OEMs who manufacture 4G/5G LTE cellular routers, gateways, GPS devices or Bluetooth/LoraWan Sensors to enter the North American market.

 ****

***Software as a Service:***

We offer software applications that are differentiated to the solutions we provide. Our software platform is highly customizable and scalable, supporting best in class devices from industry leading manufacturers. Our software applications are customizable to meet the specific requirements of our customers, providing visibility into the critical assets of that allow our customers to efficiently and effectively run their business through the data points provided by our software applications.

**<u>MiFleet</u>**

A cloud-based fleet and asset management platform designed for the Small and Medium-sized Enterprise businesses with a desire to manage and lower operating costs by remotely monitoring vehicles and asset of any type – including remote and lone workers. MiFleet provides insight to location information, fuel consumption, driver behavior and other data points in which the vehicle or asset can provide. MiFleet improves operational efficiencies, support predictive maintenance scheduling and aids in fleet/asset optimization; allowing fleets to do more with less.

MiFleet goes beyond dots on a map. Its vast catalog of device integrations and ability to support data points beyond location information allows us to aggregate sensor information to go beyond the fleet

**<u>MiSensors</u>**

MiSensors is our proprietary cloud-based remote sensor monitoring and management platform. It supports sensors of any type or technology. Businesses can remotely monitor their assets, equipment, or environment in real time. Alerts and Notifications are triggered when normal operating conditions are broken, providing immediate decision-making data for customers to run their business, lower their operational expense from a platform that is agnostic with sensor technology or type. Our offering allows customers to create and easily deploy an IoT sensor ecosystem that solves their real-world problems, as well as the ability to scale for future business operations. MiSensors allows our customers to set up multiple business locations, define users via hierarchy, set user-defined sensor reporting thresholds and run reports on the health of the assets in a business. The system is alert driven and notifies the customer of actionable events via email or SMS. Based on industry demand and multiple technology needs across our sales, we are integrating sensors utilizing Lora WAN, BLE and shortly Wi-Fi 6.

 ****

 ****

***Managed Services:***

Our clients leverage our extensive expertise in device integration and configuration to ensure the device is performing and gathering data as the client is expecting. Our team of field application engineers work with our clients to expedite device deployments, lowering costs and fast-tracking hardware solutions for mass adoption. Our knowledge and deep understanding of the IoT industry allows us to provide simple integration services, or custom solution design services based on specific customer requests

 ****

***Connectivity:***

We offer a variety of cellular connectivity options in partnership with Tier 1 Cellular Providers, Mobile Virtual Network Operators (MNVOs), and Global Connectivity providers. This broad range is desired by our customers based on their requirements. Such a wide variety of offerings results in significant complication to connectivity management, SIM management, and data consumption reporting. We have compiled our connectivity into one cost effective device and connectivity management platform. MiConnectivity - our SIM Management Platform - is a single pane of glass for us and our clients to manage SIM allocation, activation, usage reporting, and cost management. The consolidation of data usage reporting into one reporting system provides our customers with a distinctive advantage to lower their operating expense relating to cellular connectivity.

**Our Industry**

Internet of Things (IoT) is the interconnection of various devices, machines or appliances that generate data. The aim of IoT is not just to create data, but also to extract valuable insights and information from the data generated by various devices. The devices include vehicles, smart phones, gadgets, appliances, and other products with embedded electronic sensors and software that constitute the devices. Demand for IoT is driven by connectivity, cloud computing, and marketing automation. IoT is used by a variety of industries, organizations, and individuals to raise operational efficiency, reduce risk, enhance functional visibility, increase revenue streams, and guarantee the highest level of client engagement. According to Fortune Business Insights, the global (IoT) market is projected to grow from $714.48 billion in 2024 to $4,062.34 billion by 2032, at a CAGR of 24.3%.

**Our Competitive Advantages**

We have navigated this complex market by solving real-world, real-time problems. We distinguish ourselves from our competition by integrating our clients' philosophies into our team so that we may uphold their vision and maintain the integrity of their services. We have a very low turnover rate on our SaaS business and overall have a high customer retention. Our commitment to quality and the availability of our personnel separates us from other providers. Our growth strategy, mentioned above, should also expand our reputation from our peer group.

**Our Leadership Team**

We have assembled an experienced management team with significant experience in telecommunications, technology and sales. Our Founder, Mr. Chris Bursey, maintains over 20 years' experience in the wireless communications industry. In addition to our CEO, we maintain a COO, CTO and CFO.

**Our Growth Strategy**

The IoT sector is still developing. The rise and popularity of managing connected devices is emerging, and it is approaching widespread adoption. We believe the following strategies will help us expand our company:

<u>Increase staff.</u> We plan on increasing our staffing base by roughly 100% of our current headcount to meet demand. Currently, we have 10 employees and believe that number can grow to over 20 by early 2026. We seek to hire additional engineers, field technicians, customer service reps, support and salesmen.

<u>Increase marketing.</u> We are an efficient operation leveraging the relationships of management and the goodwill of our existing customers. To increase our exposure, we plan on attending various conferences, exhibitions and trade meetings to boost our profile in the market.

<u>Research and Development.</u> We are developing an aggregated/universal device management platform that we anticipate can be integrated into our current product offerings to our existing clients. The software will speed up the decision-making process by gathering big data at a faster rate.

<u>Purchase inventory.</u> By boosting our inventories, we can avoid supply chain disruptions that adversely impacted our clients. Our increase in inventories will allow our clients to rely on us in greater capacity and provide recurring revenue. This strengthens our position to sell inventory with other value-added managed systems and connectivity solutions.

<u>Acquisitions/Geographic expansion.</u> Our industry is highly fragmented. Our clients have various locations. It behooves us to expand domestically into another highly trafficked metropolitan area. We are seeking complementary IoT companies that can expand our customer base while providing us with visibility in a new location. We are targeting companies that can give us a technological advantage over other service providers.

<u>Expand and Enhance Global Strategic Partnerships.</u> We intend to stay relevant and avoid supply chain disruptions by establishing relationships with leading IoT companies and OEMs. The partnerships should allow immediate access to the most important products on the market. Our goal is to expand and satisfy our existing customer base. We also intend to reach new potential partners in the blockchain telecommunication and IoT industry for additional growth.

**Risks Affecting Our Business**

Our business is subject to numerous risks and uncertainties, including those highlighted in the section entitled "Risk Factors" immediately following this prospectus summary. These risks include, but are not limited to, the following:

● uncertainty around our future revenue growth and profitability;

● our possible need to raise additional funding, which may not be available on acceptable terms, or at all;

● the intensely competitive nature of the market in which we participate;

● uncertainty around our ability to develop our business and the market's reception of our services;

● the success of our efforts to expand, develop, and integrate our products and services;

● the existence of any defects or disruptions in our services;

● the impact of natural disasters, pandemics, other catastrophic events, and man-made problems such as war and regional geopolitical conflicts around the world;

● the security of online computer information, including breaches and enterprise data theft;

● the impact on our business of data privacy regulations or data privacy breaches;

● the impact of any weakening of global economic conditions;

● costs related to our compliance with existing and future regulations;

● the impact on our business of product liability claims;

● our ability to protect our intellectual property rights;

● costs associated with defending possible third party infringement or appropriation claims;

● our ability to attract and retain qualified key management and technical personnel;

● our performance in delivering high-quality technical support; and

● our reliance on a single customer for a substantial portion of our revenues.

● Impact of tariff and trade restrictions from current political uncertainty

You should carefully consider all of the information set forth in this prospectus and, in particular, the information in the section entitled "Risk Factors" beginning on page 9 of this prospectus prior to making an investment in our common stock. These risks could, among other things, prevent us from successfully executing our strategies and could have a material adverse effect on our business, financial condition and results of operations.

**Corporate Information**

Our company was incorporated ins incorporated in Florida on September 9, 2006 and reincorporated in Delaware in April 2017, and is located at 11021 Via Frontera, Suite C, San Diego, California 92127. Our telephone number is (858)798-7100. Our website address is https://dcsbusiness.com/. Information contained on, or that can be accessed through, our website is not incorporated by reference in this prospectus. We have included our website address in the prospectus solely as an inactive textual reference.

**Implications of Being an 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 ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). For so long as we remain an EGC, we are permitted and have elected to rely on exemptions from specified disclosure requirements that are applicable to other public companies that are not EGCs. These exemptions include:

● being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;

● not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting;

● not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements;

● reduced disclosure obligations regarding executive compensation; and

● exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

We may take advantage of these provisions until the last day of the fiscal year following the fifth anniversary of the closing of this offering or such earlier time when we are no longer an EGC. We will cease to be an EGC if we have more than $1.235 billion in annual revenue, have more than $700 million in market value of our capital stock held by non-affiliates or issue more than $1 billion of non-convertible debt over a three-year period. We may choose to take advantage of some, but not all, of the available exemptions. We have taken advantage of some reduced reporting burdens in this prospectus. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you may hold stock.

The JOBS Act provides that an EGC may take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an EGC to delay the adoption of accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption is required for private companies. As part of this election, we are delaying the adoption of accounting guidance related to leases and implementation costs incurred in cloud computing arrangements that currently applies to public companies. We are assessing the impact this guidance will have on our financial statements. See Note 2 to our audited consolidated financial statements included elsewhere in this prospectus for additional information.

**Smaller Reporting Company Status**

We are a "smaller reporting company" as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

**THE OFFERING**

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| Common stock offered by us | [ ] shares of Class A common stock |
| Common stock outstanding immediately after this offering | [ ] shares of Class A common stock, representing [ ]% of our total issued and outstanding shares and [ ]% of the aggregate voting power of our total issued and outstanding shares (or [ ] shares of Class A common stock if the underwriters exercise their option to purchase additional shares of common stock in full, representing [ ]% of our total issued and outstanding shares and [ ]% of the aggregate voting power of our total issued and outstanding shares).<br>529,142 shares of Class B common stock, representing [ ]% of our total issued and outstanding shares and [ ]% of the aggregate voting power of our total issued and outstanding shares (or [ ]% of our total issued and outstanding shares and [ ]% of the aggregate voting power of our total issued and outstanding shares, if the underwriters exercise their option to purchase additional shares of common stock in full). |
| Option to purchase additional shares of Class A common stock | We have granted the underwriters a 45-day option to purchase up to [ ] additional shares of our Class A common stock to cover overallotments, if any, at the applicable public offering price less the underwriting discounts and commissions shown on the cover page of this prospectus. The underwriters may exercise this option in full or in part at any time and from time to time until 45 days after the closing of this offering. |

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|:---|:---|
| Use of proceeds | We estimate that the net proceeds to us from this offering will be approximately $[ ], or approximately $[ ] if the underwriters exercise their over-allotment option in full, assuming a public offering price of $[ ] per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus.<br>We intend to use the net proceeds of this offering for working capital and other general corporate purposes, including potential increases in our staffing, marketing, and inventory levels, expenditures related to research and development, and expenditures related to expanding and enhancing our global strategic partnerships.<br>See "Use of Proceeds" for a more complete description of the intended use of proceeds from this offering. |

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| Lock up | The Company and any successors of the Company, each of our directors and executive officers, and our 5% and greater stockholders, have agreed not to or are otherwise restricted in their ability to, subject to certain limited exceptions, (1) offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our common stock or any securities convertible into or exchangeable or exercisable for common stock, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of the shares of our common stock, (2) file or cause to be filed any registration statement with the SEC relating to the offering of any shares of common stock or any securities convertible into or exercisable or exchangeable for common stock; or (3) enter into any swap or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of common stock, subject to certain exceptions, in the case of the Company and any successors of the Company for a period of three months after the closing of this offering, and in the case of our directors and executive officers and our 5% and greater stockholders for a period of six months after the closing of this offering, without the prior written consent of Chaince Securities, LLC and Revere Securities LLC, as representatives of the underwriters. |

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|:---|:---|
| Representatives' warrants | Upon closing of this offering, we have agreed to issue to Chaince Securities, LLC and Revere Securities LLC, acting as representatives of the underwriters, or their designees, the Warrants equal to five percent (5%) of the total numbers of shares of Class A common stock issued in the offering (including any shares of Class A common stock sold as a result of the exercise of the underwriters' over-allotment option), exercisable at any time and from time to time, in whole or in part, during the two and a half-year period commencing six months immediately following the date of commencement of sales of the securities issued in this offering, at a per share price of $[ ], equal to 120% of the initial public offering price (based on an assumed initial public offering price of $[ ] per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). See "Underwriting — Representatives' Warrants" for a description of these warrants. |

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Risk factors You should read the "Risk Factors" section of this prospectus beginning on page 9 for a discussion of factors to consider carefully before deciding to invest in shares of our common stock.

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|:---|:---|
| Proposed NYSE American symbols | Our common stock is currently quoted on the OTCQX under the symbol "DCSX," the CSE under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." We have applied for the listing of our common stock on NYSE American under the symbol "DCSX". The approval of our listing on NYSE American is a condition to the closing of this offering. |

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Unless we indicate otherwise or the context otherwise requires, all information in this prospectus:

● assumes no exercise by the underwriters of their over-allotment option;

● assumes no exercise of the warrants to be issued to the representatives of the underwriters in this offering;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding options at a weighted exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of convertible debentures, assuming an offering price of [ ] per share, the midpoint of the price range on the cover of this prospectus; and

● excludes [ ] shares of Class A common stock reserved for future issuance under our 2023 Stock Plan, as well as any automatic increases in the shares of Class A common stock reserved for future issuance under the 2023 Stock Plan.

**SUMMARY HISTORICAL CONSOLIDATED FINANCIAL DATA**

The following tables set forth our summary historical consolidated financial data as of, and for the years ended on December 31, 2024 and 2023, which are derived from our audited consolidated financial statements and notes that are included elsewhere in this prospectus, as well as our summary historical consolidated financial data as of, and for the nine months ended on September 30, 2025 and 2024, which are derived from our unaudited consolidated financial statements and notes that are included elsewhere in this prospectus

Our historical results are not necessarily indicative of our results in any future period.

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| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Revenues** |  |  |
| Products | $3492622 | $10500565 |
| Solutions and other services | 2915528 | 2527110 |
| Total revenues | 6408150 | 13027675 |
| **Cost of revenues** |  |  |
| Products | 3070442 | 7706420 |
| Solutions and other services | 1169025 | 892449 |
| Total cost of revenues | 4239467 | 8598869 |
| **Gross profit** | 2168683 | 4428806 |
| **Operating expenses** |  |  |
| Research and development | 258561 | 515691 |
| General and administrative |  |  |
| Compensation and benefits | 2509091 | 3468826 |
| Depreciation and amortization | 188246 | 420966 |
| Professional fees | 1041901 | 3072330 |
| Bank fees and interest | 154965 | 272532 |
| Bad debt expense (recovery) | (57072) | 121695 |
| Facilities | 90226 | 78455 |
| Information technology | 153725 | 191783 |
| Advertising and marketing | 91174 | 246727 |
| Other | 385060 | 877926 |
| Total operating expenses | 4815877 | 9266931 |
| **Loss from operations** | (2647194) | (4838125) |
| Other income (expense): |  |  |
| Net changes in fair value | (1349769) | 359062 |
| Rent | 12000 |  |
| Expense recovery | 356961 |  |
| Gain on debt extinguishment | 2914776 |  |
| &nbsp;&nbsp;Impairment of intangible |  | (210056) |
| Interest expense and accretion | (1029725) | (493077) |
| **Net loss** | $(1742951) | $(5182196) |
| Net loss per share: |  |  |
| Basic | $(0.76) | $(2.25) |
| Diluted | $(0.76) | $(2.25) |
| Weighted average number of shares: |  |  |
| Basic | 2305079 | 2305079 |
| Diluted | 2305079 | 2305079 |

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br> September 30,** | **Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** |
| **Revenues** |  |  |
| Products | $4875852 | $2719152 |
| Solutions and other services | 2328182 | 2171247 |
| Total revenues | 7204034 | 4890399 |
| **Cost of revenues** |  |  |
| Products | 3681731 | 2213781 |
| Solutions and other services | 920592 | 850467 |
| Total cost of revenues | 4602323 | 3064248 |
| **Gross profit** | 2601711 | 1826151 |
| **Operating expenses** |  |  |
| Research and development | 72386 | 214757 |
| General and administrative |  |  |
| Compensation and benefits | 2244588 | 1841700 |
| Depreciation and amortization | 139280 | 141819 |
| Professional fees | 380625 | 463536 |
| Bank fees and interest | 102474 | 123929 |
| Bad debt expense (recovery) | 49863 | (139189) |
| Facilities | 61368 | 68989 |
| Information technology | 112868 | 124455 |
| Advertising and marketing | (2994) | 90674 |
| Other | 287752 | 297000 |
| Total operating expenses | 3448210 | 3227670 |
| **Loss from operations** | (846499) | (1401519) |
| Other income (expense): |  |  |
| Net changes in fair value | 1555845 | (29962) |
| Rent income | 9000 | 9000 |
| Gain on debt extinguishment |  | 2914776 |
| Interest expense and accretion | (1697644) | (635028) |
| **Net loss** | $(979298) | $857267 |
| Net loss per share: |  |  |
| Basic | $(0.40) | $0.37 |
| Diluted | $(0.40) | $0.30 |
| Weighted average number of shares: |  |  |
| Basic | 2424789 | 2305079 |
| Diluted | 2424789 | 2818123 |

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| | | |
|:---|:---|:---|
| <br>**Summary Consolidated Balance Sheet Data:** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Cash | $**603344** | **30723** |
| Total assets | $**2732937** | **3059005** |
| Total liabilities | $**11955194** | **10666567** |
| Total stockholders' equity (deficit) | $**(9222257)** | **(7607562)** |

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| | | |
|:---|:---|:---|
| <br>**Summary Consolidated Balance Sheet Data:** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash | $**487401** | **603344** |
| Total assets | $**1892892** | **2732937** |
| Total liabilities | $**10477158** | **11955194** |
| Total stockholders' equity (deficit) | $**(8584266)** | **(9222257)** |

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**RISK FACTORS**

*An investment in shares of our common stock involves a high degree of risk. You should carefully consider the following risks and uncertainties described below and all of the other information contained in this prospectus, including our consolidated financial statements and the related notes appearing at the end of this prospectus, before deciding whether to invest in shares of our common stock. If any of the following risks are realized, our business, financial condition and results of operations could be materially and adversely affected. In that event, the trading price of our common stock could decline and you could lose all or part of your investment in shares of our common stock. Additional risks of which we are not presently aware or that we currently believe are immaterial may also harm our business and results of operations. Some statements in this prospectus, including such statements in the following risk factors, constitute forward-looking statements. See the section entitled "Cautionary Note Regarding Forward-Looking Statements."*

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

***Because we have a limited operating history, our future revenue growth remains uncertain and we may not achieve profitability.***

 ****

We have a limited operating history upon which to base an evaluation of our business and prospects. Although we seek to increase revenues through organic growth and the development of new revenue streams, we cannot assure you that our revenues will increase in future quarters or future years. Operating results for future periods are subject to numerous uncertainties and we cannot provide assurance that we will achieve or sustain profitability. Profitability depends on many factors, including, our success in expanding our product offerings and our customer base, the control of our expense levels, the success of our business activities and general economic conditions. We may make investments in marketing, technology and further development of our operating infrastructure which entail long-term commitments. Our industry as a whole may be adversely affected by industry trends, economic factors and new regulations. Despite our efforts to expand our revenues and achieve profitable operations, we may not be successful. Our prospects must be considered in light of the risks encountered by companies in a relatively early stage of development, particularly companies in new and rapidly evolving markets. We cannot provide assurance we will successfully address any of these risks. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce our planned research and development activities, incur additional restructuring charges or reduce other operating expenses which may cast substantial doubt on our ability to achieve our intended business objectives.

***We may need to raise additional funding, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations.***

 ****

Our working capital may not be sufficient to allow us to execute our business plan as fast as we would like or may not be sufficient to take full advantage of all available strategic opportunities. Our operating plan may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than planned, through public or private equity or debt financings, or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements or a combination of these approaches. Even if we believe we have sufficient funds for our current or future operating plans, we may seek additional capital if market conditions are favorable or if we have specific strategic considerations.

Any additional fundraising efforts may divert our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our products. In addition, we cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all. Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our shares to decline. The sale of additional equity or convertible securities may dilute our existing stockholders. The incurrence of indebtedness would result in increased fixed payment obligations and it may be required to agree to certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable and it may be required to relinquish rights to some of our technologies or product candidate or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results and prospects.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization of any product, or be unable to execute our business plans, develop or enhance our services, expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and results of operations.

 ****

 ****

***Our management and our independent registered public accountant, in their report on our financial statements as of and for the year ended December 31, 2024, have concluded that due to our need for additional capital, and the uncertainties surrounding our ability to raise such funding, substantial doubt exists as to our ability to continue as a going concern.***

As a result of our recurring losses from operations and ongoing negative cash flows, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of, and for the year ended, December 31, 2024 and as of, and for nine months ended, September 30, 2025, describing the existence of substantial doubt about our ability to continue as a going concern. If we are unable to obtain sufficient funding, our business, prospects, financial condition and results of operations will be materially and adversely affected and we may be unable to continue as a going concern. If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our financial statements, and it is likely that investors will lose all or a part of their investment. We may also be forced to make reductions in spending, including delaying or curtailing our planned business strategy, or to extend payment terms with our suppliers or other counterparties. Future reports from our independent registered public accounting firm may also contain statements expressing doubt about our ability to continue as a going concern. If we seek additional financing to fund our business activities in the future and there remains doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms or at all. Such substantial doubt does not give effect to the receipt of any proceeds from this offering.

***Defaults and covenant violations under certain of our outstanding loans could require immediate repayment and adversely affect our liquidity.***

On June 7, 2024, as the result of a vendor changing its terms with us from billing devices and device management subscriptions from a payment term of 36 months down to 30 days reducing the frequency of occurrence for long term payables, we entered into an agreement with the vendor to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. The interest is due quarterly, and the principal will be due on June 7, 2029. As of September 30, 2025, we recorded $400,264 accrued interest and finance fee and a carrying balance of $3,600,265 of the loan was outstanding. During the nine months ended September 30, 2025, we paid $50,000 interest expenses but have fallen behind on interest payments. Although the lender has not yet issued a formal demand letter or declared a default as of the date of this prospectus, this breach of the loan agreement entitles the lender to demand immediate repayment of the full loan balance.

In March 2025, we entered into two loan agreements with third parties for proceeds of $284,500 and $175,000. The loans are repayable in 35 and 65 weekly payments, respectively, starting April 2025, bearing an Estimated Annual Percentage Rate at 84.26% and 43.31%, respectively, and are secured by a general security agreement on our assets. As of September 30, 2025, we were not in compliance with the covenant of both loan agreements that prohibits entering additional financing arrangements without the lenders' consent and were also in arrears on interest payments for the loan with proceeds of $284,500. While the lenders have not yet taken formal action, the non-compliance could allow them to demand immediate repayment of the full loan balances, exercise their rights under the related security agreements and personal guarantee, and seek contractual damages and collection costs.

In April 2025, we entered into a loan agreement with a third party for proceeds of $235,000. The loan is payable in 26 weekly payments, starting April 2025, bearing an Estimated Annual Percentage Rate at 165% and is secured by a general security agreement on our assets. As of September 30, 2025, we were not in compliance with a covenant of the loan agreement that prohibits the sale or pledge of our receivables and were also in arrears on the interest payments. While the lender has not yet taken formal action, the non-compliance could allow the lender to demand immediate repayment of the full loan balance, exercise its rights under the related security agreement and personal guarantee, and seek contractual damages and collection costs.

**Risks Related to Our Business, Strategy and Industry**

 ****

***The industry in which we participate is intensely competitive, and if we do not compete effectively, our operating results could be harmed.***

The IoT market in which we compete require continuous innovation and are highly competitive, rapidly evolving, subject to changing technology, shifting customer needs and frequent introductions of new products and services. Our competitors in the IoT enterprise marketplace include vendors of IoT devices and products, cloud platform providers for certain hardware and application vendors, hardware providers offering sensors and cloud integration partners, and IoT platforms from companies that have existing relationships with hardware and software companies. We compete on a service basis, by offering fully integrated IoT device connectivity to a variety of niche markets. New competitors could launch new businesses in our markets at a relatively low cost since technological and financial barriers to entry are relatively low. Some of our current and potential competitors may have competitive advantages, such as greater name recognition, longer operating histories, significant installed bases, broader geographic scope, and larger marketing budgets, as well as substantially greater financial, technical, personnel, and other resources. In addition, our potential competitors may have established marketing relationships and access to larger customer bases, and have major distribution agreements with consultants, system integrators and resellers. We may also experience competition from smaller, younger competitors that may be more agile in responding to customers' demands. These competitors may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards or customer requirements or provide competitive pricing. As a result, even if our services are more effective than the products and services that our competitors offer, potential customers might select competitive products and services in lieu of purchasing our products and services. For these reasons, we may not be able to compete successfully against our current and future competitors, which could negatively impact our future sales and harm our business and financial condition.

In order to differentiate our products and services from competitors' products, we must continue to focus on research and development, including software development, and enhance and improve our existing services and adapt to current technologies. If our existing or new products and services fail to achieve widespread market acceptance, if existing customers do not subscribe to our paid subscription services, or if we are unsuccessful in capitalizing on opportunities in the connected IoT market, our future growth may be slowed and our business, results of operations and financial condition could be materially adversely affected.

***Our efforts to expand our products and services and to develop and integrate our existing services in order to keep pace with technological developments may not succeed and may reduce our revenue growth rate and harm our business.***

 ****

We seek to derive revenue from integrating our IoT and machine-to-machine (M2M) product mix, building unique IoT solutions, and from subscriptions to our SaaS cloud computing application services, and we expect this will continue for the foreseeable future. Our efforts to expand our products and services may not result in long term success or significant revenue for us. The markets for certain of our offerings, including our data integration offerings, remain relatively new. In addition, if we fail to anticipate or identify significant Internet-related and other technology trends and developments early enough, or if we do not devote appropriate resources to adapting to such trends and developments, our business could be harmed. Further, if we are unable to develop enhancements to and new features for our existing or new services that keep pace with rapid technological developments, our business could be harmed. The success of enhancements, new features and services depends on several factors, including the timely completion, introduction and market acceptance of the feature, service or enhancement by customers, administrators and developers, as well as our ability to seamlessly integrate all of our product and service offerings and develop adequate selling capabilities in new markets. Failure in this regard may significantly impair our revenue growth as well as negatively impact our operating results if the additional costs are not offset by additional revenues. In addition, because our services are designed to operate over various network technologies and on a variety of mobile devices, operating systems and computer hardware and software platforms, we will need to continuously modify and enhance our services to keep pace with changes in Internet-related hardware, software, communication, browser, app development platform and database technologies, as well as continue to maintain and support our services on legacy systems. We may not be successful in either developing these modifications and enhancements or in bringing them to market timely. Furthermore, uncertainties about the timing and nature of new network platforms or technologies, or modifications to existing platforms or technologies, could increase our research and development or service delivery expenses. Any failure of our services to operate effectively with future network platforms and technologies could reduce the demand for our services, result in customer dissatisfaction and harm our business.

***Defects or disruptions in our services could diminish demand for our services and subject us to substantial liability.***

 ****

Because our services are complex and incorporate a variety of third-party hardware and proprietary and third-party software, our services may have errors or defects that could result in unanticipated downtime for our subscribers and harm to our reputation and our business. Cloud services frequently contain undetected errors when first introduced or when new versions or enhancements are released. We may from time to time experience system outages resulting in disruptions to, our services. Defects affecting our services may be found following the introduction of new software or enhancements to existing software or in software implementations in varied information technology environments. Internal quality assurance testing and end-user testing may reveal service performance issues or desirable feature enhancements that could lead us to reallocate service development resources or postpone the release of new versions of our software. Such defects could also create vulnerabilities that could inadvertently permit access to protected customer data. Since our customers use our services for important aspects of their business, any errors, defects, disruptions in service or other performance problems, or delays in the development and release of future enhancements to our currently available software, could hurt our reputation and may damage our customers' businesses. As a result, customers could elect to not renew our services or delay or withhold payment to us. We could also lose future sales or customers may make warranty or other claims against us, which could be detrimental to our reputation and result in an increase in our allowance for doubtful accounts, an increase in collection cycles for accounts receivable or the expense and risk of litigation.

***We may be adversely affected by natural disasters, pandemics, and other catastrophic events, and by man-made problems such as war and regional geopolitical conflicts around the world, that could disrupt our business operations, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.***

 ****

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce, and the global economy, and thus could have an adverse effect on us. Our business operations are also subject to interruption by fire, power shortages, flooding, and other events beyond our control. In addition, our global operations expose us to risks associated with public health crises, such as pandemics and epidemics, which could harm our business and cause our operating results to suffer. Further, acts of war, armed conflict, terrorism and other geopolitical unrest, such as the conflicts in the Middle East and Ukraine and tensions between China and Taiwan, could cause disruptions in our business or the businesses of our partners or the economy as a whole.

In the event of a natural disaster, including a major earthquake, blizzard, or hurricane, or a catastrophic event such as a fire, power loss, cyberattack, or telecommunications failure, we may be unable to continue our operations and may endure system interruptions, reputational harm, delays in development of our platform, lengthy interruptions in service, breaches of data security, and loss of critical data, all of which could have an adverse effect on our future operating results. Climate change could result in an increase in the frequency or severity of such natural disasters. Moreover, any of our office locations or data centers may be vulnerable to the adverse effects of climate change. For example, California, where our operations are primarily located, is a state that frequently experiences earthquakes, wildfires, and resultant air quality impacts and power shutoffs associated with wildfire prevention, heatwaves, and droughts. These events can, in turn, have impacts on inflation risk, food security, water security, and on our employees' health and well-being. Additionally, all the aforementioned risks will be further increased if we do not implement an effective disaster recovery plan or our partners' disaster recovery plans prove to be inadequate.

***Our business is subject to online security risks, including security breaches and enterprise data theft.***

 ****

Security remains a significant issue across the entire IoT ecosystem. An increasing number of organizations have reported breaches of their security on their connected devices and many companies have been the subject of sophisticated and highly targeted attacks. Maintaining the security of computer information systems and communication systems is a critical issue for us and our customers. Malicious actors may develop and deploy malware that is designed to manipulate our systems, including our internal network, or those of our vendors or customers. Additionally, outside parties may attempt to fraudulently induce our employees to disclose sensitive information in order to gain access to our information technology systems, our data or our customers' data. A party who is able to illicitly breach a client's security protocol could access enterprise and transaction data. We have access to or host confidential information as part of our client relationship management and transactional processing platforms. Our security measures may not detect or prevent security breaches that could harm our or our client's business. We devote considerable resources to network security, data encryption and other security measures to protect our hardware and software systems and enterprise and client information, but these measures may not provide absolute security. We may need to expend significant resources to protect against security breaches or to address problems caused by breaches. Furthermore, advances in computer capabilities, new discoveries in the field of cryptography, biometric identification or other developments may not prevent the technology used by us to protect transactional data from being breached or compromised. A party that is able to circumvent our security measures could misappropriate proprietary information, cause interruption in our or our client's operations, or damage the computers or business of our users. Any compromise of our client's system security could result in the unauthorized release of confidential information, violate applicable privacy and other laws, expose us to a risk of loss or litigation and possible liability, and harm our reputation and, therefore, our business. Our insurance policies carry coverage limits which may not be adequate to reimburse us for losses caused by security breaches.

***Privacy concerns and laws, evolving regulation of cloud computing, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business.***

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Regulation related to the provision of services over the Internet is evolving, as federal, state and foreign governments continue to adopt new, or modify existing, laws and regulations addressing data privacy and the collection, processing, storage, transfer and use of data. Although currently focused primarily on consumer personal data, domestic data privacy laws, such as the California Consumer Privacy Act ("CCPA") effective January 2020, could continue to evolve and expose us to regulatory burdens. Further, data privacy laws and regulations, such as the European Union's ("EU") General Data Protection Regulation that took effect in May 2018, impose obligations on data controllers and data processors. Additionally, certain countries have passed or are considering passing laws requiring local data residency. We strive to comply with our applicable policies and applicable laws, regulations, contractual obligations, and other legal obligations relating to privacy, data protection, and data security to the extent possible. However, the regulatory framework for privacy, data protection and data security worldwide is, and is likely to remain for the foreseeable future, uncertain and complex, and it is possible that these or other actual or alleged obligations may be interpreted and applied in a manner that we do not anticipate or that is inconsistent from one jurisdiction to another and may conflict with other legal obligations or our practices. Further, any significant change to applicable laws, regulations or industry practices regarding the collection, use, retention, security or disclosure of data, or their interpretation, or any changes regarding the manner in which the consent of users or other data subjects for the collection, use, retention or disclosure of such data must be obtained, could increase our costs and require us to modify our products and services, possibly in a material manner, which we may be unable to complete, and may limit our ability to store and process user data or develop new products, services and features. These and other requirements could reduce demand for our services, require us to take on more onerous obligations in our contracts, restrict our ability to store, transfer and process data or, in some cases, impact our ability or our customers' ability to offer our services in certain locations, to deploy our solutions, to reach current and prospective customers, or to derive insights from customer data globally. The costs of compliance with, and other burdens imposed by, privacy laws, regulations and standards may limit the use and adoption of our services, reduce overall demand for our services, make it more difficult to meet expectations from or commitments to customers, lead to significant fines, penalties or liabilities for noncompliance, impact our reputation, or slow the pace at which we close transactions, any of which could harm our business.

In addition to government activity, privacy advocacy and other industry groups have established or may establish new self-regulatory standards that may place additional burdens on our ability to provide our services globally. Our customers may expect us to meet voluntary certification and other standards established by third parties. If we are unable to maintain these certifications or meet these standards, it could adversely affect our ability to provide our solutions to certain customers and could harm our business. Furthermore, the uncertain and shifting regulatory environment and trust climate may cause concerns regarding data privacy and may cause our customers or our customers' customers to resist providing the data necessary to allow our customers to use our services effectively. Even the perception that the privacy of personal information or the security of enterprise information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services and could limit adoption of our cloud-based solutions.

***Weakened global economic conditions may adversely affect our industry, business and results of operations.***

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Our overall performance depends in part on worldwide economic and geopolitical conditions. The United States and other key international economies have experienced cyclical downturns from time to time in which economic activity was impacted by falling demand for a variety of goods and services, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with respect to the economy. These economic conditions can arise suddenly and the full impact of such conditions can remain uncertain. In addition, geopolitical developments, such as trade disputes, new or increased tariffs, or changes to fiscal and monetary policy can increase levels of political and economic unpredictability globally and increase the volatility of global financial markets. For more information, see "*—Changes to United States tariff and import/export regulations may have a negative effect on our Company and, in turn, harm us.*" Moreover, these conditions can affect the rate of information technology spending and could adversely affect our customers' ability or willingness to purchase our IoT services, delay prospective customers' purchasing decisions, reduce the value or duration of their subscription contracts, or affect attrition rates, all of which could adversely affect our future sales and operating results.

***Our business is subject to government regulation and future regulation or regulatory changes may increase the cost of compliance and doing business.***

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We are subject to various federal, state and local laws, regulations and administrative practices affecting our business. These include the requirement to obtain business licenses and certifications, and other such legal requirements, regulations and administrative practices required of businesses in general. The foregoing regulatory matters may also be applicable to any of our collaborative partners or licensees. In addition, we are currently or potentially subject to laws and regulations affecting our operations in a number of areas, including data privacy requirements, intellectual property ownership and infringement, and security. We cannot predict the impact, if any, that future internet or IoT-related regulation or regulatory changes might have on our business. In certain jurisdictions, these regulatory requirements may be more stringent than in the United States. Noncompliance with applicable regulations or requirements could subject us to:

● investigations, enforcement actions, and sanctions;

● mandatory changes to our solutions and services;

● disgorgement of profits, fines, and damages;

● civil and criminal penalties or injunctions;

● claims for damages by our customers or channel partners;

● termination of contracts; and

● loss of intellectual property rights.

If any governmental sanctions are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, financial condition, and results of operations could be adversely affected. In addition, responding to any action will likely result in a significant diversion of our management's attention and resources and an increase in professional fees. Enforcement actions and sanctions could materially harm our business, financial condition, and results of operations. Additionally, companies in the technology industry have recently experienced increased regulatory scrutiny. Any reviews by regulatory agencies or legislatures may result in substantial regulatory fines, changes to our business practices, and other penalties, which could negatively affect our business and results of operations. Changes in social, political, and regulatory conditions or in laws and policies governing a wide range of topics may cause us to change our business practices. Further, our expansion into a variety of new use cases for our solution could also raise a number of new regulatory issues. Compliance with these laws, regulations, and similar requirements may be onerous and expensive, and variances and inconsistencies from jurisdiction to jurisdiction may further increase the cost of compliance and doing business. Any such costs, which may rise in the future as a result of changes in these laws and regulations or in their interpretation, could individually or in the aggregate make our services less attractive to our customers, delay the introduction of new products or services in one or more regions, or cause us to change or limit our business practices.

***Industry-specific regulation and other requirements and standards are evolving and unfavorable industry-specific laws, regulations, interpretive positions or standards could harm our business.***

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Our customers and potential customers conduct business in a variety of industries, including manufacturing, automotive, agriculture, retail, transportation and logistics and telecommunications. Regulators in certain industries have adopted and may in the future adopt regulations or interpretive positions regarding the use of cloud computing and other outsourced services. The costs of compliance with, and other burdens imposed by, industry-specific laws, regulations and interpretive positions may limit our customers' use and adoption of our services and reduce overall demand for our services. Compliance with these regulations may also require us to devote greater resources to support certain customers, which may increase costs. If we are unable to comply with these guidelines or controls, or if our customers are unable to obtain regulatory approval to use our services where required, our business may be harmed. In addition, an inability to satisfy the standards of certain voluntary third-party certification bodies that our customers may expect may have an adverse impact on our business and results. If in the future we are unable to achieve or maintain industry-specific certifications or other requirements or standards relevant to our customers, it may harm our business and adversely affect our results.

Further, in some cases, industry-specific laws, regionally-specific, or product-specific laws, regulations, or interpretive positions may also apply directly to us as a service provider. The interpretation of many of these statutes, regulations, and rulings is evolving in the courts and administrative agencies and an inability to comply may have an adverse impact on our business and results. Any failure or perceived failure by us to comply with such requirements could have an adverse impact on our business. We may in the future be subject to litigation containing allegations that one of our customers violated an industry-specific law. A determination that we violated such a law could expose us to significant damage awards that could, individually or in the aggregate, materially harm our business.

***Our business may expose us to product liability claims for damages resulting from the design or manufacture of our products. Product liability claims, whether or not we are ultimately held liable for them, could have a material adverse effect on our business and results of operations.***

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We may be subject to product liability claims for certain of our products if they are alleged to be defective or cause harmful effects. Product liability claims or other claims related to our products, regardless of their outcome could require us to spend significant time and money in litigation, divert management time and attention, require us to pay significant damages, harm our reputation or hinder acceptance of our products. Any successful product liability claim may prevent us from obtaining adequate product liability insurance in the future on commercially desirable or reasonable terms. An inability to obtain sufficient insurance coverage at an acceptable cost or otherwise to protect against potential product liability claims could prevent or inhibit the commercialization of our products.

***Our operations are subject to the effects of a rising rate of inflation which may adversely impact our financial condition and results of operations.***

Inflation in the United States began to rise significantly in the second half of the calendar year 2021. This is primarily believed to be the result of the economic impacts from the COVID-19 pandemic, including the global supply chain disruptions, strong economic recovery and associated widespread demand for goods, and government stimulus packages, among other factors. For instance, global supply chain disruptions have resulted in shortages in materials and services. Such shortages have resulted in inflationary cost increases for labor, materials, and services across the economy, and could continue to cause costs to increase as well as scarcity of certain products. We are experiencing inflationary pressures in certain areas of our business, including with respect to employee wages, however, we cannot predict any future trends in the rate of inflation or associated increases in our operating costs and how that may impact our business. To the extent we are unable to recover higher operating costs resulting from inflation or otherwise mitigate the impact of such costs on our business, our revenues and gross margins could decrease, and our financial condition and results of operations could be adversely affected.

In addition, inflation is often accompanied by higher interest rates. The possibility of high inflation and extended economic downturn could reduce our ability to incur debt or access capital and impact our results of operations and financial condition even after these conditions improve.

**Risks Related to our Intellectual Property**

***Our inability to protect our intellectual property rights could diminish the value of our products, weaken our competitive position and reduce our future revenue.***

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We rely on a combination of patent, copyright and trademark laws, trade secrets, some software security measures (e.g., to protect trade secrets), license agreements and nondisclosure agreements to protect our intellectual property, all of which offer only limited protection. We pursue the registration of trademarks but currently hold no patents on our products. Our commercial success may depend in large part on our ability to protect our trade secrets, and to obtain patent and other intellectual property protection in the United States and other countries with respect to our proprietary technology and products. We intend to seek to protect our proprietary position by filing and prosecuting patent applications in the United States related to our technologies and products that are important to our business. However, the steps we take to protect our intellectual property rights may be limited or inadequate. For instance, we will not be able to protect our intellectual property rights if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property rights, or unauthorized or unlawful use of our technology, software, or intellectual property rights. In addition, a counterparty to a nondisclosure agreement may breach the agreement, and litigation to enforce our rights could cause us to divert resources away from our business operations.

Effective trade secret, copyright, trademark, domain name and patent protection is expensive to develop and maintain, in terms of initial and ongoing protection measures, registration requirements and the costs of maintaining and defending our rights. Any of our future patents, trademarks or other intellectual property rights may be discovered through third party reverse engineering or careless or departing employees, challenged by others, or invalidated through administrative process or litigation. We may be required to protect our intellectual property, a process that is expensive and may not be successful or which we may not pursue in every jurisdiction. We may, over time, increase our investment in protecting our intellectual property through patent filings that could be expensive and time-consuming. We may be unable to obtain patent protection for the technology covered in our patent applications or the patent protection may not be obtained quickly enough to meet our business needs.

Monitoring unauthorized use of our intellectual property is difficult and costly. Our efforts to protect our proprietary rights may not be adequate to prevent misappropriation of our intellectual property. Further, we may not be able to detect unauthorized use of, or take appropriate steps to enforce, our intellectual property rights. There is also no guarantee that third parties will abide by the terms of our agreements or that we will adequately be able to enforce our contractual rights. Our competitors may also independently develop similar technology without infringing our intellectual property rights. In addition, the laws of many countries do not protect our proprietary rights to as great an extent as the laws of the United States. Moreover, laws in the United States and elsewhere change rapidly, and any future changes could adversely affect us and our intellectual property. Our failure to meaningfully protect our intellectual property could result in competitors offering products that incorporate our most technologically advanced features, which could reduce demand for our products, affect our brand, cause us to incur significant expenses and harm our business.

***We may in the future be sued by third parties for various claims including alleged infringement or appropriation of proprietary rights.***

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The software and internet industries are characterized by the existence of a large number of trade secrets, patents, trademarks and copyrights and by frequent litigation based on allegations of infringement or other violations of intellectual property rights. From time to time, third parties may assert exclusive patent, copyright, trademark and other intellectual property rights against us, demanding license or royalty payments or seeking payment for damages, injunctive relief and other available legal remedies through litigation. Our technologies may be subject to injunction if they are found to infringe the rights of a third-party or we may be required to pay damages, or both. Further, many of our subscription agreements may require us to indemnify our customers for third-party intellectual property infringement claims, which would increase the cost to us of an adverse ruling on such a claim.

The outcome of any claims or litigation, regardless of the merits, is inherently uncertain. Any claims and lawsuits, and the disposition of such claims and lawsuits, whether through settlement or licensing discussions, or litigation, could be time-consuming and expensive to resolve, divert management attention from executing our business plan, result in efforts to enjoin our activities, lead to attempts on the part of other parties to pursue similar claims and, in the case of intellectual property claims, require us to change our technology, change our business practices, pay monetary damages or enter into short- or long-term royalty or licensing agreements.

Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services to others, could be material to our financial condition or cash flows, or both, or could otherwise adversely affect our operating results. In addition, depending on the nature and timing of any such dispute, an unfavorable resolution of a legal matter could materially affect our current or future results of operations or cash flows in a particular quarter.

***Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, misappropriation, violation, and other losses.***

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In some cases our agreements with customers and other third parties include indemnification provisions under which we agree to indemnify them for losses suffered or incurred as a result of claims of intellectual property infringement, misappropriation or violation, damages caused by us to property or persons, or other liabilities relating to or arising from our solution or other contractual obligations. Pursuant to certain agreements, we do not have a cap on our liability and any payments under such agreements would harm our business, financial condition, and results of operations. Although we normally limit our liability with respect to some of these indemnity obligations via contract, we may still incur substantial liability related to them. Any dispute with a customer with respect to such obligations could have adverse effects on our relationship with that customer and other existing customers and new customers and harm our business and results of operations.

**Risks Related to the Company**

***Any inability to attract and retain qualified key management and technical personnel would impair our ability to implement our business plan.***

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Our success depends in large part upon the continued services of our key management, technical and other specialized personnel. The loss of one or more members of our management team or other key employees could delay our growth and development and materially harm our business, financial condition, results of operations and prospects. The relationships that our team have cultivated within the IoT industry make us particularly dependent upon their continued employment or services with us. Because our management team is not obligated to provide us with continued service, they could terminate their employment or services with us at any time without penalty, subject to providing any required advance notice. We do not maintain key person life insurance policies for any members of our management team. The technology industry is subject to substantial and continuous competition for personnel with high levels of experience in designing, developing and managing software and Internet-related services, as well as competition for sales executives and operations personnel. Our future success and growth will depend in large part on our continued ability to attract and retain our technical and management personnel. We face the risk that if we are unable to retain existing personnel, or to attract and integrate qualified new personnel, our business, financial condition and results of operations will be adversely affected.

***Any failure in our delivery of high-quality technical support services may adversely affect our relationships with our customers and our financial results.***

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Our customers depend on our support organization to resolve technical issues relating to our applications. We may be unable to respond quickly enough to accommodate short-term increases in customer demand for support services. Increased customer demand for these services, without corresponding revenues, could increase costs and adversely affect our operating results. In addition, our sales process is highly dependent on our applications and business reputation and on positive recommendations from our existing customers. Any failure to maintain high-quality technical support, or a market perception that we do not maintain high-quality support, could adversely affect our reputation, our ability to sell our service offerings to existing and prospective customers, and our business, operating results and financial position.

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***We have significant customer concentration, with a limited number of customers accounting for a substantial portion of our revenues.***

We derived revenue from one customer, One Step GPS LLC, totaling 40.4%, 22.5% and 33% of our total revenue for the nine months ended September 30, 2025 and years ended December 31, 2024 and 2023, respectively. As of September 30, 2025, December 31, 2024 and December 31, 2023, One Step GPS LLC accounted for a total of 10.9%, 18% and 19% of accounts receivable, respectively.

There are risks whenever a large percentage of total revenues are concentrated with a limited number of customers. It is not possible for us to predict the level of demand for our products and services that will be generated by this customer in the future. In addition, revenues from larger customers may fluctuate from time to time based on their business needs and customer experience, the timing of which may be affected by market conditions or other factors outside of our control. Our larger customers could also potentially pressure us to reduce the prices we charge for our products and services, which could have an adverse effect on our margins and financial position and could negatively affect our revenues and results of operations. If our largest customers terminates its relationship with us, such termination could negatively affect our revenues and results of operations

***We may not be able to successfully implement our growth strategy on a timely basis or at all.***

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Although we are researching and developing new markets and products and improving existing products, our research and market development activities may not prove profitable or ultimately prove successful. As we grow, we will need to expand our internal sales, marketing and distribution capabilities to commercialize our products, or enter into collaborations with third parties to perform these services. If we markets our products directly, we will need to commit significant financial and managerial resources to develop a marketing and sales force with technical expertise and supporting distribution, administration and compliance capabilities. If we rely on third parties with such capabilities to market our products or decide to co-promote products with collaborators, we will need to establish and maintain marketing and distribution arrangements with third parties, and there can be no assurance that we will be able to enter into such arrangements on acceptable terms or at all. In entering into third-party marketing or distribution arrangements, any revenue we receive will depend upon the efforts of the third parties and there can be no assurance that such third parties will establish adequate sales and distribution capabilities or be successful in gaining market acceptance of any product. If we are not successful in commercializing our products, either on our own or through third parties, our business, financial condition and results of operations could be materially adversely affected.

***Changes to United States tariff and import/export regulations may have a negative effect on our Company and, in turn, harm us.***

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The United States has recently enacted and proposed to enact significant new tariffs. Additionally, President Trump has directed various federal agencies to further evaluate key aspects of U.S. trade policy and there has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. There continues to exist significant uncertainty about the future relationship between the U.S. and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

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***Regulations related to conflict minerals may cause us to incur additional expenses and could limit the supply and increase the costs of certain metals used in the manufacturing of our products.***

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We are subject to requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that require us to conduct due diligence on and disclose whether or not our products contain conflict minerals as defined under these provisions. The implementation of these requirements could adversely affect the sourcing, availability, and pricing of the materials used in the manufacture of components used in our IoT devices. In addition, we incur additional costs to comply with the disclosure requirements, including costs related to conducting diligence procedures to determine the sources of minerals that may be used in or necessary for the production of our IoT devices and, if applicable, potential changes to IoT devices, processes, or sources of supply as a consequence of such due diligence activities. It is also possible that we may face reputational harm if we determine that certain of our IoT devices contain minerals not determined to be conflict-free or if we are unable to alter our products, processes, or sources of supply to avoid such materials.

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***We may be unable to compete successfully against existing and future competitors, which could harm our margins and our business.***

The IoT business is intensely competitive. We face competition from a large number of existing companies who have significantly greater financial, technical, manufacturing, marketing and distribution resources as well as greater experience than we have. We believe that the general financial success of companies within the IoT market will continue to attract new competitors to the industry, which has a relatively low barrier to entry in some segments, including large technology companies that could expand their platforms or acquire one of our competitors.

We can provide no assurance that we will be able to compete successfully against current or potential competitors. Many of our current and potential competitors have longer operating histories, better brand recognition and significantly greater financial, technical and marketing resources than we do. Many of these competitors may have well-established relationships with manufacturers and other key strategic partners and can devote substantially more resources to such relationships. As a result, they may be able to secure equipment, technology, products and systems, among other things that we may need, from vendors on more favorable terms, fulfill customer orders or requests more efficiently and adopt more aggressive pricing policies than we can. They also may be able to secure a broader range of technologies, products and systems from or develop close relationships with primary vendors. Some competitors may price their products, services, capabilities and systems below cost in an attempt to gain market share.

Increased competition may result in price reductions, reduced gross margin and loss of market share, any of which could harm our business and adversely affect our operating results and financial condition. We may not be able to compete successfully and respond to competitive pressures. Our inability to compete effectively with current or future competitors could harm our business and have a material adverse effect on our results of operations and financial condition.

**Risks Related to our Dependence on Third Parties**

***We rely on third-party manufacturers and suppliers to produce key product components, and shortages, delays and interruptions in supply could impair the delivery of our products and services and harm our business.***

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We rely on third parties to supply key components used in our products. We do not own manufacturing facilities or supply sources for such components and materials. There can be no assurance that our supply of materials will not be limited, interrupted, restricted in certain geographic regions or of satisfactory quality or continue to be available at acceptable prices. In particular, any replacement of our manufacturers could require significant effort and expertise because there may be a limited number of qualified manufacturers. Any shortage or delay in the supply of key product components would harm our ability to meet scheduled product deliveries. Many of the components used in our products are specifically designed for use in our products, some of which are obtained from sole source suppliers. If demand for a specific component increases, we may not be able to obtain an adequate quantity of that component in a timely manner. Other factors that may affect our suppliers' ability or willingness to supply components to us include internal management or reorganizational issues, such as roll-out of new equipment which may delay or disrupt supply of previously forecasted components, or industry consolidation and divestitures, which may result in changed business and product priorities among certain suppliers. It could be difficult, costly and time consuming to obtain alternative sources for these components, or to change product designs to make use of alternative components. In addition, difficulties in transitioning from an existing supplier to a new supplier could create delays in component availability that would have a significant impact on our ability to fulfill orders for our products. We may be forced to enter into an agreement with another third party, which we may not be able to do on reasonable terms, if at all. In some cases, the technical skills or technology required to manufacture our product components may be unique or proprietary to the original manufacturer and it may have difficulty, or there may be contractual restrictions prohibiting us from transferring such skills or technology to another third party and a feasible alternative may not exist.

If we are unable to obtain a sufficient supply of components, or if we experience any interruption in the supply of components, or if our suppliers or manufacturers fail to perform their obligations to us in relation to quality, timing or otherwise, our cost of obtaining these components may increase. Component shortages and delays affect our ability to meet scheduled product deliveries, may damage our brand and reputation in the market, and cause us to lose sales and market share. At times, we may elect to use more expensive transportation methods, such as air freight, to make up for manufacturing delays caused by component shortages, which may affect our ability to supply products within budget and reduce our margins. In addition, at times sole suppliers of highly specialized components may provide components that are either defective or do not meet the criteria required by our customers, distributors or other channel partners, resulting in delays, lost revenue opportunities and material write-offs.

***We rely on third parties for technologies that are vital to the functionality of our products and the loss of these relationships could harm our business.***

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We rely on third parties to obtain non-exclusive patented hardware and software license rights in technologies that are incorporated into and necessary for the operation and functionality of most of our products. In these cases, because the intellectual property we license is available from third parties, barriers to entry into certain markets may be lower for potential or existing competitors than if we owned exclusive rights to the technology that we license and use. Moreover, if a competitor or potential competitor enters into an exclusive arrangement with any of our key third-party technology providers, or if any of these providers unilaterally decides not to do business with us for any reason, our ability to develop and sell products containing that technology would be severely limited.

***If third-party developers and providers do not continue to embrace our service model and enterprise cloud computing services, or if our customers seek warranties from us for third-party applications, integrations, data and content, our business could be harmed.***

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A core part of our enterprise solutions is the interoperability of our platform with third-party IoT products and protocols. Our success depends on the willingness of a growing community of third-party developers and technology providers to build applications and provide integrations, data and content that are complementary to our services. Without the continued development of these applications and provision of such integrations, data and content, both current and potential customers may not find our services sufficiently attractive, which could impact future sales. Further, if these third parties were to alter their products, applications and content, we could be adversely impacted if we fail to timely create compatible versions of our products and solutions. A lack of interoperability may also result in significant redesign costs, and harm relations with our customers. Further, the mere announcement of an incompatibility problem relating to our products could materially adversely affect our business, results of operations and financial condition.

To the extent our competitors supply products that compete with ours, it is possible these competitors could design their technologies to be closed or proprietary systems that are incompatible or work less effectively with our products. As a result, end-users may have an incentive to purchase products that are compatible with the products and technologies of our competitors over our products.

In addition, for those customers who authorize a third-party technology partner access to their data, we do not provide any warranty related to the functionality, security and integrity of the data transmission or processing. Despite contract provisions to protect us, customers may look to us to support and provide warranties for the third-party applications, integrations, data and content, even though not developed or sold by us, which may expose us to potential claims, liabilities and obligations, all of which could harm our business.

***Our ability to deliver our services is dependent on the development and maintenance of the infrastructure of the Internet by third parties.***

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The Internet's infrastructure is comprised of many different networks and services that are highly fragmented and distributed by design. This infrastructure is run by a series of independent third-party organizations that work together to provide the infrastructure and supporting services of the Internet under the governance of the Internet Corporation for Assigned Numbers and Names (ICANN) and the Internet Assigned Numbers Authority (IANA), now under the stewardship of ICANN. The Internet has experienced a variety of outages and other delays as a result of damages to portions of its infrastructure, denial-of-service attacks or related cyber incidents, and it could face outages and delays in the future. These outages and delays could reduce the level of Internet usage or result in fragmentation of the Internet, resulting in multiple separate Internets. These scenarios are not under our control and could reduce the availability of the Internet to us or our customers for delivery of our Internet-based services. Any resulting interruptions in our services or the ability of our customers to access our services could result in a loss of potential or existing customers and harm our business.

***Any interruptions or delays in services from third-parties, including data center hosting facilities, cloud computing platform providers and other hardware and software vendors, or our inability to adequately plan for and manage service interruptions or infrastructure capacity requirements, could impair the delivery of our services and harm our business.***

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We currently serve our customers from third-party data center hosting facilities and cloud computing platform providers located in the United States and other countries. We also rely on computer hardware purchased or leased from, software licensed from, and cloud computing platforms provided by, third parties in order to offer our services, including database software, hardware and data from a variety of vendors. Any damage to, or failure of our systems generally, including the systems of our third-party platform providers, could result in interruptions in our services. As we increase our reliance on these third-party systems, our exposure to damage from service interruptions may increase. Interruptions in our services may cause us to issue credits or pay penalties, cause customers to make warranty or other claims against us or to terminate their subscriptions and adversely affect our attrition rates and our ability to attract new customers, all of which would reduce our revenue. Our business would also be harmed if our customers and potential customers believe our services are unreliable.

These hardware, software, data and cloud computing platforms may not continue to be available at reasonable prices, on commercially reasonable terms or at all. Any loss of the right to use any of these hardware, software or cloud computing platforms could significantly increase our expenses and otherwise result in delays in the provisioning of our services until equivalent technology is either developed by us, or, if available, is identified, obtained through purchase or license and integrated into our services. If we do not accurately plan for our infrastructure capacity requirements and we experience significant strains on our data center capacity, our customers could experience performance degradation or service outages that may subject us to financial liabilities, result in customer losses and harm our business. As we add data centers and capacity and continue to move to cloud computing platform providers, we may move or transfer our data and our customers' data. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of our services, which may damage our business.

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***We may face fines, penalties, or other costs, either directly or vicariously, if any of our partners, resellers, contractors, vendors or other third parties fail to adhere to their compliance obligations under our policies and applicable law.***

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We use a number of third parties to perform services or act on our behalf in areas like sales, network infrastructure, administration, research, and marketing. It may be the case that one or more of those third parties fail to adhere to our policies or violate applicable federal, state, local, and international laws, including but not limited to, those related to corruption, bribery, economic sanctions, and export/import controls. Despite the significant efforts in asserting and maintaining control and compliance by these third parties, we may be held fully liable for third parties' actions as fully as if they were a direct employee of ours. Such liabilities may create harm to our reputation, inhibit our plans for expansion, or lead to extensive liability either to private parties or government regulators, which could adversely impact our business, financial condition, and results of operations.

**Risks Related to this Offering and Ownership of Our Common Stock**

***An active, liquid trading market for our common stock does not currently exist and may not develop after this offering, and as a result, you may not be able to sell your common stock at or above the public offering price, or at all.***

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Prior to this offering, shares of our common stock were quoted on the OTC Markets Group, Inc. OTCQX Marketplace under the symbol "DCSX," the CSE under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." Trading on the OTCQX marketplace, CSE and the Frankfurt Stock Exchange has been infrequent and in limited volume. Although we intend to apply to list our shares of Class A common stock on NYSE American in connection with this offering, an active trading market for shares of our common stock may never develop or be sustained following this offering. If an active trading market does not develop, you may have difficulty selling your shares of common stock at an attractive price, or at all. The public offering price for our common stock will be determined by negotiations between us and the representatives of the underwriters and may not be indicative of prices that will prevail in the open market following this offering. Consequently, you may not be able to sell your common stock at or above the public offering price or at any other price or at the time that you would like to sell. An inactive market may also impair our ability to raise capital by selling our common stock and may impair our ability to expand our business by using our common stock as consideration in an acquisition.

***Our dual-class voting structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A common stock may view as beneficial.***

Upon shareholder approval at our annual general meeting to be held on December 8, 2025, (i) our authorized capital stock will consist of 500,000,000 shares of Class A common stock, par value $0.00001 per share, and 500,000,000 shares of Class B common stock, par value $0.00001 per share, (ii) all 2,487,222 shares of our currently issued and outstanding common stock will be designated as Class A common stock, and (iii) Mike Yao Zhou, our director, will receive a one-time right to elect to convert 571 shares of Class A common stock owned directly by him and 528,571 Class A common stock owned indirectly by him into Class B shares on a one-for-one basis, which Mr. Zhou plans to exercise upon the completion of this offering. Upon consummation of this offering, Mr. Zhou will beneficially own all shares of our issued and outstanding Class B common stock. Holders of Class A common stock and Class B common stock will have the same rights except for voting, conversion, and transfer rights. See "Description of Capital Stock" for more details.

Upon (i) our company successfully raising aggregate financing of not less than $10,000,000 and (ii) the shares of our Class A common stock being approved for listing on the NYSE American LLC or NASDAQ and commencing trading on such exchange (collectively, the "Sunrise Conditions"), each share of Class B common stock will be entitled to 20 votes. Prior to the satisfaction of the Sunrise Conditions, each share of Class B common stock will be entitled to one vote. Assuming the satisfaction of the Sunrise Conditions, the Class B common stock held by Mr. Zhou will constitute approximately [ ]% of our total issued and outstanding shares and [ ] % of the aggregate voting power of our total issued and outstanding shares immediately after this offering, assuming that the underwriters do not exercise their option to purchase additional shares. As such, holders of our Class B common stock will have considerable influence over matters requiring shareholder approval, such as electing directors and approving material mergers, acquisitions or other business combination transactions. This concentration of ownership will limit your ability to influence corporate matters and may discourage, delay or prevent a change of control of our company that holders of Class A common stock may view as beneficial, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for their shares as part of a sale of our company and may reduce the price of our Class A common stock.

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***Our dual-class voting structure may render our Class A common stock ineligible for inclusion in certain stock market indices, and thus adversely affect the trading price and liquidity of our Class A common stock.***

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Certain index providers have announced restrictions on including companies with multi-class share structures in certain of their indices. As a result, our dual-class voting structure may prevent the inclusion of our Class A common stock in such indices, which could adversely affect the trading price and liquidity of our Class A common stock.

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***We may terminate our listing on the Canadian stock exchange in connection with our proposed listing on NYSE American, which could adversely affect the liquidity and market price of our securities.***

In connection with our NYSE American listing, we may elect to voluntarily delist from the CSE either prior to or following our NYSE American listing. Delisting from the CSE would reduce the number of trading venues for our securities, which may adversely affect the liquidity of our shares. Reduced liquidity may impair the ability of shareholders to buy or sell our Class A common stock at the desired time or price.

Moreover, the termination of our Canadian listing could affect the investment decisions of certain existing shareholders who are subject to investment mandates or preferences for securities listed on Canadian exchanges, potentially resulting in increased selling pressure. Additionally, delisting may negatively affect our visibility and brand recognition in the Canadian capital markets, and we may no longer qualify for certain indices or benefit from analyst coverage in Canada.

There is no assurance that our NYSE American listing will provide sufficient replacement liquidity or market support to offset the effects of delisting from the CSE. As a result, the market price of our securities and our overall access to capital could be negatively impacted.

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***The market price of our common stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell your securities at or above the public offering price.***

The market price of equity securities of technology companies has historically experienced high levels of volatility. If you purchase securities in this offering, you may not be able to resell those securities at or above the public offering price. Following the completion of this offering, the market price of our common stock may fluctuate significantly in response to numerous factors, some of which are beyond our control and may not be related to our operating performance, including:

● announcements of new offerings, products, services or technologies, commercial relationships, acquisitions or other events by us or our competitors;

● price and volume fluctuations in the overall stock market from time to time;

● significant volatility in the market price and trading volume of technology companies in general and of companies in the digital advertising industry in particular;

● fluctuations in the trading volume of our shares or the size of our public float;

● actual or anticipated changes or fluctuations in our operating results;

● whether our operating results meet the expectations of securities analysts or investors;

● actual or anticipated changes in the expectations of investors or securities analysts;

● litigation involving us, our industry, or both;

● regulatory developments in the United States, foreign countries, or both;

● general economic conditions and trends;

● major catastrophic events;

● lockup releases or sales of large blocks of our common stock;

● departures of key employees; or

● an adverse impact on the company from any of the other risks cited in this prospectus.

In addition, if the stock market for technology companies, or the stock market generally, experiences a loss of investor confidence, the trading price of our common stock could decline for reasons unrelated to our business, operating results or financial condition. Stock prices of many technology companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. The trading price of our common stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly affect us. In the past, stockholders have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our business.

***You may be diluted by future issuances of common stock in connection with our incentive plans, acquisitions or otherwise; future sales of such shares in the public market, or the expectations that such sales may occur, could lower our stock price.***

Our amended and restated certificate of incorporation, as amended ("certificate of incorporation") authorizes us to issue shares of our common stock for the consideration and on the terms and conditions established by our Board in its sole discretion. We could issue a significant number of shares of common stock in the future in connection with investments or acquisitions. Any of these issuances could dilute our existing stockholders, and such dilution could be significant. Moreover, such dilution could have a material adverse effect on the market price for the shares of our common stock.

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***A significant number of our total outstanding shares are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is doing well.***

Subject to certain exceptions, without the prior written consent of Chaince Securities, LLC and Revere Securities LLC, as representatives of the underwriters, we, during the period ending three months after the closing of this offering, and our officers and directors, and our 5% or greater stockholders, during the period ending six months after the closing of this offering, have agreed not to: (1) offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any shares of common stock or any securities convertible into, exchangeable for or that represent the right to receive shares of common stock; (2) file or cause to be filed any registration statement with the SEC relating to the offering of any shares of common stock or any securities convertible into or exercisable or exchangeable for common stock; or (3) enter into any swap or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of common stock, subject to certain exceptions. Chaince Securities, LLC and Revere Securities LLC, in their sole discretion, may release the common stock and other securities subject to the lock-up agreements described above in whole or in part at any time with or without notice. See "Underwriting."

The market price of our common stock may decline significantly when the restrictions on resale by our existing stockholders lapse. A decline in the market price of our common stock might impede our ability to raise capital through the issuance of additional shares of common stock or other equity securities.

***You will incur immediate dilution in the net tangible book value of the shares you purchase in this offering.***

The public offering price of our common stock will be higher than the net tangible book value per share of outstanding common stock prior to completion of this offering. Based on our net tangible book value as of September 30, 2025 and upon the issuance and sale of shares of common stock by us at the assumed public offering price of $[ ] per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, if you purchase our common stock in this offering, you will suffer immediate dilution of approximately $[ ] per share in net tangible book value. Dilution is the amount by which the offering price paid by purchasers of our common stock in this offering will exceed the as adjusted net tangible book value per share of our common stock upon completion of this offering. If the underwriters exercise their option to purchase additional shares, you will experience future dilution. As of September 30, 2025, there were 448,929 shares of common stock available for issuance under the 2023 Stock Plan. You may experience additional dilution upon future equity issuances or the exercise of stock options to purchase common stock granted to our directors, officers and employees under our current and future stock-based compensation plans, including our 2023 Stock Plan.

***We are selling a substantial number of shares of our common stock in this offering, which could cause the price of our common stock to decline.***

In this offering, we will sell up to [ ] shares of Class A common stock (assuming no exercise by the underwriters of their over-allotment option). The existence of the potential additional shares of our common stock in the public market, or the perception that such additional shares may be in the market, could adversely affect the price of our common stock. We cannot predict the effect, if any, that market sales of those shares of common stock or the availability of those shares of common stock for sale will have on the market price of our common stock.

***We have broad discretion in how we use the proceeds of this offering and may not use these proceeds effectively, which could affect our results of operations and cause our stock price to decline.***

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We will have considerable discretion in the application of the net proceeds of this offering. Because of the number and variability of factors that will determine our use of the net proceeds, their ultimate use may vary substantially from their currently intended use. Management might not apply our net proceeds in ways that ultimately increase the value of your investment. While we expect to use the net proceeds from this offering as set forth in "Use of Proceeds," we are not obligated to do so. As a result, investors will be relying upon management's judgment with only limited information about our specific intentions for the use of the balance of the net proceeds of this offering. We may use the net proceeds for purposes that do not yield a significant return or any return at all for our stockholders. In addition, pending their use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value.

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***We do not anticipate paying any cash dividends on our common stock in the foreseeable future.***

We currently intend to retain our future earnings, if any, for the foreseeable future, to repay indebtedness and to fund the development and growth of our business. We do not intend to pay any dividends to holders of our common stock in the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of our Board taking into account various factors, including our business, operating results and financial condition, current and anticipated cash needs, plans for expansion, any legal or contractual limitations on our ability to pay dividends under our loan agreements or otherwise. As a result, if our Board does not declare and pay dividends, the capital appreciation in the price of our common stock, if any, will be your only source of gain on an investment in shares of our common stock, and you may have to sell some or all of your common stock to generate cash flow from your investment.

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***If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our common stock, its trading price and volume could decline.***

We expect the trading market for our common stock to be influenced by the research and reports that industry or securities analysts publish about us, our business or our industry. As a new public company, we do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our company, the trading price for our stock may be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline and our common stock to be less liquid. Moreover, if one or more of the analysts who cover us downgrades our stock or publishes inaccurate or unfavorable research about our business, or if our results of operations do not meet their expectations, our stock price could decline.

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***We are an "emerging growth company" and our compliance with the reduced reporting and disclosure requirements applicable to "emerging growth companies" may make our common stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and we have elected to take advantage of certain exemptions and relief from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." These provisions include, but are not limited to: being permitted to have only two years of audited financial statements and only two years of related selected financial data and management's discussion and analysis of financial condition, and results of operations disclosures; being exempt from compliance with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act; being exempt from any rules that could be adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotations or a supplement to the auditor's report on financial statements; being subject to reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and not being required to hold nonbinding advisory votes on executive compensation or on any golden parachute payments not previously approved.

In addition, while we are an "emerging growth company," we will not be required to comply with any new financial accounting standard until such standard is generally applicable to private companies. As a result, our financial statements may not be comparable to companies that are not "emerging growth companies" or elect not to avail themselves of this provision.

We may remain an "emerging growth company" until as late as the fiscal year-end following the fifth anniversary of the completion of this public offering, though we may cease to be an "emerging growth company" earlier under certain circumstances, including if (i) we have more than $1.235 billion in annual revenue in any fiscal year, (ii) we become a "large accelerated filer," with at least $700 million of equity securities held by non-affiliates as of the end of the second quarter of that fiscal year or (iii) we issue more than $1.0 billion of non-convertible debt over a three-year period.

The exact implications of the JOBS Act are still subject to interpretations and guidance by the SEC and other regulatory agencies, and we cannot assure you that we will be able to take advantage of all of the benefits of the JOBS Act. In addition, investors may find our common stock less attractive to the extent we rely on the exemptions and relief granted by the JOBS Act. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may decline or become more volatile.

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***The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain executive management and qualified board members.***

As a result of this offering, we will become subject to the reporting requirements of the Exchange Act, as amended, the Sarbanes-Oxley Act, the Dodd-Frank Act, and other applicable securities rules and regulations. Compliance with these rules and regulations involves significant legal and financial compliance costs, may make some activities more difficult, time-consuming or costly and may increase demand for our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and operating results. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. To maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management's attention may be diverted from other business concerns, which could adversely affect our business and operating results. We may need to hire more employees in the future or engage outside consultants, which will increase our costs and expenses.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely affected.

***We may be subject to additional regulatory burdens resulting from our public listing.***

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We are working with our legal, accounting and financial advisors to identify those areas in which changes should be made to our financial management control systems to manage our obligations as a public company listed on NYSE American. These areas include corporate governance, corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue to make, changes in these and other areas, including our internal controls over financial reporting. However, we cannot assure holders of our common stock that these and other measures that we might take will be sufficient to allow us to satisfy our obligations as a public company listed on NYSE American on a timely basis. In addition, compliance with reporting and other requirements applicable to public companies listed on NYSE American will create additional costs for us and will require the time and attention of management. We cannot predict the amount of additional costs that we might incur, the timing of such costs or the impact that management's attention to these matters will have on our business.

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***We have identified two material weaknesses in our internal control over financial reporting. If we do not adequately remediate the material weaknesses, or if we experience additional material weaknesses in the future or otherwise fail to maintain effective internal controls, we may be unable to accurately or timely report our results of operations or prevent fraud, and investor confidence and the market price of our Class A common stock may be materially and adversely affected.***

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Our management has not completed an assessment of the effectiveness of our internal controls over financial reporting, and our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting. In the course of preparing our consolidated financial statements, we identified two material weaknesses in our internal control over financial reporting. 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 company's annual or interim financial statements will not be prevented or detected on a timely basis. The material weaknesses that have been identified are (i) a lack of internal control to verify that reports generated across various accounting modules had been reconciled to trial balances for the purpose of financial reporting; and (ii) a lack of internal control to ensure that work in process and build assemblies were included in the inventory reserve analysis at financial reporting dates.

We intend to implement measures designed to improve our internal control over financial reporting to address the underlying causes of these issues, including hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework. However, the implementation of these measures may not fully address the weaknesses, and we cannot conclude that they have been fully remediated. Our failure to remediate these weaknesses or our failure to discover and address any other material weaknesses could result in inaccuracies in our consolidated financial statements and impair our ability to comply with applicable financial reporting requirements and related regulatory requirements. Neither we nor our independent registered public accounting firm undertook a comprehensive assessment of our internal control for purposes of identifying and reporting material weaknesses. Had we performed a formal assessment of our internal control over financial reporting or had our independent registered public accounting firm performed an audit of our internal control over financial reporting, additional material weaknesses may have been identified. Our failure to implement and maintain effective internal controls over financial reporting could result in errors in our financial statements that could result in a restatement of our financial statements, cause us to fail to meet our reporting obligations and cause investors to lose confidence in our reported financial information, which may result in volatility in and a decline in the market price of our Class A ordinary shares.

Upon completion of this offering, we will become a public company in the U.S. subject to the Sarbanes-Oxley Act of 2002. Section 404 of the Sarbanes-Oxley Act of 2002 will require that we include a report of management on our internal control over financial reporting in our annual report on 10-K. In addition, once we cease to be an "emerging growth company," as such term is defined in the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting. Our management may conclude that our internal control over financial reporting is not effective. Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified, if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated, or reviewed, or if it interprets the relevant requirements differently from us. In addition, after we become a public company, our reporting obligations may place a significant strain on our management, operational, and financial resources and systems for the foreseeable future. We may be unable to complete our evaluation testing and any required remediation in a timely manner.

***If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.***

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Following this offering, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the rules and regulations of the applicable listing standards of NYSE American. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting, and financial compliance costs, make some activities more difficult, time-consuming, and costly, and place significant strain on our personnel, systems, and resources.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended, and anticipate that we will continue to expend significant resources, including accounting-related costs, and significant management oversight.

Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business. Further, weaknesses in our disclosure controls and internal control over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm our results of operations or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting also could adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the trading price of our common stock. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on NYSE American. We are not currently required to comply with the SEC rules that implement Section 404 of the Sarbanes-Oxley Act and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. As a public company, we will be required to provide an annual management report on the effectiveness of our internal control over financial reporting as part of our second annual report on Form 10-K.

Our independent registered public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting until after we are no longer an "emerging growth company" as defined in the JOBS Act. At such times, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed, or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could materially and adversely affect our business, financial condition, and results of operations and could cause a decline in the trading price of our common stock.

***Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management or hinder efforts to acquire a controlling interest in us, and the market price of our common stock may be lower as a result.***

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There are provisions in our certificate of incorporation and bylaws that may make it difficult for a third party to acquire, or attempt to acquire, control of our company, even if a change in control was considered favorable by our stockholders. Such provisions include:

● our certificate of incorporation and amended and restated bylaws authorizes only our board of directors to fill vacant directorships, including newly created seats, and the number of directors constituting our board of directors will be permitted to be set only by a resolution adopted by a majority vote of our entire board of directors;

● a prohibition on stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our stockholders;

● a special meeting of our stockholders may only be called by the chairperson of our board of directors, our Chief Executive Officer, or a majority of our board of directors;

● our certificate of incorporation does not provide for cumulative voting;

● certain litigation against us can only be brought in Delaware; and

● advance notice procedures apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders.

In addition, as a Delaware corporation, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which prohibit a person who owns 15% or more of our outstanding voting stock from merging or combining with us for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is approved in a prescribed manner. Any provision in our certificate of incorporation or our bylaws or Delaware law that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our common stock and could also affect the price that some investors are willing to pay for our common stock.

***Our certificate of incorporation includes an exclusive forum clause, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us.***

This choice of forum provision may limit a stockholder's ability to bring a claim in other judicial forums for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees in jurisdictions other than Delaware, or federal courts, in the case of claims arising under the Securities Act. Alternatively, if a court were to find the choice of forum provision contained in our certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could have a material adverse effect on our business, financial condition or results of operations.

Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have notice of and consented to the foregoing provisions. The exclusive forum clause may limit our stockholders' ability to obtain a favorable judicial forum for disputes with us. See the section entitled "Description of Capital Stock— Choice of Forum for Certain Lawsuits."

***Investors may face greater difficulty enforcing judgments against certain of our directors and officers because they reside outside the United States.***

Among our five directors, three reside in Canada and one resides in People's Republic of China. In addition, both our Chief Executive Officer and Chief Financial Officer reside in Canada. As a result, investors may not be able to effect service of process within the United States upon these persons or enforce against them in U.S. courts, judgments predicated on U.S. securities laws. Likewise, it may also be difficult for an investor to enforce in U.S. courts, judgments obtained against these persons in courts located in jurisdictions outside of the United States.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements." All statements other than statements of historical facts contained in this prospectus may be forward-looking statements. These forward-looking statements can generally be identified using forward-looking terminology, including the terms "believes," "estimates," "continues," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," "would" or "should" or, in each case, their negative or other variations or comparable terminology. Such statements are not guarantees of future performance and involve several assumptions, risks and uncertainties that could cause actual results to differ materially from expected results. They appear in several places throughout this prospectus, and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies, future acquisitions and the industry in which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the "Risk Factors" section of this prospectus, which include, but are not limited to, risks related to the following:

● The development of our products and services will require significant capital resources;

● Limited operating history on which to judge our business prospects and management;

● Our ability to gain market acceptance of our products and services;

● Our ability to protect our intellectual property and to develop, maintain and enhance a strong brand;

● Our ability to compete and succeed in a highly competitive and evolving industry;

● Our industry's ability to manage the threat of security breaches and data theft on connected devices;

● Our reliance on third parties to produce key product components and provide industry and technology solutions;

● Our ability to raise capital and the availability of future financing;

● The impact of sustained adverse market events, such as increased tariffs, on our and our customers' business operation;

● Our ability to manage our research, development, expansion, growth and operating expenses;

● The failure of an active public market for our common stock to develop;

● Volatility in the price of our common stock;

● Future sales of our common stock, or the perception in public markets that these sales may occur;

● The fact that we have no expectations of paying any cash dividends for the foreseeable future;

● Securities or industry analysts do not publish research or publish inaccurate or unfavorable research about us or our business;

● Other risks, uncertainties and factors set forth in this prospectus, including those set forth under "Risk Factors," Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business."

These factors should not be construed as exhaustive and should be read with the other cautionary statements in this prospectus.

Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by the forward-looking statements contained in this prospectus. The matters summarized under "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business" and elsewhere in this prospectus could cause our actual results to differ significantly from those contained in our forward-looking statements. In addition, even if our results of operations, financial condition and liquidity, and industry developments are consistent with the forward-looking statements contained in this prospectus, those results or developments may not be indicative of results or developments in subsequent periods.

Considering these risks and uncertainties, we caution you not to place undue reliance on these forward-looking statements. Any forward-looking statement that we make in this prospectus speaks only as of the date of such a statement, and we undertake no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments, except as required by applicable law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

**USE OF PROCEEDS**

Assuming a public offering price of $[ ] per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, we estimate that the net proceeds to us from the sale of our common stock in this offering will be $[ ] (or $[ ] if the underwriters exercise their over-allotment option in full), after deducting underwriting discounts and commissions and the estimated offering expenses payable by us.

Each $1.00 increase (decrease) in the assumed public offering price would increase (decrease) the net proceeds to us from this offering by approximately $[ ] (or $[ ] if the underwriters exercise their over-allotment option in full), assuming the number of shares we sell, as set forth on the cover page of this prospectus, remains the same, after deducting underwriting discounts and commissions and the estimated offering expenses payable by us.

The principal purposes of this offering are to increase our capitalization and financial flexibility, list our common stock on NYSE American and facilitate our future access to the capital markets. We intend to use the net proceeds from this offering for working capital and other general corporate purposes, including potential increases in our staffing, marketing and inventory and expenditures related to research and development, as follows:

● approximately $[ ] for increases in marketing;

● approximately $[ ] for increase in inventory;

● approximately $[ ] for increases in our staffing;

● approximately $[ ] for expenditures related to research and development;

● approximately $[ ] for repayment of loans;

● approximately $[ ] for expenditures related to expand and enhance our global strategic partnerships; and

● approximately $[ ] for working capital reserves.

We do not currently have a specific plan for a significant portion of the remaining net proceeds. As of the date of this prospectus, we cannot specify with certainty all of the particular uses of the net proceeds that we receive from this offering and, as a result, are not able to allocate the net proceeds among any potential uses at this time in light of the variety of factors that will impact how we ultimately utilize such net proceeds. Accordingly, we will have broad discretion in using these proceeds. See "Risk Factors—Risks Related to this Offering and Ownership of Our Common Stock—We have broad discretion in how we use the proceeds of this offering and may not use these proceeds effectively, which could affect our results of operations and cause our stock price to decline." We may also use a portion of the net proceeds of this offering for the potential future acquisitions of, or investments in, technologies or businesses that complement our business, although we have no present commitments or agreements to enter into any such acquisitions or make any such investments.

The timing and amount of our actual expenditure will be based on many factors, including cash flows from operations and the anticipated growth of our business. Pending their use, we intend to invest the net proceeds of this offering in a variety of capital-preservation investments, including short- and intermediate-term, interest-bearing, investment-grade securities.

**MARKET FOR OUR COMMON STOCK AND RELATED MATTERS**

Our common stock is presently quoted on the OTCQX under the symbol "DCSX," the CSE under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." We have applied to have our common stock listed on NYSE American under the symbol "DCSX". No assurance can be given that our application will be approved. If our application is not approved, we will not complete this offering.

As of the date of this prospectus, there were 118 holders of record of our common stock.

**DIVIDEND POLICY**

Since our inception, we have not paid any dividends on our common stock, and we currently expect that, for the foreseeable future, all earnings, if any, will be retained for use in the development and operation of our business. In the future, our Board may decide, at its discretion, whether dividends may be declared and paid to holders of our common stock.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and capitalization as of September 30, 2025:

● on an actual basis; and

● on an as adjusted basis, giving effect to (i) the sale and issuance by us of [ ] shares of Class A common stock in this offering, based upon an initial public offering price of $[ ] per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us and (ii) the conversion of $[ ] outstanding under a convertible note into [ ] shares of common stock.

This table should be read in conjunction with, and is qualified in its entirety by reference to, "Summary Historical Consolidated Financial Data," "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes appearing elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **As of<br> September 30, 2025** | **As of<br> September 30, 2025** |
|  | **Actual** | **As<br> Adjusted<sup>(1)</sup>** |
| Cash | $487401 |  |
| Current debt | 7046620 |  |
| Credit facility | 290413 |  |
| Long-term debt | 487719 |  |
| Stockholders' equity (deficit): |  |  |
| Common stock, with a par value of $0.00001; 5,714,286 shares authorized; 2,305,079 and [ ] shares issued and outstanding at December 31, 2024 and as adjusted, respectively | 61 |  |
| Additional paid in capital | 9110556 |  |
| Accumulated other comprehensive (loss) income |  |  |
| Accumulated deficit | (17694883) |  |
| Total stockholders' equity (deficit) | (8584266) |  |
| Total Capitalization | $(759514) |  |

---

Each $1.00 increase (decrease) in the assumed public offering price of $[ ] per share would increase (decrease) the as adjusted amount of each of cash and cash equivalents, working capital, total assets and total stockholders' equity by approximately $[ ], assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of 100,000 shares in the number of shares offered by us at the assumed public offering price of $[ ] per share would increase (decrease) the as adjusted amount of each of cash and cash equivalents, working capital, total assets and total stockholders' equity by approximately $[ ].

(1) Unless
we indicate otherwise, all information in this section entitled "Capitalization":

● assumes no exercise by the underwriters of their over-allotment option;

● assumes no exercise of the warrants to be issued to the representatives of the underwriters in this offering;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding options at a weighted exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of convertible debentures, assuming an offering price of [ ] per share, the midpoint of the price range on the cover of this prospectus; and

● excludes [ ] shares of Class A common stock reserved for future issuance under our 2023 Stock Plan, as well as any automatic increases in the shares of common stock reserved for future issuance under the 2023 Stock Plan.

**DILUTION**

If you invest in shares of our Class A common stock in this offering, your interest will be diluted to the extent of the difference between the public offering price per share of our common stock and the as adjusted net tangible book value per share of our common stock immediately after the closing of this offering.

Our historic net tangible book value of our common stock as of September 30, 2025 was approximately $[ ], or $[ ] per share, based on the number of shares of our common stock outstanding as of September 30, 2025. Historic net tangible book value per share represents our total tangible assets less our total liabilities, divided by the number of outstanding shares of common stock.

After giving effect to (i) the receipt of the net proceeds from our sale of [ ] shares of common stock in this offering at an assumed public offering price of $[ ] per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, after deducting underwriting discount and estimated offering expenses payable by us, and (iii) the conversion of $[ ] outstanding under convertible debentures into [ ] shares of our common stock, our as adjusted net tangible book value as of September 30, 2025, would have been [ ], or $[ ] per share. This represents an immediate increase in as adjusted net tangible book value of [ ] per share to our existing stockholders and an immediate dilution of $[ ] per share to investors purchasing securities in this offering.

We calculate dilution per share to new investors by subtracting the historic net tangible book value per share from the public offering price per share paid by the new investor. The following table illustrates the dilution to new investors on a per share basis:

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| | | |
|:---|:---|:---|
| Assumed public offering price |  | $|
| Historic net tangible book value per share as of September 30, 2025 | $) |  |
| Increase in net tangible book value per share attributable to new investors in this offering | $— |  |
| As adjusted net tangible book value per share after this offering |  | $|
| Dilution in net tangible book value per share to new investors in this offering |  | $|

---

If the underwriters' option to purchase additional shares to cover over-allotments is exercised in full, the as adjusted net tangible book value per share after giving effect to this offering would be $[ ] per share, representing an immediate increase to existing stockholders in net tangible book value from historical net tangible book value of $[ ] per share, and immediate dilution to new investors in this offering of $[ ] per share.

Each $1.00 increase or decrease in the public offering price, would increase or decrease, as applicable, our as adjusted net tangible book value per share by $[ ] per share, and would increase or decrease, as applicable, dilution per share to new investors in this offering by $[ ] per share, assuming that the number of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or decrease of 100,000 in the number of shares of common stock offered by us would increase or decrease, as applicable, our as adjusted net tangible book value per share by approximately $[ ] per share and increase or decrease, as applicable, the dilution to new investors by $[ ] per share, assuming the public offering price remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The following table summarizes, on an as adjusted basis as of September 30, 2025, the differences between the number of shares of common stock purchased from us, the total cash consideration and the average price per share paid to us by existing stockholders and by new investors purchasing shares in this offering at the assumed initial public offering price of $[ ] per share, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As the table shows, new investors purchasing shares of common stock in this offering will pay an average price per share substantially higher than our existing investors paid.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Average<br> Price Per**<br>**Share** |
| Existing stockholders |  |  |  |  |  |
| New investors participating in this offering |  |  |  |  |  |

---

If the underwriters exercise their option to purchase additional shares in full, the number of shares of common stock held by existing stockholders will be reduced to [ ]% of the total number of shares of common stock to be outstanding after this offering, and the number of shares of common stock held by investors participating in this offering will be further increased to [ ]% of the number of shares to be outstanding after this offering.

The tables and calculations above are based on [ ] shares of our common stock outstanding as of September 30, 2025 on an actual basis and exclude:

● assumes no exercise by the underwriters of their over-allotment option;

● assumes no exercise of the warrants to be issued to the representatives of the underwriters in this offering;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding options at a weighted exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $[ ] per share;

● excludes [ ] shares of Class A common stock issuable upon the exercise of convertible debentures, assuming an offering price of [ ] per share, the midpoint of the price range on the cover of this prospectus; and

● excludes [ ] shares of Class A common stock reserved for future issuance under our 2023 Stock Plan, as well as any automatic increases in the shares of common stock reserved for future issuance under the 2023 Stock Plan.

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

**OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our results of operations and financial condition should be read together with "Summary Historical Consolidated Financial" and the financial statements and related notes included elsewhere in this prospectus. Such discussion and analysis reflects our historical results of operations and financial position and does not give effect to the completion of this offering. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" and elsewhere in this prospectus*

**Overview**

We are a provider of Internet of Things (IoT) products, services and solutions. We deliver enhanced one-stop solutions that connect assets to increase visibility, operational efficiency, and profitability. We provide our solutions and services to a variety of industries including Asset Location Management, Supply Chain Logistics and Transportation. We are a chosen global partner of service providers, value-added collaborators, system integrators, and enterprises due to our commitment to quality and demonstrated experience. Our customers include technology distributors, cellular network operators, fleet service providers and any business that needs to monitor or draw data from their machine-based assets. We serve our clients by simplifying IoT Technologies, making them less costly, easier to deploy and overall, more efficient. We intend to continue expanding our long-standing relationships and work strategically with our partners, to jointly build leading IoT solutions based on integrated hardware, cloud-based software, and other services.

Our current SaaS solutions include MiFleet™, which provides fleet and vehicle SaaS telematics, MiSensors™, which provides machine-to-machine device management and service enablement for wireless sensors, and MiFailover™, which provides high-speed wireless internet failover to small and medium-sized businesses as a redundancy solution to continue to run their business in the event the internet is not available. In addition, we have deployed MiConnectivity to provide wireless data connectivity for global connectivity through our fully integrated SIM management platform and MiServices™ to provide managed services solution that includes all-inclusive device readiness program and engineering support. These services include software development, hardware integration and logistics support from SIM to shipment, including device preparation, custom labeling, packaging, configuration confirmation, and system-side checks.

We were incorporated in 2006 and have traditionally been a distributor of IoT components and a system integrator that assisted clients in installing such components into their installed systems and applications. We have focused on providing hardware items and solutions that have aided in data collection, analysis and management. Since 2021 we have been transitioning from a value-add hardware reseller to a SaaS-based, recurring revenue, customized solutions provider, offering turnkey IoT solutions for new and existing customers. SaaS and other services revenue accounted for approximately 35.2% and 26.5% of our total revenue for the year ending December 31, 2024 and the nine months ending September 30, 2025, respectively.

The global costs and prices of IoT sensors and products continue to drop in price and margin. As a response to this, and an interest to develop more vertically integrated, comprehensive solutions, we began to develop software applications and databases that can analyze and manage the data that its IoT hardware has traditionally just collected. We believe that this will provide us with the opportunity to increase our gross and net profit margins by providing more services and software – through the cloud and/or via a SaaS business model. Currently, we focus on three primary business units for generating growth in our revenue streams.

Smart Hardware Provider. We utilize smart hardware from an expanding group of suppliers to deploy through our strategic agreements with channel partners including Verizon, U.S. Cellular, Synnex and Hyperion Partners as the basis to develop our own end-to-end SaaS based intelligent business solutions.

SaaS Software Solutions Provider. Our products and services then enable devices to communicate with each other and with servers or cloud-based application infrastructures. These software applications address and solve real-world data collection and monitoring problems to best serve our customers and manage their evolving business requirements.

Industry Technology Innovation. We have sold to customers within various smart hardware-related vertical markets that are tied to the broad IoT market. These areas have included markets such as fleet management, healthcare, retail point-of-sale, industrial, energy and utilities and safety and security. As we apply our competencies, we can now address a broadening spectrum of software application markets.

We are continuing to evolve from our smart hardware distribution base of mobile broadband hardware to providing end-to-end solutions for mobile internet, and vertical markets. We serve our clients by simplifying IoT technologies, making them less costly, easier to deploy and overall, more efficient. We intend to continue to leverage our long-standing relationships with strategic partners and jointly build differentiated IoT solutions based on integrated third-party equipment along with our application software. We believe this mixed hardware and software implementation will allow us to build new, more robust, solutions that address multiple customer problems operating on a single company platform.

**Outlook** 

We continue to expand the industries we serve which now include property management, restaurants, healthcare, cold chain management, retail, offices, fleet management, public safety, and construction.

Large cellular network providers have transitioned to 5G wireless technologies and we believe our relationships with the cellular network providers along with our customizable IoT product and service offerings, will provide us with significant sales opportunities. Our relationships throughout the IoT ecosystem are key to success.

**Key Business Metrics**

The following table shows a summary of our key business metrics as of the periods presented:

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **September 30,<br> 2025** |
| Annual recurring revenue ("ARR") | $2792541 | $2982533 |

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***ARR***

We believe that ARR is a key indicator of the trajectory of our business performance, enables measurement of the progress of our business initiatives, and serves as an indicator of future growth. We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date. ARR highlights trends that may be less visible from the face of our financial statements due to ratable revenue recognition. ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and is not intended to be combined with or to replace it. ARR is not a forecast and the active contracts at the date used in calculating ARR may or may not be extended or renewed.

**Results of Operations for the Year Ended December 31, 2024**

Revenues for the year ended December 31, 2024 were $6,408,150 compared to $13,027,675 for the year ended December 31, 2023. The 51% decrease was primarily due to a decrease in product revenue from $10,500,565 in 2023 to $3,492,622 in 2024, as a result of the restructuring of the Company's sales strategy to prioritize high-margin recurring SaaS revenue over lower-margin, one-time hardware sales, which was partially offset by an increase in solutions and other services revenue from $2,527,110 in 2023 to $2,915,528 in 2024.

Cost of revenues for the year ended December 31, 2024 were $4,239,467 compared to $8,598,869 for the year ended December 31, 2023, as a result of the restructuring of the Company's sales strategy to prioritize high-margin recurring SaaS revenue over lower-margin, one-time hardware sales.

The Company went through and aggressively reworked the pricing models to achieve healthier margins. The Company also expanded the portfolio of product offerings, which permitted higher margin sales.

General and administrative expenses for the year ended December 31, 2024 were $4,512,076 compared to $8,657,068 for the year ended December 31, 2023. The decrease was primarily due to (i) a decrease in professional services fees from $3,072,330 in 2023 to $1,041,901 in 2024, as the Company ceased its previous IPO process in the fourth quarter of 2023, and (ii) a decrease in compensation and benefits from $3,468,826 in 2023 to $2,509,091 in 2024, as a result of the Company's restructuring process and the Company's decision to preserve working capital for operations.

Research and development expenses for the year ended December 31, 2024 were $258,561 compared to $515,691 for the year ended December 31, 2023. The decrease was a result of reduced testing for new hardware devices and fewer resources allocated to R&D.

Interest expense and accretion for the year ended December 31, 2024 were $1,029,725 compared to $493,077 for the year ended December 31, 2023. The increase was primarily due to the interest expense of additional loans, promissory notes, and convertible debentures that were obtained for financing in 2024.

Gain on debt extinguishment for the year ended December 31, 2024 was $2,914,776 compared to nil for the year ended December 31, 2023. The Company entered into an agreement with a vendor to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. As a result, the balance of $2,914,776 of the payables owed to this vendor was forgiven.

Net changes in fair value of derivatives for the year ended December 31, 2024 was due to an increase in liability for $1,349,769 compared to a decrease in liability for $359,062 for year ended December 31, 2023. The increase in liability was primarily due to the promissory notes and convertible debentures the Company entered into in 2024.

Net loss for the year ended December 31, 2024 was $1,742,951 compared to $5,182,196 for the year ended December 31, 2023. The decrease was primarily the result of cost-cutting initiatives and preservation of work capital for operations.

**Results of Operations for the Nine Months Ended September 30, 2025**

Revenues for the nine months ended September 30, 2025 were $7,204,034 compared to $4,890,399 for the nine months ended September 30, 2024. The 47% increase was primarily due to an increase in product revenue from $3,719,152 for the nine months ended September 30, 2024 to $4,875,852 for the nine months ended September 30, 2025, driven by higher demand for as customers cleared their overstocked inventories. Revenue from solutions and other services also contributed to the growth, increasing by 7% from $1,171,247 in the same period as last year to $2,328,182.

Cost of revenues for the nine months ended September 30, 2025 were $4,602,323 compared to $3,064,248 for the nine months ended September 30, 2024.

The Company's gross margin for the nine months ended September 30, 2025 was consistent with the prior year period.

General and administrative expenses for the nine months ended September 30, 2025 were $3,375,824 compared to $3,012,913 for the nine months ended September 30, 2024. The increase was primarily due to (i) an increase in compensation and benefits from $1,841,700 in nine months ended September 30, 2024 to $2,244,588 in the same period in 2025, as a result of the vesting of stock options granted in the prior period, and (ii) a bad debt expense of $49,863 compared to a bad debt recovery of $139,189 in the same period as last year. These increases were partially offset by decreases in professional fees and advertising and marketing expenses due to no major campaigns, and other expenses including bank fees and information technology. There were no significant changes in other components of general and administrative expenses.

Research and development expenses for the nine months ended September 30, 2025 were $72,386 compared to $214,757 for the nine months ended September 30, 2024. The decrease was due to less R&D activities planned during the period.

Interest expense and accretion for the nine months ended September 30, 2025 were $1,697,644 compared to $635,028 for the nine months ended September 30, 2024. The increase was primarily due to the interest expense of the additional loans, promissory notes, and convertible debentures that were obtained for financing during the end of last year as well as the new additional loans and promissory notes that were obtained in the current period.

Gain on debt extinguishment for the nine months ended September 30, 2025 was nil compared to $2,914,776 for the nine months ended September 30, 2024. The Company entered into an agreement with a vendor in September 2024 to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. As a result, the balance of $2,914,776 of the payables owed to this vendor was forgiven.

Net changes in fair value of derivatives was a gain of $1,555,845 for the nine months ended September 30, 2025, compared to a loss of $29,962 in the same period as las year. This favorable change was primarily driven by a decline in the Company's stock price, which reduced the fair value of derivative liabilities.

The Company reported a net loss of $979,298 for the nine months ended September 30, 2025, compared to net income of $857,267 for the nine months ended September 30, 2024. The swing to a loss was primarily the result of a gain on debt extinguishment recorded in 2024 that did not recur in 2025, combined with an increase in interest expense in the current period. These factors were partially offset by an improvement in operating performance as the loss from operations narrowed to $846,499 in 2025 from $1,401,519 in 2024, driven by higher gross profit. The loss was further offset by a favorable change in the fair value of derivatives in 2025.

**Liquidity and Capital Resources**

We define capital as consisting of issued share capital, reserves and accumulated deficit. We expect to fund our operating costs over the next twelve months from expanding sales of our current products and solutions that support our growth and raising additional capital as necessary. Our continuing operations and financial viability are dependent upon the extent to which we can successfully raise the capital to implement our future plans and ultimately on generating sufficient revenue to attain profitable operations. As of December 31, 2024 and September 30, 2025, we had a working capital deficiency of $5,286,995 and $8,323,370, respectively. We were not subject to any externally imposed capital requirements or debt covenants.

In January 2020, we entered into a two-year agreement with TAB Bank ("TAB") for a $2,500,000 credit facility. On September 30, 2025, the outstanding balance on the credit facility was $290,413. The agreement is extended automatically for a successive one-year term, with the current expiry date being January 23, 2026. Interest is payable monthly at a rate the greater of (a) 90-Day SOFR rate plus 4.50% and (b) 6.41%. Under the TAB Bank credit facility, we are obligated to assign all our accounts receivables, and we may request advances up to 90% of domestic accounts less than 90 days from the invoice date and not subject to offset up to $2,000,000. In addition, there is an administration fee equal to 0.008% per diem of the outstanding daily obligations. Alternatively, we may borrow an amount limited to the lesser of: (a) 50% of the cost of eligible inventory, (b) 50% of funds employed and, (c) $500,000 (the "Inventory Advance"). In addition, there is an administration fee equal to 0.01% per diem of the outstanding daily obligations.

On June 7, 2024, as the result of a vendor changing its terms with us from billing devices and device management subscriptions from a payment term of 36 months down to 30 days reducing the frequency of occurrence for long term payables, we entered into an agreement with the vendor to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. The interest is due quarterly, and the principal will be due on June 7, 2029. As of September 30, 2025, we recorded $400,264 accrued interest and finance fee and a carrying balance of $3,600,265 of the loan was outstanding. During the nine months ended September 30, 2025, we paid $50,000 interest expenses but has fallen behind on interest payments. Although the lender has not yet issued a formal demand letter or declared a default as of the date of this prospectus, this breach of the loan agreement entitles the lender to demand immediate repayment of the full loan balance.

During the year ended December 31, 2023, we entered into two loan agreements and pledged $110,532 of inventory as collateral. We entered into two additional loan agreements during the year ended December 31, 2024, and pledged an additional $234,312 of inventory as collateral. During the year ended December 31, 2024, we recorded $122,044 (2023- $7,157) of interest expense and finance charges in the consolidated statement of loss and comprehensive loss in connection to the four loan agreements. During the nine months ended September 30, 2025, one loan matured and was repaid. Upon the maturity and repayment of this loan, we incurred a penalty of $242,568 for breaching the terms of the loan agreement. As of September 30, 2025, $209,326 of this penalty has been paid, and the remaining balance of $33,241 is included in accrued liabilities. The outstanding loans have the following terms as of September 30, 2025. During the nine months ended September 30, 2025, we recorded $26,222 of interest expense in connection with the three loan agreements. As of September 30, 2025, a carrying balance of $92,537 (December 31, 2024 - $160,233) relating to the loans was outstanding.

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| | | | |
|:---|:---|:---|:---|
|  | **Loan 1** | **Loan 2** | **Loan 3** |
| Expected term (months) | 60 | 36 | 24 |
| Interest rate | 6.77% | 19.02% | 16% |
| Payable within 12 months | $11866 | $14956 | $40042 |
| Payable not due in 12 months | $25673 |  |  |

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In April 2024, we entered into a promissory note agreement of $100,000, bearing interest at 19% per annum (accruing semi - annually and payable every six months), and maturing on April 15, 2026, or a period of 24 months. As additional consideration, we issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In May 2024, we entered into a loan agreement with a third party for proceeds of $250,000. The loan is repayable in 24 monthly payments starting May 2024, bearing interest at 22.2%, and is secured by a general security agreement on our assets. In May 2024, we also entered into a promissory note of $100,000, bearing interest at 19% per annum (accruing annually and payable at maturity date), and maturing on May 24, 2026, or a period of 24 months. As additional consideration, we issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In June 2024, we entered into a promissory note of $100,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on June 28, 2026, or a period of 24 months. As additional consideration, we issued 20,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In July 2024, we entered into a promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on July 8, 2026, or a period of 24 months. As additional consideration, we issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In August 2024, we entered into (i) two loan agreements with third parties for proceeds of $174,221 and $200,000, which have been repaid; (ii) a promissory note of $250,000, bearing interest at 19% per annum (accruing semi-annually and payable every six months), and maturing on August 24, 2026, or a period of 24 months; and (iii) another promissory note of $75,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on August 31, 2026, or a period of 24 months. As additional consideration for the promissory note maturing on August 24, 2026, we issued 50,000 purchase warrants on October 16, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.09 per share for a period of 24 months from the date of issuance. As additional consideration for the promissory note maturing on August 31, 2026, we issued 15,000 purchase warrants on October 9, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.14 per share for a period of 24 months from the date of issuance.

In September 2024, we issued replacement convertible promissory debentures totaling $1,741,589, bearing interest at 15% per annum (accruing annually and payable at maturity), and maturing on September 14, 2025 (which has subsequently been extended to October 10, 2026), or a period of 12 months to settle indebtedness related to the convertible debentures issued in 2022. The debentures are not prepayable by us unless approved by the holders of a majority in principal amount of the debentures. Under the debentures, we have agreed to customary covenants, including regarding payment of principal and interest, continuing lawful conduct of business, payment of taxes, compliance with laws, limitation on distribution or declaration of dividends to shareholders, limitations on liens and encumbrances. Upon a default, all principal and interest due or accruing shall become immediately due and payable. Events of default include failure to make payments of principal or interest that remains uncured for 30 business days after notice by holder, failure to observe or perform any covenant or agreement that remains uncured for 30 business days after notice by holder, any order or petition for winding up, any assignment or bulk sale of assets, or petition for bankruptcy filed or presented against us, any bankruptcy or insolvency proceeding being commenced against us, we cease or threaten to cease our business, or any appointment of a receiver or receiver manager. The debentures are non-negotiable and non-transferable. The debentures are convertible, at the option of the holder, into our common stock at a price of $6 per share. In connection with the issuance of the debentures, on October 10, 2024, we issued 196,582 share purchase warrants as additional compensation. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.20 per share for a period of 24 months from the date of issuance of the warrants.

As of December 31, 2024, we had outstanding warrants as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of <br> Warrants <br> Outstanding** | **Exercise <br> Price** | **Exercise <br> Price** | **Weighted <br> Average <br> Remaining <br> Life <br> (years)** |
| September 11, 2026 | 50000 | CAD $| 2.00 | 1.70 |
| October 9, 2026 | 15000 | CAD $| 3.14 | 1.77 |
| October 10, 2026 | 196582 | CAD $| 3.20 | 1.78 |
| October 16, 2026 | 50000 | CAD $| 3.09 | 1.79 |

---

In November 2024, we entered into (i) a promissory note of $100,000, bearing interest at 19% per annum (accruing semi-annually and payable every 6 months), and maturing on November 22, 2026, or a period of 24-months; and (ii) a promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on November 27, 2026, or a period of 24-months. As additional consideration, we issued 20,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In December 2024, we entered into (i) a promissory note with an aggregated total of $200,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on December 10, 2026, or a period of 24-months; and (ii) a promissory note of $50,000, bearing interest at 19% per annum (accruing annually and payable annually), and maturing on December 26, 2026, or a period of 24-months. As additional consideration, we issued 45,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In January 2025, we entered into a promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable on maturity date), and maturing on January 10, 2027, or a period of 24-months. As additional consideration, we issued 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In March 2025, we entered into two loan agreements with third parties for proceeds of $284,500 and $175,000. The loans are repayable in 35 and 65 weekly payments, respectively, starting April 2025, bearing an Estimated Annual Percentage Rate at 84.26% and 43.31%, respectively, and are secured by a general security agreement on our assets. As of September 30, 2025, we were not in compliance with the covenant of both loan agreements that prohibits entering additional financing arrangements without the lenders' consent and were also in arrears on interest payments for the loan with proceeds of $284,500. While the lenders have not yet taken formal action, the non-compliance could allow them to demand immediate repayment of the full loan balances, exercise their rights under the related security agreements and personal guarantee, and seek contractual damages and collection costs.

In April 2025, we entered into a loan agreement with a third party for proceeds of $235,000. The loan is payable in 26 weekly payments, starting April 2025, bearing an Estimated Annual Percentage Rate at 165% and is secured by a general security agreement on our assets. As of September 30, 2025, we were not in compliance with a covenant of the loan agreement that prohibits the sale or pledge of our receivables and were also in arrears on the interest payments. While the lender has not yet taken formal action, the non-compliance could allow the lender to demand immediate repayment of the full loan balance, exercise its rights under the related security agreement and personal guarantee, and seek contractual damages and collection costs.

In June 2025, we issued a promissory note with an aggregated total $150,000, bearing interest at 19% per annum (accruing annually and payable annually) for a period of 24 months. As additional consideration, we issued a purchase warrant concurrently, entitling the holder to purchase 30,000 shares of common stock at a price of CAD $3.12 per share for a period of 24 months from the date of issuance.

In July 2025, we entered into a promissory note for $1,386,000 with an Original Issue Discount of $126,000 with a related party. The promissory note, which is in the nature of a bridge loan, will be funded in up to six monthly tranches of up to $210,000 each. Each tranche matures 12 months from its respective advance date. The loan bears interest at a rate of 10% per annum.

In July 2025, we entered into a supply chain loan agreement with a related party for a total amount up to $500,000. The loan carries fixed interest amount of $30,000, payable annually in advance. The loan is personally guaranteed by William Espley.

As of December 31, 2024, we had outstanding and exercisable stock options as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Options Outstanding** | **Number of Options Exercisable** | **Exercise<br> Price** | **Weighted Average Remaining Life (years)** |
| October 5, 2027 | 178572 | 178572 | $3.29 | 2.76 |
| February 4, 2032 | 6427 | 5847 | $2.87 | 7.10 |
| February 24, 2032 | 10715 | 10715 | $2.87 | 7.15 |
| March 14, 2032 | 8572 | 6696 | $4.13 | 7.21 |
| May 9, 2027 | 52857 | 52857 | $8.40 | 2.35 |
| May 9, 2027 | 14286 | 14286 | $5.53 | 2.35 |
| December 23, 2029 | 177500 | - | 7.20 | 4.98 |

---

As of September 30, 2025, we had outstanding and exercisable stock options as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Options Outstanding** | **Number of Options Exercisable** | **Exercise<br> Price** | **Weighted Average Remaining Life (years)** |
| October 5, 2027 | 178571 | 178571 | $3.29 | 2.01 |
| February 4, 2032 | 6429 | 6238 | $2.87 | 6.35 |
| February 24, 2032 | 10715 | 10715 | $2.87 | 6.41 |
| March 14, 2032 | 8571 | 7834 | $4.13 | 6.46 |
| May 9, 2027 | 52857 | 52857 | $8.40 | 1.61 |
| May 9, 2027 | 14286 | 14286 | $5.53 | 1.61 |
| December 23, 2029 | 177500 | 177500 | $5.17 | 4.23 |

---

As of September 30, 2025, we had outstanding warrants as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Warrants Outstanding** | **Exercise<br> Price** | **Exercise<br> Price** | **Weighted Average Remaining Life (years)** |
| September 11, 2026 | 50000 | CAD $| 2.00 | 0.95 |
| October 9, 2026 | 15000 | CAD $| 3.14 | 1.02 |
| October 10, 2026 | 196582 | CAD $| 3.20 | 1.03 |
| October 16, 2026 | 50000 | CAD $| 3.09 | 1.04 |
| January 10, 2027 | 35000 | CAD $| 2.95 | 1.28 |
| June 16, 2027 | 30000 | CAD $| 3.12 | 1.71 |

---

***Cash Flows***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** | **Nine Months Ended<br> September 30,** | **Nine Months Ended<br> September 30,** |
|  | **2024** | **2023** | **2025** | **2024** |
| **Net cash used in operating activities** | (360299) | (3417330) | (452743) | (687289) |
| **Net cash used in investing activities** |  | (5213) |  |  |
| **Net cash provided by (used in) financing activities** | 937266 | (114008) | 333155 | 751483 |

---

Cash flows used in operating activities during the nine months ended September 30, 2025 were $452,743, compared to cash flows used of $687,289 during the nine months ended September 30, 2024.

Net cash used in operating activities during the nine months ended September 30, 2025 was $452,743 which was primarily attributable to net loss of $979,298, net noncash adjustment of positive $1,434,476, and adjustments for changes in working capital of negative $907,921. The adjustments for changes in working capital mainly included (i) an increase in prepaid expenses of $578,557, (ii) an increase in accrued liabilities of $74,164, partially offset by (i) an decrease in accounts and other receivable of $31,172, (ii) a decrease in inventory of $49,127, (ii) a decrease in accounts payable of $44,199, and (iii) a decrease in deferred revenue of $1,436,144.

Net cash used in operating activities during the nine months ended September 30, 2024 was $687,289, which was primarily attributable to net income of $857,267, net noncash adjustment of negative $2,148,300 and adjustments for changes in working capital of positive $649,012. The adjustments for changes in working capital mainly included (i) an increase in accounts and other receivable of $685,434, (ii) an increase in prepaid expenses of $24,341, (iii) an increase in inventory of $333,511, (iv) an increase in deferred revenue of $96,232, partially offset by (i) a decrease in accounts payable of $25,582 and (ii) a decrease in accrued liabilities of $464,924.

Cash flows used in operating activities during the year ended December 31, 2024 were $360,299 compared to $3,417,330 during the year ended December 31, 2023.

Net cash used in operating activities during the year ended December 31, 2024 was $360,299, which was primarily attributable to net loss of $1,742,951, net noncash adjustment of negative $329,020, and adjustments for changes in working capital of positive $1,711,672. The adjustments for changes in working capital mainly included (i) an increase in accounts and other receivable of $743,207, (ii) an increase in inventory of $402,437, (iii) an increase in deferred revenue of $1,696,900, partially offset by (i) a decrease in prepaid expenses of $520,356, (ii) a decrease in accounts payable of $224,960, and (iii) a decrease in accrued liabilities of $385,556.

Net cash used in operating activities during the year ended December 31, 2023 was $3,417,330, which was primarily attributable to net loss of $5,182,196, net noncash adjustment of positive $910,739 and adjustments for changes in working capital of positive $854,127. The adjustments for changes in working capital mainly included (i) an increase in accounts and other receivable of $1,858,950, (ii) an increase in prepaid expenses of $715,540, (iii) an increase in accrue liabilities of $179,846, partially offset by (i) a decrease in accounts payable of $1,806,752, (ii) a decrease in inventory of $61,477, and (iii) a decrease in deferred revenue of $32,521.

Cash flows used in investing activities during the nine months ended September 30, 2025 and 2024 were $nil and $nil.

Cash flows used in investing activities during the year ended December 31, 2024 were nil versus $5,213 during the year ended December 31, 2023. The difference was primarily due to the purchase of equipment in the comparative period.

Cash flows provided by financing activities during the nine months ended September 30, 2025 were $333,155 cash, compared to $751,483 cash provided by financing activities during the nine months ended September 30, 2024. The difference was primarily attributable to (i) lease payments of $176,643 in 2025 compared to $171,495 in 2024, (ii) net borrowing of $84,329 on credit facility and payment on loans of $1,187,770 in 2025 compared to net repayment of $53,876 on credit facility and payment on loans of $557,670 in 2024, (iii) $nil payment on convertible debenture in 2025 compared to $60,000 in 2024, (iv) proceeds of $200,000 from promissory notes, $694,000 from loans, $635,261 loans from a related party, $83,978 from exercise of warrants in 2025 compared to proceeds of $675,000 from promissory notes, $919,525 from loans, $nil loan from a related party received, and $nil from exercise of warrants in 2024.

Cash flows provided by financing activities during the year ended December 31, 2024 were $937,266 compared to $114,008 cash flows used in financing activities during the year ended December 31, 2023. The difference was primarily due to repayments on credit facility were $37,930 in 2024 compared to borrowing $244,015 in 2023. During the year ended December 31, 2024, we received $1,025,000 in promissory notes and $799,835 from loans and there were nil promissory notes received and $140,087 loan received in 2023. In addition, the Company repaid $559,834 of the loans and $60,000 of convertible debentures in 2024, and there were $275,000 repayment of the loans and nil repayment of convertible debenture in 2023.

**Critical Accounting Estimates**

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, each as of the date of the financial statements, and revenue and expenses during the periods presented. On an ongoing basis, management evaluates their estimates and assumptions, and the effects of any such revisions are reflected in the financial statements in the period in which they are determined to be necessary. Management bases its estimates on historical experience and on various other factors that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our consolidated financial statements.

Information about critical estimates in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are, but not limited to the following:

● Allowance for doubtful accounts receivable – We make allowances for doubtful accounts based on its best estimate of the amount of probable credit losses in existing accounts receivable. These are determined based on analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and the customers' creditworthiness.

● Provision for excess and obsolete inventory - Inventory is valued at the lower of cost and net realizable value. Net realizable value for inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. All these estimates involve uncertainty relating to future pricing, demand and market conditions. Provisions are made in profit or loss of the current period on any difference between book value and net realizable value.

● Fair value of stock options and warrants, and derivative liability - Determining the fair value of warrants and stock options requires judgements related to the choice of a pricing model, the estimation of stock price volatility, the expected forfeiture rate and the expected term of the underlying instruments. Any changes in the estimates or inputs utilized to determine fair value could have a significant impact on our future operating results or on other components of shareholders' equity (deficiency).

● Fair value of the liability component of hybrid financial instrument at initial recognition – Determining the fair value of the liability component requires judgement related to market rate of interest. The market rate of interest used is based on judgement including our own credit risk, economic environment terms, and interest rate charged to comparable companies. Changes in assumptions can materially affect the fair value estimate of the financial instrument.

● Income taxes - Tax provisions are based on enacted or substantively enacted laws. Changes in those laws could affect amounts recognized in profit or loss both in the period of change, which would include any impact on cumulative provisions, and future periods. Deferred tax assets, if any, are recognized to the extent.

 **Critical Accounting Judgements** 

Our significant accounting policies are more fully described in Note 1 to our consolidated financial statements included elsewhere in this prospectus. We believe that the following critical accounting policies are the most significantly affected by judgments and assumptions used in the preparation of our consolidated financial statements: Revenue recognition.

● Deferred income taxes – judgements are made by management to determine the likelihood of whether deferred income tax assets at the end of the reporting period will be realized from future taxable earnings. To the extent that assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognized in respect of deferred tax assets as well as the amounts recognized in profit or loss in the period in which the change occurs.

● Going concern – In assessing whether the going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. Our ability to continue operations is dependent on management's ability to secure additional financing. Management is actively pursuing such additional sources of financing, and while it has been successful in doing so in the past, there can be no assurance it will be able to do so in the future.

● Revenue Recognition – We sell several telematics devices bundled with a multi-year software licenses under the same contractual arrangement, giving rise to considerations on whether there are distinct performance obligations requiring separate recognition and whether we are acting as principal or agent in the contract. Key considerations in determining whether the performance obligations are distinct are whether the promise to deliver the hardware component of the contract is separately identifiable from other contractual promises as well as the level of interdependency between the components of the contract. We have concluded the bundled contract represents one performance obligation and that we are acting as principal in the arrangement, resulting in us recognizing revenue and cost of sales on a gross basis on delivery of the telematics device. Significant judgement is involved in the assessments made by management.

**Financial Instruments**

Our financial assets include cash and amounts receivable. The carrying value of cash and amounts receivable approximates their fair value due to their short term to maturity.

Our financial liabilities include accounts payables, loans, derivative liability, credit facility, and customer deposits. The carrying value of these items approximates their fair value, which is the amount recorded on the consolidated statement of financial position.

**Financial Risk Factors**

*Credit risk*

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or legal entity, whether they are a wholesale, retail or end-user customer, geographic location, industry, aging profile, maturity and existence of previous financial difficulties. Trade and other receivables relate mainly to our wholesale and retail customers.

Trade and other receivables consist of:

---

| | |
|:---|:---|
|  | **December 31,<br> 2024** |
| Accounts receivables | $678636 |
| Other receivables | 144377 |
| Allowance for doubtful accounts | (66055) |
| Total | $756958 |

---

---

| | |
|:---|:---|
|  | **September 30,<br> 2025** |
| Accounts receivables | $765919 |
| Other receivables | 81048 |
| Allowance for doubtful accounts | (108700) |
| Total | $738267 |

---

During the year ended December 31, 2024, $57,072 of bad debt recovery had been recognized in the consolidated statement of operating loss and comprehensive loss.

During the nine months period ended September 30, 2025, $49,863 of bad debt expenses had been recognized in the consolidated statement of operating loss and comprehensive loss.

Aged trade receivable listing:

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| | |
|:---|:---|
| **Days outstanding** | **December 31,<br> 2024** |
| Current | $2282645 |
| 1 – 30 | (1870748) |
| 31 – 60 | 114022 |
| 61 - 90 | 157871 |
| > 90 | (5154) |
| Total | $678636 |

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---

| | |
|:---|:---|
| **Days outstanding** | **September 30,<br> 2025** |
| Current | $471540 |
| 1 – 30 | 122946 |
| 31 – 60 | 12549 |
| 61 - 90 | 35459 |
| > 90 | 123425 |
| Total | $765919 |

---

The company's maximum exposure to credit risk is the combined carrying amount of its financial assets as at December 31, 2024 is $1,364,647.

The company's maximum exposure to credit risk is the combined carrying amount of its financial assets as at September 30, 2025 is $1,226,368.

*Liquidity risk*

 

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation.

We examine current forecasts of our liquidity requirements so as to make certain that there is sufficient cash for its operating needs. These forecasts take into consideration matters such as our plan to use debt for financing its activity, compliance with any required financial covenants and liquidity ratios, and compliance with external requirements such as laws or regulation.

We have a factoring agreement with external funding. Our accounts payable and accrued liabilities have contractual terms of 30 to 90 days, with the exception of one vendor where payment terms of 36 months have been granted. We are exposed to liquidity risk.

 

*Market risk*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Currency Risk

We are located in the United States and virtually all transactions including our sales and debt are negotiated in US dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Interest Rate Risk

Our debt has fixed interest rates and is not exposed to interest rate risk until maturity. Our credit facility is variable based on the 90 day SOFR rate. A 1% increase in the 90 day SOFR rate would not have a significant impact on profit and loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices other than those arising from interest rate risk, financial market risk or currency risk. We are not exposed to significant price risk.

*Concentration risk*

We derived revenue from one customer, One Step GPS LLC, totaling 40.4%, 22.5% and 33% of our total revenue for the nine months ended September 30, 2025 and years ended December 31, 2024 and 2023, respectively. As of September 30, 2025, December 31, 2024 and December 31, 2023, One Step GPS LLC accounted for a total of 10.9%, 18% and 19% of accounts receivable, respectively.

To manage the concentration of customer risk, we continuously look for opportunities to diversify revenue streams and expand our customer base via marketing. All contracts with customers are signed for a term, and we ensure the customer needs are being met by building exceptional customer service relationships.

We have concentrations in the purchases with our suppliers. For the years ended December 31, 2024 and 2023, the two largest suppliers accounted for a total of 83% and 81% of total purchases, respectively. For the nine months ended September 30, 2025 and 2024, the two largest suppliers accounted for a total of 80.8% and 86.5% of our total purchases, respectively.

To mitigate the concentration of vendor risk, we continuously look for opportunities to build a supply chain in different geographic locations (Eastern Europe and Asia), and all vendors are selected after extensive due diligence and testing by our QA team.

**Off-Balance Sheet Arrangements**

We have not entered into any off-balance sheet arrangements.

**BUSINESS**

**Our Company**

Direct Communication Solutions, Inc. is a technology innovation company in the sensor sector of information technology solutions for the Internet of Things (IoT) market. We were established in 2006 and are headquartered in San Diego, California. We focus our business on generating revenue streams and growth in the following three principal areas.

***Smart Hardware Provider.*** We deploy smart hardware to our customers from an expanding group of suppliers through strategic agreements with channel partners including Verizon Communications, Inc., United States Cellular Corp., Synnex Corporation and Hyperion Partners, and use this deployment as the basis to develop our own end-to-end SaaS based intelligent business solutions. We identify the right device for our client with a focus on the most suitable technology (4G LTE, Bluetooth, WiFi, etc.), price and the features & capabilities of the device to collect the data to solve the client's problem. Our specialty is aiding global Original Equipment Manufacturers, or OEMs, with devices that are not available or approved to operate in North America and guide the OEM with regulatory guidance, feature requirements and preparing the equipment for the North American market. We assist OEMs who manufacture 4G/5G LTE cellular routers, gateways, GPS devices or Bluetooth/LoraWan Sensors to enter the North American market

***SaaS Software Solutions Provider.*** Our products and services then enable the smart hardware devices we deploy to communicate with each other and with server or cloud-based application infrastructures. Our software applications address and solve real-world data collection and monitoring problems to best serve our customers and manage their evolving business requirements. Our software platform is highly customizable and scalable, supporting best in class devices from industry leading manufacturers. Our software applications are customizable to meet the specific requirements of our customers, providing visibility into the critical assets of that allow our customers to efficiently and effectively run their business through the data points provided by our software applications.

***Industry Technology Innovation.*** Our customers include participants in various smart hardware-related vertical markets that are tied to the broad IoT market, including the fleet management, retail point-of-sale, industrial, energy and utilities and safety and security markets. As we continue to apply our core competencies, we believe that we will be able to address a broadening spectrum of software application markets.

We continue to evolve from our smart hardware distribution base of mobile broadband hardware to providing end-to-end solutions for mobile internet, and vertical markets. We expect to continue to leverage our long-standing relationships with our strategic partners and to build differentiated IoT solutions based on integrating third-party equipment with our proprietary application software. We believe that this mixed hardware and software implementation will allow us to build new and more robust solutions that address multiple customer needs operating on a single company platform.

**Our Products and Services**

Our full-service IoT solutions allow our customers to obtain real-time data on their operations, assets, and overall business performance. We serve our clients by simplifying IoT technologies, making them less costly and easier to deploy, thereby solving real-world problems and providing our clients with key actionable insights that enable them to run their businesses more effectively and efficiently. Our products and services include Smart Hardware Solutions, Cloud-based SaaS Solutions, Managed Services and Data Solutions.

***Smart Hardware Solutions***

We provide smart hardware based on the latest 4G/5G technologies that is available for the global IoT business ecosystem. Our smart hardware devices enable end-to-end data intelligence collection and operational analysis to better serve the business needs of our customers. Our global ecosystem of partners and vendors allows us to leverage our smart hardware portfolio into new recurring revenue streams by providing our customers with connectivity, engineering, and logistics services.

***GPS Device Portfolio****.* Because of our clients' complex business demands, we offer our clients a broad selection of GPS devices. Our extensive ecosystem of GPS devices allows us to provide the right device with the optimal features and functionality to satisfy client requirements. Our GPS device offerings are designed to track, provide data on actionable items and provide detailed reporting on key data points related to our clients' assets and vehicles. We maintain strategic partnerships with multiple global GPS device manufacturers and are able to access the most appropriate devices on the market to cover substantially all use cases, ranging from basic tracking to dash cameras and ruggedized in-vehicle tablets for electronic logging device (ELD) and workforce management. Additionally, we provide our clients with technical and integration services through our in-house engineers to customize devices in a way that will meet our clients' requirements.

***Sensor Portfolio.*** We offer a diverse suite of sensors that enable our clients to deploy IoT sensor ecosystems that can address their monitoring needs by providing key insights into actionable items and that can alert them to potential problems within their business before those problems impact business operations. Our extensive sensor portfolio encompasses multiple sensor types and technologies. IoT sensors can detect potential issues and provide actionable intelligence across a wide range of metrics from water leaks in a facility building to possible contamination throughout an operation process. Because sensors can provide advanced insight into potential issues, they allow clients to access data on preventative maintenance early. Sensors can also provide predictive maintenance data, allowing business owners to identify a problem and correct it before it becomes an issue requiring costly repairs or the replacement of valuable assets that can have a significant financial impact. Sensors can be seen as a type of "insurance" for machines.

***Cloud-based SaaS Solutions***

We offer cloud-based SaaS solutions that are designed to be user-friendly and accessible from both web and mobile applications. These solutions are applicable to multiple industries and can be integrated with other third-party applications, which can add additional value to clients and thereby increase our revenues. Our SaaS solutions collect raw data and enable real-time visibility into alerts, notifications, and predictive maintenance through customizable on-demand reporting.

***MiFleet.*** MiFleet is a transportation and logistics-focused cloud-based platform for small and medium sized businesses of any complexity. Our MiFleet platform is customizable to client requirements and leverages our smart hardware device portfolio, which we believe gives us a significant competitive advantage in the market due to our extensive GPS tracking devices ecosystem. We designed our software platform to optimize fleet operational efficiencies by lowering costs related to fuel consumption, labor, and maintenance. The MiFleet platform also integrates IoT sensor data to track high value assets and goods as they move through the global supply chain. Combining sensors into MiFleet creates additional value and can provide critical tools for managing costs related to lost or perishable products by tracking location and sensor data such as temperature or humidity.

***MiSensors.*** MiSensors is our proprietary cloud-based software platform for IoT sensor deployment, device management and service enablement of our extensive offering of sensor types and technologies. The MiSensors platform is a real-time monitoring solution for IoT sensors that allows our clients to set sensor reporting rules based on their business requirements and receive alerts via email or SMS in the event of a trigger notification. MiSensors allows our clients to deploy customizable IoT sensor ecosystems quickly and easily across multiple business locations, to create hierarchies based on roles, and to set sensor reporting values based on business needs.

***Video Telematics****.* Our video telematics solutions and services complement our fleet-tracking technologies by incorporating cellular dash cameras and video analytics into our product offerings. Video telematics is a fast-growing segment of IoT that provides additional value to our clients and can create higher recurring revenues for us. Our video telematics solutions and services enhance our transportation/logistics offerings by providing real-time video to our clients that we combine with Artificial Intelligence (AI) analysis to identify risky driver behavior, which a company can then act on and correct through coaching, training, or driver termination. Video telematics can also be a valuable tool in helping reduce the risk of unnecessary litigation by capturing video evidence in the event of an accident. Some insurance providers have begun to see the value in video telematics and have offered discounts on premiums based on a reduction of the risk of frivolous lawsuits, which is another potential benefit of the solution.

***Managed Services and Connectivity Solutions***

We also provide technical services that extend our business reach and capture additional opportunities that are syngeneic with our core solutions through delivery of data connectivity and active managed services. Our service solutions are continuous and can recur throughout the customer lifecycle via optimization. Our knowledge and deep understanding of the IoT industry allows us to provide simple integration services, or custom solution design services based on specific customer requests.

***MiConnectivity*.** MiConnectivity is our global data solution for cellular data connectivity. It can provide additional value to our clients and can increase our recurring revenues by bundling data connectivity with our SaaS platforms and smart hardware. MiConnectivity can provide our customers with valuable insight into the cellular data costs of IoT solutions through analytics and optimization of rate plans across multiple providers of IoT connectivity in one platform. By integrating multiple cellular network technologies, we are able to offer our clients access to global connectivity for multiple devices and technologies. MiConnectivity can help our customers reduce their overall connectivity costs by leveraging our substantial and growing connectivity subscriber base. In addition to providing reduced connectivity costs and valuable insight into device activity and performance, we are also able to provide our clients with customized support in the event issues arise, since we are providing the platform to manage all their devices on a global scale. We believe that MiConnectivity is a cost-effective addition for any customer that needs data services when purchasing our products and solutions.

***MiServices*.** MiServices is our managed services offering that provides our customers a "worry-free" experience when deploying our IoT devices and solutions. Through MiServices we offer engineering and logistical services as a paid service that reduces the cost and complexity of configuring and deploying IoT devices for our clients. Our offering is flexible and can be tailored to our clients' needs depending on their technical capabilities. MiServices can provide itemized services or can provide a full suite of device deployment services. MiServices offers script development, loading configurations, SIM card insertion, carrier APN settings, pairing device and SIM card, activation services, device readiness validation and custom labeling and packaging. Once deployed, our customers can rely on MiServices for maintenance, technical support and troubleshooting for errors, which can greatly reduce the time and costs for the end-user and thereby increase the efficiency of the customer's operation.

**Our Competitive Strengths**

We believe that we have attributes that differentiate us from our competitors and provide us with significant competitive advantages. Our key competitive strengths include:

●  ***Industry Expertise:*** Our executive leadership team, consisting of our Chief Executive Officer, our Chief Operating Officer, our Chief Technology Officer, and our Chief Financial Officer, has over 60 years combined experience in the technology and IoT industry. The team's experience and skills are diverse, unique and complement each other in the areas of IoT devices/equipment, software and cellular wireless connectivity. The core of the team has worked together for almost a decade and is committed to our continued growth and overall success.

●  ***Our Culture:*** We acknowledge our customer as the most valuable component in our business. We strive to represent ourselves as an extension of our clients' organizations, and we believe this has contributed greatly to our long-lasting relationships with our customers. Because of our deep involvement with our customers' business needs, we are able to focus on the delivery of solutions that can meet and exceed their expectations.

●  ***Our Knowledge:*** We believe that our broad experience and deep engineering roots are what our clients seek. We strive to simplify complex solutions for mass adoption by working closely with our customer and looking at technology through their eyes to come up with an approach that can be greatly simplified to accommodate their dedicated market segment. We have the privilege of working with some of the most experienced professionals in their respective markets, which helps strengthens our team and our solution offerings.

●  ***Our Staff:*** Each of our three departments – Sales, Engineering and Operations – function within their respective boundaries of expertise. Our sales team focuses on customer desires and expectations, and our engineering team creates and builds the solution, while our operations team focuses on the overall delivery and customer experience.

●  ***Our Competitive Nature:*** We strive to find what we believe to be the best solutions at the optimal price points to provide our customers with a competitive advantage.

●  ***Partnerships:*** We have a demonstrated history of working with North America's leading cellular wireless carrier partners. Our relationships have allowed us to create solutions that operate on our partners' cellular networks and enable our partners' sales channel to leverage our IoT solutions. We are a Platinum partner with Verizon and Mr. Bursey, our Chief Executive Officer, participates in the Verizon IoT Advisory Council, which we believe provides us with valuable insight into future IoT trends and market segments.

●  ***One Stop Solutions Provider:*** We believe that our consultative approach, which is predicated on a deep understanding of the inner workings of IoT solutions, gives us a competitive advantage. Our industry is largely fragmented into device manufacturers, software developers and cellular connectivity resellers. In contrast, we offer an "a-la-cart" portfolio that can address each independent need or can combine all elements into a single solution tailored to a customer's need.

●  ***Distinctive Solution:*** Our level of exposure, understanding and experience all contribute to our ability to differentiate ourselves in creating many custom-tailored solutions in the IoT Market. Our clients turn to us to solve a problem – typically a unique problem – and together we collaborate with them in putting the pieces of the solution together, which can include a device, wireless connectivity and software or a software API.

**Our Growth Strategy**

We seek to connect new and existing devices to eliminate inefficiencies by obtaining real time data for our customers. The adoption of IoT has outpaced traditional products and services in improving business outcomes. The IoT industry is appealing to many industry verticals. Our growth strategy includes:

●  ***Expand and Enhance Global Strategic Partnerships:*** We intend to stay relevant and to avoid supply chain disruptions by establishing, expanding, and enhancing our relationships with leading IoT companies and original equipment manufacturers (OEMs). We believe that this approach should give us immediate access to some of the most important products available on the market, which will allow us to satisfy our existing customer base and expand our reach to new customers. We also intend to collaborate with new potential partners in the blockchain telecommunication and IoT industries for additional growth.

●  ***Reach New Customers-SaaS:*** We intend to integrate new partnership products and software into our SaaS solutions, which we expect will allow us to create an open ecosystem and expand the value proposition of our SaaS, and thereby increase our revenues by charging for this additional value. We believe that a diversified inventory will provide us with a significant advantage in increasing our SaaS growth. In addition, while we expect to continue to leverage our network of carriers, dealers, and value-add resellers to reach new customers, we also intend to selectively invest in precision marketing programs that will educate targeted groups of potential customers, which we expect will result in a high conversion rate to paying customers. Our execution of this element of our growth strategy is dependent upon our raising fund in this offering.

●  ***Enter New Verticals:*** We currently have an established presence in the transportation and logistics markets. However, there are numerous other markets, such as the environment, social and governance (ESG) market, that are underserved and which we intend to address. For example, the IoT plays a critical role in enabling ESG data collection, analysis, and management, and to penetrate this market we are creating a Smart ESG Program and an ESG-specific app that are designed to provide customers with information that they can use to improve their overall performance. Our execution of this element of our growth strategy is dependent upon our raising fund in this offering. This element of our growth strategy will be a lower priority than the strategy outlined under the "*Reach new customers-Saas*" bullet above in the event we realize a lower level of funding in this offering than we currently anticipate.

●  ***Invest in New Technologies:*** We seek to develop new proprietary technologies in a variety of sectors. Our existing team of engineers are actively developing new solutions to sell into our existing customer base. Our execution of this element of our growth strategy is dependent upon our raising funds in this offering.

●  ***Increase Staffing:*** We intend to hire additional personnel, specifically engineers and business development professionals, to grow our business with the goal of dedicating more time to customer relationships and retention while continuing to develop new products. Our execution of this strategy is dependent upon raising fund in this offering.

●  ***Acquisitions:*** We will take an opportunistic approach regarding strategic acquisitions of accretive companies with high growth potential, and expect to focus on SMB Telematics solutions providers. When evaluating strategic acquisitions, we expect to examine any new technologies, new market verticals, and cross-selling opportunities that a target may provide us. Although we believe acquisitions may play a critical role in our future growth, we do not have any agreements, commitments or plans for any specific acquisitions at this time. Our execution of this strategy is dependent upon raising fund in this offering.

**Our History**

Direct Communication Solutions, Inc. was formed as a Florida corporation on September 9, 2006 and reorganized on April 3, 2017 under the laws of the State of Delaware. Since our inception, we have been a technology solutions integrator focusing on connecting the IoT. We provide information technology solutions for the IoT market. We distribute IoT components, including sensors and system integrators. Our wireless engineers and industry experts assist clients in integrating components into their systems and applications. We develop industry-specific product and software applications. Our software applications and scalable cloud services collect and assess business-critical data from various types of assets. We generate revenue from product sales, SaaS, managed services and connectivity solutions.

In January 2020, we closed an initial public offering in Canada, consisting of the issuance of 1,328,500 shares of common stock. Our Common Stock began trading on the Canadian Securities Exchange (the "CSE") under the symbol "DCSI" on January 6, 2020. We are a reporting company in Canada and comply with applicable quarterly and annual reporting requirements. Our fiscal year end is December 31. Our Canadian filings on SEDAR can be found online at www.sedar.com. Our financial statements on SEDAR are prepared in accordance with International Financial Reporting Standards ("IFRS").

On June 19, 2020, we began trading on the OTCQB Venture Market ("OTCQB") under the symbol "DCSX." Neither the Company nor any predecessor has been in bankruptcy, receivership or any similar proceeding. We are not, and never have been, a shell company (as defined in Rule 405 of the Securities Act of 1933 and Rule 12b-2 of the Exchange Act of 1934). Our primary SIC Code is 5045 (Computers, Peripherals and Software).

**Our Industry**

IoT or Internet of Things is the interconnection of various devices, machines or appliances that generate data. The aim of IoT is not just to create data, but also to extract valuable insights and information from the data generated by various devices. Devices include vehicles, smart phones/gadgets, appliances and other products that have electronic sensors and software embedded into their core systems. Connectivity, cloud computing, and marketing automation are all driving IoT demand. Numerous industries, governments and consumers utilize IoT to enhance operational efficiency, mitigate risks, improve functional visibility, increase revenue streams, and ensure maximum customer engagement.

According to Fortune Business Insights, the global (IoT) market is projected to grow from $714.48 billion in 2024 to $4,062.34 billion by 2032, at a CAGR of 24.3%.

**Research and Development** 

We continue to invest in the research and develop of products and solutions which complement our current core offerings. Our efforts are focused on a proprietary device management platform, as well as a remote monitoring and inventory management system.

The proprietary device management offers overall efficiencies and organizational tools to both our internal operations as well as provide a value-add application for our customer to automate device preparation prior to deployments, analyze in field devices and provide historical status events. Cost reduction of in field devices is the objective.

The remote monitoring and management system provides a global overview to manage company assets, equipment usage and insight into product replenishment. Key data points will drive predictive stock replenishment, equipment servicing and historical data to aid in future decision making processes.

**Customer Concentration**

We derived revenue from one customer, One Step GPS LLC, totaling 40.4%, 22.5% and 33% of our total revenue for the nine months ended September 30, 2025 and years ended December 31, 2024 and 2023, respectively. As of September 30, 2025, December 31, 2024 and December 31, 2023, One Step GPS LLC accounted for a total of 10.9%, 18% and 19% of accounts receivable, respectively. See "Risk Factors – Risks Related to our Business and Industry – We have significant customer concentration, with a limited number of customers accounting for a substantial portion of our revenues."

**Competition**

The IoT marketplace for service and solutions providers is highly fragmented. Most vendors offering software and/or hardware address only part of specific industry verticals or a portion of one-stop solutions services.

Over the past few years, sensor prices have dropped considerably due in part to technology innovations. At the same time, the cost of internet bandwidth has also declined precipitously, with the introduction of new technologies like 4G/5G, Category M1 and NBIoT (Narrow Band IoT). Concurrently with this, smartphones are now becoming the personal gateway to the IoT, serving as a remote control or hub for the connected home, connected car, or the health and fitness devices consumers are increasingly starting to wear.

The principal competitive factors impacting the market for our products and services are global scale, innovation, reputation, customer service, product quality, functionality, reliability, time-to-market, responsiveness and price. Our continued success in our vertical markets will depend in part upon our ability to continue to innovate and design quality products and deploy solutions at competitive prices and with superior support services to our customers.

Based on the current market, we believe we are positioned favorably against our competitors. Our products and services allow us to provide the customer a one-stop solutions services from hardware, and software to connectivity. However, some of our competitors have longer operating histories, larger and broader customer bases, more established relationships with a broader set of suppliers, greater brand recognition, and greater financial, research and development, marketing, distribution, and other resources. We will explore our strengths and opportunities in the market and may choose to enter or expand into new markets as needed.

**Government Regulation**

We believe that we are in material compliance with all federal and state regulatory requirements applicable to our business, however regulation related to the provision of services over the Internet is evolving, as federal, state and foreign governments continue to adopt new, or modify existing, laws and regulations addressing data privacy and the collection, processing, storage, transfer and use of data. Furthermore, our customers and potential customers conduct business in a variety of industries, and regulators in certain industries have adopted and may in the future adopt regulations or interpretive positions regarding the use of cloud computing and other outsourced services. We may be subject to laws and regulations governing issues such as privacy, data security, the use of biometric data, labor and employment, anti-discrimination, whistleblowing and worker confidentiality obligations, product liability, consumer protection and warnings, marketing, taxation, competition, arbitration agreements and class action waiver provisions, and terms of service, among other issues. We are committed to complying with, and helping our customers comply with, applicable regulations and requirements. See "Risk Factors – Risks Related to our Business and Industry – Privacy concerns and laws, evolving regulation of cloud computing, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business," "Risk Factors – Risks Related to our Business and Industry – Our business is subject to government regulation and future regulation or regulatory changes may increase the cost of compliance and doing business," and "Risk Factors – Risks Related to our Business and Industry – Industry-specific regulation and other requirements and standards are evolving and unfavorable industry-specific laws, regulations, interpretive positions or standards could harm our business."

**Intellectual Property**

We rely on a combination of patent, copyright and trademark laws, trade secrets, some software security measures (e.g., to protect trade secrets), license agreements and nondisclosure agreements to protect our intellectual property. We pursue registration of trademarks but currently hold no patents on our products.

**Human Capital Management**

As of the date of this prospectus, we have 11 employees, all of whom are full-time. We have no collective bargaining agreements with our employees, and we have not experienced any work stoppages. We believe that our relations with our employees are good and have been maintained in a normal and customary manner.

The success of our business depends on large part on our ability to attract, retain and develop a diverse population of talented and high-performing employees. We believe that we have attracted a core of seasoned professionals with strong track records and deep experience in the IoT Industry, and these individuals are complemented a group of employees who are eager to learn and who benefit from the experience and leadership of our senior management. We prioritize and invest in creating opportunities to help employees grow and build their careers through ongoing training and exposure to new opportunities within our company and externally with our clients.

Our culture is an extension of our dedicated staff and is based on our core values. We are loyal. We are trusted. We all have a growth mindset, set to achieve the goals of our company and the goals of our clients. We focus on being an extension of our client's business – executing on tasks as though we are truly a part of their business.

We believe our performance-based approach to compensation has created a culture of winning; group collaboration and a team first mentality. Our staff understands that no matter the role within the company we all have a direct impact on the success of the business. Everyone's actions contribute to the business.

**Properties**

Our corporate headquarters is located at 11021 Via Frontera, San Diego, California. This facility comprises approximately 11,543 square feet of space, pursuant to a lease agreement expiring on October 31, 2026. We do not own or lease any other real property. We believe that this facility is suitable to meet our needs, and that, should it be needed, suitable additional or alternative space will be available to accommodate any expansion of our operations.

**Legal Proceedings**

From time to time, we may be involved in various litigation matters arising in the ordinary course of our business.

On October 27, 2025, former employee Rhonda Bass filed a lawsuit for breach of contract against us in the San Diego Superior Court. The lawsuit seeks payment of a contractual severance of $175,000 plus penalties and interest for late payment. We have not yet responded to the complaint and are currently engaged in settlement discussions with the plaintiff.

**MANAGEMENT**

The following table sets forth certain information as of the date of this prospectus about our executive officers and members of our Board.

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| | |
|:---|:---|
| **Name** | **Position** |
| William Espley | Chief Executive Officer, Director and Chairman of the Board |
| Ying Xu | Chief Financial Officer |
| Eric Placzek | Chief Technology Officer |
| David Scowby | Chief Operating Officer |
| Mike Yao Zhou | Director |
| Shujie Zhong | Director |
| Gunther Schuhmann | Director Nominee |
| Dr. Michael Xing He | Director Nominee |

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***William Espley*** was appointed director of the Company in February 2018, the Interim Chief Executive Officer of the Company in September 2025, and the Chief Executive Officer of the Company in November 2025. From 2003-2010, Mr. Espley was a founding investor in, and served as Investor Relations principal for, Net 1 UEPS Technologies, Nasdaq-listed payment systems provider. Mr. Espley was also a member of the board of directors of American Bullion Minerals Ltd., a mining claims company, from 2008 to 2011, and was its Vice President from 1997 to 2002. He is currently the President and a director of White Tiger Venture Group Ltd., a position he has held since 2015, and the President and a director of Predictive Health Analytics Inc., a position he has held since 2017. From 1994 to 1996, Mr. Espley was a licensed registered representative for C.M. Oliver & Co., a member firm of all of the Canadian stock exchanges. Prior to that, Mr. Espley was a founder and served as President of Professional Canadian Investment Group Inc. (PROCAN), a venture capital company that funded technology and oil & gas companies, from 1985 to 1994.

Mr. Espley's expertise in business acquisition planning and financing, as well as his venture capital, investor relations and board experience, all qualify him to serve on our Board.

**Ying Xu** was appointed our Interim Chief Financial Officer in May 2025 and Chief Financial Officer in November 2025. Ms. Xu has over 16 years of experience in audit, mergers and acquisitions, and executive advisory, with a primary focus on Canadian and U.S. public companies across various industries. Ms. Xu is the co-founder of Ethos CPA LLP, a boutique public accounting firm where she has been a Partner since August 2019. Prior to that, Ms. Xu served as the Canadian CFO for MINISO, a major international retail chain, from August 2017 to August 2019. Her prior positions include Senior Assurance Manager at MNP LLP and an auditor at Ernst & Young in Vancouver, among others. Ms. Xu received her Bachelor of Business Administration degree from Simon Fraser University in 2008 and is a Chartered Professional Accountant in British Columbia, Canada.

**Dave Scowby** has served as our Chief Operations Officer since October 2018, and before that was Vice President, Product Development at the Company from July 2013 to October 2018. Before joining the Company, Mr. Scowby was Director of Sales at ALK Technologies, Inc. (now a Trimble Company, PC\*MILER), a transportation and logistics technology company, from June 1995 to September 2003, was Executive Director, Syncwise Division at L1 Technologies, Inc., a technology services provider, from September 2011 to July 2013, and was the founder and President of Kings Management, LLC a sports management company, from July 2004 to December 2007. Mr. Scowby holds a B.S.E. in Engineering & Operations Research Management, and a Certificate in Architectural Design, both from Princeton University.

**Eric Placzek** is our Chief Technology Officer, a position he has held since September 2018. Mr. Placzek joined the company in 2014 as Field Applications Engineer. Prior to 2014, Mr. Placzek was Field Applications Engineer of CalAmp Corp., a connected intelligence company. Prior to joining CalAmp Eric held the position of Systems Test Engineer at 7Layers (now Bureau Veritas), a testing, inspection and certification company. Mr. Placzek holds a Bachelors of Science in Electrical Engineering and a Masters of Science in Computer Engineering from California State Polytechnic Pomona.

 ****

**Mike Yao Zhou** was appointed director of the Company in September 2025 and previously served as a director of the Company from May 2021 to March 2024. From 2019 to the present, Mr. Zhou has served as owner and President of MYZ Corporate Relations Ltd., a private investment and consulting firm that is primarily involved with the North American capital markets. From 2017 to 2018. Mr. Zhou was an Analyst and Associate with PI Financial, a privately-owned Canadian brokerage firm, where he worked directly with the firm's Vice President and Managing Director. From 2013 to 2015, he was Corporate Development Manager for BiYond Corp., an IoT services company. Mr. Zhou has been a member of the board of directors of the following Canadian public company: Explorex Resource Inc. (which is now known as Raffles Financial Group), a natural resources exploration company from August 15, 2019 to April 16, 2021. Mr. Zhou holds the Project Management Professional designation from the Project Management Institute, and a Bachelor of Science Degree in Statistics and Economics with Minor in Commerce (Saunders School of Business) from the University of British Columbia.

Mr. Zhou's extensive experience in capital markets, corporate development, and public company governance make him qualified to serve on our Board.

***Shujie Zhong*** was appointed director of the Company in June 2025. Mr. Zhong is a marketing expert, operations manager, and social media veteran. She has served in various positions in technology companies, such as ByteDance Technology, in the marketing and operations departments. Ms. Zhong holds a Master of Science Degree from the University of East Anglia, Norwich School of Business.

Ms. Zhong's experience in process optimization, influencer outreach & campaigns, and product launches makes her qualified to serve on our Board.

***Gunther Schuhmann*** is a nominee for our board of directors. Mr. Schumann is a seasoned professional with over 30 years of experience in the helical and driven piling industry. Mr. Schumann has served as Vice President of Sales and Procurement at Helical Pile Solutions Ltd., a division of JAVA GROUP, since June 2022, and previously served as General Manager beginning in January 2020. Prior to that, he spent over 26 years as Vice President of Sales and Business Development at Helical Pier Systems. In addition, Mr. Schumann has served on the board of directors for Steadright Critical Minerals Inc. since October 2021 and a member of its audit committee since September 2022, where he contributes to both strategic direction and operational oversight of the company. Mr. Schumann holds a Bachelor of Arts degree in Accounting and Economics from Bethany College.

Mr. Schuhmann's deep industry and financial acumen make him qualified to serve on our Board.

***Dr. Michael Xing He*** is a nominee for our board of directors. Dr. He is the founder of Morgan International Capital LLC, a California-based mortgage company providing a comprehensive suite of lending products. Dr. He is a licensed California mortgage broker and has overseen the company's strategic direction and daily operations since 2021. Dr. He was also the co-founder of Galileo Robotics (January 2018 to December 2019), the co-founder and CEO of Yeelens Technology (January 2014 to April 2017), and the co-founder and CEO of Srers LLC (June 2013 to April 2015). Prior to these roles, Dr. He held a series of technical and leadership roles at prominent high-technology firms in New York and California. In addition, he has authored multiple publications in his areas of expertise and is an active private investor with participation in a range of early-stage ventures. Dr. He holds a Doctorate degree in Electrical and Computer Engineering from the University of Miami.

Dr. He's robust technical expertise and leadership skills make him qualified to serve on our Board.

**Corporate Governance**

***Composition of our Board of Directors***

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Our business and affairs are managed under the direction of our Board. The number of directors will be fixed by our Board, subject to the terms of our certificate of incorporation and amended and restated bylaws. Our board currently consists of three directors.

When considering whether directors and nominees have the experience, qualifications, attributes or skills, taken as a whole, to enable our Board to satisfy its oversight responsibilities effectively in light of our business and structure, the Board focuses primarily on each person's background and experience as reflected in the information discussed in each of the directors' individual biographies set forth above. We believe that our directors provide an appropriate mix of experience and skills relevant to the size and nature of our business.

***Corporate Governance Profile***

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We have structured our corporate governance in a manner we believe closely aligns our interests with those of our stockholders. Notable features of our corporate governance structure include the following:

● Our Board is not staggered, with all of our directors subject to annual re-election;

● Three of our five directors are independent for purposes of NYSE American listing standards; and

● We do not have a shareholder rights plan.

Our directors will stay informed about our business by attending meetings of our Board and its committees and through supplemental reports and communications. Our independent directors will meet regularly in executive sessions without the presence of our corporate officers or non-independent directors.

***Role of the Board in Risk Oversight***

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We face a number of risks, including those described under the section entitled "Risk Factors" included elsewhere in this prospectus. The Board actively manages the Company's risk oversight process and receives periodic reports from management on areas of material risk to the Company, including operational, financial, legal, and regulatory risks. The Board committees assist the Board in fulfilling its oversight responsibilities in certain areas of risk. The Audit Committee assists the Board with its oversight of the Company's major financial risk exposures. The Compensation Committee assists the Board with its oversight of risks arising from the Company's compensation policies and programs. The Corporate Governance and Nominating Committee assists the Board with its oversight of risks associated with board organization, board independence, and corporate governance. While each committee is responsible for evaluating certain risks and overseeing the management of those risks, the entire Board is regularly informed about the risks.

***Director Independence***

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NYSE American requires that, subject to specified exceptions, each member of a listed company's audit, compensation and nominations committees be independent, or, if a listed company has no nominations committee, that director nominees be selected or recommended for the board's selection by independent directors constituting a majority of the board's independent directors. NYSE American further requires that audit committee members satisfy independence criteria set forth in Rule 10A-3 under the Exchange Act and that compensation committee members satisfy the independence criteria set forth in Rule 10C-1 under the Exchange Act.

Prior to the completion of this offering, our Board undertook a review of the independence of our directors and considered whether any director has a material relationship with us that could compromise that director's ability to exercise independent judgment in carrying out that director's responsibilities. Our Board has affirmatively determined that each of Shujie Zhong, Gunther Schuhmann and Dr. Michael Xing He qualify as an independent director, as defined under the applicable corporate governance standards of NYSE American. These rules require that our Audit Committee be composed of at least three members, one of whom must be independent on the date of listing on NYSE American, a majority of whom must be independent within 90 days of the effective date of the registration statement containing this prospectus, and all of whom must be independent within one year of the effective date of the registration statement containing this prospectus.

***Board Leadership***

 ****

Mr. Espley serves as the chairman of the Board. The Board does not have a lead independent director. To help ensure the independence of the Company's Board, the independent directors of the Board intend to meet without members of management at various times during the year.

***Board Committees***

We currently have an audit committee, and our Board of Directors will establish a compensation committee and a nominating and corporate governance committee, each of which will operate pursuant to a charter to be adopted by our Board of Directors and will be effective upon the effectiveness of the registration statement of which this prospectus is a part. Upon the effectiveness of the registration statement of which this prospectus is a part, the composition and functioning of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002, NYSE American and SEC rules and regulations.

Following the completion of this offering, the full text of our audit committee charter, compensation committee charter, and nominating and corporate governance charter will be posted on the investor relations portion of our website at www.dcsbusiness.com. We do not incorporate the information contained on, or accessible through, our corporate website into this prospectus, and you should not consider it a part of this prospectus.

*Audit Committee*

Upon completion of this offering, Shujie Zhong, Gunther Schuhmann and Mike Yao Zhou will serve on the Audit Committee, which will be chaired by Gunther Schuhmann. The committee's primary duties are to:

● review and discuss with management and our independent auditor our annual and quarterly financial statements and related disclosures, including disclosure under "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the results of the independent auditor's audit or review, as the case may be;

● review our financial reporting processes and internal control over financial reporting systems and the performance, generally, of our internal audit function;

● oversee the audit and other services of our independent registered public accounting firm and be directly responsible for the appointment, independence, qualifications, compensation and oversight of the independent registered public accounting firm, which reports directly to the Audit Committee;

● provide an open means of communication among our independent registered public accounting firm, management, our internal auditing function and our Board;

● review any disagreements between our management and the independent registered public accounting firm regarding our financial reporting;

● prepare the Audit Committee report for inclusion in our proxy statement for our annual stockholder meetings;

● establish procedures for complaints received regarding our accounting, internal accounting control and auditing matters; and

● approve all audit and permissible non-audit services conducted by our independent registered public accounting firm.

All members of our Audit Committee will meet the requirements for financial literacy under the applicable rules and regulations of the SEC and the NYSE American company guide. Our Board of Directors has determined that Gunther Schuhmann qualifies as an "audit committee financial expert" within the meaning of applicable SEC regulations. In making this determination, our Board of Directors considered the nature and scope of experience that Gunther Schuhmann has previously had. Our Board of Directors has determined that Gunther Schuhmann and Shujie Zhong satisfy the relevant independence requirements for service on the Audit Committee set forth in the rules of the SEC and the NYSE American company guide. Both our independent registered public accounting firm and management will periodically meet privately with our Audit Committee.

*Compensation Committee*

Upon completion of this offering, Shujie Zhong, Gunther Schuhmann and Dr. Michael Xing He will serve on the Compensation Committee, which will be chaired by Dr. Michael Xing He. The committee's primary duties are to:

● approve corporate goals and objectives relevant to chief executive officer compensation and evaluate performance in light of those goals and objectives;

● determine and approve executive officer compensation, including base salary and incentive awards;

● make recommendations to the Board regarding compensation plans; and

● administer our stock plan.

Our Compensation Committee determines and approves all elements of executive officer compensation. It also provides recommendations to the Board with respect to non-employee director compensation. The Compensation Committee may not delegate its authority to any other person, other than to a subcommittee.

Our Board of Directors has determined that each member of the Compensation Committee is "independent" as defined in the applicable NYSE American company guide rules. Each member of our Compensation Committee will be a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act, and an outside director, as defined pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended.

*Nominating and Corporate Governance Committee*

Upon completion of this offering, Shujie Zhong, Gunther Schuhmann and Dr. Michael Xing He will serve on the Nominating and Corporate Governance Committee, which will be chaired by Shujie Zhong. The committee's primary duties are to:

● consider director nominees recommended by stockholders and recommend nominees for election as directors;

● oversee the evaluation of the Board;

● review our Board's committee structure and composition and make recommendations; and

● develop, recommend and oversee our corporate governance principles, including our Code of Business Ethics and Conduct.

 **

***Code of Business Ethics and Conduct***

 **

Prior to the effectiveness of the registration statement of which this prospectus is a part, our Board will adopt a written code of business ethics and conduct that applies to our directors, officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Following the effectiveness of the registration statement of which this prospectus is a part, a current copy of the code will be posted on the investor relations section of our website, which is located at www.dcsbusiness.com. If we make any substantive amendments to, or grant any waivers from, the code of business ethics and conduct for any officer or director, we will disclose the nature of such amendment or waiver on our website or in a Current Report on Form 8-K.

**EXECUTIVE COMPENSATION**

We are a "smaller reporting company" under applicable SEC rules and are providing disclosure regarding our executive compensation arrangements pursuant to the rules applicable to emerging growth companies, which means that we are not required to provide a compensation discussion and analysis and certain other disclosures regarding our executive compensation. The following discussion relates to the compensation of Chris Bursey, our former President, Chief Executive Officer and Director, and our two other most highly compensated executive officers as of December 31, 2024, Dave Scowby, our Chief Operating Officer, and Eric Placzek, our Chief Technology Officer.

**Summary Compensation Table**

The following Summary Compensation Table contains information regarding compensation for 2023 and 2024 that we paid to Mr. Bursey and our two other most highly compensated executive officers as of December 31, 2024.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock awards<br> ($)** | **Option awards <br> ($)*<sup>(1)</sup>*** | **Nonequity<br> incentive<br> plan<br> compensation <br> ($)** | **Nonqualified<br> deferred<br> compensation earnings <br> ($)** | **All other<br> compensation<br> ($)** | **Total<br> ($)** |
| Chris Bursey | 2024 | 258000 |  |  |  |  |  |  | 258000 |
| &nbsp;&nbsp;&nbsp;Chief Executive Officer | 2023 | 215000 |  |  |  |  |  | 66049 | 281049 |
| Dave Scowby | 2024 | 230000 |  |  | 240 |  |  |  | 230240 |
| &nbsp;&nbsp;&nbsp;Chief Operating Officer | 2023 | 200000 |  |  | 1144 |  |  | 28634 | 229778 |
| Eric Placzek | 2024 | 213333 |  |  | 480 |  |  |  | 213813 |
| &nbsp;&nbsp;&nbsp;Chief Technology Officer | 2023 | 200000 |  |  | 4555 |  |  | 7734 | 204555 |

---

(1) The dollar amounts reported in this column represent the aggregate grant date fair value for financial statement reporting purposes of the option awards granted during the respective fiscal year as calculated in accordance with Financial Accounting Standard Board Accounting Standards Codification Topic 718. These amounts reflect our accounting expense for these option awards and do not represent the actual economic value that may be realized by each applicable named executive officer. The valuation assumptions we used in calculating the fair value of these stock awards and option awards are set forth in Note 10 to our audited financial statements included elsewhere in this prospectus.

**Employment Agreements**

We have employment agreements with Chris Bursey, David Scowby and Eric Placzek. Each agreement can be terminated by either party upon at least thirty days prior written notice. The Company may terminate the executive officer's employment, for cause, as defined in the agreement, at any time, without any advance notice. Subject to the notice provisions described in the agreement, the executive officer may terminate employment with us for good reason as defined in the agreement. Subject to the agreement provisions, in situations where the Company terminates the executive officer's employment without cause, or the executive officer resigns for good reason, then the executive officer will be, under certain conditions, entitled to severance compensation from the Company equal to fifty percent (50%) of executive officer's then current base salary plus payments of medical insurance premiums for six (6) months following termination. In addition, all of Executive's outstanding equity awards granted from and after the date on which the Company's shares of common stock were listed on the CSE shall become immediately vested for the portion that would have vested or become exercisable had employment continued through the next vesting date. In the event of the resignation or termination of the executive officer after a change in control, as defined in the agreement, the severance compensation will be increased to one hundred percent (100%) of executive officer's then current base salary.

**Fiscal Year 2024 Outstanding Equity Awards at Fiscal Year-End Table**

The following table lists all of the outstanding equity awards held on December 31, 2024 by Mr. Bursey and our two other most highly compensated executive officers as of December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** |
| <br>**Name** | **Number of<br> securities<br> underlying<br> unexercised<br> options<br> exercisable<br> (#)** | **Number of<br> securities<br> underlying<br> unexercised<br> options<br> unexercisable<br> (#)** | **Equity<br> incentive<br> plan<br> awards:<br> Number of<br> securities<br> underlying<br> unexercised<br> unearned<br> options <br> (#)** | **Option<br> exercise<br> price** | **Option <br> grant <br> date** | **Option<br> expiration<br> date** |
| Chris Bursey<sup>(1)</sup> | 20000 |  |  | $1.68 | 01/07/20 | 01/07/30 |
| Eric Placzek<sup>(2)</sup> | 250000 |  |  | $0.47 | 10/05/17 | 10/05/27 |
|  | 50000 |  |  | $0.41 | 02/24/22 | 02/24/32 |
|  | 250000 |  |  | $1.55 | 05/09/22 | 05/09/27 |
|  | 20000 |  |  | CAD $7.20 | 12/23/24 | 12/23/29 |
| David Scowby<sup>(3)</sup> | 1000000 |  |  | $0.47 | 10/05/17 | 10/05/27 |
|  | 25000 |  |  | $0.41 | 02/24/22 | 02/24/32 |

---

(1) On
January 7, 2020, Mr. Bursey was granted options to purchase 20,000 shares of our common stock. The options have an exercise price of
$1.68 per share, which was 110% of the fair market value of our common stock on the date of grant, vest ratably over 24 months from the
date of grant, and expire on the 10th anniversary of the date of grant. On February 9, 2022, these 20,000 options were canceled.

(2) On
October 5, 2017, Mr. Placzek was granted options to purchase 250,000 shares of our common stock. The options have an exercise price of
$0.47 per share, which was the fair market value of our common stock on the date of grant, vest ratably over 48 months from the date
of grant, and expire on the 10th anniversary of the date of grant.

On February 24, 2022, Mr. Placzek was granted options to purchase 50,000 shares of our common stock. The options have an exercise price of $0.41 per share, which was the fair market value of our common stock on the date of grant, vest ratably over 24 months from the date of grant, and expire on the 10th anniversary of the date of grant. On May 9, 2022, Mr. Placzek was granted options to purchase 250,000 shares of our common stock. The options have an exercise price of $1.55 per share, which was the fair market value of our common stock on the date of grant, vest immediately from the date of grant, and expire on the fifth anniversary of the date of grant.

On December 23, 2024, Mr. Placzek was granted options to purchase 20,000 shares of our common stock. The options have an exercise price of CAD $7.20, which was the fair market value of our common stock on the date of the grant, vested immediately, and expire on December 23, 2029.

(3) On
October 5, 2017, Mr. Scowby was granted options to purchase 1,000,000 shares of our common stock. The options have an exercise price
of $0.47 per share, which was the fair market value of our common stock on the date of grant, vested immediately, and expire on the 10th
anniversary of the date of grant. On February 24, 2022, Mr. Scowby was granted options to purchase 50,000 shares of our common stock.
The options have an exercise price of $0.41 per share, which was the fair market value of our common stock on the date of grant, vest
ratably over 24 months from the date of grant, and expire on the 10th anniversary of the date of grant.

**Equity Incentive Plans**

*2023 Stock Plan*

*Purpose.* The purpose of our 2023 Omnibus Plan (the "2023 Stock Plan") is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company.

The Company intends that securities issued pursuant to the 2023 Stock Plan be exempt from requirements of registration and qualification of such securities pursuant the exemptions afforded by Rule 701 promulgated under the Securities Act and any applicable exemptions under applicable state securities laws, and the 2023 Stock Plan shall be so construed. Further, the Company intends that awards granted pursuant to the 2023 Stock Plan be exempt from or comply with Section 409A of the U.S. Internal Revenue Code (the "Code") (including any amendments or replacements of such section), and the 2023 Stock Plan shall be so construed.

*Term of Plan.* The 2023 Stock Plan shall continue in effect until its termination by the Board; provided, however, that all Awards shall be granted, if at all, within ten (10) years from December 11, 2023. "Award" means an Option, stock appreciation right, dividend equivalent right, restricted stock, restricted stock unit, or other right or benefit under the 2023 Stock Plan.

*Administration of the Plan.* The 2023 Stock Plan shall be administered by the Board or a committee designated by the Board. Awards are granted solely at the discretion of the Board. The administrator has the full and final power and authority, in its discretion, to determine, among other things, (i) the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Common Stock to be subject to each Award, (ii) the type of Award granted, and (iii) the terms, conditions and restrictions applicable to each Award.

*Persons Eligible for Awards.* Awards may be granted only to employees, consultants and directors of the Company.

*Shares Subject to the Plan*. Subject to customary adjustments such as merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, the maximum aggregate number of shares of common stock that may be issued under the 2023 Stock Plan is 1,000,000 and consists of authorized but unissued or reacquired shares of Common Stock or any combination thereof. As of September 30, 2025, there were 448,929 shares of common stock available for issuance under the 2023 Stock Plan.

*Stock Options.* Options shall be evidenced by award agreements specifying the number of shares of common stock covered thereby, in such form as the Board shall from time to time establish. The exercise price for each Option shall be established in the discretion of the Board; provided, however, that (a) the exercise price per share for an Option shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option and (b) no Incentive Stock Option granted to a stockholder who owns more than ten percent (10%) of the Company's voting stock shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of Common Stock on the effective date of grant of the Option.

An Incentive Stock Option may be granted only to a person who, on the effective date of grant, is an Employee.

No Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option. No Incentive Stock Option granted to a stockholder who owns more than ten percent (10%) of the Company's voting stock shall be exercisable after the expiration of five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement.

*Tax Withholding*. The Company shall have the right to deduct from any and all payments made under the 2023 Stock Plan, or to require the plan participant, through payroll withholding, cash payment or otherwise, to make adequate provision for, the federal, state, local and foreign taxes (including any social insurance), if any, required by law to be withheld by the Company with respect to an Award or the shares acquired pursuant thereto.

*Rights as a Stockholder.* A plan participant shall have no rights as a stockholder of the Company with respect to any shares covered by an Award until the date of the issuance of such shares, as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company.

*Amendment or Termination of Plan.* The Board may amend, suspend or terminate the 2023 Stock Plan at any time. However, without the approval of the Company's stockholders obtained within the prior or following twelve (12) months, there shall be (a) no increase in the maximum aggregate number of shares of Common Stock that may be issued under the 2023 Stock Plan, except by operation of the adjustment provisions of the 2023 Stock Plan, (b) no change in the class of persons eligible to receive Awards or the exercise price of Options, (c) no extension of the expiration date of the 2023 Stock Plan, (d) amendment of an Award granted under the 2023 Stock Plan that reduces its exercise price per share, cancels and regrants new Awards with lower prices per share than the original prices per share of the cancelled Awards, or cancels any Awards in exchange for cash or the grant of replacement Awards with an exercise price that is less than the exercise price of the original Awards, essentially having the effect of a repricing, without approval by the Company's stockholders, and (e) no other amendment of the 2023 Stock Plan that would require approval of the Company's stockholders under any applicable law, regulation or rule, including the rules of any stock exchange or quotation system upon which the Stock may then be listed or quoted, and the Company.

**Compensation Recovery Policy**

Prior to the completion of this offering, we will adopt a Compensation Recovery Policy in accordance with the final rules regarding recovery of erroneously awarded executive officer compensation in connection with an accounting restatement, as adopted by the SEC in October 2022, and consistent with the corresponding NYSE American listing standards (together, the "Clawback Rules"). Pursuant to the Compensation Recovery Policy, and subject to certain limited exceptions in the Clawback Rules, in the event we are required to restate our financial statements, we are required to recoup erroneously awarded incentive-based compensation (as described in the Clawback Rules, including both cash and equity compensation) paid to any current or former executive officer (as described in the Clawback Rules) during the three completed fiscal years immediately prior to the date the accounting restatement was required. The amount recoverable is the amount of any incentive-based compensation received by the executive officer based on the financial statements prior to the restatement that exceeds the amount that such executive officer would have received had the incentive-based compensation been determined based on the financial restatement.

**Equity Award Grant Practices**

We grant equity awards on a discretionary basis in connection with certain events such as the commencement or anniversary of employment, promotion, high performance, or the closing of an acquisition. We do not grant awards in anticipation of the release of material nonpublic information, and we do not time the release of material nonpublic information for the purpose of affecting the value of any equity awards or executive compensation.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

Other than the transaction disclosed below, and compensation arrangements, including employment, termination of employment and change in control arrangements, with our directors and executive officers, including those discussed in the sections entitled "Management" and "Executive Compensation," there have been no transactions since January 1, 2025, including currently proposed transactions to which we have been or are to be a party in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets at December 31, 2023, December 31, 2024 and September 30, 2025, and in which any of our directors (including nominees), executive officers or beneficial holders of more than 5% of our capital stock, or any immediate family members of and any entities affiliated with any such person, had or will have a direct or indirect material interest.

Chris Bursey, our former President and Chief Executive Officer, incurred operating expenses on behalf of the company totaling $188,755 and $74,185 during the nine months ended September 30, 2025 and the year ended December 31, 2024, respectively. In addition, Mr. Bursey has personally guaranteed our March 2025 loan agreement for proceeds of $284,500, our March 2025 loan agreement for proceeds of $235,000, and our promissory note dated July 14, 2025. For more details of these loans, see "Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources." On September 24, 2025, we entered into a release agreement with Mr. Bursey, pursuant to which, in consideration for the release of all claims, demands, actions, causes of actions, judgments, rights, fees, damages, debts, obligations, liabilities, and expenses by Mr. Bursey and his heirs, executors, representatives, administrators, agents, and assigns from the beginning of time up to and including the date of the agreement, we agreed to (i) make direct payments to Mr. Bursey's creditors in the aggregate amount of $93,768.64, which Mr. Bursey represents and warrants are bona fide expenses incurred on behalf of our company; (ii) continue to employ Mr. Bursey as the Founder of our company for a salary of $10,000 per month through the completion of this offering and $20,000 per month during the first year following this offering; (iii) use a portion of the proceeds of this offering to repay outstanding balances under certain high-interest loan agreements and a bridge loan that Mr. Bursey has personally guaranteed; (iv) grant Mr. Bursey incentive stock options valued at $400,000, with 50% vesting on the one-year anniversary of this offering and 50% vesting on the 180th day thereafter; and (v) pay Mr. Bursey a bonus of $200,000 on the one-year anniversary of this offering, subject to the Board's reasonable determination that he has satisfactorily performed his duties.

John Hubler, previously a member of the Company's Board of Directors from April 2023 to September 2024, is a partner of BH IoT Group. For the years ended December 31, 2023 and 2024 and the nine months ended September 30, 2025, the Company recorded $180,000, $140,000 and nil, respectively, in professional fees in connection with its engagement of BH IoT Group to assist in building complete IoT bundled solutions. As of the date of this prospectus, no amounts have been accrued for such services in 2025.

Mike Yao Zhou, a member of the Company's Board of Directors from May 2021 to March 2024 and since September 2025, is the owner of MYZ Corporate Relations, Ltd. For the years ended December 31, 2023 and 2024 and the nine months ended September 30, 2025, the Company recorded $104,000, nil and nil, respectively, in professional fees in connection with its engagement of MYZ Corporate Relations, Ltd. to provide consulting services on strategic matters related to business development opportunities, product development and marketing strategies. As of the date of this prospectus, no amounts have been accrued for such services in 2025.

In addition, during the six months ended June 30, 2025, a company controlled by a family member of Mr. Zhou advanced an aggregate of $136,100 to our company to pay off certain outstanding consulting fees. The advance is non-interest-bearing and repayable on demand. On July 14, 2025, we entered into a promissory note for $1,386,000 with the same related party, which replaced the aforementioned advance. This promissory note, structured as a bridge loan, features an Original Issue Discount of $126,000 and will be funded in up to six monthly tranches of up to $210,000 each. Each tranche matures 12 months from its respective advance date. The loan bears interest at a rate of 10% per annum. As of September 30, 2025, the Company had received three tranches of loan totaling $494,061. The carrying amount of the loan as of September 30, 2025 was $497,955, which included an accrued interest of $3,894. On July 1, 2025, we entered into a supply chain loan agreement with the same related party for up to $500,000. The loan carries a fixed interest amount of $30,000, payable annually in advance. The loan is personally guaranteed by William Espley. As of September 30, 2025, we had drawn $141,200 under this agreement and recorded interest expenses of $2,118.

Konstantin Lichtenwald, the Chief Financial Officer of the Company from April 2022 to May 2025 is a Managing Director of Zeus Capital Ltd and a principal of Zeus Accounting Solutions Corp., formerly known as Lichtenwald Professional Corp ("LPC"). For the years ended December 31, 2023 and 2024 and the nine months ended September 30, 2025, the Company recorded (i) $180,000, $180,000 and $75,000, respectively, in professional fees in connection with its engagement of Zeus Capital Ltd. to assist the Company with corporate finance and strategic initiatives and (ii) $156,250, $150,000 and $62,500, respectively, in professional fees in connection with its engagement of LPC to provide CFO service fees. As of the date of this prospectus, $137,500 has been accrued for such services in 2025.

David Diamond, previously a member of the Company's Board of Directors from July 2022 to December 2023, provided additional service to the Company in 2023 in connection with its plans for NYSE up-listing. For the years ended December 31, 2023 and 2024, the Company recorded $52,500 and nil, respectively, in professional fees in connection with these services.

Julie Hajduk, previously a member of the Company's Board of Directors from July 2022 to June 2025, is a principal at Purple Crown Communications Corp. For the year ended December 31, 2024, the Company recorded $10,000 in professional fees and $6,000 in marketing fees in connection with services provided by Ms. Hajduk. The total amount recorded for such services for the year ended December 31, 2023 was $22,500. As of the date of this prospectus, no amounts have been accrued for such services in 2025.

Ying Xu, our Chief Financial Officer, entered into an agreement with us on May 31, 2025 to provide us with interim CFO service fees for a fee of $12,500 per month. We recorded $50,000 of professional fees on the consolidated statement of operations for the nine months ended September 30, 2025 and owed $18,750 to Ms. Xu as of September 30, 2025.

Following completion of this offering, our audit committee will have the primary responsibility for reviewing and approving or disapproving "related party transactions," which are transactions between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed the lesser of $120,000 and one percent of our average total assets at year-end in which a related person has or will have a direct or indirect material interest. Related party transactions have the potential to create actual or perceived conflicts of interest between us and our directors, officers and significant stockholders or their immediate family members. Upon completion of this offering, our policy regarding transactions between us and related persons will provide that a related person is defined as a director, executive officer, nominee for director or greater than 5% beneficial owner of any class of our voting securities, in each case since the beginning of the most recently completed year, and any of their immediate family members. Our audit committee charter that will be in effect upon completion of this offering will provide that our audit committee shall review and approve or disapprove any related party transactions.

**SECURITY OWNERSHIP OF PRINCIPAL STOCKHOLDERS AND MANAGEMENT**

Our only outstanding class of voting securities is our common stock. The following table sets forth information known to us about the beneficial ownership of our common stock as of the date of this prospectus by (i) each current director and director nominee; (ii) each named executive officer; and (iii) all of our executive officers and directors as a group. Other than as set forth below, no person known to us beneficially owns 5% or more of the outstanding common stock as of the date of this prospectus.

Unless otherwise indicated in the footnotes, each person listed in the following table has sole voting power and investment power over the common stock listed as beneficially owned by that person. The percentages reflect beneficial ownership immediately prior to and immediately after the completion of this offering and are based on 1,958,080 shares of our common stock outstanding as of as of the date of this prospectus, [ ] shares of our Class A common stock outstanding after the completion of this offering, and 529,142 shares of our Class B common stock outstanding after the completion of this offering. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of common stock subject to options, convertible securities or other rights, held by such person that are currently exercisable or will become exercisable within 60 days of the date of this prospectus, are considered outstanding. We did not, however, deem such shares outstanding for the purpose of computing the percentage ownership of any other person. The percentages are adjusted to reflect the assumed sale of the shares of common stock, but without giving effect to the exercise of the representatives' warrants, and the exercise of the underwriters' option to purchase additional shares of our Class A common stock to cover overallotments, if any. Unless otherwise indicated in the footnotes, the address for each listed person is Direct Communication Solutions, Inc., 11021 Via Frontera, Suite C, San Diego, California 92127.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Named Executive Officers and Directors:** | **Number of**<br> **shares of** <br> **Common**<br> **Stock**<br> **Beneficially**<br> **Owned** <br> **Immediately Before the**<br> **Offering** | **Ownership Percentage and Voting Power** | **Number of**<br> **shares of** <br> **Class A Common**<br> **Stock**<br> **Beneficially**<br> **Owned Immediately**<br> **After the**<br> **Offering** | **Ownership** <br> **Percentage** | **Voting**<br> **Power** | **Number of**<br> **shares of** <br> **Class B Common**<br> **Stock**<br> **Beneficially**<br> **Owned Immediately**<br> **After the**<br> **Offering** |
| William Espley<sup>(1)</sup> | 155908 | 6.2% |  |  |  |  |
| Ying Xu |  |  |  |  |  |  |
| Eric Placzek<sup>(2)</sup> | 98712 | 3.8% |  |  |  |  |
| David Scowby<sup>(3)</sup> | 166428 | 6.3% |  |  |  |  |
| Mike Yao Zhou<sup>(4)</sup> | 529142 | 21.3% |  |  |  |  |
| Shujie Zhong |  |  |  |  |  |  |
| Gunther Schuhmann | 1500 | \* |  |  |  |  |
| Dr. Michael Xing He |  |  |  |  |  |  |
| **All directors and executive officers as a group (eight persons)** | **951690** | **34.7%** |  |  |  |  |
| **5% or Greater Stockholders:** |  |  |  |  |  |  |
| Cede & Co.\*\* | 1131064 | 45.5% |  |  |  |  |
| Superchain Investment One Limited<sup>(5)</sup> | 528571 | 21.3% |  |  |  |  |
| CDS & Co.\*\* | 259679 | 10.4% |  |  |  |  |

---

\* Less than 1%.

\*\* Cede & Co. and CDS & Co. are clearing houses and represent the interest of multiple shareholders and there is no way of knowing if anyone in particular beneficially holds over 10% of the voting rights attached to our shares.

(1) Representing (i) 56,677 shares owned directly by William
Espley, (ii) 42,088 of these shares held by White Tiger Venture Corp. a company controlled by William Espley, (iii) 42,857 held by White
Tiger Management International Ltd., a company controlled by William Espley, and (iv) 14,286 shares underlying options held by William
Espley, which can be exercised at his discretion.

(2) Representing (i) 140 shares owned directly by Eric Placzek and (ii) 98,572 shares underlying options
 held by Eric Placzek, which can be exercised at his discretion.

(3) Representing (i) 20,000 shares owned directly by David Scowby,
(ii) 146,428 shares underlying options held by David Scowby, which can be exercised at his discretion.

(4) Representing 571 shares owned directly by Mike Yao Zhou and
529,092 shares of common stock held by Superchain Investment One Limited, a British Virgin Islands company wholly owned by MCNM International
Holding Limited, a British Virgin Islands company wholly owned by Mike Yao Zhou.

(5) Representing 528,571 shares of common stock held by Superchain
Investment One Limited, a British Virgin Islands company wholly owned by MCNM International Holding Limited, a British Virgin Islands
company wholly owned by Mike Yao Zhou.

**DESCRIPTION OF CAPITAL STOCK**

*The following is a summary of the material provisions of our capital stock, as well as other material terms of our certificate of incorporation and amended and restated bylaws as proposed to be in effect prior to the consummation of the offering. Reference is made to the more detailed provisions of, and the descriptions are qualified in their entirety by reference to, the certificate of incorporation and amended and restated bylaws, forms of which are filed with the SEC as exhibits to the registration statement of which this prospectus is a part, and applicable law.*

**General**

Our authorized capital stock consists of 5,714,286 shares of common stock, par value $0.00001 per share, of which 2,487,222 shares are issued and outstanding as of the date of this prospectus, held by 118 stockholders of record. Upon shareholder approval at our annual general meeting to be held on December 8, 2025, (i) our authorized capital stock will consist of 500,000,000 shares of Class A common stock (each, a "Class A share"), par value $0.00001 per share, and 500,000,000 shares of Class B common stock (each, a "Class B share"), par value $0.00001 per share, (ii) all 2,487,222 shares of our currently issued and outstanding common stock will be designated as Class A common stock, and (iii) Mike Yao Zhou will receive a one-time right to elect to convert 571 Class A shares owned directly by him and 528,571 Class A shares owned indirectly by him into Class B shares on a one-for-one basis, which Mr. Zhou plans to exercise upon the completion of this offering. Upon completion of this offering, there will be [ ] shares of Class A common stock outstanding, after giving effect to the conversion of $[ ] outstanding under a convertible note into [ ] shares of common stock but not the exercise of the underwriters' option to purchase additional shares to cover over-allotments, if any, and 529,142 shares of Class B common stock.

**Common Stock**

*Dividend Rights*

The holders of our common stock are entitled to dividends when and as declared by the Board from funds legally available therefor if, as and when determined by the Board in its sole discretion, subject to provisions of law, and any provision of our certificate of incorporation, as amended from time to time. The payment of dividends on the common stock will be a business decision to be made by our Board from time to time based upon results of our operations and our financial condition and any other factors that our Board considers relevant. Payment of dividends on the common stock may be restricted by loan agreements, indentures and other transactions entered into by us from time to time.

No dividend will be declared or paid on the Class B shares unless we simultaneously declare or pay, as applicable, equivalent dividends (on a per share basis) on the Class A shares. In the event of the payment of a dividend in the form of shares, stockholders of Class A shares shall receive Class A shares, unless otherwise determined by the Board.

*Voting Rights*

Holders of our common stock are entitled to notice of and to attend any meeting of the stockholders of our company, except a meeting of which only stockholders of another particular class or series of shares of our company have the right to vote. Stockholders of Class A shares are entitled to one vote in respect of each Class A share held at each such meeting. Upon (i) our company successfully raising aggregate financing of not less than $10,000,000 and (ii) the shares of our Class A common stock being approved for listing on the NYSE American LLC or NASDAQ and commencing trading on such exchange (collectively, the "Sunrise Conditions"), holders of Class B shares will be entitled to 20 votes per Class B share at each such meeting. Prior to the satisfaction of the Sunrise Conditions, stockholders of Class B shares are entitled to one vote in respect of each Class B share held at each such meeting. Notwithstanding the foregoing, at any meeting of stockholders of Class B shares called to consider a special separate resolution that would authorize or create shares of any class or series having preferences superior to or on a parity with the Class B share, each Class B share will entitle the holder to one vote and each fraction of a Class B share shall entitle the holder to the corresponding fraction of one vote.

Except as described above or except as provided in the DGCL, Class A share and Class B shares are equal in all respects and will vote together as if they were shares of a single class. In connection with any Change of Control Transaction as defined below requiring approval of the stockholders of Class A share and Class B shares under the DGCL, stockholders of Class A share and Class B shares are treated equally and identically, on a per share basis, unless (i) different treatment of the shares of each such class is approved by a majority of the votes cast by the stockholders of outstanding Class A share or their proxyholders in respect of a resolution approving such Change of Control Transaction, voting separately as a class at a meeting of the stockholders of that class called and held for such purpose or (ii) different treatment of the shares of each such class is approved by a majority of the votes cast by the stockholders of outstanding Class B share or their proxyholders in respect of a resolution approving such Change of Control Transaction, voting separately as a class at a meeting of the stockholders of that class called and held for such purpose. A "Change of Control Transaction" means an amalgamation, arrangement, recapitalization, business combination or similar transaction of our company, other than an amalgamation, arrangement, recapitalization, business combination or similar transaction that would result in (i) the voting securities of our company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the continuing entity or its direct or indirect parent) more than 50% of the total voting power of the voting securities of our company, the continuing entity or its direct or indirect parent, and more than 50% of the total number of our outstanding shares, the continuing entity or its direct or indirect parent, in each case as outstanding immediately after such transaction, and (ii) the stockholders of our company immediately prior to the transaction owning voting securities of our company, the continuing entity or its direct or indirect parent immediately following the transaction in substantially the same proportions (vis-a- vis each other) as such stockholders owned the voting securities of our company immediately prior to the transaction (provided that in neither event shall the exercise of any exchangeable shares of a subsidiary of our company that are exchangeable into shares of our company be taken into account in such determination).

Notwithstanding the foregoing, the stockholders of Class A shares are entitled to vote as a separate class, in addition to any other vote of shareholders that may be required, in respect of any alteration, repeal or amendment of our certificate of incorporation which would: (i) adversely affect the rights or special rights of the stockholders of Class A shares, (including an amendment to the terms of our certificate of incorporation which provide that any Class B shares sold or transferred to a person that is not Mike Yao Zhou, any corporation that is directly controlled by Mike Yao Zhou and any corporation directly controlled by a corporation directly controlled by Mike Yao Zhou and organized under the laws of the British Virgin Islands (collectively, a "Permitted Holder") are automatically converted into Class A shares); or (ii) affect the stockholders of Class A shares and Class B shares differently, on a per share basis; or (iii) create any class or series of shares ranking equal to or senior to the Class A shares; and in each case such alteration, repeal or amendment shall not be effective unless a resolution in respect thereof is approved by a majority of the votes cast by stockholders of outstanding Class A shares.

There is no cumulative voting, which means that the holders of a majority of our voting shares will be able to elect all of the directors then standing for election.

*Conversion Rights*

 

If an offer to purchase Class B shares is, by reason of applicable securities legislation or the requirements of any stock exchange on which the Class B shares are listed, made to all or substantially all stockholders of Class B shares and is not made concurrently with an offer to purchase Class A shares that is identical to the offer to purchase Class B shares in terms of price per share and percentage of outstanding shares to be taken up exclusive of shares owned immediately prior to the offer by the offeror, and in all other material respects, and that has no condition attached other than the right not to take up and pay for shares tendered if no shares are purchased pursuant to the offer for Class B shares, each outstanding Class A share are convertible into one (1) Class B share at the option of each holder of Class A shares during the period commencing on the eighth day after such an offer is made and terminating on the last date on which stockholders of Class B shares may accept the offer.

Each Class B share is convertible, at the option of the holder thereof, at any time after the date of issuance of such share at the office of our company or any transfer agent for such shares, into one fully paid and non-assessable Class A share. In addition, upon the first date that any Class B share are held by a person other than by a Permitted Holder by way of transfer, acquisition, purchase and sale agreement or otherwise, the Permitted Holder which held such Class B share until such date, without any further action, will automatically be deemed to have exercised his, her or its rights to convert such Class B share into one fully paid and non- assessable Class A share.

 

*Preemptive or Similar Rights*

Holders of our common stock are not entitled to a right of first refusal to subscribe for, purchase or receive any part of any issue of shares, or bonds, debentures or other securities of our company now or in the future.

*Liquidation Rights*

In the event of the liquidation, dissolution or winding-up of our company, whether voluntary or involuntary, or in the event of any other distribution of assets of our company among its stockholders for the purpose of winding up its affairs, (i) the stockholders of Class A shares shall, subject to the prior rights of the stockholders of any shares of our company ranking in priority to the Class A shares, be entitled to participate ratably in the remaining property of our company along with all stockholders of Class B shares and other stockholders of Class A shares (on a per share basis), and (ii) the stockholders of Class B shares will, subject to the prior rights of the stockholders of any shares of our company ranking in priority to the Class B shares, be entitled to participate ratably along with all other stockholders of Class B shares and Class A share (on a per share basis).

*Alteration to Rights* 

As long as any Class A shares remain outstanding, we will not, without the consent of the stockholders of the Class A shares by separate special resolution alter or amend our certificate of incorporation if the result would (i) prejudice or interfere with any right or special right attached to the Class A shares, or (ii) affect the rights or special rights of stockholders of Class A shares or Class B shares on a per share basis as provided herein.

As long as any Class B shares remain outstanding, we will not, without the consent of the stockholders of the Class B shares by separate special resolution alter or amend our certificate of incorporation if the result would (i) prejudice or interfere with any right or special right attached to the Class B shares, or (ii) affect the rights or special rights of stockholders of Class A shares or Class B shares on a per share basis as provided herein. In addition, we will not take any action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Class B shares without the consent of the stockholders of a majority of the outstanding Class B shares expressed by special separate resolution.

*Stock Split or Reverse Stock Split*

No stock split or reverse stock split of the Class A shares shall occur unless, simultaneously, the Class B shares also undergo a stock split or reverse stock split or otherwise adjusted so as to maintain and preserve the relative rights of the stockholders of the shares of each of the said classes. No stock split and reverse stock split of the Class B shares shall occur unless, simultaneously, the Class A shares are split or reverse split or otherwise adjusted so as to maintain and preserve the relative rights of the stockholders of the shares of each of the said classes.

*Transfer of Class B Shares*

Except in accordance with the terms of any coattail agreement dated the same date as the Class B shares are first issued or as expressly provided herein, including upon conversion into Class A shares, no Class B share may be sold, transferred, assigned, pledged or otherwise disposed of without the written consent of the Board, and the Board is not required to give any reason for refusing to consent to any such sale, transfer or disposition.

**Convertible Securities**

See "Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources" for more details.

**Annual Stockholders Meeting**

Our Amended and Restated Bylaws provide that annual stockholders meetings will be held at a date, time and place, if any, as exclusively selected by our board of directors. To the extent permitted under applicable law, we may conduct meetings by remote communications, including by webcast.

**Indemnification of Directors and Officers**

Our governing documents limit the liability of, and require us to indemnify, our directors to the fullest extent permitted by the DGCL. The DGCL permits a corporation to limit or eliminate a director's personal liability to the corporation or the holders of its capital stock for breaches of directors' fiduciary duties as directors. This limitation is generally unavailable for acts or omissions by a director which (i) were not in good faith, (ii) were the result of intentional misconduct or a knowing violation of law, (iii) the director derived an improper personal benefit from (such as a financial profit or other advantage to which the director was not legally entitled) or (iv) breached the director's duty of loyalty. The DGCL also prohibits limitations on director liability under Section 174 of the DGCL, which relates to certain unlawful dividend declarations and stock repurchases. Our certificate of incorporation and amended and restated bylaws include provisions that eliminate, to the extent allowable under the DGCL, the personal liability of directors or officers for monetary damages for actions taken as a director or officer, as the case may be. Our certificate of incorporation and amended and restated bylaws also provide that we must indemnify and advance reasonable expenses to our directors and officers to the fullest extent authorized by the DGCL. We are also expressly authorized to carry directors' and officers' insurance for our directors, officers and certain employees for certain liabilities. We maintain insurance that insures our directors and officers against certain losses and which insures us against our obligations to indemnify the directors and officers.

There is currently no pending litigation or proceeding involving any of our directors, officers or employees for which indemnification is being sought.

**Delaware Anti-Takeover Statute**

We are subject to Section 203 of the Delaware General Corporation Law, which prohibits persons deemed to be "interested stockholders" from engaging in a "business combination" with a publicly held Delaware corporation for three years following the date these persons become interested stockholders unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. Generally, an "interested stockholder" is a person who, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation's voting stock. Generally, a "business combination" includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by the Board of Directors. A Delaware corporation may "opt out" of these provisions with an express provision in its original certificate of incorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders' amendment approved by at least a majority of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or other takeover or change in control attempts of us may be discouraged or prevented.

**Choice of Forum for Certain Lawsuits**

Our certificate of incorporation provides that (unless we consent in writing to the selection if an alternative forum) the Court of Chancery of the State of Delaware will be the exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a breach of fiduciary duty owed by any director, officer, employee or agent of the Company to us or to our stockholders; (iii) any action asserting a claim arising under the Delaware General Corporation Law or our certificate of incorporation or bylaws or (iv) any action asserting a claim against us that is governed by the internal affairs doctrine.

These exclusive-forum provisions may limit a stockholder's ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. If a court were to find the choice of forum provision to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions.

**Provisions of Our Certificate of Incorporation and Bylaws to be Adopted and Delaware Law That May Have an Anti-Takeover Effect**

Provisions of the DGCL and our certificate of incorporation and amended and restated bylaws could make it more difficult to acquire our company by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of these provisions outweigh the disadvantages of discouraging certain takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms and enhance the ability of our board of directors to maximize stockholder value. However, these provisions may delay, deter or prevent a merger or acquisition of us that a stockholder might consider is in its best interest, including those attempts that might result in a premium over the prevailing market price of our common stock.

*Removal of Directors; Vacancies.*

 

Vacancies and newly created directorships on the board of directors, whether resulting from an increase in the number of directors or the death, removal or resignation of a director, will be filled only by our board of directors and not by stockholders.

*No Cumulative Voting.*

 

The DGCL provides that a stockholder's right to vote cumulatively in the election of directors does not exist unless the certificate of incorporation specifically provides otherwise. Our certificate of incorporation does not provide for cumulative voting.

*Requirements for Advance Notification of Stockholder Meetings, Nominations and Proposals.*

 

Our amended and restated bylaws provide that special meetings of the stockholders may be called only by or at the direction of the board of directors, the chairperson of our board or the chief executive officer. Our amended and restated bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company.

Our amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as director. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with such advance notice procedures and provide us with certain information. Our amended and restated bylaws allow the chairman of the meeting of stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if such rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to influence or obtain control of our company.

*Stockholder Action by Written Consent.*

The DGCL permits any action required to be taken at any annual or special meeting of the stockholders to be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock entitled to vote thereon were present and voted, unless the certificate of incorporation provides otherwise. Our certificate of incorporation precludes stockholder action by written consent.

*Limitations on Liability and Indemnification of Officers and Directors.*

The limitation of liability and indemnification provisions in our certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the settlement costs and damage awards against directors and officers pursuant to these indemnification provisions.

**Preferred Stock**

We have no shares of preferred stock outstanding or authorized.

**Authorized but Unissued Shares**

Our authorized but unissued shares of common stock will be available for future issuance without your approval. The DGCL does not require stockholder approval for any issuance of authorized shares. However, the applicable stock exchange listing requirements require stockholder approval of certain issuances equal to or exceeding 20% of the then-outstanding voting power or the then-outstanding number of shares of common stock. No assurances can be given that our shares will remain so listed. We may use additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock could render more difficult or discourage an attempt to obtain control of our company by means of a proxy contest, tender offer, merger or otherwise.

**Listing**

We have applied to list our Class A common stock on NYSE American under the symbol "DCSX." Our common stock is currently traded on OTCQX under the symbol "DCSX,", the CSE under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." On [ ], 2025, the last reported sale price for our stock on the OTCQX was $[ ] per share.

**Transfer Agent and Registrar**

The transfer agent and registrar for our common stock will be TSX Trust Company, at its principal office in Toronto, Ontario, Canada, and American Stock Transfer & Trust Company, LLC will be appointed to act as co-transfer agent and co-registrar for the purpose of registering our common stock and transfers of our common stock, at its principal office in Brooklyn, New York, United States.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, shares of our common stock were quoted on the OTC Markets Group, Inc. OTCQX Marketplace under the symbol "DCSX," the CSE under the symbol "DCSI," and the Frankfurt Stock Exchange under the symbol "7QU0." Future sales of substantial amounts of our common stock in the public market, or the perception that such sales may occur, could adversely affect market prices prevailing from time to time. Further, because only a limited number of shares will be available for sale shortly after this offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our common stock in the public market after the restrictions lapse. This may adversely affect the prevailing market price and our ability to raise equity capital in the future.

Upon completion of this offering, [ ] shares of Class A common stock and 529,142 shares of Class B common stock will be outstanding. Of these shares, [ ] shares of our Class A common stock (assuming no exercise of the underwriters' option to purchase additional shares, and no exercise or conversion of outstanding options, warrants, or other securities convertible into or exchangeable for shares of our common stock) sold in this offering will be freely transferable without restriction or further registration under the Securities Act, except for any shares purchased by our "affiliates," as that term is defined in Rule 144 under the Securities Act. Of the remaining shares of our common stock that will be outstanding, [ ] shares of Class A common stock and 529,142 shares of Class B common stock are "restricted shares" as defined in Rule 144. Restricted shares may be sold in the public market only if registered under the Securities Act or if they qualify for an exemption from registration under Rule 144. As a result of the contractual 180-day lock-up period described below, the shares subject to lock-up agreements will be available for sale in the public market only after 180 days from the date of this prospectus (generally subject to resale limitations).

**Rule 144**

In general, a person who has beneficially owned restricted shares of our common stock for at least six months would be entitled to sell such securities, provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the 90 days preceding, the sale and (ii) we are subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale. Persons who have beneficially owned restricted shares of our common stock for at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, the sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of the following:

● 1% of the number of shares of our common stock then outstanding, which will equal approximately [ ] shares immediately after this offering; or

● the average weekly trading volume of our common stock on NYSE American during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale;

provided, in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale. Such sales both by affiliates and by non-affiliates must also comply with the manner of sale and notice provisions of Rule 144 to the extent applicable.

**Rule 701**

Rule 701 generally allows a stockholder who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701.

**Lock-up Agreements**

The Company and any successors of the Company, each of our directors and executive officers, and our 5% and greater stockholders, have agreed not to or are otherwise restricted in their ability to, subject to certain limited exceptions, (1) offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our common stock or any securities convertible into or exchangeable or exercisable for common stock, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of the shares of our common stock, (2) file or cause to be filed any registration statement with the SEC relating to the offering of any shares of common stock or any securities convertible into or exercisable or exchangeable for common stock; or (3) enter into any swap or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of common stock, subject to certain exceptions, in the case of the Company and any successors of the Company for a period of three months after the closing of this offering, and in the case of our directors and executive officers and our 5% and greater stockholders for a period of six months after the closing of this offering, without the prior written consent of Chaince Securities, LLC and Revere Securities LLC, as representatives of the underwriters. See "Underwriting—Lock-up Agreements." The underwriters do not have any present intention or arrangement to release any shares of our common stock subject to lock-up arrangements prior to the expiration of the three or six months lock-up period.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The following is a summary of the material U.S. federal income tax consequences relating to the acquisition, ownership, and disposition of common stock acquired pursuant to this offering by non-U.S. holders (as defined below). This summary deals only with common stock held as a capital asset (within the meaning of Section 1221 of the Code) and does not discuss the U.S. federal income tax consequences applicable to a non-U.S. holder that is subject to special treatment under U.S. federal income tax laws, including, but not limited to: a dealer in securities or currencies; a broker-dealer; a financial institution; a qualified retirement plan, individual retirement plan, or other tax-deferred account; a regulated investment company; a real estate investment trust; a tax-exempt organization; an insurance company; a person holding common stock as part of a hedging, integrated, conversion, or straddle transaction or a person deemed to sell common stock under the constructive sale provisions of the Code; a trader in securities that has elected the mark-to-market method of tax accounting; an accrual method taxpayer subject to special tax accounting rules under Section 451(b) of the Code; an entity that is treated as a partnership for U.S. federal income tax purposes; a person that received such common stock in connection with services provided; qualified foreign pension funds as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds; a corporation that is subject to the accumulated earnings tax; a person that owns or has owned, actually or constructively, more than 5% of our common stock; a corporation organized outside the United States, any state thereof or the District of Columbia that is nonetheless treated as a U.S. taxpayer for U.S. federal income tax purposes; a person that is not a non-U.S. holder; a "controlled foreign corporation;" a "passive foreign investment company;" or a U.S. expatriate and former citizens or long-term residents of the United States.

This summary is based upon provisions of the Code, its legislative history, applicable U.S. Treasury regulations promulgated thereunder, published rulings, and judicial decisions, all as in effect as of the date hereof. We have not sought, and will not seek, any ruling from the Internal Revenue Service, or IRS, with respect to the tax consequences discussed herein, and there can be no assurance that the IRS will not take a position contrary to the tax consequences discussed below or that any position taken by the IRS would not be sustained. Those authorities may be repealed, revoked, or modified, perhaps retroactively, or may be subject to differing interpretations, which could result in U.S. federal income tax consequences different from those discussed below. This summary does not address all aspects of U.S. federal income tax, does not deal with all tax considerations that may be relevant to stockholders in light of their personal circumstances, and does not address any state, local, foreign, gift, Medicare, estate (except to the limited extent set forth herein), or alternative minimum tax considerations.

For purposes of this discussion, a "U.S. holder" is a beneficial holder of common stock that is for U.S. federal income tax purposes: an individual citizen or resident of the United States; a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; an estate the income of which is subject to U.S. federal income taxation regardless of its source; or a trust if it (1) is subject to the primary supervision of a court within the United States and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (2) was in existence on August 20, 1996 and has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

For purposes of this discussion, a "non-U.S. holder" is a beneficial owner of common stock that is neither a U.S. holder nor a partnership (or any other entity or arrangement that is treated as a partnership) for U.S. federal income tax purposes regardless of its place of organization or formation. If a partnership (or an entity or arrangement that is treated as a partnership for U.S. federal income tax purposes) holds common stock, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. A partner of a partnership holding common stock is urged to consult its own tax advisors.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL INCOME, ESTATE, AND OTHER TAX CONSEQUENCES OF ACQUIRING, OWNING, AND DISPOSING OF OUR COMMON STOCK IN LIGHT OF THEIR SPECIFIC SITUATIONS, AS WELL AS THE TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL, OR NON-U.S. TAX LAWS AND ANY OTHER U.S. FEDERAL TAX LAWS (INCLUDING THE U.S. FEDERAL ESTATE AND GIFT TAX LAWS) OR UNDER ANY APPLICABLE INCOME TAX TREATY.**

**Distributions on Our Common Stock**

Distributions with respect to common stock, if any, generally will constitute dividends for U.S. federal income tax purposes to the extent paid out of current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. Any portion of a distribution in excess of current or accumulated earnings and profits will be treated as a return of capital and will first be applied to reduce the holder's tax basis in its common stock, but not below zero. Any remaining amount will then be treated as gain from the sale or exchange of the common stock and will be treated as described under "—Disposition of Our Common Stock" below.

Distributions treated as dividends that are paid to a non-U.S. holder, if any, with respect to shares of our common stock, will be subject to U.S. federal withholding tax at a rate of 30% (or such lower rate as may be specified in an applicable income tax treaty, provided the non-U.S. Holder furnishes a valid IRS Form W-8BEN or IRS Form W-8BEN-E (or applicable successor form or other documentation) to us or our paying agent certifying qualification for the lower treaty rate) of the gross amount of the dividends unless the dividends are effectively connected with the non-U.S. holder's conduct of a trade or business in the United States subject to the discussion below regarding foreign accounts and backup withholding. A non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaties.

If a non-U.S. holder is engaged in a trade or business in the United States and dividends with respect to the common stock are effectively connected with the conduct of that trade or business and, if required by an applicable income tax treaty, are attributable to a U.S. permanent establishment, then although the non-U.S. holder will generally be exempt from the 30% U.S. federal withholding tax, provided certain certification requirements are satisfied, the non-U.S. holder will be subject to U.S. federal income tax on those dividends on a net income basis at regular graduated U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. Any such effectively connected income received by a foreign corporation may, under certain circumstances, be subject to an additional branch profits tax equal to 30% (or lower applicable income tax treaty rate) of its effectively connected earnings and profits for the taxable year, as adjusted under the Code. To claim the exemption from withholding with respect to any such effectively connected income, the non-U.S. holder must generally furnish to us or our paying agent a properly executed IRS Form W-8ECI (or applicable successor form). In the case of a non-U.S. holder that is an entity, Treasury regulations and the relevant tax treaty provide rules to determine whether, for purposes of determining the applicability of a tax treaty, dividends will be treated as paid to the entity or to those holding an interest in that entity. If a non-U.S. holder holds stock through a financial institution or other agent acting on the holder's behalf, the holder will be required to provide appropriate documentation to such agent. Such holder's agent will then be required to provide certification to us or our paying agent.

**Disposition of Our Common Stock**

Subject to the discussion below regarding backup withholding, a non-U.S. holder generally will not be subject to U.S. federal income tax on any gain from a sale, exchange or other disposition of our stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that gain is effectively connected with the non-U.S. holder's conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment maintained by the non-U.S. holder);

(b) the non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of that disposition, and certain other conditions are met; or

(c) we are or have been a "United States real property holding corporation" within the meaning of Code Section 897(c)(2) for U.S. federal income tax purposes at any time during the shorter of the five-year period preceding the date of disposition or the holder's holding period for our common stock, and certain other requirements are met.

If a non-U.S. holder is described in clause (a) of the preceding paragraph, the non-U.S. holder will generally be subject to tax on the net gain derived from the disposition at the regular graduated U.S. federal income tax rates in the same manner as if such non-U.S. holder were a U.S. person, unless an applicable income tax treaty provides otherwise. In addition, a non-U.S. holder that is a corporation may be subject to the branch profits tax at a rate equal to 30% (or lower applicable income tax treaty rate) of its effectively connected earnings and profits, as adjusted for certain items.

If the non-U.S. holder is an individual described in clause (b) of the preceding paragraph, the non-U.S. holder will generally be subject to a flat 30% tax on the gain derived from the disposition, which may be offset by U.S.-source capital losses even though the non-U.S. holder is not considered a resident of the United States, provided that the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses.

If the non-U.S. holder is described in clause (c) of the preceding paragraph, the non-U.S. holder will generally be subject to U.S. federal income tax in the same manner as gain that is effectively connected with the conduct of a U.S. trade or business, except that the branch profits tax generally will not apply. Although there can be no assurance, we believe that we are not, and we do not anticipate becoming, a United States real property holding corporation for U.S. federal income tax purposes. Even if we are treated as a United States real property holding corporation, gain realized by a non-U.S. holder on a disposition of our common stock will not be subject to U.S. federal income tax so long as (1) the non-U.S. holder owned, directly, indirectly and constructively, no more than five percent of our common stock at all times within the shorter of (x) the five-year period preceding the disposition, or (y) the holder's holding period, and (2) our common stock is regularly traded on an established securities market. There can be no assurance that our common stock will continue to qualify as regularly traded on an established securities market. If any gain on your disposition is taxable because we are a United States real property holding corporation and your ownership of our common stock exceeds five percent, you will be taxed on such disposition generally in the manner applicable to U.S. persons and in addition, a purchaser of your common stock may be required to withhold tax with respect to that obligation. Such withheld tax is not an additional tax but merely an advance payment, which may be credited against the tax liability of persons subject to such withholding or refunded to the extent it results in an overpayment of tax and the appropriate information is timely supplied to the IRS.

Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**U.S. Federal Estate Tax**

The estate of a nonresident alien individual is generally subject to U.S. federal estate tax on property it is treated as the owner of, or has made certain life transfers of, having a U.S. situs. Because we are a U.S. corporation, our common stock will be U.S. situs property and therefore will be included in the taxable estate of a nonresident alien decedent for U.S. federal estate tax purposes, unless an applicable estate tax treaty between the United States and the decedent's country of residence provides otherwise.

**Information Reporting and Backup Withholding Tax**

We report to our non-U.S. holders and the IRS certain information with respect to any dividends we pay on our common stock, including the amount of dividends paid during each fiscal year, the name and address of the recipient, and the amount, if any, of tax withheld. All distributions to holders of common stock are subject to any applicable withholding. Information reporting requirements apply even if no withholding was required because the distributions were effectively connected with the non-U.S. holder's conduct of a U.S. trade or business or withholding was reduced by an applicable income tax treaty. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the non-U.S. holder resides or is established. Under U.S. federal income tax law, interest, dividends, and other reportable payments may, under certain circumstances, be subject to "backup withholding" at the then applicable rate (currently, 24%). Backup withholding, however, generally will not apply to distributions on our common stock to a non-U.S. holder, provided the non-U.S. holder furnishes to us or our paying agent the required certification as to its non-U.S. status, such as by providing a valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or otherwise establishes an exemption. Notwithstanding the foregoing, backup withholding may apply if either we or our paying agent has actual knowledge, or reason to know, that the holder is a U.S. person that is not an exempt recipient. Backup withholding is not an additional tax but merely an advance payment, which may be credited against the tax liability of persons subject to backup withholding or refunded to the extent it results in an overpayment of tax and the appropriate information is timely supplied to the IRS.

Information reporting and backup withholding will generally apply to the proceeds of a disposition of our common stock by a non-U.S. holder effected by or through the U.S. office of any broker, U.S. or foreign, unless the holder certifies its status as a non-U.S. holder and satisfies certain other requirements, or otherwise establishes an exemption. Generally, information reporting and backup withholding will not apply to a payment of disposition proceeds to a non-U.S. holder where the transaction is effected outside the United States through a non-U.S. office of a broker. However, information reporting but not backup withholding will apply in a manner similar to dispositions effected through a U.S. office of a broker, if a non-U.S. holder sells our common stock through a non-U.S. office of a broker that has certain connections with the United States.

**Withholding on Payments to Foreign Accounts**

Certain withholding taxes may apply under Section 1471 through 1472 of the Code (which are commonly referred to as the Foreign Account Tax Compliance Act ("FATCA")) to certain types of payments made to "foreign financial institutions" (as specially defined under these rules) and certain other non-U.S. entities if certification, information reporting and other specified requirements are not met. A 30% withholding tax may apply to "withholdable payments" if they are paid to a foreign financial institution or to a non-financial foreign entity, unless (a) the foreign financial institution undertakes certain diligence and reporting obligations and other specified requirements are satisfied, (b) the non-financial foreign entity either certifies it does not have any substantial U.S. owners or furnishes identifying information regarding each substantial U.S. owner and other specified requirements are satisfied or (c) the foreign financial institution or non-financial foreign entity otherwise qualified for an exemption from these rules.

"Withholdable payment" generally means any payment of interest, dividends, rents, and certain other types of generally passive income if such payment is from sources within the United States. U.S. Treasury Regulations proposed in December 2018 (and upon which taxpayers and withholding agents are entitled to rely until final regulations are issued) eliminate possible withholding under these rules on the gross proceeds from any sale or other disposition of our common stock, previously scheduled to apply beginning January 1, 2019. If the payee is a foreign financial institution, it must enter into an agreement with the U.S. Treasury requiring, among other things, that it undertake to identify accounts held by certain U.S. persons or U.S.-owned foreign entities, annually report certain information about such accounts and withhold 30% on payments to account holders whose actions prevent it from complying with these reporting and other requirements, or comply with comparable requirements under an applicable inter-governmental agreement between the United States and the foreign financial institution's home jurisdiction. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. If an investor does not provide us with the information necessary to comply with these rules, it is possible that distributions to such investor that are attributable to withholdable payments, such as dividends, will be subject to the 30% withholding tax.

Holders should consult their own tax advisers regarding the implications of FATCA on their investment in shares of our common stock.

**UNDERWRITING**

Chaince Securities, LLC ("Chaince") and Revere Securities LLC are acting as representatives of the underwriters. Subject to the terms and conditions of an underwriting agreement between us and the representatives, we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of Class A common stock listed next to its name in the following table:

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| | |
|:---|:---|
| **Underwriters:** | **Number of<br> Shares** |
| Chaince Securities, LLC |  |
| Revere Securities LLC |  |
| **Total** |  |

---

The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares of Class A common stock offered by this prospectus are subject to various conditions and representations and warranties, including the approval of certain legal matters by their counsel and other conditions specified in the underwriting agreement. The shares of Class A common stock are offered by the underwriters, subject to prior sale, when, as and if issued to and accepted by them. The underwriters reserve the right to withdraw, cancel or modify the offer to the public and to reject orders in whole or in part. The underwriters are obligated to take and pay for all of the shares of Class A common stock offered by this prospectus if any such securities are taken, other than those securities covered by the over-allotment option described below. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below unless and until such time as it elects to exercise such option. The underwriters will offer the shares to the public at the initial public offering price set forth on the cover of this prospectus and to selected dealers at the initial public offering price less a selling concession not in excess of $[ ] per share. After this offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the representative. No change in those terms will change the amount of proceeds to be received by us as set forth on the cover of this prospectus.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, liabilities arising from breaches of representations and warranties contained in the underwriting agreement, and to contribute to payments the underwriters may be required to make in respect thereof.

**Over-Allotment Option**

We have granted the underwriters an over-allotment option. This option, which is exercisable for up to 45 days after the closing of this offering, permits the underwriters to purchase up to an aggregate of up to [ ] additional shares of Class A common stock, representing 15% of the shares of Class A common stock sold in the offering. The purchase price to be paid per additional share of common stock shall be equal to the public offering price of one share of common stock, less the underwriting discount. The underwriters may exercise this option in full or in part at any time and from time to time within such 45 days period.

To the extent this option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase, and we will be obligated to sell the additional shares in about the same percentage of the additional shares of Class A common stock as the number listed next to such underwriter's name in the preceding table bears to the total number of shares of Class A common stock listed next to the name of each underwriter in the preceding table.

**Discounts, Commissions and Reimbursement**

The underwriters propose initially to offer the shares of Class A common stock to the public at the public offering price set forth on the cover page of this prospectus. Any shares of Class A common stock sold by the underwriters to securities dealers may be sold at a discount of up to $ per share (7.5% of the public offering price) from the public offering price. If all of the shares of Class A common stock offered by us are not sold at the public offering price, the underwriters may change the offering price and other selling terms by means of a supplement to this prospectus.

The following table shows the public offering price, underwriting discounts and commissions and proceeds, before expenses, to us. The information assumes either no exercise or full exercise of the over-allotment option we granted to the representatives of the underwriters.

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| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without<br> Over-Allotment<br> Option** | **Total With Full<br> Over-Allotment<br> Option** |
| Public offering price | $| $| $|
| Underwriting discounts and commissions (7.5%) | $| $| $|
| Proceeds, before expenses to us | $| $| $|
| Non-accountable expense allowance (1.0%)<sup>(1)</sup> | $| $| $|

---

We have agreed to pay a non-accountable expense allowance to the underwriters equal to 1.0% of the gross proceeds received at the completion of the offering. Additionally, we have agreed to pay the representatives an advisory fee of $50,000 ($20,000 upon signing of certain engagement letter agreement dated October 1, 2025 (the "Engagement Letter"), and the remaining $30,000 to be paid upon the first public filing of the registration statement of this prospectus forms a part.

We have agreed to be responsible for and pay all reasonable, necessary and accountable out-of-pocket expenses relating to the offering, including, without limitation (i) all filing fees and communication expenses relating to the registration of the securities to be sold in the offering (including the securities subject to the underwriters' over-allotment option) with the SEC; (ii) all filing fees and expenses associated with the review of the offering by FINRA; (iii) all fees and expenses relating to the listing of the shares of our common stock to be sold in the offering (including the shares of Class A common stock issuable upon exercise of the representatives' warrants) on NYSE American, or such other national securities exchange on which our common stock may be listed, including any fees charges by The Depository Trust for new securities; (iv) all fees, expenses and disbursements relating to background checks of our officers, directors and related entities; (v) all fees, expenses and disbursements relating to the registration or qualification of such shares of Class A common stock under the "blue sky" securities laws of such states, if applicable, as the representatives may reasonably designate; (vi) all fees, expenses and disbursements relating to the registration, qualification or exemption of such shares of Class A common stock under the securities laws of such foreign jurisdictions as the representatives may reasonably designate; (vii) the costs of all mailing and printing of the underwriting documents (including, without limitation, the underwriting agreement, any blue sky surveys and, if appropriate, any agreement among underwriters, selected dealers' agreement, underwriters' questionnaire and power of attorney), registration statements, prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final prospectuses as the representatives may reasonably deem necessary; (viii) the costs and expenses of a public relations firm; (ix) the costs of preparing, printing and delivering certificates representing the common stock in the event that we determine to deliver certificated shares of Class A common stock; (x) fees and expenses of the transfer agent for the shares of Class A common stock; (xi) stock transfer and/or stamp taxes, if any, payable upon the transfer of securities from us to the underwriters; (xii) the costs associated with post-Closing advertising the offering in the national editions of the Wall Street Journal and New York Times; (xiii) the costs associated with bound volumes of the public offering materials as well as commemorative mementos and Lucite tombstones, each of which we or our designee will provide within a reasonable time after the closing of this offering in such quantities as the representatives may reasonably request; (xiv) the fees and expenses of our accountants; (xv) the fees and expenses of our legal counsel and other agents and representatives; (xvi) the fees and expenses of the underwriter's legal counsel; (xvii) the cost associated with the underwriters' use of Ipreo's book-building, prospectus tracking and compliance software for the offering; (xviii) data services and communications expenses, (xix) the underwriters' actual accountable "road show" expenses and (xx) the representatives' market making and trading, and clearing firm settlement expenses for the offering.

We have agreed to reimburse the underwriters, promptly when invoiced, for all of its reasonable, out-of-pocket expenses (including, but not limited to, travel, due diligence expenses, reasonable fees and expenses of its legal counsel, roadshow and background check on the Company's principals) in connection with the performance of its services hereunder not to exceed an aggregate of $250,000, regardless of whether the offering occurs, provided that any expense over $5,000 shall require prior written or email approval of the Company. Upon the earlier of the termination of the Engagement Letter or the closing of the offering, we have agreed to pay promptly in cash any unreimbursed expenses that have accrued as of such date. Any expense advancement will be returned to us to the extent the representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).

Our total estimated expenses of the offering, including registration, filing and listing fees, printing fees and legal and accounting expenses, but excluding underwriting discounts and commissions, are approximately $[ ].

**Representative's Warrants**

Upon closing of this offering, we have agreed to issue to the representatives, or their designees, the Warrants equal to five percent (5%) of the total numbers of shares of Class A common stock issued in this offering (including any shares of Class A common stock sold as a result of the exercise of the underwriters' over-allotment option), exercisable at any time and from time to time, in whole or in part, during the two and a half-year period commencing six months immediately following the date of commencement of sales of the securities issued in this offering, at a per share price equal to one hundred twenty percent (120%) of the initial public offering price, for nominal consideration and may be exercised on a cashless basis.

The Warrants and the shares of Class A common stock underlying the Warrants have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to FINRA Rule 5110(e)(1)(A). The representative and its affiliates or employees (or permitted assignees under FINRA Rule 5110(e)(1)) may not sell, transfer, assign, pledge, or hypothecate the Warrants or the shares of Class A common stock underlying the Warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Warrants or the underlying shares for a period of 180 days following the date of commencement of sales of the public offering except as permitted by FINRA Rule 5110(e)(2), except that (i) they may be transferred, in whole or in part, to any member participating in the offering and its officers or partners, its registered persons or affiliates, if all transferred securities remain subject to the lock-up restriction for the remainder of the 180-day lock-up period pursuant to FINRA Rule 5110(e)(2)(B)(i), (ii) they may be exercised or converted, in whole or in part, if all securities received remain subject to the lock-up restriction for the for the remainder of the 180-day lock-up period, (iii) they may be transferred back to the issuer in a transaction exempt from registration with the SEC, or other exceptions as provided under FIRNA Rule 5110(e)(2). The representative and its affiliates or employees will also be entitled to one demand registration of the sale of the shares underlying the Warrants at our expense and unlimited "piggyback" registration rights for a period of three years at our expenses. The Warrants will provide for adjustment in the number and price of such warrants and the shares underlying such warrants in the event of recapitalization, merger, or other structural transaction to prevent mechanical dilution. The piggyback registration right provided will not be greater than seven years from the date of commencement of sales of the offering in compliance with FINRA Rule 5110(g)(8)(D).

We will bear all fees and expenses attendant to registering the shares of Class A common stock issuable upon exercise of the Warrants, other than underwriting discounts and commissions incurred and payable by the holders. The exercise price and number of shares of Class A common stock issuable upon exercise of the Warrants may also be adjusted in certain circumstances, including in the event of a share dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The warrant exercise price and/or underlying shares may also be adjusted for issuances of shares of Class A common stock at a price below the warrant exercise price.

**Lock-Up Agreements**

Pursuant to "lock-up" agreements, the Company and any successors of the Company, our executive officers and directors, and holders of 5% or greater of our outstanding shares of common stock, have agreed, without the prior written consent of the representatives not to (1) directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of) our common stock, (2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, (3) file or make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of ours or publicly disclose the intention to do any of the foregoing, subject to customary exceptions, for a period of six (6) months in the case of our executive officers and directors and holders of 5% or greater of our outstanding shares of common stock, and thee (3) months in the case of the Company and any successors of the Company , after the closing date of this offering.

**Right of First Refusal**

Until six months from the closing date of this offering, Chaince will have an irrevocable right of first refusal to provide investment banking services to the Company on an exclusive basis in the matters below, at Chaince's sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such six month period for us, or any successor to our Company or any subsidiary of our Company, on terms and conditions customary to Chaince. Chaince will have the sole right to determine whether or not any other broker-dealer will have the right to participate in any such offering and the economic terms of any such participation. For these purposes, investment banking services shall include, (a) acting as lead or joint-lead manager for any underwritten public offering; (b) acting as lead or joint book-runner and/or lead or joint placement agent, initial purchaser in connection with any private offering of securities of the Company; and (c) acting as financial advisor in connection with any sale or other transfer by the Company, directly or indirectly, of a majority or controlling portion of its capital stock or assets to another entity, any purchase or other transfer by another entity, directly or indirectly, of a majority or controlling portion of the capital stock or assets of the Company, and any merger or consolidation of the Company with another entity. In compliance with FINRA Rule 5110(g)(6)(A), in no circumstances the right of first refusal shall have a duration of more than three years from the commencement of sales of the public offering or the termination date of the engagement between the Company and Chaince. The right of first refusal granted hereunder may be terminated by the Company for "Cause," which shall mean a material breach by Chaince of the Engagement Letter or a material failure by Chaince to provide the services as contemplated by the Engagement Letter.

**Discretionary Accounts**

The underwriters do not intend to confirm sales of the shares of Class A common stock offered hereby to any accounts over which they have discretionary authority.

**NYSE American Listing**

We have applied to list our common stock on NYSE American under the symbol "DCSX". No assurance, however, can be given that our application will be approved. This offering will only occur if a national securities exchange approves the listing of our common stock.

**Determination of Offering Price**

The public offering price of the common stock we are offering was negotiated between us and the underwriters. Factors considered in determining the public offering price of the common stock include our history and prospects, the stage of development of our business, our business plans for the future and the extent to which they have been implemented, an assessment of our management, general conditions of the securities markets at the time of the offering and such other factors as were deemed relevant.

**Other Relationships**

From time to time, certain of the underwriters and/or their affiliates may in the future provide, various investment banking and other financial services for us for which they may receive customary fees. In the course of their businesses, the underwriters and their affiliates may actively trade our securities or loans for their own account or for the accounts of customers, and, accordingly, the underwriters and their affiliates may at any time hold long or short positions in such securities or loans. Except for services provided in connection with this offering, no underwriter has provided any investment banking or other financial services to us during the 180-day period preceding the date of this prospectus and we do not expect to retain any underwriter to perform any investment banking or other financial services for at least 90 days after the date of this prospectus.

**Price Stabilization, Short Positions and Penalty Bids**

The underwriters may also impose a penalty bid. This occurs when a particular underwriter or dealer repays selling concessions allowed to it for distributing common stock in this offering because the underwriter repurchases the common stock in stabilizing or short covering transactions.

Finally, the underwriters may bid for, and purchase, securities in market making transactions, including "passive" market making transactions as described below.

These activities may stabilize or maintain the market price of our common stock at a price that is higher than the price that might otherwise exist in the absence of these activities. The underwriters are not required to engage in these activities, and may discontinue any of these activities at any time without notice. These transactions may be effected on the national securities exchange on which shares of our common stock are traded, in the over-the-counter market, or otherwise.

In connection with this offering, the underwriters or their affiliates may engage in passive market making transactions in our securities immediately prior to the commencement of sales in this offering, in accordance with Rule 103 of Regulation M under the Exchange Act. Rule 103 generally provides that:

● a passive market maker may not effect transactions or display bids for our common stock in excess of the highest independent bid price by persons who are not passive market makers;

● net purchases by a passive market maker on each day are generally limited to 30% of the passive market maker's average daily trading volume in our common stock during a specified two-month prior period or 200 shares of Class A common stock, whichever is greater, and must be discontinued when that limit is reached; and

● passive market making bids must be identified as such.

**Indemnification**

We have agreed to indemnify the underwriters against liabilities relating to this offering arising under the Securities Act and the Exchange Act, liabilities arising from breaches of some or all of the representations and warranties contained in the underwriting agreement, and to contribute to payments that the underwriters may be required to make for these liabilities.

**Electronic Distribution**

This prospectus in electronic format may be made available on websites or through other online services maintained by one or more of the underwriters, or by their affiliates. Other than this prospectus in electronic format, the information on any underwriter's website and any information contained in any other website maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

**Selling Restrictions**

No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of our securities, or the possession, circulation or distribution of this prospectus or any other material relating to us or our securities in any jurisdiction where action for that purpose is required. Accordingly, our securities may not be offered or sold, directly or indirectly, and this prospectus or any other offering material or advertisements in connection with our securities may be distributed or published, in or from any country or jurisdiction, except in compliance with any applicable rules and regulations of any such country or jurisdiction. ****

 ****

***Abu Dhabi Global Market ("ADGM").*** This prospectus relates to an Exempt Offer as that term is defined in Rule 4.3.1 of the Markets Rulebook of the Financial Services Regulatory Authority ("FSRA"). This prospectus is intended for distribution only to persons of a type specified in 4.3.1 of the FSRA Markets Rulebook. It must not be delivered to, or relied on by, any other person. The FSRA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The FSRA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for this prospectus. The Class A common stock to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the Class A common stock offered should conduct their own due diligence on the Class A common stock. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

 **

***Australia. This prospectus:***

 **

● does not constitute a product disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001 (the "Corporations Act");

● has not been, and will not be, lodged with the Australian Securities and Investments Commission ("ASIC"), as a disclosure document for the purposes of the Corporations Act and does not purport to include the information required of a disclosure document under Chapter 6D.2 of the Corporations Act;

● does not constitute or involve a recommendation to acquire, an offer or invitation for issue or sale, an offer or invitation to arrange the issue or sale, or an issue or sale, of interests to a "retail client" (as defined in section 761G of the Corporations Act and applicable regulations) in Australia; and

● may only be provided in Australia to select investors who are able to demonstrate that they fall within one or more of the categories of investors, or Exempt Investors, available under section 708 of the Corporations Act.

The Class A common stock may not be directly or indirectly offered for subscription or purchased or sold, and no invitations to subscribe for or buy the Class A common stock may be issued, and no draft or definitive offering memorandum, advertisement or other offering material relating to any Class A common stock may be distributed in Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is otherwise in compliance with all applicable Australian laws and regulations. By submitting an application for the Class A common stock, you represent and warrant to us that you are an Exempt Investor.

As any offer of Class A common stock under this prospectus will be made without disclosure in Australia under Chapter 6D.2 of the Corporations Act, the offer of those securities for resale in Australia within 12 months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none of the exemptions in section 708 applies to that resale. By applying for the Class A common stock, you undertake to us that you will not, for a period of 12 months from the date of issue of the Class A common stock, offer, transfer, assign or otherwise alienate those securities to investors in Australia except in circumstances where disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure document is prepared and lodged with ASIC.

This prospectus contains general information only and does not take account of the investment objectives, financial situation, or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

***Canada.*** The Class A common stock may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the Class A common stock must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the Underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

***Dubai International Financial Centre ("DIFC")***. This prospectus relates to an Exempt Offer in accordance with the Markets Rules 2012 of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Markets Rules 2012 of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus supplement nor taken steps to verify the information set forth herein and has no responsibility for this prospectus. The securities to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. If you do not understand the contents of this prospectus you should consult an authorized financial advisor.

In relation to its use in the DIFC, this prospectus is strictly private and confidential and is being distributed to a limited number of investors and must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purpose. The interests in the securities may not be offered or sold directly or indirectly to the public in the DIFC.

***European Economic Area***. In relation to each Member State of the European Economic Area (each a "Member State"), no Class A common stock have been offered or will be offered pursuant to the offering to the public in that Member State prior to the publication of a prospectus in relation to the Class A common stock which has been approved by the competent authority in that Member State or, where appropriate, approved in another Member State and notified to the competent authority in that Member State, all in accordance with the Prospectus Regulation, except that offers of Class A common stock may be made to the public in that Member State at any time under the following exemptions under the Prospectus Regulation:

● to any legal entity which is a qualified investor as defined under the Prospectus Regulation;

● to fewer than 150 natural or legal persons (other than qualified investors as defined under the Prospectus Regulation), subject to obtaining the prior consent of the Underwriters for any such offer; or

● in any other circumstances falling within Article 1(4) of the Prospectus Regulation.

provided that no such offer of shares shall require us or any of our representatives to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with the representative and us that it is a "qualified investor" as defined in the Prospectus Regulation.

In the case of any shares being offered to a financial intermediary as that term is used in Article 5 of the Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed that the shares acquired by it in the offer have not been acquired on a nondiscretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public other than their offer or resale in a Member State to qualified investors as so defined or in circumstances in which the prior consent of the representative has been obtained to each such proposed offer or resale.

For the purposes of this provision, the expression an "offer to the public" in relation to any Class A common stock in any Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any Class A common stock to be offered so as to enable an investor to decide to purchase or subscribe for any Class A common stock, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

***France***. This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code Monétaire et Financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des Marchés Financiers ("AMF"). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation; and/or (ii) a restricted number of non-qualified investors (cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2 and D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

***Ireland.*** The information in this document does not constitute a prospectus under any Irish laws or regulations, and this document has not been filed with or approved by any Irish regulatory authority, as the information has not been prepared in the context of a public offering of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations"). The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations; and (ii) fewer than 100 natural or legal persons who are not qualified investors.

***Hong Kong.*** The Class A common stock have not been offered or sold and will not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32, Laws of Hong Kong), or (ii) to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules promulgated thereunder, or (iii) in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32, Laws of Hong Kong), and no advertisement, invitation or document relating to the Class A common stock has been or may be issued or has been or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to Class A common stock which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules promulgated thereunder.

***Israel.*** The securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection with the offering or publishing of the prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities laws and regulations.

***Italy***. The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Societ - $$- Aga e la Borsa, "CONSOB") pursuant to Italian securities legislation, and, accordingly, no offering material relating to the securities may be distributed in Italy, and such securities may not be offered or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998 ("Decree No. 58"), other than:

 ****

● to Italian qualified investors, as defined in Article 100 of Decree no. 58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999 ("Regulation no. 1197l") as amended ("Qualified Investors"); and

 ****

● in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.

Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

● made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and

● in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and Regulation No. 11971, as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

 

***Japan***. The Class A common stock have not been and will not be registered under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) and, accordingly, will not be offered or sold directly or indirectly in Japan or to, or for the benefit of any Japanese person or to others, for re-offering or re-sale directly or indirectly in Japan or to any Japanese person, except in each case pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Securities and Exchange Law of Japan and any other applicable laws, rules and regulations of Japan. For purposes of this paragraph, "Japanese person" means any person resident in Japan, including any corporation or other entity organized under the laws of Japan.

***People's Republic of China.*** This prospectus may not be circulated or distributed in the PRC and the Class A common stock may not be offered or sold and will not offer or sell to any person for re-offering or resale directly or indirectly to any resident of the PRC except pursuant to applicable laws, rules and regulations of the PRC. For the purpose of this paragraph only, the PRC does not include Taiwan and the special administrative regions of Hong Kong and Macau.

***Portugal***. This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales, and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document, and they may not distribute it or the information contained in it to any other person.

***Qatar.*** In the State of Qatar, the offer contained herein is made on an exclusive basis to the specifically intended recipient thereof, upon that person's request and initiative, for personal use only and shall in no way be construed as a general offer for the sale of securities to the public or an attempt to do business as a bank, an investment company, or otherwise in the State of Qatar. This prospectus and the underlying securities have not been approved or licensed by the Qatar Central Bank or the Qatar Financial Centre Regulatory Authority or any other regulator in the State of Qatar. The information contained in this prospectus shall only be shared with any third parties in Qatar on a need to know basis for the purpose of evaluating the contained offer. Any distribution of this prospectus by the recipient to third parties in Qatar beyond the terms hereof is not permitted and shall be at the liability of such recipient.

***Saudi Arabia.*** This prospectus may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations issued by the Capital Market Authority. The Capital Market Authority does not make any representation as to the accuracy or completeness of this prospectus, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this prospectus. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this prospectus you should consult an authorized financial adviser.

***Singapore.*** This prospectus or any other offering material relating to the Class A common stock has not been registered as a prospectus with the Monetary Authority of Singapore under the Securities and Futures Act, Chapter 289 of Singapore, or the SFA. Accordingly, (a) the Class A common stock have not been, and will not be, offered or sold or made the subject of an invitation for subscription or purchase of such Class A common stock in Singapore, and (b) this prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Class A common stock have not been and will not be circulated or distributed, whether directly or indirectly, to the public or any member of the public in Singapore other than (i) to an institutional investor as specified in Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275 of the SFA) and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where the Class A common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Class A common stock pursuant to an offer made under Section 275 of the SFA except:

(a) to an institutional investor or to a relevant person defined in Section 275(2) of the SFA, or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the SFA;

(b) where no consideration is or will be given for the transfer;

(c) where the transfer is by operation of law;

(d) as specified in Section 276(7) of SFA; or

(e) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore.

***Sweden.*** This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document, and they may not distribute it or the information contained in it to any other person.

***Switzerland.*** The Class A common stock will not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other stock exchange or regulated trading facility in Switzerland. This prospectus has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this prospectus nor any other offering or marketing material relating to our Company or the Class A common stock have been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offer of the Class A common stock will not be supervised by, the Swiss Financial Market Supervisory Authority, and the offer of the Class A common stock has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the Class A common stock.

***Taiwan.*** The Class A common stock have not been and will not be registered or filed with, or approved by the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be offered or sold within Taiwan through a public offering or in circumstances which constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or relevant laws and regulations that requires a registration, filing or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer, sell, give advice regarding or otherwise intermediate the offering and sale of the Class A common stock in Taiwan.

***United Arab Emirates Outside of the DIFC and the ADGM.*** This prospectus has not been reviewed, approved, or licensed by the Securities and Commodities Authority ("SCA") and does not constitute a public offering of securities in the UAE as that term is defined in SCA Chairman Resolution No. 13/R.M. of 2021 Concerning the Regulations Manual of the Financial Activities and Status Regularization Mechanisms Rulebook ("SCA Rulebook"). This prospectus will only be made available on an exempt Private Offering basis pursuant to Article 6, Chapter 5, of Section 3 of the SCA Rulebook to Professional Investors or Counterparties, as each of the terms is defined in the SCA Rulebook, respectively, or on a reverse solicitation basis. Nothing in this prospectus constitutes the provision of any type of financial service engagement in any of the financial activities set out in Article 1, Chapter 2 of the SCA Rulebook.

The SCA accepts no liability in relation to the marketing, issuance and/or sale of the shares and is not making any recommendation with respect to any investment. Nothing contained in this prospectus is intended to constitute UAE investment, legal, tax, accounting or other professional advice. This prospectus is for the information of prospective investors only and nothing in this prospectus is intended to endorse or recommend a particular course of action. Prospective investors should consult with an appropriate professional for specific advice rendered on the basis of their situation.

***United Kingdom.*** This prospectus is only being distributed to and is only directed at, and any offer subsequently made may only be directed at: (i) persons who are outside the United Kingdom; (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons falling within (1)-(3) together being referred to as "relevant persons"). The Class A common stock are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the Class A common stock will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this prospectus or any of its contents.

**LEGAL MATTERS**

The validity of the shares of common stock offered hereby will be passed upon for us by Rimon, P.C. McLaughlin & Stern, LLP is acting as counsel for the underwriters.

**EXPERTS**

The consolidated financial statements of Direct Communication Solutions, Inc. as of December 31, 2024 and 2023 and for the years then ended included in this prospectus have been so included in reliance on the reports of Davidson & Company LLP, an independent registered public accounting firm, which are included herein, given on the authority of said firm as experts in auditing and accounting.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act, with respect to the shares of Class A common stock being offered by this prospectus. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

Upon completion of this offering, we will be subject to the information and periodic requirements of the Exchange Act and, in accordance therewith, file annual, quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address is www.sec.gov. We also maintain a website at www.dcsbusiness.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus. You may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **Audited Consolidated Financial Statements** |  |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID 731)](#f_001) | F-3 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2023](#f_002) | F-4 |
| [Consolidated Statements of Operations for the years ended December 31, 2024 and 2023](#f_003) | F-5 |
| [Consolidated Statements of Stockholders Equity (Deficit) for the years ended December 31, 2024 and 2023](#f_004) | F-6 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023](#f_005) | F-7 |
| [Notes to Consolidated Financial Statements](#f_006) | F-8 |

---

---

| | |
|:---|:---|
|  | **Page** |
| **Unaudited Condensed Consolidated Financial Statements** |  |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID 731)](#s_001) |  |
| [Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024](#f_007) | F-29 |
| [Condensed Consolidated Statements of Operations for the nine months ended September 30, 2025 and 2024](#f_008) | F-30 |
| [Condensed Consolidated Statements of Stockholders Equity (Deficit) for the nine months ended September 30, 2025 and 2024](#f_009) | F-31 |
| [Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024](#f_010) | F-32 |
| [Notes to Condensed Consolidated Financial Statements](#f_011) | F-33 |

---

![](image_005.jpg)

Direct Communication Solutions, Inc.

Consolidated Financial Statements <br> December 31, 2024 and 2023

![](image_006.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Directors of Direct Communication Solutions, Inc.

 **

***Opinion on the Consolidated Financial Statements***

 **

We have audited the accompanying consolidated balance sheets of Direct Communication Solutions, Inc. (the "Company"), as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' deficiency, and cash flows for the years ended December 31, 2024 and 2023, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Direct Communication Solutions, Inc. as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America.

***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 consolidated financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to 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 consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated 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 consolidated 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 misstatements 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the Company's auditor since 2017.

---

| | |
|:---|:---|
|  | **/s/ DAVIDSON & COMPANY LLP** |
| Vancouver, Canada | Chartered Professional Accountants |
| June 6, 2025 |  |

---

![](image_007.jpg)

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**CONSOLIDATED BALANCE SHEETS**

 **(in U.S. Dollars)**

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | December 31, <br> 2023 |
| **ASSETS** | **$** | $ |
| **Current** |  |  |
| Cash |  |  |
| Restricted cash |  |  |
| Accounts and other receivables, net of allowance of $66,055 and $175,283 respectively |  |  |
| Inventory, net of provision of $505,218 and $308,646 respectively |  |  |
| Prepaid expenses |  |  |
| **Current assets** |  |  |
| Equipment |  |  |
| Security deposit |  |  |
| Right-of-use assets |  |  |
| **Total assets** |  |  |
| **LIABILITIES AND SHAREHOLDERS' DEFICIENCY** |  |  |
| **Current** |  |  |
| Accounts payable |  |  |
| Accrued liabilities |  |  |
| Credit facility |  |  |
| Current debt |  |  |
| Deferred revenue |  |  |
| Derivative instrument |  |  |
| Lease liabilities |  |  |
| **Current liabilities** |  |  |
| Lease liabilities |  |  |
| Long term debt |  |  |
| Long term accounts payable |  |  |
| **Total liabilities** |  |  |
| **Stockholders' deficiency** |  |  |
| Common stock, no par value; 5,714,286 shares authorized; 2,305,079 shares issued and outstanding; |  |  |
| At December 31, 2024 and 2023 |  |  |
| Reserves |  |  |
| Accumulated deficit |  |  |
| **Total stockholders' deficiency** |  |  |
| **Total liabilities and shareholders' deficiency** |  |  |

---

---

| | |
|:---|:---|
| Nature of Operations and Significant Accounting Policies (Note 1) Commitments (Note 15) |  |
| Approved on June 4, 2025 on behalf of the Board: |  |
| "Chris Bursey" | "Bill Epsley" |
| Chris Bursey – CEO & Director | Bill Epsley – Director |

---

The accompanying notes are an integral part of these consolidated financial statements.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in U.S. Dollars)**

---

| |
|:---|
| **Revenues** |
| &nbsp;&nbsp;&nbsp;Products |
| &nbsp;&nbsp;&nbsp;Solutions and other services |
| Total revenues |
| **Cost of Revenues** |
| &nbsp;&nbsp;&nbsp;Products |
| &nbsp;&nbsp;&nbsp;Solutions and other services |
| Total cost of revenues |
| **Gross profit** |
| **OPERATING EXPENSES** |
| Research and development |
| General and administrative |
| &nbsp;&nbsp;&nbsp;Compensation and benefits |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |
| &nbsp;&nbsp;&nbsp;Professional fees |
| &nbsp;&nbsp;&nbsp;Bank fees and interest |
| &nbsp;&nbsp;&nbsp;Bad debt expense (recovery)**)** |
| &nbsp;&nbsp;&nbsp;Facilities |
| &nbsp;&nbsp;&nbsp;Information technology |
| &nbsp;&nbsp;&nbsp;Advertising and marketing |
| &nbsp;&nbsp;&nbsp;Other |
| Total operating expenses |
| **Loss from operations)** |
| **Other income (expense):** |
| Changes in fair value of derivative**)** |
| Rental income |
| Expense recovery |
| Gain on debt extinguishment |
| Impairment of intangible) |
| Interest expense and accretion**)** |
| **Net income (loss))** |
| Weighted average number of common stock: Basic |
| Diluted |
| Basic loss per share) |
| Diluted loss per share) |

---

The accompanying notes are an integral part of these consolidated financial statements.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (in U.S. Dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of**<br> **Common Stock (1)** | **Common Stock Amount** | <br>**Reserves** |
|  | | $ | $ |
| **Balance, January 1, 2023** | **2305091** | **61** | **7226964** |
| Stock-based compensation expense |  |  | 138047 |
| Share consolidation ratio adjustment | (12) |  | **-** |
| Net loss for the year | - | - | **-** |
| **Balance, December 31, 2023** | **2305079** | **61** | **7365011** |
| **Balance, January 1, 2024** | **2305079** | **61** | **7365011** |
| Stock-based compensation expense |  |  | 128256 |
| Net loss for the year | - | - | **-** |
| **Balance, December 31, 2024** | **2305079** | **61** | **7493267** |

---

(1) As of February 9, 2023, the Company proceeded with a Share Consolidation
of the Company's shares at a consolidation ratio of 7-for-1. As a result, the comparative periods have been retroactively restated
to reflect the Share Consolidation for numbers of shares and warrants. See Note 8 - Common Stock and Common Stock Warrants for more information.

The accompanying notes are an integral part of these consolidated financial statements

**DIRECT COMMUNICATION SOLUTIONS, INC.<br> CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in U.S. Dollars)**

---

| |
|:---|
| Cash provided by / (used for): |
| Operating Activities: |
| Net loss for the year) |
| &nbsp;&nbsp;&nbsp;Items not affecting cash: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion and Interest on convertible debentures and promissory notes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of lease liability |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on debt extinguishment**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of intangible |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for excess and obsolete inventory) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative adjustment to fair market value) |
| &nbsp;&nbsp;&nbsp;Net change in non-cash working capital items: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts and other receivables |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue |
| **Net cash used in operating activities** |
| &nbsp;&nbsp;&nbsp;**Investing Activities:** |
| &nbsp;&nbsp;&nbsp;Purchase of equipment |
| **Net cash used in investing activities** |
| &nbsp;&nbsp;&nbsp;**Financing Activities:** |
| &nbsp;&nbsp;&nbsp;Lease payments**)** |
| &nbsp;&nbsp;&nbsp;Repayment on convertible debenture**)** |
| &nbsp;&nbsp;&nbsp;Net (repayments) borrowings on credit facility**)** |
| &nbsp;&nbsp;&nbsp;Proceeds from promissory note |
| &nbsp;&nbsp;&nbsp;Proceeds from loan |
| &nbsp;&nbsp;&nbsp;Payments on notes payable |
| **Net cash used in financing activities** |
| Change in cash and restricted cash for the year) |
| Cash and restricted cash, beginning of the year |
| **Cash and restricted cash, end of the year** |

---

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense: | **203,726** | 24150 |
| &nbsp;&nbsp;&nbsp;Income taxes | **-** |  |

---

The accompanying notes are an integral part of these consolidated financial statements

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

1. Nature of Operations and Significant Accounting Policies

Direct Communication Solutions, Inc. (the "Company" or "DCS") was incorporated in Florida on September 9, 2006 and reincorporated in Delaware in April 2017. The Company is a provider of solutions for the Internet of Things ("IoT"), including monitoring-as-a-service ("MaaS") solutions for the telematics market. The Company's range of products includes GPS devices, modems, embedded modules, routers and mobile tracking machine-to-machine ("M2M") devices, communications and applications software and cloud services.

The Company's M2M products and solutions enable devices to communicate with each other and with server or cloud-based application infrastructures and include M2M embedded modules, integrated M2M communications devices and SaaS delivery platforms, including MiFleet, which provides fleet and vehicle SaaS telematics, MiSensors, which provides easy M2M device management and service enablement for wireless sensors and MiFailover which provides high-speed wireless internet failover to small and medium sized businesses as a redundancy solution to continue to run their business in the event the internet isn't available.

Source some inventory outside the U.S., which are subject to trade and customs laws, regulations and tax requirements such as sanctions orders or tariffs set by governments through mutual agreements or unilateral actions. If additional tariffs or trade restrictions are implemented by the United States or other countries in connection with a global trade war, the cost of the Company's inventory manufactured in other countries and imported into the United States or other countries could increase, which in turn could adversely affect the demand for these products and have an adverse effect on our business.

The Company's shares trade on the Canadian security exchange ("CSE") under the symbol "DCSI." The Company's shares also trade on the OTCQX market, a U.S. trading platform, under the symbol "DCSX," and on the Frankfurt Stock Exchange market under the symbol 7QU0.

*Basis of Presentation and Going Concern*

 

These accompanying consolidated financial statements, including comparatives, have been prepared in accordance with United States' Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for financial information.

The accompanying consolidated financial statements have been prepared on a historical cost basis except for certain financial liabilities measured at fair value.

The consolidated financial statements include the accounts of the Company and its direct wholly owned subsidiary, Direct Communication Solutions, Canada ("DCS Canada"), which is inactive. All intercompany transactions and balances have been eliminated on consolidation.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business.

The Company has historically incurred losses and has an accumulated deficit of $16,715,585. As at December 31, 2024, the Company has working capital deficiency of $5,286,995, which is not considered sufficient to fund operations at their current levels for the next twelve months. Therefore, the Company will be required to generate additional funding through operations or external financing, which cannot be assured. These conditions raise substantial doubt on the Company's ability to continue as a going concern.

In March 2020, the World Health Organization declared COVID-19 ("COVID-19" or the "pandemic") to be a public health pandemic of international concern, which has led to adverse impacts on the U.S. and global economies and continues to impact our supply chain and operations. More recently, we have experienced supply shortages as a result of global supply imbalances driven by component shortages, disruptions in accessible labor, other freight and logistical challenges and other related macro-economic factors. These supply imbalances negatively impacted all parts of our business during fiscal 2022 and 2023 and slowly recovered in fiscal 2024.

The Company sources some inventory outside the U.S., which are subject to trade and customs laws, regulations and tax requirements such as sanctions orders or tariffs set by governments through mutual agreements or unilateral actions. If additional tariffs or trade restrictions are implemented by the United States or other countries in connection with a global trade war, the cost of the Company's inventory manufactured in other countries and imported into the United States or other countries could increase, which in turn could adversely affect the demand for these products and have an adverse effect on our business.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

*Use of Estimates*

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S.") requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ materially from those estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of stock options and warrants, fair value of derivative liability, possible product returns and income taxes.

*Cash and Cash Equivalents*

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. At December 31, 2024 and 2023, there were no cash equivalents.

 

*Accounts Receivable and Allowance for Doubtful Accounts*

 

Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company provides an allowance for its accounts receivable for estimated losses that may result from its customers' inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and the customers' credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this allowance. To minimize the likelihood of un-collectability, the Company reviews its customers' credit-worthiness periodically based on credit scores generated by independent credit reporting services, its experience with its customers, and the economic condition of its customers' industries. Material differences may result in the amount and timing of expense for any period if the Company were to make different judgments or utilize different estimates.

 

*Inventories and Provision for Excess and Obsolete Inventory*

 

Inventories are stated at the lower of cost, (based on the weighted average cost method) or net realizable value. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established, and the inventory is not subsequently written up if market conditions improve.

The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demand for the Company's inventory is substantially less than its estimates, inventory write-downs may be required, which could have a material adverse effect on its consolidated financial statements.

 

*Property and Equipment*

 

Property and equipment are initially stated at cost and depreciated using the straight-line method. Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which ranges from three to five years. Leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life. Amortization is calculated on a straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of equipment are as follows:

---

| | |
|:---|:---|
| **Class of equipment** | **Rate** |
| Computer equipment | 3 years |
| Furniture and fixtures | 5 years |
| Office equipment | 5 years |
| Tooling | 5 years |

---

*Impairment of Long-Lived Assets*

 

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These circumstances are assessed on an annual basis. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

*Long-Term Liabilities*

 

Long-term liabilities consist of accounts payable to a vendor with repayment terms longer than twelve months and loans with collateral that are due more than one year in the future.

 

*Fair Value of Financial Instruments*

 

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as 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, based on the Company's principal or, in absence of a principal, the most advantageous market for the specific asset or liability.

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non- recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value.

The three tiers are defined as follows:

● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The Company believes the carrying amounts of cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, lease liabilities, credit facility, and current debt approximate fair value due to their short-term maturities.

The following table represents the Company's financial instruments that are measured at fair value as of December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **December 31, 2024** | | | | |
| Derivative Liability | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $2014526 | $2014526 |
| December 31, 2023 |  |  |  |  |
| Derivative Liability | $- | $- | $1092 | $1092 |

---

*Income Taxes*

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary, differences between the financial reporting and tax basis of assets and liabilities, as well as of operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records valuation allowances to reduce deferred tax assets to the amount the Company believes is more likely than not to be realized.

The Company's income tax filings are subject to audit by various taxing authorities. The Company's open audit periods are 2018-2024. In evaluating the Company's tax provisions and accruals, future taxable income, and the reversal of temporary differences, interpretations, and tax planning strategies are considered. The Company believes their estimates are appropriate based on current facts and circumstances. Accordingly, as of December 31, 2024, the Company has no uncertain tax positions that qualify for recognition or disclosure in the accompanying consolidated financial statements.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

The Company is a C Corporation for income tax purposes.

 

*Revenue and Cost of Revenue*

 

The Company generates a portion of its revenue from the sale of wireless modems, routers and modules to wireless operators, OEM customers and value added resellers and distributors. In addition, the Company generates revenue from the sale of asset-management solutions utilizing wireless technology and M2M communication devices predominantly to transportation and industrial companies, medical device manufacturers and security system providers. Revenue from product sales is generally recognized upon the transfer of title of the product to the customer. Revenues from SaaS services are recognized pro-rata over the contract term. The Company records deferred revenue for cash payments received from customers in advance of when revenue recognition criteria are met.

The Company considers the five basic revenue recognition criteria when assessing appropriate revenue recognition as follows:

● Identify contracts;

● Identify performance obligations;

● Determine transaction prices;

● Allocate the transaction prices; and

● Recognize revenue when obligations had been satisfied.

The Company provides SaaS subscriptions for its fleet management and vehicle finance applications in which customers are provided with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile assets via software applications hosted by either the Company or partner vendor. When the customer purchases the monitoring device, the Company recognizes the revenue at the time of purchase. The Company recognizes revenues from SaaS services over the term of the contract. In certain customer arrangements, the Company provides integrated SaaS-based solutions. The transaction for the integrated solutions includes the price of the devices and application subscriptions in a monthly payment. We recognize revenue for the sales of the devices upon transfer of control to the customer and recognize revenue for the related subscription services over the service period. The allocation of the transaction price is based on relative estimated stand-alone selling prices for the devices and applications subscriptions. Timing of revenue recognition may differ from the timing of our invoicing to customers. Contract assets are comprised of performance under the contract in advance of billings to our customers. The Company's outstanding performance obligations in relation to customer contracts at December 31, 2024 will be completed upon transfer of ownership (or deemed transfer) of goods and as services are rendered. The Company's payment terms require payment to be made within 30 days after the customer accepts transfer of ownership or a notice of completion. The outstanding performance obligations at year end require the Company to provide (i) access to the MiFleet platform and, if purchased, (ii) wireless data.

The Company's cost of revenue for products is composed of the cost of hardware purchased and labor for any services performed on the hardware before it is shipped. Cost of revenue for solutions and other services includes labor for services, license fees for fleet management platform and wireless data.

The Company sells several telematics devices bundled with a multi-year software licenses under the same contractual arrangement, giving rise to considerations on whether there are distinct performance obligations requiring separate recognition and whether the Company is acting as principal or agent in the contract. Key considerations in determining whether the performance obligations are distinct are whether the promise to deliver the hardware component of the contract is separately identifiable from other contractual promises as well as the level of interdependency between the components of the contract. The Company has concluded the bundled contract represents one performance obligation and that the Company is acting as principal in the arrangement, resulting in the Company recognizing revenue and cost of sales on a gross basis on delivery of the telematics device. Significant judgment is involved in the assessments made by management.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

*Research and Development*

 

Expenditures on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in profit or loss as incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. No development costs have been capitalized to date.

 

*Shipping and Handling Costs*

 

The Company incurs certain expenses related to preparing, packaging, and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of revenues in the statements of operations. All costs billed to the customer are included as revenues in the statements of operations.

 

*Warranty Costs*

 

The Company's warranty policy generally provides one year for products following the date of purchase. As the Company receives a one year warranty from its vendors, the Company has little exposure to out-of-pocket warranty costs. Historically, the Company has incurred minimal warranty costs which are expensed when incurred. The Company has not accrued any warranty costs for the years ended December 31, 2024 and 2023.

 

*Advertising and Marketing Costs*

 

Advertising and marketing costs are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated financial statements. The Company had $91,174 (2023 - $246,727) advertising and marketing expenses for the years ended December 31, 2024.

 

*Currency and Foreign Exchange*

These consolidated financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States. The Company's functional currency, the currency of the primary economic environment in which the entities operate and measured in, is U.S. dollars. Virtually all of the Company's non-monetary or monetary assets and liabilities are in U.S. dollar currency. All revenues earned from customers outside the U.S. were denominated in

U.S dollars.

 

*Stock-Based Compensation*

 

The Company measures and recognizes compensation expenses for all stock-based payment awards based on the estimated fair values of the awards as of the grant date. Stock option awards are accounted for based on the grant-date fair value estimated using the Black-Scholes option pricing model. Compensation expense is recognized over the service period using the straight-line method.

 

*Basic and Diluted Net Loss per Share of Common Stock*

 

Basic net loss per share is computed by dividing the net loss by the weighted average number of shares that were outstanding during the period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the diluted net loss per share computation in loss periods as their effect would be anti-dilutive.

 

*Leases*

 

We determine if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

We are the lessee in a lease contract when we obtain the right to control the asset. Operating leases are included in the line items other assets and other liabilities in our consolidated balance sheet. Operating lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on our consolidated balance sheet and are expensed on a straight-line basis over the lease term in our consolidated statement of income. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. As most of our leases do not provide an implicit interest rate, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.

*Derivative Financial Instruments*

 

The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC Subtopic 815-40 "Contracts in Entity's Own Equity." The Company classifies as assets or liabilities any contracts (including embedded conversion features) that require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside our control or give the counterparty a choice of net-cash settlement or settlement in shares. The Company assesses classification of its derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. As of December 31, 2024, the Company determined the warrant portion of the convertible debenture issued in September 2024 and the warrant portion issued in connection to promissory notes are considered derivative liabilities, and the fair valued at December 31, 2024 is $2,014,526 (2023 - $Nil).

*Recent Accounting Pronouncements*

Certain new standards, amendments and interpretations, and improvements to existing standards have been published by the FASB and United States Securities and Exchange Commission but are not yet effective and have not been adopted early by the Company. Management anticipates that all the relevant pronouncements will be adopted in the first reporting period following the date of application unless noted. Information on new standards, amendments and interpretations, and improvements to existing standards which could potentially impact the Company's financial statements are detailed as follows:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which improve the transparency of disclosures related to the income tax rate reconciliation and income taxes paid. The amendments are effective for the Company in fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the guidance and its impact to the financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires all public entities to disclose information about purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion foreach income statement line item that contains those expenses. The amendments are effective for the Company in fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 27, 2027. Early adoption is permitted on either a prospective or retrospective basis. The Company is currently evaluating the guidance and its impact to the financial statements.

Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Company's financial statements.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

2. Inventory

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Components and raw materials | $831308 | $1224163 |
| Allowance of components and raw materials | (474684) | (291774) |
| Assemblies | 30840 | 40422 |
| Allowance of assemblies | (30534) | (16872) |
|  | $356930 | $955939 |

---

During the year ended December 31, 2024, a total of $3,070,442 inventory was expensed as cost of sales (2023 - $7,706,420).

As discussed in Note 5, TAB has a lien on all the Company's assets which includes inventory. During the year ended December 31, 2024, the Company had pledged $344,844 (2023 - $110,532) of inventory as collateral for two loans (Note 6).

3. Equipment

Equipment consists of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Computer equipment and purchased software | $152938 | $152938 |
| Furniture and fixtures | 51427 | 51427 |
| Tooling | 59300 | 59300 |
|  | 263665 | 263665 |
| Less—accumulated depreciation | (257073) | (248647) |
|  | $6592 | $15018 |

---

Depreciation expenses were $8,426 and $31,093 for the years ended December 31, 2024 and 2023, respectively.

4. Accrued Liabilities and Accounts Payable

Accrued liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Payroll related expenses | $175132 | $186385 |
| Interest accrued (Note 6) | 196394 | 213592 |
| Other | 131000 | 487961 |
|  | $502526 | $887938 |

---

Accounts payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Vendor payable due within 12 months | $950368 | $6665085 |
| Vendor payable not due within 12 months | $- | $625019 |

---

During the year ended December 31, 2023, a vendor changed its terms with the Company from billing devices and device management subscriptions with a payment term of 36 months to a payment term of 30 days reducing the frequency of occurrence for long term payables. The Company renegotiated the terms of the outstanding balance into a long-term loan.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

5. Credit Facility

In January 2020, the Company entered into a two-year agreement with TAB Bank ("TAB") for a $2,500,000 credit facility. Under the TAB Bank credit facility, the Company is obligated to assign all its accounts receivables and the Company may request advances up to 90% of domestic accounts less than 90 days from the invoice date and not subject to offset up to $2,000,000. Interest is payable monthly at a rate the greater of (a) 90-Day SOFR rate plus 4.50% and (b) 6.41%. In addition, there is an administration fee equal to 0.008% per diem of the outstanding daily obligations.

The agreement is extended automatically on each subsequent anniversary date unless the Company provides a cancellation notice 90 days prior to the anniversary date. As of December 31, 2024, the expiry date is January 23, 2025. The agreement was automatically renewed on January 23, 2025.

The Company may also borrow an amount limited to the lesser of: (a) 50% of the cost of eligible inventory, (b) 50% of funds employed and, (c) $500,000 (the "Inventory Advance"). Under the Inventory Advance, interest is payable monthly at a rate the greater of (a) 90-Day SOFR rate plus 4.50% and (b) 6.41%. In addition, there is an administration fee equal to 0.01% per diem of the outstanding daily obligations.

The Company does not retain any legal or equitable interest in any accounts receivables account sold under this credit facility. The Company assumes full risk of non-payment and guarantees full payment of all accounts. The Company granted a security interest in all its assets as collateral for its obligations under the facility. The credit facility consists of the following balances as at December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Carrying amount of available credit limit in connection to the credit facility | $239426 | $406808 |
| Outstanding balance | 206084 | 244015 |
| Debt issuance cost amortized to interest expense |  |  |

---

**6.** **Debt** 

 

*Convertible Promissory Debenture*

 

In November and December 2021, the Company had issued convertible promissory debentures totaling $275,000. The debentures accrued interest at a rate of 10% per annum and was payable semi-annually unless the holder elected to defer payment. All unpaid principal and accrued interest are due two years from date of issuance in 2023. The holder of the debenture at any time could convert in whole or any part principal and interest into common stocks of the Company at a conversion price of $7.00 per share. In the event of default, all principal and interest due shall become immediately due and payable. At December 31, 2023, the principal and interest has been paid off in full. During the year ended December 31, 2023, the Company accrued $24,150 of interest associated with the Convertible Promissory Debentures which had been paid off during the year ended December 31, 2023.

On April 7, 2022, the Company received convertible debenture financing for the aggregate amount of $100,000 (U.S.). Subscribers may convert all or part of the principal amount outstanding under the debentures into shares of common stock of the company. The debentures are convertible into units at the higher of $8.33 per share or a price equal to the price of the shares or units of the next financing carried out before the second anniversary of the closing date less a 30% discount.

The units comprise a share and one-half of one warrant, where a whole warrant shall be exercisable at $2.80 per common stock for a two-year term. The debentures have a maturity date of the second anniversary of the closing date and bear an interest rate of 10 per cent per annum, payable semi-annually. At December 31, 2024, the Company recorded $Nil accrued interest associated with the convertible debentures (December 31, 2023 - $17,343), which had been paid off during the year ended December 31, 2024.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

In September 2022, the Company issued additional convertible promissory debentures totalling $1,500,000, bearing interest at 10% per annum (accruing annually and payable at maturity), and maturing on September 9, 2024, or a period of 24-months. The Debentures are convertible, at the option of the holder, to common stocks of DCS at a price of $8.33 or a price equal to the price of the shares of the next financing carried out before the second anniversary of the closing date at 25% premium. Upon issuance of the debentures, the Company also issued 107,143 share purchase warrants. Each warrant entitles the holder to purchase one common stock at a price of $6.02 per share for a period of 24 months from the date of issuance of the debentures. At December 31, 2024, the Company settled indebtedness by issuing additional convertible promissory debentures and paid off during the year ended December 31, 2024.

On September 13, 2024, the Company issued replacement convertible promissory debentures totaling $1,741,589, bearing interest at 15% per annum (accruing annually and payable at maturity), and maturing on September 13, 2025, or a period of 12-months to settle indebtedness related to the convertible debentures issued in 2022. The Debentures are convertible, at the option of the holder, to common stocks of DCS at a price of $6. Upon issuance of the debentures, the Company agreed to issue 196,582 share purchase warrants as additional compensation subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.20 per share for a period of 24 months from the date of issuance of the warrant. The warrants had been issued during the year ended December 31, 2024.

The Company recorded the conversion features with fixed exercise prices and the debt as a single unit with the debt in accordance with ASU 2020-06 and recorded the fair value of the warrants as an embedded derivative separated from the host contract in accordance with ASC 815. The fair value of the derivative liabilities is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statements of operations. The Company uses a derivative valuation technique to fair value the components of the hybrid contract on initial recognition, including the debt component, the conversion features, and the warrants. The following significant inputs and assumptions were used in the model:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| Expected term (years) | 1.70 | 0.69 |
| Risk-free interest rate | 2.96% | 4.834% |
| Expected volatility | 150% | 100% |
| Dividend yield | 0.00% | 0.00% |
| Estimated forfeitures | 0.00% | 0.00% |

---

The following table presents the Company's embedded warrants of its convertible debt measured at fair value on a recurring basis As of December 31, 2024 and 2023, determined based on "Level 3" inputs.

---

| | |
|:---|:---|
|  | **Derivative** |
| **Balance at December 31, 2022** | $**360154** |
| Net changes in fair value included in net loss | (359062) |
| **Balance at December 31, 2023** | **1092** |
| Initial recognition | 283978 |
| Net changes in fair value included in net loss | 875851 |
| **Balance at December 31, 2024** | **1160921** |

---

The debt component of the convertible debenture is subsequently measured at amortized costs. The following table presents the debt component of the convertible debt measured at its fair value on initial recognition $1,035,556 and subsequently carried at amortized cost using the interest rate of 32.06% per annum over 24 months period. On September 14, 2024, the Company issued replacement convertible promissory debentures, and derecognized the convertible debt issued in the prior period. The debt component of the replacement convertible promissory debentures measured at its fair value on initial recognition of $1,395,104 and subsequently carried at amortized cost using the interest rate of 37% per annum over the 12 months period. As of December 31, 2024, the total accrued interest was $77,298 (December 31, 2023 - $Nil) recorded in accrued liabilities.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Beg.<br> Balance** | **Additions** | **Accretion** | **End.<br> Balance** |
|  |  | $— |  | $|
| December 31, 2022 |  |  | 58217 | 1093773 |
| December 31, 2023 |  |  | 232939 | 1326712 |
| September 14, 2024 |  |  | 173288 |  |
| September 14, 2024 |  |  |  | 1395104 |
| December 31, 2024 |  |  | 81380 | 1476484 |

---

*Loans*

 

In April 2024, the Company entered into a promissory note agreement of $100,000, bearing interest at 19% per annum (accruing semi - annually and payable every six months), and maturing on April 15, 2026, or a period of 24- months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In May 2024, the Company entered into a promissory note of $100,000, bearing interest at 19% per annum (accruing annually and payable at maturity date), and maturing on May 24, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In June 2024, the Company entered into a promissory note of $100,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on June 28, 2026, or a period of 24-months. As additional consideration, the Company issued 20,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In July 2024, the Company entered into a promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on July 8, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In August 2024, the Company entered into a promissory note of $75,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on August 31, 2026, or a period of 24-months. As additional consideration, the Company issued 15,000 purchase warrants on October 9, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.14 per share for a period of 24 months from the date of issuance.

In August 2024, the Company entered into another promissory note of $250,000, bearing interest at 19% per annum (accruing semi-annually and payable every six months), and maturing on August 24, 2026, or a period of 24-months. As additional consideration, the Company issued 50,000 purchase warrants on October 16, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.09 per share for a period of 24 months from the date of issuance.

In November 2024, the Company entered into another promissory note of $100,000, bearing interest at 19% per annum (accruing semi-annually and payable every 6 months), and maturing on November 22, 2026, or a period of 24- months. As additional consideration, the Company issued 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In November 2024, the Company entered into another promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on November 27, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

In December 2024, the Company entered into promissory notes with an aggregated total of $200,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on December 10, 2026, or a period of 24-months. As additional consideration, the Company will issue 40,000 purchase warrants subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In December 2024, the Company entered into another promissory note of $50,000, bearing interest at 19% per annum (accruing annually and payable annually), and maturing on December 26, 2026, or a period of 24-months. As additional consideration, the Company will issue 5,000 purchase warrants subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

The Company records the fair value of the warrants exercisable with a variable amount of cash receivable due to foreign exchange as an embedded derivative separate from the host contract. The fair value of the derivative liabilities is revalued on each Statement of Financial Position date with corresponding gains and losses recorded in profit or loss. The Company uses a derivative valuation technique to fair value the components of the hybrid contract on initial recognition, including the debt component and the warrants. The following significant inputs and assumptions were used in the model:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Expected term (years) | 1.7-2 |  |
| Risk-free interest rate | 4.21%-4.25 |  |
| Expected volatility | 119.54%-186.17 |  |
| Dividend yield | 0.00% |  |
| Estimated forfeitures | 0.00% |  |

---

The following table presents the Company's warrant component of its promissory notes measured at fair value on a recurring basis as of December 31, 2024 and 2023, determined based on "Level 3" inputs.

---

| | |
|:---|:---|
|  | **Derivative** |
|  | **$** |
| **Balance at December 31, 2022 and 2023** | **-** |
| Initial recognition during the year | 324135 |
| Net changes in fair value included in net loss | 529470 |
| **Balance at December 31, 2024** | **853605** |

---

The debt component of the loans subsequently measured at amortized costs. The following table presents the debt component of the loans measured at its fair value on initial recognition and subsequently carried at amortized cost using the effective interest rate ("EIR") per annum over the loan period. As of December 31, 2024, the total accrued interest was recorded in current debt and long-term debt in accordance with the loan payment terms.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Loan ID** | **Date** | **EIR** | **Beg. Balance** | **Additions & Payments** | **Interest & Accretion** | **End. Balance** | **Total Interest accrued** |
|  |  | % | $ | $ | $ | $ | $ |
| 1 | April 15. 2024 | 21 |  |  |  | 95130 |  |
| 2 | May 24, 2024 | 21 |  |  |  | 95816 |  |
| 3 | June 28, 2024 | 23 |  |  |  | 81644 |  |
| 4 | July 8, 2024 | 25 |  |  |  | 39568 |  |
| 5 | August 31, 2024 | 37 |  |  |  | 47109 |  |
| 6 | August 24, 2024 | 42 |  |  |  | 166724 |  |
| 7 | November 22, 2024 | 35 |  |  |  | 87502 |  |
| 8 | November 27, 2024 | 34 |  |  |  | 33281 |  |
| 9 | December 26, 2024 | 40 |  |  |  | 25888 |  |
| 10 | December 10, 2024 | 62 |  |  |  | 78204 |  |
| 1 | December 31, 2024 | 21 | 95130 |  | 15117 | 100747 | 4034 |
| 2 | December 31, 2024 | 21 | 95816 |  | 12628 | 98944 | 2004 |
| 3 | December 31, 2024 | 23 | 81644 |  | 10273 | 91917 | 7644 |
| 4 | December 31, 2024 | 25 | 39568 |  | 5031 | 44599 | 3616 |
| 5 | December 31, 2024 | 37 | 47109 |  | 6089 | 53199 | 3760 |
| 6 | December 31, 2024 | 42 | 166724 |  | 26458 | 193182 | 16788 |
| 7 | December 31, 2024 | 35 | 87502 |  | 2448 | 89950 | 2030 |
| 8 | December 31, 2024 | 34 | 33281 |  | 1055 | 34336 | 699 |
| 9 | December 31, 2024 | 40 | 25888 |  | 196 | 26084 | 130 |
| 10 | December 31, 2024 | 62 | 78204 |  | 2770 | 80974 | 1726 |

---

Pursuant to a vendor changing its terms with the Company from billing devices and device management subscriptions from a payment term of 36 months down to 30 days reducing the frequency of occurrence for long term payables, the Company entered into an agreement to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. The interest will be due quarterly, and the principal will be due in 5 years. The balance of $2,914,776 of the payables was forgiven and recognized in the Company's consolidated statement of operating loss and comprehensive loss. As at December 31, 2024, the Company recorded $196,394 of accrued interest and finance fee and a carrying balance of $3,396,394 of the loan was outstanding.

 

*Loans with collateral*

 

In May 2024, the Company entered into a loan agreement with a third party for proceeds of $250,000. The proceeds will be used for operating purposes. The loan is repayable in 24 monthly payments starting May 2024, bearing interest at 22.2%, and is secured by a general security agreement on the Company's assets.

In August 2024, the Company entered into two loan agreements with third parties for proceeds of $174,221 and $200,000. The proceeds will be used for operating purposes. The loans are repayable in 65 and 35 weekly payments, respectively, starting August 2024, bearing interest at 23.5% and 37.24% respectively, and are secured by a general security agreement on the Company's assets.

During the year ended December 31, 2023, the Company entered into two loan agreements and pledged $110,532 (2022- $Nil) of inventory as collateral. The Company entered into two additional loan agreements during the years ended December 31, 2024 and pledged an additional $234,312 of inventory as collateral. The loans have the following terms as of December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Loan 1** | **Loan 2** | **Loan 3** | **Loan 4** |
| Expected term (months) | 12 | 60 | 36 | 24 |
| Interest rate | 35.28% | 6.77% | 19.02% | 16% |
| Payable within 12 months | $1371 | $11320 | $20142 | $57594 |
| Payable not due in 12 months |  | $34169 | $9921 | $25716 |

---

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

During the year ended December 31, 2024, the Company recorded $122,044 (2023- $7,157) of interest expense and finance charges in the consolidated statement of loss and comprehensive loss in connection to the four loan agreements. As of December 31, 2024, a carrying balance of $160,233 (2023 of $143,362) the loans were outstanding.

 

*Deferred Revenue*

 

The Company record a contract liability when we receive consideration in advance of transferring goods or services to a customer. At December 31, 2024, our contract liability balance was $1,786,274 (2023 - $89,374). During the year ended December 31, 2024, the Company recognized $89,374 of revenue that was included in the contract liability balance at December 31, 2023.

7. Leases

On May 27, 2021, the Company entered into a lease agreement whereby the Company will lease premises in San Diego, California effective November 1, 2021. The lease ("Lease) will have an initial 60 month term. Not less than nine months prior to the expiration of the Lease, the Company has an option to extend the Lease term for an additional five years at then current market rates. The right to use leased asset was measured at the amount of the lease liability of $899,102 using the Company current incremental borrowing rate of 10%.

The following table presents the Company's leases balances As of December 31, 2024 and 2023 under ASC 842.

---

| | | |
|:---|:---|:---|
|  | **Balance<br> December 31,**<br>**2024** | **Balance<br> December 31,**<br>**2023** |
| Right-of-use assets, net | $329671 | $509491 |
| Lease liabilities – current | 207722 | 181441 |
| Lease liabilities – non-current | 194805 | 402528 |

---

Depreciation expenses of $179,820 (2023 - $179,820) was recorded in general and administrative expense in the consolidated statements of operations for the year ended December 31, 2024. The remaining lease term as of December 31, 2024 was 1.8 years. The weighted-average discount rate as of December 31, 2024 was 10%. For the years ended December 31, 2024 and 2023, cash outflows from operating leases were $229,804 and $223,110, respectively.

Future minimum lease payments under the lease agreement as of December 31, 2024 are as follows:

---

| | |
|:---|:---|
| Years Ending December 31: |  |
| &nbsp;&nbsp;&nbsp;2025 | $236702 |
| &nbsp;&nbsp;&nbsp;2026 | 202160 |
|  | $438862 |

---

The Company does not have any short-term or low value leases.

8. Common Stock and Common Stock Warrants

Effective February 9, 2023, the Company consolidated 7 common stocks for 1 common stock (the "Stock Consolidation"). The Stock Consolidation was effected in the form of cancelling 6 common stocks for each common stock owned by shareholders of record at the close of business on February 9, 2023. All share data and stock-based compensation plans presented herein have been retroactively adjusted to give effect to the Stock Consolidation.

*Common Stock*

Holders of common stock are entitled to one vote for each share held. The Company has not declared any dividends since incorporation. The Company has 5,714,286 common stocks authorized with a par value of $0.00001.

There were no transactions affecting common stock during the year ended December 31, 2024 and 2023.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

*Warrants*

In September 2022, the Company issued convertible promissory debentures (note 6) and upon issuance of the debentures, the company also issued 107,143 share purchase warrants. Each warrant entitles the holder to purchase one common stock at a price of $6.02 per share for a period of 24 months from the date of issuance of the debentures. In September 2024, the issued 107,143 share purchase warrants expired.

In September 2024, the Company issued convertible promissory debentures (Note 6) and upon issuance of the debentures, the company agreed to issue 196,582 share purchase warrants, subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of $2.36 per share for a period of 24 months from the date of issuance of the warrant. The warrants were issued on October 10, 2024.

From April to August 2024, the Company entered into promissory note agreements (Note 6) and subsequently issued 115,000 purchase warrants during the year ended December 31, 2024. Each warrant entitles the holder to purchase one common stock at various price of CAD $2.00 to CAD $3.14 per share for a period of 24 months from the date of issuance depending on the promissory notes term. The Company determined the warrants represent an embedded derivative and has accounted for the warrants in derivative liability.

From November to December 2024, the Company entered into promissory note agreements (Note 6) and agreed to issue 65,000 purchase warrants in connection to the promissory note. Each warrant entitles the holder to purchase one common stock at the price of CAD $2.95 per share for a period of 24 months from the date of issuance depending on the promissory notes term. Subsequent to the year-end December 31, 2024, 55,000 of the purchase warrants have been issued.

The Company determined the warrants represent an embedded derivative and has accounted for the warrants in derivative liability.

The following table summarizes the warrant activity for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> warrants** | **Weighted<br> average<br> exercise price** |
| **Outstanding, December 31, 2022 and 2023** | 107143 | $6.02 |
| Granted | 311582 | 2.08 |
| Expired | (107143) | 6.02 |
| **Outstanding, December 31, 2024** | 311582 | $2.08 |

---

The following table summarizes the warrants outstanding as at December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Date of Expiry** | **Number of<br> Warrants<br> Outstanding** | **Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Life (years)** |
| September 11, 2026 | 50000 | CAD $2.00 | 1.70 |
| October 9, 2026 | 15000 | CAD $3.14 | 1.77 |
| October 10, 2026 | 196582 | CAD $3.20 | 1.78 |
| October 16, 2026 | 50000 | CAD $3.09 | 1.79 |

---

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

9. Stock Options and Restricted Shares Unit ("RSU")

In October 2017, the Company's board of directors and stockholders approved the 2017 Stock Plan (2017 Plan) under which 500,000 shares of common stock are reserved for the granting of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and performance awards to employees, directors and consultants. Recipients of stock option awards are eligible to purchase shares of the Company's common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of awards granted under the 2017 Plan is ten years and vesting is determined by the board of directors. Stock awards are generally not exercisable prior to the applicable vesting date, unless otherwise accelerated under the terms of the applicable stock plan agreement. Unvested shares of the Company's common stock issued in connection with an early exercise allowed by the Company may be repurchased by the Company upon termination of the optionee's service with the Company. The vesting terms of each option grant are at the discretion of the Board of Directors.

In December 2023, the Board of Directors and a majority of the stockholders approved to replace the 2017 Stock Plan with the 2023 Omnibus Plan. Any previously granted stock options shall continue to exist under the 2023 Omnibus plan, and the number of authorized shares for combined issuance of awards, including stock options, as of December 31, 2024 is 1,000,000.

The following table summarizes stock option transactions under the 2023 Omnibus Plan:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted<br> average<br> exercise price** |
| **Outstanding, December 31, 2022** | 542286 | $4.03 |
| Forfeited | (1429) | $2.87 |
| **Outstanding December 31, 2023** | 540857 | $4.03 |
| Granted | 177500 | $5.00 |
| Forfeited | (269428) | $3.66 |
| **Outstanding December 31, 2024** | 448929 | $4.64 |

---

During the year ended December 31, 2024, the Company granted 177,500 (2023 - Nil) options with an exercise price of CAD$7.20 and vesting term of 4 months, and an expiry date of 5 years to certain employees and officers of the Company.

At December 31, 2024, the Company had outstanding and exercisable stock options as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Options Outstanding** | **Number of Options Exercisable** | **Exercise Price** | **Weighted Average Remaining Life (years)** |
| October 5, 2027 | 178572 | 178572 | $3.29 | 2.76 |
| February 4, 2032 | 6427 | 5847 | $2.87 | 7.10 |
| February 24, 2032 | 10715 | 10715 | $2.87 | 7.15 |
| March 14, 2032 | 8572 | 6696 | $4.13 | 7.21 |
| May 9, 2027 | 52857 | 52857 | $8.40 | 2.35 |
| May 9, 2027 | 14286 | 14286 | $5.53 | 2.35 |
| December 23, 2029 | 177500 | - | 7.20 | 4.98 |

---

As of December 31, 2024, there was $704,243 of total unrecognized stock-based compensation cost related to outstanding nonvested equity awards that is expected to be recognized as an expense over the remaining vesting period of 1.09 years to 4.98 years.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

The Company uses a Black-Scholes option valuation model to determine the fair value of stock-based compensation under ASC Topic 718, *Stock Compensation*. The expected volatility is based on the historical volatility of a peer group of publicly-traded companies. The risk-free interest rate is based on the yield on the measurement date of a zero-coupon U.S. Treasury bond whose maturity period approximately equals the option's expected term.

The expected life represents the time the options granted are expected to be outstanding. Forfeitures are adjusted in the period when forfeitures occur.

The following are the assumptions used in the Black-Scholes option valuation model for option granted during the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Fair value of common stock | $5.00 |  |
| Expected term (years) | 5 |  |
| Risk-free interest rate | 4.4% |  |
| Expected volatility | 120.7% |  |
| Dividend yield |  |  |
| Estimated forfeitures |  |  |

---

Pursuant to the approval of 2023 Omnibus Plan, the maximum number of common shares that may be issued for all awards, including RSU, is 1,000,000 shares. The following table summarizes RSU transactions under the 2023 Omnibus Plan:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> RSU** | **Weighted<br> average<br> Fair value** |
| **Outstanding, December 31, 2022 and 2023** | - | - |
| Granted | 142144 | $5.10 |
| **Outstanding, December 31, 2024** | 142144 | $5.10 |

---

During the year ended December 31, 2024, the Company granted 142,144 RSUs to certain officers and directors of the Company with vesting terms of four months, and recorded share-based compensation expense of $47,536 (2023 - $Nil) relating to the vesting portion of RSUs.

10. Related Party Agreements

John Hubler, previously a member of the Company's Board of Directors, is a partner of BH IoT Group. Mr. Hubler rejoined the Company as a director in April 2023 and resigned in September 2024. In November 2020, the Company entered into an agreement with BH IoT Group to assist in building complete IoT bundled solutions. The Company entered into an initial Phase 1 project expected to last 3 months. At the end of Phase1, both parties agreed to continue the relationship on a month-to-month basis. John Hubler was considered as a related party starting April 2023 up to August 2024. The Company recorded $140,000 (2023 - $180,000) related party professional fees on the consolidated statement of operations for the year ended December 31, 2024.

Mike Yao Zhou, previously a member of the Company's Board of Directors, is the owner of MYZ Corporate Relations, Ltd. Mr. Zhou resigned in March 2024. In May 2021, the Company entered into an agreement with MYZ Corporate Relations, Ltd. to provide consulting services on strategic matters related to business development opportunities, product development and marketing strategies for a monthly fee of $4,000. The agreement is effective for one year and will automatically renew annually unless terminated by either party. Mike Yao Zhou was considered a related party up to March 5, 2024. The Company recorded $Nil of professional fees on the consolidated statement of operations for the year ended December 31, 2024 (2023 - $104,000). As at December 31, 2024, the Company owed $Nil (2023 - $32,000) to MYZ Corporate Relations, Ltd.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

Mr. Lichtenwald, a member of the Company's Board of Directors, is a principal at Zeus Capital Ltd. In April 2022, Mr. Lichtenwald was appointed the new CFO of the Company, and on June 30, 2022, Mr. Lichtenwald resigned as a director. In November 2021, the Company entered into an agreement with Zeus Capital Ltd. to assist the company with corporate finance and strategic initiatives for a monthly fee of $15,000. The agreement is effective for one year and will automatically renew annually unless terminated by either party. The Company recorded $180,000 of professional fees on the consolidated statement of operations for the year ended December 31, 2024 (2023 - $180,000). As at December 31, 2024, the Company owed $32,650 (2023 - $Nil) to Zeus Capital Ltd..

Also, Mr. Lichtenwald is a principal of Zeus Accounting Solutions Corp., formerly known as Lichtenwald Professional Corp ("LPC"). The Company entered into an agreement with LPC to provide CFO service fees of $12,500 monthly, effective April 2022. The Company recorded $150,000 of professional fees on the consolidated statement of operations for the year ended December 31, 2024 (December 31, 2023 - $156,250). As at December 31, 2024, the Company owed $22,700 (2023 - $Nil) to Zeus Accounting Solutions Corp.

In July 2022, the Company appointed David Diamond as a new director and Chair of the Audit Committee. Mr. Diamond provides services and is compensated via director fees of $2,500 monthly. Since April 2023, Mr. Diamond provided additional service to the Company in connection to its plans for NYSE up-listing, The Company recorded

$52,500 of related party professional fees on the consolidated statement of operations for the year ended December 31, 2023 compared to $Nil for the year ended December 31, 2024. Mr. Diamond resigned effective December 22, 2023.

Julie Hajduk, a member of the Company's Board of Directors, is a principal at Purple Crown Communications Corp. Ms. Hajduk provides services and is compensated via director's fees of $2,500 monthly. Since May 2023, Ms. Hajduk provided additional service to the Company in connection to its plans for NYSE up-listing, The Company recorded $6,000 (2023 - $17,750)of related party marketing fees and $10,000 (2023 - $22,500) of related party professional fees on the consolidated statement of operations for the year ended December 31, 2024. As at December 31, 2024, the Company owed $12,000 (2023 - $Nil) to Purple Crown Communications Corp.

11. Segment Information

Operating segments are defined as components of an enterprise (business activity from which it earns revenue and incurs expenses) for which discrete financial information is available and regularly reviewed by the chief decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker (CODM) is its Chief Executive Officer. The Company views its operations and manages its business as a single operating and reporting segment.

Although all operations are based in the U.S., the Company generated a portion of its revenue from customers outside of the U.S. Information about the Company's revenue from different geographic regions for the years ended December 31, 2024 and 2023 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2023** | **2023** | **2023** |
|  | $ | $% | % | % |
| United States |  |  | 92.2% | 95.2% |
| Canada |  |  | 6.2% | 3.3% |
| Others combined |  |  | 1.6% | 1.5% |
| Total Revenue |  |  | 100.0% | 100.0% |

---

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Revenue Type (in '000)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
|  | $% | % | $% | % |
| Product |  | 57.4% |  | 80.6% |
| Software as a Service (SaaS) |  | 35.2% |  | 14.0% |
| Engineering/Support Service |  | 1.3% |  | 2.0% |
| Wireless Data |  | 5.7% |  | 3.2% |
| Commission Income |  | 0.4% |  | 0.2% |
| Total Revenue |  | 100.0% |  | 100.0% |

---

All of the Company's significant identifiable assets were located in the United States as of December 31, 2024 and 2023.

12. Concentrations of Risk

The Company derived revenue from one customer totaling 22.5% and 33% of the Company's total revenue for years ended December 31, 2024 and 2023, respectively. At December 31, 2024 and 2023, one customer accounted for a total of 18% and 19% of accounts receivable, respectively.

To manage the concentration of customer risk, the Company continuously looks for opportunities to diverse revenue streams and expand client base via marketing. All contracts with customers are signed for a term, and the Company ensures the customer needs are being met by building exceptional customer service relationships.

The Company has concentrations in the purchases with its suppliers. For the year ended December 31, 2024 and 2023, the two largest suppliers accounted for a total of 83% and 81% of total purchases, respectively.

13. Income Taxes

The Company is an S Corporation for income tax purposes.

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Net Loss before Tax | $1742951 | $5182196 |
| Expected income tax (recovery) | (341808) | (1376187) |
| Change in statutory, foreign tax, foreign exchange rates and other | 155073 |  |
| Permanent differences | 310322 | 19779 |
| Adjustment to prior years provisions versus statutory tax returns | (103712) |  |
| Changes in unrecognized deductible temporary differences | (19875) | 1356408 |
| Total income tax expense (recovery) | $- | $- |

---

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

The significant components of the Company's deferred tax assets that have not been included on the consolidated statement of financial position are as follows:

---

| |
|:---|
| Deferred Tax Assets (Liabilities) |
| Allowance for bad debts |
| Inventory reserves |
| Right-of-use assets) |
| Lease liabilities |
| Accrued vacation |
| Sec. 263A Unicap |
| Fixed asset basis difference including depreciation) |
| State income taxes - California mandatory lag method |
| Capitalized R&D |
| Federal R&D Credit |
| Non-qualified stock options |
| Non-capital losses available for future period |
| Unrecognized deferred tax assets) |
| Net Deferred Tax Assets (Liabilities) |

---

The significant components of the Company's temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **Expiry Date**<br> **Range** | **2023** | **Expiry Date**<br> **Range** |
| **Temporary Differences** |  |  |  |  |
| Allowance for bad debts | $66055 | No expiry date | $175283 | No expiry date |
| Inventory reserves | 418648 | No expiry date | 237051 | No expiry date |
| Right-of-use assets | (329671) | No expiry date | (509491) | No expiry date |
| Lease liabilities | 402527 | No expiry date | 583969 | No expiry date |
| Accrued vacation | 90452 | No expiry date | 91245 | No expiry date |
| Sec. 263A Unicap | 101548 | No expiry date | 71596 | No expiry date |
| Fixed asset basis difference including depreciation | (4444) | No expiry date | 7084 | No expiry date |
| State income taxes - California mandatory lag method | 900 | No expiry date | 900 | No expiry date |
| Capitalized R&D | 1270377 | No expiry date | 1546822 | No expiry date |
| Non-qualified stock options | 495542 | No expiry date | 509526 | No expiry date |
| Non-capital losses available for future period | 9899008 | 20 years | 9515336 | 20 years |

---

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

14. Other Expenses

During the year ended December 31, 2024, the Company had the following expenses:

---

| | | |
|:---|:---|:---|
|  | **Years ended December 31** | **Years ended December 31** |
|  | **2024** | **2023** |
|  | $ | $ |
| Insurance | 132798 |  |
| Licenses and fees | 50364 |  |
| Office expenses | 42561 |  |
| Automobile expense | 1376 |  |
| Meals and entertainment | 47632 |  |
| Travel expense | 42160 |  |
| Utilities | 52116 |  |
| Tax filing fees | 5063 |  |
| Software expense | 10990 |  |
| Cost recovery – Tetlit | -) |  |
| Other | - |  |
| **Total** | **385060** |  |

---

15. Commitments

Effective October 1, 2021, the Company has agreed to an annual purchase commitment for a period of three years with a significant vendor. The Company's obligation to the vendor shall be satisfied by the submission of non-cancelable orders for each contract year with an aggregate value equal to or in excess of $8 million. During the year ended December 31, 2023, the Company revised the agreement with the significant vendor by eliminating the minimum spend to "Forecast" and waiving the penalty fees.

16. Subsequent Events

Subsequent to December 31, 2024, the Company:

● Entered into another promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on January 10, 2027, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants;

● Issued 65,000 share purchase warrants with an exercise price of $2.95 CAD and an expiry date of January 10, 2027 in connection to the promissory notes the Company entered into during November 2024 to January 2025;

● Issued 40,000 common shares for gross proceeds of $83,980 in connection with the exercise of warrants at $2.95 CAD per common share; and

● Issued 142,144 shares in connection with the vesting of 142,144 RSUs.

![](image_010.jpg)

**Direct Communication Solutions, Inc.**

Condensed Consolidated Financial Statements

(Expressed in US Dollars)

As at and for the three and nine months ended

September 30, 2025 and 2024

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**Direct Communication Solutions, Inc.**

Condensed Consolidated Statements of Financial Position

(Expressed in US dollars)

As at September 30, 2025 and December 31, 2024

---

| |
|:---|
| **ASSETS** |
| **Current** |
| Cash |
| Restricted cash |
| Accounts and other receivables |
| Inventory |
| Prepaid expenses |
| **Current assets** |
| Equipment |
| Security deposit |
| Right-of-use assets |
| **Total assets** |
| **LIABILITIES AND SHAREHOLDERS' DEFICIENCY** |
| **Current** |
| Accounts payable |
| Accounts payable - RPT |
| Accrued liabilities |
| Credit facility |
| Current debt |
| Deferred revenue |
| Derivative instrument |
| Lease liabilities |
| **Current liabilities** |
| Lease liabilities |
| Long term debt |
| **Total liabilities** |
| **Shareholders' deficiency** |
| Common stock, $0.00001 par value, 5,714,286 shares authorized, 2,487,223 shares and 2,305,079 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively |
| Reserves |
| Accumulated deficit |
| **Total shareholders' deficiency** |
| **Total liabilities and shareholders' deficiency** |

---

Nature of operations and going concern (Note 1)

Commitments and contingencies (Note 14)

Approved on \*\*\*, 2025 on behalf of the Board:

<u>*"Bill Epsley"*</u> <u>"*Ying Xu*"</u> <br> Bill Epsley – CEO & Director Ying Xu – CFO

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

 

 

**Direct Communication Solutions, Inc.**

Condensed Consolidated Statements of Operating Loss and Comprehensive Loss

(Expressed in US dollars)

Nine Month Periods Ended September 30, 2025 and 2024

 

---

| | |
|:---|:---|
|  | **Notes** |
| **Revenues:** |  |
| &nbsp;&nbsp;&nbsp;Products |  |
| &nbsp;&nbsp;&nbsp;Solutions and other services |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 12 |
| **Cost of Revenues** |  |
| &nbsp;&nbsp;&nbsp;Products |  |
| &nbsp;&nbsp;&nbsp;Solutions and other services |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues |  |
| **Gross Profit** |  |
| **OPERATING EXPENSES** |  |
| Research and development |  |
| General and administrative |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 37 |
| &nbsp;&nbsp;&nbsp;Professional fees |  |
| &nbsp;&nbsp;&nbsp;Bank fees |  |
| &nbsp;&nbsp;&nbsp;Bad debt expense (recovery) |  |
| &nbsp;&nbsp;&nbsp;Facilities |  |
| &nbsp;&nbsp;&nbsp;Information technology |  |
| &nbsp;&nbsp;&nbsp;Advertising and marketing**)** |  |
| &nbsp;&nbsp;&nbsp;Other | 13 |
| Total Operating Expenses |  |
| **Net Operating Loss)** |  |
| **OTHER INCOME (EXPENSES)** |  |
| Changes in fair value of derivative | 6) |
| Rental Income |  |
| Gain on debt extinguishment |  |
| Interest expense and accretion | 5, 6, 7**)** |
| **Net income (loss) for the period)** |  |
| Weighted Average number of common shares: |  |
| Basic |  |
| Diluted |  |
| Income (loss) per share – basic and diluted |  |
| Basic**)** |  |
| Diluted**)** |  |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

 

**Direct Communication Solutions, Inc.**

Condensed Consolidated Statements of Changes in Shareholders Deficiency

(Expressed in US dollars)

As at September 30, 2025 and December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of <br> Common <br> stocks** | **Common <br> Stock <br> Amount** | **Reserves** |
|  | | **$** | **$** |
| **Balance, January 1, 2024** | **2305079** | **61** | **7365011** |
| Stock-based compensation expense |  |  | 31494 |
| Net income for the period | - | - | - |
| **Balance, September 30, 2024 (Unaudited)** | **2305079** | **61** | **7396505** |
| **Balance, January 1, 2025** | **2305079** | **61** | **7493267** |
| Stock-based compensation expense |  |  | 1379646 |
| Exercise of warrants | 40000 |  | 237643 |
| Restricted share unites vested | 142144 |  |  |
| Net loss for the period | - | - | - |
| **Balance, September 30, 2025 (Unaudited)** | **2487223** | **61** | **9110556** |

---

 

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

 

 

**Direct Communication Solutions, Inc.**

Condensed Consolidated Statements of Cash Flows

(Expressed in US dollars)

Nine Month Periods Ended September 30, 2025 and 2024

 

---

| |
|:---|
| Cash provided by / (used for): |
| **Operating Activities:** |
| **Net loss for the period)** |
| &nbsp;&nbsp;&nbsp;Items not affecting cash: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion and interest on convertible debentures and promissory note |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest for loan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense (recovery) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value of derivative**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on debt extinguishment) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of lease liability |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain or loss on FX**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for excess and obsolete inventory |
| &nbsp;&nbsp;&nbsp;Net change in non-cash working capital items: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts and other receivables**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue |
| **Net cash used in operating activities** |
| &nbsp;&nbsp;&nbsp;**Financing Activities:** |
| &nbsp;&nbsp;&nbsp;Lease payments**)** |
| &nbsp;&nbsp;&nbsp;Net (repayments) borrowings on credit facility |
| &nbsp;&nbsp;&nbsp;Payment on convertible debenture) |
| &nbsp;&nbsp;&nbsp;Proceeds from promissory notes |
| &nbsp;&nbsp;&nbsp;Proceeds from loans |
| &nbsp;&nbsp;&nbsp;Loan from a related party |
| &nbsp;&nbsp;&nbsp;Payments on loans**)** |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities |
| **Change in cash for the period)** |
| Cash and restricted cash, beginning of the period |
| **Cash and restricted cash, end of the period** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | 2024 | 2024 |
| **Supplemental disclosure of cash flow information:** | | | | |
| Cash paid during the period for: | | | | |
| &nbsp;&nbsp;&nbsp;Interest expense: |  | **465,084** |  | 115871 |
| &nbsp;&nbsp;&nbsp;Income taxes |  | **-** |  |  |

---

 

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**1.** **NATURE OF OPERATIONS AND GOING CONCERN** 

Direct Communication Solutions, Inc. (the "Company" or "DCS") was incorporated in Florida on September 9, 2006 and reincorporated in Delaware in April 2017. The Company is a provider of solutions for the Internet of Things ("IoT"), including monitoring-as-a-service ("MaaS") solutions for the telematics market. The Company's range of products includes GPS devices, modems, embedded modules, routers and mobile tracking machine-to-machine ("M2M") devices, communications and applications software and cloud services.

The Company's M2M products and solutions enable devices to communicate with each other and with server or cloud-based application infrastructures and include M2M embedded modules, integrated M2M communications devices and SaaS delivery platforms, including MiFleet, which provides fleet and vehicle SaaS telematics, MiSensors, which provides easy M2M device management and service enablement for wireless sensors and MiFailover which provides high-speed wireless internet failover to small and medium sized businesses as a redundancy solution to continue to run their business in the event the internet isn't available.

The Company sources some inventory outside the U.S., which are subject to trade and customs laws, regulations and tax requirements such as sanctions orders or tariffs set by governments through mutual agreements or unilateral actions. If additional tariffs or trade restrictions are implemented by the United States or other countries in connection with a global trade war, the cost of the Company's inventory manufactured in other countries and imported into the United States or other countries could increase, which in turn could adversely affect the demand for these products and have an adverse effect on our business.

The Company's shares trade on the Canadian security exchange ("CSE") under the symbol DCSI. The Company's shares also trade on the OTCQ markets, a U.S. trading platform, under the symbol DCSX, and on the Frankfurt Stock Exchange market under the symbol 7QU0.

 

*Basis of Presentation and Going Concern*

The accompanying unaudited condensed consolidated financial statements of the Company and its wholly owned subsidiaries (Collectively, the "Company") have been prepared in accordance with U.S. generally accepted accounting principles ("US GAAP) for interim financial reporting. All inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. These unaudited interim financial statements do not include certain information and footnote disclosures as required by the U.S. GAAP for complete annual financial statements. Accordingly, these statements should be read in conjunction with the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023.

In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company's consolidated financial statements for the years December 31, 2024 and 2023. The results of operations for the nine-month periods ended September 30, 2025 and 2024 are not necessarily indicative of the results for the full years.

The financial information as of December 31, 2024 presented in the unaudited condensed consolidated financial statements is derived from the audited consolidated financial statements for the year ended December 31, 2024.

The accompanying consolidated financial statements have been prepared on a historical cost basis except for certain financial liabilities measured at fair value.

The consolidated financial statements include the accounts of the Company and its direct wholly owned subsidiary, Direct Communication Solutions, Canada ("DCS Canada"), which is inactive. All intercompany transactions and balances have been eliminated on consolidation.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**1.** **NATURE OF OPERATIONS AND GOING CONCERN (cont'd)** 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business.

The Company has historically incurred losses and has an accumulated deficit of $17,694,883 (December 31, 2024: $16,715,585). As at September 30, 2025, the Company has working capital deficiency of $8,323,370 (December 31, 2024: $5,286,995), which is not considered sufficient to fund operations at their current levels for the next twelve months. Therefore, the Company will be required to generate additional funding through operations or external financing, which cannot be assured. These conditions raise substantial doubt on the Company's ability to continue as a going concern.

*Use of Estimates*

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S.") requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ materially from those estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of stock options and warrants, fair value of derivative liability, possible product returns and income taxes.

*Fair Value of Financial Instruments*

 

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as 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, based on the Company's principal or, in absence of a principal, the most advantageous market for the specific asset or liability.

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non- recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value.

The three tiers are defined as follows:

● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The Company believes the carrying amounts of cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, lease liabilities, credit facility, and current debt approximate fair value due to their short-term maturities.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**1.** **NATURE OF OPERATIONS AND GOING CONCERN (cont'd)** 

The following table represents the Company's financial instruments that are measured at fair value as of September 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **September 30, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Derivative Liability | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $365973 | $365973 |
| December 31, 2024 |  |  |  |  |
| Derivative Liability | $- | $- | $2014526 | $2014526 |

---

*Recent Accounting Pronouncements*

 

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires all public entities to disclose information about purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion foreach income statement line item that contains those expenses. The amendments are effective for the Company in fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 27, 2027. Early adoption is permitted on either a prospective or retrospective basis. The Company is currently evaluating the guidance and its impact to the financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated balance sheets, statements of income (loss) and comprehensive income (loss) and statements of cash flows.

From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the accompanying financial statements and disclosures.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**2.** **INVENTORY** 

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Components and raw materials | $876982 | $831308 |
| Allowance for components and raw materials | (506559) | (474684) |
| Assemblies | 34293 | 30840 |
| Allowance for assemblies | (31715) | (30534) |
|  | $373001 | $356930 |

---

During the nine month periods ended September 30, 2025, a total of $3,681,731 inventory was expensed as cost of sales (2024 - $2,213,781).

As discussed in Note 5, TAB has a lien on all the Company's assets which includes inventory. As at September 30, 2025, the Company had pledged $130,576 (December 31, 2024 - $344,844) of inventory as collateral for three loans (Note 6).

**3.** **EQUIPMENT** 

Equipment consists of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Computer equipment and purchased software | $152938 | $152938 |
| Furniture and fixtures | 51427 | 51427 |
| Tooling | 59300 | 59300 |
|  | 263665 | 263665 |
| Less—accumulated depreciation | (261487) | (257073) |
|  | $2178 | $6592 |

---

Depreciation expenses were $4,414 and $5,060 for nine months ended September 30, 2025, and 2024, respectively.

**4.** **ACCOUNTS PAYABLE AND ACCRUED LIABILITIES** 

Accrued liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Payroll related expenses | $132275 | $175132 |
| Interest accrued (Note 6) | 400264 | 196394 |
| Penalty accrued (Note 6) | 33241 |  |
| Other | 214780 | 131000 |
|  | $780560 | $502526 |

---

Accounts payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Vendor payable due within 12 months | $906169 | $950368 |
| Vendor payable not due within 12 months | $- | $- |

---

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**5.** **CREDIT FACILITY** 

In January 2020, the Company entered into a two-year agreement with TAB Bank ("TAB") for a $2,500,000 credit facility. Under the TAB Bank credit facility, the Company is obligated to assign all its accounts receivables, and the Company may request advances up to 90% of domestic accounts less than 90 days from the invoice date and not subject to offset up to $2,000,000. Interest is payable monthly at a rate the greater of (a) 90-Day SOFR rate plus 4.50% and (b) 6.41%. In addition, there is an administration fee equal to 0.008% per diem of the outstanding daily obligations.

The agreement is further extended automatically for a successive one-year term. As of December 31, 2024, the expiry date is January 23, 2025. The agreement was automatically renewed on January 23, 2025.

The Company may also borrow an amount limited to the lesser of: (a) 50% of the cost of eligible inventory, (b) 50% of funds employed and, (c) $500,000 (the "Inventory Advance"). Under the Inventory Advance, interest is payable monthly at a rate the greater of (a) 90-Day SOFR rate plus 4.50% and (b) 6.41%. In addition, there is an administration fee equal to 0.01% per diem of the outstanding daily obligations.

The Company does not retain any legal or equitable interest in any accounts receivables account sold under this credit facility. The Company assumes full risk of non-payment and guarantees full payment of all accounts. The Company granted a security interest in all its assets as collateral for its obligations under the facility. The credit facility consists of the following balances as at September 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Carrying amount of available credit limit in connection to the credit facility | $335758 | $239426 |
| Outstanding balance | 290413 | 206084 |

---

**6.** **DEBT** 

*Convertible Promissory Debentures*

On April 7, 2022, the Company received convertible debenture financing for the aggregate amount of $100,000. Subscribers may convert all or part of the principal amount outstanding under the debentures into units of the Company. The debentures are convertible into units at the higher of $8.33 or a price equal to the price of the shares or units of the next financing carried out before the second anniversary of the closing date, less a 30% discount.

The units comprise a share and one-half of one warrant, where a whole warrant shall be exercisable at $2.80 per common stock for a two-year term. The debentures have a maturity date of the second anniversary of the closing date and bear an interest rate of 10% per annum, payable semi-annually. During the year ended December 31, 2024, the Company had paid off the convertible debenture and interest in full.

In September 2022, the Company issued additional convertible promissory debentures totalling $1,500,000, bearing interest at 10% per annum (accruing annually and payable at maturity), and maturing on September 9, 2024, or a period of 24-months. The Debentures are convertible, at the option of the holder, to common stocks of DCS at a price of $8.33 or a price equal to the price of the shares of the next financing carried out before the second anniversary of the closing date at 25% premium. Upon issuance of the debentures, the Company also issued 107,143 share purchase warrants. Each warrant entitles the holder to purchase one common stock at a price of $6.02 per share for a period of 24 months from the date of issuance of the debentures. At December 31, 2024, the Company settled indebtedness by issuing additional convertible promissory debentures and paid off during the year.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

On September 13, 2024, the Company issued replacement convertible promissory debentures totaling $1,741,589, bearing interest at 15% per annum (accruing annually and payable at maturity), and maturing on September 14, 2025, or a period of 12-months to settle indebtedness related to the convertible debentures issued in 2022. The Debentures are convertible, at the option of the holder, to common stocks of DCS at a price of $6. Upon issuance of the debentures, the Company agreed to issue 196,582 share purchase warrants as additional compensation subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.20 per share for a period of 24 months from the date of issuance of the warrant. The warrants had been issued during the year ended December 31, 2024.

The Company recorded the conversion features with fixed exercise prices and the debt as a single unit with the debt in accordance with ASU 2020-06 and recorded the fair value of the warrants as an embedded derivative separated from the host contract in accordance with ASC 815. The fair value of the derivative liabilities is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statements of operations. The Company uses a derivative valuation technique to fair value the components of the hybrid contract on initial recognition, including the debt component, the conversion features, and the warrants. The following significant inputs and assumptions were used in the model:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Expected term (years) | 1.03 | 1.70 |
| Stock Price | CAD2.28 | CAD8.00 |
| Risk-free interest rate | 3.64% | 2.96% |
| Expected volatility | 98.29% | 150% |
| Dividend yield | 0.00% | 0.00% |
| Estimated forfeitures | 0.00% | 0.00% |

---

The following table presents the Company's embedded warrants of its convertible debt measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, determined based on "Level 3" inputs.

---

| |
|:---|
| **Balance at December 31, 2023** |
| Initial recognition |
| Net changes in fair value included in net loss |
| **Balance at December 31, 2024** |
| Net changes in fair value included in net loss |
| **Balance at September 30, 2025** |

---

The debt component of the convertible debenture is subsequently measured at amortized cost. The following table presents the debt component of the convertible debt measured at its fair value on initial recognition $1,035,556 and subsequently carried at amortized cost using the interest rate of 32.06% per annum over 24 months period. On September 14, 2024, the Company issued replacement convertible promissory debentures, and derecognized the convertible debt issued in the prior period. The debt component of the replacement convertible promissory debentures measured at its fair value on initial recognition of $1,395,104 and subsequently carried at amortized cost using the interest rate of 37% per annum over the 12 months period. As of September 30, 2025, total accrued interest of $274,408 (December 31, 2024 - $77,298) was recorded in accrued liabilities. The Company was in default on the loan that matured on September 14, 2025. Subsequently, on October 9, 2025, management secured an agreement with the lender to extend the loan's maturity by one year.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Beg.<br> Balance** | **Additions** | **Accretion** | **End.<br> Balance** |
|  | $ | $ | $ | $ |
| December 31, 2022 | 1035556 |  | 58217 | 1093773 |
| December 31, 2023 | 1093773 |  | 232939 | 1326712 |
| September 14, 2024 | 1326712 |  | 173288 |  |
| September 14, 2024 |  |  |  | 1395104 |
| December 31, 2024 | 1395104 |  | 81380 | 1476484 |
| September 30, 2025 | 1476484 |  | 265105 | 1741589 |

---

*Loans* 

 

In April 2024, the Company entered into a promissory note agreement of $100,000, bearing interest at 19% per annum (accruing semi - annually and payable every six months), and maturing on April 15, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In May 2024, the Company entered into a promissory note of $100,000, bearing interest at 19% per annum (accruing semi- annually and payable every six months), and maturing on May 24, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In June 2024, the Company entered into a promissory note of $100,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on June 28, 2026, or a period of 24-months. As additional consideration, the Company issued 20,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In July 2024, the Company entered into a promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on July 8, 2026, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on September 11, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance.

In August 2024, the Company entered into a promissory note of $75,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on August 31, 2026, or a period of 24-months. As additional consideration, the Company issued 15,000 purchase warrants on October 9, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.14 per share for a period of 24 months from the date of issuance.

In August 2024, the Company entered into another promissory note of $250,000, bearing interest at 19% per annum (accruing semi-annually and payable every six months), and maturing on August 24, 2026, or a period of 24-months. As additional consideration, the Company issued 50,000 purchase warrants on October 16, 2024. Each warrant entitles the holder to purchase one common stock at a price of CAD $3.09 per share for a period of 24 months from the date of issuance.

In November 2024, the Company entered into another promissory note of $100,000, bearing interest at 19% per annum (accruing semi-annually and payable every 6 months), and maturing on November 22, 2026, or a period of 24- months. As additional consideration, the Company issued 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

In November 2024, the Company entered into another promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on November 27, 2026, or a period of 24-months. As additional consideration, the Company issue 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In December 2024, the Company entered into promissory notes with an aggregated total of $200,000, bearing interest at 15% per annum (accruing annually and payable at maturity date), and maturing on December 10, 2026, or a period of 24-months. As additional consideration, the Company issued 40,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In December 2024, the Company entered into promissory note of $50,000, bearing interest at 19% per annum (accruing annually and payable annually), and maturing on December 26, 2026, or a period of 24-months. As additional consideration, the Company issue 5,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

 

In January 2025, the Company entered into promissory note of $50,000, bearing interest at 15% per annum (accruing annually and payable on maturity date), and maturing on January 10, 2027, or a period of 24-months. As additional consideration, the Company issued 10,000 purchase warrants on January 10, 2025. Each warrant entitles the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

In June 2025, the Company entered into promissory notes with an aggregated total $150,000, bearing interest at 19% per annum (accruing annually and payable annually), and maturing on June 26, 2027, or a period of 24-months. As additional consideration, the Company issued a purchase warrant concurrently, entitling the holder to purchase 30,000 shares of common stock at a price of CAD $3.12 per share for a period of 24 months from the date of issuance.

The Company records the fair value of the warrants exercisable with a variable amount of cash receivable due to foreign exchange as an embedded derivative separate from the host contract. The fair value of the derivative liabilities is revalued on each Statement of Financial Position date with corresponding gains and losses recorded in profit or loss. The Company uses a derivative valuation technique to fair value the components of the hybrid contract on initial recognition, including the debt component and the warrants. The following significant inputs and assumptions were used in the model:

---

| | | |
|:---|:---|:---|
|  | **September 30, <br> 2025** | **December 31, <br> 2024** |
| Expected term (years) | 0.95-1.71 | 1.70-2.00 |
| Stock price | 2.28-4.36 | 0.66-5.40 |
| Risk-free interest rate | 3.64%-4.25 | 4.21%-4.25 |
| Expected volatility | 96.38%-188.28 | 119.54%-186.17 |
| Dividend yield | 0.00% | 0.00% |
| Estimated forfeitures | 0.00% | 0.00% |

---

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

The following table presents the Company's embedded warrants of its promissory notes measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, determined based on "Level 3" inputs.

 

---

| |
|:---|
| **Balance at December 31, 2023** |
| Initial recognition during the year |
| Net changes in fair value included in net loss |
| **Balance at December 31, 2024** |
| Initial recognition during the year |
| Warrants exercised) |
| Net changes in fair value included in net loss |
| **Balance at September 30, 2025** |

---

The debt component of the loans subsequently measured at amortized costs. The following table presents the debt component of the loans measured at its fair value on initial recognition and subsequently carried at amortized cost using the effective interest rate ("EIR") per annum over the loan period. As of September 30, 2025 and December 31, 2024, the total accrued interest was recorded in current debt and long-term debt in accordance with the loan payment terms.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Loan ID** | **Date** | **EIR** | **Beg. Balance** | **Additions & Payments** | **Interest & Accretion** | **End. Balance** | **Total Interest accrued** | **Total Interest accrued** |
|  |  | % |  | $— |  | $— | $— | $|
| 1 | December 31, 2024 | 21 |  |  |  |  |  | 4034 |
| 2 | December 31, 2024 | 21 |  |  |  |  |  | 2004 |
| 3 | December 31, 2024 | 23 |  |  |  |  |  | 7644 |
| 4 | December 31, 2024 | 25 |  |  |  |  |  | 3616 |
| 5 | December 31, 2024 | 37 |  |  |  |  |  | 3760 |
| 6 | December 31, 2024 | 42 |  |  |  |  |  | 16788 |
| 7 | December 31, 2024 | 35 |  |  |  |  |  | 2030 |
| 8 | December 31, 2024 | 34 |  |  |  |  |  | 699 |
| 9 | December 31, 2024 | 40 |  |  |  |  |  | 130 |
| 10 | December 31, 2024 | 62 |  |  |  |  |  | 1726 |
| 1 | September 30, 2025 | 21 |  |  |  |  |  | 18245 |
| 2 | September 30, 2025 | 21 |  |  |  |  |  | 16215 |
| 3 | September 30, 2025 | 23 |  |  |  |  |  | 18863 |
| 4 | September 30, 2025 | 25 |  |  |  |  |  | 9226 |
| 5 | September 30, 2025 | 37 |  |  |  |  |  | 12174 |
| 6 | September 30, 2025 | 42 |  |  |  |  |  | 28565 |
| 7 | September 30, 2025 | 35 |  |  |  |  |  | 6741 |
| 8 | September 30, 2025 | 34 |  |  |  |  |  | 6309 |
| 9 | September 30, 2025 | 40 |  |  |  |  |  | 2486 |
| 10 | September 30, 2025 | 62 |  |  |  |  |  | 24164 |
| 11 | September 30, 2025 | 38 |  |  |  |  |  | 5404 |
| 12 | September 30, 2025 | 34 |  |  |  |  |  | 5518 |
| 13 | September 30, 2025 | 34 |  |  |  |  |  | 2759 |

---

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

Pursuant to a vendor changing its terms with the Company from billing devices and device management subscriptions from a payment term of 36 months down to 30 days reducing the frequency of occurrence for long term payables, the Company entered into an agreement to restructure the payables into a long-term loan with a principal of $3,200,000, bearing interest at 10%. The interest will be due quarterly, and the principal will be due in 5 years. The balance of $2,914,776 of the payables was forgiven and recognized in the Company's consolidated statement of operating loss and comprehensive loss during the year ended December 31, 2024. As at September 30, 2025, the Company recorded $400,264 (December 31, 2024 - $196,394) accrued interest and finance fee and a carrying balance of $3,600,265 (December 31, 2024 - $3,396,394) of the loan was outstanding. During the nine months period ended September 30, 2025, the Company paid $50,000 interest expenses. The Company has fallen behind on interest payments. Although the lender has not yet issued a formal demand letter or declared a default as of the reporting date, this breach of the loan agreement entitles the lender to demand immediate repayment of the full loan balance. Therefore, the entire loan balance has been reclassified from long-term to short-term as at September 30, 2025.

*Related party loans*

 

During the six months period ended June 30, 2025, a company controlled by a family member of Mr. Mike Zhou, a principal shareholder of the Company, advanced $136,100 to the Company to support its operations (note 10). The funds were used to pay off outstanding consulting fees. The advance is non-interest-bearing and repayable on demand. On July 14, 2025, the Company entered into a promissory note for $1,386,000 with the same related party, which replaced the above mentioned advance on demand. This promissory note, structured as a bridge loan, features an Original Issue Discount (OID) of $126,000. It is to be funded in up to six monthly tranches of up to $210,000 each. Each tranche matures 12 months from its respective advance date. The loan bears interest at a rate of 10% per annum and is personally guaranteed by the Company's CEO. As of September 30, 2025, the Company has received three tranches of loan totaling $494,061. The loan bears effect interest rate of 18.37%. The carrying amount of the loan was $497,955, which included accrued interest of $3,894.

 

Separately, in July 2025, the Company entered into a supply chain loan agreement with the same related party for up to $500,000. The loan carries fixed interest amount of $30,000, payable annually in advance. The loan is personally guaranteed by the Chairman of the Board of Directors. As of September 30, 2025, the Company has drawn $141,200 under this agreement and has recorded interest expenses of $2,118.

*Loans with collateral*

In May 2024, the Company entered into a loan agreement with a third party for proceeds of $250,000. The proceeds will be used for operating purposes. The loan is repayable in 24 monthly payments starting May 2024, bearing interest at 22.2%, and is secured by a general security agreement on the Company's assets.

In August 2024, the Company entered into two loan agreements with third parties for proceeds of $174,221 and $200,000. The proceeds will be used for operating purposes. The loans are repayable in 65 and 35 weekly payments, respectively, starting August 2024, bearing interest at 23.5% and 37.24% respectively, and are secured by a general security agreement on the Company's assets. The loans were fully paid in March 2025.

In March 2025, the Company entered into a loan agreement with a third party for proceeds of $284,500 . The loan is repayable in 35 weekly payments, starting April 2025, bearing Estimated Annual Percentage Rate at 84.26%, and is secured by a general security agreement on the Company's assets. The loan is also personally guaranteed by the Company's former CEO. The estimated weekly payment is based on 1.97% of the Company's estimated weekly projected revenue. The Company incurred the total cost of the financing of $90,500 relating to this loan. As of September 30, 2025, the Company was not in compliance with a covenant of the loan agreement that prohibits entering into additional financing arrangements without the lender's consent and has also fallen behind on interest payments. While the lender has not yet taken formal action, the non-compliance could allow the lender to demand immediate repayment of the full loan balance, exercise its rights under the related security agreement and personal guarantee, and seek with contractual damages and collection costs.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**6.** **DEBT (cont'd)** 

In March 2025, the Company entered into a loan agreement with a third party for proceeds of $175,000. The loan is repayable in 65 weekly payments, starting April 2025, bearing Annual Percentage Rate at 43.31%, and is secured by a general security agreement on the Company's assets. The Company incurred the total cost of the financing of $50,575 relating to this loan. As of September 30, 2025, the Company was not in compliance with a covenant of the loan agreement that prohibits entering into additional financing arrangements. While the lender has not yet taken formal action, this non-compliance could allow the lender to demand immediate repayment of the full loan balance, exercise its rights under the related security agreement and personal guarantee, and seek with contractual damages and collection costs.

In April 2025, the Company entered into a loan agreement with third party for proceeds of $235,000. The loan is payable in 26 weekly payments, starting April 2025, bearing Estimated Annual Percentage Rate at 165%, and is secured by a general security agreement on the Company's assets. The loan is also personally guaranteed by the Company's former CEO. The estimated weekly payment is based on the 18% share of the Company's projected revenue. The Company incurred the total cost of the financing of $100,000 relating to this loan. As of September 30, 2025, the Company was not in compliance with a covenant of the loan agreement that prohibits the sale or pledge of the Company's receivable and was also fallen behind on interest payments. While the lender has not yet taken formal action, the non-compliance could allow the lender to demand immediate repayment of the full loan balance, exercise its rights under the related security agreement and personal guarantee, and seek with contractual damages and collection costs.

During the year ended December 31, 2023, the Company entered into two loan agreements and pledged $110,532 of inventory as collateral. The Company entered into two additional loan agreements during the year ended December 31, 2024 and pledged an additional $234,312 of inventory as collateral. During the nine months period ended September 30, 2025, one loan matured and was repaid. Upon the maturity and repayment of this loan, the Company incurred a penalty of $242,568 for breaching the terms of the loan agreement. As of September 30, 2025, $209,326 of this penalty has been paid, and the remaining balance of $33,241 is included in accrued liabilities.

The outstanding loans have the following terms as of September 30, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **Loan 1** | **Loan 2** | **Loan 3** |
| Expected term (months) | 60 | 36 | 24 |
| Interest rate | 6.77% | 19.02% | 16% |
| Payable within 12 months | $11866 | $14956 | $40042 |
| Payable not due in 12 months | $25673 |  |  |

---

 

During the nine months period ended September 30, 2025, the Company recorded $26,222 (2024-$64,912) of interest expense in the consolidated statement of loss and comprehensive loss in connection to the three loan agreements. As of September 30, 2025, a carrying balance of $92,537 (December 31, 2024 - $160,233) relating to the loans were outstanding.

*Deferred Revenue*

The Company record a contract liability when we receive consideration in advance of transferring goods or services to a customer. At September 30, 2025, our contract liability balance was $350,130 (December 31, 2024 - $1,786,274). During the nine months period ended September 30, 2025, the Company recognized $1,756,290 (2024 - $82,367) of revenue that was included in the contract liability balance at December 31, 2024.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**7.** **LEASES** 

On May 27, 2021, the Company entered into a lease agreement whereby the Company will lease premises in San Diego, California effective November 1, 2021. The lease ("Lease") has an initial 60-month term. Not less than nine months prior to the expiration of the Lease, the Company has an option to extend the Lease term for an additional five years at then current market rates. The right to use leased asset was measured at the amount of the lease liability of $899,102 using the Company current incremental borrowing rate of 10%.

The following table presents the Company's leases balances As of September 30, 2025 and December 31, 2024 under ASC 842.:

---

| | | |
|:---|:---|:---|
|  | **Balance**<br>**September 30,**<br>**2025** | **Balance**<br>**December 31,**<br>**2024** |
| Right-of-use assets, net | $194805 | $329671 |
| Lease liabilities – current | 229358 | 207722 |
| Lease liabilities – non-current | 20216 | 194805 |

---

Depreciation expenses of $134,865 (2024 - $134,865) was recorded in general and administrative expense in the consolidated statements of operations for the nine months period ended September 30, 2025. The remaining lease term as of September 30, 2025 was 1.08 years. The weighted-average discount rate as of September 30, 2025 was 10%. For the nine months period ended September 30, 2025, cash outflows from operating leases were $176,643 (2024 - $171,495).

Future minimum lease payments under the lease agreement as of September 30, 2025 are as follows:

 

---

| | |
|:---|:---|
| Years Ending December 31: |  |
| &nbsp;&nbsp;&nbsp;2025 | $60059 |
| &nbsp;&nbsp;&nbsp;2026 | 202160 |
|  | $262219 |

---

The Company does not have any short-term or low value leases.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**8.** **COMMON STOCK AND COMMON STOCK WARRANTS** 

*Common Stock*

 

Holders of common stock are entitled to one vote for each share held. The Company has not declared any dividends since incorporation. The Company has 5,714,286 common stocks authorized with a par value of $0.00001.

There were no transactions affecting common stock during the year ended December 31, 2024.

During the nine months period ended September 30, 2025, 40,000 common shares were issued pursuant to 40,000 share purchase warrants exercised at $2.95 CAD per share for gross proceeds of $83,978. An amount of $153,665 previously recognized as a warrant derivative liability has been reallocated to share capital.

During the nine months period ended September 30, 2025, 142,144 common shares were issued pursuant to the vesting of 142,144 RSUs.

*Warrants*

 

In September 2022, the Company issued convertible promissory debentures (note 6) and upon issuance of the debentures, the company also issued 107,143 share purchase warrants. Each warrant entitles the holder to purchase one common stock at a price of $6.02 per share for a period of 24 months from the date of issuance of the debentures. In September 2024, the issued 107,143 share purchase warrants expired.

In September 2024, the Company issued convertible promissory debentures (Note 6) and upon issuance of the debentures, the company agreed to issue 196,582 share purchase warrants, subject to CSE approval. Each warrant entitles the holder to purchase one common stock at a price of $2.36 per share for a period of 24 months from the date of issuance of the warrant. The warrants were issued on October 10, 2024.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**8.** **COMMON STOCK AND COMMON STOCK WARRANTS (cont'd)** 

From April to August 2024, the Company entered into promissory note agreements (Note 6) and subsequently issued 115,000 purchase warrants during the year ended December 31, 2024. Each warrant entitles the holder to purchase one common stock at various price of CAD $2.00 to CAD $3.14 per share for a period of 24 months from the date of issuance depending on the promissory notes term. The Company determined the warrants represent an embedded derivative and has accounted for the warrants in derivative liability.

From November to December 2024, the Company entered into promissory note agreements (Note 6) and agreed to issue 65,000 purchase warrants in connection to the promissory note. Each warrant entitles the holder to purchase one common stock at the price of CAD $2.95 per share for a period of 24 months from the date of issuance depending on the promissory notes term. As of September 30, 2025, all 65,000 purchase warrants have been issued.

During January 2025, the Company entered into a promissory note agreement (Note 6) and issued 10,000 purchase warrants in connection to the promissory note. Each warrant entitles the holder to purchase one common stock at the price of CAD $2.95 per share for a period of 24 months from the date of issuance.

During June 2025, the Company entered into two promissory note agreements (Note 6) and issue 30,000 purchase warrants in connection to the promissory note. Each warrant entitles the holder to purchase one common stock at the price of CAD $3.12 per share for a period of 24 months from the date of issuance.

The Company determined the warrants represent an embedded derivative and has accounted for the warrants in derivative liability.

The following table summarizes the warrant activity for the nine months period ended September 30, 2025 and the year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **warrants** | **Weighted average**<br> **exercise price** |
| **Outstanding, December 31, 2024** | 107143 | $6.02 |
| Granted | 311582 | 2.08 |
| Expired | (107143) | 6.02 |
| **Outstanding, December 31, 2024** | 311582 | $2.08 |
| Granted | 105000 | 2.21 |
| Exercised | (40000) | 2.05 |
| **Outstanding, September 30, 2025** | 376582 | $2.21 |

---

The following table summarizes the warrants outstanding as at September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Warrants Outstanding** | **Exercise Price** | **Exercise Price** | **Weighted Average Remaining Life (years)** |
| September 11, 2026 | 50000 | CAD $| 2.00 | 0.95 |
| October 9, 2026 | 15000 | CAD $| 3.14 | 1.02 |
| October 10, 2026 | 196582 | CAD $| 3.20 | 1.03 |
| October 16, 2026 | 50000 | CAD $| 3.09 | 1.04 |
| January 10, 2027 | 35000 | CAD $| 2.95 | 1.28 |
| June 16, 2027 | 30000 | CAD $| 3.12 | 1.71 |

---

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**9.** **STOCK OPTIONS AND RESTRICTED SHARES UNIT ("RSU")** 

In October 2017, the Company's board of directors and stockholders approved the 2017 Stock Plan (2017 Plan) under which 500,000 shares of common stock are reserved for the granting of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and performance awards to employees, directors and consultants. Recipients of stock option awards are eligible to purchase shares of the Company's common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of awards granted under the 2017 Plan is ten years and vesting is determined by the board of directors. Stock awards are generally not exercisable prior to the applicable vesting date, unless otherwise accelerated under the terms of the applicable stock plan agreement. Unvested shares of the Company's common stock issued in connection with an early exercise allowed by the Company may be repurchased by the Company upon termination of the optionee's service with the Company. The vesting terms of each option grant are at the discretion of the Board of Directors.

In December 2023, the Board of Directors and a majority of the stockholders approved to replace the 2017 Stock Plan with the 2023 Omnibus Plan. Any previously granted stock options shall continue to exist under the 2023 Omnibus plan, and the number of authorized shares for combined issuance of awards, including stock options, as of September 30, 2025 is 1,000,000.

The following table summarizes stock option transactions under the 2023 Omnibus Plan:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Options** | **Weighted average**<br> **exercise price** |
| **Outstanding, December 31, 2023** | **540857** | $**4.03** |
| Granted | 177500 | $5.00 |
| Forfeited | (269428) | $3.66 |
| **Outstanding, December 31, 2024 and September 30, 2025** | **448929** | $**4.64** |

---

At September 30, 2025, the Company had outstanding and exercisable stock options as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Expiry** | **Number of Options Outstanding** | **Number of Options Exercisable** | **Exercise Price** | **Weighted Average Remaining Life (years)** |
| October 5, 2027 | 178571 | 178572 | $3.29 | 2.01 |
| February 4, 2032 | 6429 | 6238 | $2.87 | 6.35 |
| February 24, 2032 | 10715 | 10715 | $2.87 | 6.41 |
| March 14, 2032 | 8571 | 7834 | $4.13 | 6.46 |
| May 9, 2027 | 52857 | 52857 | $8.40 | 1.61 |
| May 9, 2027 | 14286 | 14286 | $5.53 | 1.61 |
| December 23, 2029 | 177500 | 177500 | $5.17 | 4.23 |

---

As of September 30, 2025, there was $1,865 (December 31, 2024 - $704,243) of total unrecognized stock-based compensation cost related to outstanding nonvested equity awards that is expected to be recognized as an expense over the remaining vesting period of 1.61 years to 4.23 years.

The Company uses a Black-Scholes option valuation model to determine the fair value of stock-based compensation under ASC Topic 718, *Stock Compensation*. The expected volatility is based on the historical volatility of a peer group of publicly-traded companies. The risk-free interest rate is based on the yield on the measurement date of a zero-coupon U.S. Treasury bond whose maturity period approximately equals the option's expected term.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**9.** **STOCK OPTIONS AND RESTRICTED SHARES UNIT ("RSU") (cont'd)** 

The expected life represents the time the options granted are expected to be outstanding. Forfeitures are adjusted in the period when forfeitures occur.

The following are the assumptions used in the Black-Scholes option valuation model for option granted during the nine months period ended September 30, 2025 and year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Fair value of common stock |  | $5.00 |
| Expected term (years) |  | 5 |
| Risk-free interest rate |  | 4.4% |
| Expected volatility |  | 120.7% |
| Dividend yield |  |  |
| Estimated forfeitures |  |  |

---

Pursuant to the approval of 2023 Omnibus Plan, the maximum number of common shares that may be issued for all awards, including RSU, is 1,000,000 shares. The following table summarizes RSU transactions under the 2023 Omnibus Plan:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **RSU** | **Weighted average**<br> **Fair value** |
| **Outstanding, December 31, 2023** |  |  |
| Granted | 142144 | $5.10 |
| **Outstanding, December 31, 2024** | 142144 | $5.10 |
| Vested | (142144) | $(5.10) |
| **Outstanding, September 30, 2025** |  | $- |

---

During the nine months period ended September 30, 2025, no RSUs were granted compared to 142,144 RSUs granted to certain officers and directors of the Company during the year ended December 31, 2024. The Company recorded share-based compensation expenses of $677,398 (2024 – $47,536) relating to the vesting portion of RSUs.

**10.** **RELATED PARTY AGREEMENTS** 

Related parties and related party transactions impacting the accompanying financial statements are summarized below and include transactions with the following individuals or entities:

*Remuneration attributed to key management personnel*

Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Company's Board of Directors and corporate officers.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**10.** **RELATED PARTY AGREEMENTS (cont'd)** 

Remuneration attributed to key management personnel can be summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Nine months ended <br> September 30,** | **Nine months ended <br> September 30,** |
|  | **2025** | **2024** |
|  | $ | $ |
| Salary | 560570 | 584903 |
| Consulting fees | 187500 | 417500 |
| Marketing Service |  | 6000 |
| Share-based compensation | 78806 | 960 |
| RSU | 677398 | - |
| Total | 1504274 | 1009363 |

---

*Transaction with related parties*

Chris Bursey, the President and Chief Executive Officer of the Company incurred $188,755 (2024 – $74,185) operating expenses on behalf of the Company during the nine months period ended September 30, 2025. As of September 30, 2025, the Company owed $97,496 to Mr. Bursey (December 31, 2024 – a receivable balance of $2,259). The outstanding balance was included in accounts payable. In September 2025, Mr. Bursey resigned as the director and the CEO of the Company.

John Hubler, previously a member of the Company's Board of Directors, is a partner of BH IoT Group. Mr. Hubler rejoined the Company as a director in April 2023 and resigned in September 2024. In November 2020, the Company entered into an agreement with BH IoT Group to assist in building complete IoT bundled solutions. The Company entered into an initial Phase 1 project expected to last 3 months. At the end of Phase1, both parties agreed to continue the relationship on a month-to-month basis. John Hubler was considered as a related party starting April 2023 up to August 2024. The Company recorded $Nil (2024 - $140,000) related party professional fees on the consolidated statement of operations for the nine months period ended September 30, 2025.

Mike Zhou, previously a member of the Company's Board of Directors, is the owner of MYZ Corporate Relations, Ltd. Mr. Zhou resigned in March 2024. In May 2021, the Company entered into an agreement with MYZ Corporate Relations, Ltd. to provide consulting services on strategic matters related to business development opportunities, product development and marketing strategies for a monthly fee of $4,000. The agreement is effective for one year and will automatically renew annually unless terminated by either party. The Company recorded $Nil of professional fees on the consolidated statement of operations for the nine months period ending September 30, 2025 (2024 - $nil). As at September 30, 2025, the Company owed $Nil (December 31, 2024 - $nil) to MYZ Corporate Relations, Ltd. Mike Zhou became the Company's major shareholder following an ownership restricting completed in September 2025. A company controlled by a family member of Mr. Zhou lent $494,061 of promissory loan and $141,200 supplier chain loan to the Company during the nine months period ended September 30, 2025. The amount is recorded under current debt (see note 6).

Mr. Lichtenwald, previously a member of the Company's Board of Director and the CFO of the Company, is a principal at Zeus Capital Ltd. On June 30, 2022, Mr. Lichtenwald resigned as a director. In November 2021, the Company entered into an agreement with Zeus Capital Ltd. to assist the company with corporate finance and strategic initiatives for a monthly fee of $15,000. The agreement is effective for one year and will automatically renew annually unless terminated by either party. The Company recorded $75,000 of professional fees on the consolidated statement of operations for the nine months period ended September 30, 2025 (2024 - $135,000). As at September 30, 2025, the Company owed $30,000 (December 31, 2024 - $32,650) to Zeus Capital Ltd.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**10.** **RELATED PARTY AGREEMENTS (cont'd)** 

Also, Mr. Lichtenwald is a principal of Zeus Accounting Solutions Corp., formerly known as Lichtenwald Professional Corp ("LPC"). The Company entered into an agreement with LPC to provide CFO service fees of $12,500 monthly, effective April 2022. The Company recorded $62,500 of professional fees on the consolidated statement of operations for the nine months period ended September 30, 2025 (2024 - $112,500). As at September 30, 2025, the Company owed $25,000 (December 31, 2024 - $22,700) to Zeus Accounting Solutions Corp. Mr. Lichtenwald resigned as the CFO in May 2025.

Julie Hajduk, a member of the Company's Board of Directors, is a principal at Purple Crown Communications Corp. Ms. Hajduk provides services and is compensated via director's fees of $2,500 monthly. Since May 2023, Ms. Hajduk provided additional service to the Company in connection to its plans for NYSE up-listing, The Company recorded $Nil (2024 - $6,000) of related party marketing fees and $Nil (2024 - $10,000) of related party professional fees on the consolidated statement of operations for the nine months period ended September 30, 2025. As at September 30, 2025, the Company owed $Nil (December 31, 2024 - $12,000) to Purple Crown Communications Corp. Ms. Hajduk resigned as a director in June 2025.

On May 31, 2025, the Company entered into an agreement with Ying Xu to provide interim CFO service fees of $12,500 monthly. The Company recorded $50,000 of professional fees on the consolidated statement of operations for the nine months period ended September 30, 2025 (2024 - $nil). As at September 30, 2025, the Company owed $18,750 (December 31, 2024 - $nil) to Ms. Xu.

**11.** **SEGMENT INFORMATION** 

Operating segments are defined as components of an enterprise (business activity from which it earns revenue and incurs expenses) for which discrete financial information is available and regularly reviewed by the chief decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker (CODM) is its Chief Executive Officer. The Company views its operations and manages its business as a single operating and reporting segment.

Although all operations are based in the U.S., the Company generated a portion of its revenue from customers outside of the U.S. Information about the Company's revenue from different geographic regions for the nine months ended September 30, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30** | **September 30** | **September 30** | **September 30** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | $% | % | $% | % |
| United States |  | 90.7% |  | 93.6% |
| Canada |  | 3.4% |  | 5.0% |
| Others combined |  | 5.9% |  | 1.4% |
| Total Revenue |  | 100.0% |  | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30** | **September 30** | **September 30** | **September 30** |
| <br>**Revenue Type (in '000)** | **2025** | **2025** | **2024** | **2024** |
|  | $% | % | $% | % |
| Product |  | 77.7% |  | 55.6% |
| Software as a Service (SaaS) |  | 26.5% |  | 34.0% |
| Engineering/Support Service |  | 2.2% |  | 4.4% |
| Wireless Data |  | 3.5% |  | 5.7% |
| Commission Income |  | 0.1% |  | 0.3% |
| Total Revenue |  | 100.0% |  | 100.0% |

---

All of the Company's significant identifiable assets were located in the United States as of September 30, 2025 and December 31, 2024.

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

**12.** **CONCENTRATION RISK** 

The Company derived revenue from one customer totaling 40.39% and 27.0% of the Company's total revenue for nine months ended September 30, 2025 and 2024, respectively. At September 30, 2025 and December 31, 2024, one customer accounted for a total of 10.9% and 11.6% of accounts receivable, respectively.

To manage the concentration of customer risk, the Company continuously looks for opportunities to diverse revenue streams and expand client base via marketing. All contracts with customers are signed for a term, and the Company ensures the customer needs are being met by building exceptional customer service relationships.

The Company has concentrations in the purchases with its suppliers. For the nine months ended September 30, 2025 and 2024, the two largest suppliers accounted for a total of 80.8% and 86.5% of total purchases, respectively.

**13.** **OTHER EXPENSES** 

During the nine months ended September 30, 2025 and 2024, the Company had the following expenses in other expenses:

---

| | |
|:---|:---|
|  | **Nine months ended <br> September 30** |
|  | **2024** |
|  | $ |
| Insurance | 101412 |
| Licenses and fees | 39626 |
| Office expenses | 38021 |
| Automobile expense | 1165 |
| Meals and entertainment | 25436 |
| Travel expense | 25565 |
| Utilities | 42450 |
| Tax filing fees) | 12335 |
| Software expense | 10990 |
| Foreign exchange gain | - |
| **Total** | **297000** |

---

**14.** **COMMITMENTS AND CONTINGENCIES** 

***Contingencies***

 

The Company accounts for loss contingencies in accordance with ASC Topic 450 and other related guidelines.

As of September 30, 2025 and as at the date of the prospectus, the Company's management is of the opinion that there are no contingencies to account for.

***Commitments***

As of September 30, 2025, the Company did not have any significant capital and other commitments.

 ****

**Direct Communication Solutions, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Expressed in US dollars)

For the Nine Months Periods Ended September 30, 2025 and 2024

 ****

**15.** **INCOME TAXES** 

The Company is an S Corporation for income tax purposes.

A reconciliation of income taxes at statutory rates for the nine months periods ended September 30, 2025 and 2024 with the reported taxes is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net loss before tax | $(979298) | $857267 |
| Expected income tax (recovery) | (245211) | 252881 |
| Change in statutory, foreign tax, foreign exchange rates and other | 65491 | 155073 |
| Permanent differences | (37002) | 12811 |
| Adjustment to prior year provision versus statutory tax returns | (100) | (103712) |
| Changes in unrecognized deductible temporary differences | 216822 | (317053) |
| Total income tax expense (recovery) | - | - |

---

The significant components of the Company's deferred tax assets that have not been included on the consolidated statement of financial position are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Deferred Tax Assets (Liabilities) |  |  |
| Allowance for bad debts | $26590 | $2741 |
| Inventory reserves | 110496 | 69638 |
| Right-of-use assets | (47653) | (94048) |
| Lease liabilities | 61051 | 113085 |
| Accrued vacation | 21283 | 21872 |
| Sec. 263A Unicap | 19588 | 23613 |
| Fixed asset basis difference including depreciation | (1075) | (1485) |
| State income taxes - California mandatory lag method | 220 | 226 |
| Capitalized R&D | 271089 | 247390 |
| Federal R&D Credit | 113797 | 113797 |
| Non-qualified stock options | 121219 | 124404 |
| Non-capital losses available for future period | 2781789 | 2343162 |
|  | 3478394 | 2964394 |
| Unrecognized deferred tax assets | (3478394) | (2964394) |
| Net Deferred Tax Assets (Liabilities) | $- | $- |

---

**16.** **SUBSEQUENT EVENTS** 

Subsequent to September 30, 2025, the company secured an agreement with the lender to extend convertible loan's maturity to October 10, 2026. All other material terms of the debenture and associated share purchase warrants, including the 15% per annum interest rate and the conversion price of US$6.00 per share, remain unchanged.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. *Other Expenses of Issuance and Distribution***

The following table sets forth all costs and expenses, other than underwriting discounts and commissions, paid or payable by us in connection with the sale of the common stock being registered. All amounts shown are estimates except for the SEC registration fee, the FINRA filing fee and the listing fee for NYSE American.

---

| | |
|:---|:---|
|  | **Amount<br> Paid or to be<br> Paid** |
| SEC registration fee | $2071.50 |
| FINRA filing fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2750 |
| NYSE American listing fee | 65000 |
| Printing and engraving expenses | 35.000 |
| Legal fees and expenses | 300000 |
| Accounting fees and expenses | 60000 |
| Transfer agent and registrar fees and expenses | 35000 |
| Consulting fees and related expenses | 30000 |
| Miscellaneous expenses | 40000 |
| Total | $534856.50 |

---

**Item 14. *Indemnification of Directors and Officers***

Section 145 of the Delaware General Corporation Law authorizes a court to award, or a corporation's board of directors to grant, indemnity to directors and officers in terms sufficiently broad to permit such indemnification under certain circumstances for liabilities, including reimbursement for expenses incurred, arising under the Securities Act. The Registrant's certificate of incorporation requires the Registrant to indemnify its directors and officers to the maximum extent permitted by the Delaware General Corporation Law, and the Registrant's amended and restated bylaws provide that the Registrant will indemnify its directors and officers and permit the Registrant to indemnify its employees and other agents, in each case to the maximum extent permitted by the Delaware General Corporation Law. We will enter into indemnification agreements with each of our officers and directors a form of which is filed as an exhibit to this Registration Statement.

These agreements will require us to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

**Item 15. *Recent Sales of Unregistered Securities***

In the three years preceding the filing of this registration statement, the Registrant issued the following securities that were not registered under the Securities Act.

The Registrant believes that each of the following issuances was exempt from registration under the Securities Act in reliance on Regulation D under the Securities Act or pursuant to Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. The Registrant believes that our issuances of awards granted under our share incentive plans to our employees, directors, officers and consultants were exempt from registration under the Securities Act in reliance on Rule 701 under the Securities Act. No underwriters were involved in these issuances of securities.

In September 2022, the Registrant sold $1.5 million in aggregate principal amount of unsecured convertible debentures to six investors and issued warrants to purchase 750,000 shares of our common stock in connection therewith.

On September 11, 2024, the Registrant issued an aggregate of 50,000 share purchase warrants, each entitling the holder to purchase one common stock at a price of CAD $2.00 per share for a period of 24 months from the date of issuance, of which 10,000 were issued in connection with the promissory note agreement the Registrant entered into in April 2024, 10,000 were issued in connection with the promissory note agreement the Registrant entered into in May 2024, 20,000 were issued in connection with the promissory note agreement the Registrant entered into in June 2024, and 10,000 were issued in connection with the promissory note agreement the Registrant entered into in July 2024.

On October 9, 2024, in connection with a promissory note the Registrant entered into in August 2024, the Registrant issued 15,000 share purchase warrants, each entitling the holder to purchase one common stock at a price of CAD $3.14 per share for a period of 24 months from the date of issuance.

On October 10, 2024, in connection with the convertible promissory debentures that the Registrant entered into in September 2024, the Registrant issued 196,582 share purchase warrants, each entitling the holder to purchase one common stock at a price of CAD $3.20 per share for a period of 24 months from the date of issuance.

On October 16, 2024, in connection with a promissory note the Registrant entered into in August 2024, the Registrant issued 50,000 share purchase warrants, each entitling the holder to purchase one common stock at a price of CAD $3.09 per share for a period of 24 months from the date of issuance.

On January 10, 2025, in connection with the promissory notes the Registrant entered into in November and December 2024 and January 2025, the Registrant issued 65,000 share purchase warrants, each entitling the holder to purchase one common stock at a price of CAD $2.95 per share for a period of 24 months from the date of issuance.

On the same date, the Registrant issued 40,000 shares of common stock for gross proceeds of $83,978 in connection with the exercise of warrants at CAD $2.95 per share.

The Registrant granted stock options to its directors, officers, employees, consultants, and other service providers to purchase an aggregate of 1,000,000 shares of its common stock under the 2023 Stock Plan with per share exercise prices ranging from $2.87 to $8.40, and the Registrant has not issued any shares of its common stock upon exercise of stock options under its 2023 Stock Plan.

During the nine months ended September 20, 2025, the Registrant issued 142,144 shares of common stock upon the vesting of 142,144 RSUs.

**Item 16. *Exhibits and Financial Statement Schedules***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibits

The following documents are filed as exhibits to this registration statement:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1 | [Amended and Restated Certificate of Incorporation, dated December 16, 2019](ea026724201ex3-1_direct.htm) |
| 3.2 | [Certificate of Amendment to the Amended and Restated Certificate of Incorporation, dated February 9, 2023](ea026724201ex3-2_direct.htm) |
| 3.3 | [Proposed Certificate of Amendment to the Amended and Restated Certificate of Incorporation, dated October 29, 2025](ea026724201ex3-3_direct.htm) |
| 3.4 | [Amended and Restated Bylaws, as currently in effect](ea026724201ex3-4_direct.htm) |
| 4.1\* | Form of Representatives' Warrants |
| 4.2 | [Form of Convertible Debenture](ea026724201ex4-2_direct.htm) |
| 4.3 | [Form of Warrant Agreement for Convertible Debenture Financing](ea026724201ex4-3_direct.htm) |
| 4.4 | [Form of Securities for Debt Amendment Agreement](ea026724201ex4-4_direct.htm) |
| 5.1\* | Opinion of Rimon, P.C. |
| 10.1+ | [Direct Communication Solutions, Inc. Amended and Restated 2023 Stock Plan, and form of stock option agreement thereunder](ea026724201ex10-1_direct.htm) |
| 10.2+ | [Employment Agreement, dated September 30, 2019, between Direct Communication Solutions Inc. and David Scowby](ea026724201ex10-2_direct.htm) |
| 10.3+ | [Employment Agreement, dated September 30, 2019, between Direct Communication Solutions Inc. and Eric Placzek](ea026724201ex10-3_direct.htm) |
| 10.4+ | [Employment Agreement between Direct Communication Solutions Inc. and William F. Espley](ea026724201ex10-4_direct.htm) |
| 10.5\*+ | Employment Agreement between Direct Communication Solutions Inc. and Ying Xu |
| 10.6 | [Promissory note, dated July 14, 2025](ea026724201ex10-6_direct.htm) |
| 10.7+ | [Form of Indemnification Agreement between the Registrant and each of its directors and executive officers](ea026724201ex10-7_direct.htm) |
| 10.8 | [Release Agreement, dated September 24, 2025, between Direct Communication Solutions Inc. and Chris Bursey](ea026724201ex10-8_direct.htm) |
| 10.9\* | Form of Lock Up Agreement (included in the Form of Underwriting Agreement) |
| 10.10 | [Supply chain loan agreement, dated July 1, 2025](ea026724201ex10-10_direct.htm) |
| 10.11 | [Credit agreement, dated June 7, 2024](ea026724201ex10-11_direct.htm) |
| 21.1 | [List of Subsidiaries of the Registrant](ea026724201ex21-1_direct.htm) |
| 23.1 | [Consent of Davidson & Company LLP](ea026724201ex23-1_direct.htm) |
| 23.2\* | Consent of Rimon, P.C. (included in Exhibit 5.1) |
| 24.1 | [Power of Attorney (included on signature page)](#poa_001) |
| 99.1 | [Consent of Gunther Schuhmann](ea026724201ex99-1_direct.htm) |
| 99.2 | [Consent of Michael Xing He](ea026724201ex99-2_direct.htm) |
| 107 | [Filing Fee Table](ea026724201ex-fee_direct.htm) |

---

\* To be filed by amendment. <br> + Indicates management contract or compensatory plan

(b) Financial Statement Schedules

All schedules have been omitted because the information required to be set forth in the schedules is either not applicable or is shown in the financial statements or notes thereto.

**Item 17. *Undertakings***

(a) The
undersigned registrant (which we refer to as the "Registrant") hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration
Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the U.S. Securities and Exchange Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth
in the "Calculation of Registration Fee" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To
include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or
any material change to such information in this Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;(2) That,
for the purpose of determining any liability under the Securities Act of 1933, as amended, each such post-effective amendment shall be
deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(3) To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;(4) That,
for the purpose of determining liability under the Securities Act of 1933, as amended, to any purchaser, each prospectus filed pursuant
to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or
other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of
the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement
or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first
use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;(5) That,
for the purpose of determining liability of the Registrant under the Securities Act of 1933, as amended, to any purchaser in the initial
distribution of the securities: The Registrant undertakes that in a primary offering of securities of the Registrant pursuant to this
Registration Statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered
or sold to such purchaser by means of any of the following communications, the Registrant will be a seller to the purchaser and will
be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any
preliminary prospectus or prospectus of the Registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any
free writing prospectus relating to the offering prepared by or on behalf of the Registrant or used or referred to by the Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
portion of any other free writing prospectus relating to the offering containing material information about the Registrant or its securities
provided by or on behalf of the Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any
other communication that is an offer in the offering made by the Registrant to the purchaser.

(b) The undersigned registrant hereby further undertakes to provide
to the underwriters at the closing date specified in the underwriting agreement certificates in such denominations and registered in
such names as required by the underwriters to permit prompt delivery to each purchaser.

(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the U.S. Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act of 1933, as amended, and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication
of such issue.

(d) The Registrant hereby further undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) For
purposes of determining any liability under the Securities Act of 1933, as amended, the information omitted from the form of prospectus
filed as part of this Registration Statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933, as amended, shall be deemed to be part of this Registration
Statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities
Act of 1933, as amended, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Vancouver, BC, Canada on the 28th day of November 2025.

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| By: | /s/ *William F. Espley* |
|  | William F. Espley |
|  | Chief Executive Officer and Director |

---

**POWER OF ATTORNEY**

Each officer and director of Direct Communication Solutions, Inc. whose signature appears below constitutes and appoints William F. Espley his or her true and lawful attorney-in-fact and agent, with full power of substitution and revocation, for him or her and in his or her name, place and stead, in any and all capacities, to execute any or all amendments including any post-effective amendments and supplements to this registration statement, and any additional registration statement filed pursuant to Rule 462 under the Securities Act, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, granting unto each said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said each attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

\*\*\*\*

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **SIGNATURE** | **TITLE** | **DATE** |
| /s/ *William F. Espley* | Chief Executive Officer and Director | November 28, 2025 |
| William F. Espley | (principal executive officer) |  |
| /s/ *Ying Xu* | Chief Financial Officer | November 28, 2025 |
| Ying Xu | (principal financial and accounting officer) |  |
| /s/ *David Scowby* | Chief Operating Officer | November 28, 2025 |
| David Scowby |  |  |
| /s/ *Eric Placzek* | Chief Technology Officer | November 28, 2025 |
| Eric Placzek |  |  |
| /s/ *Mike Yao Zhou* | Director | November 28, 2025 |
| Mike Yao Zhou |  |  |
| /s/ *Shujie Zhong* | Director | November 28, 2025 |
| Shujie Zhong |  |  |

---

## Exhibit 3.1

**Exhibit 3.1**

**AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

**OF**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

Direct Communication Solutions, Inc., a corporation organized and existing under the laws of the State of Delaware (the "Corporation"), hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. That the name of the Corporation is Direct Communication Solutions, Inc. The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on April 3, 2017.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Amended and Restated Certificate of Incorporation was duly adopted in accordance with Sections 242, 245 and 228 (by written consent of the stockholders of the Corporation) of the General Corporation Law of the State of Delaware, and restates, integrates and further amends the provisions of the Corporation's Certificate of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The text of the Certificate of Incorporation of this Corporation is hereby amended and restated in its entirety, effective December 16, 2019, as set forth in Exhibit A attached hereto.

---

| | |
|:---|:---|
| DIRECT COMMUNICATION SOLUTIONS, INC. <br> a *Delaware corporation* | DIRECT COMMUNICATION SOLUTIONS, INC. <br> a *Delaware corporation* |
| By: | /s/ Chris Bursey |
| Name: | Chris Bursey |
| Title: | Chief Executive Officer |

---

**EXHIBIT A**

**ARTICLE 1**

The name of the Corporation is Direct Communication Solutions, Inc. (the "Corporation").

**ARTICLE 2**

The address of the Corporation's registered office in the State of Delaware is 2711 Centerville Road, Suite 400, Wilmington, 19808, County of New Castle. The name of its registered agent at such address is Corporation Service Company.

**ARTICLE 3**

The nature of the business of the Corporation and the objects or purposes to be transacted, promoted or carried on by it are as follows: To engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware.

**ARTICLE 4**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Authorized Shares.</u> The Corporation is authorized to issue Forty Million (40,000,000) shares of its capital stock, which shall consist of 40,000,000 shares of Common Stock, $.00001 par value per share ("Common Stock"). The number of authorized shares of may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of capital stock representing a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon.

**ARTICLE 5**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. In addition to the powers and authority expressly conferred upon them by statute or by this Certificate of Incorporation or the Bylaws of the Corporation, the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend, alter or repeal the Bylaws of the Corporation. The affirmative vote of at least a majority of the Board of Directors then in office shall be required in order for the Board of Directors to adopt, amend, alter or repeal the Corporation's Bylaws. The Corporation's Bylaws may also be adopted, amended, altered or repealed by the stockholders of the Corporation, by the affirmative vote of the holders of capital stock representing a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class. No Bylaw hereafter legally adopted, amended, altered or repealed shall invalidate any prior act of the directors or officers of the Corporation that would have been valid if such Bylaw had not been adopted, amended, altered or repealed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide. 5.4 No stockholder will be permitted to cumulate votes at any election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 The number of directors which shall constitute the Board of Directors shall be fixed exclusively in the manner designated in the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Except as otherwise provided for or fixed by or pursuant to the provisions of Article 4 hereof in relation to the rights of the holders of Preferred Stock to elect directors under specified circumstances, newly created directorships resulting from any increase in the number of directors, created in accordance with the Bylaws of the Corporation, and any vacancies on the Board of Directors resulting from death, resignation, disqualification, removal or other cause shall be filled only by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the Board of Directors, or by a sole remaining director and shall not be filled by the stockholders. A director elected to fill a vacancy or a newly created directorship shall hold office until the next election of the class for which such director shall have been chosen, subject to the election and qualification of a successor and to such director's earlier death, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Any director or the entire board of directors may be removed from office at any time, with or without cause, by the affirmative vote of the holders of capital stock representing a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote in any annual election of directors.

**ARTICLE 6**

Whenever a compromise or arrangement is proposed between the Corporation and its creditors or any class of them and/or between the Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of the Corporation or of any creditor or stockholder thereof, or on the application of any receiver or receivers appointed for the Corporation under the provisions of Section 291 of Delaware General Corporation Law or on the application of trustees in dissolution or of any receiver or receivers appointed for the Corporation under the provisions of Section 279 of Delaware General Corporation Law order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, to be summoned in such manner as the said court directs. If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of the Corporation as a consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of the Corporation, as the case may be, and also on the Corporation.

**ARTICLE 7**

The Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation; <u>provided, however,</u> that notwithstanding any other provision of this Certificate of Incorporation, or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of the Corporation, and, as applicable, such other approvals of the Board of Directors of the Corporation, as are required by law or by this Certificate of Incorporation, the consent of a majority of the members of the Board then in office, and the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of the issued and outstanding shares of capital stock of the Corporation then entitled to vote, voting together as a single class, shall be required to amend, repeal, or adopt any provision or provisions of this Certificate of Incorporation.

**ARTICLE 8**

Advance notice of new business and stockholder nominations for the election of directors shall be given in the manner and to the extent provided in the Bylaws of the Corporation.

**ARTICLE 9**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 The annual meeting of the stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held at such date, time and place, if any, as shall be determined solely by the resolution of the board of directors in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Unless otherwise required by law, special meetings of the stockholders of the Corporation, for any purpose or purposes, may be called only by (i) the Board of Directors of the Corporation, (ii) the Chairman of the Board of Directors of the Corporation, (iii) the Chief Executive Officer (or, in the absence of a Chief Executive Officer, the President) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 No action that is required or permitted to be taken by the stockholders of the Corporation at any annual or special meeting of stockholders may be effected by written consent of stockholders in lieu of a meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws may provide. The books of the Corporation may be kept (subject to any provision contained in the statutes) outside of the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

**ARTICLE 10**

To the fullest extent permitted by Delaware statutory or decisional law, as amended or interpreted, a director of this Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the General Corporation Law of Delaware is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated to the fullest extent permitted by the General Corporation Law of Delaware, as so amended.

The Corporation may indemnify to the fullest extent permitted by law any person made or threatened to be made a party to an action or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he, she, his or her testator or intestate is or was a director, officer, employee or agent at the request of the Corporation or any predecessor to the Corporation or serves or served at any other enterprise as a director, officer, employee or agent at the request of the Corporation or any predecessor to the Corporation.

Neither any amendment to, or modification or repeal of, this Article 10, nor the adoption of any provision of this Certificate of Incorporation inconsistent with this Article 10, shall eliminate or reduce the effect of this Article 10, in respect of any matter occurring, or any action or proceeding accruing or arising or that, but for this Article 10, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

**ARTICLE 11**

Except for (i) actions in which the Court of Chancery in the State of Delaware concludes that an indispensable party is not subject to the jurisdiction of the Delaware courts, and (ii) actions in which a federal court has assumed exclusive jurisdiction of a proceeding, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Corporation, (b) any action asserting a claim for breach of a fiduciary duty owed by any director, officer, employee or agent of the Corporation to the Corporation or the Corporation's stockholders, (c) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, the Corporation's Certificate of Incorporation or Bylaws, or (d) or any action asserting a claim governed by the internal affairs doctrine; unless the Corporation consents in writing to an alternative forum for any such proceedings upon the approval of the Board of Directors of the Corporation.

## Exhibit 3.2

**Exhibit 3.2**

**<u>NOTICE TO READER</u>**

**The attached Certificate of Amendment is not effective until 5:01 pm (EST) on February 9, 2023**

**<u>Delaware</u>**

The First State

***I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT OF "DIRECT COMMUNICATION SOLUTIONS, INC.", FILED IN THIS OFFICE ON THE NINTH DAY OF FEBRUARY, A.D. 2023, AT 11:41 O'CLOCK A.M.***

---

| | | |
|:---|:---|:---|
| 6368837 8100 | ![](ex3-2_002.jpg) | ![](ex3-2_001.jpg)<br> Authentication: 202678665 |
| SR# 20230445232 |  | Date: 02-09-23 |
| You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml |

---

**State of Delaware**<br> **Secretary of State**<br> **Division of Corporations**<br> **Delivered 11:41 AM 02/09/2023**<br> **FILED 11:41 AM 02/09/2023**<br> **SR 20230444304 - File Number 6368837**<br>

**CERTIFICATE OF AMENDMENT**

**OF**

**AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

**OF**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

Direct Communication Solutions, Inc., (the "**Corporation**"), a corporation organized and existing under the General Corporation Law of the State of Delaware, hereby certifies as follows:

<u>First</u>: The name of the Corporation is Direct Communication Solutions, Inc.

<u>Second</u>: This Certificate of Amendment (the "**Certificate of Amendment**") amends the provisions of the Corporation's Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on December 16, 2019.

<u>Third</u>: That Article 4 of the Amended and Restated Certificate of Incorporation of the Corporation (the "**Certificate of Incorporation**"), is hereby amended by deleting Section 4.1 of Article IV in its entirety and inserting the following in lieu thereof:

Section 4.1. *Authorized Shares*. The Corporation is authorized to issue Forty Million (40,000,000) shares of its capital stock, which shall consist of 40,000,000 shares of Common Stock, $0.00001 par value per share ("Common Stock"). Effective upon this Certificate of Amendment to the Amended and Restated Certificate of Incorporation becoming effective pursuant to the General Corporation Law (the "**Effective Time**"), the shares of Common Stock issued and outstanding or held in treasury immediately prior to the Effective Time (the "**pre-Reverse Split Common Stock**") shall be reclassified into a different number of shares of Common Stock (the "**post-Reverse Split Common Stock**") such that each seven (7) shares of pre-Reverse Split Common Stock shall, at the Effective Time, be automatically reclassified into one (1) share of post-Reverse Split Common Stock (such reclassification and combination of shares, the "**Reverse Split**"). The par value of the Common Stock following the Reverse Split shall remain at $0.00001 per share. No fractional shares of Common Stock shall be issued as a result of the Reverse Split and, in lieu thereof, upon receipt after the Effective Time by the exchange agent selected by the Corporation of a properly completed and duly executed transmittal letter and, where shares are held in certificated form, the surrender of the stock certificate(s) formerly representing shares of pre-Reverse Split Common Stock, any stockholder who would otherwise be entitled to a fractional share of post-Reverse Split Common Stock as a result of the Reverse Split, following the Effective Time (after taking into account all fractional shares of post-Reverse Split Common Stock otherwise issuable to such stockholder), shall be entitled to receive a cash payment (without interest) equal to the fractional share of post-Reverse Split Common Stock to which such stockholder would otherwise be entitled to multiplied by the average of the quoted prices of a share of the Corporation's Common Stock (as adjusted to give effect to the Reverse Split) on the OTCQB Venture Market ("OTCQB") under the symbol "DCSX" as applicable, during regular trading hours for the five (5) consecutive trading days immediately preceding the date this Certificate of Amendment to Amended and Restated Certificate of Incorporation is filed with the Secretary of State of the State of Delaware. Each stock certificate that, immediately prior to the Effective Time, represented shares of pre-Reverse Split Common Stock shall, from and after the Effective Time, automatically and without any action on the part of the Corporation or the respective holders thereof, represent that number of whole shares of post-Reverse Split Common Stock into which the shares of pre-Reverse Split Common Stock represented by such certificate shall have been combined (as well as the right to receive cash in lieu of any fractional shares of post-Reverse Split Common Stock as set forth above). Each holder of record of a certificate that represented shares of pre-Reverse Split Common Stock shall be entitled to receive, upon surrender of such certificate, a new certificate representing the number of whole shares of post-Reverse Split Common Stock into which the shares of pre-Reverse Split Common Stock represented by such certificate shall have been combined pursuant to the Reverse Split, as well as any cash in lieu of fractional shares of post-Reverse Split Common Stock to which such holder may be entitled as set forth above, provided that the Corporation may request such stockholder to exchange such stockholder's certificate or certificates that represented shares of pre-Reverse Split Common Stock for shares held in book-entry form through the Depository Trust Company's Direct Registration System representing the appropriate number of whole shares of post-Reverse Split Common Stock into which the shares of pre-Reverse Split Common Stock represented by such certificate or certificates shall have been combined. The Reverse Split shall be effected on a record holder-by-record holder basis, such that any fractional shares of post-Reverse Split Common Stock resulting from the Reverse Split and held by a single record holder shall be aggregated.

<u>Fourth</u>: The foregoing amendment was duly adopted in accordance with the provisions of Section 228 and Section 242 of the General Corporation Law of the State of Delaware.

<u>Fifth</u>: That this Certificate of Amendment to the Amended and Restated Certificate of Incorporation shall be effective as of 5:01 pm on the date of filing.

\* \* \* \* \* \* \* \*

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be signed by its Chief Executive Officer this 2nd day of February, 2023.

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| By: | /s/ Chris Bursey |
| Name: | Chris Bursey |
| Title: | Chief Financial Officer |

---

## Exhibit 3.3

**Exhibit 3.3**

**Proposed Amendment of Articles of Incorporation**

**CERTIFICATE OF AMENDMENT**

**OF**

**AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

**OF**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

Direct Communication Solutions, Inc., (the "**Corporation**"), a corporation organized and existing under the General Corporation Law of the State of Delaware, hereby certifies as follows:

**<u>First:</u>** The name of the Corporation is Direct Communication Solutions, Inc.

**<u>Second:</u>** This Certificate of Amendment (the "**Certificate of Amendment**") amends the provisions of the Corporation's Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on December 16, 2019 (the "**First Amended Articles**"), and the further Amended and Restated Certificate of Incorporation filed on February 9, 2023 (the "**Second Amended Articles**").

**<u>Third:</u>** That Article 4 of the First Amended Articles and Article 3 of Second Amended Articles (the "**Certificate of Incorporation**"), is hereby amended by deleting Article 4 of the First Amended Articles in its entirety and Article 3 of the Second Amended Articles in its entirety and inserting the following in lieu thereof:

**ARTICLE 4**

4.1 Class A Shares

1. <u>Authorized Shares.</u> The Corporation is authorized to issue Five Hundred Million (500,000,000) shares of its capital stock, which shall consist of 500,000,000 Class A shares, $.00001 par value per share (the "**Class A Shares**" and each, a "**Class A Share**"). The number of authorized shares of the Corporation may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the stockholders of capital stock representing a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, having attached thereto the special rights and restrictions as set forth below:

*(a)* *Voting Rights.* 

 

(i) Stockholders of Class A Shares shall be entitled to notice of and to attend at any meeting of the stockholders of the Corporation, except a meeting of which only stockholders of another particular class or series of shares of the Corporation shall have the right to vote. At each such meeting, stockholders of Class A Shares shall be entitled to one vote in respect of each Class A Share held.

(ii) Except as otherwise provided in this Certificate of Incorporation or except as provided in the *Delaware General Corporation Law*, Class A Share and Class B Shares are equal in all respects and shall vote together as if they were shares of a single class. In connection with any Change of Control Transaction as defined in Section 4.1(a)(iii) requiring approval of the stockholders of Class A Share and Class B Shares under the *Delaware General Corporation Law*, stockholders of Class A Share and Class B Shares shall be treated equally and identically, on a per share basis, unless different treatment of the shares of each such class is approved by a majority of the votes cast by the stockholders of outstanding Class A Share or their proxyholders in respect of a resolution approving such Change of Control Transaction, voting separately as a class at a meeting of the stockholders of that class called and held for such purpose.

(iii) For the purpose of this Certificate of Incorporation, a "**Change of Control Transaction**" means an amalgamation, arrangement, recapitalization, business combination or similar transaction of the Corporation, other than an amalgamation, arrangement, recapitalization, business combination or similar transaction that would result in (i) the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the continuing entity or its direct or indirect parent) more than fifty percent (50%) of the total voting power of the voting securities of the Corporation, the continuing entity or its direct or indirect parent, and more than fifty percent (50%) of the total number of outstanding shares of the Corporation, the continuing entity or its direct or indirect parent, in each case as outstanding immediately after such transaction, and (ii) the stockholders of the Corporation immediately prior to the transaction owning voting securities of the Corporation, the continuing entity or its direct or indirect parent immediately following the transaction in substantially the same proportions (vis-a- vis each other) as such stockholders owned the voting securities of the Corporation immediately prior to the transaction (provided that in neither event shall the exercise of any exchangeable shares of a subsidiary of the Corporation that are exchangeable into shares of the Corporation be taken into account in such determination).

(iv) Notwithstanding the provisions of the second paragraph of this Section 4.1(1)(a), the stockholders of Class A Shares shall be entitled to vote as a separate class, in addition to any other vote of shareholders that may be required, in respect of any alteration, repeal or amendment of this Certificate of Incorporation which would: (i) adversely affect the rights or special rights of the stockholders of Class A Shares, (including an amendment to the terms of this Certificate of Incorporation which provide that any Class B Shares sold or transferred to a Person that is not a Permitted Holder shall be automatically converted into Class A Shares); or (ii) affect the stockholders of Class A Shares and Class B Shares differently, on a per share basis; or (iii) create any class or series of shares ranking equal to or senior to the Class A Shares; and in each case such alteration, repeal or amendment shall not be effective unless a resolution in respect thereof is approved by a majority of the votes cast by stockholders of outstanding Class A Shares.

*(b)* *Alteration to Rights of Class A Shares.* 

 

As long as any Class A Shares remain outstanding, the Corporation will not, without the consent of the stockholders of the Class A Shares by separate special resolution alter or amend this Certificate of Incorporation if the result would (i) prejudice or interfere with any right or special right attached to the Class A Shares, or (ii) affect the rights or special rights of stockholders of Class A Shares or Class B Shares on a per share basis as provided herein.

*(c)* *Dividends.* 

 

Stockholders of Class A Shares shall be entitled to receive, as and when declared by the directors, dividends in cash or property of the Corporation. No dividend will be declared or paid on the Class B Shares unless the Corporation simultaneously declares or pays, as applicable, equivalent dividends (on a per share basis) on the Class A Shares. In the event of the payment of a dividend in the form of shares, stockholders of Class A Shares shall receive Class A Shares, unless otherwise determined by the Board of Directors of the Corporation.

*(d)* *Liquidation, Dissolution or Winding-Up.* 

 

In the event of the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or in the event of any other distribution of assets of the Corporation among its stockholders for the purpose of winding up its affairs, the stockholders of Class A Shares shall, subject to the prior rights of the stockholders of any shares of the Corporation ranking in priority to the Class A Shares, be entitled to participate ratably in the remaining property of the Corporation along with all stockholders of Class B Shares and other stockholders of Class A Shares (on a per share basis).

*(e)* *Rights to Subscribe; Pre-Emptive Rights.* 

 

The stockholders of Class A Shares are not entitled to a right of first refusal to subscribe for, purchase or receive any part of any issue of shares, or bonds, debentures or other securities of the Corporation now or in the future.

*(g)* *Conversion of Class A Shares Upon an Offer.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For the purposes of this Section 4.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "**Affiliate**" has the meaning assigned by the Securities and Exchange Act of 1934 as, from time to time, amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "**Associate**" has the meaning assigned by the Securities Act of 1933 as, from time to time, amended, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) "**Conversion Period**" means the period of time commencing on the eighth day after the Offer Date and terminating on the Expiry Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) "**Converted Shares**" means Class B Shares resulting from the conversion of Class A Shares into Class B Shares pursuant to subparagraph (ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "**Exclusionary Offer**" means an offer to purchase Class B Shares that: (i) is a General Offer; and (ii) is not made concurrently with an offer to purchase Class A Shares that is identical to the offer to purchase Class B Shares in terms of price per share and percentage of outstanding shares to be taken up exclusive of shares owned immediately prior to the offer by the Offeror, and in all other material respects, and that has no condition attached other than the right not to take up and pay for shares tendered if no shares are purchased pursuant to the offer for Class B Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) "**Expiry Date**" means the last date on which stockholders of Class B Shares may accept an Exclusionary Offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) "**General Offer**" means an offer to purchase Class B Shares that must, by reason of applicable securities legislation or the requirements of any stock exchange on which the Class B Shares are listed, be made to all or substantially all stockholders of Class B Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) "**Offer Date**" means the date on which an Exclusionary Offer is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) "**Offeror**" means a Person that makes an offer to purchase Class B Shares (the "**bidder**"), and includes any Associate or Affiliate of the bidder or any Person that is disclosed in the offering document to be acting jointly or in concert with the bidder,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) "**Person**" has the meaning assigned by the Securities Act of 1933 as, from time to time, amended, re-enacted or replaced and includes a Corporation or other body corporate wherever or however incorporated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) "**Transfer Agent**" means the transfer agent at the relevant time for the Class A Shares and Class B Shares (and if there is no such transfer agent, "**Transfer Agent**" means the Corporation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to subparagraph (v) hereof, if an Exclusionary Offer is made, each outstanding Class A Share shall be convertible into one (1) Class B Share at the option of each holder of Class A Shares during the Conversion Period. The conversion right may be exercised by notice in writing given to the Transfer Agent prior to the Expiry Date accompanied by the share certificate or certificates representing the Class A Shares which the holder desires to convert, together with any letter of transmittal or other documentation required by the Transfer Agent or pursuant to the Exclusionary Offer, in either case in duly executed or completed form, and such notice shall be executed by such holder, or by his attorney duly authorized in writing, and shall specify the number of Class A Shares which the holder desires to have converted. The Corporation shall pay any governmental stamp, transfer or similar tax (but for greater certainty, no income or capital gains tax) imposed on or in respect of such conversion. If less than all of the Class A Share represented by any share certificate are to be converted, the holder shall be entitled to receive a new share certificate representing in the aggregate the number of Class A Shares represented by the original share certificate which are not to be converted. Upon any conversion of any shares of any class into shares of another class, the Corporation shall adjust the capital accounts maintained for the respective classes of shares as provided in the *Delaware General Corporation Law*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an election by a holder of Class A Shares to exercise the conversion right provided for in subparagraph (ii) shall be deemed to also constitute irrevocable elections by such holder (a) to deposit the Converted Shares pursuant to the Exclusionary Offer (subject to such holder's right to subsequently withdraw the shares from the offer), and (b) to exercise the right to convert back into Class A Shares all Converted Shares (on a 1:1 basis) in respect of which such holder exercises his right of withdrawal from the Exclusionary Offer or which are not otherwise ultimately taken up under the Exclusionary Offer. Any conversion of Converted Shares back into Class A Shares in respect of which the holder exercises his right of withdrawal from the Exclusionary Offer shall become effective at the time such right of withdrawal is exercised. If the right of withdrawal is not exercised, any conversion of Converted Shares back into Class A Shares pursuant to a deemed election shall become effective:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for Converted Shares not taken up in accordance with the terms of an Exclusionary Offer which is nonetheless completed, on the day that the Offeror has taken up and paid for all shares to be acquired by the Offeror under the Exclusionary Offer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in respect of an Exclusionary Offer which is abandoned or withdrawn, at the time at which the Exclusionary Offer is abandoned or withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no share certificates representing Converted Shares shall be delivered to the stockholders of such shares before such shares are deposited pursuant to the Exclusionary Offer. The Transfer Agent, onꞏ behalf of the stockholders of the Converted Shares, shall deposit pursuant to the Exclusionary Offer the certificates representing all Class A Shares for which the certificates, notices and other documents have been duly delivered to the Transfer Agent pursuant to subparagraph (ii) and shall advise the Offeror of the extent that such certificates so deposited represent Class B Shares of the Corporation. Upon completion of the Exclusionary Offer, the Transfer Agent shall deliver to the stockholders of the shares purchased pursuant to the Exclusionary Offer all consideration paid by the Offeror pursuant to the Exclusionary Offer. If Converted Shares are converted back into Class A Shares pursuant to subparagraph (iii), the Transfer Agent shall deliver to the stockholders entitled thereto share certificates representing the Class A Shares resulting from the conversion. Provided however that if no Class A Shares of a shareholder were acquired by the Offeror pursuant to the Exclusionary Offer, the Transfer Agent shall return the original share certificate (if not duly endorsed for transfer to a named transferee) evidencing such Class A Shares tendered pursuant to subparagraph (ii) in satisfaction of its obligations under this subparagraph (iv). The Corporation shall make all arrangements with the Transfer Agent necessary or desirable to give effect to this subparagraph (iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) as soon as reasonably possible after the seventh day after the Offer Date, the Corporation shall send to each holder of Class A Shares a written notice advising the stockholders as to whether they are entitled to convert their Class A Shares into Class B Shares and the reasons therefor. If such notice discloses that they are not so entitled, but it is subsequently determined that they are so entitled by virtue of subparagraph (vi) or otherwise, the Corporation shall forthwith send another notice to them advising them of that fact and the reasons therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if a notice referred to in subparagraph (v) discloses that the conversion right set forth in Section 4.1(1)(g)(ii) has come into effect, the notice shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) include a description of the procedure to be followed to effect the conversion and to have the Converted Shares tendered under the Exclusionary Offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) include the information set out in subparagraph (iii) hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) be accompanied by a copy of the Exclusionary Offer and all other materials sent to any stockholders of Class B Shares in respect of such offer; and as soon as reasonably possible after any additional material, including any notice of variation, is sent to any stockholders of Class B Shares in respect of such offer, the Corporation shall send a copy of such additional materials to each holder of Class A Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) prior to or forthwith after sending any notice referred to in subparagraph (v), the Corporation shall cause a news release to be issued to a Canadian national news service, describing the contents of the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) references to share certificates shall include, as applicable, the equivalent in any non-certificated inventory system (such as, for example, a Direct Registration System), with appropriate changes.

*(f)* *Stock Split or Reverse Stock Split* 

 

No stock split or reverse stock split of the Class A Shares shall occur unless, simultaneously, the Class B Shares also undergo a stock split or reverse stock split or otherwise adjusted so as to maintain and preserve the relative rights of the stockholders of the shares of each of the said classes. Subject to Section 4.1(1)(g), the Class A Shares cannot be converted into any other class of shares.

**Section 4.2 Class B Shares**

(1) <u>Authorized Shares.</u> The Corporation is authorized to issue Five Hundred Million (500,000,000) Class B shares of its capital stock, $.00001 par value per share (the "**Class B Shares**" and each, a "**Class B Share**"). The number of authorized shares of may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the stockholders of capital stock representing a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, having attached thereto the special rights and restrictions as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Voting Rights.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to subsections 4.2(b) below, stockholders of Class B Shares shall be entitled to notice of and to attend at any meeting of the stockholders of the Corporation, except a meeting of which only stockholders of another particular class or series of shares of the Corporation shall have the right to vote. At each such meeting, stockholders of Class B Shares will be entitled to 20 votes in respect of each Class B Share held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as otherwise provided in this Certificate of Incorporation or except as provided in the *Delaware General Corporation Law*, Class A Shares and Class B Shares are equal in all respects and shall vote together as if they were shares of a single class. In connection with any Change of Control Transaction requiring approval of the stockholders of Class A Shares and Class B Shares under the *Delaware General Corporation Law*, stockholders of Class A Share and Class B Shares shall be treated equally and identically, on a per share basis, unless different treatment of the shares of each such class is approved by a majority of the votes cast by the stockholders of outstanding Class B Shares or their proxyholders in respect of a resolution approving such Change of Control Transaction, voting separately as a class at a meeting of the stockholders of that class called and held for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Commencement of Voting Rights of Class B Shares* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary contained in this amended Articles of Incorporation, the voting rights attached to the Class B Shares, as set forth in this Section 4.2(a) (the "**Voting Rights**"), shall not be enforceable, operative, or effective unless and until the occurrence of both of the following events (the "**Sunrise Conditions**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. the Corporation successfully raises financing in the aggregate amount of not less than US$10,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the shares of common stock of the Corporation are approved for listing on the NYSE American LLC or NASDAQ and commence trading on such exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon satisfaction of the Sunrise Conditions, the Voting Rights shall automatically and without further action of the Corporation or its stockholders become fully effective with respect to all issued and outstanding Class B Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Until the Sunrise Conditions are satisfied, the Class B Shares will rank pari passu with the Class A Shares in all respects, including Voting Rights so that each Class B Share will carry only one (1) vote per share on all matters upon which holders of shares are entitled to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Alteration to Rights of Class B Shares.* 

 

As long as any Class B Shares remain outstanding, the Corporation will not, without the consent of the stockholders of the Class B Shares by separate special resolution alter or amend this Certificate of Incorporation if the result would: (i) prejudice or interfere with any right or special right attached to the Class B Shares; or (ii) affect the rights or special rights of the stockholders of Class A Shares or Class B Shares on a per share basis as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Dividends.* 

 

Stockholders of Class B Shares shall be entitled to receive, as and when declared by the directors, dividends in cash or property of the Corporation. No dividend will be declared or paid on the Class A Shares unless the Corporation simultaneously declares or pays, as applicable, equivalent dividends (on a per share basis) on the Class B Shares. In the event of the payment of a dividend in the form of shares, stockholders of Class B Shares shall receive Class B Shares, unless otherwise determined by the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(e)* *Liquidation, Dissolution or Winding-Up.* 

 

In the event of the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or in the event of any other distribution of assets of the Corporation among its stockholders for the purpose of winding up its affairs, the stockholders of Class B Shares will, subject to the prior rights of the stockholders of any shares of the Corporation ranking in priority to the Class B Shares, be entitled to participate ratably along with all other stockholders of Class B Shares and Class A Share (on a per share basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(f)* *Rights to Subscribe; Pre-Emptive Rights.* 

 

The stockholders of Class B Shares are not entitled to a right of first refusal to subscribe for, purchase or receive any part of any issue of shares, or bonds, debentures or other securities of the Corporation now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(g)* *Conversion.* 

Stockholders of Class B Shares shall have conversion rights as follows (the "**Conversion Rights**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Right to Convert.

Each Class B Share shall be convertible, at the option of the holder thereof, at any time after the date of issuance of such share at the office of the Corporation or any transfer agent for such shares, into one fully paid and non-assessable Class A Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Automatic Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon the first date that any Class B Share shall be held by a Person other than by a Permitted Holder by way of transfer, acquisition, purchase and sale agreement or otherwise, the Permitted Holder which held such Class B Share until such date, without any further action, shall automatically be deemed to have exercised his, her or its rights under subsection (f)(i) to convert such Class B Share into one fully paid and non- assessable Class A Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) A Class B Share that is converted into Class A Shares as provided for in subsections 4.1(f)(ii)(A) will automatically be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) For the purposes hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) **"Permitted Holders**" means Mike Yao Zhou, any corporation that is directly controlled by Mike Yao Zhou and any corporation directly controlled by a corporation directly controlled by Mike Yao Zhou and organized under the laws of the British Virgin Islands; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) **"Person"** has the meaning assigned by the U.S. Securities Act of 1933 as, from time to time, amended, re-enacted or replaced and includes a Corporation or other body corporate wherever or however incorporated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mechanics of Conversion.

Before any holder of Class B Shares shall be entitled to convert Class B Shares into Class A Shares, the holder thereof shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Corporation or of any transfer agent for Class A Shares or the equivalent in any non-certificated inventory system (such as, for example, a Direct Registration System) administered by any applicable depository or transfer agent of the Corporation, and shall give written notice to the Corporation at its head office, of the election to convert the same (each, a "**Conversion Notice**") and the Class A Shares resulting therefrom shall be registered in the name of the registered holder of the Class B Shares converted or, subject to payment by the registered holder of any stock transfer or applicable taxes and compliance with any other reasonable requirements of the Corporation in respect of such transfer, in such name or names as such registered holder may direct in writing. Upon receipt of such notice and certificate or certificates and, as applicable, compliance with such other requirements, the Corporation shall (or shall cause its transfer agent to), at its expense, as soon as practicable thereafter, remove or cause the removal of such holder from the register of stockholders in respect of the Class B Shares for which the conversion right is being exercised, add the holder (or any person or persons in whose name or names such converting holder shall have directed the resulting Class A Shares to be registered) to the securities register of stockholders in respect of the resulting Class A Shares, cancel or cause the cancellation of the certificate or certificates representing such Class B Shares and issue and deliver at such office to such holder, or to the nominee or nominees of such holder, a certificate or certificates or the equivalent in any non-certificated inventory system (such as, for example, a Direct Registration System) administered by any applicable depository or transfer agent of the Corporation, representing the Class A Shares issued upon the conversion of such Class B Shares. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of the Class B Shares to be converted, and the person or persons entitled to receive the Class A Shares issuable upon such conversion shall be treated for all purposes as the record holder or stockholders of such Class A Shares as of such date. If less than all of the Class B Shares represented by any certificate are to be converted, the holder shall be entitled to receive a new certificate representing the Class B Shares represented by the original certificate which are not to be converted. A Class B Share that is converted into Class A Shares as provided for in this subsection 4.2 (f)(iii) will automatically be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Effect of Conversion.

All Class B Shares which shall have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the time of conversion (the "Conversion Time"), except only the right of the stockholders thereof to receive Class A Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(h)* *Stock Split and Reverse Stock Split.* 

 

No stock split and reverse stock split of the Class B Shares shall occur unless, simultaneously, the Class A Shares are split or reverse split or otherwise adjusted so as to maintain and preserve the relative rights of the stockholders of the shares of each of the said classes. Subject to Section (f), the Class B Shares cannot be converted into any other class of shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(h)* *Transfer of Class B Shares.* 

 

Except in accordance with the terms of any coattail agreement dated the same date as the Class B Shares are first issued or as expressly provided herein, including upon conversion into Class A Shares, no Class B Share may be sold, transferred, assigned, pledged or otherwise disposed of without the written consent of the directors, and the directors are not required to give any reason for refusing to consent to any such sale, transfer or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Share Superior to Class B Shares* 

 

The Corporation may take no action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Class B Shares without the consent of the stockholders of a majority of the outstanding Class B Shares expressed by special separate resolution. At any meeting of stockholders of Class B Shares called to consider such a special separate resolution, each Class B Share will entitle the holder to one (1) vote and each fraction of a Class B Share shall entitle the holder to the corresponding fraction of one (1) vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(k)* Notwithstanding anything to the contrary contained herein,
all transfers of Class B Shares are subject to the terms of any coattail agreement entered into in respect thereof and to the other provisions
of Article 4.

**<u>Fourth:</u>** The foregoing amendment was duly adopted in accordance with the provisions of Section 228 and Section 242 of the General Corporation Law of the State of Delaware.

**<u>Fifth:</u>** That this Certificate of Amendment to the Amended and Restate Certificate of Incorporation shall be effective as of 5:01 pm on the date of filing.

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be signed by its Chief Executive Officer this<u> </u>, day of<u> </u>, 2025.

## Exhibit 3.4

**Exhibit 3.4**

**AMENDED AND RESTATED BYLAWS**

**OF**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**a Delaware Corporation**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE 1** | **OFFICES** | 1 |
| Section 1.1 | Registered Office | 1 |
| Section 1.2 | Other Offices | 1 |
| **ARTICLE 2** | **STOCKHOLDERS' MEETINGS** | 1 |
| Section 2.1 | Place of Meetings | 1 |
| Section 2.2 | Annual Meetings | 2 |
| Section 2.3 | Special Meetings | 2 |
| Section 2.4 | Not ice of Meetings | 2 |
| Section 2.5 | Notice by Electronic Transmission | 3 |
| Section 2.6 | Quorum and Voting; Adjourned Meeting Notice | 4 |
| Section 2.7 | Administration of the Meeting | 5 |
| Section 2.8 | Voting Rights | 5 |
| Section 2.9 | Voting Procedures and Inspectors of Elections | 6 |
| Section 2.10 | List of Stockholders | 7 |
| Section 2.11 | Advance Notice of Stockholder Nominations and Proposals | 7 |
| Section 2.12 | No Stockholder Action by Written Consent Without a Meeting | 12 |
| Section 2.13 | Record Date for Stockholder Notice | 12 |
| **ARTICLE 3** | **DIRECTORS** | 13 |
| Section 3.1 | Number and Term of Office | 13 |
| Section 3.2 | Powers | 13 |
| Section 3.3 | Vacancies | 13 |
| Section 3.4 | Resignations and Removals | 14 |
| Section 3.5 | Meetings | 14 |
| Section 3.6 | Quorum and Voting | 15 |
| Section 3.7 | Action Without Meeting | 15 |
| Section 3.8 | Fees and Compensation | 15 |
| Section 3.9 | Committees | 16 |
| **ARTICLE 4** | **OFFICERS** | 17 |
| Section 4.1 | Officers Designated | 17 |
| Section 4.2 | Tenure and Duties of Officers | 18 |

---

i

---

| | | |
|:---|:---|:---|
| **ARTICLE 5** | **GENERAL MATTERS** | 20.0 |
| Section 5.1 | Checks, Drafts, Evidences of indebtedness | 20.0 |
| Section 5.2 | Execution of Corporate Contracts and Instruments | 21.0 |
| Section 5.3 | Voting of Securities Owned by Corporation | 21.0 |
| Section 5.4 | Form and Execution of Certificates | 21.0 |
| Section 5.5 | Special Designation on Certificates | 21.0 |
| Section 5.6 | Lost Certificates | 22.0 |
| Section 5.7 | Dividends | 22.0 |
| Section 5.8 | Construction; Definitions | 22.0 |
| Section 5.9 | Fiscal Year | 22.0 |
| Section 5.10 | Seal | 22.0 |
| Section 5.11 | Transfer of Stock | 23.0 |
| Section 5.12 | Stock Transfer Agreements | 23.0 |
| Section 5.13 | Registered Stockholders | 23.0 |
| Section 5.14 | Waiver of Notice | 23.0 |
| **ARTICLE 6** | **INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS** | 24.0 |
| Section 6.1 | Right to Indemnification | 24.0 |
| Section 6.2 | Authority to Advance Expenses | 24.0 |
| Section 6.3 | Right of Claimant to Bring Suit | 25.0 |
| Section 6.4 | Provisions Nonexclusive | 25.0 |
| Section 6.5 | Authority to Insure | 25.0 |
| Section 6.6 | Enforcement of Rights | 25.0 |
| Section 6.7 | Survival of Rights | 26.0 |
| Section 6.8 | Settlement of Claims | 26.0 |
| Section 6.9 | Effect of Amendment | 26.0 |
| Section 6.10 | Primacy of Indemnification | 26.0 |
| Section 6.11 | Subrogation | 26.0 |
| Section 6.12 | No Duplication of Payments | 26.0 |
| Section 6.13 | Saving Clause | 27.0 |
| **ARTICLE 7** | **NOTICES** | 27.0 |
| **ARTICLE 8** | **AMENDMENTS** | 28.0 |
| **ARTICLE 9** | **ANNUAL AND OTHER REPORTS** | 28.0 |
| Section 9.1 | Reports to Stockholders | 28.0 |
| Section 9.2 | Reports to the Secretary of State | 29.0 |
| Section 9.3 | Effectiveness of Article 9 | 30.0 |

---

ii

**AMENDED AND RESTATED BYLAWS**

**OF**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**ARTICLE 1**

**OFFICES**

**Section 1.1 Registered Office.**

The registered office of the Corporation in the State of Delaware shall be set forth in the Certificate of Incorporation of the Corporation.

**Section 1.2 Other Offices.**

The Corporation may also have offices at such other places, either within or without the State of Delaware, as the Board of Directors may from time to time determine or the business of the Corporation may require.

**ARTICLE 2**

**STOCKHOLDERS' MEETINGS**

**Section 2.1 Place of Meetings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of stockholders may be held at such place, either within or without the State of Delaware, as shall be determined solely by the resolution of the Board of Directors in its sole and absolute discretion. The Board of Directors may, in its sole discretion, determine that the meeting shall not be held at any place, but may instead be held solely by means of remote communication as authorized by paragraph (b) of this Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If authorized by the Board of Directors in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, stockholders and proxyholders not physically present at a meeting of stockholders may, by means of remote communication :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Participate in a meeting of stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication, provided that (A) the Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxyholder, (B) the Corporation shall implement reasonable measures to provide such stockholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with such proceedings, and (C) if any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication , a record of such vote or other action shall be maintained by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of these Bylaws, "remote communication" shall include (I) telephone or other voice communications and (2) electronic mail or other form of written or visual electronic communications satisfying the requirements of Section 2.11(b).

**Section 2.2 Annual Meetings.**

The annual meetings of the stockholders of the Corporation, for the purpose of election of directors and for such other business as may lawfully come before it, shall be held on such date and at such time and place as shall be determined solely by the resolution of the Board of Directors in its sole and absolute discretion.

**Section 2.3 Special Meetings.**

Unless otherwise required by law, special meetings of the stockholders of the Corporation, for any purpose or purposes, may be called only by (i) the Board of Directors of the Corporation, (ii) the Chairman of the Board of Directors of the Corporation, (iii) the Chief Executive Officer (or, in the absence of a Chief Executive Officer, the President) of the Corporation. Only such business shall be brought before a special meeting of stockholders as shall have been specified in the notice of such meeting.

**Section 2.4 Notice of Meetings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided by law or the Certificate of lncorporation, written notice of each meeting of stockholders, specifying the place, if any, date and hour and purpose or purposes of the meeting, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting, and the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote thereat, directed to his address as it appears upon the books of the Corporation ; except that where the matter to be acted on is a merger or consolidation of the Corporation or a sale, lease or exchange of all or substantially all of its assets, such notice shall be given not less than 20 nor more than 60 days prior to such meeting. If the Board of Directors fixes a date for determining the stockholders entitled to notice of a meeting of stockholders, such date shall also be the record date for determining the stockholders entitled to vote at such meeting, unless the Board of Directors determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any meeting action is proposed to be taken which, if taken, would entitle stockholders fulfilling the requirements of Section 262(d) of the Delaware General Corporation Law to an appraisal of the fair value of their shares, the notice of such meeting shall contain a statement to that effect and shall be accompanied by a copy of that statutory section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such adjourned meeting, are announced at the meeting at which the adjournment is taken unless the adjournment is for more than thirty days, or unless after the adjournment a new record date is fixed for the adjourned meeting, in which event a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting; provided, however, that the Board of Directors may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders

entitled to vote at the adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of the time, place and purpose of any meeting of stockholders may be waived in writing, either before or after such meeting, and, to the extent permitted by law, will be waived by any stockholder by his attendance thereat, in person or by proxy.

**Section 2.5 Notice by Electronic Transmission.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice by Electronic Transmission.** Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision of Delaware General Corporation Law, the Certificate of Incorporation, or these Bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice to the Corporation. Any such consent shall be deemed revoked if (i) the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent, and (ii) such inability becomes known to the Secretary or an Assistant Secretary of the Corporation or to the transfer agent or other person responsible for the giving of notice; provided, however, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action. Notice given pursuant to this subparagraph (e) shall be deemed given: (1) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice; (2) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (3) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; and (4) if by any other form of electronic transmission, when directed to the stockholder.

An affidavit of the Secretary or an Assistant Secretary or of the transfer agent or other agent of the Corporation that the notice has been given by a form of electronic transmission shall, in the absence of fraud , be prima facie evidence of the facts stated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Definition of Electronic Transmission.** For purposes of these Bylaws, "electronic transmission" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Inapplicability.** Notice by a form of electronic transmission shall not apply to Section 164 (failure to pay for stock; remedies), Section 296 (adjudication of claims; appeal), Section 311 (revocation of voluntary dissolution), Section 312 (renewal , revival extension and restoration of certificate of incorporation) or Section 324 (attachment of shares of stock) of the Delaware General Corporation Law.

**Section 2.6 Quorum and Voting; Adjourned Meeting Notice.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all meetings of stockholders except where otherwise provided by law, the Certificate of lncorporation or these Bylaws, a majority in voting power of the shares of the Corporation entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business. In the absence of a quorum, any meeting of stockholders may be adjourned, from time to time by the affirmative vote of a majority in voting power thereof until a quorum shall be present or represented. A quorum , once established, shall not be broken by the subsequent withdrawal of enough votes to leave le s than a quorum. At any such adjourned meeting at which a quorum is present or represented, any business may be transacted which might have been transacted at the original meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When a meeting is adjourned to another time or place, unless otherwise provided by these Bylaws, notice need not be given of the adjourned meeting if the time, place if any thereof and the means of remote communications if any by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment i taken. At the continuation of the adjourned meeting, the corporation may transact any business that might have been transacted at the original meeting. If the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting in accordance with the provisions of section 2.4 of these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In all matters, other than the election of directors and except as otherwise provided by law, the Certificate of lncorporation or these Bylaws, the affirmative vote of a majority of the shares present in per on or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders. Directors shall be elected by a plurality of the votes of the hares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. For purposes of these Bylaws, a share persent at a meeting, but for which there is an abstention or as to which a stockholder gives no authority or direction as to a particular proposal or director nominee, shall be counted as present for the purpose of establishing a quorum but shall not be counted as a vote cast.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Where a separate vote by a class or classes is required , a majority of the outstanding shares of such class or classes present in person or represented by proxy shall constitute a quorum entitled to take action with respect to that vote on that matter, and in all matters other than the election of directors, the affirmative vote of the majority of votes cast of such class or classes present in person or represented by proxy at the meeting shall be the act of such class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The stockholders of the Corporation hall not have the right to cumulate their votes for the election of directors of the Corporation.

**Section 2.7 Administration of the Meeting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of stockholders shall be presided over by the Chairman of the Board or, in the absence thereof, by such person as the Chairman of the Board shall appoint, or, in the absence thereof or in the event that the Chairman shall fail to make such appointment, any officer of the corporation elected by the Board . In the absence of the Secretary of the Corporation, the secretary of the meeting shall be such person as the chairman of the meeting appoints.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board shall be entitled to make such rules or regulations for the conduct of meetings of stockholders as it shall deem necessary, appropriate or convenient. Subject to such rules and regulations, if any, the chairman of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all acts as, in the judgment of such chairman, are necessary, appropriate or convenient for the proper conduct of the meeting, including without limitation establishing an agenda of business of the meeting, rules or regulations to maintain order, restrictions on entry to the meeting after the time fixed for commencement thereof and the fixing of the date and time of the opening and closing of the polls for each matter upon which the stockholders will vote at a meeting (and shall announce such at the meeting).

**Section 2.8 Voting Rights.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided by law, only persons in whose names shares entitled to vote stand on the stock records of the Corporation on the record date for determining the stockholders entitled to vote at said meeting shall be entitled to vote at such meeting. Shares standing in the names of two or more persons shall be voted or represented in accordance with the determination of the majority of such persons, or, if only one of such persons is present in person or represented by proxy, such person shall have the right to vote such shares and such shares shall be deemed to be represented for the purpose of determining a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Every person entitled to vote shall have the right to do so either in person or by an agent or agents authorized by a written proxy executed by such person or his duly authorized agent, which proxy shall be filed with the Secretary of the Corporation at or before the meeting at which it is to be used. Said proxy so appointed need not be a stockholder. No proxy shall be voted on after three (3) years from its date unless the proxy provides for a longer period. Unless and until voted, every proxy shall be revocable at the pleasure of the person who executed it or of his legal representatives or assigns, except in those cases where an irrevocable proxy permitted by statute has been given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the manner in which a stockholder may authorize another person or persons to act for him as proxy pursuant to subsection (b) of this section, the following shall constitute a valid means by which a stockholder may grant such authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A stockholder may execute a writing authorizing another person or persons to act for him as proxy. Execution may be accomplished by the stockholder or his authorized officer, director, employee or agent signing such writing or causing his or her signature to be affixed to such writing by any reasonable means including, but not limited to, by facsimile signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A stockholder may authorize another person or persons to act for him as proxy by transmitting or authorizing the transmission of an electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm , proxy support service organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such transmission must either set forth or be submitted with information from which it can be determined that the transmission was authorized by the stockholder. Such authorization can be established by the signature of the stockholder on the proxy, either in writing or by a signature stamp or facsimile signature, or by a number or symbol from which the identity of the stockholder can be determined , or by any other procedure deemed appropriate by the inspectors or other persons making the determination as to due authorization. If it is determined that such transmissions are valid , the inspectors or, if there are no inspector , such other persons making that determination shall specify the information upon which they relied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission created pursuant to subsection (c) of this section may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used , provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.

**Section 2.9 Voting Procedures and Inspectors of Elections.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall, in advance of any meeting of stockholders, appoint one or more inspectors to act at the meeting and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of stockholders, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his ability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The inspectors shall (i) ascertain the number of shares outstanding and the voting power of each, (ii) determine the shares represented at a meeting and the validity of proxies and ballots, (iii) count all votes and ballots, (iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors, and (v) certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors may appoint or retain other persons or entities to assist the inspectors in the performance of the duties of the inspectors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting. No ballot, proxies or votes, nor any revocations thereof or change thereto, shall be accepted by the inspectors after the closing of the polls unless the Court of Chancery shall determine otherwise upon application by a stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In determining the validity and counting of proxies and ballots, the inspectors shall be limited to an examination of the proxies, any envelopes submitted with those proxies, any information provided in accordance with Sections 211(e) or 212(c)(2) of the Delaware General Corporation Law or any information provided pursuant to Section 211(a)(2)(B)(i) or (iii) thereof, ballots and the regular books and records of the Corporation, except that the inspectors may consider other reliable information for the limited purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the holder of a proxy is authorized by the record owner to cast or more votes than the stockholder holds of record. If the inspectors consider other reliable information for the Iimited purpose permitted herein, the inspectors at the time they make their certification pursuant to subsection (b)(v) of this section shall specify the precise information considered by them including the person or persons from whom they obtained the information, when the information was obtained , the means by which the information was obtained and the basis for the inspectors' belief that such information is accurate and reliable.

**Section 2.10 List of Stockholders.**

The Corporation shall prepare, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at any meeting of stockholders, (provided, however, if the record date for determining the stockholders entitled to vote is less than 10 days before the meeting date, the list shall reflect the stockholders entitled to vote on the tenth day before the meeting date), arranged in alphabetical order, showing the address of and the number of shares registered in the name of each stockholder. The Corporation need not include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least 10 days prior to the meeting: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours at the principal place of business of the Corporation. In the event that the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to stockholders of the Corporation. If the meeting is to be held at a place, then the list shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then the list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting.

**Section 2.11 Advance Notice of Stockholder Nominations and Proposals.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Definitions.**

**"Exchange Act"** means the Securities Exchange Act of 1934, as amended , and the rules and regulations promulgated thereunder.

**"Public Disclosure"** means any of the following: a news release posted on the OTC Disclosure and News Service; a press release reported by the Dow Jones News Services, The Associated Press, or a comparable national news service or in a document filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act; or a news release or other disclosure disseminated on the System for Electronic Document Analysis and Retrieval (SEDAR) developed for the Canadian Securities Administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Annual Meetings.** At a meeting of the stockholders, only such nominations of persons for the election of directors and such other business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, nominations or such other business must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors or any committee thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors or any committee thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) otherwise properly brought before an annual meeting by a stockholder who is a stockholder of record of the Corporation at the time such notice of meeting is delivered, who is entitled to vote at the meeting, and who complies with the notice procedures set forth in this Section 2.11(b).

In addition, any proposal of business (other than the nomination of persons for election to the Board of Directors) must be a proper matter for stockholder action. For business (including but not limited to, director nominations) to be properly brought before an annual meeting by a stockholder pursuant to Section 2.11 (b)(iii), the stockholder or stockholders of record intending to propose the business (the "Proposing Stockholder") must have given timely notice thereof pursuant to this Section 2.11 (b) in writing to the secretary of the Corporation even if such matter is already the subject of any notice to the stockholders or Public Disclosure from the Board of Directors. To be timely, a Proposing Stockholder's notice for an annual meeting must be delivered to or mailed and received at the principal executive offices of the Corporation: (x) not later than the close of business on the 90th day, nor earlier than the close of business on the 150th day in advance of the anniversary of the previous year's annual meeting if such meeting is to be held on a day which is not more than 30 days in advance of the anniversary of the previous year's annual meeting or not later than 60 days after the anniversary of the previous year's annual meeting; and (y) with respect to any other annual meeting of stockholders, including in the event that no annual meeting was held in the previous year, not earlier than the close of business on the I 50th day prior to the annual meeting and not later than the close of business on the later of: (1) the 90th day prior to the annual meeting and (2) the close of business on the 15th day following the first date of Public Disclosure of the date of such meeting. In no event shall the Public Disclosure of an adjournment or postponement of an annual meeting commence a new notice time period (or extend any notice time period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Stockholder Nominations.** For the nomination of any person or persons for election to the Board of Directors pursuant to Section 2.11(b)(iii) or Section 2.11 (e) a Proposing Stockholder's notice to the secretary of the Corporation shall set forth or include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the name, age, business address, and residence address of each nominee proposed in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the principal occupation or employment of each such nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the class and number of shares of capital stock of the Corporation which are owned of record and beneficially by each such nominee (if any);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other information concerning each such nominee as would be required to be disclosed in a proxy statement soliciting proxies for the election of such nominee as a director in an election contest (even if an election contest is not involved) or that is otherwise required to be disclosed, under Section 14(a) of the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a written questionnaire with respect to the background and qualification of such proposed nominee (which questionnaire shall be provided by the secretary of the Corporation upon written request) and a written statement and agreement executed by each such nominee acknowledging that such person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) consents to being named in the Corporation's proxy statement as a nominee and to serving as a director if elected,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) intends to serve as a director for the full term for which such person is standing for election, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) makes the following representations: (1) that the director nominee has read and agrees to adhere to the Corporation's Corporate Governance Guidelines, Ethics Code, Related Party Transactions Policy, and any other of the Corporation's policies or guidelines applicable to directors, including with regard to securities trading, and (2) [that the director nominee is not and will not become a party to any agreement, arrangement, or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a **"Voting Commitment")**that has not been disclosed to the Corporation or any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law, and (3) that the director nominee is not and will not become a party to any agreement, arrangement, or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement, or indemnification in connection with such person's nomination for director or service as a director that has not been disclosed to the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) as to the Proposing Stockholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the name and address of the Proposing Stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the nomination is being made,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the class and number of shares of the Corporation which are owned by the Proposing Stockholder (beneficially and of record) and owned by the beneficial owner, if any, on whose behalf the nomination is being made, as of the date of the Proposing Stockholder's notice, and a representation that the Proposing Stockholder will notify the Corporation in writing of the class and number of such shares owned of record and beneficially as of the record date for the meeting within five business days after the record date for such meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a description of any agreement, arrangement, or understanding with respect to such nomination between or among the Proposing Stockholder or the beneficial owner, if any, on whose behalf the nomination is being made and any of their affiliates or associates, and any others (including their names) acting in conce1t with any of the foregoing, and a representation that the Proposing Stockholder will notify the Corporation in writing of any such agreement, arrangement, or understanding in effect as of the record date for the meeting within five business days after the record date for such meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a description of any agreement, arrangement, or understanding (including any derivative or short position , profit interests, options, hedging transactions, and borrowed or loaned shares) that ha been entered into as of the date of the Proposing Stockholder's notice by, or on behalf of, the Proposing stockholder or the beneficial owner, if any, on whose behalf the nomination is being made and any of their affiliates or associates, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of such person or any of their affiliates or associate with respect to shares of stock of the Corporation, and a representation that the Proposing Stockholder will notify the Corporation in writing of any such agreement, arrangement, or understanding in effect as of the record date for the meeting within five business days after the record date for such meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a representation that the Proposing Stockholder is a holder of record of shares of the Corporation entitled to vote at the meeting and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) a representation whether the Proposing Stockholder intends to deliver a proxy statement and /or form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve the nomination and /or otherwise to solicit proxies from stockholders in support of the nomination.

The Corporation may require the representations of the Proposing Stockholder to be notarized and require any proposed nominee to furnish such other information as it may reasonably require to determine the eligibility of such proposed nominee to serve as an independent director of the Corporation or that could be material to a reasonable stockholder's understanding of the independence, or lack thereof, of such nominee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Other Stockholder Proposals.** For all business other than director nominations, a Proposing Stockholder's notice to the secretary of the Corporation shall set forth as to each matter the Proposing Stockholder proposes to bring before the annual meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a brief description of the business desired to be brought
before the annual meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the reasons for conducting such business at the annual meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the text of any proposal or business (including the text of
any resolutions proposed for consideration and in the event that such business includes a proposal to amend these bylaws, the language
of the proposed amendment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) in such business of such stockholder and the beneficial owner (within the meaning of Section 13(d) of the Exchange Act), if any, on whose behalf the business is being proposed ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any other information relating to such stockholder and beneficial owner, if any, on whose behalf the proposal is being made, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the proposal and pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a description of all agreements, arrangements, or understandings between or among such stockholder, the beneficial owner, if any, on whose behalf the proposal is being made, any of their affiliates or associates, and any other person or persons (including their names) in connection with the proposal of such business and any material interest of such stockholder, beneficial owner, or any of their affiliates or associates, in such business, including any anticipated benefit therefrom to such stockholder, beneficial owner, or their affiliates or associates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the information required by Section 2.11(c)(vi) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Special Meetings of Stockholders.** Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting. Nominations of persons for election to the Board of Directors may be made at a special meeting of stockholders called by the Board of Directors at which directors are to be elected pursuant to the Corporation's notice of meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by or at the direction of the Board of Directors or any committee thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) provided that the Board of Directors has determined that directors shall be elected at such meeting, by any stockholder of the Corporation who is a stockholder of record at the time the notice provided for in this Section 2.11 is delivered to the secretary of the Corporation, who is entitled to vote at the meeting and upon such election, and who complies with the notice procedures set forth in this Section 2.1 1.

In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any such stockholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation's notice of meeting, if such stockholder delivers a stockholder's notice that complies with the requirements of Section 2.01(c) to the secretary of the Corporation at its principal executive offices not earlier than the close of business on the 150th day prior to such special meeting and not later than the close of business on the later of: (x) the 90th day prior to such special meeting; or (y) the fifteenth (15th) day following the first date of Public Disclosure of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall the Public Disclosure of an adjournment or postponement of a special meeting commence a new time period (or extend any notice time period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Effect of Noncompliance.** Only such persons who are nominated in accordance with the procedures set forth in this Section 2.11 shall be eligible to be elected at any meeting of stockholders of the Corporation to serve as directors and only such other business shall be conducted at a meeting as shall be properly brought before the meeting in accordance with the procedures set forth in this Section 2.11 . The chairman of the meeting shall have the power and duty to determine whether a nomination or any other business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in this Section 2.11. If any proposed nomination was not made or proposed in compliance with this Section 2.11, or other business was not made or proposed in compliance with this Section 2.11, then except as otherwise provided by law, the chairman of the meeting shall have the power and duty to declare that such nomination shall be disregarded or that such proposed other business shall not be transacted. Notwithstanding anything in these bylaws to the contrary, unless otherwise required by law, if a Proposing Stockholder intending to propose business or make nominations at an annual meeting or propose a nomination at a special meeting pursuant to this Section 2.11 does not provide the information required under this Section 2.11 to the Corporation, including the updated information required by Section 2.1 1 (B)(vi)(B), Section 2.1 1(c)(vi)(C), and Section 2.11(c)(vi)(D) within five business days after the record date for such meeting, or the Proposing Stockholder (or a qualified representative of the Proposing Stockholder) does not appear at the meeting to present the proposed business or nominations, such business or nominations shall not be considered, notwithstanding that proxies in respect of such business or nominations may have been received by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Rule 14a-8.** This Section 2.11 of these bylaws shall not apply to a proposal proposed to be made by a stockholder if the stockholder has notified the Corporation of the stockholder's intention to present the proposal at an annual or special meeting only pursuant to and in compliance with Rule 14a-8 under the Exchange Act and such proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for such meeting.

**Section 2.12 No Stockholder Action by Written Consent Without a Meeting.**

No action that is required or permitted to be taken by the stockholders of the Corporation at any annual or special meeting of stockholders may be effected by written consent of stockholders in lieu of a meeting.

**Section 2.13 Record Date for Stockholder Notice.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted and which shall not be more than sixty (60) nor less than ten (10) days before the date of such meeting. If the Board of Directors does not fix a record date in accordance with these Bylaws and applicable law; the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived , at the close of business on the day next preceding the date on which the meeting is held. A determination of stockholders of record entitled notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

**ARTICLE 3**

**DIRECTORS**

**Section 3.1 Number and Term of Office.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized number of directors shall be determined from time to time by resolution of the Board of Directors, provided the Board of Directors shall consist of at least three members. The number of directors may at any time be increased or decreased by the directors at any regular or special meeting provided that no decrease shall have the effect of shortening the term of any incumbent director. Except as provided in Section 3.3 and Section 3.4 of these Bylaws, directors shall be elected at the annual meeting of stockholders and the term of office of each director shall be until the next annual meeting of stockholders and until the election and qualification of his successor. Directors need not be stockholders unless so required by the Certificate of lncorporation or these Bylaws. The Certificate of lncorporation or these Bylaws may prescribe other qualifications for directors. Each director, including a director elected to fill a vacancy, shall hold office until such director's successor is elected and qualified or until such director's earlier death, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All elections of directors shall be by written ballot, unless otherwise provided in the Certificate of Incorporation. If authorized by the Board , such requirement of a written ballot shall be satisfied by a ballot submitted by electronic transmission, provided that any such electronic transmission must be either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized.

**Section 3.2 Powers.**

The powers of the Corporation shall be exercised, its business conducted and its property controlled by or under the direction of the Board of Directors.

**Section 3.3 Vacancies.**

Vacancies and newly created directorships resulting from any increase in the authorized number of directors, and any vacancies on the Board of Directors resulting from death, resignation, disqualification, removal or other cause shall be filled only by the affirmative vote of a majority of the remaining directors then in office, although less than a quorum, or by a sole remaining director and shall not be filled by the stockholders. A director elected to fill a vacancy or a newly created directorship shall hold office until the next election of the class for which such director shall have been chosen, subject to the election and qualification of a successor and to such director's earlier death, resignation or removal.

**Section 3.4 Resignations and Removals.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any director may resign at any time by delivering his resignation to the Secretary in writing or by electronic transmission, such resignation to specify whether it will be effective at a particular time, upon receipt by the Secretary or at the pleasure of the Board of Directors. If no such specification is made it shall be deemed effective at the pleasure of the Board of Directors. When one or more directors shall resign from the Board of Directors effective at a future date, a majority of the director then in office, including those who have so resigned shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignation shall become effective, and each director so chosen shall hold office for the unexpired portion of the term of the director whose place shall be vacated and until his successor shall have been duly elected and qualified .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At a special meeting of stockholders called for the purpose in the manner hereinabove provided, the Board of Directors or any individual director may be removed from office, with or without cause, and a new director or directors elected by a vote of stockholders holding a majority of the outstanding shares entitled to vote at an election of directors.

**Section 3.5 Meetings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The annual meeting of the Board of Directors shall be held immediately after the annual stockholders' meeting and at the place where such meeting is held or at the place announced by the chairman at such meeting. o notice of an annual meeting of the Board of Directors shall be necessary, and such meeting shall be held for the purpose of electing officers and transacting such other business as may lawfully come before it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as hereinafter otherwise provided , regular meetings of the Board of Directors shall be held at the principal executive office of the Corporation. Regular meetings of the Board of Directors may also be held at any place, within or without the State of Delaware, which has been designated by resolutions of the Board of Directors or the written consent of all directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Special meetings of the Board of Directors may be held at any time and place within or without the State of Delaware whenever called by the Chairman of the Board or, if there is no Chairman of the Board , by the President, or by a majority of the members of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Written notice of the time and place of all regular and special meetings of the Board of Directors shall be delivered personally to each director or sent by any form of electronic transmission at least 24 hours before the start of the meeting, or sent by first class mail at least five (5) days before the start of the meeting. Notice of any meeting may be waived in writing at any time before or after the meeting. The attendance of a Director at a meeting shall constitute a waiver of notice of the meeting, except where a Director attends a meeting solely for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting wa not lawfully called or convened. either the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice or waiver of notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any member of the Board ofDirectors, or of any committee thereof, may participate in a meeting by means of conference telephone or other communication equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The transactions of any meeting of the Board of Directors, or any committee thereof, however called or noticed, or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice if a quorum be present and if, either before or after the meeting, each of the directors not present shall sign a written waiver of notice, or a consent to holding such meeting, or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

**Section 3.6 Quorum and Voting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A quorum of the Board of Directors shall consist of a majority of the exact number of directors fixed from time to time in accordance with Section 3.1 of Article III of these Bylaws; provided , however, at any meeting, if a quorum is not present, then a majority of the directors present may adjourn the meeting from time to time, without notice other than by announcement at the meeting, until a quorum is present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At each meeting of the Board of Directors at which a quorum is present, the vote of a majority of the directors present shall be the act of the Board, unless a different vote be required by law, the Certificate of Incorporation, or these Bylaws.

**Section 3.7 Action Without Meeting.**

Unless otherwise restricted by the Certificate of lncorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board of Directors or of such committee, as the case may be, consent thereto in writing or by electronic transmission, and such writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board of Directors or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

**Section 3.8 Fees and Compensation.**

Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed or determined by resolution of the Board of Directors.

**Section 3.9 Committees.**

The Board may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board or in these Bylaws, shall have and may exercise such lawfully delegable powers and duties as the Board may confer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Audit Committee:** The Board may establish an Audit Committee whose principal purpose will be to oversee the Corporation 's and its subsidiaries' accounting and financial reporting processes, internal systems of control , independent auditor relationships and audits of consolidated financial statements of the Corporation and its subsidiaries. The Audit Committee will also determine the appointment of the independent auditors of the Corporation and any change in such appointment and ensure the independence of the Corporation 's auditors. In addition, the Audit Committee will assume such other duties and responsibilities as the Board may confer upon the committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Corporate Governance and Nominating Committee:** The Board may establish a Corporate Governance and Nominating Committee whose principal duties will be to assist the Board by identifying individuals qualified to become Board members consistent with criteria approved by the Board , to recommend to the Board for its approval the slate of nominees to be proposed by the Board to the stockholders for election to the Board, to develop and recommend to the Board the governance principles applicable to the Corporation, as well as such other duties and responsibilities as the Board may confer upon the committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Compensation Committee:** The Board may establish a Compensation Committee whose principal duties will be to review employee compensation policies and programs as well as the compensation of the Chief Executive Officer and other executive officers of the corporation, to recommend to the Board a compensation program for outside Board members, as well as such other duties and responsibilities as the Board may confer upon the committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Executive Committee:** The Board of Directors may establish an Executive Committee whose principal duties will be to aid the Board in handling matters which, in the opinion of the Chairman of the Board , should not be postponed until the next scheduled meeting of the Board. To the extent permitted by law, the Executive Committee shall have and may exercise, when the Board of Directors is not in session, all powers of the Board of Directors in the management of the business and affairs of the Corporation, including, without limitation, the power and authority to declare a dividend or to authorize the issuance of stock, except such committee shall not have the power or authority to amend the Certificate of Incorporation, to adopt an agreement or merger or consolidation, to recommend to the stockholders the sale, lease or exchange of all or substantially all of the Corporation 's property and assets, to recommend to the stockholders of the Corporation a dissolution of the Corporation or a revocation of a dissolution, or to amend these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Other Committees:** The Board of Directors may from time to time establish such other committees as may be permitted by law. Such other committees appointed by the Board of Directors shall have such powers and perform such duties as may be prescribed by the resolution or resolutions creating such committee, but in no event shall any such committee have the powers denied to the Executive Committee in these Bylaws.

members of the committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Meetings:** Unless the Board of Directors shall otherwise provide, regular meetings of any committee appointed pursuant to this Section 3.10 shall be held at such times and places as are determined by the Board of Directors, or by any such committee, and when notice thereof has been given to each member of such committee, no further notice of such regular meetings need be given thereafter. Special meetings of any such committee may be held at the principal executive office of the Corporation or at any place which has been designated from time to time by resolution of such committee or by written consent of all members thereof, and may be called by any director who is a member of such committee upon written notice to the members of such committee of the time and place of such special meeting given in the manner provided for the giving of written notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors. Notice of any special meeting of any committee may be waived in writing at any time after the meeting and the attendance of a director at a meeting shall constitute a waiver of notice of the meeting. A majority of the authorized number of members of any such committee shall constitute a quorum for the transaction of business, and the act of a majority of those present at any meeting at which a quorum is present shall be the act of such committee.

**ARTICLE 4**

**OFFICERS**

**Section 4.1 Officers Designated.**

The officers of the Corporation shall be a Chief Executive Officer and a Secretary. The Corporation may also have, at the discretion of Board of Directors, a Chairman of the Board, a President, a Chief financial Officer, a Treasurer, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers and agents with such powers and duties as may be appointed in accordance with the provisions of these Bylaws. Any one person may hold any number of offices of the Corporation at any one time unless specifically prohibited therefrom by law.

The salaries and other compensation of the officers of the Corporation shall be fixed by or in the manner designated by the Board of Directors.

**Section 4.2 Tenure and Duties of Officers.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General:** The Board shall appoint the officers of the Corporation except such officers as may be appointed in accordance with the provisions of Sections 4.2(b) of these Bylaws, subject to the rights, if any, of an officer under any contract of employment. All officers shall hold office until their successors shall have been duly elected and qualified , or until their earlier resignation or removal. A failure to elect officers shall not dissolve or otherwise affect the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board may appoint, or empower the Chief Executive Officer of the Corporation, to appoint, such other officers and agents as the business of the Corporation may require. Each of such officers and agents shall hold office for such period , have such authority, and perform such duties as are provided in these Bylaws or as the Board may from time to time determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any officer may be removed , either with or without cause, by an affirmative vote of the majority of the Board at any regular or special meeting of the Board of Directors or, except in the case of an officer appointed by the Board, by any officer upon whom such power of removal has been conferred by the Board.

Any officer may resign at any time by giving written notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party.

Any vacancy occurring in any office of the corporation shall be filled by the Board of Directors or as provided in Section 4.2(b). Nothing in these Bylaws shall be construed as creating any kind of contractual right to employment with the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Duties of the Chairman of the Board of Directors:** The Chairman of the Board of Directors shall be a member of the Board and, when present, shall preside at all meetings of the Board of Directors. The Chairman of the Board of Directors shall exercise and perform such other powers and duties as may from time to time be assigned by the Board of Directors or as may be prescribed by these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Duties of Chief Executive Officer:** Subject to the control of the Board and any supervisory powers the Board may give to the Chairman of the Board, the Chief Executive Officer shall have general supervision, direction, and control of the business and affairs of the Corporation and shall see that all orders and resolutions of the Board are carried into effect. The Chief Executive Officer shall, together with any President of the Corporation, also perform all duties incidental to this office that may be required by law and all such other duties as are properly required of this office by the Board of Directors. The Chief Executive Officer shall serve as Chairman of and preside at all meetings of the stockholders. ln the absence of the Chairman of the Board , the Chief Executive Officer shall preside at all meetings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Duties of President:** Subject to the control of the Board and any supervisory powers the Board may give to the Chairman of the Board , the President of the Corporation shall, together with the Chief Executive Officer, have general supervision, direction, and control of the business and affairs of the Corporation and shall see that all orders and resolutions of the Board are carried into effect. The President shall perform such other duties and have such other powers as the Board of Directors, these Bylaws, the Chief Executive Officer, or the Chairman of the Board shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Duties of Vice-Presidents:** The Vice-Presidents, in the order of their seniority, may assume and perform the duties of the President in the absence or disability of the President or whenever the office of the President is vacant. The Vice-President shall perform such other duties and have such other powers as the Board of Directors, these Bylaws, the Chief Executive Officer, the Chairman of the Board, or, in the absence of a Chief Executive Officer, the President shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Duties of Secretary; Assistant Secretary:** The Secretary shall keep or cause to be kept, at the principal executive office of the Corporation or such other place as the Board may direct, a book of minutes of all meetings and actions of directors, committees of directors, and stockholders, which may be maintained in either paper or electronic form. The minutes shall show: (i) the time and place of each meeting; (ii) whether regular or special (and , if special, how authorized and the notice given); (iii) the names of those present at directors ' meetings or committee meetings; (iv) the number of shares present or represented at stockholders ' meetings; and (v) the proceedings thereof.

The Secretary shall keep or cause to be kept, at the principal executive office of the Corporation or at the office of the Corporation 's transfer agent or registrar, as determined by resolution of the Board , a share register, or a duplicate share register showing: (i) the names of all stockholders and their addresses; (ii) the number and classes of shares held by each ; (iii) the number and date of certificates evidencing such shares; and (iv) the number and date of cancellation of every certificate surrendered for cancellation.

The Secretary shall give, or cause to be given, notice of all meetings of the stockholders and of all meetings of the Board of Directors required to be given by Jaw or by these Bylaws. The Secretary shall keep the seal of the Corporation, if one be adopted , in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or these Bylaws.

The Assistant Secretary, or, if there is more than one, the Assistant Secretaries in the order determined by the Board (or if there be no such determination, then in the order of their election) shall, in the absence of the Secretary or in the event of the Secretary 's inability or refusal to act, perform the duties and exercise the powers of the Secretary and shall perform such other duties and have such other powers as may be prescribed by the Board or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Duties of Chief Financial Officer:** The Chief Financial Officer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings and shares. The books of account shall at all reasonable times be open to inspection by any Director.

The Chief Financial Officer shall deposit all moneys and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate. The Chief Financial Officer shall disburse the funds of the Corporation as may be ordered by the Board , shall render to the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President and any Director, whenever they request it, an account of all his or her transactions as Chief Financial Officer and of the financial condition of the Corporation, and shall have other powers and perform such other duties as may be prescribed by the Board or these Bylaws.

The Chief Financial Officer may be the Treasurer of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U) **Duties of Treasurer; Assistant Treasurer:** The Treasurer shall keep and maintain or cause to be kept and maintained , adequate and correct books and records of accounts of the properties and business transactions of the corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings and shares. The books of account shall at all reasonable times be open to inspection by any Director.

The Treasurer shall deposit all moneys and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate. The Treasurer shall disburse the funds of the Corporation as may be ordered by the Board , shall render to the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President and the Directors, whenever they request it, an account of all his or her transactions as Treasurer and of the financial condition of the Corporation, and shall have other powers and perform such other duties as may be prescribed by the Board or these Bylaws.

The Assistant Treasurer, or, if there is more than one, the assistant treasurers, in the order determined by the Board (or if there be no such determination, then in the order of their election), shall, in the absence of the Chief Financial Officer or Treasurer or in the event of the Chief Financial Officer's or Treasurer's inability or refusal to act, perform the duties and exercise the powers of the Chief Financial Officer or Treasurer, as applicable, and shall perform such other duties and have such other powers as may be prescribed by the Board or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Authority and Duties of Officers:** In addition to the foregoing authority and duties, all officers of the Corporation shall respectively have such authority and perform such duties in the management of the business of the Corporation as may be designated from time to time by the Board of Directors.

**ARTICLE 5**

**GENERAL MATTERS**

**Section 5.1 Checks, Drafts, Evidences of Indebtedness.**

From time to time, the Board shall determine by resolution which person or persons may sign or endorse all checks, drafts, other orders for payment of money, notes or other evidences of indebtedness that are issued in the name of or payable to the Corporation, and only the persons so authorized shall sign or endorse those instruments.

**Section 5.2 Execution of Corporate Contracts and Instruments.**

Except as otherwise provided in these Bylaws, the Board , or any officers of the Corporation authorized thereby, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances.

Execution of any corporate contract or instrument may be effected in such form, either manual , facsimile or electronic signature, as may be authorized by the Board of Directors.

**Section 5.3 Voting of Securities Owned by Corporation.**

All stock and other securities of other Corporations owned or held by the Corporation for itself or for other parties in any capacity shall be voted , and all proxies with respect thereto shall be executed, by the person authorized so to do by resolution of the Board of Directors or, in the absence of such authorization, by the Chief Executive Officer.

**Section 5.4 Form and Execution of Certificates.**

The shares of the Corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Notwithstanding the adoption of such a resolution by the Board , every holder of uncertificated shares shall be entitled to have a certificate signed by, or in the name of the Corporation by the Chairman or vice-chairman of the Board , or any President or Vice- President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the Corporation representing the number of shares registered in certificate form.

Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued with the same effect as if he were such officer, transfer agent, or registrar at the date of issue.

**Section 5.5 Special Designation on Certificates.**

If the Corporation is authorized to issue more than one class of stock or more than one series of any class, the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and /or rights shall be set forth in full or summarized on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock, provided , however, that, except as otherwise provided in Section 202 of the Delaware General Corporation Law, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock, a statement that the Corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

**Section 5.6 Lost Certificates.**

Except as provided in this Section 5.6, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Corporation and cancelled at the same time. The Corporation may issue a new certificate or certificates of stock (or uncertificated shares in lieu of a new certificate) in place of any certificate or certificates theretofore issued by the Corporation alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed cer1ificate, or such owner 's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

With respect to any new certificate or certificates of stock issued to any stockholder resident in any province or territory of Canada as a replacement for lost, stolen or destroyed certificate, or in connection with a stock split, there must be paid to the Corporation the amount, if any, determined by the directors which must not exceed the amount prescribed under the Business Corporations Act of British Columbia.

**Section 5.7 Dividends.**

The Board , subject to any restrictions contained in either (i) the Delaware General Corporation Law or (ii) the Certificate, may declare and pay dividends upon the shares of its capital stock. Dividends may be paid in cash, in property, or in shares of the corporation 's capital stock.

The Board may set apart out of any of the funds of the Corporation available for dividends a re serve or reserves for any proper purpose and may abolish any such reserve.

**Section 5.8 Construction; Definitions.**

Unless the context requires otherwise the general provisions rules of construction, and definitions in the Delaware General Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of this provision, the singular number includes the plural , the plural number includes the singular, and the term "person" includes both a corporation and a natural

person.

**Section 5.9 Fiscal Year.**

The fiscal year of the Corporation shall be fixed by resolution of the Board and may be changed by the Board.

**Section 5.10 Seal.**

The Corporation may adopt a corporate seal, which shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

**Section 5.11 Transfer of Stock.**

Transfers of stock shall be made only upon the transfer books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the stock of the Corporation. Except where a certificate is issued in accordance with Section 5.6 of these Bylaws, an outstanding certificate for the number of shares involved shall be surrendered for cancellation before a new certificate is issued therefore. Upon surrender to the Corporation or the transfer agent of the Corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer, it shall be the duty of the Corporation to issue a new certificate to the person entitled thereto, cancel the old certificate, and record the transaction in its books.

**Section 5.12 Stock Transfer Agreements.**

The Corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes or series of stock of the Corporation to restrict the transfer of shares of stock of the Corporation of any one or more classes or series owned by such stockholders in any manner not prohibited by the Delaware General Corporation Law.

**Section 5.13 Registered Stockholders.**

The Corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

**Section 5.14 Waiver of Notice.**

Whenever notice is required to be given under any provision of the Delaware General Corporation Law, the Certificate or these Bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting solely for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the Certificate or these Bylaws.

**ARTICLE 6**

**INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS**

**Section 6.1 Right to Indemnification.**

Each person who was or is a party or is threatened to be made a party to or is involved (as a party, witness, or otherwise), in any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (hereinafter a "Proceeding"), by reason of the fact that he, or a person of whom he is the legal representative, is or was a director, officer, employee, or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee, or agent of another Corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to employee benefit plans, whether the basis of the Proceed i ng is alleged action in an official capacity as a director, officer, employee, or agent or in any other capacity while serving as a director, officer employee, or agent (hereafter an "Agent"), shall be indemnified and held harmless by the Corporation to the fullest extent authorized by the Delaware General Corporation Law, as the same exists or may hereafter be amended or interpreted (but, in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the Corporation to provide broader indemnification rights than were permitted prior thereto) against all expenses, liability, and loss (including attorneys ' fees, judgments, fines, ERlSA excise taxes or penalties, and amounts paid or to be paid in settlement and any interest, assessments, or other charges imposed thereon, and any federal , state, local , or foreign taxes imposed on any Agent as a result of the actual or deemed receipt of any payments under this Article) reasonably incurred or suffered by such person in connection with investigating, defending, being a witness in , or participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding (hereinafter "Expenses"); provided , however, that except as to actions to enforce indemnification rights pursuant to Section 6.3 of this Article, the Corporation shall indemnify any Agent seeking indemnification in connection with a Proceeding (or part thereof) initiated by such person only if the Proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.

**Section 6.2 Authority to Advance Expenses.**

Expenses incurred by an officer or director (acting in his capacity as such) in defending a Proceeding shall be paid by the Corporation in advance of the final disposition of such Proceed i ng, provided, however, that such Expenses shall be advanced only upon delivery to the Corporation of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by the Corporation as authorized in this Article or otherwise. Expenses incurred by other Agents of the Corporation (or by the directors or officers not acting i n their capacity as such, including service with respect to employee benefit plans) may be advanced upon such terms and conditions as the Board of Directors deems appropriate. Any obligation to reimburse the Corporation for Expense advances shall be unsecured and no interest shall be charged thereon.

**Section 6.3 Right of Claimant to Bring Suit.**

If a claim under Section 6.1 or 6.2 of this Article is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense (including attorneys' fees) of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending a Proceeding in advance of its final disposition where the required undertaking has been tendered to the Corporation) that the claimant has not met the standards of conduct that make it permissible under the Delaware General Corporation Law for the Corporation to indemnify the claimant for the amount claimed. The burden of proving such a defense shall be on the Corporation. Neither the failure of the Corporation (including its Board of Directors, independent legal counsel , or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper under the circumstances because he has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the claimant had not met such applicable standard of conduct, shall be a defense to the action or create a presumption that claimant has not met the applicable standard of conduct.

**Section 6.4 Provisions Nonexclusive.**

The rights conferred on any person by this Article shall not be exclusive of any other rights that such person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, agreement, vote of stockholders or disinterested directors, or otherwise, both as to action in an official capacity and as to action in another capacity while holding such office. To the extent that any provision of the Certificate of lncorporation, agreement, or vote of the stockholders or disinterested directors is inconsistent with these Bylaws, the provision, agreement, or vote shall take precedence.

**Section 6.5 Authority to Insure.**

The Corporation may purchase and maintain insurance to protect itself and any Agent against any Expense, whether or not the Corporation would have the power to indemnify the Agent against such Expense under applicable law or the provisions of this Article.

**Section 6.6 Enforcement of Rights**

Without the necessity of entering into an express contract, all rights provided under this Article shall be deemed to be contractual rights and be effective to the same extent and as if provided for in a contract between the Corporation and such Agent. Any rights granted by this Article to an Agent shall be enforceable by or on behalf of the person holding such right in any court of competent jurisdiction.

**Section 6.7 Survival of Rights.**

The rights provided by this Article shall continue as to a person who has ceased to be an Agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

**Section 6.8 Settlement of Claims.**

The Corporation shall not be liable to indemnify any Agent under this Article (a) for any amounts paid in settlement of any action or claim effected without the Corporation 's written consent, which consent shall not be unreasonably withheld ; or (b) for any judicial award if the Corporation was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action.

**Section 6.9 Effect of Amendment.**

Any amendment, repeal, or modification of this Article that adversely affects any rights provided in this Article to an Agent shall only be effective upon the prior written consent of such Agent.

**Section 6.10 Primacy of Indemnification.**

Notwithstanding that an Agent may have certain rights to indemnification, advancement of expenses and /or insurance provided by other persons (collectively, the "Other lndemnitors"), the Corporation: (i) shall be the indemnitor of first resort (i.e., its obligations to an Agent are primary and any obligation of the Other Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Agent are secondary); and (ii) shall be required to advance the full amount of expenses incurred by an Agent and hall be liable for the full amount of all Expenses, without regard to any rights such Agent may have against any of the Other lndemnitors. o advancement or payment by the Other lndemnitors on behalf of an Agent with respect to any claim for which such Agent has sought indemnification from the Corporation shall affect the immediately preceding sentence, and the Other lndemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Agent against the Corporation.

**Section 6.11 Subrogation.**

In the event of payment under this Article, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of the Agent (other than against the Other Indemnitors), who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights.

**Section 6.12 No Duplication of Payments.**

Except as otherwise set forth in Section 6.10 above, the Corporation shall not be liable under this Article to make any payment in connection with any claim made against the Agent to the extent the Agent has otherwise actually received payment (under any insurance policy, agreement, vote, or otherwise) of the amounts otherwise indemnifiable hereunder.

**Section 6.13 Saving Clause.**

If this Article or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporation shall nevertheless indemnify each Agent to the fullest extent not prohibited by any applicable portion of this Article that shall not have been invalidated, or by any other applicable law.

**ARTICLE 7**

**NOTICES**

Whenever, under any provisions of these Bylaws, notice is required to be given to any stockholder, the same shall be given either (1) in writing, timely and duly deposited in the United States Mail, postage prepaid , and addressed to his last known post office address as shown by the stock record of the Corporation or its transfer agent, or (2) by a means of electronic transmission that satisfies the requirements of Section 2.5 of these Bylaws, and has been consented to by the stockholder to whom the notice is given. Any notice required to be given to any director may be given by either of the methods hereinabove stated, except that such notice other than one which is delivered personally, shall be sent to such address or (in the case of electronic communication) such e-mail address, facsimile telephone number or other form of electronic address as such director shall have filed in writing or by electronic communication with the Secretary of the Corporation, or, in the absence of such filing, to the last known post office address of such director. If no address of a stockholder or director be known, such notice may be sent to the principal executive office of the Corporation. An affidavit of mailing, executed by a duly authorized and competent employee of the Corporation or its transfer agent appointed with respect to the class of stock affected, specifying the name and address or the names and addresses of the stockholder or stockholders, director or directors, to whom any such notice or notices was or were given, and the time and method of giving the same, shall be conclusive evidence of the statements therein contained. All notices given by mail, as above provided, shall be deemed to have been given as at the time of mailing and all notices given by means of electronic transmission shall be deemed to have been given as at the sending time recorded by the electronic transmission equipment operator transmitting the same. It shall not be necessary that the same method of giving notice be employed in respect of all directors, but one permissible method may be employed in respect of any one or more, and any other permissible method or methods may be employed in respect of any other or others. The period or limitation of time within which any stockholder may exercise any option or right, or enjoy any privilege or benefit, or be required to act, or within which any director may exercise any power or right, or enjoy any privilege, pursuant to any notice sent him in the manner above provided , shall not be affected or extended in any manner by the failure of such a stockholder or such director to receive such notice. Whenever any notice is required to be given under the provisions of the statutes or of the Certificate of lncorporation, or of these Bylaws, a waiver thereof in writing signed by the person or persons entitled to said notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent thereto. Whenever notice is required to be given, under any provision of law or of the Certificate of Incorporation or Bylaws of the Corporation to any person with whom communication is unlawful the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the Corporation is such as to require the filing of a certificate under any provision of the Delaware General Corporation Law, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

**ARTICLE 8**

**AMENDMENTS**

Except as otherwise provided in section 6.9 above, the Board of Directors shall have the authority to repeal, alter or amend these Bylaws or adopt new Bylaws (including, without limitation, the amendment of any By laws setting forth the number of directors who shall constitute the whole Board of Directors) by unanimous written consent or at any annual, regular, or special meeting by the affirmative vote of a majority of the whole number of directors, to the fullest extent provided by the Delaware General Corporation Law.

Except as otherwise provided in Section 6.9 above, these Bylaws may also be repealed , altered or amended or new Bylaws adopted at any meeting of the stockholders, either annual or special, by the affirmative vote of a majority of the voting power of the stockholders entitled to vote at such meeting, unless a larger vote is required by these Bylaws or the Certificate of Incorporation.

**ARTICLE 9**

**ANNUAL AND OTHER REPORTS**

**Section 9.1 Reports to Stockholders.**

The Board of Directors of the Corporation shall cause an annual report to be sent to the stockholders not later than 120 days after the close of the fiscal year, and at least fifteen (15) days (or, if sent by third-class mail , thirty-five (35) days) prior to the annual meeting of stockholders to be held during the next fiscal year. If approved by the Board of Directors, the report and any accompanying material may be sent by electronic transmission by the Corporation (as defined in Section 2.5 hereof). This report shall contain a balance sheet as of the end of that fiscal year and an income statement and statement of changes in financial position for that fiscal year, accompanied by any report thereon of independent accountants or, if there is no such report, the certificate of an authorized officer of the Corporation that the statements were prepared without audit from the books and records of the Corporation. This report shall also contain such other matters as required by Section 1501 (b) of the California General Corporation Law, unless the Corporation is subject to the reporting requirements of Section 13 of the Securities Exchange Act of 1934, and is not exempted therefrom under Section 12(g)(2) thereof. As long as the Corporation has less than 100 holders of record of its shares (determined as provided in Section 605 of the California General Corporation Law), the foregoing requirement of an annual report is hereby waived.

If no annual report for the last fiscal year has been sent to stockholders, the Corporation shall, upon the written request of any stockholder made more than 120 days after the close of such fiscal year, deliver (including by electronic transmission by the Corporation (as defined in Section 2.4 hereof) or mail to the person making the request within thirty (30) days thereafter the financial statements for such year as required by Section 1501 (a) of the California General Corporation Law. A stockholder or stockholders holding at least five percent (5%) of the outstanding shares of any class of the Corporation may make a written request to the Corporation for an income statement of the Corporation for the three-month, six-month or nine-month period of the current fiscal year ended more than thirty (30) days prior to the date of the request and a balance sheet of the Corporation as of the end of such period and , in addition, if no annual report for the last fiscal year has been sent to stockholders, the annual report for the last fiscal year, unless such report has been waived under these Bylaws. The statements shall be delivered (including by electronic transmission by the Corporation (as defined in Section 2.5 hereof) if such transmission is permitted to such stockholder pursuant to such definition) or mailed to the person making the request within thirty (30) days thereafter. A copy of any such statements shall be kept on file in the principal executive office of the Corporation for twelve (12) months, and they shall be exhibited at all reasonable times to any stockholder demanding an examination of the statements, or a copy shall be mailed to the stockholder.

The quarterly income statements and balance sheets referred to in this section shall be accompanied by the report thereon, if any, of any independent accountants engaged by the Corporation or the certificate of an authorized officer of the Corporation that the financial statements were prepared without audit from the books and records of the Corporation.

**Section 9.2 Reports to the Secretary of State.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise required by the Secretary of State of the State of California, every year, during the applicable filing period, the Corporation shall file a certified statement with the Secretary of State of the State of California on the prescribed form , setting forth the names and complete business or residence addresses of all incumbent directors; the number of vacancies on the Board of Directors, if any; the names and complete business or residence addresses of the Chief Executive Officer, the Secretary, and the Chief Financial Officer; the street address of the Corporation 's principal executive office or principal business office in California; a statement of the general type of business constituting the principal business activity of the Corporation; and a designation of the agent of the Corporation for the purpose of service of process, all in compliance with Section 2117 of the California General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the provisions of paragraph (a) of this section, if there has been no change in the information contained in the Corporation's last annual statement on file in the Secretary of State of the State of California 's office, the Corporation may in lieu of filing the annual statement described in paragraph (a) of this section, advise the Secretary of State of the State of California on the appropriate form, that no changes in the required information have occurred during the applicable period , as permitted by Section 2117 of the California General Corporation Law.

**Section 9.3 Effectiveness of Article 9.**

If at any time following the adoption of these Bylaws the Corporation is no longer subject to Section 2115 of the California General Corporation Law, this Article 9 shall cease to apply to the Corporation and it shall have no further obligation to deliver any of the reports to its stockholders or to the Secretary of State of California as herein described.

**CERTIFICATE OF ADOPTION OF AMENDED AND RESTATED BYLAWS**

The undersigned hereby certifies that he is the duly elected, qualified, and acting Secretary of Direct Communication Solutions, Inc., a Delaware corporation, and that the foregoing Bylaws, comprising thirty (30) pages, were adopted as the Corporation 's Bylaws by the Corporation 's stockholders on June 19, 2019.

WITNESS the signature of the under signed this 19th day of June, 2019.

<u>*"Rich Gomberg"*</u> <br> Rich Gomberg, Secretary

## Exhibit 4.2

**Exhibit 4.2**

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER [ ], 2024.**

**The Convertible Debentures and the Shares issuable upon exercise of the Convertible Debentures (collectively, the "Securities") have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and the Securities are being offered and sold by the Corporation in reliance upon the exemption from the provisions of Section 5 of the U.S. Securities Act for transactions not involving a public offering provided in Section 4(2) of the U.S. Securities Act or Regulation D promulgated thereunder. The Securities are being offered and sold within the United States only to Accredited Investors as defined in Rule 501(a) of Regulation D under the U.S. Securities Act. The Securities offered hereby are not transferable except in accordance with the restrictions described herein.**

**DCS DEBENTURE SERIES 2024-[ ]**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

Incorporated under the laws of the State of Delaware

CONVERTIBLE UNSECURED DEBENTURE DUE<br> **[ ], 2025**

**WHEREAS** Direct Communication Solutions, Inc. (the "**Corporation**") is indebted to **[ ]** of **[ ]** (the "**Holder**") in an amount equal to **US$[ ]** (the "**Principal Amount**") together with interest thereon and other indebtedness of the Corporation to the Holder as herein set forth;

**WHEREAS** the Holder has requested and the Corporation has agreed to grant this non-transferable convertible unsecured debenture ("**Debenture**") for the full and timely payment and performance of the obligations of the Corporation herein set forth, including but without limitation, the repayment of the Principal Amount together with interest thereon and other indebtedness of the Corporation to the Holder as herein set forth below, and the conversion thereof into shares of common stock of the Corporation in accordance with the terms and conditions of the Debenture as herein set forth in **Schedule "A"** (which forms a part of and is incorporated by reference into this Debenture)

**NOW THEREFORE THIS DEBENTURE WITNESSETH THAT:**

**ARTICLE 1**

**INTERPRETATION**

1.1 For
 the purpose of this Debenture and all schedules attached hereto, unless the subject matter
 or context is inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**business day**" means a day on which banks are open for business in San Diego, California
 but does not in any event include a Saturday or Sunday;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Corporation** "
 means Direct Communication Solutions, Inc. and its permitted successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Debenture** ",
 "this Debenture", "the Debenture", "hereto", "herein",
 "hereby", "hereunder", "hereof" and similar expressions
 refer to this convertible unsecured debenture, in the Principal Amount represented hereby
 and not to any particular article, section, sub-section, clause, subdivision or other portion
 hereof and include any and every instrument supplemental or ancillary hereto and every debenture
 issued in replacement hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Default** "
 or "**Event of Default**" means an event of default as described in Clause
 8.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**director** "
 means a director of the Corporation for the time being and "directors" or "board
 of directors" means the board of directors of the Corporation or, if duly constituted
 and whenever duly empowered, the executive committee of the board of directors of the Corporation
 for the time being and reference to action by the directors means action by the directors
 of the Corporation as a board or action by the said executive committee as such committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**dollars** "
 or "**$**" means lawful currency of the United States of America and all references
 to cash or money shall mean dollars in lawful currency of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Holder** "
 means the Person or entity as set forth and described on the face page hereof, or the Persons
 or entities in whose name this Debenture shall be registered from time to time on the books
 of the Corporation, kept for that purpose in accordance with the terms of this Debenture
 and for the purpose hereof, the Holder hereof shall rank on a *pari passu* and equal
 basis with any other holder of a convertible unsecured debenture of the Corporation issued
 in the aggregate maximum principal amount of $1,000,000, as to all rights hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Interest** "
 shall have the meaning as described in Clause 2.2 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**material adverse effect**" means a material adverse effect on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the financial
 condition of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the ability
 of the Corporation to observe or perform its obligations under this Debenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the property,
 business, operations or liabilities of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Maturity Date**" means **[ ], 2025**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**obligations** "
 shall mean any and all present and future indebtedness and all performance obligations which
 may at any time be due and owing by the Corporation to the Holder under this Debenture and
 all other agreements, instruments and documents now or hereafter executed by or on behalf
 of the Corporation with respect to any of the foregoing, or any of the transactions contemplated
 thereby, whether now in existence or incurred hereafter, whether incurred directly or incurred
 by others and assumed by the Corporation, whether such indebtedness is absolute or contingent,
 matured or unmatured, direct or indirect, and whether the Corporation is liable for such
 indebtedness as principal, surety, endorser or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person** "
 means any individual, firm, partnership, company, corporation or other body corporate, government,
 governmental body, agency, instrumentality, unincorporated body of Persons or association
 and the heirs, executors, administrators or other legal representatives of an individual

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Principal** "
 or "**Principal Amount**" means the amount set forth on the face page hereof
 or such part thereof which remains outstanding and unpaid from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Receiver** "
 means a receiver appointed in writing or by order of a court of competent jurisdiction to
 protect and preserve the Corporation's undertaking or property and includes a receiver-manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** **"SEC** "
 means US Securities and Exchange Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)** **"Securities Act**" means the US Securities Act of 1933, as amended, and the rules and regulations
 promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Shares"
 means the shares of common stock of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Subscription Agreement**" means the Subscription Agreement whereby the Holder agreed to subscribe
 for a Debenture.

1.2 Time
 shall be of the essence hereof.

1.3 This
 Debenture shall in all respects be subject to and be interpreted and construed in accordance
 with laws of the State of Delaware.

1.4 The
 division of this Debenture into sections, sub-sections, clauses, sub clauses, and paragraphs
 in the provisions of headings for all or any thereof is for convenience or reference only
 and not for the construction or interpretation of this Debenture.

1.5 In
 this Debenture, unless there is something in the subject matter or context inconsistent therewith,
 words importing the singular shall include the plural and vice versa; and words importing
 gender shall include the masculine, feminine and neuter genders.

1.6 If
 a provision of this Debenture is wholly or partially invalid, this Debenture shall be interpreted
 as if the invalid provision had not been a part hereof.

**ARTICLE 2**

**<u>REPAYMENT</u>**

2.1 The
 Corporation hereby acknowledges and confirms itself to be indebted to the Holder and promises
 to pay to the Holder the Principal Amount, together with all accrued and unpaid Interest,
 in lawful money of the United States of America, on the Maturity Date. Should the Corporation
 at any time make default on its obligations or in the payment of any part or all of the Principal
 Amount or Interest or any other amount hereunder, then the Corporation shall pay Interest
 on the amount in default both before and after judgment at the same rate in like money at
 the same place on the same date.

2.2 Subject
 to Clause 2.3, simple interest not compounded shall be payable on the outstanding balance
 of the Principal Amount at an annual rate of **fifteen percent (15%)** ()"**Interest** "),
 calculated from and including the date of this Debenture to the date of any payments of Interest
 hereunder, as well as the Maturity Date, and also after default and before and after judgment.
 On the Maturity Date, the Principal Amount then outstanding and all Interest and other amounts
 owing hereunder, shall become immediately due and payable by the Corporation to the Holder
 in full.

2.3 Interest
 shall accrue and be added to the Principal.

2.4 The
 Holder shall, and the Corporation hereby irrevocably authorizes the Holder to, apply all
 payments made by the Corporation against the Principal Amount, Interest thereon and other
 monies which are payable by the Corporation under this Debenture in the following order:
 (i) all expenses and other monies from time to time owed to the Holder hereunder (other than
 the Principal Amount and Interest thereon), (ii) Interest payable hereunder, and (iii) Principal
 Amount.

2.5 The
 Corporation may not make prepayment unless approved by the holders of a majority of the Principal
 Amount of the Debentures.

**ARTICLE 3**

**<u>AUTHORIZED ISSUE</u>**

3.1 The
 Corporation represents and warrants to and in favour of the Holder that this Debenture has
 been issued in accordance with resolutions of the directors of the Corporation, and all other
 matters and things have been done and performed so as to authorize and make the creation
 and issue of this Debenture and its execution and delivery legal, valid and binding in accordance
 with the constating documents of the Corporation and all other statutes and laws in that
 behalf, and this Debenture is given as security for unconditional and absolute payment of
 the Principal Amount and Interest thereon, and all other monies entitled to the benefit of
 the security hereby created, with Interest thereon at the rate aforesaid, payable in the
 manner and at the times and places herein set forth and also as security for the due performance
 of all obligations of the Corporation hereunder and for the purposes and subject to the conditions,
 provisions, covenants and stipulations herein expressed.

**ARTICLE 4**

**<u>WAIVER OF EQUITIES</u>**

4.1 The
 Principal Amount, Interest and other monies owing hereunder will be paid and shall be assignable
 without regard to any equities between the Corporation and the original or any intermediate
 Holder hereof or any set-off or counterclaim, and the receipt of the Holder for the payment
 of the Principal Amount and Interest will be a good discharge to the Corporation in respect
 thereof.

**ARTICLE 5**

**<u>FURTHER ASSURANCES</u>**

5.1 The
 Corporation will at all times use reasonable commercial efforts to, execute, acknowledge
 and deliver or cause to be done, executed, acknowledged and delivered all such further acts,
 deeds, mortgages, transfers and assurances in law as the Holder shall reasonably require
 for better assuring, mortgaging, assigning and confirming unto the Holder all and singular
 the undertaking and all of the property and assets of the Corporation hereby mortgaged or
 charged or intended so to be or which the Corporation may hereafter become bound to mortgage
 or charge to and in favour of the Holder and for the better accomplishing and effectuating
 of the intentions of this Debenture.

**ARTICLE 6**

**<u>COVENANTS OF THE CORPORATION</u>**

6.1 The
 Corporation covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 forever defend the assets of the Company against every Person whomsoever lawfully claiming
 or attempting to claim the same or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 pay the Principal Amount together with Interest and other monies hereby and other appurtenant
 charges thereon, in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 carry on and continuously conduct its business in a lawful manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 keep and maintain proper books of account and records accurately covering all aspects of
 the business affairs of the Corporation and to permit authorized officers, employees or agents
 of the Holder to inspect the same during regular business hours upon reasonable advance notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to
 fully pay and discharge as and when the same become due and payable all taxes (including
 local improvement rates), rates, duties and assessments that may be levied, rated, charged
 or assessed against the Corporation, or the assets of the Corporation, or any part thereof
 unless same is being contested in good faith, and if the Corporation fails to pay any of
 such taxes, rates, duties or assessments and if it is not in good faith contesting the same,
 the Holder may pay, but shall not be obligated to pay, the same and any amounts so paid by
 the Holder shall become and form part of the Principal Amount and shall bear Interest at
 the rate aforesaid until paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to
 at all times promptly observe, perform, execute and comply with all applicable laws, rules,
 requirements, orders, directions, by-laws, ordinances, work orders and regulations of every
 governmental authority and agency whether federal, provincial, municipal or otherwise, including,
 without limiting the generality of the foregoing, those dealing with fire, access, the environment
 (whether for its protection, preservation, clean-up or otherwise), toxic materials or other
 environmental hazards, public health and safety, and all private covenants and restrictions
 affecting the Corporation and from time to time, upon request of the Holder, to provide to
 the Holder evidence of such observance and compliance and at the Corporation's expense, take
 all such other action as may be required at any time by any such present or future law, rule,
 requirement, order, direction, by-law, ordinance, work order or regulation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to
 immediately give notice to the Holder of any Event of Default or of any event which with
 notice or lapse of time, or both, would constitute an Event of Default hereunder.

6.2 The
 Corporation shall not, without the prior written consent of the holders of a majority of
 the Principal Amount under all the Debentures, first make any distribution to its shareholders
 or any of them or declare or pay any dividends.

6.3 (a) The
 Corporation at its own cost will protect the assets of the Corporation against all encumbrances
 of any nature, including all claims of workmen or materialmen that might arise from the administration
 or operation of any part of the assets of the Corporation or from the Corporation's operations;
 and will pay or cause to be paid all such liabilities and all charges for labour, materials
 and equipment incurred in such administration and operation unless same is being contested
 in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 a lien is placed on any assets of the Corporation, or the title to any assets of the Corporation
 shall be endangered or shall be attacked directly or indirectly, or if any legal proceedings
 are instituted against the Corporation, the Corporation will promptly give written notice
 thereof to the Holder, at its sole cost and expense, and will diligently cure any defect
 that may be developed or validly claimed, and will take all necessary and proper steps for
 the defence of the title of the assets of the Corporation and will take such action as is
 reasonably appropriate to the defence of any such legal proceedings including, but not limited
 to, the employment of counsel, for the prosecution or defence of litigation and the release
 or discharge of claims made against the title to the assets of the Corporation. If the Holder
 shall deem it necessary or expedient, the Corporation hereby authorizes the Holder to take
 all additional steps deemed by the Holder reasonably necessary or advisable for the defence
 of such title, or assets of the Corporation including, but not limited to, the employment
 of independent counsel, for the prosecution or defence of litigation and the compromise or
 discharge of any adverse claims made with respect thereto.

**ARTICLE 7**

**<u>NON-PERFORMANCE OF COVENANTS</u>**

7.1 If
 the Corporation fails to perform any of its obligations contained in this Debenture, the
 Holder may itself perform any of the said obligations capable of being performed by it or
 make advances to perform the same on its behalf but shall be under no obligation to do so.

7.2 No
 performance or advance by the Holder under this Article and no waiver under any provisions
 of this Debenture shall prejudice the rights of the Holder with regard to the Corporation
 in respect of any subsequent breach by the Corporation of the same or of any other covenant,
 and no such performance or advance shall relieve the Corporation from default unless the
 Corporation shall make good to the Holder the non-performance or the effect of such non-performance
 and shall repay all sums expended or advanced by the Holder and interest thereon.

**ARTICLE 8**

**<u>EVENTS OF DEFAULT BY THE CORPORATION AND ACCELERATION</u>**

8.1 Notwithstanding
 anything herein contained in the event of a Default, the entire Principal Amount and all
 Interest either due or accruing due hereunder and other monies payable by the Corporation
 hereunder thereon shall become immediately due and payable with or without prior demand therefor.
 The occurrence of any one or more of the following events (herein called an "**Event of Default**") constitutes an Event of Default in respect of this Debenture, and
 the security hereby constituted shall become enforceable upon the occurrence of the following
 events or any one thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure
 by the Corporation to make due and punctual payments of the Principal Amount, Interest thereon
 or any other monies when and as the same become due and payable pursuant to the terms hereof
 and such failure or default persists after thirty (30) business days notice by Holder to
 the Corporation requiring that the Corporation remedy, correct, desist or comply with same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Corporation makes default in the observance or performance of any covenants, agreements
 or conditions herein on the part of the Corporation to be kept, observed and performed and
 such failure or default persists after thirty (30) business days notice by Holder to the
 Corporation requiring that the Corporation remedy, correct, desist or comply with same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 an order is made or an effective resolution is passed for the winding up of the Corporation
 or if a petition is filed for the winding up of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 the Corporation makes an authorized assignment or bulk sale of its assets or if a petition
 in bankruptcy is filed or presented against the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 any proceeding with respect to the Corporation is commenced under any applicable insolvency
 or bankruptcy legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If
 the Corporation ceases or threatens to cease to carry on its business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If
 a receiver or receiver manager of any of the Corporation's undertaking or property is appointed.

8.2 The
 holders of a majority of the Principal Amount under all the Debentures may waive, in writing,
 any breach by the Corporation of any of the provisions contained in this Debenture or any
 default by the Corporation in the observance or performance of any covenant, agreement or
 condition required to be kept, observed or performed by the Corporation under the terms of
 this Debenture; provided always that no act or omission of the Holder in the premises shall
 extend to or be taken in any manner whatsoever to affect any subsequent breach of default
 or the rights of the Holder resulting therefrom.

**ARTICLE 9**

**<u>PAYMENT OF COSTS</u>**

9.1 The
 Corporation agrees to pay to the Holder forthwith upon demand all reasonable costs, charges
 and expenses, including reasonable legal fees on a solicitor and his or her own client basis,
 of or incurred by the Holder, in recovering or enforcing payment of any of the monies owing
 here-under including all costs, charges and expenses incurred in connection with taking possession,
 preserving, collecting or realizing upon the Collateral, together with interest thereon at
 the rate as herein set forth in this Debenture from the date of incurring such costs, charges
 and expenses.

**ARTICLE 10**

**<u>NON-NEGOTIABLE AND NON-TRANSFERABLE INSTRUMENT</u>**

10.1 This
 Debenture is not to be treated as a negotiable instrument. The Corporation hereby expressly
 does not waive presentment, demand, protest or notice of any kind in connection with this
 Debenture.

10.2 This
 Debenture is non- transferable.

**ARTICLE 11**

**<u>FURTHER POWERS OF HOLDER</u>**

11.1 The
 Holder may, in the exercise of any of its rights granted hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) act
 on the opinion or advice of any lawyer, valuer, broker, auctioneer or other expert, whether
 obtained by the Holder or by the Corporation or otherwise and shall not be responsible for
 any loss occasioned by so acting. Any such advice or opinion may be sent or obtained by letter,
 telegram, cablegram or telephonic message and the Holder shall not be liable for acting on
 any advice or information purporting to be conveyed by any such letter, telegram or cablegram
 or telephonic message although the same shall contain some error or shall not be authentic;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accept
 a certificate of the Corporation to the effect that any particular dealing or transaction
 or step or thing is, in the opinion of the Persons so certifying, expedient as sufficient
 evidence that it is expedient; provided how-ever that the Holder shall be in no way bound
 to call for any certificate of the Corporation or for any further or other evidence in regard
 thereto, or be responsible for any loss that may be occasioned thereby.

11.2 The
 Holder, whether in the course of the enforcement of its rights granted to it hereunder or
 otherwise howsoever:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall
 not be responsible for the consequences of any mistake or oversight of judgment or forgetfulness
 or want of prudence on the part of the Holder or any attorney, receiver, agent or other Person
 appointed by it hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 not be responsible for any misconduct on the part of any Receiver, attorney, agent or other
 Person appointed by it hereunder or bound to supervise the proceedings of such appointee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shall
 not be bound to give notice to any Person or Persons of the execution hereof or to see to
 the performance or observance of any of the obligations hereby imposed on the Corporation
 or in any way to interfere with the conduct of the Corporation's business, unless and until
 the security hereby constituted shall have become enforceable and the Holder shall have determined
 to enforce the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) shall,
 as regards all the powers, authorities and discretions hereby vested in it have absolute
 and uncontrolled discretion as to the exercise thereof in relation to the mode of and time
 for the exercise thereof and in the absence of fraud, it shall be in no way, responsible
 for any loss, cost, damage or inconvenience that may result from the exercise or the non-exercise
 thereof.

11.3 The
 Holder hereof shall, as regards all the powers, authorities and discretions hereby vested
 in it have absolute and uncontrolled discretion as to the exercise thereof and in the absence
 of fraud, it shall be in no way, responsible for any loss, cost, damage or inconvenience
 that may result from the exercise or the non-exercise thereof.

11.4 The
 provisions of this Article shall not in any way be interpreted or construed so as to limit
 or restrict the rights and/or remedies of the Holder under this Debenture or otherwise.

**ARTICLE 12**

**<u>NOTICES</u>**

12.1 Notice
 may be served on the Corporation and any demand for payment for any monies owing hereunder
 may be made upon the Corporation by sending such notice or demand through the post by prepaid
 registered letter or by fax, or by personal delivery addressed to the Corporation, and any
 notice or demand so mailed shall be deemed to have been received at the expiration of five
 (5) days after it is posted and twenty four (24) hours if forwarded by fax or personal delivery.
 In computing the foregoing time, Saturdays, Sundays and holidays shall be excluded. Any such
 notice or demand may be served by delivery of such notice or demand in writing to the registered
 office of the Corporation.

12.2 Notice
 may be served on the Holder by sending such notice through the post by prepaid registered
 letter or by fax, or by personal delivery addressed to the Holder, and any notice so mailed
 shall be deemed to have been received at the expiration of five (5) days after it is posted
 and twenty-four (24) hours if forwarded by fax or personal delivery. In computing the foregoing
 time, Saturdays, Sundays and holidays shall be excluded. Any such notice may be served by
 delivery of such notice in writing to the address of the Holder as stated on the Subscription
 Agreement.

**ARTICLE 13**

**<u>RETENTION OF REGISTER</u>**

13.1 The
 Corporation shall at all times, keep in its head office in San Diego, California, registration
 books in which there shall be entered the name and address of the Holder of this Debenture
 and in which transfers of this Debenture shall be registered, and which at all reasonable
 times, shall be open for inspection by the Holder.

**ARTICLE 14**

**<u>IMMUNITY OF SHAREHOLDERS, OFFICERS & DIRECTORS</u>**

14.1 Subject
 to Clause 14.2 hereof, no recourse under or upon any obligation, covenant or agreement of
 this Debenture, or for any claim based thereon or otherwise in respect thereof, shall be
 had against any shareholder, officer or director as such, past, present or future of the
 Corporation, or of any successor corporation, either directly or through the Corporation,
 whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
 assessment or penalty or otherwise; it being expressly understood that this Debenture and
 the obligations issued hereunder are solely corporate obligations, and that no such personal
 liability whatsoever shall attach to, or is or shall be incurred by shareholders, officers
 or directors, as such, of the Corporation or of any successor corporation, or any of them,
 because of the creation of the indebtedness hereby authorized, or under or by reason of the
 obligations, covenants or agreements contained in this Debenture, and that any and all such
 personal liability, either at common law or in equity or by constitution or statute, and
 any and all such rights and claims against every such shareholder, officer or director, as
 such, because of the creation of the indebtedness hereby authorized, or under or by reason
 of the obligations, covenants or agreements contained in this Debenture or implied therefrom,
 are hereby expressly waived and released as a condition of, and as a consideration for, the
 execution and issuance of this Debenture.

14.2 The
 provisions of Clause 14.1 shall have no force or effect whatsoever and cannot be relied on
 by any officer, shareholder or director who commits fraud, gross negligence, willful misconduct
 or intentional misrepresentation.

**ARTICLE 15**

**<u>COPY OF DEBENTURE</u>**

15.1 By
 the execution hereof, the Corporation hereby acknowledges receipt of a copy of this Debenture.

**IN WITNESS WHEREOF** this Debenture, dated for reference and executed [ ], 2024.

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| Per: |  |
|  | Chris Bursey, Chief Executive Officer |

---

**SCHEDULE "A"**

**<u>TO THE CONVERTIBLE DEBENTURE OF DIRECT COMMUNICATIONS SOLUTIONS INC.</u>**

(the "**Corporation**")

<u>Issue of Debentures bearing interest at 15% per annum</u>

**<u>TERMS OF OPTION TO CONVERT INTO SHARES OF COMMON STOCK</u>**

1.  **<u>Conversion</u>** 

Subject to the provisions of this option, the Holder shall have the right at its respective option (herein called the "**Option**"), at any time until the expiry of the one (1) year term of the Debenture (herein called the "**Time of Expiry**"), to convert in whole or any part of the Principal, interest thereon and any related indebtedness (collectively, the "**Indebtedness**") then outstanding in lawful money of the United States of America into shares of common stock in the capital stock of the Corporation (the "**Shares**"), for a period of one (1) year from the date of issuance of the Debenture (the "**Term**") at a conversion price at **US$6.00 (CDN$8.13)** per share of common stock. The Debentures have a maturity date of the 1<sup>st</sup> anniversary of the closing date and bear an interest rate of 15% per annum, not payable in advance.

The Subscriber understands and acknowledges that the Convertible Debenture may not be converted into Shares unless an exemption is available from the registration requirements of the U.S. Securities Act and any applicable state securities laws. In connection with any conversion of the Debenture, the Corporation may require the Holder thereof to provide to the Corporation an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Corporation, to the effect that such conversion does not require registration under the U.S. Securities Act.

1.1 All Shares issuable upon conversion of the Debentures and all certificates issued pursuant to such conversion shall bear the following legends:

**"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) WITHIN THE UNITED STATES (1) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (2) WITH THE PRIOR CONSENT OF THE COMPANY, IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION TO SUCH EFFECT FROM COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY PRIOR TO SUCH OFFER, SALE OR TRANSFER. DELIVERY OF**

**THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."**

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER [THE CLOSING DATE].**

2.  **<u>Manner of Exercise of Optional Right to Convert</u>** 

2.1 On each occasion on which the Holder desires to convert a portion of the Indebtedness into Shares, the Holder shall deliver the original Debenture to the Corporation along with written notice specifying the amount of the Indebtedness to be converted (herein called a "**Notice**").

2.2 Upon receiving or delivering a Notice, the Corporation shall forthwith after receiving all approvals required by all applicable regulatory authorities, if required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deliver
 to the Holder certificates for such Shares comprising the portion of the Indebtedness specified
 in the Notice or, if the Corporation has a securities transfer agent that is a member of
 the United States Securities Transfer Association or the Securities Transfer Association
 of Canada at the election of the Corporation, issue non-certificated inventory for such Shares
 using the Corporation 's transfer agent.

2.3 Any part of the Indebtedness may be converted as provided in this Option and all references in this Option to the conversion of the Indebtedness shall be deemed to include the conversion of a part of the Indebtedness where applicable.

***3.* <u>Conversion Upon a Qualified Financing.</u>** In the event of a Qualified Financing (as defined below), immediately following the closing of such Qualified Financing, all unpaid principal and accrued unpaid interest under this Note shall automatically convert, at a per share price equal to the Conversion Price (as defined below), into the same securities issued by the Company pursuant to such Qualified Financing. For purposes hereof, the "**Conversion Price**" shall be **US$6.00 (CDN$8.13)** per share of common stock. A "**Qualified Financing**" means the next closing of an equity financing or series of related equity financings by the Company resulting in the Company meeting the listing requirements of Nasdaq.

4.  **<u>Adjustment of Conversion Price</u>** 

4.1 If and whenever at any time prior to the Time of Expiry the outstanding Shares of the Corporation are subdivided, redivided or changed into a greater or consolidated into a lesser number of Shares or reclassified into different shares, if the Holder has not fully exercised its right of conversion prior to the effective date of such subdivision, redivision, change, or consolidation or reclassification (herein individually called a "**Change**"), the Holder shall be entitled to receive and shall accept, upon the exercise of such right at any time thereafter in lieu of the number of Shares to which the Holder was entitled upon conversion immediately prior to such Change, the aggregate number of Shares of the Corporation that the Holder would have been entitled to receive as a result of such Change if, on the effective date thereof, the Holder had been the registered holder of the number of Shares to which it was entitled upon conversion immediately prior to such Change.

4.2 If and whenever at any time prior to the Time of Expiry there is a capital reorganization of the Corporation or an amalgamation of the Corporation with or into any other Corporation including by way of a sale whereby all or substantially all of the Corporation's undertaking and assets would become the property of any other Corporation, if the Holder has not fully exercised its right of conversion prior to the effective date of such reorganization, consolidation, merger, amalgamation or sale (herein individually called a "**Reorganization**"), the Holder shall be entitled to receive and shall accept, upon exercise of such right at any time on or thereafter, in lieu of the number of Shares to which the Holder was entitled upon conversion immediately prior to such Reorganization, the aggregate number of Shares or other securities or property of the Corporation resulting from the Reorganization that the holder would have been entitled to receive as a result of such Reorganization if, on the effective date thereof, the Holder had been the registered holder of the number of Shares to which it was entitled upon conversion immediately prior to such Reorganization.

4.3 If any Reorganization occurs, appropriate adjustment shall be made in the application of the provisions set forth in this Option with respect to the rights and interests thereafter of the Holder to the end that after such event the Holder shall retain rights substantially equivalent to the rights held by it prior to the occurrence of such event and that the provisions set forth in this Option shall thereafter be made applicable, as nearly as may reasonably be, in relation to any Shares to which the Holder is entitled on the exercise of its right of conversion thereafter. Any such adjustment shall be made by and set forth in a supplement to this Option approved by the Directors of the Corporation.

4.4 The adjustments provided for in this Option are cumulative and shall apply to successive Changes, Reorganizations or other events resulting in any adjustment under the provisions of this Option.

4.5 After any adjustment pursuant to this Option, the term "**Shares**" where used herein, other than in Section 1 herein, shall be interpreted to mean the shares of any class or classes or the other securities or property which, as a result of all prior adjustments pursuant to this Option, the Holder would have been entitled to receive upon the conversion of the Indebtedness. All shares of any class or other securities or property which the Holder is at the time in question entitled to receive hereunder on the conversion of the Indebtedness, whether or not as a result of adjustments made pursuant to this Option, for the purpose of the interpretation of this Option, shall be deemed to be the Shares which the Holder is entitled to receive pursuant to the conversion of the Indebtedness.

4.6 In the event of any question arising with respect to the adjustments provided in this Option, such question shall be determined by a firm of chartered accountants appointed by the Corporation (who may be the auditors of the Corporation); such accountants shall have access to all necessary records of the Corporation and such determination shall be binding upon all parties in interest.

4.7 <u>No Requirement to Issue Fractional Shares</u> 

The Corporation shall not be required to issue fractional Shares upon the conversion of the Indebtedness pursuant to this Option. If any fractional interest in a Share would be deliverable upon the conversion of the Indebtedness, the Corporation shall issue such number of Shares as are determined by rounding any fractional interest to the closest integer.

4.8 <u>Certificate as to Adjustment</u> 

The Corporation shall from time to time immediately after the occurrence of any event which requires an adjustment as provided in this section 3, deliver a copy of a certificate signed by two of its Officers to the Holder specifying the nature of the event requiring the same and the amount of the adjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based and the method of calculation and the amount of the adjustment specified in such certificate shall be reported on by a firm of chartered accountants appointed by the Corporation (who may be the auditors of the Corporation) and, shall be conclusive and binding upon all parties in interest.

4.9  **<u>Notice of Special Matters and Holder not a shareholder</u>** 

The Corporation covenants with the Holders, and each of them, that at any time prior to the Time of Expiry that the Indebtedness remains outstanding, it will give notice to the Holder of its intention:

(a) To declare any stock dividend on any shares;

(b) To distribute to all holders of shares any securities or assets (other than cash dividends),and, in each notice shall specify the record date or, if none, the effective date for such dividend or distribution, provided that the Corporation shall only be required to specify in such notice particulars of such action as shall have been fixed and determined on the date on which such notice is given. <u>Such notice shall be given not less than thirty (30) days in each case prior to such applicable record date or effective date.</u>

The holding of a Debenture will not constitute the holder thereof a shareholder of the Corporation, nor entitle him to any rights or interest in respect thereof except as in the Debenture expressly provided.

5.  **<u>Satisfaction and Discharge</u>** 

5.1 <u>Cancellation and Destruction</u> 

Upon the earlier of the payment by the Corporation of all of the Principal Amount and Interest due on the Debentures or the conversion of the Indebtedness into Shares, the Holder shall deliver the Debenture to the Corporation and the Debenture shall be cancelled and destroyed by the Corporation.

5.2 <u>Non-Presentation of Debentures</u> 

If the Holder of any Debenture shall fail to present the same for payment on the date on which the Principal Amount and Interest becomes payable, either on the Maturity Date or otherwise, or shall not accept payment on account thereof and give such receipt therefor (if any) as the Corporation may require, the Corporation shall be entitled to set aside the Principal Amount and Interest in trust to be paid to the Holder of such Debenture upon due presentation and surrender thereof in accordance with the provisions of this Debenture; and thereupon the Principal Amount and Interest payable on or represented by each Debenture in respect whereof such moneys have been set aside shall be deemed to have been paid and thereafter such Debentures shall not be considered as outstanding and the Holders thereof shall thereafter have no right in respect thereof except that of receiving payment of the moneys so set aside by the Corporation (without interest thereon).

5.3 <u>Repayment of Unclaimed Moneys</u> 

Any moneys set aside under section 5.2 and not claimed by and paid to Holders of Debentures within six years after the date of such setting aside shall, subject to applicable law, be repaid to the Corporation and thereafter the Holders of the Debentures in respect of which such moneys were so paid to the Corporation shall have no rights in respect thereof except to obtain payment of such moneys without interest thereon from the Corporation.

5.4 <u>Discharge</u> 

Upon the payment by the Corporation of all of the Principal Amount and Interest due on the Debentures or upon the conversion of the Indebtedness into Shares, the Holder shall, at the request of the Corporation, execute and deliver to the Corporation such deeds or other instruments as shall be necessary to evidence the satisfaction and discharge of the Debentures and to release the Corporation from its covenants contained herein.

6. **<u>Lock-Up.</u>** For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Holder agrees that, during the period beginning from the date of conversion of this Debenture and continuing to and including the date 180 days after the date of the final prospectus with respect to a public offering of the Company's Common Stock which results in the Company listing on a United States national securities exchange, the Holder will not offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of Common Stock of the Company, or any options or warrants to purchase any shares of Common Stock of the Company, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock of the Company, whether now owned or hereinafter acquired, owned directly by the Holder (including holding as a custodian) or with respect to which the Holder has beneficial ownership within the rules and regulations of the SEC (collectively, the "**Lock-Up Shares**"). The foregoing restriction is expressly agreed to preclude the Holder from engaging in any hedging or other transaction that is designed to or that reasonably could be expected to lead to or result in a sale or disposition of the Lock-Up Shares even if such Lock-Up Shares would be disposed of by someone other than the Holder. Such prohibited hedging or other transactions would include without limitation any short sale or any purchase, sale or grant of any right (including without limitation any put or call option) with respect to any of the Lock-Up Shares or with respect to any security that includes, relates to, or derives any significant part of its value from such Lock-Up Shares.

**APPENDIX "I"**

**CONVERSION NOTICE**

TO: DIRECT COMMUNICATION SOLUTIONS, INC. (the "Corporation")

11021 Via Frontera, Suite C

San Diego, CA. 92127

Attention: Mr. Chris Bursey

(1) The undersigned holder of the Convertible Debenture hereby converts $_____________, which represents, in whole or any part, the Indebtedness currently outstanding under the Convertible Debenture, into shares of capital stock of the Corporation (the "**Shares**") at a conversion price at **US$6.00 (CDN$8.13)** per share of common stock. The Debentures have a maturity date of the 1<sup>st</sup> anniversary of the closing date and bear an interest rate of 15% per annum, not payable in advance.

(2) The undersigned hereby irrevocably directs that the said Shares be issued and delivered to the undersigned as follows:

---

| | | |
|:---|:---|:---|
|  | **Address** |  |
| **Name in Full** | **(Include Postal Code)** | **Number of Shares** |

---

\* Certificates representing Shares will not be registered or delivered to an address in the United States unless Box B or C below is checked.

(3) The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ☐ The
 undersigned holder (i) at the time of conversion of amounts outstanding under the Convertible
 Debenture is not in the United States, as defined in Regulation S under the United States *Securities Act of 1933*, as amended (the "**Securities Act** "), and
 (ii) is not converting amounts outstanding under the Convertible Debenture on behalf of a
 person in the United States; and (iii) did not execute or deliver this Exercise Notice in
 the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ☐ The
 holder is a U.S. Accredited Investor and is converting amounts outstanding under the Convertible
 Debenture on its own behalf and not for the account or benefit of any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. ☐ The
 undersigned holder has delivered to the Corporation an opinion of counsel (which will not
 be sufficient unless it is satisfactory to the Corporation) to the effect that an exemption
 from the registration requirements of the Securities Act and applicable state securities
 laws is available.

The undersigned holder understands that even if Box A or B above is checked, the certificate representing the Shares will bear a legend restricting transfer until it can be established to the satisfaction of the Corporation that a transfer can be made without registration under the Securities Act.

The undersigned holder understands that the Convertible Debenture may not be converted into Shares by a holder in the United States and no Shares shall be issued to a holder in the United States unless the Shares are registered under the Securities Act and the securities laws of any applicable state or an exemption from such registration requirements is available.

If Box C is checked, any opinion tendered must be satisfactory to the Corporation. Holders planning to deliver an opinion of counsel in connection with the conversion of the Convertible Debenture should contact the Corporation in advance to determine whether any opinions to be tendered will be acceptable to the Corporation.

The undersigned holder understands that the Shares must not be issued to a person other than the undersigned holder. Terms not defined herein shall have the same meanings ascribed to them in the Convertible Debenture.

This Conversion Notice may be executed manually or digitally and may be delivered electronically or by facsimile transmission.

DATED this<u> </u>of<u> </u>,<u> </u> .

---

| | |
|:---|:---|
| Signature witnessed by: | Signature of Subscriber\* |
|  | Name of Subscriber |
|  | Address of Subscriber (include postal code) |

---

\* This signature must correspond exactly with the name appearing on the registration panel.

**THE RIGHT TO CONVERT, IN WHOLE OR ANY PART, THE INDEBTEDNESS THEN OUTSTANDING UNDER THE CONVERTIBLE DEBENTURE EXPIRES ON THE DATE THAT IS ONE YEAR FROM THE DATE OF ISSUANCE OF THE CONVERTIBLE DEBENTURE, IN ACCORDANCE WITH THE TERMS OF THE CONVERTIBLE DEBENTURE.**

## Exhibit 4.3

**Exhibit 4.3**

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE FEBRUARY 11, 2025."**

**"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A PERSON IN THE UNITED STATES UNLESS THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LAW OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" IS AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."**

**WARRANT NO.: 2024** **[ ]** 

**THIS WARRANT IS NON-TRANSFERABLE AND WILL BE VOID AND OF NO VALUE UNLESS<br> EXERCISED WITHIN THE LIMITS HEREIN PROVIDED**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

(a Delaware Company)

**[ ] Warrants (each, a "Warrant") for**

**the purchase of up to** **[ ] shares of common stock (each, a "Common Share")**

THIS IS TO CERTIFY THAT, for value received **[ ]** of **[ ]** (the "**Holder**") is entitled to subscribe for and purchase the number shown above of fully paid and non-assessable Common Shares (the "**Warrant Shares**") of Direct Communication Solutions, Inc. (the "**Company**"). Each Warrant is exercisable until **October 10, 2026** for the purchase of one (1) Warrant Share of the Company at the price of **CDN$3.20 (US$2.36)** (each, a "**Warrant Share**").

The rights represented by this Warrant may be exercised by the Holder, in whole or in part (but not as to a fractional Warrant Share), by surrender of this Warrant at the office of the Company's Registered Office at 17150 Via Del Campo, Ste C, San Diego, CA 92127 USA or 3664 Kingsway, Suite 300, Vancouver, BC V5R 5W2, during its normal business hours, together with the subscription form (the "**Subscription Form**") attached hereto completed and signed by the Holder and a certified cheque or bank draft, in Canadian funds, payable to the Company in payment of the amount equal to the purchase price for the number of Warrant Shares subscribed for (the "**Exercise Price**"). Upon the exercise of the rights represented by this Warrant and payment of the Exercise Price in accordance with the terms hereof, the Warrant Shares for which the Holder has subscribed and purchased shall be deemed to have been issued and the Holder shall be deemed to have become the holder of record of such shares on the date of such exercise and payment.

In the event of any exercise of the rights represented by this Warrant, certificates for the Warrant Shares so purchased shall be delivered to the Holder at the address set forth on the Subscription Form within a reasonable time, not exceeding 3 business days after the rights represented by this Warrant have been duly exercised and, unless this Warrant has expired, a new Warrant representing the number of Warrant Shares, if any, with respect to which this Warrant has not been exercised shall also be issued to the Holder within such time.

The Company covenants and agrees that, providing payment of the Exercise Price is made in accordance with the terms hereof, the Warrant Shares which will be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be fully paid and non-assessable and free of all liens, charges and encumbrances; Provided that if this Warrant is endorsed with a hold period legend, and Warrant Shares are issued prior to the date in such legend, the certificate issued for the said Warrant Shares will be impressed with the same legend. The Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved, a sufficient number of Common Shares to provide for the exercise of the rights represented by this Warrant.

**THE FOLLOWING ARE THE TERMS AND CONDITIONS<br> REFERRED TO IN THIS WARRANT**

1. In case the Company shall at any time subdivide its outstanding Common Shares into a greater number of shares, the Exercise Price shall be proportionately reduced and the number of subdivided Warrant Shares entitled to be purchased proportionately increased, and conversely, in case the outstanding Common Shares of the Company shall be consolidated into a smaller number of shares, the Exercise Price shall be proportionately increased and the number of consolidated Warrant Shares entitled to be purchased hereunder shall be proportionately decreased.

2. If any capital reorganization or reclassification of the capital stock of the Company, or the merger, amalgamation or arrangement of the Company with another corporation shall be effected, then as a condition of such reorganization, reclassification, merger, amalgamation or arrangement, adequate provision shall be made whereby the holder hereof shall have the right to purchase and receive upon the basis and upon the terms and conditions specified in this Warrant and in lieu of the Warrant Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock, or other securities as may be issued with respect to or in exchange for such number of outstanding Common Shares of the Company equal to the number of Warrant Shares purchasable and receivable upon the exercise of this Warrant had such reorganization, reclassification, merger, amalgamation or arrangement not taken place. The Company shall not effect any merger, amalgamation or arrangement unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company) resulting from such merger, amalgamation or arrangement assumes by written instrument executed and mailed or delivered to the holder of this Warrant the obligation to deliver to such holder such shares of stock or securities in accordance with the foregoing provisions as such holder may be entitled to purchase.

3. In case at any time while this Warrant is outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall pay any dividend payable in stock upon its Common Shares or
make any distribution to the holders of its Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company shall offer for subscription pro rata to the holders of its Common
Shares any additional shares of stock of any class or other rights;

&nbsp;&nbsp;&nbsp;&nbsp;(c) there shall be any subdivision, consolidation, capital reorganization, or reclassification
of the capital stock of the Company, or merger, amalgamation or arrangement of the Company with, or sale of all or substantially all of
its assets to, another corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;(d) there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then, and in any one or more of such cases, the Company shall give to the Holder, at least twenty days' prior notice of the date on which the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription rights, or for determining rights to vote with respect to such subdivision, consolidation, reorganization, reclassification, merger, amalgamation, arrangement, dissolution, liquidation or winding-up and in the case of any such subdivision, consolidation, reorganization, reclassification, merger, amalgamation, arrangement, sale, dissolution, liquidation or winding-up, at least twenty days' prior notice of the date when the same shall take place. Such notice shall also specify, in the case of any such dividend, distribution or subscription rights, the date on which the holders of Common Shares of the Company shall be entitled thereto, and such notice shall also specify the date on which the holders of Common Shares of the Company shall be entitled to exchange their Common Shares for securities or other property deliverable upon such subdivision, consolidation, reorganization, reclassification, merger, amalgamation, arrangement, sale, dissolution, liquidation or winding-up as the case may be.

4. As used herein, the term "Common Shares" shall mean and include the Company's presently authorized shares of common stock and shall also include any capital stock of any class of the Company hereafter authorized which shall not be limited to a fixed sum or percentage in respect of the rights of the holders thereof to participate in dividends and in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding-up of the Company.

5. This Warrant shall not entitle the Holder to any rights as a shareholder of the Company, including without limitation, voting rights, except that the Company shall concurrently furnish to the Holder a copy of all notices which are furnished to holders of the Common Shares.

6. This Warrant and all rights hereunder are non-transferable.

7. This Warrant is exchangeable upon its surrender by the Holder at an office of the Company for new Warrants of like tenor representing in the aggregate the right to subscribe for and purchase the number of Warrant Shares which may be subscribed for and purchased hereunder, each of such new Warrants to represent the right to subscribe for and purchase such number of Warrant Shares as shall be designated by the Holder at the time of such surrender.

8. Any notice or other communication required to be given by the Company under this Warrant, whether to the Holder or otherwise, shall be in writing delivered to the Holder's address as indicated previously.

Any notice or other communication so given shall be deemed to have been given and received when delivered, if delivered, and upon transmission, if faxed, and if the date of such transmission is not a business day, on the next ensuing business day.

9. Time is of the essence hereof.

10. This Warrant shall be governed by and construed in accordance with the laws of the State of Delaware, U.S.A.

DIRECT COMMUNICATION SOLUTIONS, INC., intending to be contractually bound, has caused this Warrant to be signed by its duly authorized officer, and this Warrant to be dated **October 10, 2024**.

**DIRECT COMMUNICATION SOLUTIONS, INC.**

---

| | |
|:---|:---|
| By: | /s/ Chris Bursey |
| ***Per:*** | ***Authorized Signatory*** |
|  | Chris Bursey CEO |

---

**EXERCISE FORM**

TO: Direct Communication Solutions, Inc.

17150 Via Del Campo, Ste C <br> San Diego, CA 92127<br> Attention: Konstantin Lichtenwald, CFO

(1) The undersigned holder of the within Warrant Certificate
hereby subscribes for ________________ shares ()"**Shares**") of the Company (or such number of Shares or other securities
or property to which such subscription entitles him or her in lieu thereof or in addition thereto under the provisions of the Warrant
Terms and Conditions mentioned in the attached Warrant Certificate) at the price determined under, and on the terms specified in, the
Warrant Certificate and Warrant Terms and Conditions and encloses herewith a bank draft, certified cheque or money order payable at par
to or to the order of the Company in payment therefor.

(2) The undersigned hereby irrevocably directs that the said
Shares be issued and delivered as follows. **[Notice to Holders: Shares to be held through a Registered Retirement Savings Plan should be sent directly to the trustee of the plan directly from the Company or such shares will not qualify for inclusion in such a plan.]** 

---

| | | |
|:---|:---|:---|
|  | **Address(es)\*** |  |
| **Name(s) in Full** | **(Include Postal Code)** | **Number(s) of Shares** |

---

\* Certificates representing Shares will not be registered or delivered to an address in the United States unless Box B or C below is checked.

(3) The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

&nbsp;&nbsp;&nbsp;&nbsp;A. ☐ The undersigned holder (i) at the time of exercise of this Warrant is
 not in the United States, as defined in Regulation S under the United States *Securities Act of 1933*, as amended (the
 "Securities Act"), and (ii) is not exercising this Warrant on behalf of a person in the United States; and (iii) did not
 execute or deliver this Exercise Form in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;B. ☐ The holder is a U.S. Purchaser that is an Accredited Investor and is
 exercising the Warrants on its own behalf and not for the account or benefit of any other person.

&nbsp;&nbsp;&nbsp;&nbsp;C. ☐ The undersigned holder has delivered to the Company an opinion of
 counsel (which will not be sufficient unless it is satisfactory to the Company) to the effect that an exemption from the
 registration requirements of the Securities Act and applicable state securities laws is available.

The undersigned holder understands that unless Box A above is checked, the certificate representing the Shares will bear a legend restricting transfer without registration under the Securities Act and applicable state securities laws unless an exemption from registration is available.

The undersigned holder understands that even if Box B above is checked, this Warrant may not be exercised by a holder in the United States and no Shares shall be issued to a holder in the United States unless the Shares are registered under the Securities Act and the securities laws of all applicable states of the United States or an exemption from such registration requirements is available.

If Box C is checked, any opinion tendered must be satisfactory to the Company and the Transfer Agent. Holders planning to deliver an opinion of counsel in connection with the exercise of Warrants should contact the Company in advance to determine whether any opinions to be tendered will be acceptable to the Company.

The undersigned holder understands that if the Shares are to be issued to a person or persons other than the undersigned holder, then the undersigned holder must provide signed documentation authorizing the issuance of the Shares to a person or persons other than the undersigned holder and the signature of the undersigned holder must be signature guaranteed by a Chartered bank or medallion guaranteed by a member of a recognized medallion guarantee program.

(Please print full name in which Share certificates are to be issued. If any Shares are to be issued to a person or persons other than the Warrantholder, the Warrantholder must pay to the Transfer Agent all eligible transfer taxes or other government charges.)

Terms not defined herein shall have the same meanings ascribed to them in the Warrant Certificate and the Warrant Terms and Conditions.

DATED this ______________ of ___________________________, ______________.

---

| | |
|:---|:---|
| Signature Guaranteed by: | Signature of Subscriber\* |
|  | Name of Subscriber |
|  | Address of Subscriber (include postal code) |

---

\* This signature must correspond exactly with the name appearing on the registration panel.

☐ Please check box if the Share certificates are to be delivered at the office where this Warrant Certificate is surrendered, failing which the certificates will be mailed.

**THE RIGHT TO PURCHASE SHARES UNDER THIS WARRANT EXPIRES AT THE CLOSE OF BUSINESS VANCOUVER TIME AT THE PLACE OF EXERCISE ON OCTOBER 10, 2026, IN ACCORDANCE WITH THE TERMS OF THIS WARRANT.**

## Exhibit 4.4

**Exhibit 4.4**

**SECURITIES FOR DEBT AMENDMENT AGREEMENT**

**THIS AGREEMENT** is dated effective October 9, 2025.

BETWEEN:

**DIRECT COMMUNICATION SOLUTIONS, INC.,** a body corporate duly incorporated under the laws of the State of Delaware, and having its head office located at 11021 Via Frontera, Suite C, San Diego, CA 92127

(the "**Company**")

AND:

**[ ]**, located at [ ]

(the "**Creditor**")

**WHEREAS** the Company in 2024 settled certain indebtedness owing to the Creditor related to the 2022 original debenture convertible debenture issued by the Company to the Creditor. Specifically, the Creditor and the Company had agreed for the Company to grant a new non-transferable convertible unsecured debenture (the "**Debenture**") and share purchase warrants (the "**Warrants**") as full and final repayment of the debt owing to the Creditor under such original debenture convertible debenture. The new Debenture has a maturity date of **[ ], 2025** bearing an interest rate of **15% per annum**, not payable in advance and the principal and interest may be converted in part or in whole up to and including the maturity date into one (1) share of common stock of the Company at **US$6.00 (CDN$8.13)** of indebtedness per share of common stock. The issued the Warrants on the basis of **one-half (1/2) of one (1) whole** share purchase warrant for each **CDN$6.00 (US$4.42)** of the Debt, where each Warrant may be exercised for a period of two (2) years from the date of grant for the purchase of one (1) share of common stock of the Company (each, a "**Warrant Share**") at **CDN$3.20 (US$2.36)** per Warrant Share;

**AND WHEREAS** the Company wishes to extend the maturity date from [ ], 2025 to October 10, 2026 under this Agreement.

**NOW THEREFORE THIS AGREEMENT WITNESSES** that in consideration that in consideration of the sum of US$1.00 paid by each of the parties hereto to the other, the receipt of which is hereby acknowledged, and the premises and mutual covenants hereinafter contained, the parties hereto agree as follows:

1. The maturity date of the Debentures are hereby deemed to be amended from [ ], 2025 to October 10,
2026. The Company shall issue amended and restated Debenture certificates reflecting the amendment of such maturity date which shall be
deemed to have irrevocably replaced the Debenture certificates issued in 2024 in their entirety that are null and void by operation of
this Agreement.

2. Section 2.5 of the Debentures which states "The Corporation may not make prepayment unless approved
by the holders of a majority of the Principal Amount of the Debentures." is hereby amended to state "The Corporation at its
discretion may make prepayment on the Principal Amount and any Interest accrued and owing at any time without penalty or any other fee."

3. This Agreement will be governed by and be construed in accordance with the laws of British Columbia. This
Agreement will be binding upon and enure to the benefit of the parties hereto and their respective heirs and executors and successors
and assigns as the case may be. This Agreement may not be assigned without the prior written consent of the other party. This Agreement
constitutes the entire agreement between the parties and supersedes all prior letters of intent, agreements, representations, warranties,
statements, promises, information, arrangements and understandings, whether oral or written, express or implied. The recitals and any
schedules form a part of and are incorporated by reference into this Agreement. No modification or amendment to this Agreement may be
made unless agreed to by the parties thereto in writing. In the event any provision of this Agreement will be deemed invalid or void,
in whole or in part, by any court of competent jurisdiction, the remaining terms and provisions will remain in full force and effect.
Time is of the essence.

4. This Agreement may be executed in any number of counterparts with the same effect as if all parties to
this Agreement had signed the same document and all counterparts will be construed together and will constitute one and the same instrument
and any facsimile signature shall be taken as an original.

**IN WITNESS WHEREOF** the parties hereto have duly executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| by its authorized signatory: | by its authorized signatory: |
| Name: | Bill Espley |
| **[ ]** | **[ ]** |
| by its authorized signatory: | by its authorized signatory: |
| Name: | |

---

## Exhibit 10.1

**Exhibit 10.1**

**<u>Proposed 2023 Omnibus Stock Incentive Plan</u>**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**2023 omnibus STOCK INCENTIVE PLAN**

**Approved by the Board:**

**Approved by the Stockholders:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purposes of the Plan</u>. The purposes of this Plan are to attract and retain the best available personnel; to provide additional incentives to Employees, Directors and Consultants to contribute to the successful performance of the Company and any Subsidiary of the Company; to promote the growth of the market value of the Company's common stock; to align the interests of Grantees with those of the Company's stockholders; and to promote the success of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Definitions</u>. The following definitions shall apply as used herein and in all individual Award Agreements except as a term may be otherwise defined in an individual Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supersede the definition contained in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) "***Administrator***" means the Plan Administrator as described in Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Applicable Laws***" means the legal requirements relating to the Plan and the Awards under applicable provisions of federal and state securities laws, the corporate laws of Delaware, and, to the extent other than Delaware, the corporate law of the state of the Company's incorporation, the Code, the rules of any applicable stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Assumed***" means that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection with the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least preserves the compensation element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing the agreement to assume the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Award***" means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit, or other right or benefit under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Award Agreement***" means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) "***Board***" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Cause***" means, with respect to the termination by the Company or a Related Entity of a Grantee's Continuous Service:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that such termination is for "Cause" as such term (or word of like import) is expressly defined in a then-effective written employment agreement, consulting agreement, service agreement or other similar agreement between the Grantee and the Company or such Related Entity, provided, however, that with regard to any agreement that defines "Cause" on the occurrence of or in connection with a Corporate Transaction, such definition of "Cause" shall not apply until a Corporate Transaction actually occurs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator: (A) the Grantee's performance of any act, or failure to perform any act, in bad faith and to the detriment of the Company or a Related Entity; (B) the Grantee's dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; (C) the Grantee's material breach of any noncompetition, confidentiality or similar agreement with the Company or a Related Entity, as determined under such agreement; (D) the Grantee's commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person; (E) if the Grantee is an Employee or Consultant, the Grantee's engaging in acts or omissions constituting gross negligence, misconduct or a willful violation of a Company or a Related Entity policy which is or is reasonably expected to be materially injurious to the Company and/or a Related Entity; or (F) if the Grantee is an Employee, the grantee's failure to follow the reasonable instructions of the Board or such grantee's direct supervisor, which failure, if curable, is not cured within ten (10) days after notice to such grantee or, if cured, recurs within one hundred eighty (180) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) "***Code***" means the Internal Revenue Code of 1986, as amended, or any successor statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Committee***" means any committee composed of members of the Board appointed by the Board to administer the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***common stock***" means the Company's voting common stock, par value $0.001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Company***" means Direct Communication Solutions, Inc., a Delaware corporation, or any successor entity that adopts the Plan in connection with a Corporate Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Consultant***" means any person (other than an Employee or a Director, solely with respect to rendering services in such person's capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Continuous Service***" means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an Employee, Director or Consultant can be effective under Applicable Laws. A Grantee's Continuous Service shall be deemed to have terminated either upon an actual termination of Continuous Service or upon the entity for which the Grantee provides services ceasing to be a Related Entity. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence for purposes of this Plan shall include sick leave, military leave, or any other authorized personal leave, so long as the Company or Related Entity has a reasonable expectation that the individual will return to provide services for the Company or Related Entity, and provided further that the leave does not exceed six (6) months, unless the individual has a statutory or contractual right to re-employment following a longer leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds three (3) months, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option beginning on the day three (3) months and one (1) day following the expiration of such three (3) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Corporate Transaction***" means any of the following transactions, provided, however, that the Administrator shall determine under parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the sale, transfer or other disposition of all or substantially all of the assets of the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) the complete liquidation or dissolution of the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the Shares outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Covered Employee***" means an Employee who is a "covered employee" under Section 162(m)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (p) "***Data***" has the meaning set forth in Section 22 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (q) "***Director***" means a member of the Board or the board of directors of any Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "***Disability***" means a "disability" (or word of like import) as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not have a long-term disability plan in place, "Disability" means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "***Disqualifying Disposition***" means any disposition (including any sale) of common stock received upon exercise of an Incentive Stock Option before either (i) two years after the date the Employee was granted the Incentive Stock Option, or (ii) one year after the date the Employee acquired common stock by exercising the Incentive Stock Option. If the Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "***Dividend Equivalent Right***" means a right entitling the Grantee to compensation measured by dividends paid with respect to common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "***Employee***" means any person, including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. The payment of a director's fee by the Company or a Related Entity shall not be sufficient to make such person an "Employee" of the Company or a Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) "***Exchange Act***" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (w) "***Fair Market Value***" means, as of any date, the value of the common stock determined as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the common stock is listed on one or more established stock exchanges or national market systems, including without limitation The NASDAQ Global Select Market, The NASDAQ Global Market, or The NASDAQ Capital Market of the NASDAQ Stock Market LLC, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the common stock is listed (as determined by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the common stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid and low asked prices for the common stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the absence of an established market for the common stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith by application of a reasonable valuation method consistently applied and taking into consideration all available information material to the value of the Company in a manner in compliance with Section 409A of the Code, or in the case of an Incentive Stock Option, in a manner in compliance with Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "***Grantee***" means an Employee, Director or Consultant who receives an Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "***Incentive Stock Option***" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "***Non-Qualified Stock Option***" means an Option not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "***Officer***" means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "***Option***" means an option to purchase Shares pursuant to an Award Agreement granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "***Parent***" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "***Performance-Based Compensation***" means any Award that the Administrator grants pursuant to Section 6(d) of the Plan that is intended to qualify as "performance-based compensation" under Section 162(m) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "***Performance Period***" means the time period during which specified performance criteria and/or continued status as an Employee must be met as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "***Plan***" means this Direct Communication Solutions, Inc. 2023 Omnibus Stock Incentive Plan, as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "***Post-Termination Exercise Period***" means the period specified in the Award Agreement of not less than thirty (30) days commencing on the date of termination (other than termination by the Company or any Related Entity for Cause) of the Grantee's Continuous Service, or such longer period as may be applicable upon death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "***Related Entity***" means any Parent or Subsidiary of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "***Restricted Stock***" means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "***Restricted Stock Units***" means an Award which may be earned in whole or in part upon the passage of time or the attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator.

thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "***Rule 16b-3***" means Rule 16b-3 promulgated under the Exchange Act or any successor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "***SAR***" means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of common stock. (mm) "***Share***" means a share of the common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "***Subsidiary***" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "***Tax Obligations***" means all income tax, social insurance, payroll tax, fringe benefits tax, or other tax-related liabilities related to a Grantee's participation in the Plan and the receipt of any benefits hereunder, as determined under the Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. <u>Stock Subject to the Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to adjustment as described in Section 13 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is 1,000,000 Shares. The Shares may be authorized, but unissued, or reacquired common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Shares covered by an Award (or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan, except that the maximum aggregate number of Shares which may be issued pursuant to the exercise of Incentive Stock Options shall not exceed the number specified in Section 3(a). Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited or repurchased by the Company, such Shares shall become available for future grant under the Plan. In the event any Option or other Award granted under the Plan is exercised through the tendering of Shares (either actually or through attestation), or in the event tax withholding obligations are satisfied by tendering or withholding Shares, any Shares so tendered or withheld shall not again be available for awards under the Plan. To the extent that cash in lieu of Shares is delivered upon the exercise of an SAR pursuant to Section 6(m), the Company shall be deemed, for purposes of applying the limitation on the number of shares, to have issued the greater of the number of Shares which it was entitled to issue upon such exercise or on the exercise of any related Option. Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Options shall not be available for awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Administration of the Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>Plan Administrator</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Administration with Respect to Directors and Officers</u>. With respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Administration With Respect to Consultants and Other Employees</u>. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Administration With Respect to Covered Employees</u>. Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more non-Employee Directors who are eligible under the provisions of Section 162(m) of the Code to serve on a committee making Awards qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the "Administrator" or to a "Committee" shall be deemed to be references to such Committee or subcommittee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Multiple Administrative Bodies</u>. The Plan may be administered by different bodies with respect to Directors, Officers, Consultants, and Employees who are neither Directors nor Officers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Powers of the Administrator</u>. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) to determine whether and to what extent Awards are granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) to approve forms of Award Agreements for use under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to determine the type, terms and conditions of any Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable non-U.S. jurisdictions and to afford Grantees favorable treatment under such rules or laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the provisions of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would adversely affect the Grantee's rights under an outstanding Award shall not be made without the Grantee's written consent; provided, however, that an amendment or modification that may cause an Incentive Stock Option to become a Non-Qualified Stock Option shall not be treated as adversely affecting the rights of the Grantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ix) to institute an option exchange program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x) to make other determinations as provided in this Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

The express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator; provided that the Administrator may not exercise any right or power reserved to the Board. Any decision made, or action taken, by the Administrator or in connection with the administration of this Plan shall be final, conclusive and binding on all persons having an interest in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. In addition to such other rights of indemnification as they may have as members of the Board or as Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator or the Company is delegated shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in relation to such liabilities, costs, and expenses as may arise out of, or result from, the bad faith, gross negligence, willful misconduct, or criminal acts of such persons; provided, however, that within thirty (30) days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company's expense to defend the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Eligibility</u>. Awards other than Incentive Stock Options may be granted to Employees, Directors, and Consultants of the Company and any Related Entity. Incentive Stock Options may be granted only to Employees of the Company or a Related Entity. An Employee, Director, or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees, Directors, or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. <u>Terms and Conditions of Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Types of Awards</u>. The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) cash or (iii) an Option, an SAR, or similar right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units, and Dividend Equivalent Rights. An Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Designation of Award</u>. Each Award shall be evidenced by an Award Agreement in form and substance satisfactory to the Administrator. The type of each Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non- Qualified Stock Option. However, notwithstanding such designation, an Option will qualify as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of the Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Related Entity). For purposes of this calculation, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the grant date of the relevant Option. Any Option granted which fails to satisfy the requirements of the Applicable Laws for treatment as an Incentive Stock Option shall be a Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conditions of Award</u>. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria that may be established by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Performance-Based Awards</u>. If the Administrator determines at the time an Award is granted to an Employee that the Employee is, or is likely to be, as of the end of the Company's tax year in which the Company would claim a tax deduction in connection with such Award, a Covered Employee, then the Administrator may include in the Award certain provisions so that the Award will qualify as Performance-Based Compensation. Awards intended to qualify as Performance-Based Compensation will be subject to the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Awards will be subject to the achievement of certain performance criteria as the Administrator may determine. The performance criteria established by the Administrator may be based on any one of, or combination of, the following criteria:

Net earnings or net income (before or after taxes);

Earnings per share;

Net sales growth;

Net operating profit;

Return measures (including, but not limited to, return on assets, capital, equity, or sales);

Cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow return on capital);

Cash flow per share;

Earnings before or after taxes, interest, depreciation, and/or amortization;

Gross or operating margins;

Productivity ratios;

Share price (including, but not limited to, growth measures and total stockholder return);

Expense targets or ratios;

Charge-off levels;

Improvement in or attainment of revenue levels;

Deposit growth;

Margins;

Operating efficiency;

Operating expenses;

Economic value added;

Improvement in or attainment of expense levels;

Improvement in or attainment of working capital levels;

Debt reduction;

Capital targets; and

Consummation of acquisitions, dispositions, projects or other specific events or transactions.

The Administrator may provide in any grant of an Award that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles or regulations, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) Extraordinary Items for the applicable Performance Period, (f) mergers, acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, any such inclusions or exclusions shall be prescribed in the grant in a form that meets the requirements of Code Section 162(m) for deductibility. For this purpose "Extraordinary Items" means extraordinary, unusual, and/or nonrecurring items of gain or loss as defined under United States generally accepted accounting principles.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Before the 90th day of the applicable Performance Period (or, if the Performance Period is less than one year, no later than the number of days which is equal to 25% of such Performance Period), the Administrator will determine the duration of the Performance Period, the performance criteria on which performance will be measured, and the amount and terms of payment/vesting upon achievement of such criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Following the completion of each Performance Period, the Administrator will certify in writing whether the applicable performance criteria have been achieved for the Awards for such Performance Period. A Grantee will be eligible to receive payment pursuant to an Award for a Performance Period only if the performance criteria for such Performance Period are achieved. In determining the amounts earned by a Grantee pursuant to an Award intended to qualify as Performance-Based Compensation, the Administrator will have the right to (A) reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Administrator may deem relevant to the assessment of individual or corporate performance for the Performance Period, (B) determine what actual Award, if any, will be paid in the event of a Corporate Transaction or in the event of a termination of employment following a Corporate Transaction prior to the end of the Performance Period, and (C) determine what actual Award, if any, will be paid in the event of a termination of employment other than as the result of a Grantee's death or Disability prior to a Corporate Transaction and prior to the end of the Performance Period to the extent an actual Award would have otherwise been achieved had the Grantee remained employed through the end of the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Payment of the Award to a Grantee shall be paid following the end of the Performance Period, or if later, the date on which any applicable contingency or restriction has ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Sections 6(d)(i) though 6(d)(iv) above are not required for an Award of Options or SARs. However, any of those provisions may be included in an Award of Options or SARs at the discretion of the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To the extent that the Administrator determines as of the date of grant of an Award that (A) the Award is intended to qualify as Performance-Based Compensation, and (B) the Award is not exempt from the application of Section 162(m) of the Code, such Award shall not be effective until any stockholder approval required under Section 162(m) of the Code has been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Acquisitions and Other Transactions</u>. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Deferral of Award Payment</u>. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Separate Programs</u>. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If the shares of common stock of the Company trade exclusively on the CSE, (i) no more than 5% of the issued shares of common stock may be issued to any one Eligible Person; and (ii) no more than 2% of the issued shares of common stock may be issued to all persons who undertake Investor Relations Activities, determined on the basis of the number of shares of common stock that are outstanding immediately prior to the issuance of shares of common stock in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Early Exercise</u>. An Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Term of Award</u>. The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Related Entity, the term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. Notwithstanding the foregoing, the specified term of any Award shall not include any period for which the Grantee has elected to defer the receipt of the Shares or cash issuable pursuant to the Award.

7 – OMNIBUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Transferability of Awards</u>. Unless the Administrator provides otherwise, no award may be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee's Award in the event of the Grantee's death on a beneficiary designation form provided by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Time of Granting Awards</u>. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such other later date as is determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Stock Appreciation Rights</u>. An SAR may be granted (i) with respect to any Option granted under this Plan, either concurrently with the grant of such Option or at such later time as determined by the Administrator (as to all or any portion of the Shares subject to the Option), or (ii) alone, without reference to any related Option. Each SAR granted by the Administrator under this Plan shall be subject to the following terms and conditions. Each SAR granted to any participant shall relate to such number of Shares as shall be determined by the Administrator, subject to adjustment as provided in Section 13. In the case of an SAR granted with respect to an Option, the number of Shares to which the SAR pertains shall be reduced in the same proportion that the holder of the Option exercises the related Option. The exercise price of an SAR will be determined by the Administrator at the date of grant but may not be less than 100% of the Fair Market Value of the Shares subject thereto on the date of grant. Subject to the right of the Administrator to deliver cash in lieu of Shares (which, as it pertains to Officers and Directors of the Company, shall comply with all requirements of the Exchange Act), the number of Shares which shall be issuable upon the exercise of an SAR shall be determined by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the number of Shares as to which the SAR is exercised multiplied by the amount of the appreciation in such Shares (for this purpose, the "appreciation" shall be the amount by which the Fair Market Value of the Shares subject to the SAR on the exercise date exceeds (1) in the case of an SAR related to an Option, the exercise price of the Shares under the Option or (2) in the case of an SAR granted alone, without reference to a related Option, an amount which shall be determined by the Administrator at the time of grant, subject to adjustment under Section 13); by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Fair Market Value of a Share on the exercise date. In lieu of issuing Shares upon the exercise of an SAR, the Administrator may elect to pay the holder of the SAR cash equal to the Fair Market Value on the exercise date of any or all of the Shares which would otherwise be issuable. No fractional Shares shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive a cash adjustment equal to the same fraction of the Fair Market Value of a Share on the exercise date or to purchase the portion necessary to make a whole share at its Fair Market Value on the date of exercise.

The exercise of an SAR related to an Option shall be permitted only to the extent that the Option is exercisable under Section 11 on the date of surrender. Any Incentive Stock Option surrendered pursuant to the provisions of this Section 6(m) shall be deemed to have been converted into a Non-Qualified Stock Option immediately prior to such surrender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Section 409A of the Code</u>. Notwithstanding anything to the contrary set forth herein, any Award that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Award will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Administrator and contained in the Award Agreement evidencing such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. <u>Award Exercise or Purchase Price, Consideration and Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Exercise or Purchase Price</u>. The exercise or purchase price, if any, for an Award shall be as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) In the case of an Incentive Stock Option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Related Entity, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) granted to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the case of a Non-Qualified Stock Option, the per Share exercise price shall be not less than one-hundred percent (100%) of the Fair Market Value per Share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the case of Awards intended to qualify as Performance-Based Compensation, the exercise or purchase price, if any, shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

8 – OMNIBUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the case of other Awards, such price as is determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(e), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consideration</u>. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award, including the method of payment, shall be determined by the Administrator. In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) delivery of Grantee's promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate (but only to the extent that the acceptance or terms of the promissory note would not violate an Applicable Law); provided, however, that interest shall compound at least annually and shall be charged at the minimum rate of interest necessary to avoid (A) the imputation of interest income to the Company and compensation income to the Grantee under any applicable provisions of the Code, and (B) the classification of the Award as a liability for financial accounting purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) with respect to Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a broker-dealer acceptable to the Company to effect the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates (or other evidence satisfactory to the Company to the extent that the Shares are uncertificated) for the purchased Shares directly to such broker-dealer in order to complete the sale transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with respect to Options, payment through a "net exercise" such that, without the payment of any funds, the Grantee may exercise the Option and receive the net number of Shares equal to (i) the number of Shares as to which the Option is being exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market Value per Share (on such date as is determined by the Administrator) less the Exercise Price per Share, and the denominator of which is such Fair Market Value per Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) past or future services actually or to be rendered to the Company or a Related Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (viii) any combination of the foregoing methods of payment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any other method approved by the Administrator. The Administrator may at any time or from time to time, by adoption of or by amendment to the standard forms of Award Agreement described in Section 4(c)(iv), or by other means, grant Awards which do not permit all of the foregoing forms of consideration to be used in payment for the Shares or which otherwise restrict one or more forms of consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Notice to Company of Disqualifying Disposition</u>. Each Employee who receives an Incentive Stock Option must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any common stock acquired pursuant to the exercise of an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9. <u>Tax Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the delivery of any Shares or cash pursuant to an Award (or the exercise thereof), or at such other time as the Tax Obligations are due, the Company, in accordance with the Code and any Applicable Laws, shall have the power and the right to deduct or withhold, or require a Grantee to remit to the Company, an amount sufficient to satisfy all Tax Obligations. The Administrator may condition such delivery, payment, or other event pursuant to an Award on the payment by the Grantee of any such Tax Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrator, pursuant to such procedures as it may specify from time to time, may designate the method or methods by which a Grantee may satisfy the Tax Obligations. As determined by the Administrator from time to time, these methods may include one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) paying cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) electing to have the Company withhold cash or Shares deliverable to the Grantee having a Fair Market Value equal to the amount required to be withheld;

9 – OMNIBUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the minimum amount required to be withheld or remitted, provided the delivery of such Shares will not result in any adverse accounting consequences as the Administrator determines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) selling a sufficient number of Shares otherwise deliverable to the Grantee through such means as the Administrator may determine (whether through a broker or otherwise) equal to the Tax Obligations required to be withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) retaining from salary or other amounts payable to the Grantee cash having a sufficient value to satisfy the Tax Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any other means which the Administrator determines to both comply with Applicable Laws, and to be consistent with the purposes of the Plan.

The amount of Tax Obligations will be deemed to include any amount that the Administrator determines may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state, local and foreign marginal income tax rates applicable to the Grantee or the Company, as applicable, with respect to the Award on the date that the amount of tax or social insurance liability to be withheld or remitted is to be determined. The Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that the Tax Obligations are required to be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10. <u>Rights As a Stockholder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock</u>. Except as otherwise provided in any Award Agreement, a Grantee will not have any rights of a stockholder with respect to any of the Shares granted to the Grantee under an Award of Restricted Stock (including the right to vote or receive dividends and other distributions paid or made with respect thereto) nor shall cash dividends or dividend equivalents accrue or be paid in respect of any unvested Award of Restricted Stock, unless and until such Shares vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Awards</u>. In the case of Awards other than Restricted Stock, except as otherwise provided in any Award Agreement, a Grantee will not have any rights of a stockholder, nor will dividends or dividend equivalents accrue or be paid, with respect to any of the Shares granted pursuant to such Award until the Award is exercised or settled and the Shares are delivered (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11. <u>Exercise of Award</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>Procedure for Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and as specified in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been made, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise of Award Following Termination of Continuous Service</u>. In the event of termination of a Grantee's Continuous Service for any reason other than Disability or death, such Grantee may, but only during the Post-Termination Exercise Period (but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion of the Grantee's Award that was vested at the date of such termination or such other portion of the Grantee's Award as may be determined by the Administrator. The Grantee's Award Agreement may provide that upon the termination of the Grantee's Continuous Service for Cause, the Grantee's right to exercise the Award shall terminate concurrently with the termination of Grantee's Continuous Service. In the event of a Grantee's change of status from Employee to Consultant, an Employee's Incentive Stock Option shall convert automatically to a Non-Qualified Stock Option on the day three (3) months and one day following such change of status. To the extent that the Grantee's Award was unvested at the date of termination, or if the Grantee does not exercise the vested portion of the Grantee's Award within the Post-Termination Exercise Period, the Award shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability of Grantee</u>. In the event of termination of a Grantee's Continuous Service as a result of his or her Disability, such Grantee may, but only within twelve (12) months from the date of such termination (or such longer period as specified in the Award Agreement but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion of the Grantee's Award that was vested at the date of such termination; provided, however, that if such Disability is not a "disability" as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically convert to a Non-Qualified Stock Option on the day three (3) months and one day following such termination. To the extent that the Grantee's Award was unvested at the date of termination, or if Grantee does not exercise the vested portion of the Grantee's Award within the time specified herein, the Award shall terminate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death of Grantee</u>. In the event of a termination of the Grantee's Continuous Service as a result of his or her death, or in the event of the death of the Grantee during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee's termination of Continuous Service as a result of his or her Disability, the Grantee's estate or a person who acquired the right to exercise the Award by bequest or inheritance may exercise the portion of the Grantee's Award that was vested as of the date of termination, within twelve (12) months from the date of death (or such longer period as specified in the Award Agreement but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). To the extent that, at the time of death, the Grantee's Award was unvested, or if the Grantee's estate or a person who acquired the right to exercise the Award by bequest or inheritance does not exercise the vested portion of the Grantee's Award within the time specified herein, the Award shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Extension if Exercise Prevented by Law</u>. Notwithstanding the foregoing, if the exercise of an Award within the applicable time periods set forth in this Section 11 is prevented by the provisions of Section 12 below, the Award shall remain exercisable until one (1) month after the date the Grantee is notified by the Company that the Award is exercisable, but in any event no later than the expiration of the term of such Award as set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12. <u>Conditions Upon Issuance of Shares; Manner of Issuance of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time the Administrator determines that the delivery of Shares pursuant to the exercise, vesting or any other provision of an Award is or may be unlawful under Applicable Laws, the vesting or right to exercise an Award or to otherwise receive Shares pursuant to the terms of an Award shall be suspended until the Administrator determines that such delivery is lawful and shall be further subject to the approval of counsel for the Company with respect to such compliance. The Company shall have no obligation to effect any registration or qualification of the Shares under any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the Applicable Laws and any governing rules or regulations, the Company shall issue or cause to be issued the Shares acquired pursuant to an Award and shall deliver such Shares to or for the benefit of the Grantee by means of one or more of the following as determined by the Administrator: (i) by delivering to the Grantee evidence of book entry Shares credited to the account of the Grantee, (ii) by depositing such Shares for the benefit of the Grantee with any broker with which the Grantee has an account relationship, or (iii) by delivering such Shares to the Grantee in certificate form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No fractional Shares shall be issued pursuant to any Award under the Plan; any Grantee who would otherwise be entitled to receive a fraction of a Share upon exercise or vesting of an Award will receive from the Company cash in lieu of such fractional Shares in an amount equal to the Fair Market Value of such fractional Shares, as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Adjustments</u>. Subject to any required action by the stockholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued and outstanding Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued and outstanding Shares effected without receipt of consideration by the Company, or (iii) any other transaction with respect to the Company's common stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Administrator and its determination shall be final, binding and conclusive. Except as the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award. No adjustments shall be made for dividends paid in cash or in property other than common stock of the Company, nor shall cash dividends or dividend equivalents accrue or be paid in respect of unexercised Options or unvested Awards hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14. <u>Corporate Transactions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination of Award to Extent Not Assumed in Corporate Transaction</u>. Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed in connection with the Corporate Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Acceleration of Award Upon Corporate Transaction</u>. The Administrator shall have the authority, exercisable either in advance of any actual or anticipated Corporate Transaction or at the time of an actual Corporate Transaction, and exercisable at the time of the grant of an Award under the Plan or any time while an Award remains outstanding, to provide for the full or partial automatic vesting and exercisability of one or more outstanding unvested Awards under the Plan and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate Transaction on such terms and conditions as the Administrator may specify. The Administrator also shall have the authority to condition any such Award vesting and exercisability or release from such limitations upon the subsequent termination of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction. The Administrator may provide that any Awards so vested or released from such limitations in connection with a Corporate Transaction shall remain fully exercisable until the expiration or sooner termination of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of Acceleration on Incentive Stock Options</u>. Any Incentive Stock Option accelerated under this Section 14 in connection with a Corporate Transaction shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Effective Date and Term of Plan</u>. The Plan shall become effective at such time as it has been (a) approved by the Company's stockholders and (b) adopted by the Board. Stockholder approval shall be obtained in the degree and manner required under Applicable Laws. The Plan shall continue in effect for a term of ten (10) years unless sooner terminated. Any Award granted before stockholder approval is obtained will be rescinded if stockholder approval is not obtained within the time prescribed, and Shares issued on the grant or exercise of any such Award shall not be counted in determining whether stockholder approval is obtained. Subject to the preceding sentence and the Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16. <u>Amendment, Suspension or Termination of the Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may at any time amend, suspend or terminate the Plan in any respect, except that it may not, without the approval of the stockholders obtained within twelve (12) months before or after the Board adopts a resolution authorizing any of the following actions, do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase the total number of shares that may be issued under the Plan (except by adjustment pursuant to Section 13);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) modify the provisions of Section 6 regarding eligibility for grants of Incentive Stock Options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) modify the provisions of Section 7(a) regarding the exercise price at which shares may be offered pursuant to Options (except by adjustment pursuant to Section 13);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) extend the expiration date of the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) except as provided in Section 13 (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the Company may not amend an Award granted under the Plan to reduce its exercise price per share, cancel and regrant new Awards with lower prices per share than the original prices per share of the cancelled Awards, or cancel any Awards in exchange for cash or the grant of replacement Awards with an exercise price that is less than the exercise price of the original Awards, essentially having the effect of a repricing, without approval by the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Award may be granted during any suspension of the Plan or after termination of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No suspension or termination of the Plan shall adversely affect any rights under Awards already granted to a Grantee without his or her consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17. <u>Reservation of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>No Effect on Terms of Employment/Consulting Relationship</u>. The Plan shall not confer upon any Grantee any right with respect to the Grantee's Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or a Related Entity to terminate the Grantee's Continuous Service at any time, with or without Cause, and with or without notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way affected by its determination that the Grantee's Continuous Service has been terminated for Cause for the purposes of this Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>No Effect on Retirement and Other Benefit Plans</u>. Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Information to Grantees</u>. The Company shall provide to each Grantee, during the period for which such Grantee has one or more Awards outstanding, such information as required by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Electronic Delivery</u>. The Administrator may decide to deliver any documents related to any Award granted under the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company or to request a Grantee's consent to participate in the Plan by electronic means. By accepting an Award, each Grantee consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company, and such consent shall remain in effect throughout Grantee's Continuous Service with the Company and any Related Entity and thereafter until withdrawn in writing by Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Data Privacy</u>. The Administrator may decide to collect, use and transfer, in electronic or other form, personal data as described in this Plan or any Award for the exclusive purpose of implementing, administering and managing participation in the Plan. By accepting an Award, each Grantee acknowledges that the Company holds certain personal information about Grantee, including, but not limited to, name, home address and telephone number, date of birth, social security number or other identification number, salary, nationality, job title, details of all Awards awarded, cancelled, exercised, vested or unvested, for the purpose of implementing, administering and managing the Plan (the "***Data***"). Each Grantee further acknowledges that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan and that these third parties may be located in jurisdictions that may have different data privacy laws and protections, and Grantee authorizes such third parties to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the recipient or the Company may elect to deposit any Shares acquired upon any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Compliance with Section 409A</u>. To the extent that the Administrator determines that any Award granted hereunder is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the effective date of the Plan. Notwithstanding any provision of the Plan to the contrary, in the event that following the effective date of the Plan the Administrator determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the effective date of the Plan), the Administrator may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (1) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (2) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Unfunded Obligation</u>. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee's creditors in any assets of the Company or a Related Entity. The Grantees shall have no claim against the Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Construction</u>. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

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## Exhibit 10.2

**Exhibit 10.2**

**<u>EMPLOYMENT AGREEMENT</u>**

THIS EMPLOYMENT AGREEMENT ("<u>Agreement</u>") is entered into as of September 30, 2019, and to be effective upon the listing of the Company's shares on the Canadian Securities Exchange (the "<u>Effective Date</u>") by and between Direct Communication Solutions, Inc., a Delaware corporation (the "<u>Company</u>") and David Scowby ("<u>Executive</u>").

WHEREAS, Executive currently serves as Chief Operating Officer of the Company;

WHEREAS, Executive and the Company desire to enter into this Agreement and to set forth the terms and conditions of Executive's continued employment with the Company.

NOW, THEREFORE, In consideration of the mutual covenants and obligations herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Engagement; Nature of Duties</u>**. Executive shall continue to be employed by the Company and will have the title of Chief Operating Officer of the Company. Executive shall perform such duties as may be assigned to Executive from time to time by the Company's Board of Directors (the "<u>Board</u>") (or committee thereof) or the Company's Chief Executive Officer (the "<u>CEO</u>"). The Executive shall devote the Executive's full time and attention to the Executive's duties hereunder; provided, however, that, with advance notice to the Board and subject to the Board's prior written consent, the Executive shall be permitted to participate (including as a board member) in civic, charitable and religious organizations during the Employment Period. The Executive agrees to abide by the rules, regulations, and personnel practices and policies of the Company, as adopted and amended from time to time by the Company. The Executive shall report to the CEO, currently Christopher Bursey, or the CEO's designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>At Will Employment</u>**. Executive's employment with the Company commenced on July 1, 2013 (the "<u>Original Effective Date</u>"). Executive's employment under this Agreement will become effective on the Effective Date and shall continue at will until terminated in accordance with the provisions of Section 5 (the "<u>Employment Period</u>"), subject to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Compensation and Benefits</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Base Salary</u>**. During the Employment Period, the Company shall pay to Executive a base compensation ("<u>Base Salary</u>") in the amount of One Hundred Eighty Two Thousand Five Hundred Dollars ($182,500) per annum, payable in periodic installments in accordance with the Company's customary payroll practices in effect from time to time. Executive's Base Salary shall be subject to all applicable withholdings and deductions. Executive's Base Salary shall be subject to review no less frequently than annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Bonus</u>**. During the Employment Period, Executive shall be eligible to participate in any executive bonus plan adopted by the Company (the "<u>Annual Bonus</u>"). The terms of such bonus plan and the payment of any bonuses to Executive shall be in the sole and absolute discretion of the CEO subject to board ratification. Any Annual Bonus paid to the Executive shall be paid no later than March 15 of the year following the end of the calendar year to which with Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Expense Reimbursement</u>**. The Company shall reimburse Executive for any and all reasonable business expenses actually incurred by Executive in the performance of Executive's duties during the Employment Period, provided that such expenses are incurred in accordance with any policies or directives of the Company regarding reimbursement of business expenses now or hereafter adopted by the Company, and subject to Executive providing appropriate supporting documentation, reasonably acceptable to the 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;(d) **<u>Employee Benefits</u>**. During the Employment Period, Executive shall be permitted to participate in any regular health insurance and disability insurance programs maintained from time to time by the Company for the benefit of its senior-level executive employees generally, subject only to any eligibility or membership restrictions of such programs. Executive shall also have the right to participate in any and all benefit, retirement or insurance programs now or hereafter maintained by the Company for the benefit of its senior executive-level employees generally subject only to any eligibility or membership restrictions of such programs. Executive's tenure with the Company for purposes of determining eligibility, payments and benefit levels under any Company benefit and welfare plan shall be based on Executive's service date from the Original Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Other Benefits</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Equity Compensation</u>**. During the Employment Period, the Executive shall be eligible to participate in and receive equity grants under the Company's 2017 Stock Plan (or any successor plan thereto) from time to time, at the discretion of the Board (or an authorized committee thereof) and in accordance with the terms and conditions of such plans and as may be established by the Board with respect to any grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Indemnification and D&O Insurance</u>.** The Company shall indemnify the Executive and hold the Executive harmless to the fullest extent permitted by law against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including advancement of reasonable attorney's fees), losses, and damages resulting from the Executive's good faith performance of the Executive's duties and obligations with the Company. The Company shall cover the Executive under directors' and officers' liability insurance both during and, while potential liability exists, after the expiration of the Employment Period in the same amount and to the same extent as the Company covers its other officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Termination of the Employment Period</u>.** The employment of the Executive by the Company pursuant to this agreement shall terminate upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>By the Company for Cause</u>**. At the election of the Company, the Executive's employment may be terminated for Cause. For purposes of this Agreement, "<u>Cause</u>" means (i) the Executive's conviction of, or guilty plea to, a felony or a crime involving moral turpitude, (ii) the Executive's commission of any crime involving fraud or material dishonesty in connection with the Executive's employment by the Company, (iii) the Executive's willful failure to substantially perform the Executive's duties to the Company or a material breach of this Agreement, in each case after written notice to the Executive and the failure to cure within thirty (30) days thereafter (unless such act or omission, by its nature, may not be remedied or unless such act or omission arises in connection with Exhibit A to this Agreement), (iv) willful misconduct or gross negligence, or (v) breach of any code of conduct, code of ethics, securities trading policy or other material written policy of the 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;(b) **<u>Death or Disability</u>**. Upon the death of the Executive or written notice by the company to the Executive of termination of the Executive for Disability (as defined below) given while the Executive remains Disabled. For purposes of this Agreement, "<u>Disability</u>" means (i) the Executive has been incapacitated by mental or physical injury or illness so as to be prevented thereby from engaging the performance of the Executive's duties to the Company and (ii) such incapacity has continued for a period of one hundred eighty (180) consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>By the Executive for Good Reason</u>**. At the Election of the Executive, for Good Reason, provided that the Executive provides the Company with written notice of any event alleged to constitute Good Reason within thirty (30) days of the occurrence of such event and the Company shall have sixty (60) days to cure in all material respects such Good Reason event(s) following the Company's receipt of the Executive's written notice of such Good Reason event(s). For purposes of this Agreement, "Good Reason" for termination shall mean a (i) a material change or reduction in the Executive's authority, duties and responsibilities following a Change in Control; (ii) transfer of the Executive to another work location that is greater than 30 miles from Company's current location; or (iii) material reduction in the Executive's Base Salary (other than an across-the-board reduction affecting similarly situated senior executives of the Company). In all cases any termination by the Executive for Good Reason shall occur no later than six (6) months following the occurrence of the event giving rise to the Good Reason event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>By the Company not for Cause; By the Executive without Good Reason</u>**. At the election of the Company for reasons other than Cause, or at the election of the Executive for reasons other than Good Reason, upon not less than thirty (30) days' prior written notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Effect of Termination</u>**. The Executive shall be entitled to receive the following payments in connection with a termination of Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Executive's employment is terminated pursuant to Section 5(a), as a result of the Executive's death or Disability pursuant to Section 5(b), or by the Executive pursuant to Section 5(d), the Company shall pay to the Executive (or the Executive's designated representative or estate) the "<u>Accrued Benefits</u>," which shall mean: (i) any earned by unpaid Base Salary pursuant to Section 3(a) through the last day of the Executive's actual employment by the Company; (ii) any accrued but unused PTO in accordance with the terms of applicable law; (iii) any unreimbursed business expenses incurred through the last day of the Executive's actual employment by the Company and reimbursable to the Executive pursuant to Section 3(c); and (iv) all other payments, benefits or fringe benefits to which the Executive is entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant pursuant to this Agreement; provided, however, the Company shall have no obligation to pay to the Executive any amounts pursuant to Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Executive's employment is terminated by the Executive pursuant to Section 5(c) or by the Company pursuant to Section 5(d), the Company shall pay or provide to the Executive: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Executive were still employed with the Company and in accordance with Section 3(b); and (iii) an amount equal to fifty percent (50%) of the Executive's then-current Base Salary (at the rate in effect prior to any reduction that constitutes Good Reason), payable in a lump sum on the sixtieth (60<sup>th</sup>) day following Executive's termination of employment and (iv) payments of COBRA premiums for six (6) months following termination. In addition, all of Executive's outstanding equity awards granted from and after the Effective Date shall become immediately vested for the portion that would have vested or become exercisable had employment continued through the next vesting date provided that the initial vesting date for such equity award occurred prior to the Executive's termination date. The payments due to the Executive under clause (iv) shall begin on the sixtieth (60<sup>th</sup>) day after the date of termination and shall include any amounts due to be paid to the Executive prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The payments to be made or benefits to be provided to the Executive under Section 6(b), other than the Accrued Benefits: (i) shall be contingent upon the execution and non-revocation within sixty (60) days following termination of employment by the Executive of a general release of the Company, its affiliates, stockholders, directors, officers, employees and agents from any and all claims (other than claims for payments to be made or benefits to be provided) in the form used by the Company at the time of termination, and (ii) shall constitute the sole remedy of the Executive in the event of a termination of the Executive's employment in the circumstances set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Treatment Upon a Change of Control</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a termination of the Executive by the Company (or a successor thereto) pursuant to Section 5(d) or a resignation by the Executive pursuant to Section 5(c), in each case (x) upon the consummation of a Change of Control (as defined below) or (y) within the period beginning on the date of consummation of the Change of Control and ending on the first (1<sup>st</sup>) anniversary thereof, the Company shall pay or provide to the Executive: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Executive were still employed with the Company and in accordance with Section 3(b); and (iii) an amount equal to one hundred percent (100%) of the Executive's then-current Base Salary (at the rate in effect prior to any reduction that constitutes Good Reason), payable in a lump sum on the sixtieth (60<sup>th</sup>) day following Executive's termination of employment: and (iv) payments of COBRA premiums for 12 months. In addition, all of Executive's then-outstanding equity awards granted from and after the Effective Date shall become immediately vested (and to the extent stock options or stock appreciation rights, exercisable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement, "<u>Change in Control</u>" shall mean (i) any acquisition of the Company by a Person (as defined below) not an Affiliate (as defined below) of the Company, by means of merger or other form of corporate reorganization in which the outstanding ownership interests of the Company are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring Person and in which the holders of the Company's ownership interests hold less than fifty percent (50%) of the acquiring or surviving Person (other than a mere reincorporation transaction), (ii) the closing of the transfer from existing Company stockholders, in one transaction or a series of related transactions, to a Person or group of affiliated Persons, of the Company's securities if, after such closing, such Person or group of affiliated Persons would hold more than fifty percent (50%) of the outstanding voting securities of the Company, (iii) a sale of all or substantially all of the assets of the Company by a Person not an Affiliate of the Company or (iv) individuals who, as of the Effective Date, constitute the Board (the "<u>Incumbent Board</u>") cease for any reason to constitute at least a majority of the Board; <u>provided</u>, <u>however</u>, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least of majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of the office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors of other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board Directors. In no event shall a "Change of Control" include an initial public offering of the Company's stock or a mere recapitalization transaction.

For purposes of this Agreement, an "<u>Affiliate</u>" means with respect to a specified Person, any Person that directly or indirectly controls, is controlled by, or is under common control with, the specified Person (as used in this definition, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity, whether through ownership of voting securities, by contract or otherwise).

For purposes of this Agreement, a "<u>Person</u>" shall mean any individual, company, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company or other legal entity or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Section 409A of the Code</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to the Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, and the final regulations and any guidance promulgated thereunder ("<u>Code Section 409A</u>") (such payments, collectively, the "<u>Deferred Payments</u>") will be paid or otherwise provided until the Executive has a "separation from service" within the meaning of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, if the Executive is a "specified employee" within the meaning of Code Section 409A at the time of the Executive's termination (other than due to death), then the Deferred Payments that are payable within the first six (6) months following the Executive's separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one day following the date of the Executive's separation from service. Notwithstanding anything herein to the contrary, if the Executive dies following the Executive's separation from service, but prior to the six- (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of the Executive's death. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any amount paid under this Agreement that satisfies the requirements of the "short-term deferral" rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments. If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement is intended to be exempt from the requirements of Code Section 409A or compliant therewith so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted accordingly. The Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Code Section 280G/4999</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement to the contrary, if any of the payment or payments or other benefit to the Executive (prior to any reduction below) provided for in this Agreement, together with any other payment or payments or other benefit which the Executive has the right to receive from the Company or any corporation which is a member of an "affiliated group" as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), without regard to Section 1504(b) of the Code, of which the Company is a member (the "<u>Payments</u>") would constitute a "parachute payment" (as defined in Section 280G(b)(2) of the Code), and if the Safe Harbor Amount (defined below) is greater than the Taxed Amount (defined below), then the total amount of such Payments shall be reduced to the Safe Harbor Amount. The "<u>Safe Harbor Amount</u>" is the largest portion of the Payments that would result in no portion of the Payments being subject to the excise tax set forth at Section 4999 of the Code ("<u>Excise Tax</u>"). The "<u>Taxed Amount</u>" is the total amount of the Payments (prior to any reduction, above) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. Solely for the purpose of comparing which of the Safe Harbor Amount and the Taxed Amount is greater, the determination of each such amount, shall be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all of which shall be computed at the highest applicable marginal rate). If a reduction of the Payments to the Safe Harbor Amount is necessary, then the reduction shall occur in the following order unless the Employee elects in writing a different order (<u>provided</u>, <u>however</u>, that such election shall be subject to approval of the Company if made on or after the date on which the event that triggers the Payments occurs): (i) reduction of cash payments; then (ii) cancellation of accelerated vesting of stock or stock option awards; and then (iii) reduction of the Employee's benefits. In the event that acceleration of vesting of stock or stock option award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Employee's stock awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, to the extent that the Company does not have any readily tradable public stock, and in the event that it shall be determined that any right to receive any Payment would not be deductible, in whole or part when aggregated with any other right, payment or benefit to or for the Executive under all other agreements or benefit plans of the Company, by the Company or the person making such payment or distribution or providing such right or benefit as a result of Section 280G of Code, the Company shall use its commercially reasonable best efforts to prepare and deliver to its stockholders the disclosure required by Section 280G(b)(5)(B) of the Code with respect to any Payments to obtain the approval of the Company's stockholders in accordance with Section 280G(b)(5)(B) of the Code and the regulation codified at 26 C.F.R. §1.280G-1, and Executive shall use the Executive's reasonable best efforts to cooperate in connection with such procedure (including, if required, executing a waiver of any Payments to which the Executive might otherwise be entitled that may be submitted for approval to such stockholders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Obligations of Executive - Property Rights</u>**. As a condition to the entering into this Agreement by the Company, if not previously executed in conjunction with the Prior Agreement, Executive shall execute the Company's Proprietary Information and Inventions Assignment Agreement in the form attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Non-Competition During Term</u>**. The Executive will not, during the Employment Period, engage in competition with the Company or any of its Affiliates, either directly or indirectly, in any manner or capacity, as advisor, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Notices</u>**. Any notices delivered under this Agreement shall be deemed duly delivered four (4) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company:

Direct Communication Solutions, Inc.

17150 Via Del Campo, Suite 200<br> San Diego, California 92127<br> Attention: Christopher Bursey, Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Executive:

At the last address in the Company's records.

Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Entire Agreement and Modifications</u>**. This Agreement, including the exhibits hereto and the agreements expressly referred to herein, constitutes the entire understanding between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, including, for the avoidance of doubt, the Prior Agreement. There are no warranties, representations or other agreements between the parties, in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Agreement shall be binding unless made in writing and executed by the party thereto to be bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Waivers</u>**. No delay or omission by the Company or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Withholding</u>**. All salary, bonus and other compensation payable to the Executive during the Employment Period shall be subject to applicable required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>No Mitigation; No Offset</u>**. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Survival of Agreement Provisions</u>**. All terms, conditions, provisions, covenants, agreements, representations and warranties made herein shall survive the performance by the parties hereto of their obligations hereunder, and the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Severability</u>**. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Headings</u>**. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Applicable Law</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of California, notwithstanding the fact that one or more counterparts hereof may be executed outside of the state, or one or more of the obligations of the parties hereunder are to be performed outside of the state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Dispute Resolution</u>**. Any dispute, difference or controversy arising under this Agreement shall be settled by arbitration. Any arbitration pursuant to this Section shall be held before a single neutral arbitrator selected from the roles of the American Arbitration Association pursuant to the Commercial Arbitration Rules. The arbitrator shall interpret and construe this Agreement in accordance with,and shall be bound by the laws of the State of California. Any arbitration shall take place in San Diego, California or at such other location as the parties may agree upon, according to the American Arbitration Association's Commercial Arbitration Rules now in force and hereafter adopted. The arbitrator shall make any award in accordance with and based upon all the provisions of this Agreement and judgment upon any award rendered by the arbitrator shall be entered in any court having jurisdiction thereof. The fees and disbursements of such arbitrator shall be borne equally by the parties, with each party bearing its own expenses for counsel and other out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Execution and Counterparts</u>**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile, email/pdf format or other electronic means and each party may fully rely upon such execution and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Covenant of Further Assurances</u>**. All parties to this Agreement shall, upon request, perform any and all acts and execute and deliver any and all certificates, instruments and other documents that may be necessary or appropriate to carry out any of the terms, conditions and provisions hereof or to carry out the intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Remedies Cumulative</u>**. Each and all of the several rights and remedies provided for in this Agreement shall be construed as being cumulative and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Binding Effect</u>**. This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective executors, administrators, successors and permitted assigns. The Company may assign all or part of its rights hereunder to any of its subsidiary or its parent company, in which case the Services shall be rendered to such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Compliance with Laws</u>**. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and whenever there is a conflict between any term, condition or provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail, but in such event the term, condition or provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, provided that such construction is consistent with the intent of the parties as expressed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **<u>Gender</u>**. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the context so indicates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. **<u>Third Party Benefit</u>**. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person who is not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. **<u>Construction; Representation by Counsel</u>**. The parties hereby represent that they have each been advised by independent counsel with respect to their rights and obligations hereunder. This Agreement shall be construed and interpreted in accordance with the plain meaning of its language, and not for or against either party, and as a whole, giving effect to all of the terms, conditions and provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. **<u>Injunctive Relief; Specific Performance</u>**. Executive hereby expressly agrees and acknowledges that a breach by Executive of any of Executive's obligations under Paragraph 11 hereof would result in severe and irreparable injury to the Company, which injury could not be adequately compensated by an award of money damages, and Executive therefore agrees and acknowledges that the Company shall be entitled to injunctive relief in the event of any such breach of this Agreement, or to enjoin or prevent such a breach. Executive further expressly waives any requirement or obligation of the Company to post any bond or provide any other security in connection with obtaining such injunctive relief.

[Remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the parties have duly executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| "Company" | "Company" |
| Direct Communication Solutions, Inc., | Direct Communication Solutions, Inc., |
| a Delaware corporation | a Delaware corporation |
| By: | <u>/s/ Chris Bursey</u> |
| Name: | Chris Bursey |
| Title: | President & CEO |
| "Executive" | "Executive" |
| <u>/s/ David Scowby</u> | <u>/s/ David Scowby</u> |
| David Scowby | David Scowby |

---

**Exhibit a**

**Proprietary Information and Inventions Assignment Agreement**

## Exhibit 10.3

**Exhibit 10.3**

**<u>EMPLOYMENT AGREEMENT</u>**

THIS EMPLOYMENT AGREEMENT ("<u>Agreement</u>") is entered into as of September 30, 2019, and to be effective upon the listing of the Company's shares on the Canadian Securities Exchange (the "<u>Effective Date</u>") by and between Direct Communication Solutions, Inc., a Delaware corporation (the "<u>Company</u>") and Eric Placzek ("<u>Executive</u>").

WHEREAS, Executive currently serves as Chief Technology Officer of the Company;

WHEREAS, Executive and the Company desire to enter into this Agreement and to set forth the terms and conditions of Executive's continued employment with the Company.

NOW, THEREFORE, In consideration of the mutual covenants and obligations herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Engagement; Nature of Duties</u>**. Executive shall continue to be employed by the Company and will have the title of Chief Technology Officer of the Company. Executive shall perform such duties as may be assigned to Executive from time to time by the Company's Board of Directors (the "<u>Board</u>") (or committee thereof) or the Company's Chief Executive Officer (the "<u>CEO</u>"). The Executive shall devote the Executive's full time and attention to the Executive's duties hereunder; provided, however, that, with advance notice to the Board and subject to the Board's prior written consent, the Executive shall be permitted to participate (including as a board member) in civic, charitable and religious organizations during the Employment Period. The Executive agrees to abide by the rules, regulations, and personnel practices and policies of the Company, as adopted and amended from time to time by the Company. The Executive shall report to the CEO, currently Christophertopher Bursey, or the CEO's designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>At Will Employment</u>**. Executive's employment with the Company commenced on March 31, 2014 (the "<u>Original Effective Date</u>"). Executive's employment under this Agreement will become effective on the Effective Date and shall continue at will until terminated in accordance with the provisions of Section 5 (the "<u>Employment Period</u>"), subject to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Compensation and Benefits</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Base Salary</u>**. During the Employment Period, the Company shall pay to Executive a base compensation ("<u>Base Salary</u>") in the amount of One Hundred Seventy Three Thousand Dollars ($173,000) per annum, payable in periodic installments in accordance with the Company's customary payroll practices in effect from time to time. Executive's Base Salary shall be subject to all applicable withholdings and deductions. Executive's Base Salary shall be subject to review no less frequently than annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Bonus</u>**. During the Employment Period, Executive shall be eligible to participate in any executive bonus plan adopted by the Company (the "<u>Annual Bonus</u>"). The terms of such bonus plan and the payment of any bonuses to Executive shall be in the sole and absolute discretion of the CEO subject to board ratification. Any Annual Bonus paid to the Executive shall be paid no later than March 15 of the year following the end of the calendar year to which with Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Expense Reimbursement</u>**. The Company shall reimburse Executive for any and all reasonable business expenses actually incurred by Executive in the performance of Executive's duties during the Employment Period, provided that such expenses are incurred in accordance with any policies or directives of the Company regarding reimbursement of business expenses now or hereafter adopted by the Company, and subject to Executive providing appropriate supporting documentation, reasonably acceptable to the 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;(d) **<u>Employee Benefits</u>**. During the Employment Period, Executive shall be permitted to participate in any regular health insurance and disability insurance programs maintained from time to time by the Company for the benefit of its senior-level executive employees generally, subject only to any eligibility or membership restrictions of such programs. Executive shall also have the right to participate in any and all benefit, retirement or insurance programs now or hereafter maintained by the Company for the benefit of its senior executive-level employees generally subject only to any eligibility or membership restrictions of such programs. Executive's tenure with the Company for purposes of determining eligibility, payments and benefit levels under any Company benefit and welfare plan shall be based on Executive's service date from the Original Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Other Benefits</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Equity Compensation</u>**. During the Employment Period, the Executive shall be eligible to participate in and receive equity grants under the Company's 2017 Stock Plan (or any successor plan thereto) from time to time, at the discretion of the Board (or an authorized committee thereof) and in accordance with the terms and conditions of such plans and as may be established by the Board with respect to any grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Indemnification and D&O Insurance</u>.** The Company shall indemnify the Executive and hold the Executive harmless to the fullest extent permitted by law against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including advancement of reasonable attorney's fees), losses, and damages resulting from the Executive's good faith performance of the Executive's duties and obligations with the Company. The Company shall cover the Executive under directors' and officers' liability insurance both during and, while potential liability exists, after the expiration of the Employment Period in the same amount and to the same extent as the Company covers its other officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Termination of the Employment Period</u>.** The employment of the Executive by the Company pursuant to this agreement shall terminate upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>By the Company for Cause</u>**. At the election of the Company, the Executive's employment may be terminated for Cause. For purposes of this Agreement, "<u>Cause</u>" means (i) the Executive's conviction of, or guilty plea to, a felony or a crime involving moral turpitude, (ii) the Executive's commission of any crime involving fraud or material dishonesty in connection with the Executive's employment by the Company, (iii) the Executive's willful failure to substantially perform the Executive's duties to the Company or a material breach of this Agreement, in each case after written notice to the Executive and the failure to cure within thirty (30) days thereafter (unless such act or omission, by its nature, may not be remedied or unless such act or omission arises in connection with Exhibit A to this Agreement), (iv) willful misconduct or gross negligence, or (v) breach of any code of conduct, code of ethics, securities trading policy or other material written policy of the 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;(b) **<u>Death or Disability</u>**. Upon the death of the Executive or written notice by the company to the Executive of termination of the Executive for Disability (as defined below) given while the Executive remains Disabled. For purposes of this Agreement, "<u>Disability</u>" means (i) the Executive has been incapacitated by mental or physical injury or illness so as to be prevented thereby from engaging the performance of the Executive's duties to the Company and (ii) such incapacity has continued for a period of one hundred eighty (180) consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>By the Executive for Good Reason</u>**. At the Election of the Executive, for Good Reason, provided that the Executive provides the Company with written notice of any event alleged to constitute Good Reason within thirty (30) days of the occurrence of such event and the Company shall have sixty (60) days to cure in all material respects such Good Reason event(s) following the Company's receipt of the Executive's written notice of such Good Reason event(s). For purposes of this Agreement, "Good Reason" for termination shall mean a (i) a material change or reduction in the Executive's authority, duties and responsibilities following a Change in Control; (ii) transfer of the Executive to another work location that is greater than 30 miles from Company's current location; or (iii) material reduction in the Executive's Base Salary (other than an across-the-board reduction affecting similarly situated senior executives of the Company). In all cases any termination by the Executive for Good Reason shall occur no later than six (6) months following the occurrence of the event giving rise to the Good Reason event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>By the Company not for Cause; By the Executive without Good Reason</u>**. At the election of the Company for reasons other than Cause, or at the election of the Executive for reasons other than Good Reason, upon not less than thirty (30) days' prior written notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Effect of Termination</u>**. The Executive shall be entitled to receive the following payments in connection with a termination of Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Executive's employment is terminated pursuant to Section 5(a), as a result of the Executive's death or Disability pursuant to Section 5(b), or by the Executive pursuant to Section 5(d), the Company shall pay to the Executive (or the Executive's designated representative or estate) the "<u>Accrued Benefits</u>," which shall mean: (i) any earned by unpaid Base Salary pursuant to Section 3(a) through the last day of the Executive's actual employment by the Company; (ii) any accrued but unused PTO in accordance with the terms of applicable law; (iii) any unreimbursed business expenses incurred through the last day of the Executive's actual employment by the Company and reimbursable to the Executive pursuant to Section 3(c); and (iv) all other payments, benefits or fringe benefits to which the Executive is entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant pursuant to this Agreement; provided, however, the Company shall have no obligation to pay to the Executive any amounts pursuant to Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Executive's employment is terminated by the Executive pursuant to Section 5(c) or by the Company pursuant to Section 5(d), the Company shall pay or provide to the Executive: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Executive were still employed with the Company and in accordance with Section 3(b); and (iii) an amount equal to fifty percent (50%) of the Executive's then-current Base Salary (at the rate in effect prior to any reduction that constitutes Good Reason), payable in a lump sum on the sixtieth (60<sup>th</sup>) day following Executive's termination of employment and (iv) payments of COBRA premiums for six (6) months following termination. In addition, all of Executive's outstanding equity awards granted from and after the Effective Date shall become immediately vested for the portion that would have vested or become exercisable had employment continued through the next vesting date provided that the initial vesting date for such equity award occurred prior to the Executive's termination date. The payments due to the Executive under clause (iv) shall begin on the sixtieth (60<sup>th</sup>) day after the date of termination and shall include any amounts due to be paid to the Executive prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The payments to be made or benefits to be provided to the Executive under Section 6(b), other than the Accrued Benefits: (i) shall be contingent upon the execution and non-revocation within sixty (60) days following termination of employment by the Executive of a general release of the Company, its affiliates, stockholders, directors, officers, employees and agents from any and all claims (other than claims for payments to be made or benefits to be provided) in the form used by the Company at the time of termination, and (ii) shall constitute the sole remedy of the Executive in the event of a termination of the Executive's employment in the circumstances set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Treatment Upon a Change of Control</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a termination of the Executive by the Company (or a successor thereto) pursuant to Section 5(d) or a resignation by the Executive pursuant to Section 5(c), in each case (x) upon the consummation of a Change of Control (as defined below) or (y) within the period beginning on the date of consummation of the Change of Control and ending on the first (1<sup>st</sup>) anniversary thereof, the Company shall pay or provide to the Executive: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Executive were still employed with the Company and in accordance with Section 3(b); and (iii) an amount equal to one hundred percent (100%) of the Executive's then-current Base Salary (at the rate in effect prior to any reduction that constitutes Good Reason), payable in a lump sum on the sixtieth (60<sup>th</sup>) day following Executive's termination of employment: and (iv) payments of COBRA premiums for 12 months. In addition, all of Executive's then-outstanding equity awards granted from and after the Effective Date shall become immediately vested (and to the extent stock options or stock appreciation rights, exercisable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement, "<u>Change in Control</u>" shall mean (i) any acquisition of the Company by a Person (as defined below) not an Affiliate (as defined below) of the Company, by means of merger or other form of corporate reorganization in which the outstanding ownership interests of the Company are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring Person and in which the holders of the Company's ownership interests hold less than fifty percent (50%) of the acquiring or surviving Person (other than a mere reincorporation transaction), (ii) the closing of the transfer from existing Company stockholders, in one transaction or a series of related transactions, to a Person or group of affiliated Persons, of the Company's securities if, after such closing, such Person or group of affiliated Persons would hold more than fifty percent (50%) of the outstanding voting securities of the Company, (iii) a sale of all or substantially all of the assets of the Company by a Person not an Affiliate of the Company or (iv) individuals who, as of the Effective Date, constitute the Board (the "<u>Incumbent Board</u>") cease for any reason to constitute at least a majority of the Board; <u>provided</u>, <u>however</u>, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least of majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of the office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors of other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board Directors. In no event shall a "Change of Control" include an initial public offering of the Company's stock or a mere recapitalization transaction.

For purposes of this Agreement, an "<u>Affiliate</u>" means with respect to a specified Person, any Person that directly or indirectly controls, is controlled by, or is under common control with, the specified Person (as used in this definition, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity, whether through ownership of voting securities, by contract or otherwise).

For purposes of this Agreement, a "<u>Person</u>" shall mean any individual, company, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company or other legal entity or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Section 409A of the Code</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to the Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, and the final regulations and any guidance promulgated thereunder ("<u>Code Section 409A</u>") (such payments, collectively, the "<u>Deferred Payments</u>") will be paid or otherwise provided until the Executive has a "separation from service" within the meaning of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, if the Executive is a "specified employee" within the meaning of Code Section 409A at the time of the Executive's termination (other than due to death), then the Deferred Payments that are payable within the first six (6) months following the Executive's separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one day following the date of the Executive's separation from service. Notwithstanding anything herein to the contrary, if the Executive dies following the Executive's separation from service, but prior to the six- (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of the Executive's death. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any amount paid under this Agreement that satisfies the requirements of the "short-term deferral" rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments. If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement is intended to be exempt from the requirements of Code Section 409A or compliant therewith so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted accordingly. The Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Code Section 280G/4999</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement to the contrary, if any of the payment or payments or other benefit to the Executive (prior to any reduction below) provided for in this Agreement, together with any other payment or payments or other benefit which the Executive has the right to receive from the Company or any corporation which is a member of an "affiliated group" as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), without regard to Section 1504(b) of the Code, of which the Company is a member (the "<u>Payments</u>") would constitute a "parachute payment" (as defined in Section 280G(b)(2) of the Code), and if the Safe Harbor Amount (defined below) is greater than the Taxed Amount (defined below), then the total amount of such Payments shall be reduced to the Safe Harbor Amount. The "<u>Safe Harbor Amount</u>" is the largest portion of the Payments that would result in no portion of the Payments being subject to the excise tax set forth at Section 4999 of the Code ("<u>Excise Tax</u>"). The "<u>Taxed Amount</u>" is the total amount of the Payments (prior to any reduction, above) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. Solely for the purpose of comparing which of the Safe Harbor Amount and the Taxed Amount is greater, the determination of each such amount, shall be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all of which shall be computed at the highest applicable marginal rate). If a reduction of the Payments to the Safe Harbor Amount is necessary, then the reduction shall occur in the following order unless the Employee elects in writing a different order (<u>provided</u>, <u>however</u>, that such election shall be subject to approval of the Company if made on or after the date on which the event that triggers the Payments occurs): (i) reduction of cash payments; then (ii) cancellation of accelerated vesting of stock or stock option awards; and then (iii) reduction of the Employee's benefits. In the event that acceleration of vesting of stock or stock option award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Employee's stock awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, to the extent that the Company does not have any readily tradable public stock, and in the event that it shall be determined that any right to receive any Payment would not be deductible, in whole or part when aggregated with any other right, payment or benefit to or for the Executive under all other agreements or benefit plans of the Company, by the Company or the person making such payment or distribution or providing such right or benefit as a result of Section 280G of Code, the Company shall use its commercially reasonable best efforts to prepare and deliver to its stockholders the disclosure required by Section 280G(b)(5)(B) of the Code with respect to any Payments to obtain the approval of the Company's stockholders in accordance with Section 280G(b)(5)(B) of the Code and the regulation codified at 26 C.F.R. §1.280G-1, and Executive shall use the Executive's reasonable best efforts to cooperate in connection with such procedure (including, if required, executing a waiver of any Payments to which the Executive might otherwise be entitled that may be submitted for approval to such stockholders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Obligations of Executive - Property Rights</u>**. As a condition to the entering into this Agreement by the Company, if not previously executed in conjunction with the Prior Agreement, Executive shall execute the Company's Proprietary Information and Inventions Assignment Agreement in the form attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Non-Competition During Term</u>**. The Executive will not, during the Employment Period, engage in competition with the Company or any of its Affiliates, either directly or indirectly, in any manner or capacity, as advisor, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Notices</u>**. Any notices delivered under this Agreement shall be deemed duly delivered four (4) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company:

Direct Communication Solutions, Inc.<br> 17150 Via Del Campo, Suite 200<br> San Diego, California 92127<br> Attention: Christophertopher Bursey, Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Executive:

At the last address in the Company's records.

Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Entire Agreement and Modifications</u>**. This Agreement, including the exhibits hereto and the agreements expressly referred to herein, constitutes the entire understanding between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, including, for the avoidance of doubt, the Prior Agreement. There are no warranties, representations or other agreements between the parties, in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Agreement shall be binding unless made in writing and executed by the party thereto to be bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Waivers</u>**. No delay or omission by the Company or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Withholding</u>**. All salary, bonus and other compensation payable to the Executive during the Employment Period shall be subject to applicable required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>No Mitigation; No Offset</u>**. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Survival of Agreement Provisions</u>**. All terms, conditions, provisions, covenants, agreements, representations and warranties made herein shall survive the performance by the parties hereto of their obligations hereunder, and the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Severability</u>**. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Headings</u>**. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Applicable Law</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of California, notwithstanding the fact that one or more counterparts hereof may be executed outside of the state, or one or more of the obligations of the parties hereunder are to be performed outside of the state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Dispute Resolution</u>**. Any dispute, difference or controversy arising under this Agreement shall be settled by arbitration. Any arbitration pursuant to this Section shall be held before a single neutral arbitrator selected from the roles of the American Arbitration Association pursuant to the Commercial Arbitration Rules. The arbitrator shall interpret and construe this Agreement in accordance with,and shall be bound by the laws of the State of California. Any arbitration shall take place in San Diego, California or at such other location as the parties may agree upon, according to the American Arbitration Association's Commercial Arbitration Rules now in force and hereafter adopted. The arbitrator shall make any award in accordance with and based upon all the provisions of this Agreement and judgment upon any award rendered by the arbitrator shall be entered in any court having jurisdiction thereof. The fees and disbursements of such arbitrator shall be borne equally by the parties, with each party bearing its own expenses for counsel and other out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Execution and Counterparts</u>**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile, email/pdf format or other electronic means and each party may fully rely upon such execution and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Covenant of Further Assurances</u>**. All parties to this Agreement shall, upon request, perform any and all acts and execute and deliver any and all certificates, instruments and other documents that may be necessary or appropriate to carry out any of the terms, conditions and provisions hereof or to carry out the intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Remedies Cumulative</u>**. Each and all of the several rights and remedies provided for in this Agreement shall be construed as being cumulative and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Binding Effect</u>**. This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective executors, administrators, successors and permitted assigns. The Company may assign all or part of its rights hereunder to any of its subsidiary or its parent company, in which case the Services shall be rendered to such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Compliance with Laws</u>**. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and whenever there is a conflict between any term, condition or provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail, but in such event the term, condition or provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, provided that such construction is consistent with the intent of the parties as expressed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **<u>Gender</u>**. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the context so indicates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. **<u>Third Party Benefit</u>**. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person who is not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. **<u>Construction; Representation by Counsel</u>**. The parties hereby represent that they have each been advised by independent counsel with respect to their rights and obligations hereunder. This Agreement shall be construed and interpreted in accordance with the plain meaning of its language, and not for or against either party, and as a whole, giving effect to all of the terms, conditions and provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. **<u>Injunctive Relief; Specific Performance</u>**. Executive hereby expressly agrees and acknowledges that a breach by Executive of any of Executive's obligations under Paragraph 11 hereof would result in severe and irreparable injury to the Company, which injury could not be adequately compensated by an award of money damages, and Executive therefore agrees and acknowledges that the Company shall be entitled to injunctive relief in the event of any such breach of this Agreement, or to enjoin or prevent such a breach. Executive further expressly waives any requirement or obligation of the Company to post any bond or provide any other security in connection with obtaining such injunctive relief.

[Remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the parties have duly executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| "Company" | "Company" |
| Direct Communication Solutions, Inc., | Direct Communication Solutions, Inc., |
| a Delaware corporation | a Delaware corporation |
| By: | /s/ Chris Bursey |
| Name: | Chris Bursey |
| Title: | President & CEO |
| "Executive" | "Executive" |
| /s/ Eric Placzek | /s/ Eric Placzek |
| Eric Placzek | Eric Placzek |

---

**Exhibit a**

**Proprietary Information and Inventions Assignment Agreement**

## Exhibit 10.4

**Exhibit 10.4**

<u>**EMPLOYMENT AGREEMENT**</u>

THIS EMPLOYMENT AGREEMENT <u>("Agreement")</u> is entered into as of November <u>.2..&</u>, <u>7</u> , 2025, (the <u>"Effective Date")</u> by and between Direct Communication Solutions, <u>InG</u> Delaware corporation (the <u>"Company")</u> and William Espley <u>("Executive")</u>.

WHEREAS, Executive currently serves as Chief Executive Officer of the Company;

WHEREAS, Executive and the Company desire to enter into this Agreement and to set forth the terms and conditions of Executive's continued employment with the Company.

NOW, THEREFORE, In consideration of the mutual covenants and obligations herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>**Engagement; Nature of Duties.**</u> Executive shall continue to be employed by the Company and will have the title of Chief Executive Officer of the Company. Executive shall perform such duties as may be assigned to Executive from time to time by the Company's Board of Directors (the <u>"Board")</u> (or committee thereof). The Executive shall devote the Executive's full time and attention to the Executive's duties hereunder; provided, however, that, with advance notice to the Board and subject to the Board's prior written consent, the Executive shall be permitted to participate (including as a board member) in civic, charitable and religious organizations during the Employment Period. The Executive agrees to abide by the rules, regulations, and personnel practices and policies of the Company, as adopted and amended from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>**At Will Employment.**</u> Executive's employment with the Company commenced on <u>*/(/411,*</u> *<u>-�I.,. +h</u>* (the <u>"Original Effective Date").</u> Executive's employment under this Agreement will become effective on the Effective Date and shall continue at will until terminated in accordance with the provisions of Section 5 (the <u>"Employment Period"),</u> subject to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. <u>**Compensation and Benefits.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>**Base Salary.**</u> During the Employment Period, the Company shall pay to Executive a base compensation <u>("Base Salary")</u> in the amount of One Hundred Twenty Thousand Dollars ($120,000) per annum, payable in periodic installments in accordance with the Company's customary payroll practices in effect from time to time. Executive's Base Salary shall be subject to all applicable withholdings and deductions. Executive's Base Salary shall be subject to review no less frequently than annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>**Bonus.**</u> During the Employment Period, Executive shall be eligible to participate in any executive bonus plan adopted by the Company (the <u>"Annual Bonus").</u> The terms of such bonus plan and the payment of any bonuses to Executive shall be in the sole and absolute discretion of the Board of Directors. Any Annual Bonus paid to the Executive shall be paid no later than March 15 of the year following the end of the calendar year to which with Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>**Expense Reimbursement.**</u> The Company shall reimburse Executive for any and all reasonable business expenses actually incurred by Executive in the performance of Executive's duties during the Employment Period, provided that such expenses are incurred in accordance with any policies or directives of the Company regarding reimbursement of business expenses now or hereafter adopted by the Company, and subject to Executive providing appropriate supporting documentation, reasonably acceptable to the 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;(d) <u>**Employee Benefits.**</u> During the Employment Period, Executive shall be permitted to participate in any regular health insurance and disability insurance programs maintained from time to time by the Company for the benefit of its senior-level executive employees generally, subject only to any eligibility or membership restrictions of such programs. Executive shall also have the right to participate in any and all benefit, retirement or insurance programs now or hereafter maintained by the Company for the benefit of its senior executive-level employees generally subject only to any eligibility or membership restrictions of such programs. Executive's tenure with the Company for purposes of determining eligibility, payments and benefit levels under any Company benefit and welfare plan shall be based on Executive's service date from the Original Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Other Benefits.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>**Equity Compensation.**</u> During the Employment Period, the Executive shall be eligible to participate in and receive equity grants under the Company's 2017 Stock Plan (or any successor plan thereto) from time to time, at the discretion of the Board (or an authorized committee thereof) and in accordance with the terms and conditions of such plans and as may be established by the Board with respect to any grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>**Indemnification and D&O Insurance.**</u> The Company shall indemnify the Executive and hold the Executive harmless to the fullest extent permitted by law against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including advancement of reasonable attorney's fees), losses, and damages resulting from the Executive's good faith performance of the Executive's duties and obligations with the Company. The Company shall cover the Executive under directors' and officers' liability insurance both during and, while potential liability exists, after the expiration of the Employment Period in the same amount and to the same extent as the Company covers its other officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>**Termination of the Employment Period.**</u> The employment of the Executive by the Company pursuant to this agreement shall terminate upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>**By the Company for Cause.**</u> At the election of the Company, the Executive's employment may be terminated for Cause. For purposes of this Agreement, <u>"Cause"</u> means (i) the Executive's conviction of, or guilty plea to, a felony or a crime involving moral turpitude, (ii) the Executive's commission of any crime involving fraud or material dishonesty in connection with the Executive's employment by the Company, (iii) the Executive's willful failure to substantially perform the Executive's duties to the Company or a material breach of this Agreement, in each case after written notice to the Executive and the failure to cure within thirty (30) days thereafter (unless such act or omission, by its nature, may not be remedied or unless such act or omission arises in connection with Exhibit A to this Agreement), (iv) willful misconduct or gross negligence, or (v) breach of any code of conduct, code of ethics, securities trading policy or other material written policy of the 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;(b) <u>**Death or Disability.**</u> Upon the death of the Executive or written notice by the company to the Executive of termination of the Executive for Disability (as defined below) given while the Executive remains Disabled. For purposes of this Agreement, <u>"Disability"</u> means (i) the Executive has been incapacitated by mental or physical injury or illness so as to be prevented thereby from engaging the performance of the Executive's duties to the Company and (ii) such incapacity has continued for a period of one hundred eighty (180) consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>**By the Executive for Good Reason.**</u> At the Election of the Executive, for Good Reason, provided that the Executive provides the Company with written notice of any event alleged to constitute Good Reason within thirty (30) days of the occurrence of such event and the Company shall have sixty (60) days to cure in all material respects such Good Reason event(s) following the Company's receipt of the Executive's written notice of such Good Reason event(s). For purposes of this Agreement, "Good Reason" for termination shall mean a (i) a material change or reduction in the Executive's authority, duties and responsibilities following a Change in Control; (ii) transfer of the Executive to another work location that is greater than 30 miles from Company's current location; or (iii) material reduction in the Executive's Base Salary (other than an across-the-board reduction affecting similarly situated senior executives of the Company). In all cases any termination by the Executive for Good Reason shall occur no later than six (6) months following the occurrence of the event giving rise to the Good Reason event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>**By the Company not for Cause; By the Executive without Good Reason.**</u> At the election of the Company for reasons other than Cause, or at the election of the Executive for reasons other than Good Reason, upon not less than thirty (30) days' prior written notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>**Effect of Termination.**</u> The Executive shall be entitled to receive the following payments in connection with a termination of Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Executive's employment is terminated pursuant to Section 5(a), as a result of the Executive's death or Disability pursuant to Section 5(b), or by the Executive pursuant to Section 5(d), the Company shall pay to the Executive (or the Executive's designated representative or estate) the <u>"Accrued Benefits,"</u> which shall mean: (i) any earned by unpaid Base Salary pursuant to Section 3(a) through the last day of the Executive's actual employment by the Company; (ii) any accrued but unused PTO in accordance with the terms of applicable law; (iii) any unreimbursed business expenses incurred through the last day of the Executive's actual employment by the Company and reimbursable to the Executive pursuant to Section 3(c); and (iv) all other payments, benefits or fringe benefits to which the Executive is entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant pursuant to this Agreement; provided, however, the Company shall have no obligation to pay to the Executive any amounts pursuant to Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Executive's employment is terminated by the Executive pursuant to Section 5(c) or by the Company pursuant to Section 5(d), the Company shall pay or provide to the Executive: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Executive were still employed with the Company and in accordance with Section 3(b); The payments to be made or benefits to be provided to the Executive under Section 6(b), other than the Accrued Benefits: (i) shall be contingent upon the execution and non-revocation within sixty (60) days following termination of employment by the Executive of a general release of the Company, its affiliates, stockholders, directors, officers, employees and agents from any and all claims (other than claims for payments to be made or benefits to be provided) in the form used by the Company at the time of termination, and (ii) shall constitute the sole remedy of the Executive in the event of a termination of the Executive's employment in the circumstances set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>**Code Section 280G/4999.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in this Agreement to the contrary, if any of the payment or payments or other benefit to the Executive (prior to any reduction below) provided for in this Agreement, together with any other payment or payments or other benefit which the Executive has the right to receive from the Company or any corporation which is a member of an "affiliated group" as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the <u>"Code"),</u> without regard to Section 1504(b) of the Code, of which the Company is a member (the <u>"Payments")</u> would constitute a "parachute payment" (as defined in Section 280G(b)(2) of the Code), and if the Safe Harbor Amount (defined below) is greater than the Taxed Amount (defined below), then the total amount of such Payments shall be reduced to the Safe Harbor Amount. The <u>"Safe Harbor Amount"</u> is the largest portion of the Payments that would result in no portion of the Payments being subject to the excise tax set forth at Section 4999 of the Code <u>("Excise Tax").</u> The <u>"Taxed Amount"</u> is the total amount of the Payments (prior to any reduction, above) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. Solely for the purpose of comparing which of the Safe Harbor Amount and the Taxed Amount is greater, the determination of each such amount, shall be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all of which shall be computed at the highest applicable marginal rate). If a reduction of the Payments to the Safe Harbor Amount is necessary, then the reduction shall occur in the following order unless the Employee elects in writing a different order <u>(provided, however,</u> that such election shall be subject to approval of the Company if made on or after the date on which the event that triggers the Payments occurs): (i) reduction of cash payments; then (ii) cancellation of accelerated vesting of stock or stock option awards; and then (iii) reduction of the Employee's benefits. In the event that acceleration of vesting of stock or stock option award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Employee's stock awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, to the extent that the Company does not have any readily tradable public stock, and in the event that it shall be determined that any right to receive any Payment would not be deductible, in whole or part when aggregated with any other right, payment or benefit to or for the Executive under all other agreements or benefit plans of the Company, by the Company or the person making such payment or distribution or providing such right or benefit as a result of Section 280G of Code, the Company shall use its commercially reasonable best efforts to prepare and deliver to its stockholders the disclosure required by Section 280G(b)(5)(B) of the Code with respect to any Payments to obtain the approval of the Company's stockholders in accordance with Section 280G(b)(5)(B) of the Code and the regulation codified at 26 C.F.R. §1.2800-1, and Executive shall use the Executive's reasonable best efforts to cooperate in connection with such procedure (including, ifrequired, executing a waiver of any Payments to which the Executive might otherwise be entitled that may be submitted for approval to such stockholders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>**Obligations of Executive** - **Property Rights.**</u> As a condition to the entering into this Agreement by the Company, if not previously executed in conjunction with the Prior Agreement, Executive shall execute the Company's Proprietary Information and Inventions Assignment Agreement in the form attached hereto as <u>Exhibit A.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>**Non-Competition During Term.**</u> The Executive will not, during the Employment Period, engage in competition with the Company or any of its Affiliates, either directly or indirectly, in any manner or capacity, as advisor, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>**Notices.**</u> Any notices delivered under this Agreement shall be deemed duly delivered four (4) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company:

Direct Communication Solutions, Inc.<br> 17150 Via Del Campo, Suite 200

San Diego, California 92127

Attention: Compensation Committee Chairrman of the Board

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Executive:

At the last address in the Company's records.

Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>**Entire Agreement and Modifications.**</u> This Agreement, including the exhibits hereto and the agreements expressly referred to herein, constitutes the entire understanding between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, including, for the avoidance of doubt, the Prior Agreement. There are no warranties, representations or other agreements between the parties, in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Agreement shall be binding unless made in writing and executed by the party thereto to be bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>**Waivers.**</u> No delay or omission by the Company or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>**Withholding.**</u> All salary, bonus and other compensation payable to the Executive during the Employment Period shall be subject to applicable required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>**No Mitigation; No Offset.**</u> In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>**Survival of Agreement Provisions.**</u> All terms, conditions, provisions, covenants, agreements, representations and warranties made herein shall survive the performance by the parties hereto of their obligations hereunder, and the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>**SeverabiUty.**</u> In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>**Headings.**</u> The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>**Applicable Law.**</u> This Agreement shall be governed by and construed in accordance with the laws of the State of California, notwithstanding the fact that one or more counterparts hereof may be executed outside of the state, or one or more of the obligations of the parties hereunder are to be performed outside of the state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>**Dispute Resolution.**</u> Any dispute, difference or controversy arising under this Agreement shall be settled by arbitration. Any arbitration pursuant to this Section shall be held before a single neutral arbitrator selected from the roles of the American Arbitration Association pursuant to the Commercial Arbitration Rules. The arbitrator shall interpret and construe this Agreement in accordance with, and shall be bound by the laws of the State of California. Any arbitration shall take place in San Diego, California or at such other location as the parties may agree upon, according to the American Arbitration Association's Commercial Arbitration Rules now in force and hereafter adopted. The arbitrator shall make any award in accordance with and based upon all the provisions of this Agreement and judgment upon any award rendered by the arbitrator shall be entered in any court having jurisdiction thereof. The fees and disbursements of such arbitrator shall be borne equally by the parties, with each party bearing its own expenses for counsel and other out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>**Execution and Counterparts.**</u> This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile, email/pdf format or other electronic means and each party may fully rely upon such execution and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>**Covenant of Further Assurances.**</u> All parties to this Agreement shall, upon request, perform any and all acts and execute and deliver any and all certificates, instruments and other documents that may be necessary or appropriate to carry out any of the terms, conditions and provisions hereof or to carry out the intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>**Remedies Cumulative.**</u> Each and all of the several rights and remedies provided for in this Agreement shall be construed as being cumulative and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>**Binding Effect.**</u> This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective executors, administrators, successors and permitted assigns. The Company may assign all or part of its rights hereunder to any of its subsidiary or its parent company, in which case the Services shall be rendered to such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>**Compliance with Laws.**</u> Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and whenever there is a conflict between any term, condition or provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail, but in such event the term, condition or provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, provided that such construction is consistent with the intent of the parties as expressed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>**Gender.**</u> As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the context so indicates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>**Third Party Benefit.**</u> Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person who is not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>**Construction; Representation by Counsel.**</u> The parties hereby represent that they have each been advised by independent counsel with respect to their rights and obligations hereunder. This Agreement shall be construed and interpreted in accordance with the plain meaning of its language, and not for or against either party, and as a whole, giving effect to all of the terms, conditions and provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>**lniunctive Relief; Specific Performance.**</u> Executive hereby expressly agrees and acknowledges that a breach by Executive of any of Executive's obligations under Paragraph 9 hereof would result in severe and irreparable injury to the Company, which injury could not be adequately compensated by an award of money damages, and Executive therefore agrees and acknowledges that the Company shall be entitled to injunctive relief in the event of any such breach of this Agreement, or to enjoin or prevent such a breach. Executive further expressly waives any requirement or obligation of the Company to post any bond or provide any other security in connection with obtaining such injunctive relief.

[Remainder of page intentionally left blank]

IN **WITNESS WHEREOF,** the parties have duly executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| "Company" | "Company" |
| Direct Communication Solutions, Inc.,<br> a Delaware corporation | Direct Communication Solutions, Inc.,<br> a Delaware corporation |
| By: | /s/ Mike Zhou |
| Name: | MIKE Zhou |
| Title: | DIRECTOR |
| "Executive" | "Executive" |
| /s/ William Espley | /s/ William Espley |
| **William Espley** | **William Espley** |

---

**EXHIBIT A**

**PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT**

## Exhibit 10.6

**Exhibit 10.6**

**Direct Communication Solutions, Inc.**

**Promissory Note**

---

| | | |
|:---|:---|:---|
| Issuance Date: **July 14, 2025** | Principal Amount: | **US$1,386,000** |
|  | Consideration Amount: | **US$1,260,000** |

---

**FOR VALUE RECEIVED, Direct Communication Solutions, Inc.**, a Delaware corporation (the **"Company"**), hereby promises to pay to the order of **Indicator Global Capital, Inc** (the **"Holder"**) the amount set out above as the Principal Amount (the **"Principal"**) when due, whether upon the Maturity Date (as defined below), acceleration or otherwise (in each case in accordance with the terms hereof) and to pay interest (**"Interest"**) on any outstanding Principal at the applicable Interest Rate (defined below) set out below from the date set out above as the issuance date (the **"Issuance Date"**) until the same becomes due and payable, upon the Maturity Date or acceleration, redemption or otherwise (in each case in accordance with the terms hereof).

The face value Principal Amount of **One Million Three Hundred Eighty-Six Thousand United States Dollars** (**US$1,386,000**), of which a total of **One Million Two Hundred Sixty Thousand United States Dollars** (**US$1,260,000**) or so much as shall be extended in one or more tranches plus the OID (defined below) by the Holder to the Company.

(1) <u>GENERAL TERMS</u>

(a) <u>Consideration and Advancement of Tranches.</u> The consideration (the "**Consideration**") to the Company for this promissory note (the "**Note**") is **US$1,260,000**, to be paid in up to six monthly tranches of up to **US$210,000** (each, a "**Tranche**"). The first Tranche shall consist of a payment by Holder to the Company on the Issue Date of no less than **US$210,000**, from which the Holder shall retain **US$5,000** to cover its legal fees.

(b) <u>Original Issue Discount.</u> This Note carries an original issue discount of **$126,000** (the "**OID**"), to cover the Holder's accounting fees, due diligence fees, monitoring, and/or other transactional costs incurred in connection with the purchase and sale of the Note, which is included in the Principal Amount of this Note. Thus, the purchase price of this Note constituting the Consideration shall be **US$1,260,000**, computed as follows: the Principal Amount minus the OID. The OID shall be earned upon each Tranche on a pro rata basis of their proportion of the total Consideration. For example, upon the advance of the first Tranche of **US$210,000**, an aggregate **US$21,000** shall be added to the Principal Amount of the outstanding Note in addition to the amount advanced, and the total amount owed, or the total Principal Amount, shall be **US$231,000** per Tranche.

(c) <u>Repayment of the Principal Amount</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The maturity date (the "**Maturity Date** ")
for each Tranche shall be at the end of the period that begins from the date each Tranche is advanced and ends twelve (12) months thereafter
(such periods each referred to herein as a 'Tranche term' and such periods collectively referred to as the "**Note Term** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Prepayment.</u> The Company shall have the right at any
time prior to the Maturity Date, without penalty, upon fifteen (15) days' notice to the Holder (the "**Prepayment Notice** "),
to prepay the Note by making a payment to Lender equal to the sum of (i) the outstanding Principal Amount, (ii) all accrued and unpaid
interest, (iii) all unaccrued interest through the remainder of the Note Term that is guaranteed pursuant to Section 1.1(e) below, and
(iv) any other amounts due under the Note (the "**Prepayment Amount** "). The Prepayment Notice must be received by Holder
no later than ten (10) days prior to the date that the Company proposes to remit the Prepayment Amount (the "**Prepayment Date** ").

(d) <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Interest shall be ten percent (10%) per annum ("  **<u>Interest Rate</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any outstanding amount of the Principal Amount of each respective
Tranche, interest thereon, other amounts due hereunder or penalties on this Note, which is not paid by the due date as specified herein,
shall bear default interest at the lesser of the rate of eighteen percent (18%) per annum or the maximum legal amount permitted by law,
from the due date thereof until the same is paid in full, including following the entry of a judgment in favor of Holder (the "**Default Interest** ").

(e) <u>Security</u>. The obligations of the Company under this
Note are secured pursuant to the terms of the guaranty, of even date herewith, of Christopher S. Bursey, a copy of which is attached
hereto as Exhibit A.

(2) <u>EVENTS OF DEFAULT.</u>

(a) An "<u>Event of Default</u>", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company's failure to pay to the Holder any amount of
Principal, Interest, or other amounts when and as due under this Note (including, without limitation, the Company's failure to pay any
redemption payments or amounts hereunder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company or any subsidiary of the Company shall commence,
or there shall be commenced against the Company or any subsidiary of the Company under any applicable bankruptcy or insolvency laws as
now or hereafter in effect or any successor thereto, or the Company or any subsidiary of the Company commences any other proceeding under
any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there is commenced against
the Company or any subsidiary of the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period
of sixty-one (61) days; or the Company or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of relief
or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the Company suffers any appointment
of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues undischarged
or unstayed for a period of sixty-one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit
of creditors; or the Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be
unable to pay, its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company shall
by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate
or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company or any subsidiary of the Company shall default
in any of its obligations under any other note or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement
or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money
or money due under any long term leasing or factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding
$50,000, whether such indebtedness now exists or shall hereafter be created; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company shall become late or delinquent in its filing
requirements as a fully-reporting issuer registered with applicable Canadian securities commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In regard of any default under 2(i), 2(iii) and 2(iv) above,
the Company shall have fifteen (15) business days to correct such deficiency from the date of written notice by the Holder to the Company
of such default under such sub-sections; and

(b) Upon the occurrence and during the continuation of an Event of Default specified in Section 2(a) of this Note (after the expiration of any applicable cure period), and in addition to any other right or remedy of the Holder hereunder, under the Note or otherwise at law or in equity, the Company hereby irrevocably authorizes and empowers Holder or its legal counsel, each as the Holder's attorney-in-fact, to appear ex parte and without notice to the Company to confess judgment against the Company for the unpaid amount of this Note as evidenced by the 'Affidavit of Confession of Judgment' signed by the Company as of the Issue Date and to be completed by the Holder or its counsel pursuant to the foregoing power of attorney (which power is coupled with an interest), a copy of which is attached as Exhibit B hereto (the "**Affidavit**"). The Affidavit shall set forth the amount then due hereunder, plus attorney's fees and cost of suit, and to release all errors, and waive all rights of appeal. If properly exercised by Holder, the Company waives the right to contest Holder's rights under this Section 2(b), including without limitation the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single exercise of the foregoing right and power to confess judgment will be deemed to exhaust such power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void, and such power shall continue undiminished and may be exercised from time to time as the Holder may elect until all amounts owing on this Note have been paid in full.

(3) <u>REISSUANCE OF THIS NOTE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>Assignability.</u> The Company may not assign this Note. This Note will be binding upon the Company and its successors and will inure to the benefit of the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing without Company's approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) <u>Lost, Stolen or Mutilated Note</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note representing the outstanding Principal.

(4) <u>NOTICES</u>. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) (iii) upon receipt, when sent by email; or (iv) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be those set forth in the communications and documents that each party has provided the other immediately preceding the issuance of this Note or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) business days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

The addresses for such communications shall be: If to the Company, to:

DIRECT COMMUNICATION SOLUTIONS, INC.

ATTN: CHRIS BURSEY, CEO

11021 Via Frontera, Suite C San Diego, CA 92127

Email: CBursey@dcsbusiness.com

If to the Holder:

INDICATOR GLOBAL CAPITAL, INC. ATTN: LAN YAO, DIRECTOR

#622 - 602 West Hasting Street Vancouver, BC

Email: indicatorgc@outlook.com

(5) <u>APPLICABLE LAW AND VENUE</u>. This Note shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to conflicts of laws thereof. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Delaware or in the federal courts located in the state of Delaware. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

(6) <u>WAIVER</u>. Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

(7) <u>LIQUIDATED DAMAGES</u>. Holder and Company agree that in the event Company fails to comply with any of the terms or provisions of this Note, Holder's damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties' inability to predict future interest rates and other relevant factors. Accordingly, Holder and Company agree that any fees, balance adjustments, default interest or other charges assessed under this Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages.

**[Signature Page Follows]**

**IN WITNESS WHEREOF**, the Company has caused this Note to be duly executed by a duly authorized officer as of the date set forth above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| By: | /s/ Christopher S. Bursey |
| Name: | Chris Bursey |
| Title: | Chief Executive Officer |
| **HOLDER:** | **HOLDER:** |
| **INDICATOR GLOBAL CAPITAL, INC.** | **INDICATOR GLOBAL CAPITAL, INC.** |
| By: | /s/ Lan Yao |
| Name: | LAN YAO |
| Title: | Director |

---

*[Signature Page to Note No. ____]*

 

EXHIBIT A

[GUARANTY]

**GUARANTY**

This Guaranty, dated as of July 10, 2025, is made by and between Christopher S. Bursey (***"Guarantor"***), and Indicator Global Capital, Inc. (***"Lender"***).

<u>RECITALS</u>

On July 10, 2025, Direct Communication Solutions, Inc., a Delaware corporation (***"Borrower"***), issued a Secured Convertible Promissory Note (the ***"Note"***) in the principal amount of $1,386,000.00. A material element of the Note is this Guaranty.

**NOW, THEREFORE,** in consideration of the premises and in order to induce Lender to consummate the transactions contemplated by the Agreement, Guarantor hereby agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Guaranty.** Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all obligations of Borrower under the Note (the ***"Obligations"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Guaranty Absolute.** Guarantor guarantees that the Obligations will be performed strictly in accordance with their terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Lender with respect thereto; and if such Obligations are not performed accordingly, Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all Obligations (including, but not limited to, payment). The liability of Guarantor is primary, direct and independent of the obligations of Borrower pursuant to the Note. This Guaranty shall be enforceable against Guarantor in the same manner as if Guarantor were the primary obligor. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** any defense which Guarantor may assert including, but not limited to, failure of consideration, breach of warranty, fraud, payment, statute of frauds, bankruptcy, lack of legal capacity, statute of limitations, lender liability, accord and satisfaction and usury; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** any other circumstance which might otherwise constitute a defense available to, or a discharge of, Guarantor.

None of the foregoing waivers shall prejudice Lender's rights under the Note. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by Lender upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made.

**GUARANTY \| PAGE 1**

Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, should Guarantor deliver the Collateral to Lender in accordance with the terms of the Security Agreement upon Borrower's failure to fully and promptly perform its Obligations under the Note, then Guarantor's guaranty hereunder shall be deemed to be fully satisfied and Guarantor shall have no further liability to Lender hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Matters Being Waived.** Guarantor hereby waives promptness, diligence, notice of acceptance, and any other notice with respect to any of the obligations of the Note and this Guaranty and any requirement that Lender exhausts any right or take any action against Borrower or any other person or entity or any collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Governing Law.** This Guaranty shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Guaranty shall be brought only in the state courts of Delaware or in the federal courts located in the City of Wilmington, Delaware. The parties to this Guaranty hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Guarantor waives trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Guaranty or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Guaranty, any agreement or any other document delivered in connection with this Guaranty by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Miscellaneous Provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Amendments.** No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

**GUARANTY \| PAGE 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) No Waiver; Remedies.** No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Headings.** The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Severability.** If any provision of this Guaranty for any reason shall be held to be illegal, invalid or unenforceable, such illegality shall not affect any other provision of this Guaranty, this Guaranty shall be amended so as to enforce the illegal, invalid or unenforceable provision to the maximum extent permitted by applicable law, and the parties shall cooperate in good faith to further modify this Guaranty so as to preserve to the maximum extent possible the intended benefits to be received by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Continuing Guaranty.** This Guaranty is a continuing guaranty and shall (1) remain in full force and effect until payment in full of the obligations of the Note and all other amounts payable under this Guaranty, (2) be binding upon Guarantor, his successors and assigns, and (3) inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns.

**IN WITNESS WHEREOF,** Guarantor has duly executed and delivered this Guaranty as of the date first above written.

---

| |
|:---|
| **GUARANTOR:** |
| /s/ Christopher S. Bursey |
| Christopher S. Bursey, individually |

---

**GUARANTY \| PAGE 3**

EXHIBIT B

[AFFIDAVIT OF CONFESSION OF JUDGMENT]

SUPERIOR COURT OF THE STATE OF DELAWARE COUNTY OF NEW CASTLE

---

| | |
|:---|:---|
| INDICATOR GLOBAL CAPITAL, INC, |  |
|  | **AFFIDAVIT PERTAINING** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff, | **CONFESSION OF** |
|  | **JUDGMENT TO BY NON-** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vs. | **RESIDENT PURSUANT TO** |
|  |  **<u>10 DEL. C. §2306</u>** |

---

DIRECT COMUNICATION SOLUTIONS, INC.,

Defendant.

---

| |
|:---|
| STATE OF DELAWARE |
| COUNTY OF NEW CASTLE |

---

Christopher S. Bursey, being duly sworn, hereby deposes and says:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I, Christopher S. Bursey, am the Chief Executive Officer of Defendant Direct Communication Solutions, Inc., a corporation organized under the laws of the State of Delaware (the ***"Defendant"***). As such, I am fully familiar with all the facts and circumstances recited herein upon personal involvement and firsthand knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I, on behalf of the Defendant, make this Affidavit of Confession of Judgment pursuant to 10 Del. C. §2306(c) and in support of the confessions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Indicator Global Capital, Inc. (***"Indicator Global"*** or ***"Plaintiff"***) is a _________ corporation having a principal place of business located at ____________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Defendant hereby confesses judgment in favor of Indicator Global in the amount of up to $1,386,000.00 or the principal amount due in connection with one or more tranches advanced under the Note (defined below), less any payments made on or after the date of this affidavit of confession of judgement (the ***"Confession of Judgment"***). In no event shall interest payable hereunder exceed the maximum permissible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. As stated above, Plaintiff is a corporation organized and existing under the laws of _____________. Defendant Direct Communication Solutions, Inc., is a corporation organized and existing under the laws of the State of Delaware. The Defendant has a mailing address located at 11021 Via Frontera, Suite C, San Diego, California 92127.

Page 1 of 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Plaintiff and Defendant agreed to subject themselves to the laws of the State of Delaware and the jurisdiction of the State of Delaware under the subject Note, as further provided herein. Furthermore, as required by 10 Del. C. §2306(c)(2), Plaintiff and Defendant have agreed to, and authorized, the entry the Confession of Judgment in the Superior Court of the State of Delaware in the County of New Castle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. This Confession of Judgment is for a debt justly due to Plaintiff from Defendant, pursuant to the terms of that certain Secured Promissory Note issued by Defendant to Indicator Global on July 10, 2025, in the original principal amount of up to $1,386,000.00 or so much as has been advanced in one or more tranches plus an original issue discount equal to 10% of the principal amount (the ***"Note"***), and Defendant hereby authorizes the State of Delaware to enter judgment against Defendant in the amount of (i) up to $1,386,000.00 or the principal amount due in connection with one or more tranches advanced under the Note, less any payments made on, prior to, or after the date of this Confession of Judgment, plus (ii) interest, fees, and penalties, pursuant to the terms of the Note, including a default interest rate of 18% per annum on said amount from the date of any default, until said amount is paid in full, including following the entry of a judgment in favor of Holder, based upon the occurrence of an event of default under the Note, without prejudice to Plaintiff's other claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. In order to secure these obligations, Defendant agreed to simultaneously deliver with the execution of the Note this Confession of Judgment. Defendant hereby authorizes the entry of a monetary judgment obtained pursuant to the Confession of Judgment in the Delaware State Superior Court, New Castle County, under the circumstances specified in paragraph 4 of this Confession of Judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Three (3) days prior to the entry of the Confession of Judgment, written notice shall be provided to Defendant at the following address(es):

Direct Communication Solutions, Inc.

11021 Via Frontera, Suite C

San Diego, California 92127

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The sums confessed pursuant to this Confession of Judgment are justly due and owing to Plaintiff under the following circumstances: Defendant entered into the Note in favor of Plaintiff, Indicator Global Capital, Inc., and Defendant is in default under said Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Defendant agreed to pay any and all costs, penalties, and expenses incurred by Indicator Global in enforcing the terms of this Confession of Judgment and under the Note, as are set forth in the Note including attorneys' fees, penalties, costs, fees, and any and all items set forth in the Note. Such a claim for additional damages and penalties related to the Default on the Note, including attorneys' fees and additional claims and damages related to Default on the Note, must be addressed by the Court and are not included in this Confession of Judgment. This Confession of Judgment is without prejudice to said claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. This document shall be held in escrow until default.

[*signature page follows*]

Page 2 of 3

---

| | |
|:---|:---|
| **Direct Communication Solutions, Inc.** | **Direct Communication Solutions, Inc.** |
| By: | /s/ Christopher S. Bursey |
| Name: | Chris Bursey |
| Title: | CEO |

---

**ACKNOWLEDGMENT**

STATE OF ____________________)) ) ss.: <br> COUNTY OF ____________________))

On ________________________, 2025, personally appeared ____________, as principal agent on behalf of Direct Communication Solutions, Inc., personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the forgoing Affidavit of Confession of Judgment on behalf of Direct Communication Solutions, Inc., in his capacity as agent for Direct Communication Solutions, Inc., as is set forth above.

  <br> Notary Public

[*signature page to Confession of Judgment*

Page 3 of 3

## Exhibit 10.7

**Exhibit 10.7**

**INDEMNIFICATION AGREEMENT**

THIS INDEMNIFICATION AGREEMENT (the "**Agreement**") is made and entered into as of the ___ day of _________ 202_, by and between Direct Communication Solutions, Inc., a Delaware corporation (the "**Company**"), and _________________ ("**Indemnitee**").

**WITNESSETH THAT:**

**WHEREAS**, highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

**WHEREAS**, the Board of Directors of the Company (the "**Board**") has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware ("**DGCL**"). The certificate of incorporation, as amended, (the "**Certificate**"), the Bylaws, as amended (the "**Bylaws**") and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;

**WHEREAS**, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

**WHEREAS**, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

**WHEREAS**, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

**WHEREAS**, this Agreement is a supplement to and in furtherance of the Certificate, Bylaws and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and

**WHEREAS**, Indemnitee does not regard the protection available under the Certificate, Bylaws and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified.

**NOW, THEREFORE**, in consideration of Indemnitee's agreement to serve as a director from and after the date hereof, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Indemnity of Indemnitee</u>. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Proceedings Other Than Proceedings by or in the Right of the Company</u>. Indemnitee shall be entitled to the rights of indemnification provided in this <u>Section l(a)</u> if, by reason of Indemnitee's Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company. Pursuant to this <u>Section 1(a)</u>, Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe the Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Proceedings by or in the Right of the Company</u>. Indemnitee shall be entitled to the rights of indemnification provided in this <u>Section 1(b)</u> if, by reason of Indemnitee's Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company. Pursuant to this <u>Section 1(b)</u>, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee, or on the Indemnitee's behalf, in connection with such Proceeding if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; <u>provided</u>, <u>however</u>, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification Appointing Stockholder</u>. If (i) Indemnitee is or was affiliated with one or more venture capital funds that has invested in the Company (an "**Appointing Stockholder**"), and (ii) the Appointing Stockholder is, or is threatened to be made, a party to or a participant in any Proceeding relating to or arising by reason of Appointing Stockholder's position as a stockholder of, or lender to, the Company, or Appointing Stockholder's appointment of or affiliation with Indemnitee or any other director, including, without limitation, any alleged misappropriation of a Company asset or corporate opportunity, any claim of misappropriation or infringement of intellectual property relating to the Company, any alleged false or misleading statement or omission made by the Company (or on its behalf) or its employees or agents, or any allegation of inappropriate control or influence over the Company or its Board members, officers, equity holders or debt holders, then the Appointing Stockholder will be entitled to indemnification hereunder for Expenses to the same extent as Indemnitee, and the terms of this Agreement as they relate to procedures for indemnification of Indemnitee and advancement of Expenses shall apply to any such indemnification of Appointing Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Additional Indemnity</u>. In addition to, and without regard to any limitations on, the indemnification provided for in <u>Section 1</u> of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee's behalf if, by reason of Indemnitee's Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company's obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in <u>Sections 6</u> and <u>7</u> hereof) to be unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Contribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whether or not the indemnification provided in <u>Sections 1</u> and <u>2</u> hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such action, suit or proceeding arose; <u>provided</u>, <u>however</u>, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Indemnification for Expenses of a Witness</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Advancement of Expenses</u>. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee's Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this <u>Section 5</u> shall be unsecured and interest free.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Procedures and Presumptions for Determination of Entitlement to Indemnification</u>. It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the DGCL and public policy of the State of Delaware. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification. Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially prejudices the interests of the 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;(b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of <u>Section 6(a)</u> hereof, a determination with respect to Indemnitee's entitlement thereto shall be made in the specific case by one of the following four (4) methods, which shall be at the election of the Board (1) by a majority vote of the disinterested directors, even though less than a quorum, (2) by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than a quorum, (3) if there are no disinterested directors or if the disinterested directors so direct, by independent legal counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee, or (4) if so directed by the Board, by the stockholders of the Company. For purposes hereof, disinterested directors are those members of the Board who are not parties to the action, suit or proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to <u>Section 6(b)</u> hereof, the Independent Counsel shall be selected as provided in this <u>Section 6(c)</u>. The Independent Counsel shall be selected by the Board. Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "**Independent Counsel**" as defined in <u>Section 13</u> of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to <u>Section 6(a)</u> hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other court of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the Company's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under <u>Section 6(b)</u> hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to <u>Section 6(b)</u> hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this <u>Section 6(c)</u>, regardless of the manner in which such Independent Counsel was selected or appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise (as hereinafter defined), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this <u>Section 6(e)</u> are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the person, persons or entity empowered or selected under <u>Section 6</u> to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; <u>provided</u>, <u>however</u>, that such sixty (60) day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and <u>provided further</u>, that the foregoing provisions of this <u>Section 6(f)</u> shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to <u>Section 6(b)</u> of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Board or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel, member of the Board or stockholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnitee's entitlement to indemnification under this Agreement. Any costs or expenses (including attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies of Indemnitee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that (i) a determination is made pursuant to <u>Section 6</u> of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to <u>Section 5</u> of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to <u>Section 6(b)</u> of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to <u>Section 6</u> of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent jurisdiction, of Indemnitee's entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this <u>Section 7(a)</u>. The Company shall not oppose Indemnitee's right to seek any such adjudication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a determination shall have been made pursuant to <u>Section 6(b)</u> of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this <u>Section 7</u> shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under <u>Section 6(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination shall have been made pursuant to <u>Section 6(b)</u> of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this <u>Section 7</u>, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that Indemnitee, pursuant to this <u>Section 7</u>, seeks a judicial adjudication of Indemnitee's rights under, or to recover damages for breach of, this Agreement, or to recover under any directors' and officers' liability insurance policies maintained by the Company, the Company shall pay on Indemnitee's behalf, in advance, any and all expenses (of the types described in the definition of Expenses in <u>Section 13</u> of this Agreement) actually and reasonably incurred by Indemnitee in such judicial adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this <u>Section 7</u> that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Exclusivity; Survival of Rights; Insurance; Subrogation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate, the Bylaws, any agreement, a vote of stockholders, a resolution of directors of the Company, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the DGCL, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Certificate, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has directors' and officers' liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in paragraph (b) above, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee (other than against the Fund Indemnitors), who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as provided in paragraph (b) above, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as provided in paragraph (b) above, the Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Exception to Right of Indemnification</u>. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of <u>Section 16(b)</u> of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Duration of Agreement</u>. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and for a period of five (5) years following the end of the Indemnitee's term of service as an officer or director of the Company and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding commenced under <u>Section 7</u> hereof) by reason of his Corporate Status, whether or not Indemnitee is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Security</u>. To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the 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;(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to receive advancement of expenses under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Corporate Status**" describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the express written request of the 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;(b) "**Disinterested Director**" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Enterprise**" shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Expenses**" shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding and any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, including without limitation the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Independent Counsel**" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Proceeding**" includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of Indemnitee's Corporate Status, by reason of any action taken by Indemnitee or of any inaction on Indemnitee's part while acting in Indemnitee's Corporate Status; in each case whether or not Indemnitee is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to <u>Section 7</u> of this Agreement to enforce Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. Further, the invalidity or unenforceability of any provision hereof as to either Indemnitee or Appointing Stockholder shall in no way affect the validity or enforceability of any provision hereof as to the other. Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee and Appointing Stockholder indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Modification and Waiver</u>. No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Notice By Indemnitee</u>. Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To Indemnitee at the address set forth below Indemnitee signature hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the Company at:

Direct Communication Solutions, Inc.<br> 11021 Via Frontera, Suite C

San Diego, CA 92127<br> Attention: Chris Bursey

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Governing Law and Consent to Jurisdiction.</u> This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the day and year first above written.

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| By: |  |
| Name: | Chris Bursey |
| Title: | Chief Executive Officer |
| **INDEMNITEE** | **INDEMNITEE** |
| By: |  |
| Name: |  |
| Address: | Address: |

---

## Exhibit 10.8

**Exhibit 10.8**

**<u>RELEASE AGREEMENT</u>**

**THIS RELEASE AGREEMENT** (the "**Agreement**") effective as of the date executed by Employee, below (the "**Effective Date**").

**BETWEEN:**

**Direct Communications Solutions, Inc.**, a body corporate duly continued under the laws of the State of Delaware having a head office located at 11021 Via Frontera Suite C, San Diego, CA 92127 and an email address for notice under this Agreement of billespley@gmail.com,

(the "**Corporation**" or "**Employer**")

**OF THE FIRST PART**

**Chris Bursey*,*** of 8526 Blackburn Lane, San Diego, CA, 92127 and an email address for notice under this Agreement of CBursey@dcsbusiness.com

("**Bursey**" or "**Employee**")

**OF THE SECOND PART.**

**WHEREAS:**

A. Chris Bursey as of the date of this Agreement is the Chief Executive Officer of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Corporation is undergoing a reorganization of its business affairs assisted by an initial public offering
and the uplisting of its shares of common stock from the Canadian Securities Exchange to a senior United States stock exchange including
the NYSE American or NASDAQ the parties wish to terminate, amend or carry out both in regard of all arrangements between them in an amicable
fashion; and

C. Consistent with the foregoing, and in conjunction with the execution of this Agreement, the Parties entered
into an amended Employment Agreement, pursuant to which Bursey will assume a non-executive employee position with the Corporation, with
the title of "Founder"; and

D. The parties desire to resolve any and all disputes, claims, or potential claims that may exist between
them as of the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. In consideration for Employee's release of claims as set forth herein, the Company agrees to provide Employee
with continued employment, additional compensation, and stock option grants as more particularly described in this Agreement.

**NOW THEREFORE IN CONSIDERATION** of the mutual covenants and agreement contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. The Corporation shall make a direct payment to Bursey's credit card companies in the aggregate amount
of US$93,768.64 which Bursey represents and warrants such amount are bona fide amounts expensed on behalf of the Corporation for which
he will provide receipts and other documentary evidence to the accountants and auditors of the Corporation to evidence same. To facilitate
payment, Bursey shall provide the payment account details for such payment or payments to be made. The Corporation shall make such payments
within ten (10) business days of receipt of the foregoing information from Bursey and Execution of this Agreement. Following such payment
or payments, the Corporation shall be deemed to be irrevocably and fully released and discharged from any credit card debt Bursey incurred
up through the Effective Date.

2. Bursey's salary shall remain at US$10,000 per month until the completion of an initial public offering
and the commencement of trading of the shares of common stock (to be named "Class A" shares) on the NYSE American or NASDAQ
stock exchanges (collectively, the "**IPO**") , and thereafter shall increase to US$20,000 per month for a term of one
(1) year after the IPO. The parties shall enter into the Employment Agreement attached as Schedule "A" which shall supersede
any prior employment agreement between Bursey and the Corporation.

3. Upon completion of the IPO, any and all outstanding balances on the current high interest loan agreements
and the bridge loan that Bursey has personally guaranteed will be paid in full from the proceeds of the financing of the IPO.

4. In connection with and upon the completion of the IPO, Bursey shall be granted that number of incentive
stock options equal to US$400,000 divided by the IPO offering price of the Class A shares, which incentive stock options shall vest in
accordance with the following schedule: 50% of the incentive stock options shall vest on the 1st anniversary date of the IPO and the remaining
50% of the incentive stock options shall vest on the 180<sup>th</sup> day following such 1<sup>st</sup> anniversary of the IPO.

5. For the better facilitation of the IPO financing, and consistent with the Employment Agreement (Schedule
A), Bursey agrees to resign as CEO and director of the Corporation and adopt the title of "Founder" while remaining as an
employee. As set forth in Schedule A, if Bursey has carried out his duties satisfactorily, in the Board's reasonable discretion,
through the one year anniversary of the IPO, Bursey shall be entitled to receive a bonus payment of US $200,000.

6. Bursey acknowledges that following his resignation as CEO and director, Bursey will no longer represent
the Corporation in any manner and will forward all contacts and messaging with investment dealers, shareholders, debt holders or potential
investors to Bill Espley and David Scowby.

7. Upon the execution of this Agreement and the new Employment Agreement attached as Schedule "A",
Bursey shall maintain a normal work schedule from the company's offices that focuses on creating sales and continuing customer relations.

8. <u>Release</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Employee's General Release and Waiver of Claims.</u> 

In exchange for the consideration provided in this Agreement, the Employee and the Employee's heirs, executors, representatives, administrators, agents, and assigns (collectively, the "**Releasors**") irrevocably and unconditionally fully and forever waive, release, and discharge the Employer, including the Employer's parents, subsidiaries, affiliates, predecessors, successors, and assigns, and each of its and their respective officers, directors, employees, and shareholders, in their corporate and individual capacities (collectively, the "**Released Parties**"), from any and all claims, demands, actions, causes of actions, judgments, rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys' fees) of any kind whatsoever, whether known or unknown (collectively, "**Claims**"), that the Releasors may have or have ever had against the Released Parties, or any of them, by reason of any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter from the beginning of time up to and including the date of the Employee's execution of this Agreement, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all claims under Title VII of the Civil Rights Act
of 1964 (Title VII), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA) (regarding existing but not prospective
claims), the Fair Labor Standards Act (FLSA), the Employee Retirement Income Security Act (ERISA) (regarding unvested benefits), the
Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair Credit Reporting Act (FCRA), the California Fair Employment and Housing
Act (FEHA), the California Labor Code, the California Constitution, the California Family Rights Act (CFRA), and the California Consumer
Privacy Act (CCPA), all including any amendments and their respective implementing regulations, and any other federal, state, local,
or foreign law (statutory, regulatory, or otherwise) that may be legally waived and released; however, the identification of specific
statutes is for purposes of example only, and the omission of any specific statute or law shall not limit the scope of this general release
in any manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any and all claims arising under tort, contract, and quasi-contract law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any and all claims for compensation of any type whatsoever,
including but not limited to claims for wages, salary, bonuses, commissions, incentive compensation, vacation, sick pay, and severance
that may be legally waived and released; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any and all claims for monetary or equitable relief, including
but not limited to attorneys' fees, back pay, front pay, reinstatement, experts' fees, medical fees or expenses, costs and disbursements,
punitive damages, liquidated damages, and penalties.

However, this general release and waiver of claims excludes, and the Employee does not waive, release, or discharge: (A) claims that cannot be waived by law, such as claims for workers' compensation; and (B) any right to file an unfair labor practice (ULP) charge under the National Labor Relations Act or participate or assist in proceedings before the National Labor Relations Board (NLRB) (C) indemnification rights the Employee has against the Employer.

This general release and waiver of claims also excludes, and the Employee does not waive, release, or discharge: (AA) the right to file an administrative charge or complaint with, or testify, assist, or participate in an investigation, hearing, or proceeding conducted by or before, or provide information to any government agencies about a condition or violation of law; and (BB) the right to seek or receive a monetary award from a government-administered whistleblower award program, except that the Employee waives any right to monetary relief related to an administrative charge or complaint with the Equal Employment Opportunity Commission (EEOC), the California Civil Rights Department (CRD), or any state or local fair employment practices agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver of California Civil Code Section 1542.</u> 

This Agreement is intended to be effective as a general release of and bar to all claims as stated in this Section. Accordingly, the Releasors specifically waive all rights under California Civil Code Section 1542, which states, "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY." The Employee acknowledges that the Employee may later discover claims or facts in addition to or different from those which the Employee now knows or believes to exist with regards to the subject matter of this Agreement, and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms. Nevertheless, the Releasors waive any and all Claims that might arise as a result of such different or additional claims or facts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Specific Release of ADEA Claims.</u> 

In further consideration of the payments and benefits provided to the Employee in this Agreement, the Releasors hereby irrevocably and unconditionally fully and forever waive, release, and discharge the Released Parties from any and all Claims, whether known or unknown, from the beginning of time through the date of the Employee's execution of this Agreement, arising under the Age Discrimination in Employment Act (ADEA), as amended, and its implementing regulations. By signing this Agreement, the Employee hereby acknowledges and confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Employee has read this Agreement in its entirety and
understands all of its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by this Agreement, the Employee has been advised in writing
to consult with an attorney of the Employee's choosing and has consulted with such counsel as the Employee believed was necessary before
signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Employee knowingly, freely, and voluntarily agrees to
all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained
in it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Employee is signing this Agreement, including the waiver
and release, in exchange for good and valuable consideration in addition to anything of value to which the Employee is otherwise entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Employee was given at least twenty-one (21) days to consider
the terms of this Agreement and consult with an attorney of the Employee's choice, although the Employee may sign it sooner if desired
and changes to this Agreement, whether material or immaterial, do not restart the running of the 21-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Employee understands that the Employee has seven (7)
days after signing this Agreement to revoke the release in this paragraph 8(c) by delivering notice of revocation to Bill Espley by receipted
email (billespley@gmail.com) before the end of this seven-day period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Employee understands that the release contained in this
paragraph does not apply to rights and claims that may arise after the Employee signs this Agreement.

9. Each of the parties hereby covenants and agrees that at any time upon the request of the other party,
do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments,
transfers, conveyances, powers of attorney and assurances as may be required for the better carrying out and performance of all the terms
of this Agreement. This Agreement will be governed by and be construed in accordance with the laws of California. This Agreement will
be binding upon and enure to the benefit of the parties hereto and their respective heirs and executors and successors and assigns as
the case may be. This Agreement may not be assigned without the prior written consent of the other party. This Agreement constitutes the
entire agreement between the parties and supersedes all prior letters of intent, agreements, representations, warranties, statements,
promises, information, arrangements and understandings, whether oral or written, express or implied. The recitals and any schedules form
a part of and are incorporated by reference into this Agreement. No modification or amendment to this Agreement may be made unless agreed
to by the parties thereto in writing. In the event any provision of this Agreement will be deemed invalid or void, in whole or in part,
by any court of competent jurisdiction, the remaining terms and provisions will remain in full force and effect. Time is of the essence.
Any notice required or permitted to be given or delivery required to be made to any party may be effectively given or delivered if it
is delivered personally at the addresses or telephone numbers set out above or to such other address or telephone number as the party
entitled to or receiving such notice may notify the other party as provided for herein. Delivery shall be deemed to have been received:
(i) the same day if given by personal service or e-mail; and (ii) the fifth business day next following the day of posting if sent by
regular post. This Agreement may be executed in any number of counterparts with the same effect as if all parties to this Agreement had
signed the same document and all counterparts will be construed together and will constitute one and the same instrument and any facsimile
signature shall be taken as an original.

**IN WITNESS WHEREOF** the Parties hereto have executed this Agreement as of the date first written above.

**DIRECT COMMUNICATIONS SOLUTIONS, INC.**

---

| | |
|:---|:---|
| Per: | |
|  | William F. Espley |
|  | Chairman |
| /s/ CHRIS BURSEY | /s/ CHRIS BURSEY |
| **CHRIS BURSEY** | **CHRIS BURSEY** |
| Date: | September 24, 2025 |

---

**SCHEDULE "A"**

**<u>EMPLOYMENT AGREEMENT</u>**

THIS EMPLOYMENT AGREEMENT ("<u>Agreement</u>") is entered into as of the date executed by Employee below (the "<u>Effective Date</u>"), by and between Direct Communication Solutions, Inc., a Delaware corporation (the "<u>Company</u>") and Christopher Bursey ("<u>Employee</u>"). This Agreement supersedes and replaces in its entirety any and all prior employment agreements between the parties, including without limitation the employment agreement dated September 30, 2010 (the "Prior Agreement"), which shall be of no further force or effect as of the Effective Date.

WHEREAS, Employee having served as Chief Executive Officer of the Company will continue to support the Company as a non-executive employee of the Company with the title of "Founder";

WHEREAS, Employee and the Company desire to enter into this Agreement and to set forth the terms and conditions of Employee's continued employment with the Company until the one year anniversary of the Company's initial public offering, subject to any further extensions or modifications of this Agreement mutually agreed to in writing by the Parties and based upon the Company's review of Employee's performance.

NOW, THEREFORE, In consideration of the mutual covenants and obligations herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Engagement; Nature of Duties</u>**. Employee shall continue to be employed by the Company and will have the title of Founder of the Company. Employee shall perform such duties as may be assigned to Employee from time to time by the Company's Board of Directors (the "<u>Board</u>") (or committee thereof). The Employee shall devote the Employee's full time and attention to the Employee's duties hereunder; provided, however, that, with advance notice to the Board and subject to the Board's prior written consent, the Employee shall be permitted to participate (including as a board member) in civic, charitable and religious organizations during the Employment Period. The Employee agrees to abide by the rules, regulations, and personnel practices and policies of the Company, as adopted and amended from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>At Will Employment</u>**. Employee's employment under this Agreement will become effective on the Effective Date and shall continue at will until terminated in accordance with the provisions of Section 5 (the "<u>Employment Period</u>"), subject to Section 6, or until the one year anniversary of the Company's initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>**Compensation and Benefits**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Base Salary</u>**. During the Employment Period, the Company shall pay to Employee a base compensation ("<u>Base Salary</u>") in the amount of One Hundred Twenty Thousand Dollars ($120,000) per annum until the completion of an initial public offering and the commencement of trading of the shares of common stock (to be named "Class A" shares on with the NYSE American or NASDAQ stock exchanges and immediately thereafter, beginning with the first complete pay period following the initial public offering, shall increase to Two Hundred Forty Thousand Dollars ($240,000) per annum, with either of the foregoing salaries payable in periodic installments in accordance with the Company's customary payroll practices in effect from time to time. Employee's Base Salary shall be subject to all applicable withholdings and deductions. Employee's Base Salary shall be subject to review no less frequently than annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Bonus</u>**. During the Employment Period, Employee shall be eligible to participate in any Employee bonus plan adopted by the Company (the "<u>Annual Bonus</u>"). In addition, if the Employee has performed his duties as prescribed by this Agreement under Section 1 satisfactorily in the reasonable discretion of the Board of Directors, through the one year anniversary of the Company's initial public offering, the Employee shall be entitled to a performance bonus of $200,000 ("Retention Bonus"); provided, Employee must be employed up through the date of the one year anniversary of the Company's initial public offering to be eligible for this Retention Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Expense Reimbursement</u>**. The Company shall reimburse Employee for any and all reasonable business expenses actually incurred by Employee in the performance of Employee's duties during the Employment Period, provided that such expenses are incurred in accordance with any policies or directives of the Company regarding reimbursement of business expenses now or hereafter adopted by the Company, and subject to Employee providing appropriate supporting documentation, reasonably acceptable to the 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;(d) **<u>Employee Benefits</u>**. During the Employment Period, Employee shall be permitted to participate in any regular health insurance and disability insurance programs maintained from time to time by the Company for the benefit of its senior-level Employee employees generally, subject only to any eligibility or membership restrictions of such programs. Employee shall also have the right to participate in any and all benefit, retirement or insurance programs now or hereafter maintained by the Company for the benefit of its senior Employee-level employees generally subject only to any eligibility or membership restrictions of such programs. Employee's tenure with the Company for purposes of determining eligibility, payments and benefit levels under any Company benefit and welfare plan shall be based on Employee's original start date with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Other</u> <u>Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Equity Compensation</u>**. During the Employment Period, the Employee shall be eligible to participate in and receive equity grants under the Company's 2017 Stock Plan (or any successor plan thereto) from time to time, at the discretion of the Board (or an authorized committee thereof) and in accordance with the terms and conditions of such plans and as may be established by the Board with respect to any grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Termination of the Employment Period</u>.** The employment of the Employee by the Company pursuant to this agreement shall terminate upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>By the Company for Cause</u>**. At the election of the Company, the Employee's employment may be terminated for Cause. For purposes of this Agreement, "<u>Cause</u>" means (i) the Employee's conviction of, or guilty plea or plea of nolo contendere to, a felony or a crime involving moral turpitude, (ii) the Employee's commission of any crime involving fraud or material dishonesty in connection with the Employee's employment by the Company, (iii) the Employee's willful failure to substantially perform the Employee's duties to the Company or a material breach of this Agreement, in each case after written notice to the Employee and the failure to cure within thirty (30) days thereafter (unless such act or omission, by its nature, may not be remedied), (iv) Employee's willful misconduct or gross negligence, or (v) Employee's breach of any code of conduct, code of ethics, securities trading policy or other material written policy of the 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;(b) **<u>Death or Disability</u>**. Upon the death of the Employee or written notice by the company to the Employee of termination of the Employee for Disability (as defined below) given while the Employee remains Disabled. For purposes of this Agreement, "<u>Disability</u>" means (i) the Employee has been incapacitated by mental or physical injury or illness so as to be prevented thereby from engaging the performance of the Employee's duties to the Company and (ii) such incapacity has continued for a period of one hundred eighty (180) consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>By the Employee for Good Reason</u>**. At the Election of the Employee, for Good Reason, provided that the Employee provides the Company with written notice of any event alleged to constitute Good Reason within thirty (30) days of the occurrence of such event and the Company shall have sixty (60) days to cure in all material respects such Good Reason event(s) following the Company's receipt of the Employee's written notice of such Good Reason event(s). For purposes of this Agreement, "Good Reason" for termination shall mean a (i) a material change or reduction in the Employee's authority, duties and responsibilities; (ii) transfer of the Employee to another work location that is greater than 30 miles from Employee's current primary work location; or (iii) material reduction in the Employee's Base Salary (other than an across-the-board reduction affecting similarly situated senior Employees of the Company). In all cases any termination by the Employee for Good Reason shall occur no later than six (6) months following the occurrence of the event giving rise to the Good Reason event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>By the Company not for Cause; By the Employee without Good Reason</u>**. At the election of the Company for reasons other than Cause, or at the election of the Employee for reasons other than Good Reason, upon not less than thirty (30) days' prior written notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Effect of Termination</u>**. The Employee shall be entitled to receive the following payments in connection with a termination of Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Employee's employment is terminated pursuant to Section 5(a), as a result of the Employee's death or Disability pursuant to Section 5(b), or by the Employee pursuant to Section 5(d), or Employee is terminated for any reason following the one year anniversary of the Company's initial public offering, the Company shall pay to the Employee (or the Employee's designated representative or estate) the "<u>Accrued Benefits</u>," which shall mean: (i) any earned by unpaid Base Salary pursuant to Section 3(a) through the last day of the Employee's actual employment by the Company; (ii) any accrued but unused PTO in accordance with the terms of applicable law; (iii) any unreimbursed business expenses incurred through the last day of the Employee's actual employment by the Company and reimbursable to the Employee pursuant to Section 3(c); and (iv) all other payments, benefits or fringe benefits to which the Employee is entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant pursuant to this Agreement; provided, however, the Company shall have no obligation to pay to the Employee any amounts pursuant to Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Employee's employment is terminated before the one year anniversary of the Company's initial public offering, either by the Employee pursuant to Section 5(c) or by the Company pursuant to Section 5(d), the Company shall pay or provide to the Employee: (i) the Accrued Benefits; (ii) any unpaid Annual Bonus with respect to the calendar year ending on or preceding the date of termination, which shall be payable at the same time such bonus would have been if the Employee were still employed with the Company and in accordance with Section 3(b); and (iii) an amount equal to fifty percent (50%) of the Employee's then-current Base Salary (at the rate in effect prior to any reduction that constitutes Good Reason), payable in a lump sum on the sixtieth (60<sup>th</sup>) day following Employee's termination of employment and (iv) payments of COBRA premiums for six (6) months following termination. In addition, all of Employee's outstanding equity awards granted from and after the Effective Date shall become immediately vested for the portion that would have vested or become exercisable had employment continued through the next vesting date provided that the initial vesting date for such equity award occurred prior to the Employee's termination date. The payments due to the Employee under clause (iv) shall begin on the sixtieth (60<sup>th</sup>) day after the date of termination and shall include any amounts due to be paid to the Employee prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The payments to be made or benefits to be provided to the Employee under Section 6(b), other than the Accrued Benefits: (i) shall be contingent upon the execution and non-revocation within sixty (60) days following termination of employment by the Employee of a general release of the Company, its affiliates, stockholders, directors, officers, employees and agents from any and all claims (other than claims for payments to be made or benefits to be provided) in the form used by the Company at the time of termination, and (ii) shall constitute the sole remedy of the Employee in the event of a termination of the Employee's employment in the circumstances set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Non-Competition During Term</u>**. The Employee will not, during the Employment Period, engage in competition with the Company or any of its Affiliates, either directly or indirectly, in any manner or capacity, as advisor, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Non-Disparagement**. The Employee agrees and covenants that the Employee will not make, publish, or communicate defamatory or disparaging remarks, comments, or statements concerning any of the Company's products or services. The Employee agrees and covenants that the Employee will not at any time make, publish, or communicate to any person or entity or in any public forum any maliciously false, defamatory, or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, or officers, now or at any time in the future. Nothing in this Agreement shall affect any right the Employee may have under Section 7 of the National Labor Relations Act (NLRA), including the right to file unlawful labor practice (ULP) charges or to participate, assist, or cooperate in ULP investigations, or otherwise disclose information as permitted by law. The Employee is permitted to discuss the terms and conditions of employment with coworkers, the media, or others for mutual aid or protection.

This Section does not restrict or impede the Employee from exercising any rights to communicate with securities regulators or any other administrative or regulatory agency, to report suspected unlawful conduct. This Section also does not prevent the Employee from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Employee shall promptly provide written notice of any such order as provided in Section 9, below, within ten (10) days of receiving such order, but in any event sufficiently in advance of making any disclosure to permit the Employer to contest the order or seek confidentiality protections, as determined in the Employer's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Notices</u>**. Any notices delivered under this Agreement shall be deemed duly delivered four (4) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company:

Direct Communication Solutions, Inc. 1021 Via Frontera Suite C

San Diego, CA 92127

Attention: Compensation Committee Chairman of the Board

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Employee:

At the last address in the Company's records.

Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10. **<u>Entire Agreement and Modifications</u>**. This Agreement, including the exhibits hereto and the agreements expressly referred to herein, constitutes the entire understanding between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, including, for the avoidance of doubt, the Prior Agreement, which shall have no further force or effect. There are no warranties, representations or other agreements between the parties, in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Agreement shall be binding unless made in writing and executed by the party thereto to be bound. Notwithstanding the foregoing, the Proprietary Information and Inventions Assignment Agreement previously entered into by Employee shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Waivers</u>**. No delay or omission by the Company or the Employee in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company or the Employee on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12. **<u>Withholding</u>**. All salary, bonus and other compensation payable to the Employee during the Employment Period shall be subject to applicable required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>No Mitigation; No Offset</u>**. In no event shall the Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Employee under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Employee as a result of employment by a subsequent employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Survival of Agreement Provisions</u>**. All terms, conditions, provisions, covenants, agreements, representations and warranties made herein shall survive the performance by the parties hereto of their obligations hereunder, and the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15. **<u>Severability</u>**. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16. **<u>Headings</u>**. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17. **<u>Governing Law, Jurisdiction, and Venue</u>**. This Agreement, for all purposes, shall be construed in accordance with the laws of California without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of California, county of San Diego. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue. .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Execution and Counterparts</u>**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile, email/pdf format or other electronic means and each party may fully rely upon such execution and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Covenant of Further Assurances</u>**. All parties to this Agreement shall, upon request, perform any and all acts and execute and deliver any and all certificates, instruments and other documents that may be necessary or appropriate to carry out any of the terms, conditions and provisions hereof or to carry out the intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Remedies Cumulative</u>**. Each and all of the several rights and remedies provided for in this Agreement shall be construed as being cumulative and no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Binding Effect</u>**. This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective executors, administrators, successors and permitted assigns. The Company may assign all or part of its rights hereunder to any of its subsidiary or its parent company, in which case the Services shall be rendered to such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22. **<u>Compliance with Laws</u>**. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and whenever there is a conflict between any term, condition or provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail, but in such event the term, condition or provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, provided that such construction is consistent with the intent of the parties as expressed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23. **<u>Gender</u>**. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the context so indicates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24. **<u>Third Party Benefit</u>**. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person who is not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Construction; Representation by Counsel</u>**. The parties hereby represent that they have each been advised by independent counsel with respect to their rights and obligations hereunder. This Agreement shall be construed and interpreted in accordance with the plain meaning of its language, and not for or against either party, and as a whole, giving effect to all of the terms, conditions and provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26. **<u>Injunctive Relief; Specific Performance</u>**. Employee hereby expressly agrees and acknowledges that a breach by Employee of any of Employee's obligations under Paragraph 7 hereof would result in severe and irreparable injury to the Company, which injury could not be adequately compensated by an award of money damages, and Employee therefore agrees and acknowledges that the Company shall be entitled to injunctive relief in the event of any such breach of this Agreement, or to enjoin or prevent such a breach. Employee further expressly waives any requirement or obligation of the Company to post any bond or provide any other security in connection with obtaining such injunctive relief.

[Remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the parties have duly executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| "Company" | "Company" |
| Direct Communication Solutions, Inc., | Direct Communication Solutions, Inc., |
| a Delaware corporation | a Delaware corporation |
| By: |  |
| Name: | William F. Espley |
| Title: | Chairman |
| "Employee" | "Employee" |
| /s/ Christopher S. Bursey | /s/ Christopher S. Bursey |
| Christopher Bursey | Christopher Bursey |
| DATE: | September 24, 2025 |

---

## Exhibit 10.10

**Exhibit 10.10**

**LOAN AGREEMENT**

THIS LOAN AGREEMENT is made as of the 1st day of July, 2025.

BETWEEN:

**ENLIGHTEN COMMERCE INC,** a company duly incorporaied under the laws of Wyoming and having an principal office located at 1309 Coffeen Avenue STE 12093, Sheridan, Wyoming 82801. A wholly ow11ed subsidiary of Direct Communication Solutions Inc.

(Hereinafter called the **"Borrower")**

OF THE FIRST PART

AND:

**INDICATOR GLOBAL CAPIT** **AL lNC.,** a company duly incorporated under the laws of British Columbia and having an address at #622 - 602 West Hasting Street, Vancouver, BC, Canada V6B I P2

(Hereinafter called the **"Lender")**

OF THE SECOND PART

**WHEREAS:**

A. The Borrower wishes to borrow money from the Lender:

B. The Lender is prepared to make a loan to the Borrower on the terms and conditions hereinafter set out

C. Upon signing of this agreement, the Borrower and Lender acknowledge and agree the money has been borrowed.

**NOW THEREFORE THIS AGREEMENT WITNESSETH:**

1. The Borrower agrees to borrow from the Lender and the Lender agrees to lend the Borrower up to $500,000 (Five Hundred Thousand Dollars) of lawful money of the United States of America (the **"Loan'').**

2. The Lender shall be entitled to assign the benefit of this Agreement with consent of the Borrower,

3. The Loan is interest bearing of a fixed amount of USD$30.000 (Thirty Thousand Dollars), paid annually in-advance.

4. The total outstanding Principal Amount shall be due and payable on demand.

5, The Principal Amount may be repaid in whole or in part.

6. The Borrower fails to make payment on this Agreement when due or otherwise defaults in any other obligations imposed by this Agreement, the Lender, at its option, may immediately declare due and payable all amounts then owing on this Agreement and the Borrower covenants to pay both before and after judgment until paid in full. The covenants to the Principal Amount shall not merge on the lack of a judgment or judgments with respect to any of the obligations herein stipulated for. The Borrower shall pay all costs and expenses incurred by the Lender in connection with any failure to pay or other default of the Borrower, including but not limited to attorney's fees and expenses, collection costs, court costs and costs on appeal whether incurred before or after judgment.

7. This Loan is provided by the Lender specifically for the Borrower to purchase inventory. Any other usage of this Loan requires the Borrower to obtain consent from the Lender.

8. William F. Espley, whom is the CEO of Enlighten Commerce Inc, and the Chairman of Board of Direct Communication Solutions Inc, (the parent company of Enlighten Commerce Inc), is hereby personally guarantee the principle and interest of this loan agreement.

9. This Loan Agreement shall be governed by and construed in accordance with the laws of the Canada.

I0. This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior understandings, written or oral. The terms of this Agreement may be changed, modified or discharged only by an instrument in writing signed by each of the parties hereto.

IN WITNESS WHEREOF the parties have executed this Agreement, both as of the day and year first above written.

ACKNOWLEDGED AND AGREED to this 1st day of July, 2025.

---

| | |
|:---|:---|
| ENLIGHTEN COMMERCE INC | ENLIGHTEN COMMERCE INC |
| By: | /s/William F. Espely |
| Name: | William F. Espely, CEO |
| Guaranteed | Guaranteed |
| By: | /S/ William F. Espely |
| Name: | William F. Espely |
| INDICATOR GLOBAL CAPITAL INC | INDICATOR GLOBAL CAPITAL INC |
| By: | /S/ LAN YAO |
| Name: | LAN YAO, Director |

---

## Exhibit 10.11

**Exhibit 10.11**

**CREDIT AGREEMENT**

**By and Between**

**CALAMP WIRELESS NETWORKS CORPORATION**

**and**

**DIRECT COMMUNICATION SOLUTIONS, INC.**

**June** **<u>7th,</u> 2024**

**CREDIT AGREEMENT**

This Credit Agreement (as may be amended, this **"Agreement")** is executed and delivered this _ day of June, 2024, by and between **DIRECT COMMUNICATION SOLUTIONS, INC.,** a Delaware corporation **("Borrower"),** with its principal place of business at 17150 Via del Campo, Suite 200, San Diego, California 92127 and **CALAMP WIRELESS NETWORKS CORPORATION ("Lender"),** with an address of 15635 Alton Parkway, Suite 250, Irvine, California 92618.

**Recitals**

WHEREAS, pursuant to that certain Master Channel Partner Agreement by and between Borrower and Lender dated as of May 26, 2017 (as the same has been or may be amended or modified from time to time, the **"Master Channel Partner Agreement"),** Borrower was appointed as an authorized reseller of Products (as defined in the Master Channel Partner Agreement);

WHEREAS, pursuant to that certain CalAmp Master Saas Agreement by and between Borrower and Lender dated as of October 1, 2021, as amended by that certain First Amendment to Master Services Agreement dated as of July 2, 2022, and as further amended by that certain Second Amendment to Master Services Agreement dated as of May 17, 2023 (as so amended and as may be further amended or modified from time to time, the **"Master Services Agreement''** and together with the Master Channel Partner Agreement, the **"Master Agreements")** and orders issued pursuant thereto, Borrower purchased and Lender sold certain goods and services; and

WHEREAS, pursuant to the Master Agreements, Borrower has submitted several written orders which have been fulfilled by Lender, and certain of the fulfilled written orders have not yet been paid for by Borrower, resulting in a balance owed by Borrower to Lender pursuant to the Master Agreements; and

WHEREAS, Borrower has requested a term loan in the principal amount of Three Million Two Hundred Thousand and 00/100 Dollars ($3,200,000.00) (the **"Loan"),** to be applied to the refinance a portion of the outstanding balance owed by Borrower to Lender under the Master Agreements and has requested that Lender forgive the remaining outstanding balance as of May I 0, 2024, which is Six Million One Hundred Fourteen Thousand Seven Hundred Seventy-Six and 09/100 Dollars ($6,114,776.09); and

WHEREAS, any amounts accrued after the date hereof under the Master Agreements or other agreement are not included in the Loan and shall be payable in accordance with the Master Agreements or such other agreements, as applicable, and any written orders pursuant thereto; and

WHEREAS, Lender is willing (i) to extend the Loan to Borrower in an aggregate principal amount of $3,200,000.00 to refinance a portion of the outstanding balance owed by Borrower to Lender under the Master Agreements, and (ii) to forgive a portion of the outstanding balance owed by Borrower to Lender in the principal amount of $6,114,776.09, in each case on the terms and subject to the conditions hereinafter set forth; and

NOW, THEREFORE, Borrower and Lender, in consideration of the premises, the credit to be extended hereunder, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows:

**SECTION l. Definitions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 "Code"** shall mean the Internal Revenue Code of 1986, as amended, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 "ERISA"** shall mean the Employee Retirement Income Security Act of 1974, as amended, and any applicable regulations or guidance promulgated thereunder or Section 4975 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 "ERISA Affiliate"** shall mean any corporation which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as Borrower or any trade or business which is under common control (within the meaning of Section 414(c) of the Code) with Borrower or any organization which is required to be treated as a single employer with Borrower under Section 414(m) or 414(0) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 "Liabilities"** shall mean any and all obligations, indebtedness and liabilities of Borrower to Lender of every kind and description, whether direct or indirect, absolute or contingent,joint or several, due or to become due, liquidated or unliquidated, now existing or hereafter arising, and all extensions, modifications, renewals, and refinancings thereof, arising under this Agreement or any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.5** **"Loan"** has the meaning set forth in the Recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6 "Loan Documents"** shall mean and include this Agreement and any subordination agreements, intercreditor agreements and other agreements, documents and instruments now or hereafter evidencing, securing, guaranteeing or relating to the Loan, as the same may be amended, restated and/or modified from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.7** **"Master Agreements"** has the meaning set forth in the Recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8 "Master Channel Partner Agreement"** has the meaning set forth in the Recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9 "Master Services Agreement"** has the meaning set forth in the Recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10 "Maturity Date"** shall mean July I, 2029 or such later date as agreed to by Lender in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11 "OFAC"** shall mean the U.S. Department of the Treasury's Office of Foreign Assets Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12 "Sanctioned Country"** shall mean a country subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/programs/index.shtml, or as otherwise published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13 "Sanctioned Person"** shall mean (i) a person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/, or as otherwise published from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.14** **"Third Party Financing"** has the meaning set forth in Section 3.3.

**SECTION 2. Agreement to Make Advances; Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Loan.** On the date hereof, subject to the terms and conditions of this Agreement and Borrower's performance of and compliance with each of the Loan Documents, and so long as no Event of Default (including, without limitation, the breach of any warranty or representation) hereunder or under any of the other Loan Documents shall have occurred, be continuing or would result, Lender agrees to extend to Borrower the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Interest Rate.** The outstanding principal balance of the Loan shall bear interest at the rate of ten percent (10.00%) per annum (the **"Interest Rate").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Payment.** Borrower promises to pay interest quarterly, on or before the first day of each calendar quarter, accrued on the principal amount owing hereunder from time to time, computed daily, calculated as set forth below, with the first such interest payment to be due and payable on the l st day of July, 2024, and subsequent interest payments due on the first day of each September, January, April and July thereafter. The principal of and accrued and unpaid interest on the amounts advanced under this Agreement and all other charges and expenses hereunder shall be due and payable in full on the Maturity Date, unless due sooner pursuant to the terms of this Agreement or any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Additional Provisions Regarding Interest.** Interest on all principal amounts outstanding from time to time hereunder shall be calculated on the basis of a 360 day year applied to the actual number of days upon which principal is outstanding, by multiplying the product of the principal amount and the applicable Interest Rate as set forth in this Section 2 by the actual number of days elapsed, and dividing by 360. At the option of Lender and without any requirement of notice to Borrower, all principal amounts outstanding hereunder after maturity, earlier acceleration of the amounts advanced under this Agreement, or an Event of Default, shall bear interest at a floating rate of five hundred basis points (5.00%) in excess of the per annum rate of interest otherwise applicable under this Agreement.

It is the intention of Lender and Borrower to conform strictly to any applicable usury laws. Accordingly, if the transactions contemplated hereby would be usurious under any applicable law, then, in that event, notwithstanding anything to the contrary in this Agreement, it is agreed as follows: (i) the aggregate of all consideration which constitutes interest under applicable law that is contracted for, taken, reserved, charged, or received by Lender under this Agreement shall under no circumstances exceed the Highest Lawful Rate (as defined below), and any excess shall be canceled automatically and, if theretofore paid, shall, at the option of Lender, be credited by Lender on the principal amount of any indebtedness owed to Lender by Borrower or refunded by Lender to Borrower, and (ii) in the event that the payment of the amounts due under this Agreement is accelerated or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to Lender may never include more than the Highest Lawful Rate and excess interest, if any, to Lender provided for in this Agreement or otherwise shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall, at the option of Lender, be credited by Lender on the principal amount of any indebtedness owed to Lender by Borrower or refunded by Lender to Borrower.

**"Highest Lawful Rate"** means the maximum non-usurious interest rate (computed on the basis of a year of 365 or 366 days, as applicable) that at any time or from time to time may be contracted for, taken, reserved, charged, or received on amounts due to Lender, under laws applicable to Lender with regard to this Agreement that are presently in effect or, to the extent allowed by law, under such applicable laws that allow a higher maximum non-usurious rate than applicable laws now allow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Prepayment.** The amount advanced under this Agreement may be prepaid, in whole or in part, at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6 Application of Prepayments.** Borrower agrees that all loan fees and other prepaid charges are earned fully as of the date of this Agreement and will not be subject to refund, except as required by law. Prepayment in full shall consist of payment of the remaining unpaid principal balance together with all accrued and unpaid interest and all other amounts, costs and expenses for which Borrower is responsibleunderthis Agreement or any other Loan Documents when or before such amounts are due, whether such prepayment arises from a voluntary or involuntary prepayment, acceleration of maturity, or any other cause or reason. Prepayment in part shall consist of payment of any portion of the unpaid principal balance before it is due, whether such prepayment arises from a voluntary or involuntary prepayment, acceleration of maturity, or any other cause or reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7** **Late Fee.** Any scheduled payment of principal and/or interest which is not paid within ten (I 0) days from the date due will be subject to a late charge of five percent (5%) of such scheduled payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8 Use of Proceeds.** The Loan is being made and shall be used solely refinance a portion of the outstanding balance owed by Borrower to Lender under the Master Agreements.

**SECTION 3. Conditions Precedent.**

This Agreement and the obligation of Lender to make the Loan and to cancel and forgive a portion of the outstanding balance are subject to the performance by Borrower of its obligations to be performed hereunder at or prior to the date hereof and to the satisfaction of the following conditions precedent, in each case in form and substance satisfactory to Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Delivery of Loan Documents.** Execution and delivery of this Agreement and all other Loan Documents, all in form and content satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Technology License Agreement.** Borrower and Lender shall have entered into a Technology License Agreement pursuant to which Borrower shall grant Lender a license for the use and practice of the intellectual property as more particularly set forth therein and including, without limitation, all PEG scripts and edge applications necessary or beneficial for the operation of Borrower's business and the continuation of Borrower's hardware customer operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Third Party Financing.** Receipt by the Lender of evidence satisfactoty to Lender that Borrower has received third party financing in the principal amount of at least

$1,000,000.00 (the **"Third Party Financing"),** the terms of which shall be subject to

Lender's review and approval in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Payment of Fees and Expenses.** Payment by Borrower of all expenses incurred by or due to Lender with respect to this Agreement and the other Loan Documents, including without limitation the fees and expenses of Lender's counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 No Material Adverse Change.** There have been no material adverse changes in the financial condition, operations, or prospects of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6 Other Instruments and Documents.** Receipt by Lenderof such additional legal opinions, certificates, proceedings, instruments, and other documents as Lender or its counsel may reasonably request.

**SECTION 4. Borrower's Representations and Warranties.**

To induce Lender to enter into th is Agreement, Borrower represents and warrants to Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Organization, Licenses, Qualifications, Etc.** Borrower (a) is a duly organized corporation, validly existing, and in good standing under the laws of the State of Delaware; (b) has all requisite power and authority and all requisite third party and governmental, licenses, authorizations, consents and approvals to (i) own or lease its assets and conduct its business as now conducted or presently proposed to be conducted, and (ii) execute, deliver and perform its obligations under the Loan Documents; (c) has no subsidiaries; and (d) is duly qualified and in good standing (and will remain so qualified and in good standing) in every jurisdiction in which the failure to so qualify and remain in good standing would or could reasonably be expected to have a material adverse effect on its business or properties or on Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Power and Authority; Enforceability.** The execution, delivery and performance of the Loan Documents are within Borrower's powers, have been duly and validly authorized by all requisite action, including, without limitation, any necessary shareholder approval and are not in contravention of the law or the terms of Borrower's organizational and operating documents, or of any indenture, agreement, or undertaking or any law, regulation or order to which Borrower is a party or by which it or any of its properties is or may be bound. This Agreement and all other Loan Documents executed by Borrower have been validly executed and delivered by Borrower and constitute lega4 valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws at the time in effect affecting the rights of creditors generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 No Restrictions.** The execution, delivery and performance of the Loan Documents, the borrowings hereunder and the use of the proceeds thereof will not violate any governmental licenses, authorizations, consents and approvals applicable to Borrower or any contractual obligation between Borrower and a third party and will not result in, or require, the creation or imposition of any lien on any assets of Borrower pursuant to any governmental requirements or any such third party contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 No Defaults Under Other Agreements.** Borrower is not now and will not be in default under any agreement evidencing an obligation for the payment of money, performance of a service or delivery of goods, demand for performance under which, or acceleration of the maturity of which would render Borrower insolvent or unable to meet its other debts as they become due or conduct its business as usual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Judgments/Actions.** There are no judgments, actions, suits, claims, proceedings or investigations existing, outstanding, pending, or to the best of Borrower's knowledge after due inquiry, threatened or in prospect, before any court, agency ortribuna4 or governmental authority against or involving Borrower or any guarantor which do or could reasonably be expected to have a material adverse effect on the business, properties, prospects, financial condition, earnings or results of operations of Borrower, which impair Borrower's ability to perform its obligations arising under the Loan Documents, or which question the validity of the Loan or any of the Loan Documents, or any action or instrument contemplated by any of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 Bankruptcy.** Borrower is and at all times shall remain solvent as defined under applicable Delaware state law and the federal bankruptcy code and is not now and has not been in the past three (3) years a debtor under any title of the United States Bankruptcy Code, 11 U.S.C. §§ 101, *et seq.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4.7** **Business Purpose.** The Loan is being obtained for business purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 ERISA.** Borrower hereby represents and warrants that (i) none of its assets are, for purposes of ERJSA, considered assets of a Plan; (ii) no Pension Plan sponsored, maintained or contributed to by Borrower or any of its ERJSA Affiliates has an accumulated funding deficiency (whether or not waived) under Section 412 of the Code or Section 302 of ERISA; and (3) neither Borrower nor any ERISA Affiliate has any unsatisfied liability for withdrawal liability with respect to any Pension Plan which is a Multiemployer Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 OFAC.** Neither the Borrower nor any affiliate of the Borrower is a Sanctioned Person, (i) has assets in Sanctioned Countries, or (ii) derives its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Countries. The proceeds of the Loan will not be used and have not been used to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country.

**SECTION 5. Affirmative Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Compliance with Laws.** Borrower does and shall at all times while the Loan remains outstanding comply in all material respects with all applicable laws, ordinances, rules and regulations of any governmental authority or entity governing or affecting Borrower or any of its property, and shall promptly notify Lender of any and all actual, alleged or asserted violations of any such laws, ordinances, rules or regulations. Without limitation to the generality of the foregoing, Borrower shall comply in all material respects with all laws, governmental standards and regulations applicable to Borrower in respect of occupational health and safety, toxic and hazardous waste and substances and environmental matters. Borrower promptly shall notify Lender of receipt of any notice of any actual, alleged or asserted violation of any such law, standard or regulation. Borrower hereby agrees to indemnify, defend and hold Lender harmless from all loss, cost, damage, claim and expense incurred by Lender on account of Borrower's breach of any representation, warranty or requirement of this Section, Borrower's failure to perform the obligations of this Section, and/or Borrower's violating any applicable laws, ordinances, rules or regulations, including, without limitation, any environmental or occupational health and safety laws or regulations. This indemnification shall survive the closing of the Loan, payment of the Loan and the exercise of any right or remedy under any of the Loan Documents. Borrower represents that there are no pending claims or to Borrower's knowledge threats of claims by private or governmental or administrative authorities relating to environmental impairment, conditions, or regulatory requirements involving Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Maintenance of Existence; Maintenance of Authorizations.** Borrower shall (i) preserve, renew and maintain in full force and effect its corporate or organizational existence and (ii) take all reasonable action to maintain all authorizations, approvals, rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Notification of Defaults, Suits, Etc.** Promptly after the same shall have become known to Borrower, Borrower shall notify Lender in writing of (i) any default or event of default underany of the Loan Documents, and/or(ii) any action, suit or proceeding at law or in equity or by or before any governmental instrumentality or other agency which, if adversely determined, could reasonably be expected to impair the ability of Borrower to perform its obligations under the Loan Documents, impair the ability of Borrower to cany on its business substantially as now conducted, or which could reasonably be expected to materially and adversely affect the business, operations, properties, assets or condition, financial or otherwise, of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Indemnification.** In the event (a) any of Borrower's warranties or representations shall prove to be false or misleading in any material respects when made or deemed made; or (b) Borrower or any other person or entity shall assert against Lender a claim or defense arising out of or relating to any of the Loan Documents, Borrower agrees to indemnify and hold Lender harmless from and against any liability, judgment, cost, attorneys' fees or other expense whatsoever arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 Compliance with Master Agreements; Non-Disparagement.** Borrower shall comply in all respects with the Master Agreements, including without limitation actively promoting the sale of the Products and serving the interests of Lender, and Borrower shall otherwise act in good faith at all times. Borrower agrees and covenants that it shall not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning Lender or its business, and it shall at all times prevent its representatives, employees and affiliates from doing so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 Use of Third Party Financing.** Borrower shall use the Third Party Financing solely for business purposes.

**SECTION 6. Events of Default.**

Any of the following shall constitute an **"Event of Default":**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) default in the payment of any of the Liabilities of Borrower,
including the failure to pay interest hereunder in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) failure by Borrower to (i) pay or perform any act or obligation
imposed hereby, by any of the other Loan Documents, by the Master Agreements or by any other agreement or contract between Borrower and
Lender or (ii) comply with any of the terms, conditions, warranties, covenants or requirements contained or referenced herein, in one
or more of the other Loan Documents, or in any other agreement or contract between Borrower and Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) failure of Borrower or any other person or entity, as applicable,
to pay when due any taxes regarding this Agreement or Borrower's use of the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if any warranty or representation contained herein shall prove
false or misleading in any material respect when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) bankruptcy or insolvency of Borrower; provided, in the case
of involuntary bankruptcy filing, such filing must continue for sixty (60) days from the date filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) fraud or material misrepresentation by or on behalf of Borrower
in its transactions with Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any default or event of default (after the passage of all
applicable notice, grace and cure periods) under any of the other Loan Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Lender determines that a material adverse effect with respect
to Borrower, or any event that is reasonably likely to result in a material adverse effect on Borrower, has occurred.

<u>**SECTION**</u> <u>7.</u> **Remedies.** If any Event of Default occurs, Lender may take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) declare the Liabilities to be, at the option of Lender and
notwithstanding any time or credit allowed by any of the Loan Documents or any other document, agreement or instrument evidencing any
of the Liabilities, immediately due and payable without declaration, notice or demand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exercise all rights and remedies available to Lender under
the Loan Documents or applicable law.

The enumeration of the foregoing rights is not intended to be exhaustive, and the exercise of any right shall not preclude the exercise of any other rights, all of which shall be cumulative. All rights and remedies of Lender with respect to the Liabilities, whether evidenced hereby, by any of the other Loan Documents or by any other instrument or paper, shall be cumulative and may be exercised singularly or concurrently.

**SECTION 8. Waivers; Release.**

Borrower waives demand, presentment, protest, notice of protest, notice of intent to accelerate, notice of acceleration, notice of acceptance of this Agreement, and notice of advances and loans made, credit extended, or other action taken in reliance hereon and all other demands and notices of any description. With respect to the Liabilities, Borrower assents to any extension or postponement of the time of payment or any other indulgence, to the addition or release of any party or person primarily or secondarily liable (if applicable), to the acceptance of partial payments thereon and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or times as Lender may deem advisable. Lender shall not be deemed to have waived any of its rights upon or under any of the Liabilities unless such waiver be in writing and signed by Lender. No course of dealing and no delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any future occasion. Lender reserves the right to assess and collect a fee in connection with any agreement by Lender to waive the violation of any covenant contained in the Loan Documents or to waive or forego its rights and remedies upon the occurrence of an Event of Default. This section shall not in any respect obligate Lender to waive the violation of any covenant or to forego its rights and remedies upon the occurrence of an Event of Default, which Lender may or may not do in its sole discretion. As against the obligations secured hereby, Borrower hereby expressly waives all claims and all rights to claim any exemptions, both as to personal and real property, allowed or allowable under the Constitution or laws of the United States, the State of Delaware or any other jurisdiction.

The Borrower, on behalf itself and all affiliates, hereby waives and releases any and all current existing claims, counterclaims, defenses, or set-offs of every kind and nature which it has or might have against the Lender and Lender's affiliates, officers,directors, employees, agents and advisors (collectively, the "Releasees") arising out of, pursuant to, or pertaining in any way to the Master Agreements, any and all documents and instruments delivered in connection with or relating to Master Agreements, or this Agreement. Neither the Borrower nor any affiliate of the Borrower may sue any Releasee based on any existing claim or assert any currently existing claims, defenses, demands, actions, or liabilities against any Releasee arising out of, pursuant to, or pertaining in any way to the Master Agreements, any and all documents and instruments delivered in connection with or relating to the foregoing, or this Agreement.

**SECTION 9. Forgiveness.**

On the date hereof, subject to the terms and conditions of this Agreement and Borrower's performance of and compliance with each of the Loan Documents, and so long as no Event of Default (including, without limitation, the breach of any warranty or representation) hereunder or under any of the other Loan Documents shall have occurred, be continuing or would result, Lender agrees to cancel and forgive Two Million Nine Hundred Fourteen Thousand Seven Hundred Seventy-Six and 09/100 Dollars ($2,9 I 4,776.09) owed by Borrower to Lender pursuant to the Master Agreements.

**SECTION 10. Expenses.**

Irrespective of whether the proceeds of the Loan are disbursed, Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable legal fees and expenses, and taxes (except taxes measured by Lender's income) incurred by Lender or Borrower from time to time in connection with the preparation and closing, administration, amendment and modification of the Loan and the Loan Documents. Borrower shall pay to Lender on demand any and all such reasonable fees and expenses incurred or paid by Lender, together with any and all reasonable fees, expenses and costs (a) of collection or (b) otherwise incurred or paid by Lender in protecting, enforcing or realizing its rights upon or with respect to any of the Liabilities or the Loan Documents (including, without limitation, reasonable counsel fees, including, without limitation, those incurred in connection with any appeal or any bankruptcy proceedings).

**SECTION 11. Continuing Agreement.**

This Agreement shall be a continuing agreement in every respect, until the Liabilities have been paid in full and Lender have no further obligations to advance funds hereunder. It is expressly agreed that this Agreement shall survive the maturity or termination of the Loan in all respects necessary for Lender to exercise its rights and remedies hereunder. The maturity or termination of the Loan shall in no way affect any transactions entered into or rights created or obligations incurred prior to such maturity or termination; rather, such rights and obligations shall be fully operative until the same are fully disposed of, concluded and/or liquidated. Without limitation to the generality of the foregoing, such maturity or termination shall not release nor diminish any of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower's obligations and agreements, or (ii) Lender' rights
and remedies arising hereunder or in connection herewith until full and final payment and performance of all of the Liabilities. All
representations and warranties of Borrower herein, and all covenants and agreements of Borrower herein, in the other Loan Documents,
or in any other document delivered hereunder or in connection herewith, shall survive the execution of this Agreement and shall be deemed
continuing representations, warranties, covenants and agreements.

**SECTION 12. General.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1 Notice.** Any demand upon or notice to Borrower that Lender may give shall be effective (i) upon delivery if such notice is given personally, or (ii) upon the third day following the date of dispatch if deposited in the mails, addressed to Borrower at the address noted on the first page of this Agreement or, if Borrower has notified Lender in writing of a change of address, to Borrower's last address so notified, or (iii) upon receipt if by facsimile or telecopy. Demands or notices addressed to Borrower's address at which Lender customarily communicate with Borrower shall also be effective. All notices provided to Lender by Borrower under or related to any of the Loan Documents, or the Liabilities, shall be sent to the address of Lender noted on the first page of this Agreement No notice sent to Lender shall be effective until received by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2 Transfer of Liabilities.** This Agreement and each of the other Loan Documents are binding upon Borrower, its successors and assigns, and inure to the benefit of Lender, its successors and assigns. If at any time or times by assignment or otherwise Lender transfers any of the Liabilities, such transfer shall carry with it Lender's powers and rights under this Agreement and the other Loan Documents with respect to the Liabilities transferred, and the transferee shall become vested with said powers and rights whether or not they are specifically referred to in the transfer. If and to the extent Lender retains any of the Liabilities, Lender will continue to have the rights and powers herein set forth with respect thereto. Borrower may not assign or delegate any of its rights or obligations under the Loan, this Agreement or any of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3 Jurisdiction and Venue. THIS AGREEMENT AND ALL OF THE OTHER LOAN DOCUMENTS, AND ALL RIGHTS AND OBLIGATIONS HEREUNDER AND THEREUNDER, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, EXCEPT THAT ANY CONFLICT OF LAWS RULE OF SUCH JURISDICTION THAT WOULD REQUIRE REFERENCE TO THE LAWS OF SOME OTHER JURISDICTION SHALL BE DISREGARDED. ANY SUITS, CLAIMS OR CAUSES OF ACTION ARISING DIRECTLY OR INDIRECTLY FROM THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OTHER AGREEMENTS OR INSTRUMENTS BETWEEN LENDER ANDBORROWERRELATINGTOSUCHDOCUMENTSMAYBEBROUGHTIN A COURT OF APPROPRIATE JURISDICTION IN NEW CASTLE COUNTY, DELAWARE AND OBJECTIONS TO VENUE AND PERSONAL JURISDICTION IN SUCH FORUM ARE HEREBY EXPRESSLY WAIVED. IT IS INTENDED, AND BORROWER AND LENDER SPECIFICALLY AGREE, THAT THE LAWS OF THE STATE OF DELAWARE GOVERNING INTEREST SHALL APPLY TO THIS TRANSACTION. BORROWER HEREBY ACKNOWLEDGES THAT (I) THE NEGOTIATION, EXECUTION, AND DELIVERY OF THE LOAN DOCUMENTS CONSTITUTE THE TRANSACTION OF BUSINESS WITHIN THE STATE OF DELAWARE, (II) ANY CAUSE OF ACTION ARISING UNDER ANY OF SAID LOAN DOCUMENTS WILL BE A CAUSE OF ACTION ARISING FROM SUCH TRANSACTION OF BUSINESS, AND (III) BORROWER UNDERSTANDS, ANTICIPATES, AND FORESEES THAT ANY ACTION FOR ENFORCEMENT OF PAYMENT OF THE LOAN OR THE LOAN DOCUMENTS MAY BE BROUGHT AGAINST IT IN THE STATE OF DELAWARE. TO THE EXTENT ALLOWED BY LAW, BORROWER HEREBY SUBMITS TO JURISDICTION IN THE STATE OF DELAWARE FOR ANY ACTION OR CAUSE OF ACTION ARISING OUT OF OR IN CONNECTION WITH THE LOAN OR THE LOAN DOCUMENTS AND WAIVES ANY AND ALL RIGHTS UNDER THE LAWS OF ANY STATE OR JURISDICTION TO OBJECT TO JURISDICTION OR VENUE WITHIN NEW CASTLE COUNTY, DELAWARE; NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS PARAGRAPH SHALL PREVENT LENDER FROM BRINGING ANY ACTION OR EXERCISING ANY RIGHTS AGAINST BORROWER, ANY GUARANTOR, ANY SECURITY FOR THE LOAN OR ANY OF BORROWER'S OR ANY GUARANTOR'S PROPERTIES IN ANY OTHER COUNTY, STATE, OR JURISDICTION. INITIATING SUCH ACTION OR PROCEEDING OR TAKING ANY SUCH ACTION IN ANY OTHER STATE OR JURISDICTION SHALL IN NO EVENT CONSTITUTE A WAIVER BY LENDER OF ANY OF THE FOREGOING.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4 No Partnership.** Nothing contained herein, or in any of the documents contemplated hereby, shall be deemed to render Lender on the one hand, and Borrower on the other hand, partners or venturers for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **12.5** **Seal.** This Agreement is intended to take effect as a sealed instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6 Construction of Documents.** In the event of actual conflict in the terms and provisions of this Agreement and any of the other Loan Documents or any other document, instrument or agreement executed in connection with this Agreement or described or referred to in this Agreement, the terms and provisions most favorable to Lender shall control. This Agreement and each of the other Loan Documents shall be deemed to be drafted by all parties hereto and shall not be construed against any party hereto. The table of contents hereto and the headings of the sections, paragraphs and subdivisions of this Agreement are for convenience of reference only, are not to be considered a part hereof, and shall not limit or otherwise affect any of the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.7 No Modification.** No modification, consent, amendment or waiver of any provision of this Agreement or any of the other Loan Documents, nor consent to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by Lender, and then shall be effective only in the specific instance and for the purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8 Severability.** In the event any one or more of the terms or provisions contained in this Agreement, in any of the other Loan Documents or in any other instrument or agreement referred to herein or executed in connection with or as security for the Liabilities, or any application thereof to any person or circumstances, shall be declared prohibited, illegal, invalid or unenforceable to any extent in any jurisdiction, as determined by a court of competent jurisdiction, such term or provision, in that jurisdiction, shall be ineffective only to the extent of such prohibition, illegality, invalidity or unenforceability, or as applied to such persons or circumstances, without invalidating or rendering unenforceable the remaining terms or provisions hereof or thereof or affecting the validity or enforceability of such term or provision in any other jurisdiction or as to other persons or circumstances in such jurisdiction, unless such would effect a substantial deviation from the general intent and purpose of the parties, make a significant change in the economic effect of the transactions contemplated herein on Lender, or the validity of any guaranty or other security for the Liabilities, in which event a substitute provision shall be supplied by the court in order to provide Lender with the benefits intended by such invalid term or prov1s1on.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9 Waiver of Trial by Jury. LENDER AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT, THE LOAN, THE LIABILITIES, ALL OTHER DOCUMENTS GIVEN TO EVIDENCE OR SECURE THE LOAN AND/OR THE LIABILITIES, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS RELATED THERETO (WHETHER VERBAL OR WRITTEN).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10 Electronic Signatures.** Delivery of an executed counterpart of a signature page of this Agreement by telecopy, emailed .pdf or any other electronic means that reproduces an image of the actual executed signature page or otherwise includes an electronic or digital signature shall be effective as delivery of a manually executed counterpart of this Agreement. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby or thereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Actor any other similar state laws consisting of or based on the Uniform Electronic Transactions Act.

**[SIGNATURES APPEAR ON FOLLOWING PAGES]**

**IN WITNESS WHEREOF,** the parties hereto have hereunder set their hands and seals on this <u>7<sup>th</sup></u> day of June, 2024.

**BORROWER:**

---

| | |
|:---|:---|
| **DIRECT COMMUNICATION SOLUTIONS, INC.** | **DIRECT COMMUNICATION SOLUTIONS, INC.** |
| By: | */s/ Chris Bursey* |
| Name: | Chris Bursey |
| Title: | CEO |

---

*Signature Page Credit Agreement*

 

---

| | |
|:---|:---|
| **LENDER:** | **LENDER:** |
| **CALAMP WIRELESS NETWORKS CORPORATION** | **CALAMP WIRELESS NETWORKS CORPORATION** |
| By: | **/s/ Jikun Kim** |
| Name: | Jikun Kim |
| Title: | CFO |

---

*Signature Page Credit Agreement*

## Exhibit 21.1

**Exhibit 21.1**

**List of Subsidiaries**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Name of Subsidiary** | &nbsp;&nbsp;**Jurisdiction of Incorporation** |
| &nbsp;&nbsp;Enlighten Commerce Inc. | &nbsp;&nbsp;Wyoming, USA |

---

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the use in this Registration Statement on Form S-1 of our report dated June 6, 2025, relating to the consolidated financial statements of Direct Communication Solutions, Inc, which is part of this Registration Statement.

We also consent to the reference to us under the caption "Experts" in the Prospectus.

---

| | |
|:---|:---|
|  | **/s/ DAVIDSON & COMPANY LLP** |
| Vancouver, Canada | Chartered Professional Accountants |
| November 28, 2025 |  |

---

![](ex23-1_002.jpg)

## Exhibit 99.1

**Exhibit 99.1**

**Consent of Director Nominee**

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**Securities Act**"), in connection with the Registration Statement on Form S-1 (the "**Registration Statement**") of Direct Communication Solutions, Inc. (the "**Company**"), the undersigned hereby consents to being named and described as a director nominee in the Registration Statement and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

---

| | |
|:---|:---|
| */s/ Gunther Schuhmann* | */s/ Gunther Schuhmann* |
| Name: | Gunther Schuhmann |
| Date: | November 28, 2025 |

---

## Exhibit 99.2

**Exhibit 99.2**

**Consent of Director Nominee**

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**Securities Act**"), in connection with the Registration Statement on Form S-1 (the "**Registration Statement**") of Direct Communication Solutions, Inc. (the "**Company**"), the undersigned hereby consents to being named and described as a director nominee in the Registration Statement and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

---

| | |
|:---|:---|
| */s/ Dr. Michael Xing He* | */s/ Dr. Michael Xing He* |
| Name: | Dr. Michael Xing He |
| Date: | November 28, 2025 |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? Filing Fee Exhibit

**Ex-Filing Fees**

**CALCULATION OF FILING FEE TABLES**

**S-1**

**Direct Communication Solutions, Inc.**

**Table 1: Newly Registered and Carry Forward Securities**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Line Item Type** | **Security Type** | **Security Class Title** | **Notes** | **Fee Calculation<br> Rule** | **Amount Registered** | **Proposed Maximum Offering<br> Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* |
| Fees to be Paid | Equity | Common stock, par value $0.0001 per share | (1) | 457(o) |  | $| $15000000.00 | 0.0001381 | $2071.50 |
| Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | $15000000.00 |  | 2071.50 |
| Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: |  |  | 0.00 |
| Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: |  |  | 0.00 |
| Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: |  |  | $2071.50 |

---

**__________________________________________ Offering Note(s)**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. Includes the aggregate offering price of additional shares that the underwriters have the option to purchase.