# EDGAR Filing Document

**Accession Number:** 0001488501
**File Stem:** 0001903596-23-000139
**Filing Date:** 2023-2
**Character Count:** 688420
**Document Hash:** 8176ab412fde1d5692fed8bf50046812
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001903596-23-000139.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001903596-23-000139

**CONFORMED SUBMISSION TYPE**: 10-12G

**PUBLIC DOCUMENT COUNT**: 81

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** METROSPACES, INC.
- **CENTRAL INDEX KEY:** 0001488501
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56522
- **FILM NUMBER:** 23631042

**BUSINESS ADDRESS:**
- **STREET 1:** 888 BRICKELL KEY DR.
- **STREET 2:** UNIT 1102
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33131
- **BUSINESS PHONE:** 3056000407

**MAIL ADDRESS:**
- **STREET 1:** 888 BRICKELL KEY DR.
- **STREET 2:** UNIT 1102
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33131

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Strata Capital Corp
- **DATE OF NAME CHANGE:** 20100402

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10**

**GENERAL FORM FOR REGISTRATION OF SECURITIES**

**Pursuant to Section 12(b) of The Securities Exchange Act of 1934**

**Metrospaces, Inc.**

(Exact name of registrant as specific in its charter)

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| | |
|:---|:---|
| **Delaware** | 90-0817201 |
| (State of jurisdiction of | (I.R.S. Employer |
| Incorporation or organization) | Identification No.) |

---

**6 St. John's Lane**

**New York, NY 10012**

**(305) 600-0407**

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

**Oscar Brito**

**6 St. John's Lane**

**New York, NY 10012**

**(305) 600-0407**

(Address, including zip code, and telephone number, including area code, of agent for service)

***Copies to:***

**Tomer Tal, Esq.**

**New Venture Attorneys, PLC**

**101 Church Street, Suite 22**

**Los Gatos, CA 95030**

**(408) 560-9606**

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| | |
|:---|:---|
| **Securities to be registered pursuant to Section 12(b) of the Act:** |  |
| **Securities to be registered pursuant to Section 12(g) of the Act:** | Common Stock, par value $0.000001 per share |

---

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 13(a) of the Exchange Act. ☐

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| [EXPLANATORY NOTE](#a_001) | [EXPLANATORY NOTE](#a_001) | 3 |
| [FORWARD-LOOKING STATEMENTS](#a_002) | [FORWARD-LOOKING STATEMENTS](#a_002) | 3 |
| [<u>TRADEMARKS, SERVICE MARKS AND TRADE NAMES</u>](#a_003) | [<u>TRADEMARKS, SERVICE MARKS AND TRADE NAMES</u>](#a_003) | 4 |
| Item 1. | [BUSINESS](#a_004) | 4 |
| Item 1A. | [RISK FACTORS](#a_005) | 13 |
| Item 2. | [FINANCIAL INFORMATION](#a_006) | 30 |
| Item 3. | [PROPERTIES](#a_007) | 42 |
| Item 4. | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#a_008) | 42 |
| Item 5. | [DIRECTORS AND EXECUTIVE OFFICERS](#a_009) | 45 |
| Item 6. | [EXECUTIVE COMPENSATION](#a_010) | 48 |
| Item 7. | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#a_011) | 50 |
| Item 8. | [LEGAL PROCEEDINGS](#a_012) | 51 |
| Item 9. | [MARKET PRICE OF DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS](#a_013) | 51 |
| Item 10. | [RECENT SALES OF UNREGISTERED SECURITIES](#a_014) | 53 |
| Item 11. | [DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED](#a_015) | 57 |
| Item 12. | [INDEMNIFICATION OF DIRECTORS AND OFFICERS](#a_016) | 62 |
| Item 13. | [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#a_017) | F-1 |
| Item 14. | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#a_018) | 63 |
| Item 15. | [FINANCIAL STATEMENTS AND EXHIBITS](#a_019) | 63 |

---

**EXPLANATORY NOTE**

Metrospaces, Inc., a Delaware corporation, is filing this General Form for Registration of Securities on Form 10 (this "Registration Statement") to register its common stock, par value $0.000001 per share (the "Common Stock"), pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended from time-to-time (the "Exchange Act"). Unless otherwise noted, references in this Registration Statement to "Metrospaces," the "Company," "we," "our," or "us," means Metrospaces, Inc. individually or, as the context requires, collectively with its subsidiaries.

Once this Registration Statement becomes effective, we will be subject to the requirements of Regulation 13A under the Exchange Act, which will require us to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act.

**FORWARD-LOOKING STATEMENTS**

This Registration Statement contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not historical facts but rather are plans and predictions based on current expectations, estimates, and projections about our industry, our beliefs, and assumptions. We use words such as "may," "will," "could," "should," "anticipate," "expect," "project," "intend," "plan," "believe," "seek," "estimate," "assume," and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors, some of which are beyond our control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. These risks and uncertainties include those described in the section titled "Risk Factors". Although management believes that the assumptions underlying the forward looking statements included in this Registration Statement are reasonable, they do not guarantee our future performance, and actual results could differ from those contemplated by these forward looking statements. You should not place undue reliance on these forward-looking statements because the matters they describe are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Our forward-looking statements are based on the information currently available to us and speak only as of the date hereof. Over time, our actual results, performance, or achievements may differ from those expressed or implied by our forward-looking statements, and such difference might be significant and materially adverse to our security holders. Except as required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. We have identified some of the important factors that could cause future events to differ from our current expectations and they are described in this Registration Statement, which you should carefully review in its entirety, and especially the sections titled Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as in other documents that we may file with the Securities and Exchange Commission (the "Commission") following the effectiveness of this Registration Statement, all of which you should review carefully. Please consider our forward-looking statements in light of those risks as you read this Registration Statement. Additionally, the following discussion regarding our financial condition and results of operations should be read in conjunction with the financial statements and related notes included in this Registration Statement. Risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, include the following, without limitation:

● trends in the real estate industry, the real estate financing industry and the Company's market size;

● the Company's growth prospects;

● new product and service offerings the Company may introduce in the future;

● the ability of the Company to implement business plans, forecasts, and other expectations as well as identify and realize additional opportunities;

● the price of the Company's securities, including volatility resulting from being traded on the OTC Pink Marketplace, as well as the industry in which the Company operates and plans to operate;

● an economic downturn which could impair our ability to continue to operate, which could lead to the loss of some or all of our investments;

● the elevating levels of inflation, and its impact on our portfolio properties and on our business in general;

● the impact of geopolitical conditions, including the ongoing conflicts between Ukraine and Russia and its impact on financial market volatility, global economic market, and various sectors, industries and markets;

● social, political, economic and other conditions and events (including natural disasters, epidemics, pandemics and terrorism);

● uncertainties associated with the continued impact from the COVID-19 pandemic, including its impact on our business prospects and objectives;

● our future operating results;

● competition with other entities;

● adequacy of our financing sources and working capital;

● loss of key personnel;

● timing of cash flows, if any, from the operations of our portfolio companies;

● the effect of legal, tax and regulatory changes; and

● other risks, uncertainties, and factors we identify under Item 1A, "Risk Factors", and elsewhere in this Registration Statement, as well as in filings made from time-to-time with the SEC.

**TRADEMARKS, SERVICE MARKS AND TRADE NAMES**

This Registration Statement contains references to our trademarks, service marks and trade names and to trademarks, service marks and trade names belonging to other entities. Solely for convenience, trademarks, service marks and trade names referred to in this Registration Statement, including logos, artwork and other visual displays, may appear without the® or TM symbols, but such references are not intended to indicate, in any way, that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. Except as set forth in this Registration Statement, we do not intend our use or display of other companies' trade names, service marks or trademarks or any artists' or other individuals' names to imply a relationship with, or endorsement or sponsorship of us by, any other companies or persons.

---

| | |
|:---|:---|
| **ITEM 1.** | **BUSINESS.** |

---

**Business History**

 ****

Metrospaces, Inc. (the "Company") was incorporated as Strata Capital Corporation on December 10, 2007, under the laws of the State of Delaware. The company previously acquired land and designed, built, developed and resold condominiums, principally in urban areas in Latin America, alone or together with investors. The Company previously had an operating subsidiary, Urban Spaces, Inc., a Nevada corporation ("Urban Spaces"), which the Company acquired on August 13, 2012. In connection with the acquisition, the Company issued 2,000,000,000 shares of Common Stock to Oscar Brito, who thereby became the Company's controlling stockholder, and assumed the positions as the Company's sole director and president. The Company no longer conducts any business under Urban Spaces, and it is treated as a disregarded entity.

The Company changed its name to Metrospaces, Inc. on November 10, 2012. On December 15, 2021, the Company amended its Certificate of Incorporation to provide for 36,200,000,000 authorized shares of common stock ($0.000001 par value), and 10,000,000 authorized shares of preferred stock ($0.000001 par value).

In June 2017, the Company acquired from the majority owner, ("seller") a fifty one percent (51%) position of theof the ownership units of Etelix, a Miami-based telecommunications provider, in exchange for a $2 million promissory note. In June 2018, Etelix merged with a publicly traded OTC-Listed company, and became IQSTELl, Inc. (OTC:IQST). The company was not able to honor its financial commitments according to the promissory note so on March 20, 2020, the company entered into a settlement agreement with the seller and ended up receiving settling with the seller keep 915,000 common shares of IQST for the work performed and funds paid, while giving back the rest. During the year 2021 and 2022 completely divested these shares and received approximately $700,000 in cash proceeds. Since then, the company has used these proceeds along with new investor funds to transform its business from a high-end residential and boutique hotel developers into a Prop-tech company focused on co-living and crowdfunding of real estate-backed equity and debt participation.

**Business Overview**

The Company believes that new fintech, IoT and AI solutions can be applied to the real estate industry in a fundamentally transformative way. The Company is currently developing three new technology platforms facilitating rental and segmented property management as well as crowdfunding of real estate properties. The Company seeks to reinvent the real estate industry through innovative IT solutions which solve a broad array of problems in this space. Our products and services utilize AI, fintech and other leading edge technologies to facilitate enhanced end-to-end management and administration, increased transparency, and heightened security property transactions.

As part of the execution and new focus of the company's new business plan, during 2021 and 2022, the company acquired approximately $5 million in real estate properties, with the intent of using these properties as case studies for it's prop-tech platform. These properties are comprised of 21 single-family homes in Indianapolis, acquired for the purpose of refurbishing and a portion of them, to rent out under co-living and the rest under traditional rent. Additionally, the company would sell via a registered offering crowdfunding campaign, a portion o fthe equity and/or debt instrument on these properties. The company also acquired an empty lot for the construction of a 4-bedrom and 3 bath townshouse in the ciy of Philadelphia and a 60,000 ft2 office building in the city of Houston. The Philadelphia townhouse would be managed under co-living and the office building would be sold under a to-be-determined crowdfunding campaign. As of December 31, 2022, the company has invested approximately $1 million on the new IT platform. Currently, the company has finished 3 platforms, one for the management of properties under a co-living strategy and 2 specialized property crowdfunding platforms. Lastly, the company made a $200,000 equity investment in the development of a total of 9 vacation villas in Santo Domingo, in the Dominican Republic. This project is called Inifinity View Villas and sits on the mountains of the Loma Linda sector in Santo Domingo. The project is comprised of 9 2 and3BR villas, divided into 3 phases of 3 villas. Phase I has been completed and the company is looking to launch one of its crowdfunding platforms around the sale of a portion of the equity in Phases II and III.

The Company is now acting to merge its world-class real estate development and investment strategy with its cutting edge technology portfolio, developing the Company into a Property-Technology firm. The Company believes that new blockchain, IoT and AI solutions can be applied to the real estate industry in a fundamentally transformative way. The Company is currently developing two new technology platforms facilitating rental transactions and real estate transactions. The Company seeks to reinvent the real estate industry through innovative IT solutions which solve a broad array of problems in this space. Our products and services utilize AI, blockchain and other leading edge technologies to facilitate enhanced end-to-end management and administration, increased transparency, and heightened security property transactions.

**Operating Divisions**

*MetroHouse*

 

The Company has finalized and is live, a new proprietary co-living platform that will connect property owners and renters of signle-rooms as opposed to entire apartments. The platform, called MetroHouse, will allow for third-party property owners to list rental units on a per-room basis, while also offering complete turn-key experiences for renters. Each unit will offer a standardized experience with standardized common areas and bedrooms, charged through a monthly membership fee between $1,000 and $1,800. Each unit will be fully furnished, and will also feature different entertainment and social experiences, such as rooftops and patios. Additionally, MetroHouse offers property owners the option to use curated designs and furnishing layouts for their units, access to vetted and verified prospective renters, and offer additional services to renters.

The platform has already launched with 2 of our single-family homes in Indianapolis and will add another 4 unites in the coming weeks, as the houses are refurbished and furunished. The company expets to have 4 units ready on the platform by the end of 2Q of 2023. As this case study proves itself, we feel it would be reasonable to expect that could have a total of 150 single family homes/apartments under our platform in Indianapolis alone. We have strategic investors and partners in the Indinampolis that have offered verbal express interest in joining our platform once we show case our execution. We expect to also open Philadelphia and Ft. Lauderdale by the end of the year. The platform will offer different types of homes and apartment units, ranging from single family homes to apartment units. The platform will enable property owners to efficiently rent unused rooms, while concurrently allowing renters to find living quarters without entering into long term leases. The MetroHouse platform will be free for renters, while property owners will be charged a service fee to use the platform. Based on comparable market services, property owners can expect to generate 15% to 25% higher income from their properties, while increasing the utilization of unsecured rooms.

The platform will focus on secondary cities, such as Philadelphia, Jacksonville, Houston and other cities with a growing millennial population and high vacancies for homes and bedrooms. Additionally, we expect to expand the platform to international tourist destinations, such as the Dominican Republic. A beta version of MetroHouse was launched in the fourth quarter of 2021, and we are partnering with our IT provider, Shokworks, to further refine and enhance the user experience. The Company plans to conduct the MetroHouse business through its wholly owned subsidiary, MetroHouse, LLC ("MetroHouse").

*MetroCrowd*

In addition to MetroHouse, we are developing MetroCrowd, a platform which would allow for real estate developers to "crowdfund"capital for new projects and/or project acquitision. The platform will help give access to retail investors to different properties under simple underwriting strategies. The initial properties we'll look to list is our portfolio of single-family homes in Indianapolis. The platform will help property owners legally underwrite and perform the sale of equity and/or debt instruments backed by real estate. All crowdfunding campaign will be performed under SEC-compliant legal structures such as registration statements (Regulation A, S-1 etc.) and legal exemptions such as Regulation D to accredited investors. Additionally, all of Metrocrowd's crowdfunding campaigns will be vetted and approved by a registered securities broker-dealer. The Company is actively working with legal teams, broker dealers to be compliant on its first campaign. Also, the company is using industry-vetted 3<sup>rd</sup> party service providers to verify Know Your Customer (KYC), Anti-Money Laundering (AML) agencies and Accredited Investor status where applicable. A final n of MetroCrowd is expected to be launched in the beginning third quarter of 2023.

In summary, our service to 3<sup>rd</sup> party property owners will be facilitate access to capital via SEC-compliant and regulated crowdfunding structure, and our service to investors is to give access to retail investors to dynamically choose real estate strategies or properties in which to invest. We are helping with the democratization of capital to real estate projects, since some of our investment miminums will be as low as $250.

*Abode Stays, Inc. ("Abode")*

 

Abode is a crowdfunding platform for small vacation resorts and villas. The company will crowdfunvacation projects in the $3-7 million range to finance expansions and/or final capital in exotic vacation real estate properties. Abode will crowdfund fractional ownership in real income-producing vacation properties. Each investor will also have special access to events, as well as discounts according to the level of investment of each investor.

Just as with Metrocrowd, Abode will be fully SEC-compliant on its campaign as well as industry-vetted 3<sup>rd</sup> patry verifiers of Accredited Investor status, KYC, AML requirements etc.

All properties will be branded, managed and operated by Abode with the collaboration of local JV

partners. Investors in every property, will have special discounts and access to all other Abode-branded

properties.

Abode is commercial ready, however, launch is still being planning. However, we expect Abode to launch by end of April 2023.

**Owned Real Estate Portfolio**

*Infinity View Villas ("IVV")*

 

On March 23, 2021 the Company entered an agreement to acquire 3-bedroom villas in Infinity View Villas in Loma Linda, the Dominican Republic, which will be marketed to travelers as the tourism industry recovers from the COVID-19 pandemic. Infinity View Villa is comprised of a total of 12 2 and 3BR vacation villas. This villa acquired is part of Phase I which is comprised of 3 villas. This Phase I is finalized and now the company is looking to list the project on its Abode platform to finance the development of Phases II and III..

The Company has additional rights to co-develop three additional villas, where the Company can make investments of up to One Hundred Twenty Thousand Dollars ($120,000) in the development of the properties, in exchange for Sixty Percent (60%) of profits from the sale of the properties. As of the date of this Registration Statement, Phase I (one villa) has been completed, and construction of the remaining two villas is projected to be completed by the end of the third quarter of 2023.

*Fishtown, Pennsylvania*

 

MetroHouse owns a 50,000 sqft, fully entitled residential site in Fishtown, Pennsylvania. The site will eventually be developed into a 3-story townhouses, intended for co-living. The townhouses will be managed and operated by MetroHouse. The Company expects to begin development and construction of the townhouses in the third quarter of 2023.

*Houston*

 

On August 9, 2021, the Company acquired a 51% stake in a 60,295 square foot office building located in Houston for $3,850,000. The Company will make additional capital investments into the building, and offer both traditional office leases and co-working spaces. Historically, the building has generated Net Operating Income of approximately $469,000 per year.

*Indianapolis*

 

On November 21, 2021, the Company acquired six multi-family homes in Indianapolis. Each home consists of two fully furnished units, each having 2 – 3 bedrooms and 1 – 3 bathrooms, with high end finishes and appliances. As of February 14<sup>th</sup>, 2023, Company owned properties in Indianapolis include:

**List of Owned Properties in Indianapolis**

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| | | | |
|:---|:---|:---|:---|
| **Unit** | **Bedrooms** | **Bathrooms** | **Square Footage** |
| **1221 Union Street** | 3 | 2 | 1281 |
| **1223 Union Street** | 3 | 2 | 1281 |
| **1322 Union Street** | 2 | 1.5 | 1181 |
| **1324 Union Street** | 2 | 1.5 | 1181 |
| **1326 Union Street** | 3 | 3 | 1583 |
| **1328 Union Street** | 3 | 3 | 1583 |
| **1406 Union Street** | 3 | 3 | 1347 |
| **1408 Union Street** | 3 | 3 | 1347 |
| **1709 Union Street** | 3 | 2 | 1188 |
| **1711 Union Street** | 2 | 2 | 1188 |
| **1730 Union Street** | 3 | 1.5 | 1332 |
| **1732 Union Street** | 3 | 1 | 1228 |

---

These units are in varying stages of renovation, with 6 units currently being used for short and long term rentals. All houses will eventually be fully incorporated in the MetroHouse platform for co-living arrangements.

***Offices***

 ****

The Company rents office spaces located at 6 St. Johns Lane, New York, New York, a 650 square foot facility hosting the Company's senior executive team and administrative staff. The Company pays approximately $750.00 per month in rent for its offices.

***Overview of the Real Estate and Property Technology Market***

*Property Technology*

 

Property technology (also known as proptech, PropTech, prop-tech, and real estate technology) is the term commonly used to describe any technology for the real estate space. It specifically refers to the application of information technology and platform economics to the real estate industry. Property technology overlaps with financial technology, including uses like online payment and booking systems.

In great part due to the challenges presented by the COVID-19 pandemic, property technology has emerged to meet the demand to originate and conclude transactions without meeting in person. Searching for property, whether it be acquisition, rent, or co-working, the search process can be a difficult process, even with the use of traditional search engines. Property technology enables agents, owners, renters, investors, and others to establish custom parameters such as location, property features, and price tag to filter out unsuitable results and only present options most likely to meet the needs of the interested parties.

*Changing Global Market*

 

According to market research provided by the Forbes Real Estate Counsel, the market for commercial real estate at the end of 2021 will continue to grow, due to low lending rates and inflationary pressure. By 2030, the commercial real estate brokerage and management market is expected to reach $424,406.0 million, according to the Global Opportunity Analysis and Industry Forecast, 2021-2030.

Demand for investment properties will continue to rise while property owners will continue to sell due to market demand. Our success depends on a high volume of commercial real estate transactions throughout the markets in which we operate. This transaction volume affects substantially all of the ways that we generate revenue, including our ability to acquire new real estate and generate associated fees and memberships.

*Growing Customer Demand*

 

Increasingly, companies are returning to work, but are changing their in-office requirements for employees. Stable companies are likely to renew their leases but additionally engage in acquiring alternative or shared workspaces. Further according to the CBRE EMEA Occupier survey of 2017, thirty percent of the global corporate real estate will be made up of flexible space by 2030. Employees expect high-quality personalized services, with accessibility and flexibility as the two key characteristics for a productive workspace. By continuing to invest in providing cutting edge IT infrastructure and connectivity with flexible opportunities at all of our locations, our customers reap the rewards in their own business ventures.

*Impacts of a Global Pandemic* 

 

We believe that COVID's impact on the volume of our transactions depends in part on the potential limitations imposed by governmental authorities on processes and procedures attendant to commercial real estate transactions, such as mask and vaccine mandates for COVID; appraisals, in-person showings and county recordings; as well as the impact of COVID's overall on the U.S. economy. Further, it is our belief that consumer spending on real estate transactions may be adversely affected by a number of macroeconomic factors related to COVID, including but not limited to:

● declining wages and increased unemployment;

● a lack of consumer confidence in the economy and recessionary conditions;

● stock market volatility and decline coupled with lower yields on investment portfolios; and

● stringent mortgage financing conditions.

The COVID pandemic has significantly and adversely affected, and may continue to significantly and adversely affect, commercial real estate transaction volume. Beginning in March 2020 through the third quarter of 2021, state and federal governmental authorities have continued to place limitations on in-person activities related to employment and are now limiting in-person employment with continued mask mandates and vaccine mandates.

*Consumer Rental Market*

 

Partially because owning a home has become less affordable, the number of single-family homes used as rental properties has increased significantly over the last 10-years. The single-family rental industry has been the fastest-growing segment of the housing market, growing 30% over the last 10-years, compared with 15% for multifamily rentals during that same period. According to the U.S. Census Bureau, there are now approximately 14.8 million single family rental homes in the U.S., representing approximately 10% of all housing units.

***Impact of Inflation and Rising Interest Rates***

We believe that the direct impact of inflation on our business is largely positive. Rising rents in nominal terms directly lead to higher competition for competitively priced rental units. Rising property values and a tighter lending market have forced more residents to rent rather than buy due to affordability issues.

***Competitive Strengths***

 

We believe the Company is uniquely positioned to generate compelling risk-adjusted returns. The Company's management team has extensive experience in the real estate industry, as well as in the technology sector and development of mobile app platforms. The Company already has an impressive real estate portfolio, and will seek additional opportunities for acquisitions which complement the Company's move into the property technology market.

**Investment Selection**

The Company's CEO, Oscar Brito, will responsible for identifying and sourcing suitable real estate investments and potential company acquisition targets. Mr. Brio will evaluate data gathered through a due diligence process that reviews potential investment and acquisition targets. Upon determining which opportunities represent a good fit for the Company, Mr. Brio will bring those opportunities to the Board for further evaluation and consideration. The Board will make all final determinations regarding investments and acquisitions.

***Government Regulations***

 ****

Our business and properties are subject to state and federal laws that apply to businesses generally, including laws and regulations related to labor relations, taxes, employment, franchise regulations, worker safety and privacy laws. We believe that we are in material compliance with such covenants, laws, ordinances and rules. We also require that our tenants agree to comply with such covenants, laws, ordinances and rules.

We believe we have all material licenses and permits needed to conduct operations and that we are in material compliance with all applicable regulatory requirements. We could, however, incur significant liabilities if we fail to comply with such requirements.

***Municipal Regulations and Homeowners' Associations***

Some of our properties are subject to various municipal regulations and orders and county and city ordinances, including without limitation, use, operation and maintenance of our properties. Certain of our properties are subject to the rules of the various HOAs where such properties are located. HOA rules and regulations are commonly referred to as "covenants, conditions and restrictions," and typically consist of various restrictions or guidelines regarding use and maintenance of the property, including, among others, noise restrictions or guidelines as to how many cars may be parked on the property.

***Laws and Regulations Regarding Privacy and Data Protection***

We are subject to a variety of laws and regulations that involve matters such as privacy, data protection, content, consumer protection and other matters. We may receive, store and process personal information and other employee, consumer and tenant information. There are numerous federal and state laws, as well as regulations and industry guidelines, regarding privacy and the storing, use, processing and disclosure and protection of personal information, which are subject to differing interpretations. For example, the California Consumer Privacy Act and the Nevada Privacy Law, which took effect in January 2020, establish certain transparency rules and create new data privacy rights for users, including more ability to control how their data is shared with third parties. See "*Risk Factors*." Our business is subject to laws and regulations regarding privacy, data protection, consumer protection and other matters. Many of these laws and regulations are subject to change and uncertain interpretation and could result in claims, changes to our business practices, monetary penalties, or other harm to our business and results of operations, including increased compliance costs.

***Fair Housing Act***

We are also subject to governmental laws, regulations and covenants that are applicable to our properties or that may be passed in the future, including the Fair Housing Act ("***FHA***"), affordability covenants, permits, licensing and zoning requirements, all of which may adversely affect our ability to manage customer properties and could adversely affect our growth strategy.

The FHA and its state law counterparts and the regulations promulgated by the United States Department of Housing and Urban Development and various state agencies, prohibit discrimination in housing on a variety of bases, including but not limited to prohibiting discrimination on the basis of race or color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women and people in the process of adopting a child or securing custody of children under the age of 18), disability or, in some states, financial capability. We train our associates on a regular basis regarding such laws and regulations and we believe that our properties and practices are in compliance with the FHA and other such regulations.

***Tenant Relief Laws***

We are also subject to tenant relief laws, including laws regulating evictions, rent control laws and other regulations that limit our customer's ability to increase rental rates all of which may negatively impact our property management income and profitability. Further, continued federal, state and local implementation and use of moratoriums on residential evictions could also negatively impact property management income and profitability.

***Competition***

 

We face competition from different sources, such as traditional real estate brokers, and online and mobile software application providers in the commercial and residential real estate industry. In addition, owners of single family rental properties may decide to manage their property themselves without the use of a platform or application to locate renters. Real estate portfolio management software solutions and real estate lease management and administration software solutions may also provide management alternatives. However, we believe that our market knowledge in our markets and our technology will provide us with competitive advantages. Further, we have benefited from increases in long-term demand due to factors including renters' decisions to leave large city centers for secondary markets. Further, a result of the COVID-19 pandemic is that work-from-home has driven further demand as employees may feel less need to live near large city centers.

Additional competitors (including companies which could have greater financial resources and greater access to data, financial, product development, technical, analytic or marketing resources than we do) may enter a market and competition may intensify. A company which already had or has a presence in the residential real estate industry could use its resources to expand into the rental market. While we believe that we have successfully differentiated ourselves from existing competitors, current or future competitors could materially harm our business. We may also enter markets where incumbent players have greater name recognition and resources, creating challenges as we work to expand.

***Intellectual Property and Technology***

As of the date of this Registration Statement, we have one service mark for "Metrospaces."

**Growth Strategy**

We'll be targeting new JV partnerhips with established real estate firms. As we are able to develop our ability to market our crowdfunding strategy, we'll focus on bridging crowdfunding capital with established real estate developers, investors etc. In the Indianapolis area, our direct investors and associates manage up to 700 single-family homes that can be repositioned as co-living as well crowdfunded to equity and debt investors. On th co-living side, our plan is to open up operations in Philadelphia and Ft. Lauderdale before the end o 2Q 2023 and likely an additional 3-4 cities, including an international city, most likely Madrid.

***Seasonality***

 

Our business is not subject to seasonality.

***Smaller Reporting Company***

 

The Company is a "smaller reporting company" as defined in Rule 12b-2 under the Exchange Act. There are certain exemptions available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (2) scaled executive compensation disclosures; and (3) the requirement to provide only two years of audited financial statements, instead of three years. As long as we maintain our status as a "smaller reporting company", these exemptions will continue to be available to us.

***Research and Development***

Our research and development expenses for the years ended December 31, 2021 and 2020 totaled $[●] and $[●], respectively, and for the nine-month periods ended September 30, 2022 and 2021 totaled $0 and $0, respectively, and relate to the development of our products. None of these costs was borne directly by our customers.

***Employees***

As of February 13, 2023, we have approximately two full-time employees. None of our employees are covered by any collective bargaining agreements and we have never experienced a major work stoppage, strike, or dispute. We consider our relationship with our employees to be outstanding.

***Taxation***

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We have elected to be taxed as a subchapter C corporation, and, as such, are required to pay federal income tax at the corporate tax rates on our taxable income.

***Going Concern***

 

We are dependent upon the receipt of capital investment and other financing to fund our ongoing operations and to execute our business plan. If continued funding and capital resources are unavailable at reasonable terms, we may not be able to implement our plan of operations. We may be required to obtain alternative or additional financing, from financial institutions or otherwise, in order to maintain and expand our existing operations. The failure by us to obtain such financing would have a material adverse effect upon our business, financial condition and results of operations.

Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our independent registered public accounting firm has included an explanatory paragraph in their report in our audited financial statements for the fiscal years ended December 31, 2021 and 2020 to the effect that our losses from operations and our negative cash flows from operations raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern within one year after the date that the financial statements are issued. We may be required to cease operations which could result in our stockholders losing all or almost all of their investment.

***Company Information***

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The address of our principal executive offices is 6 St. Johns Lane, New York, New York, Our telephone number is (305) 600-0407. Our website address is www.metrospaces.com. Information contained on the website does not constitute part of this Registration Statement. We have included our website address in this Registration Statement solely as an inactive textual reference.

***Reports to Security Holders***

We are not currently required to file periodic reports with the Commission, nor are we required to deliver an annual report to our stockholders. However, in compliance with OTC Markets Group Inc. (the "OTCM") Alternative Reporting Standards, we file alternate annual and interim reports, all of which can be found on the disclosure tab of our company profile on the OTCM's website at <u>https://www.otcmarkets.com/stock/MSPC/disclosure</u>.

Once this Registration Statement is deemed effective, we will be subject to requirements of Section 13(a) under the Exchange Act, which will require us to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers registering securities pursuant to Section 12(g) of the Exchange Act.

You may read and copy this Registration Statement and any future reports we file with the Commission free of charge through the Commission's website at <u>www.sec.gov</u>. You may obtain further information about us on our website at <u>www.metrospaces.com</u>.

 **Item 1A. Risk Factors.**

*Investing in our securities involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information contained in this Registration Statement or in any other documents incorporated by reference into this Registration Statement, in light of your particular investment objectives and financial circumstances. Moreover, the risks so described are not the only risks we face. Additional risks not presently known to us or that we currently perceive as immaterial may ultimately prove more significant than expected and impair our business operations. Any of these risks could adversely affect our business, financial condition, results of operations, or prospects. The quoted price of the Common Stock could decline due to any of these risks and you may lose all or part of your investment.*

**Risks Related to Our Business and Operations**

***We have a limited operating history on which to judge our new business prospects and management.***

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We commenced operations in the commercial and residential real estate industry in early 2017. Accordingly, we have only a limited operating history upon which to have to base an evaluation of our business and prospects. Operating results for future periods are subject to numerous uncertainties and we cannot assure you that we will achieve or sustain profitability. Our prospects must be considered in light of the risks encountered by companies in the early stage of development, particularly companies in new and rapid evolving markets. We cannot assure you that we will successfully address any of these risks.

**Our financial status creates doubt about whether we will continue as a going concern.**

Our net loss of $4,384,423 for the nine months ended September 30, 2022, resulted from $2236,336 in general and administrative expenses, $906,772 in interest expenses and a $1,081,370 loss in the fair value of our derivatives. Additionally, we had revenues of $223,977 for the nine months ended September 30, 2022. Furthermore, as of September 30, 2022, we had total liabilities of $13,007,025, including $6,302,055 in Notes Payable and $1,487,516 in Convertible Notes Payable. As of September 30, 2022, we had $79 in cash and cash equivalents with which to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

Accordingly, we cannot assure you that we will achieve sustainable operating profits as we continue to expand our product line and otherwise implement our growth initiatives. Any failure to achieve and maintain profitability would have a materially adverse effect on our ability to implement our business plan, our results and operations, and our financial condition, and could cause the value of our Common Stock to decline, resulting in a significant or complete loss of your investment.

***Our independent registered public accounting firm's reports for the fiscal years ended December 31, 2021 and 2020 have raised substantial doubt as to our ability to continue as a "going concern."***

Our independent registered public accounting firm indicated in its reports on our audited consolidated financial statements as of and for the years ended December 31, 2021 and 2020 that there is substantial doubt about our ability to continue as a going concern. A "going concern" opinion indicates that the financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result if we do not continue as a going concern. Therefore, you should not rely on our consolidated balance sheet as an indication of the amount of proceeds that would be available to satisfy claims of creditors, and potentially be available for distribution to stockholders, in the event of liquidation. The presence of the going concern note to our financial statements may have an adverse impact on the relationships we are developing and plan to develop with third parties as we continue the commercialization of our products and could make it challenging and difficult for us to raise additional financing, all of which could have a material adverse impact on our business and prospects and result in a significant or complete loss of your investment.

***Our ability to grow and compete in the future will be adversely affected if adequate capital is not available to us or not available on terms favorable to us.***

We have limited capital resources. To date, we have financed our operations through a mix of equity and debt investments by investors, and we expect to continue to do so in the foreseeable future. Our ability to continue our normal and planned operations, to grow our business, and to compete in our industry will depend on the availability of adequate capital.

We cannot assure you that we will be able to obtain additional funding from those or other sources when or in the amounts needed, on acceptable terms, or at all. If we raise capital through the sale of equity, or securities convertible into equity, it would result in dilution to our then-existing stockholders, which could be significant depending on the price at which we may be able to sell our securities. If we raise additional capital through the incurrence of additional indebtedness, we would likely become subject to further covenants restricting our business activities, and holders of debt instruments may have rights and privileges senior to those of our then-existing stockholders. In addition, servicing the interest and principal repayment obligations under debt facilities could divert funds that would otherwise be available to support development of new programs and marketing to current and potential new clients. If we are unable to raise capital when needed or on attractive terms, we could be forced to delay, reduce, or eliminate development of new products or future marketing efforts, or reduce or discontinue our operations. Any of these events could significantly harm our business, financial condition, and prospects.

***We are employing a business model with a limited track record, which may make our business difficult to evaluate.***

Until recently, the market for leasing of single-family residences on a per room basis for a term longer than a vacation term was very small. Our business strategy involves assisting owners of single-family rental properties in leasing, managing and buying and selling these properties. This market is relatively new, and we are unaware of any other companies with a track record in this business which might assist us in predicting whether our business model and investment strategy can be implemented and sustained over an extended period of time. It may be difficult for you to evaluate our potential future performance without the benefit of established long-term track records from companies implementing a similar business model. We may encounter unanticipated problems as we continue to refine our business model, which may adversely affect our results of operations and cause our stock price to decline significantly.

**The Company's failure to identify and complete accretive acquisitions may adversely affect the profitability of the Company.**

The Company's business strategy includes identifying and completing accretive rental properties acquisitions. The Company will compete with other investors who are engaged in the acquisition of rental properties, and these competitors may affect the supply/demand dynamics and may increase the price the Company must pay for the properties it seeks to acquire, and these competitors may succeed in acquiring those properties. Any delay or failure on the Company's part to identify, negotiate, finance on favorable terms, consummate and integrate such acquisitions could materially impede the Company's growth. The Company may also incur costs that it cannot recover if it abandons a potential acquisition. If the Company does not reinvest proceeds received from rental property dispositions timely, it could result in lower income. The Company's profitability may also suffer because future acquisitions of rental properties may not yield the returns the Company expects, and the integration of such acquisitions may cause disruptions in the Company's business and to management or may take longer than projected.

**Renovations and capital improvements may reduce the Company's profitability.**

If the Company is able to acquire rental properties, the Company will likely have ongoing needs for renovations and capital improvements to maintain them. In addition, from time to time, the Company will need to make renovations and capital improvements to comply with applicable laws and regulations, to remain competitive with other rental properties and to maintain their economic value. The costs of capital improvements the Company may need or choose to make could reduce the funds available for other purposes and may reduce the Company's profitability.

***If we do not innovate and provide products and services that are attractive to our users and to our advertisers, our business could be harmed.***

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Our success depends on our continued innovation to provide products and services that make our website and mobile applications useful for consumers and real estate and mortgage professionals and attractive to our advertisers. As a result, we must continually invest significant resources in research and development in order to improve the attractiveness and comprehensiveness of our products and services and effectively incorporate new Internet and mobile technologies into them. If we are unable to provide products and services that users, including real estate professionals, want to use, then users may become dissatisfied and use competitors' websites and mobile applications. If we are unable to continue offering innovative products and services, we may be unable to attract additional users and advertisers or retain our current users and advertisers, which could harm our business, results of operations and financial condition.

**Real estate impairment losses may adversely affect the Company's financial condition and results of operations.**

As a result of changes in an individual rental property's operating results or to the Company's planned hold period for a particular property, the Company may be required to record an impairment loss for a given property it acquires. The Company plans to analyze any rental property it acquires individually for indicators of impairment throughout the year. The Company plans to record impairment losses on a property if indicators of impairment are present, and the sum of the undiscounted cash flows estimated to be generated by the respective property over its estimated remaining useful life, based on historical and industry data, is less than the property's carrying amount. Indicators of impairment include, but are not limited to, a property with current or potential losses from operations, when it becomes more likely than not that a property will be sold before the end of its previously estimated useful life or when events, trends, contingencies or changes in circumstances indicate that a triggering event has occurred and an asset's carrying value may not be recoverable.

**The Company's inability to obtain financing on favorable terms or pay amounts due on its financing may adversely affect the Company's operating results.**

The Company anticipates using financing to acquire properties and perform renovations to its properties. The credit markets have historically been volatile and subject to increased regulation in recent years, and as a result, the Company may not be able to obtain debt financing to meet its cash requirements, including refinancing any scheduled debt maturities, which may adversely affect its ability to execute its business strategy. If the Company refinances debt, such refinancing may not be in the same amount or on terms as favorable as the terms of the existing debt being refinanced. If the Company is unable to refinance its debt, it may be forced to dispose of rental properties or issue equity at inopportune times or on disadvantageous terms, which could result in higher costs of capital.

**Technology will likely be used in any future rental property operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business.**

The Company plans to rely on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes, including financial transactions and records, personal identifying information, reservations, billing and operating data. Some of the information technology will likely be purchased from third party vendors, on whom the systems depend. The Company plans to rely on commercially available and internally developed systems, software, tools and monitoring to provide security for processing, transmission and storage of confidential operator and other customer information, such as individually identifiable information, including information relating to financial accounts. It is possible that the safety and security measures taken will not be able to prevent the systems' improper functioning or damage, or the improper access or disclosure of personally identifiable information such as in the event of cyber-attacks. Security breaches, including physical or electronic break-ins, computer viruses, attacks by hackers and similar breaches, can create system disruptions, shutdowns or unauthorized disclosure of confidential information. Any failure to maintain proper function, security and availability of information systems could interrupt operations, damage reputation, subject the Company to liability claims or regulatory penalties and could have a material adverse effect on the business, financial condition and results of operations of the Company.

**The occurrence of a disaster, such as a cyber-attack against us or against a third-party that has access to our data or networks, a natural catastrophe, an industrial accident, failure of our disaster recovery systems, or consequential employee or vendor error, could have an adverse effect on our ability to communicate or conduct business, negatively impacting our operations and financial condition.**

Despite our implementation of a variety of security measures, our computer systems, networks, and data, like those of other companies, could be subject to cyber-attacks and unauthorized access, use, alteration, or destruction, such as from physical and electronic break-ins or unauthorized tampering, malware and computer virus attacks, or system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary, and other information processed, stored in, and transmitted through our computer systems and networks. Such an attack could cause, among other adverse effects, interruptions or malfunctions in our operations, misstated or unreliable financial data, misappropriation of assets, liability for stolen information, any of which could result in financial losses, litigation, regulatory penalties, client dissatisfaction or loss, reputational damage, and increased costs associated with mitigation of damages and remediation.

Third parties with which we do business (including vendors that provide us with services) may also be sources of cybersecurity or other technological risks. We outsource certain functions and these relationships allow for the storage and processing of our information, as well as client, counterparty, employee and borrower information. Cybersecurity failures or breaches by service providers also have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, violations of applicable privacy and other laws, regulatory fines, penalties, reputation damages, reimbursement of other compensation costs, or additional compliance costs. While we engage in actions to reduce our exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other cybersecurity incidents that affects our data, resulting in increased costs and other consequences, as described above. The Company has implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions but these measures, as well as the Company's increased awareness of the nature and extent of a risk of a cyber-incident, may be ineffective and do not guarantee that a cyber-incident will not occur or that the Company's financial results, operations or confidential information will not be negatively impacted by a cybersecurity or cyber intrusion incident. Substantial costs may be incurred in order to prevent any cyber incidents in the future.

Privacy and information security laws and regulation changes (including any regulations to report material cybersecurity incidents adopted by the SEC), and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, we may be required to expend significant additional resources to modify our protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks.

Our service providers could be impacted by restrictions enacted by governments in response to COVID-19, which are obstructing the regular functioning of business workforces (including requiring employees to work from external locations and their homes). Accordingly, the risks described above are heightened under current conditions.

**Potential losses not covered by insurance may adversely affect the Company's financial condition.**

The Company plans to maintain comprehensive insurance coverage for general liability, property, business interruption and other risks with respect to any rental property it acquires. These policies would offer coverage features and insured limits that the Company believes are customary for similar types of properties. There are no assurances that any such coverage will be available or at reasonable rates in the future. Also, various types of catastrophic losses, like earthquakes, hurricanes, or certain types of terrorism, may not be insurable or may not be economically insurable. Even when insurable, these policies may have high deductibles and/or high premiums. Additionally, although the Company may be insured for a particular loss, the Company is not insured against the impact a catastrophic event may have on the industry as a whole. There also can be risks such as certain environmental hazards that may be deemed to fall outside of the coverage. In the event of a substantial loss, the Company's insurance coverage may not be sufficient to cover the full current market value or replacement cost of its lost investment. Should an uninsured loss or a loss in excess of insured limits occur, the Company could lose all or a portion of the capital it has invested in a rental property, as well as the anticipated future revenue from each property. In that event, the Company might nevertheless remain obligated for any mortgage debt or other financial obligations related to the rental property. Inflation, changes in building codes and ordinances, environmental considerations and other factors might also prevent the Company from using insurance proceeds to replace or renovate a property after it has been damaged or destroyed. The Company also may encounter challenges with an insurance provider regarding whether it will pay a particular claim that the Company believes to be covered under its policy. Under those circumstances, the insurance proceeds the Company would receive might be inadequate to restore its economic position in the damaged or destroyed rental property, which would have a material adverse effect on the Company's financial condition and results of operations.

**The Company may incur significant costs complying with various regulatory requirements, which could materially and adversely affect the Company.**

The Company and any rental properties it acquires will be subject to various national and local regulatory requirements. These requirements are likely to be wide-ranging and include among others, state and local fire and life safety requirements, federal laws such as the Americans with Disabilities Act of 1990 and the Accessibility Guidelines promulgated thereunder and the Sarbanes-Oxley Act of 2002. Liability and costs associated with complying with these requirements are and could be material. If the Company fails to comply with these various requirements, it could incur governmental fines or private damage awards. In addition, existing requirements could change and future requirements might require the Company to make significant unanticipated expenditures, which could materially and adversely affect the Company.

***If we experience significant growth in the future, such growth may be difficult to sustain and may place significant demands on our administrative, operational and financial resources.***

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If we experience significant growth in the future, such growth could place additional demands on our resources and increase our expenses, as we will have to commit additional management, operational and financial resources to maintain appropriate operational and financial systems to adequately support expansion. There can be no assurance we will be able to manage our expanding operations effectively or we will be able to maintain or accelerate our growth, and any failure to do so could adversely affect our ability to generate revenue and control our expenses, which could adversely affect our business, financial condition and results of operations.

Moreover, we may have to delay, alter or eliminate the implementation of certain aspects of our growth strategy due to events beyond our control, including, but not limited to, changes in general economic conditions and commercial real estate market conditions. Such delays or changes to our growth strategy may adversely affect our business.

***Any future regulatory changes could result in the imposition of significant restrictions on our ability to do business.***

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Changes to the laws and regulations, and interpretations and enforcement of such laws and regulations, that govern the conduct of our business could adversely affect our operations and profitability. In addition, legislation and other regulatory initiatives taken or which may be taken in response to conditions in the financial markets, global supervision and other factors may lead to additional regulation of the insurance industry in the coming years. Such changes could increase our regulatory and compliance burden, resulting in increased costs, or limit the type, amount or structure of compensation arrangements into which we may enter with certain of our associates, which could negatively impact our ability to compete with other companies in recruiting and retaining key personnel. Changes in regulatory approval processes, rules and other dynamics in the regulatory process could adversely impact our ability to react to such changing conditions. We cannot predict what proposals may be made, what legislation or regulations may be introduced or enacted, or what impact any future legislation or regulations may have on our business, results of operations and financial condition.

***The COVID-19 pandemic could have a material adverse impact on our business, results of operations, and financial condition.*** In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. In January 2020, the WHO declared the COVID-19 outbreak a "Public Health Emergency of International Concern." This worldwide outbreak has resulted in the implementation of significant governmental measures, including lockdowns, closures, quarantines, and travel bans intended to control the spread of the virus. Companies are also taking precautions, such as requiring employees to work remotely, imposing travel restrictions, and temporarily closing businesses and facilities. These restrictions, and future prevention and mitigation measures, have had an adverse impact on global economic conditions and are likely to have an adverse impact on consumer confidence and spending, which could materially adversely affect the supply of, as well as the demand for, our products and services. Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil, which could also negatively impact our business, financial condition, and cash flow.

There is significant uncertainty in lessor retention, their ability to pay rent, and new actions enacted by federal and state governments preventing tenant evictions. Changing consumer preferences, and housing and work needs pose a significant risk to real estate developers and property owners. A significant percentage of people living in large urban areas, including those where we develop, own and operate properties, relocated to suburban and rural areas, which pose a significant risk to our ability to find lessors. Furthermore, high unemployment caused by the COVID-19 pandemic may affect our ability to collect rent or willing buyers for our properties. Lastly, various federal, state and local acts aimed at protecting renters, including moratorium on evictions, may have an adverse effect on our business.

The extent of the effect of COVID-19 on our operational and financial performance will depend on future developments, including the duration, spread, and intensity of the outbreak, all of which remain uncertain and difficult to predict, considering the rapidly evolving landscape. As a result, it is not currently possible to ascertain the overall impact of COVID-19 on our business. However, as the pandemic has continued for a prolonged period, it has had a material adverse effect on our business, results of operations, financial condition, and cash flow and could adversely impact the quoted price of our Common Stock on the OTC.

**There may be unknown risks inherent in our acquisitions of properties which could result in a material adverse effect on our business.**

We will conduct due diligence with respect to any acquisition we undertake, but we may not be aware of all of the risks associated with any of the acquisitions. Any discovery of adverse information concerning any of these acquisitions could have a material adverse effect on our business, financial condition and results of operations. While we may be entitled to seek indemnification in certain circumstances, successfully asserting indemnification or enforcing such indemnification could be costly and time consuming or may not be successful at all.

**Investors may lose their entire investment if we fail to implement our business plan.**

We have a minimal demonstrable operations record on which you can evaluate our business and prospects. Our prospects must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies in their early stages of development. These risks include, without limitation, competition, the absence of ongoing revenue streams, a competitive market environment, and lack of brand recognition. If we fail to implement and create a base of operations for our proposed business, we may be forced to cease operations, in which case investors may lose their entire investment.

**Economic recessions or downturns could impair our real estate investments and harm our operating results.**

In an economic downturn, we may have non-performing assets or non-performing assets may increase, and the value of our portfolio is likely to decrease during these periods. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us on terms we deem acceptable. These events could prevent us from increasing investments and harm our operating results.

**Terrorist attacks, acts of war, natural disasters, epidemics, pandemics (such as the COVID-19 pandemic), conflicts, social unrest and other social, political and economic conditions may disrupt our operations.**

Such acts have created, and continue to create, economic and political uncertainties and have contributed to recent global economic instability. Future terrorist activities, military or security operations, natural disasters, pandemics (including other variants of COVID-19) could further weaken the domestic/global economies and create additional uncertainties, which may negatively impact our business, operating results and financial condition. Losses from terrorist attacks and natural disasters are generally uninsurable.

In late February 2022, Russia launched a large scale military attack on Ukraine. The invasion significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO and the West, including the United States. In response to the military action by Russia, various countries, including the United States, the United Kingdom, and European Union, issued broad-ranging economic sanctions against Russia. Such sanctions included, among other things, a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs; a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications ("SWIFT"), the electronic banking network that connects banks globally; and restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. Additional sanctions may be imposed in the future. Such sanctions (and any future sanctions) and other actions against Russia may adversely impact, among other things, the Russian economy and various sectors of the economy, including but not limited to, financials, energy, metals and mining, engineering and defense and defense-related materials sectors; result in a decline in the value and liquidity of Russian securities; result in boycotts, tariffs, and purchasing and financing restrictions on Russia's government, companies and certain individuals; weaken the value of the ruble; downgrade the country's credit rating; freeze Russian securities and/or funds invested in prohibited assets and impair the ability to trade in Russian securities and/or other assets; and have other adverse consequences on the Russian government, economy, companies and region. Further, several large corporations and U.S. states have announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses.

The ramifications of the hostilities and sanctions, however, may not be limited to Russia and Russian companies but may spill over to and negatively impact other regional and global economic markets (including Europe and the United States), companies in other countries (particularly those that have done business with Russia) and on various sectors, industries and markets for securities and commodities globally, such as oil and natural gas. Accordingly, the actions discussed above and the potential for a wider conflict could increase financial market volatility, cause severe negative effects on regional and global economic markets, industries, and companies and have a negative effect on the Company's investments and performance. In addition, Russia may take retaliatory actions and other countermeasures, including cyberattacks and espionage against other countries and companies around the world, which may negatively impact such countries and the Company. The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any related events could have a significant impact on the Company's performance and the value of an investment in the Company.

**Risks Related to the Real Estate Industry**

**Our success depends on general economic conditions, the health of the U.S. real estate industry generally, and risks generally incident to the ownership and leasing of single-family residential real estate, and our business may be negatively impacted by economic and industry downturns, including seasonal and cyclical trends, and volatility in the single-family residential real estate lease market.**

Our success is impacted, directly and indirectly, by general economic conditions, the health of the U.S. real estate industry, and risks generally incident to the ownership and leasing of residential real estate, many of which are beyond our control. Our business could be harmed by a number of factors that could impact the conditions of the U.S. real estate industry, including:

● a period of slow economic growth or recessionary conditions;

● volatility in the residential real estate industry;

● insufficient or excessive single-family home inventory levels by market or price points;

● increasing mortgage rates and down payment requirements or constraints on the availability of mortgage financing;

● a low level of consumer confidence in the economy or the single-family residential real estate market due to macroeconomic events domestically or internationally;

● weak credit markets;

● instability of financial institutions;

● legislative or regulatory changes (including changes in regulatory interpretations or regulatory practices) that would adversely impact the single-family residential real estate market as well as federal and/or state income tax changes and other tax reform affecting real estate and/or real estate transactions;

● insufficient or excessive regional single-family home inventory levels;

● high levels of foreclosure activity, including but not limited to the release of homes already held for sale by financial institutions;

● adverse changes in local, regional, or national economic conditions;

● the inability or unwillingness of consumers to enter into single-family residential lease transactions;

● a decrease in the affordability of homes including the impact of rising mortgage rates, home price appreciation and wage stagnation or wage increases that do not keep pace with inflation;

● increasing home ownership rates, declining demand for real estate and changing social attitudes toward home ownership; and

● natural disasters, such as hurricanes, earthquakes and other events (including pandemics and epidemics) that disrupt local or regional real estate markets.

Our investments are and will continue to be concentrated in our existing and target markets and in the single-family residential leasing sector of the real estate industry. A downturn or slowdown in the rental demand for single-family housing caused by adverse economic, regulatory, or environmental conditions, or other events, in our markets may have a greater impact on our operating results than if we had more fully diversified portfolio of customers and properties.

In addition to general, regional, national, and international economic conditions, our operating performance will be impacted by the economic conditions in our markets. We base a substantial part of our business plan on our belief that desirability of owning and leasing single-family properties in our markets will continue to improve over the near to intermediate term. However, certain of these markets have experienced substantial economic downturns in recent years and could experience similar or worse economic downturns in the future. We can provide no assurance as to the extent property values leasing rates and operating fundamentals in these markets will improve, if at all. If an economic downturn in these markets occurs or if we fail to accurately predict the timing of economic improvement in these markets, the value of our properties could decline and our ability to execute our business plan may be adversely affected to a greater extent than if we provided services to a different real estate portfolio, which could adversely affect our financial condition, operating results and cause the value of our common stock to decline.

**Leasing fraud could adversely affect our business, financial condition, and results of operations.**

Criminals are using increasingly sophisticated methods to engage in illegal activities such as leasing fraud. As we make more of our services available over the internet, we subject ourselves to new types of leasing fraud risk. We use a variety of tools to protect against fraud; however, these tools may not always be successful. Allegations of fraud may result in fines, settlements, litigation expenses, and reputational damage.

**Our business will depend on tenants meeting their lease obligations and renewing their leases. Poor tenant selection, defaults, and non-renewals by tenants may adversely affect our reputation and financial performance.**

A substantial portion of our income will be derived from rental income from residents. As a result, our success depends in large part upon our ability to attract and retain qualified tenants. Our reputation and financial performance would be adversely affected if a significant number of tenants fail to meet their lease obligations or fail to renew their leases. For example, residents may default on rent payments, make unreasonable and repeated demands for service or improvements, make unsupported or unjustified complaints to regulatory or political authorities, use properties for illegal purposes, damage or make unauthorized structural changes to properties that are not covered by security deposits, refuse to leave the property upon termination of the lease, engage in domestic violence or similar disturbances, disturb nearby residents with noise, trash, odors, or eyesores, fail to comply with Home Owner Association ("HOA") regulations, sublet to less desirable individuals in violation of our lease, or permit unauthorized persons to live with them. Additionally, the COVID-19 outbreak, as well as continuing measures taken by governmental authorities and private actors to limit the spread of this virus or mitigate its impact, interfere with the ability of some of residents to meet their lease obligations and make their rent payments on time or at all. Furthermore, entities directed by, or notionally affiliated with, the federal government as well as some state and local jurisdictions across the United States have from time to time imposed temporary eviction moratoriums if certain criteria are met by residents, which allows residents to defer missed rent payments without incurring late fees, and in certain cases prohibit rent increases. Jurisdictions and other local and national authorities may expand or extend measures imposing restrictions on our ability to enforce residents' contractual rental obligations and limiting our ability to increase rents.

**Tenant and customer feedback in online sources (e.g., Yelp, Google, etc.) in this industry is often negative and, as we continue to grow our presence in the market, could adversely impact customer and tenant acquisition as well as our stock price.**

We may be the subject of negative social media posts, blogs, and other forums, thereby creating negative publicity. As a result, some customers may refrained from using our services, and some tenants may refrain from using our platform, which could materially and adversely affect our business, results of operations, and financial condition.

We will rely on our tenants to provide trustworthy reviews and ratings that our tenants may rely upon to help decide whether or not to use our services. If our tenants do not leave reliable reviews and ratings, other potential tenants may disregard those reviews and ratings, and our systems that use reviews and ratings to enforce quality standards would be less effective, which could reduce trust within our community and damage our brand and reputation, and could materially and adversely affect our business, results of operations, and financial condition.

**We may not be able to compete successfully against existing or future competitors, which could harm our business, results of operations and financial condition.** 

We will compete to attract tenants and customers who use our platform. Our competitors may have greater brand recognition or more direct sales personnel than we have and may generate more web traffic than we do, which may provide them with competitive advantages. To compete successfully, we must continue to invest resources in developing our platform and proving the effectiveness and relevance of our services. Pressure from competitors seeking to acquire a greater share of our tenant and customer market share could adversely affect our pricing and margins, lower our revenue and increase our research and development and marketing expenses. If we are unable to compete successfully against our existing or future competitors, our business, results of operations or financial condition could be adversely affected.

***The US residential and commercial real estate industry is seasonal and cyclical, and we are adversely affected by industry downturns.***

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Our success depends largely on the health of the US residential and commercial real estate industry, which is seasonal, cyclical and affected by changes in general economic conditions beyond our control. Any of the following macroeconomic factors could adversely affect demand for residential and commercial real estate, resulting in falling property prices and will ultimately harm our business:

● increased interest rates;

● increased unemployment rates or stagnant or declining wages;

● slow economic growth or recessionary conditions;

● weak credit markets;

● low consumer confidence in the economy or the U.S. residential real estate industry;

● adverse changes in local or regional economic conditions in the markets that we serve;

● fluctuations in local and regional home inventory levels;

● constraints on the availability of mortgage financing, enhanced mortgage underwriting standards, or increased down payment requirements;

● federal and state legislative, tax or regulatory changes that would adversely affect the U.S. residential real estate industry, including potential reform relating to Fannie Mae, Freddie Mac and other government sponsored entities that provide liquidity to the mortgage market, and limitations on the deductions of certain mortgage interest expenses;

● increases in the exchange rate for the U.S. dollar compared to foreign currencies, causing U.S. real estate to be more expensive for foreign purchasers;

● foreign regulatory changes or capital controls that would make it more difficult for foreign purchasers to withdraw capital from their home countries or purchase and hold U.S. real estate;

● strength of financial institutions;

● high levels of foreclosure activity in particular markets;

● a decrease in home ownership rates;

● political uncertainty relating to the new presidential administration; or

● acts of nature, such as hurricanes, earthquakes, and other natural disasters, as well as adverse environmental and climate changes that disrupt the local or regional real estate markets we serve.

**Competition in the markets where the Company may own rental properties may adversely affect the Company's results of operations.**

The rental property industry is highly competitive. Any rental properties we are able to acquire will compete for tenants in its immediate vicinity. The rental properties will also compete with alternative lodging services, such as HomeAway and Airbnb, which operate websites that market available furnished, privately-owned residential properties. An increase in the number of competitive hotels, vacation ownership resorts and alternative lodging arrangements in a particular area could have a material adverse effect on the occupancy and ADR (Average Daily Rate) of the Company's rental properties in that area.

**Risks Related to Environmental, Social, and Governance Issues**

**Climate change, related legislative and regulatory responses to climate change, and the transition to a lower carbon economy may adversely affect our business.**

There is increasing concern that a gradual rise in global average temperatures due to increased concentration of carbon dioxide and other greenhouse gases in the atmosphere will cause significant changes in weather patterns around the globe, an increase in the frequency, severity, and duration of extreme weather conditions and natural disasters, and water scarcity and poor water quality. These events could also compound adverse economic conditions. To the extent that significant changes in the climate occur in areas where our properties are located, we may experience extreme weather and/or changes in precipitation and temperature, all of which may result in physical damage to, or a decrease in demand for, properties located in these areas or affected by these conditions and our financial condition or results of operations could be adversely affected. In addition, changes in federal, state, and local legislation and regulation based on concerns about climate change, including regulations aimed at limiting greenhouse gas emissions and the implementation of "green" building codes, could result in increased capital expenditures on our properties (for example, to improve their energy efficiency and/or resistance to inclement weather) without a corresponding increase in revenue, resulting in a decreased desirability of owning investment properties. Any assessment of the potential impact of future climate change legislation, regulations, or industry standards, as well as any international treaties and accords, is uncertain given the wide scope of potential regulatory change.

**We are subject to risks from natural disasters such as earthquakes and severe weather (the frequency and severity of which may be impacted by climate change), which may include more frequent or severe storms, extreme temperatures and ambient temperature increases, hurricanes, flooding, rising sea levels, shortages of water, droughts and wildfires, any of which could have a material adverse effect on our business, results of operations, and financial condition.**

Natural disasters, severe weather such as earthquakes, tornadoes, wind, or floods, and wildfires may result in significant damage to our customers' properties. The extent of casualty losses and loss of income in connection with such events is a function of the severity of the event and the total amount of exposure in the affected area. Additional consequences of severe weather could include increased insurance premiums and deductibles or a decrease in the availability of coverage.

**Environmentally hazardous conditions could potentially adversely affect us.**

Under various federal, state, and local environmental laws, a current or previous owner or operator of real property may be liable for the cost of removing or remediating hazardous or toxic substances on such property. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have been responsible for the contamination, each person covered by applicable environmental laws may be held responsible for all of the clean-up costs incurred. In addition, third parties may sue the owner or operator of a site for damages based on personal injury, natural resources, or property damage or other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence of hazardous or toxic substances on one of our properties, or the failure to properly remediate a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the contamination or otherwise adversely affect our ability to sell or lease the property or borrow using the property as collateral. Environmental laws also may impose restrictions on the manner in which property may be used or businesses may be operated. A property owner who violates environmental laws may be subject to sanctions which may be enforced by governmental agencies or, in certain circumstances, private parties. In connection with our ownership of properties, we could be exposed to such costs. The cost of defending against environmental claims, of compliance with environmental regulatory requirements, or of remediating any contaminated property could materially and adversely affect us.

**We are subject to increasing scrutiny from investors and others regarding our environmental, social, governance, or sustainability, responsibilities, which could result in additional costs or risks and adversely impact our reputation, associate retention, and ability to raise capital from such investors.**

Investor advocacy groups, certain institutional investors, investment funds, other market participants, and stakeholders have focused increasingly on the Environmental, Social and Governance ("ESG" or "sustainability") practices of companies, including those associated with climate change. These parties have placed increased importance on the implications of the social cost of their investments. If our ESG practices do not meet investor or other industry stakeholder expectations and standards, which continue to evolve, our reputation and associate retention may be negatively impacted based on an assessment of our ESG practices. Any sustainability disclosures we make may include our policies and practices on a variety of social and ethical matters, including corporate governance, environmental compliance, associate health and safety practices, human capital management, product quality, supply chain management, and workforce inclusion and diversity. It is possible that stakeholders may not be satisfied with our ESG practices or the speed of their adoption. We could also incur additional costs and require additional resources to monitor, report, and comply with various ESG practices. In addition, investors may decide to refrain from investing in us as a result of their assessment of our approach to and consideration of the ESG factors.

**Risks Relating to Our Common Stock**

***The market price of our Common Stock may fluctuate significantly, which could negatively affect us and the holders of our Common Stock.***

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The trading price of our Common Stock may fluctuate significantly in response to a number of factors, many of which are beyond our control. For instance, if our financial results are below the expectations of securities analysts and investors, the market price of our Common Stock could decrease, perhaps significantly. Other factors that may affect the market price of our Common Stock include:

● volatility in the trading markets generally and in our particular market segment;

● limited trading of our Common Stock;

● actual or anticipated fluctuations in our results of operations;

● the financial projections we may provide to the public, any changes in those projections, or our failure to meet those projections;

● announcements regarding our business or the business of our customers or competitors;

● changes in accounting standards, policies, guidelines, interpretations, or principles;

● actual or anticipated developments in our business or our competitors' businesses or the competitive landscape generally;

● developments or disputes concerning our intellectual property or our offerings, or third-party proprietary rights;

● announced or completed acquisitions of businesses or technologies by us or our competitors;

● new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

● any major change in our board of directors ("Board") or management;

● sales of shares of our Common Stock by us or by our stockholders;

● lawsuits threatened or filed against us; and

● other events or factors, including those resulting from war, incidents of terrorism, or responses to these events.

Statements of, or changes in, opinions, ratings, or earnings estimates made by brokerage firms or industry analysts relating to the markets in which we operate or expect to operate could have an adverse effect on the market price of our Common Stock. In addition, the stock market as a whole, as well as our particular market segment, has from time to time experienced extreme price and volume fluctuations, which may affect the market price for the securities of many companies, and which often have appeared unrelated to the operating performance of such companies. Any of these factors could negatively affect our stockholders' ability to sell their shares of Common Stock at the time and price they desire.

***We may issue additional shares of Common Stock or preferred stock in the future, which could cause significant dilution to all stockholders.***

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We are authorized to issue up to 36,200,000,000 shares of Common Stock, and 10,000,000 shares of preferred stock, par value $0.000001 per share, of which 28,612,513,511 shares of Common Stock and 1,150,000 shares of Series B Preferred Stock, 0 shares of Series C Preferred Stock, 590 shares of Series D Preferred Stock, 0 shares of Series E Preferred Stock, 5,556 shares of Series F Preferred Stock, and 0 shares of Series Z Preferred Stock are currently issued and outstanding as of February 13, 2023. The number of shares of Common Stock issued and outstanding excludes the shares of Common Stock underlying the shares of Series B Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series Z Preferred Stock and shares underlying Common Stock purchase warrants. We expect to seek additional financing in order to provide working capital to our business or may issue additional shares of Common Stock as compensation. Our Board has the power to issue any or all of such authorized but unissued shares of our Common Stock at any price and, in respect of the preferred stock, at any price and with any attributes, our Board considers sufficient, without stockholder approval. The issuance of additional shares of Common Stock in the future will reduce the proportionate ownership and voting power of current stockholders and may negatively impact the market price of our Common Stock.

***We may issue additional securities with rights superior to those of our Common Stock, which could materially limit the ownership rights of our stockholders.***

We may offer additional debt or equity securities in private and/or public offerings in order to raise working capital or to refinance our debt. Our Board has the right to determine the terms and rights of any debt securities and preferred stock without obtaining the approval of our stockholders. It is possible that any debt securities or preferred stock that we sell would have terms and rights superior to those of our Common Stock and may be convertible into shares of our Common Stock. Any sale of securities could adversely affect the interests or voting rights of the holders of our Common Stock, result in substantial dilution to existing stockholders, or adversely affect the market price of our Common Stock.

***Quotation on the OTCM's Pink<sup>®</sup> Open Market may be volatile and sporadic.***

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Currently, our Common Stock is quoted on the OTCM's Pink Open Market. Trading in stock quoted on over-the-counter markets is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with our operations or business prospects. This volatility could depress or inflate the market price of our Common Stock for reasons unrelated to operating performance. Moreover, the OTCM is not a stock exchange, and trading of securities on this market is often more sporadic than the trading of securities listed on a national securities exchange, like The Nasdaq Stock Market, the New York Stock Exchange, or the NYSE American.

***We are not subject to the rules of a national securities exchange requiring the adoption of certain corporate governance measures and, as a result, our stockholders do not have the same protections.***

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We are not subject to the rules of a national securities exchange, such as the New York Stock Exchange, the NYSE-American, or The Nasdaq Stock Market. National securities exchanges generally require more rigorous measures relating to corporate governance that are designed to enhance the integrity of corporate management. The requirements of the OTCM's Pink Open Market afford our stockholders fewer corporate governance protections than those of a national securities exchange. Until we comply with such greater corporate governance measures, even though such compliance is not required by the OTCM for quotations of shares of our Common Stock on the OTCM's Pink Open Market, our stockholders will have fewer protections, such as those related to director independence, stockholder approval rights, and governance measures that are designed to provide oversight of a corporation's management by its board of directors.

***A decline in the price of our Common Stock could affect our ability to raise working capital, which could adversely impact our ability to continue our operations.***

A prolonged decline in the price of our Common Stock could result in a reduction in the liquidity of our Common Stock and a reduction in our ability to raise capital. We may attempt to acquire a significant portion of the funds we need in order to conduct our planned operations through the sale of equity securities; thus, a decline in the price of our Common Stock could be detrimental to our liquidity and our operations because the decline may adversely affect investors' desire to invest in our securities. If we are unable to raise the funds we require for all of our planned operations, we may be forced to reallocate funds from other planned uses and may suffer a significant negative effect on our business plan and operations, including our ability to develop new products or services and continue our current operations. As a result, our business may suffer, and we may be forced to reduce or discontinue operations. We also might not be able to meet our financial obligations if we cannot raise enough funds through the sale of our Common Stock and we may be forced to reduce or discontinue operations.

***Because we do not intend to pay any cash dividends on our shares of Common Stock in the near future, our stockholders will not be able to receive a return on their shares unless and until they sell them.***

We intend to retain any future earnings to finance the development and expansion of our business. We do not anticipate paying any cash dividends on our Common Stock in the near future. The declaration, payment, and amount of any future dividends will be made at the discretion of our Board, and will depend upon, among other things, the results of operations, cash flows, and financial condition, operating and capital requirements, and other factors as our Board considers relevant. There is no assurance that future dividends will be paid, and, if dividends are paid, there is no assurance with respect to the amount of any such dividend. Unless our Board determines to pay dividends, our stockholders will be required to look to appreciation of our Common Stock to realize a gain on their investment. There can be no assurance that this appreciation will occur.

***If we are unable to establish appropriate internal financial reporting controls and procedures, it could cause us to fail to meet our reporting obligations, result in the restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny and sanction, cause investors to lose confidence in our reported financial information, and have a negative effect on the market price for shares of our Common Stock.***

Effective internal controls are necessary for us to provide reliable financial reports and effectively to prevent fraud. We maintain a system of internal controls over financial reporting, which is defined as a process designed by, or under the supervision of, our principal executive officer and principal financial officer, or persons performing similar functions, and effected by our board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ("GAAP").

Once this Registration Statement becomes effective, and we become a reporting company pursuant to the Exchange Act, we have significant requirements for enhanced financial reporting and internal controls. We are required to document and test our internal control procedures in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, which requires annual management assessments of the effectiveness of our internal controls over financial reporting. The process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and economic and regulatory environments, and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company.

We cannot assure you that we will, in the future, identify areas requiring improvement in our internal control over financial reporting. We cannot assure you that the measures we will take to remediate any areas in need of improvement will be successful or that we will implement and maintain adequate controls over our financial processes and reporting in the future as we continue to grow. If we are unable to establish appropriate internal financial reporting controls and procedures, it could cause us to fail to meet our reporting obligations, result in the restatement of our financial statements, harm our operating results, subject us to regulatory scrutiny and sanction, cause investors to lose confidence in our reported financial information, and have a negative effect on the market price for shares of our Common Stock.

***We lack sufficient internal controls over financial reporting and implementing acceptable internal controls will be difficult with a limited number of management personnel, which will make it difficult to ensure that information required to be disclosed in our future reports filed and submitted under the Exchange Act is recorded, processed, summarized, and reported as and when required.***

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As of the date of this Registration Statement, we currently lack certain internal controls over our financial reporting. We have a limited number of management personnel, which may make it difficult to implement such controls at this time. The lack of such controls makes it difficult to ensure that information required to be disclosed in our reports to be filed and submitted under the Exchange Act once this Registration Statement is effective is recorded, processed, summarized, and reported as and when required.

The reasons we believe that our disclosure controls and procedures are not fully effective are because:

● there is a lack of segregation of duties necessary for a good system of internal control due, to insufficient accounting staff due to our size;

● the staffing of our accounting department is weak due to the lack of qualifications and training, and the lack of formal review process;

● our control environment is weak due to the lack of an effective risk assessment process, the lack of internal audit function, and insufficient documentation and communication of the accounting policies; and

● failure in the operating effectiveness over controls related to recording revenue.

We cannot assure you that we will be able to develop and implement the necessary internal controls over financial reporting. The absence of such internal controls may inhibit investors from purchasing our shares and may make it more difficult for us to raise debt or equity financing.

***Our Chief Executive Officer controls more than half of our voting securities, he can exert significant control over our business and affairs and have actual or potential interests that may depart from those of investors.***

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Our Chief Executive Officer, Oscar Brito, owns a significant percentage of our outstanding voting stock. Although he beneficially owns approximately 95% of our outstanding voting stock as of February 14 2023, through his beneficial ownership of the issued and outstanding shares of Series B Preferred, and Series E Preferred Stock, he controls in excess of 90% of our total voting power. Mr. Brito's holdings may increase further in the future upon vesting or other maturation of exercise rights under any of the options or warrants he may be granted in the future, or if he otherwise acquires additional shares of our capital stock. His interests may differ from the interests of our other stockholders. As a result, in addition to his board seat and offices, Mr. Brito will have significant influence and control over all corporate actions requiring stockholder approval, irrespective of how our other stockholders may vote, including the following actions:

● to elect or defeat the election of our directors;

● to amend or prevent an amendment to our Certificate of Incorporation or Bylaws;

● to effect or prevent a merger, sale of assets, or other corporate transaction; and

● to control the outcome of any other matter submitted to our stockholders for a vote.

This concentration of ownership by itself may have the effect of impeding a merger, consolidation, takeover, or other business consolidation, or discouraging a potential acquirer from making a tender offer for our Common Stock, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

***Our Common Stock is categorized as "penny stock," which may make it more difficult for investors to sell their shares of Common Stock due to suitability requirements.***

Our Common Stock is categorized as "penny stock." The Commission adopted Rule 15g-9, which generally defines "penny stock" to be any equity security that has a market price (as defined) of less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. The price of our Common Stock is significantly less than $5.00 per share and we did not qualify for any of the other exceptions; therefore, our Common Stock is considered "penny stock." This designation imposes additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors." The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly with his or her spouse. The penny stock rules require a broker-dealer buying our securities, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the Commission that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that, prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability and/or willingness of broker-dealers to trade our securities, either directly or on behalf of their clients, may discourage potential investor's from purchasing our securities, or may adversely affect the ability of our stockholders to sell their shares.

***The Financial Industry Regulatory Authority, Inc. ("FINRA") has adopted sales practice requirements that may limit a stockholder's ability to buy and sell our Common Stock, which could depress the price of our Common Stock.***

In addition to the "penny stock" rules described above, FINRA has adopted rules that require that, in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives, and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. Thus, the FINRA requirements may make it more difficult for broker-dealers to recommend that their customers buy our Common Stock, which could limit your ability to buy and sell our Common Stock, have an adverse effect on the market for our shares, and thereby depress our price per share of Common Stock.

***The elimination of monetary liability against our directors, officers, and employees under Delaware law and the existence of indemnification rights for our obligations to our directors, officers, and employees may result in substantial expenditures by us and may discourage lawsuits against our directors, officers, and employees.***

Our Certificate of Incorporation contains a provision limiting the personal liability of our directors and officers to us and our stockholders for damages for the breach of a fiduciary duty as a director or officer except with respect to (i) acts or omissions that involve intentional misconduct, fraud, or a knowing violation of the law or (ii) the payment of dividends in violation of Delaware law. We also previously entered into employment agreements with each of our officers pursuant to which we have contractual indemnification obligations. The foregoing indemnification obligations could result in us incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and the resulting costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our stockholders against our directors and officers even though such actions, if successful, might otherwise benefit us and our stockholders.

**Investors may never receive cash distributions, which could result in an investor receiving little or no return on his or her investment.**

Distributions are payable at the sole discretion of our board of directors. We do not know the amount of cash that we will generate, if any, once we have more productive operations. Cash distributions are not assured, and we may never be in a position to make distributions.

**Our shares may be thinly traded with wide share price fluctuations, low share prices, and minimal liquidity.**

The per share price of our common stock may be volatile with wide fluctuations in response to several factors, including: potential investors' anticipated feeling regarding our results of operations; increased competition; our ability or inability to generate future revenues; and market perception regarding the rental property industry in general and our rental properties specifically.

In addition, our share price may be affected by factors that are unrelated or disproportionate to our operating performance. Our share price might be affected by general economic, political, and market conditions, such as recessions, interest rates, or international currency fluctuations. Stocks traded on the over-the-counter market, like our common stock, are usually thinly traded, highly volatile and not followed by analysts. These factors may have a material effect on our share price.

**We could potentially need to sell additional authorized shares in the future. This will result in a dilution to our existing shareholders and a corresponding reduction in their percentage ownership in the Company.**

We may seek additional funds through the sale of our common stock. This will result in a dilution effect to our shareholders whereby their percentage ownership interest in the Company is reduced. The magnitude of this dilution effect will be determined by the number of shares we will have to issue in the future to obtain the funds required. The sale of additional stock to new shareholders will reduce the ownership position of the current shareholders. The price of each share outstanding common share may decrease in the event we sell additional shares.

**We may issue shares of preferred stock in the future that may adversely impact your rights as holders of our common stock.**

Our Certificate of Incorporation authorize our Board of Directors to determine the relative rights and preferences of preferred shares without further stockholder approval. As a result, our Board of Directors could authorize the issuance of a series of preferred stock that would grant to holders preferred rights to our assets upon liquidation, the right to receive dividends before dividends are declared to holders of our common stock, and the right to the redemption of such preferred shares, together with a premium, prior to the redemption of the common stock. To the extent that we do issue additional shares of preferred stock, your rights as holders of common stock could be impaired thereby, including, without limitation, dilution of your ownership interests in us. In addition, shares of preferred stock could be issued with terms calculated to delay or prevent a change in control or make removal of management more difficult, which may not be in your interest as a holder of common stock.

**Item 2. Financial Information.**

***Management's Discussion and Analysis of Financial Condition and Results of Operations***

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes thereto included elsewhere in this Registration Statement. In addition to historical financial information, the following discussion and analysis contains forward-looking statements based upon current expectations that involve risks, uncertainties, and assumptions, such as our plans, objectives, expectations, and intentions. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Forward-looking statements are based upon estimates, forecasts, and assumptions that are inherently subject to significant business, economic, and competitive uncertainties, and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by us, or on our behalf. We disclose any obligation to update forward-looking statements. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those discussed under "Forward-Looking Statements," "Item 1. Business," and "Item 1A. Risk Factors" sections in this Registration Statement. We use words such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could," and similar expressions to identify forward-looking statements.*

***Company Information***

Metrospaces, Inc. (the "Company") was incorporated as Strata Capital Corporation on December 10, 2007, under the laws of the State of Delaware. The Company has historically been a luxury hotel and residential property developer. Led by an experienced team of real estate developers, the Company has made significant investments in new and existing real estate projects across the United States. Guided by an investment thesis of targeting high-yielding projects in economic development zones and high growth real estate markets. It has also supplemented its real estate development operations with information technology, blockchain and other technology ventures, while building its intellectual property portfolio.

On June 2017, the Company acquired Fifty One Percent (51%) of the ownership units of Etelix, a Miami-based telecommunications provider, in exchange for a $2 million promissory note. In June 2018, Etelix merged with other small data providers and formed IQSTELl, Inc. IQSTEL was later spun off in 2018 and 2019, and the Company divested its majority investments in IQSTEL, but still retains options to acquire 2.5 million shares.

The Company is now looking to merge its real estate investment strategy with its technology portfolio, developing the Company into a Property-Technology firm. The Company believes that new blockchain, IoT and AI solutions can be applied to the real estate industry in a fundamentally transformative way. It is now developing two new technology platforms facilitating rental transactions and the tokenization of real estate transactions.

**Operating Divisions**

*MetroHouse*

 

The Company is currently working on developing, enhancing and expanding a new proprietary co-living platform that will connect property owners and renters. The platform, called MetroHouse, will allow for third-party property owners to list rental units on a per-room basis, while also offering complete turn-key experiences for renters. Each unit will offer a standardized experience with standardized common areas and bedrooms, charged through a monthly membership fee between $1,000 and $1,800. Each unit will be fully furnished, and will also feature different entertainment and social experiences, such as rooftops and patios. Additionally, MetroHouse offers property owners the option to use curated designs and furnishing layouts for their units, access to vetted and verified prospective renters, and offer additional services to renters.

The platform will offer different types of homes and apartment units, ranging from single family homes to apartment units. The platform will enable property owners to efficiently rent unused rooms, while concurrently allowing renters to find living quarters without entering into long term leases. The MetroHouse platform will be free for renters, while property owners will be charged a service fee to use the platform. Based on comparable market services, property owners can expect to generate 15% to 25% higher income from their properties, while increasing the utilization of unsecured rooms.

The platform will focus on secondary cities, such as Philadelphia, Jacksonville, Houston and other cities with a growing millennial population and high vacancies for homes and bedrooms. Additionally, we expect to expand the platform to international tourist destinations, such as the Dominican Republic. A beta version of MetroHouse was launched in the fourth quarter of 2021, and we are partnering with our IT provider, Shokworks, to further refine and enhance the user experience.

*MetroCrowd*

In addition to MetroHouse, we are developing MetroCrowd, a platform that tokenizes real estate transactions, and allows for real estate developers to "crowdfund" new projects. The platform will use blockchain technology to create the first dedicated real estate cryptocurrency platform, which can be used to pay rent, and buy and sell real estate properties. This will open real estate markets to new retail and international investors, who can make real estate transactions without taking on currency risks. The payment platform will be backed by Cryptobucks, a leading payment service and gateway platform for cryptocurrency, which accepts most major cryptocurrencies, and is used by major organizations, such as the NFL.

MetroCrowd is still under development, and the Company has partnered with Cryptobucks and Shokworks to build out its key features. The Company does recognize significant regulatory and compliance hurdles it may face prior to MetroCrowd's launch, including establishing guidelines for new offerings. The Company is confident that MetroCrowd will be fully compliant, but does recognize that certain features may be modified or altogether abandoned. The Company is actively working with legal teams, broker dealers, and Know Your Customer (KYC) and Anti-Money Laundering (AML) agencies. A beta version of MetroCrowd is expected to be launched in the fourth quarter of 2022.

**Owned Real Estate Portfolio**

*Infinity View Villas* 

 

On March 23, 2021 the Company entered an agreement to acquire 3-bedroom villas in Infinity View Villas in Loma Linda, the Dominican Republic, which will be marketed to travelers as the tourism industry recovers from the COVID-19 pandemic. These villas will be wholly owned by the Company. Part of this agreement gives the Company the option to increase its investment and become a co-developer partner. The villas will be both rented through the MetroHouse platform, or sold to buyers on a fractional One-Twelfth (1/12) ownership plan to prospective buyers. This will allow fractional owners the right to rent out or live in for their own use during their exclusive period, and give them access to the vacation property market without the significant commitment of traditional properties.

Furthermore, the Company has additional rights to co-develop three additional villas, where the Company can make investments of up to One Hundred Twenty Thousand Dollars ($120,000) in the development of the properties, in exchange for Sixty Percent (60%) of profits from the sale of the properties. Construction of these three villas commenced in the second quarter of 2022, and are projected to be completed by the end of the fourth quarter of 2022.

*Fishtown, Pennsylvania*

 

MetroHouse owns a 50,000 sqft, fully entitled residential site in Fishtown, Pennsylvania. The site will eventually be developed into a 3-story townhouses, intended for co-living. The townhouses will be managed and operated by MetroHouse. The Company expects to begin development and construction of the townhouses in the third quarter of 2023.

*Houston*

 

On August 9, 2021, the Company acquired a non controlling 51% interest in a 60,295 square foot office building located in Houston for $419,000. The Company will make additional capital investments into the building, and offer both traditional office leases and co-working spaces. Historically, the building has generated Net Operating Income of approximately $250,000 per year.

*Indianapolis*

 

On November 21, 2021, the Company acquired six multi-family homes in Indianapolis. Each home consists of two fully furnished units, each having 2 – 3 bedrooms and 1 – 3 bathrooms, with high end finishes and appliances. As of February 14<sup>th</sup>, 2023, Company owned properties in Indianapolis include:

**List of Owned Properties in Indianapolis**

---

| | | | |
|:---|:---|:---|:---|
| **Unit** | **Bedrooms** | **Bathrooms** | **Square Footage** |
| **1221 Union Street** | 3 | 2 | 1281 |
| **1223 Union Street** | 3 | 2 | 1281 |
| **1322 Union Street** | 2 | 1.5 | 1181 |
| **1324 Union Street** | 2 | 1.5 | 1181 |
| **1326 Union Street** | 3 | 3 | 1583 |
| **1328 Union Street** | 3 | 3 | 1583 |
| **1406 Union Street** | 3 | 3 | 1347 |
| **1408 Union Street** | 3 | 3 | 1347 |
| **1709 Union Street** | 3 | 2 | 1188 |
| **1711 Union Street** | 2 | 2 | 1188 |
| **1730 Union Street** | 3 | 1.5 | 1332 |
| **1732 Union Street** | 3 | 1 | 1228 |

---

These units are in varying stages of renovation, with 6 units currently being used for short and long term rentals. All houses will eventually be fully incorporated in the MetroHouse platform for co-living arrangements.

***Offices***

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The Company rents office spaces located at 6 St. Johns Lane, New York, New York, a 650 square foot facility hosting the Company's senior executive team and administrative staff. The Company pays approximately $750.00 per month in rent for its offices.

**Results of Operations for the Three Months Ended September 30, 2022** 

***Revenues***

 ****

We had revenues of $51,432 and $47,372 for the three months ended September 30, 2022 and 2021, respectively. This $4,060 (8.5%) increase in revenues is partially attributed to improved marketing efforts by the Company, and recovering demand in the real estate rental market.

We expect an increase in revenue over the next 12 months as our business model is implemented and expanded and we begin generating revenues through our rental properties. Furthermore, we intend to further expand our real estate portfolio and launch our MetroHouse platform, which we expect will contribute to our future income growth.

***Gross Profit (Loss)***

 ****

We do not typically incur any cost of revenues, and thus we reported a gross profit of $51,432 and $47,372 for the three months ended September 30, 2022 and 2021, respectively.

***Operating Expenses***

Operating expenses for the three months ended September 30, 2022, were $1,332,204, as compared to $740,392 for the three months ended September 30, 2021, an increase of $591,812. The increase in operating expenses over the prior period can be attributed to significant increases in professional fees, consulting fees, advertising expenses, general and administration expenses, and payroll and benefits costs.

We expect that operating expenses will increase over the next 12 months as our long-term growth strategy will require significant increases in personnel and facilities along with increased research and development expenses to ensure that products nearing commercialization are brought to market as quickly and as effectively. We cannot provide any assurances that our strategy will be effective.

***Operating Income/(Loss)***

 ****

During the three months ended September 30, 2022 and 2021, our operating loss was $1,280,772 and $693,020, respectively. The increase in our operating loss of $587,752 was due to marginal revenue increases offset by significant increases in operating expenses and interest expenses.

We expect that operating expenses will continue to increase over the next twelve months, as our long-term growth strategy will require significant increases in personnel, professional services and research and development expenses to ensure that our planned growth strategy can be realized and brought to market. We cannot provide any assurances that our strategy will be effective.

***Interest Expenses***

 ****

During the three months ended September 30, 2022 and 2021, interest expense was $567,726 and $696,338, respectively. The $128,612 decrease in interest expense was due to the conversion of certain promissory notes by the noteholders into the Company's common and preferred stock.

Furthermore, during the three months ended September 30, 2022 and 2021, interest income was $0 and $15,201, respectively.

***Change in Fair Value of Derivative Liabilities***

 ****

During the three months ended September 30, 2022 and 2021, the change in the fair value of derivative liabilities was a loss of $1,061,238 and a gain of $467,035, respectively, resulting from conversion of debt into common stock, subsequent sale and write down of the derivative expense.

***Gain on Sale of Marketable Securities***

 ****

During the three months ended September 30, 2022 and 2021, the loss on the sale of marketable securities was $364,419 and $164,183, respectively.

***Change in Value of Marketable Securities***

 ****

During the three months ended September 30, 2022 and 2021, the change in value of marketable securities was $0 and $0, respectively.

***Other Expenses***

Total other expenses for the three months ended September 30, 2022 was $1,993,383, as compared to $378,285 for the three months ended September 30, 2021, a $1,615,098 increase. This increase in other expenses is attributed to a $1,061,268 loss from the change in the fair value of the Company's derivatives, and $567,726 in interest expenses.

***Total Net Profit (Loss)***

Total net loss for the three months ended September 30, 2022 was $3,274,155, as compared to a total net loss of $1,071,305 for the three months ended September 30, 2021, a $2,202,850 increase in total net loss. The increase in total net loss for the period ended September 30, 2022 was as a result of increased operating expenses and losses on the change in the fair value of the Companies derivatives. Derivative liabilities are associated with loans that are convertible and have variable pricing on the equivalent shares of Common Stock. At the end of each period, these derivative liabilities are valued, and the net change is recorded as a gain or loss in other expense and income, further contributing to our net loss.

We do not expect to realize net profit in the near term as anticipated operational expenses are expected to increase as a result of increased research and development expenses, consulting fees, payroll expenses, and administrative costs as staffing increases. Despite management's focus on ensuring operating efficiencies, we expect to continue to operate at a loss through fiscal 2022 and 2023.

**Results of Operations for the Nine Months Ended September 30, 2022** 

***Revenues***

 ****

We had revenues of $223,977 and $47,372 for the three months ended September 30, 2022 and 2021, respectively. This $176,605 (373%) increase in revenues is attributed to the addition of new rental properties to the Company's product offerings, further augmented by the improved marketing efforts by the Company and recovering demand in the real estate rental market.

We expect an increase in revenue over the next 12 months as our business model is implemented and expanded and we begin generating revenues through our rental properties. Furthermore, we intend to further expand our real estate portfolio and launch our MetroHouse platform, which we expect will contribute to our future income growth.

***Gross Profit (Loss)***

 ****

We do not typically incur any cost of revenues, and thus we reported a gross profit of $223,977 and $47,372 for the nine months ended September 30, 2022 and 2021, respectively.

***Operating Expenses***

Operating expenses for the nine months ended September 30, 2022, was $2,236,336, as compared to $928,148 for the nine months ended September 30, 2021, an increase of $1,308,188. The increase in operating expenses over the prior period can be attributed to significant increases in professional fees, consulting fees, advertising expenses, general and administration expenses, and payroll and benefits costs.

We expect that operating expenses will increase over the next 12 months as our long-term growth strategy will require significant increases in personnel and facilities along with increased research and development expenses to ensure that products nearing commercialization are brought to market as quickly and as effectively. We cannot provide any assurances that our strategy will be effective.

***Operating Income/(Loss)***

 ****

During the nine months ended September 30, 2022 and 2021, our operating loss was $2,012,359 and $880,776, respectively. The increase in our operating loss of $1,131,583 was due to marginal revenue increases offset by significant increases in operating expenses and interest expenses.

We expect that operating expenses will continue to increase over the next twelve months, as our long-term growth strategy will require significant increases in personnel, professional services and research and development expenses to ensure that our planned growth strategy can be realized and brought to market. We cannot provide any assurances that our strategy will be effective.

***Interest Expenses***

 ****

During the nine months ended September 30, 2022 and 2021, interest expense was $906,772 and $891,233, respectively. The $15,539 increase in interest expense was due additional debt incurred to purchase our real estate portfolio.

Furthermore, during the nine months ended September 30, 2022 and 2021, interest income was $0 and $34,055, respectively.

***Change in Fair Value of Derivative Liabilities***

 ****

During the nine months ended September 30, 2022 and 2021, the change in the fair value of derivative liabilities was a loss of $1,081,370 and a gain of $10,187,049, respectively, a change of $11,268,419, resulting from conversion of debt into common stock, subsequent sale and write down of the derivative expense.

***Gain on Sale of Marketable Securities***

 ****

During the nine months ended September 30, 2022 and 2021, the gain on the sale of marketable securities was $196,932 and $0, respectively.

***Change in Value of Marketable Securities***

 ****

During the nine months ended September 30, 2022 and 2021, the change in value of marketable securities was a loss of $186,990 and a gain of $589,302, respectively. The decrease of $776,292 was due to a drop in the market price of the marketable securities held by the Company.

***Other Expenses***

Total other expenses for the nine months ended September 30, 2022 was $2,372,064, as compared to an income of $9,919,173 for the nine months ended September 30, 2021, a $12,291,237 increase in other expenses. This increase in other expenses is attributed to a $11,268,419 loss from the change in fair value of the Company's derivatives and the $776,292 change in the Change in value of marketable securities.

***Total Net Profit (Loss)***

Total net loss for the nine months ended September 30, 2022 was $4,384,423, as compared to a total net profit of $9,038,397 for the nine months ended September 30, 2021, a $13,422,820 decrease in net profit. The decrease in total net profit for the period ended September 30, 2022 was as a result of increased operating expenses and losses on the change in the fair value of the Companies derivatives, including one-time gains to the Company's derivatives recorded in fiscal year 2021. Derivative liabilities are associated with loans that are convertible and have variable pricing on the equivalent shares of Common Stock. At the end of each period, these derivative liabilities are valued, and the net change is recorded as a gain or loss in other expense and income, further contributing to our net loss.

We do not expect to realize net profit in the near term as anticipated operational expenses are expected to increase as a result of increased research and development expenses, consulting fees, payroll expenses, and administrative costs as staffing increases. Despite management's focus on ensuring operating efficiencies, we expect to continue to operate at a loss through fiscal 2022 and 2023.

***Liquidity and Capital Resources***

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<u>Going Concern</u>

We have incurred operating losses since inception and have negative cash flow from operations. As of September 30, 2022, we had a stockholders' deficit of $7,028,884, a working capital deficit of $13,006,946, an accumulated deficit of $24,012,437 and incurred a net loss of $4,384,423 for the nine months ended September 30, 2022. Additionally, we utilized $4,942,113 in cash during the nine months ended September 30, 2022, while we received $5,467,055 in cash from financing activities. As a result, our continuation as a going concern is dependent on our ability to obtain additional financing until we can generate sufficient cash flow from operations to meet our obligations. We intend to continue to seek additional debt or equity financing to continue our operations, but there can be no assurance that such financing will be available on terms acceptable to us, if at all.

Our consolidated financial statements have been prepared on a going concern basis, which implies we may not continue to meet our obligations and continue our operations for the next fiscal year. The continuation of our Company as a going concern is dependent upon our ability to obtain necessary debt or equity financing to continue operations until we begin generating positive cash flow.

As of September 30, 2022, we had a cash position of $79. We estimate our operating expenses for the near- and mid-term may continue to exceed the revenues that we may generate, and we may need to raise capital through either debt or equity offerings to continue operations. We are in the early stages of our business. We are required to fund growth from financing activities, and we intend to rely on a combination of equity and debt financings. Due to market conditions and the early stage of our operations, there is considerable risk that we will not be able to raise such financings at all, or on terms that are not overly dilutive to our existing stockholders. We can offer no assurance that we will be able to raise such funds. If we are unable to raise the funds we require for all of our planned operations, we may be forced to reallocate funds from other planned uses and may suffer a significant negative effect on our business plan and operations, including our ability to develop new products and continue our current operations. As a result, our business may suffer, and we may be forced to reduce or discontinue operations.

There is no assurance that we will ever be profitable or that debt or equity financing will be available to us in the amounts, on terms, and at times deemed acceptable to us, if at all. The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business, as planned, and as a result may be required to scale back or cease operations for our business, the result of which would be that our stockholders would lose some or all of their investment. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern.

<u>Cash Flow – Operating Activities</u>

For the nine months ended September 30, 2022, our cash used in operating activities amounted to an outflow of $567,696, compared to an inflow of $284,138 for the nine months ended September 30, 2021. The increase in cash used in our operating activities is due to changes in our prepaid expenses, accounts receivable, notes receivable, and accrued interest on notes payable.

<u>Cash Flow – Financing Activities</u>

For the nine months ended September 30, 2022, our cash provided by financing activities amounted to $5,467,055, which includes $4,934,969 in proceeds received from the issuances of notes payable, $504,619 in proceeds received from related party loans and $27,467 in proceeds received from the sale of convertible notes payables.

For the nine months ended September 30, 2021, our cash provided by financing activities amounted to $4,109,682, which includes $3,832,965 in proceeds received from the issuances of notes payable, $198,965 in proceeds received from related party loans and $158,752 in proceeds received from the sale of convertible notes payables.

<u>Cash Flow – Investing Activities</u>

Net cash used in investing activities in the nine months ended September 30, 2022 was $4,942,113, compared to $3,986,914 in net cash used in investing activities for the nine months ended March 31, 2021. This increase in cash used in investing activities is due to new property acquisitions and capital improvement on existing properties in our real estate portfolio.

***Accounts Receivable and Allowance for Doubtful Account Receivable***

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Accounts receivable are recorded at net realizable value. We determine provisions for uncollectible accounts, sales returns, and claims based upon factors including the credit risk and activity of specific distributors and resellers, historical trends, and other information. If we become aware of a specific distributor's or reseller's inability to meet its financial obligations, bad debt charges are recorded based on an overall assessment of past due accounts receivable outstanding. In the opinion of management, a provision was deemed necessary for uncollectible accounts.

***Property, Plant and Equipment***

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Our property, plant and equipment consists almost entirely of fully finished or partially finished single family homes, duplexes and garden apartment buildings in cities including, but not limited to, Indianapolis, Philadelphia and Houston. We periodically evaluate and adjust the fair value of these properties. As of September 30, 2022, the book value of our owned properties was $5,512,931, compared to approximately $638,302 at September 30, 2021. We expect the balance of our property, plant and equipment to increase as we implement our future growth strategies.

***Stock-Based Compensation***

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FASB's ASC Topic 718, Stock Compensation (formerly, FASB Statement 123R), prescribes accounting and reporting standards for all stock-based payment transactions in which employee and non-employee services are acquired. We measure the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Fair value for restricted stock awards is valued using the closing price of our Common Stock on the date of grant. For the nine months ended September 30, 2022and 2021, we recognized stock-based compensation expense of approximately $1,277,297 and $210,000, respectively.

***Off Balance Sheet Arrangements***

As of March 31, 2022 and on March 31, 2021, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to stockholders.

***Critical Accounting Policies***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions and conditions. We continue to monitor significant estimates made during the preparation of our financial statements. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

**Results of Operations for the Year ended December 31, 2021 Compared to the Year Ended December 31, 2020.**

***Revenues***

 ****

We had revenues of $0 and $0for the twelve months ended December 31, 2021 and 2020, respectively.

We expect an increase in revenue over the next 12 months as our business model is implemented and expanded and we begin generating revenues through our rental properties. Furthermore, we intend to further expand our real estate portfolio and launch our MetroHouse platform, which we expect will contribute to our future income growth.

***Gross Profit***

 ****

Gross loss for the twelve months ended December 31, 2021 and 2020 was $0.

***Operating Expenses***

Operating expenses for the twelve months ended December 31, 2021, were $1,912,351, as compared to $283,415 for the twelve months ended December 31, 2020, an increase of $1,628,936. The increase in operating expenses over the prior period can be attributed to significant increases in professional fees, consulting fees, advertising expenses, general and administration expenses, and payroll and benefits costs.

We expect that operating expenses will increase over the next 12 months as our long-term growth strategy will require significant increases in personnel and facilities along with increased research and development expenses to ensure that products nearing commercialization are brought to market as quickly and as effectively. We cannot provide any assurances that our strategy will be effective.

***Operating Loss***

 ****

Operating loss for the twelve months ended December 31, 2021 was $1,912,351, as compared to a loss of $283,415 for the twelve months ended December 31, 2020. The increase in our operating loss was attributable to increased operating and interest expenses, and the cost of acquisitions of certain related assets.

***Operating Loss***

 ****

During the twelve months ended December 31, 2021 and 2020, operating loss was $1,912,351 and $283,415, respectively. The increase in income was due to marginal revenue increases offset by significant increases in operating expenses and interest expenses.

We expect that operating expenses will continue to increase over the next twelve months, as our long-term growth strategy will require significant increases in personnel, professional services and research and development expenses to ensure that our planned growth strategy can be realized and brought to market. We cannot provide any assurances that our strategy will be effective.

***Interest Expenses***

 ****

During the twelve months ended December 31, 2020 and 2021, interest expense was $515,758 and $540,111, respectively. The $24,353s decrease in interest expense was due to the conversion of convertible promissory notes during 2021.

Furthermore, during the twelve months ended December 31, 2021 and 2020, interest income was $53,400 and $0, respectively. The $53,400 increase in interest income was the result of interest accrued on notes receivable outstanding during the year ended December 31, 2021.

***Other Income / (Expense)***

Other income for the twelve months ended December 31, 2021 was $8,929,232, as compared to $2,127,756 for the twelve months ended December 31, 2020, a $6,801,476 increase. This increase is attributable to the gain on the change in fair value of our derivative of $9,151,648.

***Change in Fair Value of Derivative Liabilities***

 ****

During the twelve months ended December 31, 2021 and 2021, the change in the fair value of derivative liabilities was $9,151,648 and $0, respectively, resulting from conversion of debt into common stock, subsequent sale and write down of the derivative expense.

***Gain on Extinguishment of Debt***

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During the twelve months ended December 31, 2021 and 2020, the gain on extinguishment of debt was $0 and $2,145,043 respectively.

***Change in Value of Marketable Securities***

 ****

During the twelve months ended December 31, 2021 and 2020, the change in value of marketable securities was $287,236 and $0, respectively.

***Total Net Profit***

Total net profit for the twelve months ended December 31, 2021 was $7,016,881, as compared to a total net income of $1,844,341 for the twelve months ended December 31, 2020, a $5,172,540 increase in total net income. The increase in total net loss for the fiscal year ended December 31, 2021 was as a result of the gain recognized on the change in the fair value of derivative. Derivative liabilities are associated with loans that are convertible and have variable pricing on the equivalent shares of Common Stock. At the end of each period, these derivative liabilities are valued, and the net change in 2021 and 2020 resulted in a gain in other expense and income, thus contributing to our net gain.

We do not expect to realize net profit in the near term as anticipated operational expenses are expected to increase as a result of increased research and development expenses, consulting fees, payroll expenses, and administrative costs as staffing increases. Despite management's focus on ensuring operating efficiencies, we expect to continue to operate at a loss through fiscal 2022.

***Liquidity and Capital Resources***

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<u>Going Concern</u>

We have incurred operating losses since inception and have negative cash flow from operations. As of December 31, 2021, we had a stockholders' deficit of $4,586,589, a working capital deficit of $6,359,249, an accumulated deficit of $19,628,014 and recognized a net profit of $7,016,881 for the twelve months ended December 31, 2021. Additionally, we utilized $1,815,251 in cash during the twelve months ended December 31, 2021, while we received $2,968,124 in cash from financing activities. As a result, our continuation as a going concern is dependent on our ability to obtain additional financing until we can generate sufficient cash flow from operations to meet our obligations. We intend to continue to seek additional debt or equity financing to continue our operations, but there can be no assurance that such financing will be available on terms acceptable to us, if at all.

Our consolidated financial statements have been prepared on a going concern basis, which implies we may not continue to meet our obligations and continue our operations for the next fiscal year. The continuation of our Company as a going concern is dependent upon our ability to obtain necessary debt or equity financing to continue operations until we begin generating positive cash flow.

As of December 31, 2021, we had a cash position of $42,833. We estimate our operating expenses for the near- and mid-term may continue to exceed the revenues that we may generate, and we may need to raise capital through either debt or equity offerings to continue operations. We are in the early stages of our business. We are required to fund growth from financing activities, and we intend to rely on a combination of equity and debt financings. Due to market conditions and the early stage of our operations, there is considerable risk that we will not be able to raise such financings at all, or on terms that are not overly dilutive to our existing stockholders. We can offer no assurance that we will be able to raise such funds. If we are unable to raise the funds we require for all of our planned operations, we may be forced to reallocate funds from other planned uses and may suffer a significant negative effect on our business plan and operations, including our ability to develop new products and continue our current operations. As a result, our business may suffer, and we may be forced to reduce or discontinue operations.

There is no assurance that we will ever be profitable or that debt or equity financing will be available to us in the amounts, on terms, and at times deemed acceptable to us, if at all. The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business, as planned, and as a result may be required to scale back or cease operations for our business, the result of which would be that our stockholders would lose some or all of their investment. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern.

<u>Cash Flow – Operating Activities</u>

For the twelve months ended December 31, 2021, our cash used in operating activities amounted to an outflow of $1,815,251, compared to $36,061 in cash in operating activities for the twelve months ended December 31, 2020. The increase in cash used in our operating activities is due to changes in our accrued interest expenseon notes payable.

<u>Cash Flow – Financing Activities</u>

For the twelve months ended December 31, 2021, our cash provided by financing activities amounted to $2,968,124, which includes $94,011 in proceeds received from the issuances of our Preferred Stock, a $350,000 premium paid upon the conversion of certain convertible notes payable, and $1,132,629 in proceeds from the issuance of convertible notes, and $1,367,086 in proceeds from the issuance of notes payable and $24,398 from the issuance of notes to a related party.

For the twelve months ended December 31, 2020, our cash provided by financing activities amounted to $36,561, which includes $36,561 in proceeds received from the issuances of Notes issued to related parties.

<u>Cash Flow – Investing Activities</u>

Net cash used in investing activities in the twelve months ended December 31, 2021 was $1,110,540, compared to $0 in net cash used in investing activities for the twelve months ended December 31, 2020. This increase in cash used in investing activities is due to new property acquisitions and capital improvement on existing properties in our real estate portfolio.

***Accounts Receivable and Allowance for Doubtful Account Receivable***

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Accounts receivable are recorded at net realizable value. We determine provisions for uncollectible accounts, sales returns, and claims based upon factors including the credit risk and activity of specific distributors and resellers, historical trends, and other information. If we become aware of a specific distributor's or reseller's inability to meet its financial obligations, bad debt charges are recorded based on an overall assessment of past due accounts receivable outstanding. In the opinion of management, a provision was deemed necessary for uncollectible accounts.

***Property, Plant and Equipment***

 ****

Our property, plant and equipment consists almost entirely of fully finished or partially finished single family homes, duplexes and garden apartment buildings in cities including, but not limited to, Indianapolis, Philadelphia-metro region and Houston. We periodically evaluate and adjust the fair value of these properties. As of December 31, 2021, the book value of our owned properties was $638,302, compared to approximately $0 at December 31, 2020. We expect the balance of our property, plant and equipment to increase as we implement our future growth strategies.

***Goodwill and Intangible Assets***

 ****

Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. We have selected December 31 as the date to perform the annual impairment test.

Intangible assets represent both indefinite lived and definite lived assets. Trademarks are deemed to have definite useful lives of ten years, are amortized, and are tested annually for impairment. Intangible assets are reported on the balance sheet at cost less accumulated amortization. We have selected December 31 as the date to perform the annual impairment test.

***Stock-Based Compensation***

 ****

FASB's ASC Topic 718, Stock Compensation (formerly, FASB Statement 123R), prescribes accounting and reporting standards for all stock-based payment transactions in which employee and non-employee services are acquired. We measure the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Fair value for restricted stock awards is valued using the closing price of our Common Stock on the date of grant. For the twelve months ended December 31, 2021 and 2020, we recognized stock-based compensation expense of approximately $128,755, and $0, respectively.

***Off Balance Sheet Arrangements***

As of December 31, 2021 and on December 31, 2020, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to stockholders.

***Critical Accounting Policies***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions and conditions. We continue to monitor significant estimates made during the preparation of our financial statements. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

**Item 3. Properties.**

The Company rents office spaces located at 6 St. Johns Lane, New York, New York, a 650 square foot facility hosting the Company's senior executive team and administrative staff. The Company pays approximately $750.00 per month in rent for its offices.

In addition to our principal offices, we also own and operate the following properties:

*Infinity View Villas ("IVV")*

On March 23, 2021 the Company entered an agreement to acquire 3-bedroom villas in Infinity View Villas in Loma Linda, the Dominican Republic, which will be marketed to travelers as the tourism industry recovers from the COVID-19 pandemic. Infinity View Villa is comprised of a total of 12 2 and 3BR vacation villas. This villa acquired is part of Phase I which is comprised of 3 villas. This Phase I is finalized and now the company is looking to list the project on its Abode platform to finance the development of Phases II and III..

The Company has additional rights to co-develop three additional villas, where the Company can make investments of up to One Hundred Twenty Thousand Dollars ($120,000) in the development of the properties, in exchange for Sixty Percent (60%) of profits from the sale of the properties. As of the date of this Registration Statement, Phase I (one villa) has been completed, and construction of the remaining two villas is projected to be completed by the end of the third quarter of 2023.

*Fishtown, Pennsylvania*

MetroHouse owns a 50,000 sqft, fully entitled residential site in Fishtown, Pennsylvania. The site will eventually be developed into a 3-story townhouses, intended for co-living. The townhouses will be managed and operated by MetroHouse. The Company expects to begin development and construction of the townhouses in the third quarter of 2023.

*Houston*

On August 9, 2021, the Company acquired a 51% stake in a 60,295 square foot office building located in Houston for $3,850,000. The Company will make additional capital investments into the building, and offer both traditional office leases and co-working spaces. Historically, the building has generated Net Operating Income of approximately $469,000 per year.

*Indianapolis*

On November 21, 2021, the Company acquired six multi-family homes in Indianapolis. Each home consists of two fully furnished units, each having 2 – 3 bedrooms and 1 – 3 bathrooms, with high end finishes and appliances. As of February 14<sup>th</sup>, 2023, Company owned properties in Indianapolis include:

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| | | | |
|:---|:---|:---|:---|
| **Unit** | **Bedrooms** | **Bathrooms** | **Square Footage** |
| **1221 Union Street** | 3 | 2 | 1281 |
| **1223 Union Street** | 3 | 2 | 1281 |
| **1322 Union Street** | 2 | 1.5 | 1181 |
| **1324 Union Street** | 2 | 1.5 | 1181 |
| **1326 Union Street** | 3 | 3 | 1583 |
| **1328 Union Street** | 3 | 3 | 1583 |
| **1406 Union Street** | 3 | 3 | 1347 |
| **1408 Union Street** | 3 | 3 | 1347 |
| **1709 Union Street** | 3 | 2 | 1188 |
| **1711 Union Street** | 2 | 2 | 1188 |
| **1730 Union Street** | 3 | 1.5 | 1332 |
| **1732 Union Street** | 3 | 1 | 1228 |

---

These units are in varying stages of renovation, with 6 units currently being used for short and long term rentals. All houses will eventually be fully incorporated in the MetroHouse platform for co-living arrangements.

**Item 4. Security Ownership of Certain Beneficial Owners and Management.**

***Security Ownership of Certain Beneficial Owners, Management and Directors***

To our knowledge, based on information furnished to us, each person named in the tables below has sole voting and investment power with respect to such shares, shown as beneficially owned by such person, except as otherwise indicated. The number of securities shown represents the number of securities the person "beneficially owns," as determined by the rules of the Commission. The Commission has defined "beneficial" ownership of a security to mean the possession, directly or indirectly, of voting power and/or investment power. A security holder is also deemed to be, as of any date, the beneficial owner of all securities that such security holder has the right to acquire within 60 days after that date through (i) the exercise of any option, warrant, or right, (ii) the conversion of a security, (iii) the power to revoke a trust, discretionary account, or similar arrangement, or (iv) the automatic termination of a trust, discretionary account, or similar arrangement.

The following table sets forth, as of February 14<sup>th</sup>, 2023, certain information with respect to the beneficial ownership of our Common Stock by (i) each stockholder, or group of affiliated stockholder, known by us to be the beneficial owner of 5% or more of our outstanding Common Stock, (ii) our directors, (iii) each of our named executive officers, and (iv) all of our directors and executive officers as a group.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Address** | **Title of Class** | **Amount and Nature of Beneficial Ownership** | **Percent Owned (%) <sup>(1)</sup>** |  |
| Oscar Brito, Chief Executive Officer, Chairman of the Board <sup>(2)</sup><br> 6 St. John's Lane New York, NY 10012 | Common Stock | 3600000000<sup>(3)</sup> | 10 | % |
| Steven Plumb, Chief Financial Officer, Director<br> 6 St. John's Lane New York, NY 10012 | Common Stock | 0 | 0 | % |
| Alejandro Laplana, Chief Technology Officer, Director 6 St. John's Lane New York, NY 10012 | Common Stock | 3600000000 | 10 | % |
| Daniel Laplana, Senior Vice President of Business Development 6 St. John's Lane New York, NY 10012 | Common Stock | 7200000000 | 0 | 20% |
| **Directors and Executive Officers as a Group 4 persons)** | **Common Stock** | 0 | 0 | % |

---

\* Less than 1%

&nbsp;&nbsp;&nbsp;&nbsp;(1) Applicable percentage of ownership is based on 28,612,513,511 shares of common stock outstanding as of February 14<sup>th</sup>, 2023, plus, for each stockholder, all shares that such stockholder could be issued within 60 days upon the conversion or exercise of any convertible or exercisable securities.

(2) Includes 3,600,000,000,000 shares of our Common Stock held by GBS Capital Partners ("GBS"), an entity over which Mr. Brito has dispositive and voting authority. Notwithstanding the percentage noted on the table, GBS and Mr. Brito have voting power, through Common Stock and the Series B Stock, in excess of 50% of our total voting power.

(3) Mr. Brito is deemed to be the beneficial owner of GBS Capital since he shares voting and dispositive power with respect to shares held in the name of GBS Capital.

The following table sets forth, as of February [] 2022 329, certain information with respect to the beneficial ownership of our Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series Z Preferred Stock by (i) each stockholder, or group of affiliated stockholder, known by us to be the beneficial owner of 5% or more of our outstanding Common Stock, (ii) our directors, (iii) each of our named executive officers, and (iv) all of our directors and executive officers as a group.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Address** | **Title of Class** | **Amount and Nature of Beneficial Ownership** | **Percent of Class Owned (%) <sup>(1)</sup>** |
| Oscar Brito, CEO, Chairman of the Board <sup>(2)</sup><br> 6 St. John's Lane | Series B Preferred Stock | 1643255 | 100% |
| New York, NY 10012 | Series C Preferred Stock | 0 | 0% |
|  | Series D Preferred Stock | 0 | 0% |
|  | Series E Preferred Stock | 5 | 100% |
|  | Series F Preferred Stock | 0 | 0% |
|  | Series Z Preferred Stock | 0 | 0% |
| Steven Plumb, CFO, Director<br> 6 St. John's Lane New York, NY 10012 | Series B Preferred Stock | 0 | 0% |
|  | Series C Preferred Stock | 0 | 0% |
|  | Series D Preferred Stock | 0 | 0% |
|  | Series E Preferred Stock | 0 | 0% |
|  | Series F Preferred Stock | 0 | 0% |
|  | Series Z Preferred Stock | 0 | 0% |
| Alejandro Laplana, CTO, Director<br> 6 St. John's Lane New York, NY 10012 | Series B Preferred Stock | 0 | 0% |
|  | Series C Preferred Stock | 0 | 0% |
|  | Series D Preferred Stock | 0 | 0% |
|  | Series E Preferred Stock | 0 | 0% |
|  | Series F Preferred Stock | 0 | 0% |
|  | Series Z Preferred Stock | 0 | 0% |
| Daniel Laplana, SVP Business Development, | Series B Preferred Stock | 0 | 0% |
| 6 St. John's Ln New York, NY 10012 | Series C Preferred Stock | 0 | 0% |
|  | Series D Preferred Stock | 0 | 0% |
|  | Series E Preferred Stock | 0 | 0% |
|  | Series F Preferred Stock | 0 | 0% |
|  | Series Z Preferred Stock | 0 | 0% |
| **Directors and Executive Officers as a Group ([●])** | Series B Preferred Stock | 1643255 | 100%% |
|  | Series C Preferred Stock | 0 | 0% |
|  | Series D Preferred Stock | 5 | 100% |
|  | Series E Preferred Stock | 0 | 0% |
|  | Series F Preferred Stock | 0 | 0% |
|  | Series Z Preferred Stock | 0 | 0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Applicable percentage of ownership is based on 1,643,255 shares of
 Series B Stock outstanding as of February 13, 2023, plus, for each stockholder, all shares that such stockholder could be issued
 within 60 days upon the conversion or exercise of any convertible or exercisable securities.

***Changes in Control***

We do not know of any arrangements that may, at a subsequent date, result in a change in control.

**Item 5. Directors and Executive Officers.**

***Directors and Executive Officers***

Our executive officers are appointed by, and serve at the pleasure of, our Board, holding office until their death, resignation, or removal from office. Each of our directors serve a one-year term, with the current director serving until the next annual meeting of stockholders, until his respective successor has been duly elected and qualified, or until his death, resignation, or removal.

The following table sets forth information regarding our executive officers and directors:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Position** | **Date First Elected or Appointed** |
| Oscar Brito | 50 | Chief Executive Officer, Director, President, | March 2013 |
| Steven Plumb | 62 | Chief Financial Officer, Director | May 1, 2021 |
| Alejandro Laplana | 30 | Chief Technology Officer, Director | May 1, 2021 |
| Daniel Laplana |  | VP, Business Development | May 1, 2021 |

---

***Oscar Brito – Chief Executive Officer, Chairman of the Board.*** Mr. Brito has served as our Chief Executive Officer, and director since June 2021, and previously served as Chief Financial Officer from October 2017 to June 2021. Mr. Brito has more than two decades of experience in real estate development and management in the US and Europe. He previously co-founded The Bulgari Hotel in May 2007, a luxury hotel in London, where he sourced the site location, and developed the property into a leading boutique hotel. Additionally, he co-founded IQSTel, Inc. in June 2017, a Spanish telecommunications firm providing VoIP and telecom services to Tier-1 carriers in Europe, including Deutsche Telecom and Vodafone. He served as Members of the Board of Directors of IQSTel from June 2017 [ to [March, 2020.. Lastly, he is founder and currently managing director of GBS Capital Partners, LLC, a merchant bank specializing I middle-market tech and real estate investments and advisory. Since founding the firm, he has advised on transactions totaling $500 million. Mr. Brito holds a Law Degree from the Universidad Católica Andrés Bello, and a MBA from Duke University's Fuqua School of Business. We believe that Mr. Brito is qualified to serve on our Board because of he has served in multiple C-level positions in public companies and has the experience and knowledge necessary to lead us.

***Steven M. Plumb, CPA – Chief Financial Officer, Director****.* Mr. Plumb is a seasoned senior executive and financial manager experienced in operations, finance and marketing. He has Big 4 CPA experience, a background in IT, biotech, oil and gas, real estate, medical and utility companies. Mr. Plumb was the chief financial officer of Artella Solutions, Inc., a private medical device company, since December 2018 through May 2021 He has served as the chief financial officer of DirectView Holdings, Inc. (DIRV.PK) since January 2020. From May 2013 through February 2019, Mr. Plumb was the Chief Financial Officer of ProBility Media Corp. (PBYA.PK). From 2011 to 2013, Mr. Plumb was the Chief Financial Officer of Bering Exploration, Inc., (BERX) an oil and gas exploration and production company. In April 2013, Mr. Plumb was appointed to the additional position of President of Bering. From 2012 to 2014, Mr. Plumb served as the chief financial officer of Complexa, Inc., a venture capital backed biotechnology company. From September 2009 to April 2012, Mr. Plumb served as the Chief Financial Officer of ADB International Group, Inc. (ADBI.PK) and from June 2010 to April 2012, he also served on the board of directors of ADBI. From September 2010 to June 2011, Mr. Plumb served as the Chief Financial Officer of Galaxy Media & Marketing Corp (Galaxy) and from January 2011 to June 2011 he also served as a member of the board of directors and chair of the board of directors of Galaxy. Since 2001, he has served as the owner and president of Clear Financial Solutions, Inc., a consulting firm that provides interim CFO services to small public companies. In this capacity he has prepared SEC filings, managed investor relations, raised capital, conducted mergers and acquisition activities, developed successful offering memorandum, registration statements and investor presentations. Mr. Plumb is a former auditor with PriceWaterhouseCoopers and KPMG. Mr. Plumb has a Bachelor of Business Administration degree from the University of Texas at Austin, Austin, Texas.

***Alejandro Laplana – Chief Technology Officer, Director.*** Mr. A. Laplana has served as our Chief Technology Officer since May, 2021. Prior to joining our firm, Mr. A. Laplana had extensive experience in business development and venture capital, and managing startups. He served as Vice President of Urbalink, a market researcher and corporate advisor in the telecommunications industry from December 2012 to January 2014. After this, he served as co-founder and Managing Partner of anyGuest.com from October 2013 to January 2016, and co-founder and Managing Partner of After-Mouse.com from October 2013 to January 2016. In these roles, Mr. A. Laplana oversaw business and product development, and oversaw Series A raises from major venture capital firms. Additionally, Mr. A. Laplana served as Director and COO of Horizon Globex, a VoIP platform provider for the Latin American market, from January 2015 to November 2018, and Managing Principal of Nesting Partners, a Venture Capital Firm, from March 2015 to March 2018. In addition to this, he has been founder and CEO of Shokworks, Inc. since January 2017, and is an active investor in numerous startups. Mr. A. Laplana previously sat on the board of directors of CryptoBucks, Sophisticated, Two Way Stadiums, Inc. and Publishmenu.com. He holds a Bachelor's of Arts in Economics and International Relations from Syracuse University and a Master's of Science in Executive Management of Technology from New York University.

***Daniel Laplana – Senior Vice President of Business Development.*** Mr. D. Laplana has served as our Senior Vice President of Business Development since May, 2021. Prior to this, he had extensive experience in real estate and business development. He previously served as a business development executive at Vaster Capital from March 2017 to March 2019. Additionally, he is a sales agent at Douglas Elliman Real Estate, a role he has held since May 2015. Lastly, he currently serves as Chief Operating Officer of Shokworks since March 2018. Mr. D. Laplana holds a Bachelor of Business Administration in Marketing and Management from American University.

***Family Relationships***

There are no family relationships among any of our executive officers or director, except that Board of Director member, Alejandro Laplana is brother to SVP Mr. Daniel Laplana.

***Involvement in Certain Legal Proceedings***

None of our executive officers or director has been involved in any of the following events during the past ten years:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any petition under the federal bankruptcy laws or any state insolvency
 laws filed by or against, or an appointment of a receiver, fiscal agent, or similar officer by a court for the business or property
 of such person, or any partnership in which such person was a general partner at or within two years before the time of such filing,
 or any corporation or business association of which such person was an executive officer at or within two years before the time of
 such filing;

(b) any conviction in a criminal proceeding or being subject to a pending
 criminal proceeding (excluding traffic violations and other minor offenses);

(c) being subject to any order, judgment, or decree,
 not subsequently reversed, suspended, or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining such
 person from, or otherwise limiting, the following activities: (i) acting as a futures commission merchant, introducing broker, commodity
 trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity
 Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or
 dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association,
 or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; engaging in any type
 of business practice; or (ii) engaging in any activity in connection with the purchase or sale of any security or commodity or in
 connection with any violation of federal or state securities laws or federal commodities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) being the subject of any order, judgment, or decree, not subsequently
 reversed, suspended, or vacated, of any federal or state authority barring, suspending, or otherwise limiting for more than 60 days
 the right of such person to engage in any activity described in paragraph (c)(i) above, or to be associated with persons engaged
 in any such activity;

(e) being found by a court of competent jurisdiction (in a civil action),
 the Commission to have violated a federal or state securities or commodities law, and the judgment in such civil action or finding
 by the Commission has not been reversed, suspended, or vacated;

(f) being found by a court of competent jurisdiction in a civil action
 or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action
 or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended, or vacated;

(g) being the subject of, or a party to, any federal or state judicial
 or administrative order, judgment, decree, or finding, not subsequently reversed, suspended, or vacated, relating to an alleged violation
 of: (i) any federal or state securities or commodities law or regulation; or (ii) any law or regulation respecting financial institutions
 or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution,
 civil money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order; or (iii) any law or regulation
 prohibiting mail or wire fraud or fraud in connection with any business entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) being the subject of, or a party to, any sanction or order, not subsequently
 reversed, suspended, or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered
 entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity, or organization
 that has disciplinary authority over its members or persons associated with a member.

**Item 6. Executive Compensation.**

The following table sets forth certain compensation awarded to, earned by, or paid to the following "named executive officers," which term is defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all individuals serving as our principal executive officer and principal
 financial officer during the years ended December 31, 2021, 2020, and 2019; and

(b) each of our three other most highly compensated executive officers
 who were serving as executive officers at the end of the years ended December 31, 2021, 2020, and 2019.

Except as set forth in the following table, we did not have any individuals for whom disclosure would have been required but for the fact that the individual was not serving as an executive officer as of the end of fiscal 2021.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Position** | **Fiscal Year** | **Salary ($)** | **Stock Awards ($) <sup>(1)</sup>** | **Total ($)** |
| **Oscar Brito <sup>(2)</sup>** | 2021 | $140000 | $0 | $0 |
| *Chief Executive Officer,* | 2020 | 140000 | 0 | 0 |
| *Chairman of the Board *  | 2019 | 284000<sup>(6)</sup> | 0 | 0 |
| **Steven Plumb <sup>(3)</sup>** | 2021 | $0 | $0 | $0 |
| *Chief Financial Officer, Director* | 2020 | 0 | 0 | 0 |
|  * *  | 2019 | 0 | 0 | 0 |
| ***Alejandro Laplana <sup>(4)</sup>*** | 2021 | $0 | $360000 | $360000 |
| *Chief Technology Officer, Director* | 2020 |  |  |  |
|  | 2019 | 0 | $0 | 0 |
| ***Daniel Laplana <sup>(5)</sup>*** | 2021 | $0 | $0 | $0 |
| *Senior Vice President of Business* | 2020 | 0 |  | ] |
| *Development, Director*  | 2019 | 0 |  |  |

---

---

| | |
|:---|:---|
| <sup>(1)</sup> | For valuation purposes, the dollar amount shown is calculated based on the market price of our Common Stock on the grant dates. The number of shares granted, the grant date, and the market price of such shares for each named executive officer is set forth below. |
| <sup>(2)</sup> | Mr. Brito was appointed as our Chief Executive Officer in June, 2021, and previously served as Chief Financial Officer from October 2017 to June 2021. |
| <sup>(3)</sup><br>| Mr. Plumb was appointed as our Chief Financial Officer in May, 2021 |
| <sup>(4)</sup> | Mr. A. Laplana was appointed as our Chief Technology Officer in May, 2021. |
| <sup>(5)</sup> | Mr. D. Laplana was elected as Senior Vice President of Business Development in May, 2021. |
| <sup>(6)</sup> | Mr. Brito's compensation in 2018 includes a base annual salary of $140,000 and a one time signing bonus of $144,000. |

---

 ****

***Narrative Disclosure to Summary Compensation Table***

The following is a discussion of the material information that we believe is necessary to understand the information disclosed in the foregoing Summary Compensation Table.

<u>Oscar Brito</u>

On May 2018, we entered into an employment agreement with Mr. Brito. Pursuant to the employment agreement, Mr. Brito is entitled to a base salary of $140,000 per year. Mr. Brito is also eligible to receive an annual bonus as provided for under an annual incentive plan sponsored and maintained by us and/or as the Board determines in its discretion, as well as options to purchase shares of Common Stock as the Board determines in its discretion. In addition to certain payments due to Mr. Brito upon termination of employment, the employment agreement contains customary non-competition, non-solicitation, and confidentiality provisions. Finally, Mr. Brito is eligible for certain other welfare, pension, and incentive benefits available to all of our senior executives.

Mr. Brito earned total cash compensation for his services to us in the amount of $0 for each of fiscal 2021, 2020, and 2019.

No common shares have been issued to Mr. Oscar Brito since 2015..

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

We did not have any option awards or unvested stock awards outstanding as of December 31, 2021.

***Retirement or Similar Benefit Plans***

There are no arrangements or plans in which we provide retirement or similar benefits for our director or executive officers.

***Resignation, Retirement, Other Termination, or Change in Control Arrangements***

Other than as disclosed below, we have no contract, agreement, plan, or arrangement, whether written or unwritten, that provides for payments to our director or executive officers at, following, or in connection with the resignation, retirement, or other termination of our director or executive officers, or a change in control of our Company or a change in our director's or executive officers' responsibilities following a change in control.

Mr. Brito and our other senior executives are entitled to payments upon termination pursuant to the terms of their respective employment agreements. If the officer's employment is terminated by us "without cause" or by the officer for "good reason" (each term as defined in the employment agreement), we are obligated to pay to the officer (i) his base salary and any bonus earned and/or accrued, but unpaid through the date of termination, (ii) a pro rata portion of the officer's annual bonus for the fiscal year in which the officer's termination occurs in an amount at least equal to (1) the officer's target bonus amount, multiplied by (2) a fraction, the number of which is the number of days in the fiscal year in which the termination occurs through the date of termination and the denominator of which is 365 (the "Pro-Rated Bonus"), (iii) any accrued vacation pay, and (iv) a lump-sum cash payment equal to 50% of the officer's then-current base salary. We are also obligated to continue for a period of six months following the termination, medical, hospitalization, dental, and life insurance programs the officer and his dependents were participating immediately prior to the date of termination (the "Continued Benefits").

If the officer's employment is terminated by us for "cause" or by the officer "without good cause" (each term as defined in the employment agreement), we are obligated to pay the officer his base salary and accrued vacation pay through the date of termination. If the officer's employment is terminated for "disability" (as that term is defined in the employment agreement), we are obligated to pay the officer his base salary, bonus, and accrued vacation pay through the date of termination as soon as practicable following the date of termination, the Pro-Rated Bonus, and the Continued Benefits for a period of one year.

If the officer's employment is terminated by reason of death, we are obligated to pay to his beneficiaries, legal representatives, or estate, as the case may be, the officer's base salary and accrued vacation pay through the date of termination, his Pro-Rated Bonus, and the Continued Benefits, for the benefit of the officer's spouse and dependence, for a period of two years.

***Director Summary Compensation Table***

As of February 13<sup>th</sup>, 2023, we do not have any non-employee directors. We did not compensate them for their service as directors during any of the years in which they served.

***Risk Assessment in Compensation Programs***

During our 2020, 2019, and 2018 fiscal years, we paid compensation to our employees, including executive and non-executive officers. Due to the size and scope of our business, and the amount of compensation, we did not have any employee compensation policies and programs to determine whether our policies and programs create risks that are reasonably likely to have a material adverse effect on us.

**Item 7. Certain Relationships and Related Party Transactions, and Director Independence.**

***Related Party Transactions***

When we are contemplating entering into any transaction in which any executive officer, director, director nominee, or any family member of the foregoing would have any direct or indirect interest, regardless of the amount involved, the terms of such transaction have to be presented to the Chairman of the Board for his consideration. The Board has not adopted a written policy for related party transactions.

Except for the transactions described below, we have had no related party transactions during the fiscal years ended December 31, 2021, 2021, and 2019.

<u>Transactions with Oscar Brito and GBS Capital Partners, LLC</u>

Oscar Brito, our Chief Executive Officer, and President, is the owner of GBS. Commencing in March 2013, Mr. Brito, through GBS, entered into a series of financial arrangements, consulting agreements, and an employment agreement with us. During our fiscal years prior to our 2020 fiscal year, GBS assisted us with certain business transactions and earned fees in respect thereof, which fees were accrued and portions of which were repaid by our issuing to GBS shares of our Common Stock. Mr. Brito, directly, entered into an employment agreement with us in May 2018, pursuant to which he is to receive $140,000 in annual compensation. During our fiscal years prior to our 2020 fiscal year, as well as our 2020 fiscal year, much of Mr. Brito's compensation has been accrued. Effective August 9, 2022 we issued

643,255 shares of our Series B Stock to GBS in consideration of the retirement of our accrued obligations (approximately $643,255) to GBS and Mr. Brito.

***Director Independence***

Our Board is currently composed of three members: Mr. Brito, Mr. A. Laplana, and Mr. Plumb. Our Common Stock is not currently listed for trading on a national securities exchange and, as such, we are not subject to any director independence standards.

***Board Compensation***

Our board of directors currently consists of three members. Each director of the Company serves until the next annual meeting of stockholders and until his successor is elected and duly qualified, or until his earlier death, resignation or removal. Our board is authorized to appoint persons to the offices of Chairman of the Board of Directors, President, Chief Executive Officer, one or more vice presidents, a Treasurer or Chief Financial Officer and a Secretary and such other offices as may be determined by the board.

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

***Board Committees***

Our Board has three board committees – Audit Committee, Compensation Committee and Nomination Committee. The membership of the committees are as follows:

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| | | | |
|:---|:---|:---|:---|
| Committees | Audit Committee | Compensation Committee | Nomination Committee |
| Members: | Steven Plumb, *Committee Head* <br> Oscar Brito<br> Alejandro Laplana | Oscar Brito, *Committee Head*<br> Steven Plumb<br> Alejandro Laplana | Oscar Brito, *Committee Head*<br> Steven Plumb<br> Alejandro Laplana |

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<u>Audit Committee</u>

On January 1, 2021, our Board adopted an audit committee charter (the "Audit Committee Charter") to govern the Audit Committee. Currently, Messrs. Brito, Plumb, and A. Laplana serve on the Audit Committee. As of the date of this Registration Statement, none of the members qualifies as an "audit committee financial expert."

The Audit Committee Charter requires that each member of the Audit Committee meet the independence requirements of The Nasdaq Stock Market LLC and the Commission and requires that the Audit Committee have at least one member that qualifies as an "audit committee financial expert." We believe that Mr. Plumb satisfies these requirements. In addition to the enumerated responsibilities of the Audit Committee in the Audit Committee Charter, the primary function of the Audit Committee is to assist our Board in its general oversight of our accounting and financial reporting processes, audits of our financial statements, and internal control and audit functions.

<u>Compensation Committee</u>

On January 1, 2021, our Board approved and adopted a charter (the "Compensation Committee Charter") to govern the Compensation Committee. Currently, Messrs. Brito, Plumb, and A. Laplana (Chairman) serve as members of the Compensation Committee. In addition to the enumerated responsibilities of the Compensation Committee in the Compensation Committee Charter, the primary function of the Compensation Committee is to oversee the compensation of our executives, produce an annual report on executive compensation for inclusion in our proxy statement, if and when required by applicable laws or regulations, and advise our Board on the adoption of policies that govern our compensation programs.

<u>Governance and Nominating Committee</u>

On January 1, 2021, our Board approved and adopted a charter (the "Nominating Committee Charter") to govern the Governance and Nominating Committee (the "Nominating Committee"). Currently, Messrs. Brito, Plumb, and A. Laplana (Chairman) serve as members of the Nominating Committee.

**Item 8. Legal Proceedings.**

***Legal Proceedings***

From time to time we are involved in various legal actions arising in the normal course of business. We currently have no legal proceeding to which we are a party to or to which our property is subject and, to the best of our knowledge, no adverse legal activity is anticipated or threatened.

**Item 9. Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters.**

***Market Information***

Our Common Stock is quoted on the OTCM's Pink Open Market, under the symbol "MSPC." The following table shows the high and low closing bid prices of our Common Stock for periods indicated as reported by the OTCM. The market quotations reflect inter-dealer prices, without retail mark-up, mark-down, or commission, and may not necessarily represent actual transactions.

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| | | |
|:---|:---|:---|
| **Quarter Ended** | **High Closing Bid Price Per Share** | **Low Closing Bid Price Per Share** |
| *Fiscal Year 2023* |  |  |
| First Quarter (through February 13, 2023) | $.0002 | $0.00001 |
| *Fiscal Year 2022* |  |  |
| Fourth Quarter | $0.0002 | $0.00005 |
| Third Quarter | $0.0002 | $0.0001 |
| Second Quarter | $0.0003 | $0.0001 |
| First Quarter | $0.0004 | $0.0002 |
| *Fiscal Year 2022* |  |  |
| Fourth Quarter | $0.0004 | $0.0002 |
| Third Quarter | $0.00245 | $0.0006 |
| Second Quarter | $0.0025 | $0.0006 |
| First Quarter | $0.0033 | $0.0003 |
| *Fiscal Year 201* |  |  |
| Fourth Quarter | $0.0006 | $0.00005 |
| Third Quarter | $0.0001 | $0.00005 |
| Second Quarter | $0.0001 | $0.00005 |
| First Quarter | $0.0001 | $0.00005 |
| *Fiscal Year 2019* |  |  |
| Fourth Quarter | $0.0002 | $0.00005 |
| Third Quarter | $0.0002 | $0.00005 |
| Second Quarter | $0.0002 | $0.0001 |
| First Quarter | $0.0004 | $0.0001 |

---

On February 13<sup>th</sup> 2023, the closing bid price of our Common Stock as reported by OTCM was $0.0001per share.

***Holders***

As of February 14<sup>th</sup> 2023, we had approximately 590 record holders of shares our Common Stock. As of February 14<sup>th</sup> , 2023 we had 28,612,513,511shares of our Common Stock issued and outstanding.

***Securities Authorized for Issuance under Equity Compensation Plans***

We do not have any equity compensation plans.

***Securities Authorized for Issuance under Equity Compensation Plans***

We do not have any equity compensation plans.

***Securities Not Registered under the Securities Act; Rule 144 Eligibility***

Our Common Stock and preferred stock have not been registered under the Securities Act. Accordingly, the shares of Common Stock and preferred stock issued and outstanding may not be resold absent registration under the Securities Act and applicable state securities laws or an available exemption thereunder.

<u>Rule 144</u>

Shares of our Common Stock that are restricted securities may be eligible for resale in compliance with Rule 144 of the Securities Act, subject to the requirements described below. "Restricted securities," as defined under Rule 144, were issued and sold by us in reliance on exemptions from the registration requirements of the Securities Act. These shares may be sold in the public market only if registered or if they qualify for an exemption from registration, such as Rule 144. Below is a summary of the requirements for sales of our Common Stock pursuant to Rule 144, after the effectiveness of this Registration Statement.

For a person who has not been deemed to have been one of our affiliates at any time during the 90 days preceding a sale, sales of our shares of Common Stock held longer than six months, but less than one year, will be subject only to the current public information requirement. A person who is not deemed to have been one of our affiliates at any time during the 90 days preceding a sale, and who has beneficially owned the shares proposed to be sold for at least one year, is entitled to sell his or her shares without complying with the manner of sale, public information, volume limitation, or notice provisions of Rule 144.

A person who is our affiliate or who was our affiliate at any time during the preceding three months and who has beneficially owned restricted securities for at least six months, will generally be entitled to sell within any three-month period a number of shares that does not exceed one percent of the number of shares of our Common Stock then outstanding. Sales under Rule 144 by our affiliates are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us. Persons who may be deemed to be affiliates generally include individuals or entities that control, or are controlled by, or are under common control with, us and may include our directors and officers, as well as our significant stockholders.

We expect that substantially all of the 449,688,215 issued and outstanding shares of our Common Stock will be eligible for sale under Rule 144 90 days after the effective date of this Registration Statement. We cannot estimate the number of shares of our Common Stock that our existing stockholders will elect to sell under Rule 144.

**Item 10. Recent Sales of Unregistered Securities.**

***Recent Sales of Unregistered Securities***

***We issued the following shares of our Common Stock in Fiscal Year 2019:***

On January 3, 2019, we issued a 8% Convertible Note to an institutional investor for a principal amount of $33,333 with a six month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $50,125. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On January 10, 2019, we issued a 12% Convertible Note to an institutional investor for a principal amount of $38,889 with a six month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $49,311. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On January 15, 2019, we issued a 12% Convertible Note to an institutional investor for a principal amount of $33,600 with a twelve month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $43,223. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On January 17, 2019, we issued a 12% Convertible Note to an institutional investor for a principal amount of $50,000 with a six month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $74,630. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On March 7, 2019, we issued a 12% Convertible Note to an institutional investor for a principal amount of $11,111 with a six month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $16,211. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On April 8, 2019, we issued a 12% Convertible Note to an institutional investor for a principal amount of $22,222 with a six month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $31,927. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On August 21, 2019, we issued a [●]% Convertible Note to an institutional investor for a principal amount of $13,333 with a four month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $18,410. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On October 4, 2019, we issued a [●]% Convertible Note to an institutional investor for a principal amount of $14,000 with a twelve month term that is convertible into shares of our Common Stock. As of February 13, 2023, the outstanding balance was $17,216. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

***We also issued the following warrants that are convertible into shares of our Common Stock in Fiscal Year 2019:***

Each of the warrants was issued to one institutional investor in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Issuance** | **Initial Exercise Date** | **Expiration Date** | **Underlying Number of Shares** | **Exercise Price Per Share** |
|  |  |  |  | $|
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|  |  |  |  | $|
|  |  |  |  | $|
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***We did not issue any shares of our Common Stock or convertible notes in Fiscal Year 2020.***

***We issued the following shares of our Common Stock in Fiscal Year 2021:***

On March 24, 2021, we issued 718,258,667 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00006, for an aggregate value of $43,096. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On April 3, 2021, we issued 554,961,250 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $22,198. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On May 20, 2021, we issued 497,812,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $19,912. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On May 24, 2021, we issued 100,000,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00024, for an aggregate value of $24,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On May 26, 2021, we issued 526,693,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $21,056. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On May 26, 2021, we issued 140,000,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00025, for an aggregate value of $35,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On June 15, 2021, we issued 528,753,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $21,150. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On June 15, 2021, we issued 100,000,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00018, for an aggregate value of $18,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On June 21, 2021, we issued 118,699,500 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $4,747. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On June 23, 2021, we issued 72,536,000 shares of our Common Stock to an institutional investor in connection with the partial conversion of a convertible note payable. The shares were issued at a per-share price of $0.00004, for an aggregate value of $2,901. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

***We issued the following notes that are convertible into shares of our Common Stock in Fiscal Year 2021:***

On March 5, 2021, we issued a Convertible Note to an institutional investor for a principal amount of $22,173 with a twelve month term that is convertible into shares of our Common Stock. As of February 14, 2023, the outstanding balance was $22,363. We issued the Convertible Note and, as applicable, the underlying shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

***We issued the following shares of our Common Stock in Fiscal Year 2022:***

On January 18, 2022, we issued 83,333,333 shares of our Common Stock to Anna Fuenmayor as compensation for services rendered to the Company. The shares were issued for an aggregate value of $43,488. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On April 12, 2022, we issued 200,000,000 shares of our Common Stock to Pardes Irrevocable Trust as compensation for services rendered to the Company. The shares were issued for an aggregate value of $60,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On May 10, 2022, we issued 178,855,837 shares of our Common Stock to Isaias Medina on the conversion of Preferred Series D shares. The shares were issued for an aggregate value of $10. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On July 5, 2022, we issued 720,166,667 shares of our Common Stock to Yohan Naraine in connection with the conversion of a convertible note payable. The shares were issued for an aggregate value of $21,605. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On July 22, 2022, we issued 3,600,000,000 shares of our Common Stock to GBS Capital Partners, LLC on the conversion of Preferred Series D accrued dividends. The shares were issued for an aggregate value of $486,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On August 8, 2022, we issued 3,600,000,000 shares of our Common Stock to Alejandro Laplana as compensation for services rendered to the Company. The shares were issued for an aggregate value of $720,000. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

On August 12, 2022, we issued 643,255 shares of our Series B Preferred Stock to GBS Capital Partners, LLC as compensation for services rendered to the Company. The shares were issued for an aggregate value of $643,225. We issued the shares in reliance on the exemption from registration pursuant to Rule 506 of Regulation D promulgated by the Commission under the Securities Act.

**Item 11. Description of Registrant's Securities to be Registered.**

*The following is a summary of all material characteristics of our capital stock as set forth in our Certificate of Incorporation and our Bylaws. The summary does not purport to be complete and is qualified in its entirety by reference to our Certificate of Incorporation and our Bylaws, and to the provisions of the Delaware General Corporation Law ("DGCL"). We encourage you to review complete copies of our Certificate of Incorporation, Certificate of Designation of our Series Z Stock, and our Bylaws. Copies of these documents are filed as exhibits to this Registration Statement.*

***General***

We are currently authorized to issue up to 36,210,000,000 shares of our Common Stock and 10,000,000 shares of our preferred stock, par value $0.000001 per share.

***Common Stock***

Of the 36,210,000,000 shares of Common Stock authorized by our Certificate of Incorporation, 28,612,513,511 shares of our Common Stock are issued and outstanding as of February 14, 2023. Each holder of our Common Stock is entitled to one vote per share held of record on all matters submitted to a vote of the stockholders and not entitled to cumulative voting for the election of directors. Holders of our Common Stock do not have any preemptive, conversion, or other subscription rights. Holders of our Common Stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Board out of funds legally available therefor, subject to the rights of preferred stockholders. We have not paid any dividends and do not intend to pay any cash dividends to the holders of our Common Stock in the foreseeable future. We anticipate reinvesting our earnings, if any, for use in the development of our business. In the event of liquidation, dissolution, or winding up of the Company, the holders of our Common Stock are entitled, unless otherwise provided by law or our Certificate of Incorporation, including any certificate of designations for series of preferred stock, to share ratably in all assets remaining after payment of liabilities and the preferences of preferred stockholders. There are no redemption or sinking fund provisions applicable to our Common Stock.

We are not registering any other class or series of our equity securities. We are providing a description of our class of preferred stock and our Series Z Stock below to put into context the above description of the class of our Common Stock.

***Preferred Stock***

We currently have 10,000,000 shares of preferred stock, par value $0.000001 per share, authorized in our Certificate of Incorporation. Of this, 2,000,000 shares have been designated as Series B Preferred Stock, of which 1,643,255 are issued and outstanding as of February 13<sup>th</sup>, 2023. The per-share Stated Value of the Series B Stock is $0.00001 100,000 shares have been designated as Series C Preferred Stock, of which 0 are issued and outstanding as of February 13, 2023. 400,000 shares have been designated Series D Preferred Stock, of which 2,000 shares have been issued, as of August 13<sup>th</sup>, 2023. 5 shares have been designated Series E Preferred Stock, of which 5 shares have been issued, as of February 13<sup>th</sup>, 2023. 10,000,000 shares have been designated Series Z Preferred Stock, of which zero shares have been issued, as of February 13<sup>th</sup>, 2023 2023.

The Board is authorized, without further approval from our stockholders, to create one or more series of preferred stock, and to designate the rights, privileges, preferences, restrictions, and limitations of any given series of preferred stock. Accordingly, the Board may, without stockholder approval, issue shares of preferred stock with dividend, liquidation, conversion, voting, or other rights that could adversely affect the voting power or other rights of the holders of our Common Stock.

<u>Series B Preferred Stock</u>

As of February 13<sup>th</sup>, 2023, 2023, 1,643,255 shares of Series B Preferred Stock are issued and outstanding. The shares of Series B Preferred Stock, as a series, have voting rights, on a variable basis, to an aggregate vote equivalent to one share in excess of the maximum potential vote of the aggregate of the other classes or series of the then-issued and outstanding equity voting shares at any occasion when the vote of the holders of voting equity of the Company is held (whether at an annual meeting or special meeting of such holders or by the written consent of such holders). The shares of Series B Preferred Stock do not have any redemption rights. The shares of Series B Preferred Stock do not have any preemptive or equivalent rights.

 

*Conversion Rights of Series B Preferred Stock*

At the option of the holder of Series B Preferred Stock, each share of Series B Preferred Stock shall be initially convertible at a price of $0.000135.

*Dividend Rights of Series B Preferred Stock*

We may not declare, pay, or set aside any dividends on shares of Common Stock unless (in addition to the obtaining of any consents required in the Certificate of Incorporation), from and including February 2015, the holders of the Series B Preferred Stock then outstanding shall receive a dividend at a non-compounded, but cumulative rate of 8.75% of the Stated Value, payable, with or without the declaration thereof by the Board of Directors, solely in connection with and upon conversion of shares of the Series B Preferred Stock and only upon those shares of Series B Preferred Stock that are then being converted. Such dividends shall be only payable in shares of Common Stock and be made in accordance with applicable corporate law.

*Liquidation Preference of Series B Preferred Stock*

Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary, the holders of Series B Preferred Stock shall be entitled to receive out of our assets, whether capital or surplus, an amount equal to the Stated Value for each share of Series B Preferred Stock out of the proceeds of such liquidation, plus any accrued and unpaid dividends thereon and any other fees then due and owing thereon. The entitlement to liquidation proceeds is junior to any other series of Preferred Stock, that, in accordance with its respective liquidation rights, is superior to the liquidation rights of the Series B Preferred Stock. The holders of the Series B Preferred Stock shall not participate in our remaining proceeds from a Liquidation. A fundamental transaction or change of control transaction shall not be deemed a Liquidation.

<u>Series C Preferred Stock</u>

As of February 13<sup>th</sup>, 2023, 0 shares of Series C Preferred Stock are issued and outstanding. The shares of Series C Preferred Stock, as a series, have voting rights, on a variable basis, to an aggregate vote equivalent to one share in excess of the maximum potential vote of the aggregate of the other classes or series of the then-issued and outstanding equity voting shares at any occasion when the vote of the holders of voting equity of the Company is held (whether at an annual meeting or special meeting of such holders or by the written consent of such holders). The shares of Series C Preferred Stock do not have any redemption rights. The shares of Series C Preferred Stock do not have any preemptive or equivalent rights.

 

*Conversion Rights of Series C Preferred Stock*

At the option of the holder of Series C Preferred Stock, each share of Series C Preferred Stock shall be initially convertible into Common Stock at a 90% of the price of the previous 10 days bid price.

 

*Dividend Rights of Series C Preferred Stock*

We may not declare, pay, or set aside any dividends on shares of Common Stock unless (in addition to the obtaining of any consents required in the Certificate of Incorporation. The Series C Preferred Stock then outstanding shall receive a dividend at a non-compounded, but cumulative rate of 8.75% of the Stated Value, payable, with or without the declaration thereof by the Board of Directors, solely in connection with and upon conversion of shares of the Series C Preferred Stock and only upon those shares of Series C Preferred Stock that are then being converted. Such dividends shall be only payable in shares of Common Stock and be made in accordance with applicable corporate law.

*Liquidation Preference of Series C Preferred Stock*

Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary, the holders of Series C Preferred Stock shall be entitled to receive out of our assets, whether capital or surplus, an amount equal to the Stated Value for each share of Series C Preferred Stock out of the proceeds of such liquidation, plus any accrued and unpaid dividends thereon and any other fees then due and owing thereon. The entitlement to liquidation proceeds is junior to any other series of Preferred Stock, that, in accordance with its respective liquidation rights, is superior to the liquidation rights of the Series C Preferred Stock. The holders of the Series C Preferred Stock shall not participate in our remaining proceeds from a Liquidation. A fundamental transaction or change of control transaction shall not be deemed a Liquidation.

<u>Series D Preferred Stock</u>

As of February 13<sup>th</sup>, 2023, 2,000 shares of Series D Preferred Stock have been issued. The shares of Series D Preferred Stock, as a series, have voting rights, on a variable basis, to an aggregate vote equivalent to one share in excess of the maximum potential vote of the aggregate of the other classes or series of the then-issued and outstanding equity voting shares at any occasion when the vote of the holders of voting equity of the Company is held (whether at an annual meeting or special meeting of such holders or by the written consent of such holders). The shares of Series D Preferred Stock do not have any redemption rights. The shares of Series D Preferred Stock do not have any preemptive or equivalent rights.

 

*Conversion Rights of Series D Preferred Stock*

At the option of the holder of Series D Preferred Stock, each share of Series D Preferred Stock shall be initially convertible into into Common Stock at a 90% of the price of the previous 10 days bid price 

*Dividend Rights of Series D Preferred Stock*

We may not declare, pay, or set aside any dividends on shares of Common Stock unless (in addition to the obtaining of any consents required in the Certificate of Incorporation), . The Series D Preferred Stock then outstanding shall receive a dividend at a non-compounded, but cumulative rate of 8.75% of the Stated Value, payable, with or without the declaration thereof by the Board of Directors, solely in connection with and upon conversion of shares of the Series D Preferred Stock and only upon those shares of Series D Preferred Stock that are then being converted. Such dividends shall be only payable in shares of Common Stock and be made in accordance with applicable corporate law.

*Liquidation Preference of Series D Preferred Stock*

Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary, the holders of Series D Preferred Stock shall be entitled to receive out of our assets, whether capital or surplus, an amount equal to the Stated Value for each share of Series D Preferred Stock out of the proceeds of such liquidation, plus any accrued and unpaid dividends thereon and any other fees then due and owing thereon. The entitlement to liquidation proceeds is junior to any other series of Preferred Stock, that, in accordance with its respective liquidation rights, is superior to the liquidation rights of the Series D Preferred Stock. The holders of the Series D Preferred Stock shall not participate in our remaining proceeds from a Liquidation. A fundamental transaction or change of control transaction shall not be deemed a Liquidation.

<u>Series E Preferred Stock</u>

The Series E Preferred Stock is not convertible into the common stock of the Company and does not accrue dividends. The outstanding shares of Series E Preferred Stock haves the right to take action by written consent of vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock of the Company such that the holders of the outstanding shares of Series E Preferred Stock shall always constitute 80% of the voting rights of the Company. Currently, Mr. Oscar Brito owns 5 Preferred shares which constitute 100% of the issued and outstanding.

<u>Series Z Preferred Stock</u>

The Series Z Preferred Stock is not convertible into the common stock of the Company and does not accrue dividends. The outstanding shares of Series Z Preferred Stock haves the right to take action by written consent of vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock of the Company such that the holders of the outstanding shares of Series Z Preferred Stock shall always constitute 0% of the voting rights of the Company. As of February 14, 2023, no Series Z shares have been issued.

***Anti-Takeover Effects of Various Provisions of Delaware Law and the Company's Certificate of Incorporation and Bylaws***

**Delaware Anti-Takeover Provisions** 

The Company is subject to Section 203 of the DGCL, an anti-takeover statute. Section 203 of the DGCL protects publicly traded Delaware corporations, such as the Company following the distribution, from hostile takeovers, and from actions following a hostile takeover, by prohibiting some transactions once a potential acquirer has gained a significant holding in the corporation. Subject to certain exceptions, the statute prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prior to such date, the board of directors
 approved of such corporation either the business combination or the transaction that resulted
 in the stockholder becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon consummation of the transaction
 that resulted in the stockholder becoming an interested stockholder, the interested stockholder
 owned at least 85% of the voting stock of such corporation outstanding at the time the transaction
 commenced (excluding for purposes of determining the number of shares outstanding (but not
 the outstanding voting stock owned by the interested stockholder), those shares owned by
 (i) persons who are directors and also officers and (ii) employee stock plans in which employee
 participants do not have the right to determine confidentially whether shares held subject
 to the plan will be tendered in a tender or exchange offer); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) on or after such date the business combination
 is approved by the board of directors of such corporation and authorized at an annual or
 special meeting of stockholders and not by written consent, by the affirmative vote of at
 least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.

For purposes of Section 203 of the DGCL, a "business combination" includes a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder, with an "interested stockholder" being defined as a person who, together with affiliates and associates, owns (or who is an affiliate or associate of the corporation and did own within three years prior to the date of determination whether the person is an "interested stockholder") 15% or more of the corporation's voting stock.

A corporation may elect not to be governed by Section 203 of the DGCL. Neither the Company's Certificate of Incorporation nor the Company's Bylaws contain the election not to be governed by Section 203 of the DGCL. Therefore, the Company will be governed by Section 203 of the DGCL.

**Governing Documents**

Certain provisions of the Company's Certificate of Incorporation and Bylaws (collectively, the "Governing Documents") could discourage potential acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood of continuity and stability in the composition of the Company's Board and in the policies formulated by the Company's Board and to discourage certain types of transactions that may involve an actual or threatened change of control. These provisions are designed to reduce the Company's vulnerability to an unsolicited acquisition proposal or proxy fight. Such provisions could have the effect of discouraging others from making tender offers for the Company's shares and, as a consequence, they also may inhibit fluctuations in the market price of the Company's Common Stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in the Company's management or delaying or preventing a transaction that might benefit minority shareholder of the Company. These provisions include, among others:

● Authority of the Board to issue capital stock;

● Members of the Board may be removed at any time only, with or without cause, by the affirmative vote of the holders of at least a majority of the voting power of the issued and outstanding shares then entitled to vote at an election of directors, voting together as a single class;

● No cumulative voting; and

● All stockholder actions must be effected at a duly called meeting of stockholders and not by written consent.

The Bylaws of the Company also impose some procedural requirements on the Company's stockholders who wish to make nominations in the election of directors; or, propose any other business to be brought before an annual meeting of stockholders. Under these procedural requirements, in order to bring a proposal of business before an annual meeting of stockholders, a stockholder must deliver timely written notice of a proposal pertaining to a proper matter for stockholder action at the annual meeting to the Company's secretary containing, among other things, the following:

● a description of the business or nomination to be brought before the meeting, the text of the proposal and the reasons for conducting such business at the meeting;

● the name and record address of each stockholder proposing business, as they appear in the Company's books and the name and address of the beneficial owner, if any, on whose behalf the proposal is made;

● the class or series and number of shares of stock of the Company, directly or indirectly, held of record and beneficially by and of record by such stockholder and by the beneficial owner, if any, on whose behalf the proposal is made;

● the class or series and number of shares of stock of the Company that are owned beneficially in concert;

● a description of all arrangements or understandings between such stockholder and the beneficial owner, if any, on whose behalf the proposal is made and any other person or persons (including their names) in connection with the proposal of such business by such stockholder; and

● any material interest of such stockholder and beneficial owner, if any, on whose behalf the proposal is made in such business.

The Company's Bylaws also set out the timeliness requirements for delivery of such notice. In order to submit a nomination for the Company's Board, a stockholder must also submit any information with respect to the nominee that the Company would be required to include in a proxy statement, as well as some other information. If a stockholder fails to follow the required procedures, the stockholder's proposal or nominee will be ineligible and will not be voted on by the Company's stockholders.

**Size of Board and Vacancies**

The Company's Governing Documents provide that the Board will consist of one or more members, with the exact number of directors to be fixed by resolution of the Board. Unless otherwise required by law or the Certificate of Incorporation, vacancies on the Board or any committee thereof resulting from the death, resignation or removal of a director, or from an increase in the number of directors constituting the Board or such committee or otherwise, may be filled only by a majority of the directors then in office, though less than a quorum, or by a sole remaining director. The directors so chosen shall, in the case of the Board, hold office until the next annual election and until their successors are duly elected and qualified, or until their earlier death, resignation or removal and, in the case of any committee of the Board, shall hold office until their successors are duly appointed by the Board or until their earlier death, resignation or removal.

**Special Stockholder Meetings**

A special meeting of stockholders may only be Board of Directors, the Chairman of the Board, or the Chief Executive Officer of the Company, and stockholders may not act by written consent unless expressly provided to the contrary for a particular class.

**Certain Effects of Authorized but Unissued Stock**

The Company's authorized but unissued shares of Common Stock will available for the Board to issue without stockholder approval. The Company will be able to use the additional authorized shares of Common Stock for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of the Company's authorized but unissued shares of Common Stock could render more difficult or discourage an attempt to obtain control of the Company by means of a proxy contest, tender offer, merger or other transaction.

The Board will also be able to, without approval of stockholders, issue one or more series of Preferred Stock. In some cases, the issuance of Preferred Stock could delay, defer or prevent a change in control of the Company and make it harder to remove present management, without further action by the Company stockholders. Under some circumstances, Preferred Stock could also decrease the amount of earnings and assets available for distribution to holders of the Common Stock if the Company liquidates or dissolves and could also restrict or limit dividend payments to holders of the Common Stock.

***Transfer Agent and Register***

Our transfer agent and registrar for our Common Stock is Empire Stock Transfer, Inc., 1859 Whitney Mesa, Drive, Henderson, Nevada, 89014. Its telephone number is (702) 818-5898.

We will pay all fees charged by the transfer agent for transfers of our Common Stock except for special charges for services requested by a stockholder. We will also indemnify the transfer agent, its agents and each of their respective stockholders, directors, officers and employees against all claims and losses that may arise out of acts performed or omitted for its activities in that capacity, except for any liability due to any gross negligence or intentional misconduct of the indemnified person or entity.

The transfer agent may resign, by notice to us, or be removed by us. The resignation or removal of the transfer agent will become effective upon our appointment of a successor transfer agent and registrar and its acceptance of the appointment.

---

| | |
|:---|:---|
| **ITEM 12.** | **INDEMNIFICATION OF DIRECTORS AND OFFICERS.** |

---

The Company's Certificate of Incorporation provides that no director will be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty acting in his/her capacity as a director, except for liability (i) for any breach of the duty of loyalty to the Company or its stockholders; (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii) under Section 174 of the DGCL; or, (iv) for any transaction from which the director derived an improper personal benefit. If the DGCL is amended to authorize corporate action further limiting or eliminating the personal liability of a director, then the liability of a director to the Company shall be limited or eliminated to the fullest extent permitted by the DGCL, as so amended from time-to-time.

The Company's Certificate of Incorporation and Bylaws provide that the Company will indemnify any director, officer, employee, fiduciary, or agent of the Company (each a "Covered Person") who was or is made or is threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding"), other than a Proceeding by or in the right of the Company, by reason of the fact that such person is or was a Covered Person, or, while a Covered Person, or is or was serving at the request of the Company as a Covered Person of another corporation, partnership, joint venture, trust or other enterprise, against all liability and loss suffered and expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with such Proceeding if such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that such person did not act in good faith and in a manner which such person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had reasonable cause to believe that such person's conduct was unlawful. The Company shall also have the power to indemnify its Covered Persons as set forth in the DGCL or other applicable law.

The Company's Certificate of Incorporation and Bylaws also provide that the Company will indemnify any person who was or is made a party or is threatened to be made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of the fact that such person is or was a Covered Person of the Company or is or was serving at the request of the Company as a Covered Person of another corporation, partnership, joint venture, trust or other enterprise, against all liability and loss suffered and expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Company and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery of the State of Delaware or such other court shall deem proper. Notwithstanding the foregoing, the Company shall be required to indemnify a person in connection with a Proceeding (or part thereof) commenced by such person only if the commencement of such Proceeding (or part thereof) by such person was authorized in the specific case by the Board.

The Company's Bylaws further provide that, to the extent that a Covered Person has been successful on the merits or otherwise in defense of any Proceeding referred to above, or in defense of any claim, issue or matter therein, the Company shall indemnify such person against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

Expenses actually and reasonably incurred by a Covered Person in defending a civil or criminal Proceeding may be paid by the Company in advance of the final disposition of such Proceeding upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified by the Company. Such expenses may be so paid upon such terms and conditions, if any, as the Board deems appropriate.

The Company may purchase and maintain insurance on behalf of any person who is or was a Covered Person, or is or was serving at the request of the Company as a Covered Person of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of his status as such, whether or not the Company would have the power to indemnify such person against such liability under the provisions of the Company's Bylaws.

**Item 13. Financial Statements and Supplementary Data.**

**Metrospaces, Inc.**

**Financial Statements & Notes**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#f_001) | F-28 |
| [Consolidated Balance Sheets as of December 31, 2021 and 2020](#f_002) | F-29 |
| [Consolidated Statements of Operations for the years ended December 31, 2021 and 2020](#f_003) | F-30 |
| [Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2021 and 2020](#f_004) | F-31 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020](#f_005) | F-32 |
| [Notes to the Consolidated Financial Statements](#f_006) | F-33 |

---

**Metrospaces, Inc.**

**Quarterly Financial Statements**

**Three and Nine Months Ending September 30, 2022 and 2021**

METROSPACES, INC.

Consolidated Balance Sheets

---

| | | |
|:---|:---|:---|
|  | **September 30, 2022** | **December 31, 2021** |
| ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $79 | $42833 |
| Non-current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Investment in marketable securities | 50000 | 781722 |
| &nbsp;&nbsp;&nbsp;Prepayments for furniture and fixtures | 2428 | 30928 |
| &nbsp;&nbsp;&nbsp;Property, net | 5512931 | 638302 |
| &nbsp;&nbsp;&nbsp;Investment in partnership | 330203 | 321709 |
| &nbsp;&nbsp;&nbsp;Note receivable – related party | 82500 |  |
| TOTAL ASSETS | $5978141 | $1815494 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $807216 | $620786 |
| &nbsp;&nbsp;&nbsp;Notes payable, net | 6302055 | 1367086 |
| &nbsp;&nbsp;&nbsp;Notes payable - accrued interest | 1288441 | 989499 |
| &nbsp;&nbsp;&nbsp;Notes payable - related parties | 620070 | 115451 |
| &nbsp;&nbsp;&nbsp;Convertible notes, net | 1487516 | 1481654 |
| &nbsp;&nbsp;&nbsp;Operating lease, current |  |  |
| &nbsp;&nbsp;&nbsp;Accrued dividends – preferred stock | 427893 | 835143 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | 2073834 | 992463 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities | 13007025 | 6402082 |
| TOTAL LIABILITIES | $13007025 | $6402082 |
| Commitments and contingencies |  |  |
| MEZZANINE EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Series B preferred stock, $0.000001 par value, 2,000,000 shares authorized, 1,150,000 and 1,200,000 shares issued and outstanding at December 31, 2021 and 2020, respectively. | 1 | 1 |
|  | $1 | $1 |
| Stockholders' Deficit |  |  |
| &nbsp;&nbsp;&nbsp;Series F Preferred Stock, $0.000001 par value, 400,000 shares authorized, 5,556 and 0 shares issued and outstanding at December 31, 2021 and 2020, respectively. | 6 | 6 |
| &nbsp;&nbsp;&nbsp;Common Stock, $0.000001 par value, 36,200,000,000 shares authorized 28,612,513,511 and 20,230,157,674 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively. | 28612 | 20230 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 16954870 | 15021189 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (24012437) | (19628014) |
| &nbsp;&nbsp;&nbsp;Total Stockholders' Deficit | (7028884) | (4586589) |
| TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT | $5978141 | $1815494 |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**Consolidated Statements of Income**

**Three and Nine Months Ending September 30, 2022 and 2021**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended,** | **Three Months Ended,** | **Nine Months Ended,** | **Nine Months Ended,** |
|  | **September 30,**<br>**2022** | **September 30,**<br>**2021** | **September 30,**<br>**2022** | **September 30,**<br>**2021** |
| Revenue, net of discounts | $51432 | $47372 | $223977 | $47372 |
| Operating Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 1332204 | 740392 | 2236336 | 928148 |
| **Total operating expenses** | **1332204** | **740392** | **2236336** | **928148** |
| **Operating Loss** | **(1280772)** | **(693020)** | **(2012359)** | **(880776)** |
| Other Income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (567726) | (696338) | (906772) | (891233) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on change in fair value of derivative | (1061238) | 467035 | (1081370) | 10187049 |
| &nbsp;&nbsp;&nbsp;Gain on sale of marketable securities | (364419) | (164183) | (196932) |  |
| &nbsp;&nbsp;&nbsp;Change in value of marketable securities |  |  | (186990) | 589302 |
| &nbsp;&nbsp;&nbsp;Interest income |  | 15201 |  | 34055 |
| &nbsp;&nbsp;&nbsp;Other income (Loss) |  |  |  |  |
| **Total other income (expense)** | **(1993383)** | **(378285)** | **(2372064)** | **9919173** |
| **Net Income (loss) before taxes** | **(3274155)** | **(1071305)** | **(4384423)** | **9038397** |
| Income tax benefit |  |  |  |  |
| **Net Income (Loss)** | **(3274155)** | **(1071305)** | **(4384423)** | **9038397** |
| Net loss per common share - basic and diluted | $(0.00) | $0.00 | $(0.00) | $0.00 |
| Weighted average of common shares - basic and diluted | 29607561659 | 10526204993 | 25652518480 | 10328856176 |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**Consolidated Statements of Cash Flows**

**Nine Months Ending September 30, 2022 and 2021**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| **Net Income (Loss)** | $**(4384423)** | $**9038397** |
| **Adjustments to reconcile net loss to net cash provided by (used in) operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 1277297 | 210000 |
| &nbsp;&nbsp;&nbsp;Depreciation | 67484 | 12395 |
| &nbsp;&nbsp;&nbsp;Income from partnership | (8494) |  |
| &nbsp;&nbsp;&nbsp;Change in value of marketable securities |  | (129257) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on change in fair value of derivative | 1081371 | (10187049) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in operating assets: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (10922) | (34056) |
| &nbsp;&nbsp;&nbsp;Inventory |  | (79905) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 28500 |  |
| &nbsp;&nbsp;&nbsp;Notes receivable | 649222 |  |
| Increase (decrease) in operating liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 721347 | 885337 |
| **Net Cash Used in Operating Activities** | **(567696)** | **(284138)** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Tenant deposits |  | 74499 |
| Purchase of property | (4942113) | (4061413) |
| **Net Cash provided by Investing Activities** | **(4942113)** | **(3986914)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Proceeds from issuance of note payable | 4934969 | 3832965 |
| Proceeds from related party loans | 504619 | 198965 |
| Proceeds from convertible notes payable | 27467 | 158752 |
| **Net Cash Provided By Financing Activities** | **5467055** | **4190682** |
| **Net increase (decrease) in cash and cash equivalents** | **(42754)** | **(80370)** |
| Cash and cash equivalents, beginning of period | 42833 |  |
| Cash and cash equivalents, end of period | $79 | $(80370) |
| Supplemental cash flow information |  |  |
| Cash paid for interest | $— | $— |
| Cash paid for taxes | $— | $— |
| Non-cash transactions: |  |  |
| Conversion of convertible debt into common stock | $21605 | $168976 |
| Conversion of preferred stock series B to common stock | $179 | $— |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**Consolidated Statements of Stockholders' Deficit**

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series C Preferred Stock** | **Series C Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Series F Preferred Stock** | **Series F Preferred Stock** | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid in**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** | **Mezzanine Equity**<br>**Shares** |<br>**Amount** |
| **Balance, December 31, 2021** |  | $— | 600 | $— | $— | $— | 5556 | $6 | 20230157674 | $20230 | $15021189 | $(19628014) | $(4586589) | 1150000 | $1 |
| Stock compensation |  |  |  |  |  |  |  |  | 3683333333 | 3683 | 727614 |  | 731297 |  |  |
| Conversion of accrued compensation into Preferred Series B stock |  |  |  |  |  |  |  |  |  |  | 643161 |  | 643161 | 643255 | 64 |
| Conversion of dividend payable into common stock |  |  |  |  |  |  |  |  | 3600000000 | 3600 | 482400 |  | 486000 |  |  |
| Conversion of convertible note payable |  |  |  |  |  |  |  |  | 720166667 | 720 | 20885 | 21605 |  |  |  |
| Issuance of common stock to an employee |  |  |  |  |  |  |  |  | 200000000 | 200 | 59800 |  | 60000 |  |  |
| Conversation of Preferred Series D stock into common stock |  |  | (10) |  |  |  |  |  | 178855837 | 179 | (179) |  |  |  |  |
| Net income (unaudited) |  |  |  |  |  |  |  |  |  |  |  | (4384423) | (4384423) |  |  |
| **Balance, September 30, 2022** |  | $— | 590 | $— |  | $— | 5556 | $6 | 28612513511 | $28612 | $16954870 | $(24012437) | $(7028949) | 1793255 | $65 |

---

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series C Preferred Stock** | **Series C Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Series F Preferred Stock** | **Series F Preferred Stock** | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid in**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** | **Mezzanine Equity**<br>**Shares** |<br>**Amount** |
| **Balance, December 31, 2020** |  | $— | 2000 | $— | $— | $— |  | $— | 9347210713 | $9493 | $7252229 | $(21859233) | $(14597511) | 1200000 | $1 |
| Stock compensation |  |  |  |  |  |  |  |  | 408333333 | 409 | 209591 |  | 210000 |  |  |
| Conversion of accrued compensation into Preferred Series B stock |  |  |  |  |  |  |  |  |  |  | 643161 |  | 643161 |  |  |
| Conversion of convertible note payable |  |  |  |  |  |  |  |  | 7608671729 | 7608 | 1626919 |  | 1634527 |  |  |
| Issuance of Preferred Stock Series E |  |  |  |  | 5 |  |  |  |  |  | 25000 |  | 25000 |  |  |
| Conversation of Preferred Series D stock into common stock |  |  | (2000) |  |  |  |  |  | 64814815 | 65 | (65) |  |  |  |  |
| Net income (unaudited) |  |  |  |  |  |  |  |  |  |  |  | 9038397 | 9038397 |  |  |
| **Balance, September 30, 2021** |  | $— |  | $— | 5 | $— |  | $— | 17429030590 | $17575 | $9756835 | $(12820836) | $(3046426) | 1200000 | $1 |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

 **Notes to Consolidated Financial Statements**

**Three and Nine Months Ended September 30, 2022 and 2021**

**1. Organization and Basis of Presentation**

***Organization***

MetroSpaces, Inc. ("the Company") was incorporated in the State of Delaware on December 11, 2007. On May 18, 2021, the Company formed MetroHouse, Inc., a wholly owned subsidiary, for the purpose of investing in real estate. On February 15, 2022, the Company formed Metrohouse LLC, a wholly owned subsidiary, for the purpose of investing in real estate. On July 26, 2022 the Company formed Abode Stays, Inc., a wholly owned subsidiary, for the purpose of creating a property rental company.

On August 9, 2021, the Company formed Metrospaces Partners, LLC, a wholly owned subsidiary, for the purpose of investing in Metro Houston Partners I, LLC. Metrospaces Partners, LLC owns 51% of the membership units of Metro Houston Partners I, LLC, but lacks control over the affairs of Metro Houston Partners I, LLC, and, accordingly, this entity is an unconsolidated subsidiary that is accounted for using the equity method of accounting for investments.

The Company maintains its principal executive offices in New York, New York, United States.

The Company's activities are subject to significant risks and uncertainties, including the need for additional capital, as described below. The Company does not have positive cash flows from operations, and is dependent on periodic infusions of debt and equity capital to fund its operating requirements.

***Business Operations***

The Company is a Prop-tech company focusing on increasing efficiencies in the real estate and real estate market by applying cutting-edge IT solutions.

June 2017, the Company acquired 51% of the membership units of Etelix.com USA, LLC (Etelix) in exchange for a $2 million promissory note. Etelix is a Miami-based carrier-grade telco provider that ran a small data center. In June 2018, Etelix was merged into what is today, IQSTel, Inc. and as a consequence, the Company's ownership dropped below 51% and therefore Etelix was deconsolidated. In June 2020, the Company exchanged the promissory note for shares in IQSTel, Inc, at which point the assets were held as an investment in marketable securities.

***Going Concern***

The Company's financial statements have been presented on the basis that the Company is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company has experienced recurring net losses from operations and negative operating cash flows since inception. During the nine months ended September 30, 2022, the Company recognized net loss of $4,384,423, utilized cash in operating activities of $567,696, and had shareholders' deficiency of $7,028,884 as of September 30, 2022. The Company has financed its working capital requirements since inception through the sale of marketable securities and from borrowings.

At September 30, 2022, the Company had cash of $79. The Company estimates that it has cash and marketable securities to sustain operations through March 2023, and after that a significant amount of capital will be necessary over a sustained period of time to advance the development of the Company's business to the point at which it can become commercially viable and self-sustaining. However, there can be no assurances that the Company will be successful in this regard.

As a result, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern within one year of the date that the accompanying consolidated financial statements are issued. The ability of the Company to continue as a going concern is dependent upon the Company's ability to raise additional funds and implement its business plan, and to ultimately achieve sustainable operating revenues and profitability. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The development and expansion of the Company's business in 2022 and thereafter will be dependent on many factors, including the capital resources available to the Company. No assurances can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company or adequate to fund the development and expansion of the Company's business to a level that is commercially viable and self-sustaining. There is also significant uncertainty as to the affect that the coronavirus pandemic may have on the availability, amount and type of financing in the future.

If cash resources are insufficient to satisfy the Company's ongoing cash requirements, the Company would be required to scale back or discontinue its operations, obtain funds, if available, although there can be no certainty, through strategic alliances that may require the Company to relinquish rights to its technology, or to discontinue its operations entirely.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation***

 ****

The Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP")

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience, and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity instruments issued for financing and services, and the realization of deferred tax assets.

***Cash***

The Company maintains its cash balances with financial institutions with high credit ratings. The Company has not experienced any losses to date resulting from this practice. The Company did not have deposits in excess of the federal deposit insurance threshold.

***Equity Method Investment***

 ****

Metro Houston Partners I, LLC has $862,285 of paid in capital of which $419,000 was invested by the Company through its subsidiary Metrospaces Partners, LLC. Metrospaces Partners, LLC owns a commercial building in the Houston metropolitan area that generates rental income.

***Fair Value of Financial Instruments***

The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required.

Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company can access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives.

Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges.

Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently traded non-exchange-based derivatives and commingled investment funds and are measured using present value pricing models.

The Company will determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company will perform an analysis of the assets and liabilities at each reporting period end.

The carrying value of financial instruments (consisting of cash and accounts payable and accrued expenses) is representative of their respective fair values due to the short-term nature of those instruments.

The following table presents information about the Company's assets and liabilities measured at fair value as of September 30, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 | Total |
| *Assets* |  |  |  |  |
| Investment in equity securities | $— | $— | $— | $— |
| Investment in convertible notes |  | 50000 |  | 50000 |
|  | $— | $50000 | $— | $50000 |
| *Liabilities* |  |  |  |  |
| Notes payable – net |  |  | 6302055 | 6302055 |
| Notes payable – related party |  |  | 620070 | 620070 |
| Convertible notes |  |  | 1487516 | 1487516 |
| Derivative liability | $— | $— | $8409641 | $8409641 |

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The following table presents information about the Company's assets and liabilities measured at fair value as of December 31, 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 | Total |
| *Assets* |  |  |  |  |
| Investment in equity securities | $678322 | $— | $— | $678322 |
| Investment in convertible notes |  | 103400 |  | 103400 |
|  | $678322 | $103400 | $— | $781722 |
| *Liabilities* |  |  |  |  |
| Notes payable – net |  |  | 1367086 | 1367086 |
| Notes payable – related party |  |  | 115451 | 115451 |
| Convertible notes |  |  | 1481654 | 1481654 |
| Derivative liability | $— | $— | $992463 | $992463 |
| Description | Level 1 | Level 2 | Level 3 | Total |
| *Assets* |  |  |  |  |
| Investment in equity securities | $210145 | $— | $— | $210145 |
| Investment in convertible notes |  |  |  |  |
|  | $210145 | $— | $— | $210145 |
| *Liabilities* |  |  |  |  |
| Notes payable – net |  |  |  |  |
| Notes payable – related party |  |  | 91053 | 91053 |
| Convertible notes |  |  | 1834769 | 1834769 |
| Derivative liability | $— | $— | $2374228 | $2374228 |

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***Property and Equipment***

Property and equipment are recorded at cost. Major improvements are capitalized, while maintenance and repairs that do not improve or extend the useful life of the respective assets are charged to expense as incurred. Gains and losses from disposition of property and equipment are included in income and expense when realized. Depreciation of property and equipment is provided using the straight-line method over an estimated useful life of three years.

The Company recognizes depreciation of property and equipment in general and administrative costs in the Company's consolidated statement of operations.

***Leases***

The Company accounts for leases in accordance with Accounting Standards Update 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease initially measured at the present value of the lease payments. ASU 2016-02 requires recognition in the statement of operations of a single lease cost that is calculated as a total cost of the lease allocated over the lease term, generally on a straight-line basis. ASU 2016-02 excludes short-term operating leases with a lease term of 12 months or less at the commencement date, and that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

***Long-Lived Assets***

The Company reviews long-lived assets, consisting of property and equipment and intellectual property, for impairment at each fiscal year end or when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The Company has not historically recorded any impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. As of December 31, 2021 and 2020, the Company had not deemed any long-lived assets as impaired and was not aware of the existence of any indicators of impairment at such dates.

***Convertible Instruments***

 ****

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815.

***Revenue Recognition***

The Company recognizes revenue in accordance with ASC Topic 606, *Revenue From Contracts With Customers*. ASC Topic 606 requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Revenue is recognized based on the following five step model:

● Identification of the contract with a customer

● Identification of the performance obligations in the contract

● Determination of the transaction price

● Allocation of the transaction price to the performance obligations in the contract

● Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company currently has no revenues.

 ****

***Stock-Based Compensation***

The Company issues common stock and intends to issue stock options to officers, directors and consultants for services rendered. Options will vest and expire according to terms established at the issuance date of each grant. Stock grants, which are generally time vested, will be measured at the grant date fair value and charged to operations ratably over the vesting period.

The fair value of stock options granted as stock-based compensation will be determined utilizing the Black-Scholes option-pricing model, and can be affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock. Estimated volatility will be based on the historical volatility of the Company's common stock over an appropriate calculation period, or, if not available, by reference to the volatility of a representative sample of comparable public companies. The risk-free interest rate will be based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of the common stock will be determined by reference to the quoted market price of the Company's common stock on the grant date, or, if not available, by reference to an appropriate alternative valuation methodology.

The Company will recognize the fair value of stock-based compensation awards in general and administrative costs or in software development costs, as appropriate, in the Company's consolidated statements of operations. The Company will issue new shares of common stock to satisfy stock option exercises.

***Comprehensive Income (Loss)***

Comprehensive income or loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Components of comprehensive income or loss, including net income or loss, unrealized gains or losses on available-for-sale securities, unrealized gains or losses on other financial investments, unrealized gains or losses on pension and retirement benefit plans, and foreign currency translation adjustments, are reported in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss) are reported net of any related tax effect to arrive at comprehensive income (loss).

***Income Taxes***

The Company accounts for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities.

The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Alternatively, should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made.

As the Company's net operating losses in the respective jurisdictions in which it operates have yet to be utilized, all previous tax years remain open to examination by the taxing authorities in which the Company currently operates. The Company had no unrecognized tax benefits as of December 31, 2021 and 2020 and does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only if it is "more-likely-than-not" to be sustained by the taxing authority as of the reporting date. If the tax position is not considered "more-likely-than-not" to be sustained, then no benefits of the position are recognized. As of September 30, 2022 and December 31, 2021, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense.

***Earnings (Loss) Per Share***

The Company's computation of earnings (loss) per share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods.

***Derivatives and Hedging Activities.***

 ****

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

***Concentration of Risk***

The Company may periodically contract with consultants and vendors to provide services related to the Company's business development activities. Agreements for these services may be for a specific time period or for a specific project or task. The Company did not have any agreements at September 30, 2022 and December 31, 2021.

***Recent Accounting Pronouncements***

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes how entities measure credit losses for most financial assets, including accounts and notes receivables. ASU 2016-13 will replace the current "incurred loss" approach with an "expected loss" model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the provisions of ASU 2016-13 as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which ASU 2016-13 is effective. As small business filer, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. Management is currently in the process of assessing the impact of adopting ASU-2016-13 on the Company's financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. ASU 2020-06 will be effective January 1, 2024, and a cumulative-effect adjustment to the opening balance of retained earnings is required upon adoption. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company's previously issued consolidated financial statement presentation or disclosures.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements and related disclosures.

**3. Investment in Convertible Notes**

In May 2021, the Company entered into a securities purchase agreement with a publicly traded company to purchase a convertible note in the amount of $50,000 issued by the Issuer. The note bears interest at 5% and is convertible into the issuer's common stock at a 65% discount from the market price of the Issuer's common stock. The note was due May 4, 2022.

In May 2022, the Company converted $8,370 of principal and $2,630 of interest of the note receivable into 1,364,764 shares of the Issuer's common stock. The Company recognized a gain of $7,430 upon the sale of the shares.

In August 2022, the Company converted $12,000 in interest of the note receivable into 1,758,242 shares of the Issuer's common stock. The Company recognized a loss of $570 upon the sale of the common stock.

In October 2022, the Company converted $,9680 in principal and $320 in interest of the note receivable into 6,750,599 shares of the Issuer's common stock. The Company recognized a loss of $1,162 on the sale of the shares.

The balance in the investment in convertible notes was $50,000 and $103,500 at September 30, 2022 and December 31, 2021, respectively.

**4. Property and equipment**

Property and equipment consists of the following at September 30, 2022 and December 31, 2021:

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| | | |
|:---|:---|:---|
|  | **September 30, 2022** | **December 31, 2021** |
| Land | $495000 | $150000 |
| Rental property | 4842052 | 244939 |
| Furniture and fixtures | 295618 | 295618 |
| Total | 5632670 | 690557 |
| Less: accumulated depreciation | (119739) | (52255) |
| Property and equipment, net | $5512931 | $638302 |

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 **5. Investment in Partnership**

On August 9, 2021, the Company invested $419,000 in MetroHouston Partners I, LLC (MetroHouston Partners) via its wholly owned subsidiary, Metrospaces Partners, LLC. On August 9, 2021, MetroHouston acquired a commercial building in Houston, Texas for $3,850,000 in exchange for cash of $962,500 and a note payable with a commercial bank in the amount of $2,887,500. The note bears interest at 3.1% and is due on August 10, 2024 with monthly payments of $13,912 starting with the fifth month after closing. The note is secured by the office building.

The Company owns 51% of the equity in MetroHouston Partners, however since a vote of 2/3 of the members equity is required to make changes in the management of the partnership, the Company does not consolidate MetroHouston Partners. The Company's investment in MetroHouston Partners is accounted for using the equity method.

Metro Houston Partners I, LLC has $862,285 of paid in capital of which $419,000 was invested by the Company through its subsidiary Metrospaces Partners, LLC.

There are no intercompany transactions between Metrospaces Partners, LLC and the Company. The Company's investment in partnership is summarized below:

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| | |
|:---|:---|
| Initial investment | $419000 |
| Distributions | (49997) |
| Company's share of net loss through December 31, 2021 | (47294) |
| Carrying value at December 31, 2021 | 321709 |
| Company's share of net income through September 30, 2022 | 8494 |
| Carrying value at September 30, 2022 | $330203 |

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**6. Investment in marketable securities**

June 2017, the Company acquired 51% of the membership units of Etelix.com USA, LLC (Etelix) in exchange for a $2 million promissory note. Etelix is a Miami-based carrier-grade telco provider that ran a small data center. In June 2018, Etelix was merged into what is today, IQSTel, Inc. and as a consequence, the Company's ownership dropped below 51% and therefore Etelix was deconsolidated. In June 2020, the Company exchanged the promissory note for 1,050,725 shares in IQSTel, Inc, with a fair maket value of $42,696. In February 2021, the Company sold 321,374 shares for net proceeds of $461,453, leaving a balance of 729,378 shares. The Company recognized a gain on the sale of the shares of $460,044. The remaining shares were sold in June 2022. The Company recognized a gain of $167,487 upon the sale of the securities.

As of September 30, 2022 and December 31, 2021, the fair market value of the shares was $0 and $678,322, respectively.

**7. Note Payable – Related Party**

The officers of the Company have advanced funds to the Company from time to time. These advances bear interest at 18%, are unsecured, and payable upon demand. The balance of the note payable – related party was $620,070 and $115,451 at September 30, 2022 and December 31, 2021, respectively. The Company recorded original issue discounts of $73,200 on the notes and amortized $58,933 during the nine months ended September 30, 2022.

**8. Notes payable** 

Notes payable consist of the following at September 30, 2022 and December 31, 2021:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Interest Rate** | **Interest Rate** | **September 30, 2022** | **December 31, 2021** |
| 3/31/2021 | 3/31/2022 |  | 18% | $150000 | $150000 |
| 4/8/2021 | 4/8/2022 |  | 18% | 10000 | 10000 |
| 5/4/2021 | 5/4/2022 |  | 18% | 20000 | 20000 |
| 5/6/2021 | 5/6/2022 |  | 18% | 50000 | 50000 |
| 8/31/2021 | 8/30/2022 |  | 18% | 570000 | 500000 |
| 9/10/2021 | 3/10/2022 |  | 18% | 68421 | 68421 |
| 9/24/2021 | 3/24/2022 |  | 18% | 52632 | 52632 |
| 11/4/2021 | 5/3/2022 |  | 18% | 168421 | 168421 |
| 10/22/2021 | 4/21/2022 |  | 18% | 52632 | 52632 |
| 11/10/2021 | 05/09/2022 |  | 18% | 307000 | 307000 |
| 2/10/2022 | 8/10/2022 |  | 18% | 63000 |  |
| 1/10/2022 | 7/12/2022 |  | 18% | 68250 |  |
| 2/25/2022 | 3/25/2022 |  | 18% | 838953 |  |
| 3/15/2022 | 3/15/2023 |  | 3.1% | 3677246 |  |
| 4/14/2022 | 10/14/2022 |  | 18% | 65000 |  |
| 5/11/2022 | 11/12/2022 |  | 18% | 65000 |  |
| 6/16/2022 | 12/16/2022 |  | 18% | 65000 |  |
| 8/22/2022 | 11/12/2022 |  | 18% | 10500 |  |
|  |  |  |  | 6302055 | 1379105 |
| Less: Original issue discount | Less: Original issue discount | Less: Original issue discount |  |  | (12019) |
|  |  |  |  | $6302055 | $1367086 |

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**7. Convertibles Note Payable**

Convertible notes payable consists of the following at September 30, 2022 and December 31, 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Conversion Terms** | **September 30, 2022** | **December 31, 2021** |
| &nbsp;&nbsp;2/15/2015 | &nbsp;&nbsp;2/16/2016 | &nbsp;&nbsp;58% of the lowest closing bid price during the 15 trading days including the day of conversion | $4949 | $4949 |
| &nbsp;&nbsp;2/26/2015 | &nbsp;&nbsp;2/27/2016 | &nbsp;&nbsp;58% of the lowest closing bid price during the 15 trading days including the day of conversion | 58 | 58 |
| &nbsp;&nbsp;2/6/2015 | &nbsp;&nbsp;2/6/2016 | &nbsp;&nbsp;30% of lowest trading price in 30 trading days ending with last day prior to conversion. | 65000 | 65105 |
| &nbsp;&nbsp;7/28/2015 | &nbsp;&nbsp;7/28/2016 | &nbsp;&nbsp;30% of lowest trading price in 30 trading days ending with last day prior to conversion. Reset within 15 days after conversion if price drops below conversion price at which point conversion price is reset to lowest traded price during that period. | 16000 | 16000 |
| &nbsp;&nbsp;10/23/2015 | &nbsp;&nbsp;10/23/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days | 12000 | 12000 |
| &nbsp;&nbsp;7/28/2015 | &nbsp;&nbsp;1/28/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 30 trading days ending with the day prior to conversion. | 25000 | 25000 |
| &nbsp;&nbsp;2/2/2016 | &nbsp;&nbsp;2/2/2017 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 42193 | 42193 |
| &nbsp;&nbsp;4/28/2017 | &nbsp;&nbsp;10/28/2017 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 60000 | 60000 |
| &nbsp;&nbsp;6/16/2017 | &nbsp;&nbsp;6/16/2018 | &nbsp;&nbsp;40% of lowest trading price in 30 trading days ending with last day prior to conversion. | 9084 | 9084 |
| &nbsp;&nbsp;12/1/2017 | &nbsp;&nbsp;6/1/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 68200 | 68200 |
| &nbsp;&nbsp;2/26/2018 | &nbsp;&nbsp;8/26/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 280167 | 280167 |
| &nbsp;&nbsp;4/4/2018 | &nbsp;&nbsp;10/4/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 163333 | 163333 |
| &nbsp;&nbsp;3/6/2018 | &nbsp;&nbsp;3/6/2019 | &nbsp;&nbsp;60% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 35000 | 35000 |
| &nbsp;&nbsp;3/20/2018 | &nbsp;&nbsp;10/31/2018 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 30000 | 30000 |
| &nbsp;&nbsp;7/13/2018 | &nbsp;&nbsp;12/12/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 72222 | 72222 |
| &nbsp;&nbsp;9/6/2018 | &nbsp;&nbsp;3/6/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 11000 | 11000 |
| &nbsp;&nbsp;10/4/2018 | &nbsp;&nbsp;10/4/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 40000 | 40000 |
| &nbsp;&nbsp;6/3/2016 | &nbsp;&nbsp;6/3/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 15000 | 15000 |
| &nbsp;&nbsp;5/11/2016 | &nbsp;&nbsp;5/11/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 8500 | 8500 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 69000 | 69000 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 2000 | 2000 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 4000 | 4000 |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 4000 | 4000 |
| &nbsp;&nbsp;5/11/2016 | &nbsp;&nbsp;5/11/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 6500 | 6500 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 1000 | 1000 |
| &nbsp;&nbsp;10/4/2019 | &nbsp;&nbsp;10/4/2020 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 14000 | 14000 |
| &nbsp;&nbsp;1/15/2019 | &nbsp;&nbsp;1/15/2020 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 33600 | 33600 |
| &nbsp;&nbsp;8/21/2019 | &nbsp;&nbsp;12/21/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 13333 | 13333 |
| &nbsp;&nbsp;4/8/2019 | &nbsp;&nbsp;10/8/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 22222 | 22222 |
| &nbsp;&nbsp;1/3/2019 | &nbsp;&nbsp;7/3/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 33333 | 33333 |
| &nbsp;&nbsp;1/10/2019 | &nbsp;&nbsp;7/10/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 3889 | 3889 |
| &nbsp;&nbsp;1/17/2019 | &nbsp;&nbsp;7/17/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 50000 | 50000 |
| &nbsp;&nbsp;3/5/2021 | &nbsp;&nbsp;3/5/2022 | &nbsp;&nbsp;The lower of $0.000675 or 55% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 22173 | 22173 |
| &nbsp;&nbsp;6/11/2021 | &nbsp;&nbsp;6/11/2022 | &nbsp;&nbsp;The lower of $0.000675 or 55% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 55000 | 55000 |
| &nbsp;&nbsp;6/24/2021 | &nbsp;&nbsp;6/24/2022 | &nbsp;&nbsp;The lower of $0.000675 or 55% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 55000 | 55000 |
| &nbsp;&nbsp;10/27/2021 | &nbsp;&nbsp;10/27/2022 | &nbsp;&nbsp;The lower of $0.000675 or 55% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 55000 | 55000 |
| &nbsp;&nbsp;Total |  |  | $1487886 | $1487928 |
| &nbsp;&nbsp;Less, unamortized debt discount | &nbsp;&nbsp;Less, unamortized debt discount |  | 370 | 6274 |
| &nbsp;&nbsp;Net |  |  | $1487516 | $1481654 |

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**7. Leases** 

***Short-Term Operating Lease***

 ****

The Company leases office facilities in New York, New York on a month-to-month basis at a cost of $750 per month.

Aggregate payments under this operating lease charged to general and administrative expenses in the statement of operations were $6,750 and $6,750 for the nine months ended September 30, 2022 and 2021, respectively.

***Long-Term Operating Lease***

The Company's leases a vehicle for the use of the Company's chief executive officer.

Operating lease right-of-use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term, and right-of-use lease liabilities represent the Company's obligation to make lease payments arising from the lease. Generally, the implicit rate of interest, equivalent to a discount rate, in lease arrangements is not readily determinable and the prevailing commercial property mortgage rate is utilized in determining the present value of lease payments.

The monthly cash payment for this operating lease was approximately $2,300 per month. The implied borrowing rate on the lease was 4.82% and the term of the lease was three years, beginning on August 14, 2018 and ending on August 12, 2021. As of December 31, 2021 the right of use asset and the remaining lease obligation was $0.

**8. Derivative Liabilities**

The Company has issued convertible note agreements with a variable conversion feature that gives rise to an embedded derivative instrument (see Note 7). The derivative feature has been valued using a binomial lattice-based option valuation model using holding period assumptions developed from the Company's business plan and management assumptions and expected volatility from the Company's stock. Increases or decreases in the Company's share price, the volatility of the share price, changes in interest rates in general, and the passage of time will all impact the value of the derivative instrument. The Company re-values the derivative instrument at the end of each reporting period and any changes are reflected as changes in derivative liabilities in the consolidated statements of operations. The assumptions used during the three months ending September 30, 2022 are as follows:

---

| | |
|:---|:---|
|  | **September 30, 2022** |
| Market value of common stock on measurement date (1) | $0.0002 |
| Adjusted conversion price (2) | $0.0000025 – $0.000005 |
| Risk free interest rate (3) | 0.06% |
| Life of the note in months | 0 months |
| Expected volatility (4) | 52% |
| Expected dividend yield (5) |  |

---

(1) The market value of common stock is based on closing market price as of initial valuation date and the period end re-measurement.

(2) The adjusted conversion price is calculated based on conversion terms described in the note agreement.

(3) The risk-free interest rate was determined by management using the 2-year Treasury Bill as of the respective Offering or measurement date.

(4) The volatility factor was estimated by management using the historical volatilities of the Company's stock.

(5) Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

During the three months ending September 30, 2022 and 2021 a $(1,061,238) and $467,035 (loss) gain on the change in value of the derivative liability was recorded resulting in a net change in derivative liability of $(1,061,238) and $467,035, respectively. During the nine months ending September 30, 2022 and 2021 a $(1,081,370) and $10,187,049 (loss) gain on the change in value of the derivative liability was recorded, resulting in a net change in derivative liability of $(1,081,370) and $10,187,049, respectively. The valuation of the derivative liability was $2,073,834 and $992,463 on September 30, 2022 and December 31, 2021, respectively.

**9. Related Party Transactions**

***Salary and Fees to Directors, Consultants and Professionals***

During the nine months ended September 30, 2022 and 2021, the Company incurred salary and fees to officers, directors, consultants and professionals as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,3** | **September 30,3** |
|  | **2022** | **2021** |
| Oscar Brito | $108000 | $11250 |
| Total | $108000 | $11250 |

---

 ****

As of September 30, 2022 and December 31, 2021, $620,070 and $115,451was due to officers. The advances were unsecured, non-interest bearing with no formal terms of repayment.

**10. Mezzanine Equity**

Mezzanine equity consists of 1,793,255 shares of series B preferred stock with redeemable features that allow the investors to request repayment of their investment. Series B preferred stock is senior to the Company's common stock and all other classes of preferred stock. 1,200,000 shares were issued on February 10, 2015. The liquidation value of the Series B preferred stock is $1.00 per share. Shares are redeemable at the option of the Company from time to time after the closing price of the Company's common stock during any period of twenty consecutive trading days equals or exceeds $0.0014 per share. The shares became redeemable on March 12, 2015. Dividends accrue at the rate of $0.021875 per share on a quarterly basis. The Company recorded interest expense related to the dividends of $78,750 during the nine months ending September 30, 2022 and 2021, respectively. Accrued dividends were$427,893 and $835,143 at September 30, 2022 and December 31, 2021, respectively.

On December 2, 2021, 50,000 shares of series B preferred stock was converted into 370,370,370 shares of common stock.

On August 12, 2022, the Company issued 643,255 shares of Series B preferred stock to the chief executive officer as settlement of $643,255 in accrued salary due to the chief executive officer of the Company.

**11. Stockholders' Equity**

***Preferred Stock***

The Company has authorized a total of 10,000,000 shares of preferred stock as of June 30, 2022. The following preferred shares have been designated by the Company as of September 30, 2022:

<u>Series A</u>

Series A preferred was designated on December 11, 2007. 7,499,995 shares are designated with a par value of $0.001 per share. None have been issued.

<u>Series C</u>

Series C preferred was designated on May 29, 2015. 100,000 shares are designated with a par value of $0.000001. None have been issued. Holders of the Series C preferred stock are entitled to dividends at the quarterly rate of $2.1875 per share. Dividends are fully cumulative, accruing, without interest, from the date of original issuance through the date of redemption or conversion. The liquidation value of the Series C preferred stock is $100.00. Each share of Series C preferred stock is entitled to a number of votes equal to the number of shares held, divided by the current market price on the record date of the Company's common stock. 45,354 shares were issued and outstanding at September 30, 2022 and December 31, 2021.

<u>Series D</u>

Series D preferred stock was designated on July 13, 2015. 400,000 shares were designated with a par value of $0.000001. Holders of the Series D preferred stock are entitled to dividends at the quarterly rate of $2.1875 per share. Dividends are fully cumulative, accruing, without interest, from the date of original issuance through the date of redemption or conversion. The liquidation value of the Series D preferred stock is $100.00. Each share of Series D preferred stock is entitled to a number of votes equal to the number of shares held, divided by the current market price on the record date of the Company's common stock.

On September 21, 2021, 700 shares of series D preferred stock was converted into 158,422,222 shares of common stock.

On May 10, 2022, a holder of Series D preferred stock converted 10 shares of Series D preferred stock into 178,855,837 shares of Common stock.

590 and 600 shares of series D preferred stock were issued and outstanding at September 30, 2022 and December 31, 2021, respectively.

<u>Series E</u>

Series E preferred stock was designated on July 13, 2021. 5 shares were designated without a par value. The shares of Series E preferred stock shall have the right to take action by written consent or vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock such that the holders of outstanding shares of Series E preferred stock shall always constitute eighty percent (80%) of the voting rights of the Company. Five shares were issued and are outstanding as of September 30, 2022 and December 31, 2021, respectively.

<u>Series F</u>

Series F preferred stock was designated on October 3, 2021. 30,000 shares were designated. Holders of the Series F preferred are entitled to a 9% dividend per annum. The Series F preferred stock is non-voting and is convertible at the option of the holder in the common stock of the Company at the conversion price of $0.0005 per share. 5,556 shares were issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.

***Common Stock***

 ****

The Company has authorized 36,200,000,000 shares of common stock at September 30, 2022. 28,612,513,511 and 20,230,157,674 shares were issued and outstanding at September 30, 2022 and December 31, 2021, respectively.

On April 5, 2022, the Company issued 200,000,000 shares of its common stock to Steven Plumb, chief financial officer of the Company, for services rendered. The fair market value of the stock on the date of issuance was $60,000.

On July 5, 2022, the Company issued 720,166,667 shares of its common stock to a note holder upon the conversion of principal of $105, accrued interest of $20,000 and fees of $1,500.

On July 22, 2022, the Company issued 3,600,000,000 shares of its common stock to the chief executive officer of the Company upon the conversion of Series B Preferred Stock accrued dividends in the amount of $486,000.

On August 8, 2022, the Company issued 3,600,000,000 shares of its common stock to a director of the Company as settlement of a payable in the amount of $720,000.

**12. Commitments and Contingencies**

***Contingencies***

The Company may be subject to legal proceedings from time to time as part of its business activities. As of September 30, 2022 and December 31, 2021, the Company was not subject to any threatened or pending legal actions or claims.

***Impact of COVID-19 on the Company***

The global outbreak of COVID-19 has led to severe disruptions in general economic activities, as businesses and governments have taken broad actions to mitigate this public health crisis. Although the Company has not experienced any significant disruption to its business to date, these conditions could significantly negatively impact the Company's business in the future.

The extent to which the COVID-19 outbreak ultimately impacts the Company's business, future revenues, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity and longevity, the actions to curtail the virus and treat its impact (including an effective vaccine), and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, the Company may be at risk of experiencing a significant impact to its business as a result of the global economic impact, including any economic downturn or recession that has occurred or may occur in the future.

Currently, capital markets have been disrupted by the crisis, as a result of which the availability, amount and type of financing available to the Company in the near future is uncertain and cannot be assured and is largely dependent upon evolving market conditions and other factors.

The Company intends to continue to monitor the situation and may adjust its current business plans as more information and guidance become available.

**13. Subsequent Events**

In October 2022, the Company entered into a convertible note agreement in the amount of $33,333 with an existing investor. The net proceeds to the Company were $30,000. The note is due April 3, 2023 and bear interest at 12%.

In October 2022, the Company converted $,9680 in principal and $320 in interest of the note receivable into 6,750,599 shares of the Issuer's common stock. The Company recognized a loss of $1,162 on the sale of the shares.

**FINANCIAL STATEMENTS**

**Metrospaces, Inc.**

**Audited Financial Statements for the Years Months Ended December 31, 2020 and 2019**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#f_001) | F-28 |
| [Consolidated Balance Sheets as of December 31, 2021 and 2020](#f_002) | F-29 |
| [Consolidated Statements of Operations for the years ended December 31, 2021 and 2020](#f_003) | F-30 |
| [Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2021 and 2020](#f_004) | F-31 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020](#f_005) | F-32 |
| [Notes to the Consolidated Financial Statements](#f_006) | F-33 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To: The Board of Directors and Stockholders of Metrospaces, Inc.

**Opinion on the Financial Statements**

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

**Explanatory Paragraph — 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 does not have sufficient cash balance as of December 31, 2021, which raise substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding this matter 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 misstatement of the consolidated 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.

![](form-10_001.gif)

WWC, P.C.

Certified Public Accountants

PCAOB ID No. 1171

We have served as the Company's auditor since 2022.

San Mateo, California

January [ ], 2023

**METROSPACES, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
| ASSETS |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $42833 | $500 |
| Non-current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Investment in marketable securities | 781722 | 210145 |
| &nbsp;&nbsp;&nbsp;Prepayments for furniture and fixtures | 30928 |  |
| &nbsp;&nbsp;&nbsp;Property, net | 638302 |  |
| &nbsp;&nbsp;&nbsp;Investment in partnership | 321709 |  |
| &nbsp;&nbsp;&nbsp;Right of use asset, net |  | 3579 |
| TOTAL ASSETS | $1815494 | $214224 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 620786 | 782850 |
| &nbsp;&nbsp;&nbsp;Notes payable, net | 1367086 |  |
| &nbsp;&nbsp;&nbsp;Notes payable - accrued interest | 989499 | 1043903 |
| &nbsp;&nbsp;&nbsp;Notes payable - related parties | 115451 | 91053 |
| &nbsp;&nbsp;&nbsp;Convertible notes, net | 1481654 | 1834769 |
| &nbsp;&nbsp;&nbsp;Operating lease, current |  | 3303 |
| &nbsp;&nbsp;&nbsp;Accrued dividends – preferred stock | 835143 | 704861 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | 992463 | 10453608 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities | 6402082 | 14915848 |
| TOTAL LIABILITIES | $6402082 | $14915848 |
| Commitments and contingencies |  |  |
| MEZZANINE EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Series B preferred stock, $0.000001 par value, 2,000,000 shares authorized, 1,150,000 and 1,200,000 shares issued and outstanding at December 31, 2021 and 2020, respectively. | 1 | 1 |
|  | $1 | $1 |
| Stockholders' Deficit |  |  |
| &nbsp;&nbsp;&nbsp;Series F Preferred Stock, $0.000001 par value, 400,000 shares authorized, 5,556 and 0 shares issued and outstanding at December 31, 2021 and 2020, respectively. | 6 |  |
| &nbsp;&nbsp;&nbsp;Common Stock, $0.000001 par value, 23,600,000,000 shares authorized 20,030,157,674 and 9,647,210,713 shares issued and outstanding at December 31, 2021 and 2020 respectively. | 20230 | 9346 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 15021189 | 11933924 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (19628014) | (26644895) |
| &nbsp;&nbsp;&nbsp;Total Stockholders' Deficit | (4586589) | (14701625) |
| TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT | $1815494 | $214224 |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Revenue, net of discounts | $— | $— |
| Cost of revenue |  |  |
| &nbsp;&nbsp;&nbsp;**Gross profit** |  |  |
| Operating Expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 1912351 | 283415 |
| **Total operating expenses** | 1912351 | 283415 |
| **Operating Loss** | $(1912351) | $(283415) |
| Other Income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (515758) | (540111) |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of derivative | 9151648 |  |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of debt |  | 2145043 |
| &nbsp;&nbsp;&nbsp;Change in value of marketable securities | 287236 |  |
| &nbsp;&nbsp;&nbsp;Loss on partnership | (47294) |  |
| &nbsp;&nbsp;&nbsp;Interest income | 53400 |  |
| &nbsp;&nbsp;&nbsp;Gain on salary forgiveness |  | 522824 |
| **Total other income (expense)** | 8929232 | 2127756 |
| **Income (loss) before taxes** | 7016881 | 1844341 |
| Income tax benefit |  |  |
| **Net income attributable to common stockholder** | $7016881 | $1844341 |
| Net loss per common share - basic and diluted | $0.00 | $0.00 |
| Weighted average of common shares - basic and diluted | 13323209962 | 9347210713 |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

**For the Years Ended December 31, 2021 and 2020**

---

| | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series B Preferred Stock** | **Series B Preferred Stock** | **Series C Preferred Stock** | **Series C Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Series F Preferred Stock** | **Series F Preferred Stock** | **Common Stock** | **Common Stock** | | **Treasury Stock** | **Treasury Stock** | **Accumulated** | **Accumulated** | | | |
|  | **Shares** | **Amt** | **Shares** | **Amt** | **Shares** | **Amt** | **Shares** | **Amt** | **Shares** | **Amt** | **Shares** | **Amt** | **Paid in**<br>**Capital** | **Shares** | **Amt** | **Deficit** | **Deficit** | **Total** | **Total** |<br>**Mezzanine Equity** |
| **Balance, December 31, 2019** | 1200000 | 1 |  | $0 | 2000 | $— |  | $— | $— | $— | 9347210713 | $9346 | $11933924 | $— | $— | ($| 28489236) | ($| 16545965) | $1 |
| Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1844341 |  | 1844341 |  |
| **Balance, December 31, 2020** | 1200000 | 1 |  | $0 | 2000 | $— |  | $— | $— | $— | 9347210713 | $9346 | $11933924 | $— | $— | ($| 26644895) | ($| 14701624) | $1 |
| Conversion of note payable |  |  |  |  |  |  |  |  |  |  | 9881006221 | 9880 | 2514981 |  |  |  |  |  | 2524861 |  |
| Premium paid upon conversion of notes payable |  |  |  |  |  |  |  |  |  |  |  |  | 350000 |  |  |  |  |  | 350000 |  |
| Conversion of PS Series D | 50000 |  |  |  | (1400) |  |  |  |  |  | 593607407 | 594 | (65) |  |  |  |  |  | 528 |  |
| Issuance of PS Series E |  |  |  |  |  |  |  |  | 5556 | 6 |  |  | 94005 |  |  |  |  |  | 94011 |  |
| Stock based compensation |  |  |  |  |  |  |  |  |  |  | 208333333 | 410 | 128344 |  |  |  |  |  | 128754 |  |
| Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7016881 |  | 7016881 |  |
| **Balance, December 31, 2021** | 1150000 | 1 |  | $0 | $600 |  | $— | $— | 5556 | $6 | 20030157674 | $20230 | $15021189 | $— | $— | ($| 19628014) | ($| 4586589) | $1 |

---

**METROSPACES, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | Years Ended | Years Ended |
|  | December 31, | December 31, |
|  | **2021** | **2020** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net Income (Loss) | $7016881 | $1844341 |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| Stock-based compensation | 128755 |  |
| Sales deposits written off | (1501) |  |
| Depreciation | 25886 | 5946 |
| Loss on partnership | 47294 |  |
| Change in value of marketable securities | (468177) |  |
| (Gain) loss on change in fair value of derivative | (9461145) | (190353) |
| (Gain) loss on extinguishment of debt |  | (1656195) |
| Changes in operating assets and liabilities: |  |  |
| (Increase) decrease in operating assets: |  |  |
| Accrued interest income | (53400) |  |
| Accounts payable and accrued expenses | 950156 | (39800) |
| Net Cash Used in Operating Activities | $(1815251) | $(36061) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Prepayments for furniture and fixtures | (30928) |  |
| Investment in convertibles notes | (50000) |  |
| Investment in real estate partnership | (369003) |  |
| Purchase of property | (660609) |  |
| Net Cash provided by Investing Activities | $(1110540) | $— |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Proceeds from issuance of notes payable | 1367086 |  |
| Proceeds from issuance of note to related party | 24398 | 36561 |
| Proceeds from issuance of preferred stock series F | 94011 |  |
| Premium paid upon conversion of convertible notes | 350000 |  |
| Proceeds from issuance of convertible notes | 1132629 |  |
| Net Cash Provided by Financing Activities | $2968124 | $36561 |
| Net increase (decrease) in cash and cash equivalents | 42333 | 500 |
| Cash and cash equivalents, beginning of period | 500 |  |
| Cash and cash equivalents, end of period | $42833 | $500 |
| Supplemental cash flow information |  |  |
| Cash paid for interest |  |  |
| Cash paid for taxes |  |  |
| Non-cash transactions: |  |  |
| Conversion of convertible debt into common stock | $2525389 | $— |

---

See accompanying notes to financial statements.

**METROSPACES, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Years Ended December 31, 2021 and 2020**

**1. Organization and Basis of Presentation**

***Organization***

MetroSpaces, Inc. ("the Company") was incorporated in the State of Delaware on December 11, 2007. On May 18, 2021, the Company formed MetroHouse, Inc., a wholly owned subsidiary, for the purpose of investing in real estate. On February 15, 2022, the Company formed Metrohouse LLC, a wholly owned subsidiary, for the purpose of investing in real estate. On July 26, 2022 the Company formed Abode Stays, Inc., a wholly owned subsidiary, for the purpose of creating a property rental company.

On August 9, 2021, the Company formed Metrospaces Partners, LLC, a wholly owned subsidiary, for the purpose of investing in Metro Houston Partners I, LLC. Metrospaces Partners, LLC owns 51% of the membership units of Metro Houston Partners I, LLC, but lacks control over the affairs of Metro Houston Partners I, LLC, and, accordingly, this entity is an unconsolidated subsidiary that is accounted for using the equity method of accounting for investments.

The Company maintains its principal executive offices in New York, New York, United States.

The Company's activities are subject to significant risks and uncertainties, including the need for additional capital, as described below. The Company does not have positive cash flows from operations, and is dependent on periodic infusions of debt and equity capital to fund its operating requirements.

***Business Operations***

The Company is a Prop-tech company focusing on increasing efficiencies in the real estate and real estate market by applying cutting-edge IT solutions.

June 2017, the Company acquired 51% of the membership units of Etelix.com USA, LLC (Etelix) in exchange for a $2 million promissory note. Etelix is a Miami-based carrier-grade telco provider that ran a small data center. In June 2018, Etelix was merged into what is today, IQSTel, Inc. and as a consequence, the Company's ownership dropped below 51% and therefore Etelix was deconsolidated. In June 2020, the Company exchanged the promissory note for shares in IQSTel, Inc, at which point the assets were held as an investment in marketable securities.

***Going Concern***

The Company's financial statements have been presented on the basis that the Company is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company has experienced recurring net losses from operations and negative operating cash flows since inception. During the year ended December 31, 2021, the Company recognized net income of $7,016,881, utilized cash in operating activities of $1,815,251, and had shareholders' deficiency of $4,586,589 as of December 31, 2021. The Company has financed its working capital requirements since inception through the sale of marketable securities and from borrowings.

At December 31, 2021, the Company had cash of $42,833. The Company estimates that it has cash and marketable securities to sustain operations through March 2023, and after that a significant amount of capital will be necessary over a sustained period of time to advance the development of the Company's business to the point at which it can become commercially viable and self-sustaining. However, there can be no assurances that the Company will be successful in this regard.

As a result, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern within one year of the date that the accompanying consolidated financial statements are issued. The ability of the Company to continue as a going concern is dependent upon the Company's ability to raise additional funds and implement its business plan, and to ultimately achieve sustainable operating revenues and profitability. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The development and expansion of the Company's business in 2022 and thereafter will be dependent on many factors, including the capital resources available to the Company. No assurances can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company or adequate to fund the development and expansion of the Company's business to a level that is commercially viable and self-sustaining. There is also significant uncertainty as to the affect that the coronavirus pandemic may have on the availability, amount and type of financing in the future.

If cash resources are insufficient to satisfy the Company's ongoing cash requirements, the Company would be required to scale back or discontinue its operations, obtain funds, if available, although there can be no certainty, through strategic alliances that may require the Company to relinquish rights to its technology, or to discontinue its operations entirely.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation***

 ****

The Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP")

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience, and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity instruments issued for financing and services, and the realization of deferred tax assets.

***Cash***

The Company maintains its cash balances with financial institutions with high credit ratings. The Company has not experienced any losses to date resulting from this practice. The Company did not have deposits in excess of the federal deposit insurance threshold.

***Equity Method Investment***

 ****

Metro Houston Partners I, LLC has $862,285 of paid in capital of which $419,000 was invested by the Company through its subsidiary Metrospaces Partners, LLC. Metrospaces Partners, LLC owns a commercial building in the Houston metropolitan area that generates rental income.

***Fair Value of Financial Instruments***

The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required.

Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company can access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives.

Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges.

Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently traded non-exchange-based derivatives and commingled investment funds and are measured using present value pricing models.

The Company will determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company will perform an analysis of the assets and liabilities at each reporting period end.

The carrying value of financial instruments (consisting of cash and accounts payable and accrued expenses) is representative of their respective fair values due to the short-term nature of those instruments.

The following table presents information about the Company's assets and liabilities measured at fair value as of December 31, 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 | Total |
| *Assets* |  |  |  |  |
| Investment in equity securities | $678322 | $— | $— | $678322 |
| Investment in convertible notes |  | 103400 |  | 103400 |
|  | $678322 | $103400 | $— | $781722 |
| *Liabilities* |  |  |  |  |
| Notes payable – net |  |  | 1367086 | 1367086 |
| Notes payable – related party |  |  | 115451 | 115451 |
| Convertible notes |  |  | 1481654 | 1481654 |
| Derivative liability | $— | $— | $992463 | $992463 |

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The following table presents information about the Company's assets and liabilities measured at fair value as of December 31, 2020:

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| | | | | |
|:---|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 | Total |
| *Assets* |  |  |  |  |
| Investment in equity securities | $210145 | $— | $— | $210145 |
| Investment in convertible notes |  |  |  |  |
|  | $210145 | $— | $— | $210145 |
| *Liabilities* |  |  |  |  |
| Notes payable – net |  |  |  |  |
| Notes payable – related party |  |  | 91053 | 91053 |
| Convertible notes |  |  | 1834769 | 1834769 |
| Derivative liability | $— | $— | $2374228 | $2374228 |

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***Property and Equipment***

Property and equipment are recorded at cost. Major improvements are capitalized, while maintenance and repairs that do not improve or extend the useful life of the respective assets are charged to expense as incurred. Gains and losses from disposition of property and equipment are included in income and expense when realized. Depreciation of property and equipment is provided using the straight-line method over an estimated useful life of three years.

The Company recognizes depreciation of property and equipment in general and administrative costs in the Company's consolidated statement of operations.

***Leases***

The Company accounts for leases in accordance with Accounting Standards Update 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease initially measured at the present value of the lease payments. ASU 2016-02 requires recognition in the statement of operations of a single lease cost that is calculated as a total cost of the lease allocated over the lease term, generally on a straight-line basis. ASU 2016-02 excludes short-term operating leases with a lease term of 12 months or less at the commencement date, and that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

***Long-Lived Assets***

The Company reviews long-lived assets, consisting of property and equipment and intellectual property, for impairment at each fiscal year end or when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The Company has not historically recorded any impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. As of December 31, 2021 and 2020, the Company had not deemed any long-lived assets as impaired and was not aware of the existence of any indicators of impairment at such dates.

***Convertible Instruments***

 ****

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815.

***Revenue Recognition***

The Company recognizes revenue in accordance with ASC Topic 606, *Revenue From Contracts With Customers*. ASC Topic 606 requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Revenue is recognized based on the following five step model:

● Identification of the contract with a customer

● Identification of the performance obligations in the contract

● Determination of the transaction price

● Allocation of the transaction price to the performance obligations in the contract

● Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company currently has no revenues.

 ****

***Stock-Based Compensation***

The Company issues common stock and intends to issue stock options to officers, directors and consultants for services rendered. Options will vest and expire according to terms established at the issuance date of each grant. Stock grants, which are generally time vested, will be measured at the grant date fair value and charged to operations ratably over the vesting period.

The fair value of stock options granted as stock-based compensation will be determined utilizing the Black-Scholes option-pricing model, and can be affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock. Estimated volatility will be based on the historical volatility of the Company's common stock over an appropriate calculation period, or, if not available, by reference to the volatility of a representative sample of comparable public companies. The risk-free interest rate will be based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of the common stock will be determined by reference to the quoted market price of the Company's common stock on the grant date, or, if not available, by reference to an appropriate alternative valuation methodology.

The Company will recognize the fair value of stock-based compensation awards in general and administrative costs or in software development costs, as appropriate, in the Company's consolidated statements of operations. The Company will issue new shares of common stock to satisfy stock option exercises.

***Comprehensive Income (Loss)***

Comprehensive income or loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Components of comprehensive income or loss, including net income or loss, unrealized gains or losses on available-for-sale securities, unrealized gains or losses on other financial investments, unrealized gains or losses on pension and retirement benefit plans, and foreign currency translation adjustments, are reported in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss) are reported net of any related tax effect to arrive at comprehensive income (loss).

***Income Taxes***

The Company accounts for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities.

The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Alternatively, should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made.

As the Company's net operating losses in the respective jurisdictions in which it operates have yet to be utilized, all previous tax years remain open to examination by the taxing authorities in which the Company currently operates. The Company had no unrecognized tax benefits as of December 31, 2021 and 2020 and does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only if it is "more-likely-than-not" to be sustained by the taxing authority as of the reporting date. If the tax position is not considered "more-likely-than-not" to be sustained, then no benefits of the position are recognized. As of December 31, 2021 and 2020, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense.

***Earnings (Loss) Per Share***

The Company's computation of earnings (loss) per share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods.

***Derivatives and Hedging Activities.***

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Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

***Concentration of Risk***

The Company may periodically contract with consultants and vendors to provide services related to the Company's business development activities. Agreements for these services may be for a specific time period or for a specific project or task. The Company did not have any agreements at December 31, 2021 or 2020.

***Recent Accounting Pronouncements***

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes how entities measure credit losses for most financial assets, including accounts and notes receivables. ASU 2016-13 will replace the current "incurred loss" approach with an "expected loss" model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the provisions of ASU 2016-13 as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which ASU 2016-13 is effective. As small business filer, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. Management is currently in the process of assessing the impact of adopting ASU-2016-13 on the Company's financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06). ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. Upon adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. ASU 2020-06 will be effective January 1, 2024, and a cumulative-effect adjustment to the opening balance of retained earnings is required upon adoption. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company's previously issued consolidated financial statement presentation or disclosures.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements and related disclosures.

**5. Investment in Convertible Notes**

In May 2021, the Company entered into a securities purchase agreement with a publicly traded company to purchase a convertible note in the amount of $50,000 issued by the Issuer. The note bears interest at 5% and is convertible into the issuer's common stock at a 65% discount from the market price of the Issuer's common stock. The note was due May 4, 2022.

In May 2022, the Company converted $8,370 of principal and $2,630 of interest of the note receivable into 1,364,764 shares of the Issuer's common stock. The Company recognized a gain of $7,430 upon the sale of the shares.

In August 2022, the Company converted $12,000 in interest of the note receivable into 1,758,242 shares of the Issuer's common stock. The Company recognized a loss of $570 upon the sale of the common stock.

In October 2022, the Company converted $,9680 in principal and $320 in interest of the note receivable into 6,750,599 shares of the Issuer's common stock. The Company recognized a loss of $1,162 on the sale of the shares.

**6. Property**

In November 2021, the Company purchased two condominium units in Indianapolis, IN for $439,800. The Company made the purchase by procuring a mortgage loan in the amount of $307,000 and paid the balance in cash. The property is being depreciated using the straight-line method assuming a useful life of thirty years. The Company recorded depreciation expense of $1,498 during the year ended December 31, 2021. The net book value of the units was $438,302 at December 31, 2021.

The Company owns three units in a real estate development in the Dominican Republic with a book value of $200,000 at December 31, 2021. The property is held for resale.

**7. Investment in Partnership**

On August 9, 2021, the Company invested $419,000 in MetroHouston Partners I, LLC (MetroHouston Partners) via its wholly owned subsidiary, Metrospaces Partners, LLC. On August 9, 2021, MetroHouston acquired a commercial building in Houston, Texas for $3,850,000 in exchange for cash of $962,500 and a note payable with a commercial bank in the amount of $2,887,500. The note bears interest at 3.1% and is due on August 10, 2024 with monthly payments of $13,912 starting with the fifth month after closing. The note is secured by the office building.

The Company owns 51% of the equity in MetroHouston Partners, however since a vote of 2/3 of the members equity is required to make changes in the management of the partnership, the Company does not consolidate MetroHouston Partners. The Company's investment in MetroHouston Partners is accounted for using the equity method.

Metro Houston Partners I, LLC has $862,285 of paid in capital of which $419,000 was invested by the Company through its subsidiary Metrospaces Partners, LLC.

There are no intercompany transactions between Metrospaces Partners, LLC and the Company. The Company's investment in partnership is summarized below:

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| | |
|:---|:---|
| Initial investment | $419000 |
| Distributions | (49997) |
| Company's share of net loss | (47294) |
| Carrying value at December 31, 2021 | $321709 |

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**8. Investment in marketable securities**

June 2017, the Company acquired 51% of the membership units of Etelix.com USA, LLC (Etelix) in exchange for a $2 million promissory note. Etelix is a Miami-based carrier-grade telco provider that ran a small data center. In June 2018, Etelix was merged into what is today, IQSTel, Inc. and as a consequence, the Company's ownership dropped below 51% and therefore Etelix was deconsolidated. In June 2020, the Company exchanged the promissory note for 1,050,725 shares in IQSTel, Inc, with a fair maket value of $42,696. In February 2021, the Company sold 321,374 shares for net proceeds of $461,453, leaving a balance of 729,378 shares. The Company recognized a gain on the sale of the shares of $460,044. As of December 31, 2021 and 2020, the fair market value of the shares was $678,322 and $210,145, respectively.

The remaining shares were sold in June 2022. The Company recognized a gain of $167,487 upon the sale of the securities.

**9. Note Payable – Related Party** 

The officers of the Company have advanced funds to the Company from time to time. These advances are non-interest bearing, unsecured, and payable upon demand. The balance of the notes payable – related party was $115,451 and $91,053 at December 31, 2021 and 2020, respectively.

In March 2021, the Company entered into a securities purchase agreement with an affiliate of the chief executive officer of the Company to purchase a note in the amount of $390,000 bearing interest at 18% with a maturity date of September 25, 2021. The balance on the note was $0 on December 31, 2021.

**10. Convertibles Note Payable**

Convertible notes payable consist of the following at December 31, 2021 and 2020:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Conversion Terms** | **2021** | **2020** |
| &nbsp;&nbsp;2/15/2015 | &nbsp;&nbsp;2/16/2016 | &nbsp;&nbsp;58% of the lowest closing bid price during the 15 trading days including the day of conversion | $4949 | $4949 |
| &nbsp;&nbsp;2/26/2015 | &nbsp;&nbsp;2/27/2016 | &nbsp;&nbsp;58% of the lowest closing bid price during the 15 trading days including the day of conversion | 58 | 58 |
| &nbsp;&nbsp;2/6/2015 | &nbsp;&nbsp;2/6/2016 | &nbsp;&nbsp;30% of lowest trading price in 30 trading days ending with last day prior to conversion. | 65105 | 65105 |
| &nbsp;&nbsp;7/28/2015 | &nbsp;&nbsp;7/28/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days | 16000 | 16000 |
| &nbsp;&nbsp;8/11/2015 | &nbsp;&nbsp;8/11/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 8000 |
| &nbsp;&nbsp;8/25/2015 | &nbsp;&nbsp;8/25/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 17600 |
| &nbsp;&nbsp;9/24/2015 | &nbsp;&nbsp;9/24/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 6000 |
| &nbsp;&nbsp;10/23/2015 | &nbsp;&nbsp;10/23/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days | 12000 | 12000 |
| &nbsp;&nbsp;11/3/2015 | &nbsp;&nbsp;11/3/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 4500 |
| &nbsp;&nbsp;11/19/2015 | &nbsp;&nbsp;11/19/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 13000 |
| &nbsp;&nbsp;11/24/2015 | &nbsp;&nbsp;11/24/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 2000 |
| &nbsp;&nbsp;3/23/2015 | &nbsp;&nbsp;3/22/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 29000 |
| &nbsp;&nbsp;4/8/2015 | &nbsp;&nbsp;4/7/2016 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 37000 |
| &nbsp;&nbsp;4/17/2015 | &nbsp;&nbsp;4/16/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 21936 |
| &nbsp;&nbsp;4/29/2015 | &nbsp;&nbsp;4/28/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 9800 |
| &nbsp;&nbsp;7/28/2015 | &nbsp;&nbsp;1/28/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 30 trading days ending with the day prior to conversion. | 25000 | 25000 |
| &nbsp;&nbsp;2/2/2016 | &nbsp;&nbsp;2/2/2017 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 42193 | 57193 |
| &nbsp;&nbsp;2/19/2016 | &nbsp;&nbsp;8/19/2016 | &nbsp;&nbsp;40% of lowest trading price in 30 trading days ending with last day prior to conversion. |  | 30000 |
| &nbsp;&nbsp;3/3/2016 | &nbsp;&nbsp;3/3/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 16000 |
| &nbsp;&nbsp;3/3/2016 | &nbsp;&nbsp;3/3/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 21000 |
| &nbsp;&nbsp;1/27/2016 | &nbsp;&nbsp;1/27/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 4440 |
| &nbsp;&nbsp;3/3/2016 | &nbsp;&nbsp;3/3/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 4000 |
| &nbsp;&nbsp;3/15/2016 | &nbsp;&nbsp;3/15/2017 | &nbsp;&nbsp;2.5% of the average of the daily closing price for 3 consecutive trading days |  | 16735 |
| &nbsp;&nbsp;4/28/2017 | &nbsp;&nbsp;10/28/2017 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 60000 | 31000 |
| &nbsp;&nbsp;6/16/2017 | &nbsp;&nbsp;6/16/2018 | &nbsp;&nbsp;40% of lowest trading price in 30 trading days ending with last day prior to conversion. | 9084 | 9084 |
| &nbsp;&nbsp;8/4/2017 | &nbsp;&nbsp;2/4/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 66000 |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;10/12/2017 | &nbsp;&nbsp;4/12/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 20000 |
| &nbsp;&nbsp;12/1/2017 | &nbsp;&nbsp;6/1/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 68200 | 68200 |
| &nbsp;&nbsp;2/26/2018 | &nbsp;&nbsp;8/26/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 280167 | 280167 |
| &nbsp;&nbsp;4/4/2018 | &nbsp;&nbsp;10/4/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 163333 | 163333 |
| &nbsp;&nbsp;3/6/2018 | &nbsp;&nbsp;3/6/2019 | &nbsp;&nbsp;60% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 35000 | 35000 |
| &nbsp;&nbsp;3/20/2018 | &nbsp;&nbsp;10/31/2018 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 30000 | 40500 |
| &nbsp;&nbsp;2/26/2018 | &nbsp;&nbsp;2/26/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 38850 |
| &nbsp;&nbsp;6/4/2018 | &nbsp;&nbsp;6/4/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 36750 |
| &nbsp;&nbsp;6/18/2018 | &nbsp;&nbsp;2/8/2019 | &nbsp;&nbsp;weekly payments of $50,000 starting 6/22/18 or conversion at 90% of lowest trading price for 5 days prior to date of conversion |  | 1710000 |
| &nbsp;&nbsp;7/13/2018 | &nbsp;&nbsp;12/12/2018 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 72222 | 72222 |
| &nbsp;&nbsp;8/31/2018 | &nbsp;&nbsp;8/31/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 33600 |
| &nbsp;&nbsp;9/6/2018 | &nbsp;&nbsp;3/6/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion | 11000 | 11000 |
| &nbsp;&nbsp;12/18/2018 | &nbsp;&nbsp;6/18/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 33333 |
| &nbsp;&nbsp;11/30/2018 | &nbsp;&nbsp;11/30/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 33333 |
| &nbsp;&nbsp;12/12/2018 | &nbsp;&nbsp;6/12/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 33333 |
| &nbsp;&nbsp;12/27/2018 | &nbsp;&nbsp;6/27/2019 | &nbsp;&nbsp;60% of the lowest sale price during the 30 trading days prior to conversion |  | 38889 |
| &nbsp;&nbsp;10/4/2018 | &nbsp;&nbsp;10/4/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 40000 | 40000 |
| &nbsp;&nbsp;1/29/2015 | &nbsp;&nbsp;7/31/2015 | &nbsp;&nbsp;50% of the lowest trading price during the 30 trading days ending with the day prior to conversion. | 15500 | 15500 |
| &nbsp;&nbsp;6/3/2016 | &nbsp;&nbsp;6/3/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 15000 | 15000 |
| &nbsp;&nbsp;5/11/2016 | &nbsp;&nbsp;5/11/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 8500 | 8500 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 69000 | 69000 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 2000 | 2000 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 4000 | 4000 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 4000 | 4000 |
| &nbsp;&nbsp;5/11/2016 | &nbsp;&nbsp;5/11/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 6500 | 6500 |
| &nbsp;&nbsp;1/6/2016 | &nbsp;&nbsp;1/6/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 9000 |
| &nbsp;&nbsp;5/11/2016 | &nbsp;&nbsp;5/11/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 9440 |
| &nbsp;&nbsp;8/1/2016 | &nbsp;&nbsp;8/1/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 1000 | 1000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;10/4/2019 | &nbsp;&nbsp;10/4/2020 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 14000 | 14000 |
| &nbsp;&nbsp;1/15/2019 | &nbsp;&nbsp;1/15/2020 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 33600 | 33600 |
| &nbsp;&nbsp;3/7/2019 | &nbsp;&nbsp;9/4/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. |  | 11111 |
| &nbsp;&nbsp;8/21/2019 | &nbsp;&nbsp;12/21/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 13333 | 13333 |
| &nbsp;&nbsp;4/8/2019 | &nbsp;&nbsp;10/8/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 22222 | 22222 |
| &nbsp;&nbsp;1/3/2019 | &nbsp;&nbsp;7/3/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 33333 | 33333 |
| &nbsp;&nbsp;1/10/2019 | &nbsp;&nbsp;7/10/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 3889 | 3889 |
| &nbsp;&nbsp;1/17/2019 | &nbsp;&nbsp;7/17/2019 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 50000 | 50000 |
| &nbsp;&nbsp;3/5/2021 | &nbsp;&nbsp;3/5/2022 | &nbsp;&nbsp;55% of the lowest Trading Price for the Common Stock during the twenty (20) <br>Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. | 22173 |  |
| &nbsp;&nbsp;6/11/2021 | &nbsp;&nbsp;6/11/2022 | &nbsp;&nbsp;55% of the lowest Trading Price for the Common Stock during the twenty (20) <br>Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. | 55000 |  |
| &nbsp;&nbsp;6/24/2021 | &nbsp;&nbsp;6/24/2022 | &nbsp;&nbsp;55% of the lowest Trading Price for the Common Stock during the twenty (20) <br>Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. | 55000 |  |
| &nbsp;&nbsp;10/27/2021 | &nbsp;&nbsp;10/27/2022 | &nbsp;&nbsp;55% of the lowest Trading Price for the Common Stock during the twenty (20) <br>Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. | 55000 |  |
| &nbsp;&nbsp;9/4/2019 | &nbsp;&nbsp;9/4/2020 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 14000 |  |
| &nbsp;&nbsp;5/27/2015 | &nbsp;&nbsp;11/26/2015 | &nbsp;&nbsp;58% of the lowest closing bid price during the 15 trading days including the day of conversion | 35000 |  |
| &nbsp;&nbsp;5/9/2016 | &nbsp;&nbsp;5/9/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 27396 |  |
| &nbsp;&nbsp;5/9/2016 | &nbsp;&nbsp;5/9/2017 | &nbsp;&nbsp;50% of the lowest trading price during the 20 trading days ending with the day prior to conversion. | 9671 |  |
|  |  | &nbsp;&nbsp;Total | 1487928 | 1942087 |
|  |  | &nbsp;&nbsp;Less unamortized discount | 6274 | 107318 |
|  |  | &nbsp;&nbsp;Net | $1481654 | $1834769 |

---

**11. Notes payable**

Notes payable at December 31, 2021 and 2020 consists of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Date | Due Date | Terms | 2021 | 2020 |
| 3/31/2021 | 3/31/2022 | Bears interest at 18% per annum with a default interest rate of 24% | $150000 | $— |
| 4/8/2021 | 4/8/2022 | Bears interest at 18% per annum with a default interest rate of 24% | 10000 |  |
| 5/4/2021 | 5/4/2022 | Bears interest at 18% per annum with a default interest rate of 24% | 20000 |  |
| 5/6/2021 | 5/6/2022 | Bears interest at 18% per annum with a default interest rate of 24% | 50000 |  |
| 8/31/2021 | 8/30/2022 | Bears interest at 18% per annum with a default interest rate of 24% | 500000 |  |
| 9/10/2021 | 3/10/2022 | Bears interest at 18% per annum | 68421 |  |
| 9/24/2021 | 3/24/2022 | Bears interest at 18% per annum | 52632 |  |
| 11/4/2021 | 5/3/2022 | Bears interest at 18% per annum | 168421 |  |
| 11/10/21 | 5/09/22 | Bears interest at 18% per annum | 307000 |  |
| 10/22/2021 | 4/21/2022 | Bears interest at 18% per annum | 52632 |  |
|  | Total |  | 1379105 |  |
|  | Less discount |  | 12019 |  |
|  | Notes payable, net |  | $1367086 | $— |

---

**12. Leases** 

***Short-Term Operating Lease***

 ****

The Company leases office facilities in New York, New York on a month-to-month basis at a cost of $750 per month.

Aggregate payments under this operating lease charged to general and administrative expenses in the statement of operations were $9,000 and $9,000 for the years ended December 31, 2021 and 2020, respectively.

***Long-Term Operating Lease***

The Company's leases a vehicle for the use of the Company's chief executive officer.

Operating lease right-of-use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term, and right-of-use lease liabilities represent the Company's obligation to make lease payments arising from the lease. Generally, the implicit rate of interest, equivalent to a discount rate, in lease arrangements is not readily determinable and the prevailing commercial property mortgage rate is utilized in determining the present value of lease payments.

The monthly cash payment for this operating lease was approximately $2,300 per month. The implied borrowing rate on the lease was 4.82% and the term of the lease was three years, beginning on August 14, 2018 and ending on August 12, 2021. As of December 31, 2021 the right of use asset and the remaining lease obligation was $0. As of December 31, 2020, the right of use asset balance was $3,579 and the lease obligation balance was $3,303.

**13. Derivative Liabilities**

The Company has issued convertible note agreements with a variable conversion feature that gives rise to an embedded derivative instrument (see Note 10). The derivative feature has been valued using a binomial lattice-based option valuation model using holding period assumptions developed from the Company's business plan and management assumptions and expected volatility from the Company's stock. Increases or decreases in the Company's share price, the volatility of the share price, changes in interest rates in general, and the passage of time will all impact the value of the derivative instrument. The Company re-values the derivative instrument at the end of each reporting period and any changes are reflected as changes in derivative liabilities in the consolidated statements of operations. The assumptions used during the year ending December 31, 2021 are as follows:

---

| | |
|:---|:---|
|  | December 31, 2021 |
| Market value of common stock on measurement date (1) | $0.0001 |
| Adjusted conversion price (2) | $0.00018 – $0.00018 |
| Risk free interest rate (3) | 3.25% |
| Life of the note in months | 0 months |
| Expected volatility (4) | 0.052% |
| Expected dividend yield (5) |  |

---

(1) The market value of common stock is based on closing market price as of initial valuation date and the period end re-measurement.

(2) The adjusted conversion price is calculated based on conversion terms described in the note agreement.

(3) The risk-free interest rate was determined by management using the 2-year Treasury Bill as of the respective Offering or measurement date.

(4) The volatility factor was estimated by management using the historical volatilities of the Company's stock.

(5) Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

During the year ending December 31, 2021 a $9,151,648 gain on the change in value of the derivative liability was recorded, resulting in a net change in derivative liability of $9,151,648. The valuation of the derivative liability was $992,463 and $10,453,608 on December 31, 2021 and 2020, respectively. During the years ended December 31, 2021 and 2020, the Company recognized derivative gain or (loss) of $9,151,648 and $0, respectively, related to the change in fair value.

**14. Related Party Transactions**

***Salary and Fees to Directors, Consultants and Professionals***

During the years ended December 31, 2021 and 2020, the Company incurred salary and fees to officers, directors, consultants and professionals in the amount of $51,927 and $148,549, respectively, as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2021** | **2020** |
| Daniel Silva | $— | $— |
| Oscar Brito | 51927 | 148549 |
| Total | $51927 | $148549 |

---

 ****

As of December 31, 2021 and 2020, $115,451 and $91,053 was due to officers. The advances were unsecured, non-interest bearing with no formal terms of repayment.

In May 2020, the Company entered into a separation agreement with Mr. Silva whereby he agreed to forego accrued salary in the amount of $522,824. This gain was recognized as other income during the year ended December 31, 2020.

**15. Mezzanine Equity**

Mezzanine equity consists of 1,200,000 shares of series B preferred stock with redeemable features that allow the investors to request repayment of their investment. Series B preferred stock is senior to the Company's common stock and all other classes of preferred stock. The shares were issued on February 10, 2015. The liquidation value of the Series B preferred stock is $1.00 per share. Shares are redeemable at the option of the Company from time to time after the closing price of the Company's common stock during any period of twenty consecutive trading days equals or exceeds $0.0014 per share. The shares became redeemable on March 12, 2015. Dividends accrue at the rate of $0.021875 per share on a quarterly basis. The Company recorded interest expense related to the dividends of $105,000 during the years ending December 31, 2021 and 2020, respectively. Accrued dividends were $615,417 and $510,417 at December 31, 2020 and 2019, respectively.

On December 2, 2021, 50,000 shares of series B preferred stock was converted into 370,370,370 shares of common stock.

**16. Stockholders' Equity**

***Preferred Stock***

The Company has authorized a total of 10,000,000 shares of preferred stock as of December 31, 2020. The following preferred shares have been designated by the Company as of December 31, 2021 and 2020:

<u>Series A</u>

Series A preferred was designated on December 11, 2007. 7,499,995 shares are designated with a par value of $0.001 per share. None have been issued.

<u>Series C</u>

Series C preferred was designated on May 29, 2015. 100,000 shares are designated with a par value of $0.000001. None have been issued. Holders of the Series C preferred stock are entitled to dividends at the quarterly rate of $2.1875 per share. Dividends are fully cumulative, accruing, without interest, from the date of original issuance through the date of redemption or conversion. The liquidation value of the Series C preferred stock is $100.00. Each share of Series C preferred stock is entitled to a number of votes equal to the number of shares held, divided by the current market price on the record date of the Company's common stock. 45,354 shares were issued and outstanding at December 31, 2021 and 2020.

<u>Series D</u>

Series D preferred stock was designated on July 13, 2015. 400,000 shares were designated with a par value of $0.000001. Holders of the Series D preferred stock are entitled to dividends at the quarterly rate of $2.1875 per share. Dividends are fully cumulative, accruing, without interest, from the date of original issuance through the date of redemption or conversion. The liquidation value of the Series D preferred stock is $100.00. Each share of Series D preferred stock is entitled to a number of votes equal to the number of shares held, divided by the current market price on the record date of the Company's common stock.

On September 21, 2021, 700 shares of series D preferred stock was converted into 158,422,222 shares of common stock.

2,000 and 1,300 shares of series D preferred stock were issued and outstanding at December 31, 2021 and 2020, respectively.

<u>Series E</u>

Series E preferred stock was designated on July 16, 2021. Five shares were authorized. Series E preferred stock has the right to take action by written consent or vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock of the Company such that the holders of the outstanding shares of Series E preferred stock shall always constitute 80% of the voting rights of the Company. The shares have no conversion, liquidation or dividend preferences.

On July 16, 2021, five shares of Series E preferred were issued to the chief executive officer of the Company in exchange for $25,000 of accrued compensation.

Five shares of Series E preferred were issued and outstanding as of December 31, 2021. None were outstanding as of December 31, 2020.

<u>Series F</u>

Series F preferred stock was designated in November 2021. Each share of Series F preferred stock is entitled to 9% cumulative dividends, payable quarterly, payable in cash or preferred shares. The Series F preferred shares are non voting. Series F preferred stock is convertible into the common stock of the Company by dividing the stated value of $100 of each share of Series F preferred stock by the conversion price of $0.0005.

In November 2021, 5,556 shares were issued for gross proceeds to $100,008.

5,556 shares of Series F preferred stock are issued and outstanding as of December 31, 2021. None were outstanding as of December 31, 2020.

<u>Common Stock</u>

The Company has authorized 23,600,000,000 shares of common stock at December 31. 2021. 20,230,157,674 and 9,347,210,713 shares were issued and outstanding at December 31, 2021 and 2020, respectively.

In September 2021, a consultant and director was issued 200,000,000 shares of common stock as compensation, valued at $159,800 on the date of grant.

In August 2021, a consultant was issued 208,833,333 shares of common stock in exchange for $50,000 in services.

In December 2021, the Company issued 200,000,000 shares of common stock to a consultant, having a market value of $60,000.

During the year ended December 31, 2021, the Company issued 4,250,958,312 shares of common stock upon the conversion of $616,423 in principal and $806,033 in accrued interest on convertible notes payable.

**17. Income Taxes**

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets as of December 31, 2021 and 2020 are summarized below.

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2021** | **2020** |
| Net operating loss carryforwards | $7354000 | $5800000 |
| Valuation allowance | (7354000) | (5800000) |
| Net deferred tax assets | $— | $— |

---

In assessing the potential realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2021 and 2020, management was unable to determine if it is more likely than not that the Company's deferred tax assets will be realized and has therefore recorded an appropriate valuation allowance against deferred tax assets at such dates.

No U.S. federal tax provision has been provided for the Company for the years ended December 31, 2021 and 2020 due to the losses and loss carryforwards incurred during such periods.

The reconciliation below presents the difference between the income tax rate computed by applying the U.S. federal statutory rate and the effective tax rate for the years ended December 31, 2021 and 2020.

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2020** | **2019** |
| U. S. federal statutory tax rate | (21.0)% | (21.0)% |
| Change in valuation allowance | 21.0% | 21.0% |
| Effective tax rate | 0.0% | 0.0% |

---

At December 31, 2021, the Company has available net operating loss carryforwards for U.S. federal corporate income tax purposes of approximately $7,354,000 and $5,834,000, respectively. U.S. federal net operating losses, if not utilized earlier, expire through 2040.

**18. Commitments and Contingencies**

***Contingencies***

The Company may be subject to legal proceedings from time to time as part of its business activities. As of December 31, 2021 and 2020, the Company was not subject to any threatened or pending legal actions or claims.

***Impact of COVID-19 on the Company***

The global outbreak of COVID-19 has led to severe disruptions in general economic activities, as businesses and governments have taken broad actions to mitigate this public health crisis. Although the Company has not experienced any significant disruption to its business to date, these conditions could significantly negatively impact the Company's business in the future.

The extent to which the COVID-19 outbreak ultimately impacts the Company's business, future revenues, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity and longevity, the actions to curtail the virus and treat its impact (including an effective vaccine), and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, the Company may be at risk of experiencing a significant impact to its business as a result of the global economic impact, including any economic downturn or recession that has occurred or may occur in the future.

Currently, capital markets have been disrupted by the crisis, as a result of which the availability, amount and type of financing available to the Company in the near future is uncertain and cannot be assured and is largely dependent upon evolving market conditions and other factors.

The Company intends to continue to monitor the situation and may adjust its current business plans as more information and guidance become available.

**19. Subsequent Events**

On February 8, 2022, the Company purchased 10 condominium units in Indianapolis, IN for $3,249,000. The acquisition was financed with mortgages totaling $2,214,500, bearing interest at 10% and due in one year, and cash.

On March 4, 2022, the Company purchased 6 condominium units in Indianapolis, IN for $835,000. The acquisition was financed with mortgages totaling $626,250, bearing interest at 10% and due in one year, and cash.

On March 15, 2022, the Company purchased 4 condominium units in Indianapolis, IN for $560,000. The acquisition was financed with mortgages totaling $416,869, and cash.

In February 2022, the Company borrowed $63,000 from an existing investor. The net proceeds to the Company were $60,000. The note is due in August 2022 and bears interest at 18%. The Company is in default on this note.

In March 2022, the Company borrowed $68,250 from an existing investor. The net proceeds to the Company were $65,000. The note is due in September 2022 and bears interest at 18%.

In April 2022, the Company borrowed $65,000 from an existing investor. The net proceeds to the Company were $61,579. The note is due in October 2022 and bears interest at 18%. The Company is in default on this note.

In February and March 2022, the Company borrowed $838,953 from an existing investor to finance the February and March condominium purchases. The net proceeds to the Company were $762,685. The note bears interest at 18% and is due upon demand.

In May 2022, the Company borrowed $65,000 from an existing investor. The net proceeds to the Company were $61,579. The note is due in November 2022 and bears interest at 18%. The Company is in default on this note.

In June 2022, the Company borrowed $65,000 from an existing investor. The net proceeds to the Company were $61,579. The note is due in December 2022 and bears interest at 18%. The Company is in default on this note.

In August 2022, the Company borrowed $10,500 from an existing investor. The net proceeds to the Company were $10,000. The note is due in November 2022 and bears interest at 18%. The Company is in default on this note.

In May 2022, the Company converted $8,370 of principal and $2,630 of interest of the note receivable into 1,364,764 shares of the Issuer's common stock. The Company recognized a gain of $7,430 upon the sale of the shares.

In August 2022, the Company converted $12,000 in interest of the note receivable into 1,758,242 shares of the Issuer's common stock. The Company recognized a loss of $570 upon the sale of the common stock.

In October 2022, the Company entered into a convertible note agreement in the amount of $33,333 with an existing investor. The net proceeds to the Company were $30,000. The note is due April 3, 2023 and bear interest at 12%.

In October 2022, the Company converted $,9680 in principal and $320 in interest of the note receivable into 6,750,599 shares of the Issuer's common stock. The Company recognized a loss of $1,162 on the sale of the shares.

In August 2022, the Company modified a software development contract such that the Company agreed to pay the software developer $100,000 per month and to issued 3,600,000,000 shares of the Company's common stock to the software developer.

During the nine months ended September 30, 2022, the Company borrowed $572,520 from an affiliate of the chief executive officer of the Company by entering into a series of note agreements. The notes are due six months from the date of each note and bear interest at 18%. The Company recorded original issue discounts totaling $73,200 related to the notes and made payments of $50,500 on the notes.

**Item 14. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**

There have been no changes in our independent registered public accounting firm and there are no disagreements with our independent registered public accounting on accounting and financial disclosures.

**Item 15. Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Financial Statements.** 

**(b)** **Exhibits.** 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Old File Title | &nbsp;&nbsp;New Exhibit No. | &nbsp;&nbsp;New Title |
| &nbsp;&nbsp;STRP--Certificate of Incorporation -- Strata Capital | &nbsp;&nbsp;3.1 | &nbsp;&nbsp;[Certificate of Incorporation of the Registrant, as filed with the Secretary of State of Delaware on December 10, 2007](ex_3-1.htm) |
| &nbsp;&nbsp;STRP--Certificate of Amendment Changing Name--Filed | &nbsp;&nbsp;3.2a | &nbsp;&nbsp;[Amended and Restated Certificate of Incorporation of the Registrant filed with the Secretary of Delaware on October 31<sup>st</sup>, 2012](ex_3-2a.htm) |
| &nbsp;&nbsp;Name Change Certificate | &nbsp;&nbsp;3.2b | &nbsp;&nbsp;[Amended and Restated Certificate of Incorporation of the Registrant filed with the Secretary of Delaware](ex_3-2b.htm) |
| &nbsp;&nbsp;36.2 Billion Authorized Increase Jan 2022 | &nbsp;&nbsp;3.2c | &nbsp;&nbsp;[Amended and Restated Certificate of Incorporation of the Registrant filed with the Secretary of Delaware filed on December 15, 2021](ex_3-2c.htm) |
| &nbsp;&nbsp;Preferred Series A | &nbsp;&nbsp;3.4a | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series A Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware on October 1, 2014](ex_3-4a.htm) |
| &nbsp;&nbsp;Series B Delaware Certificate of Designation | &nbsp;&nbsp;3.4b | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series B Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware on February 12, 2015](ex_3-4b.htm) |
| &nbsp;&nbsp;CERTIFICATE OF_AMENDMENT_to Metrospaces_COD for_B(267772744.3) vExecuted.docx | &nbsp;&nbsp;3.4c | &nbsp;&nbsp;[First Amendment to Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series B Convertible Preferred Stock of the Registrant](ex_3-4c.htm) |
| &nbsp;&nbsp;MSPC--Cert of Designations--Series C--All Executed | &nbsp;&nbsp;3.4d | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series C Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware](ex_3-4d.htm) |
| &nbsp;&nbsp;CERTIFICATE OF AMENDMENT to Metrospaces COD for C(267772757.3) vExecuted.docx | &nbsp;&nbsp;3.4e | &nbsp;&nbsp;[First Amendment to Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series C Convertible Preferred Stock of the Registrant](ex_3-4e.htm) |
| &nbsp;&nbsp;State of Delaware Certificate of Designation | &nbsp;&nbsp;3.4f | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series D Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware](ex_3-4f.htm) |
| &nbsp;&nbsp;MSPC--Cert of Designations--Series D--Revised—090715 | &nbsp;&nbsp;3.4g | &nbsp;&nbsp;[First Amendment to Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series D Convertible Preferred Stock of the Registrant](ex_3-4g.htm) |
| &nbsp;&nbsp;CERTIFICATE OF_AMENDMENT to_Metrospaces COD_for D(267772733.3) vExecuted.docx | &nbsp;&nbsp;3.4h | &nbsp;&nbsp;[Second Amendment to Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series D Convertible Preferred Stock of the Registrant](ex_3-4h.htm) |
| &nbsp;&nbsp;Series E Certification of Designation – filed | &nbsp;&nbsp;3.4i | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series E Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware](ex_3-4i.htm) |
| &nbsp;&nbsp;Metrospaces - Series F Certificate of Designation filed | &nbsp;&nbsp;3.4j | &nbsp;&nbsp;[Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series F Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware](ex_3-4j.htm) |
| &nbsp;&nbsp;NEW | &nbsp;&nbsp;3.4k | &nbsp;&nbsp;Certificate of Designation of Rights, Preferences, Privileges, and Restrictions of the Series Z Convertible Preferred Stock of the Registrant, as filed with the Secretary of State of the State of Delaware |
| &nbsp;&nbsp;STRP-MSPC-Bylaws | &nbsp;&nbsp;3.5 | &nbsp;&nbsp;[Bylaws of the Registrant](ex_3-5.htm) |
| &nbsp;&nbsp;Metrospaces, Inc. Amended Corporate Bylaws 12-12-21 | &nbsp;&nbsp;3.5b | &nbsp;&nbsp;[Amended Bylaws of the Registrant](ex_3-5b.htm) |
|  | &nbsp;&nbsp;4.1a |  |
| &nbsp;&nbsp;ShokWorks Service Agreement Metrospaces vExecuted | &nbsp;&nbsp;10.1 | &nbsp;&nbsp;Service Agreement between the Registrant and ShokWorks |

---

\*- Filed Herewith

\*\* - To be filed by amendment

**SIGNATURES**

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **METROSPACES, INC.** | **METROSPACES, INC.** |
| Date: | [●], 2023 | By: | */s/* |
|  |  |  | Oscar Brito |
|  |  |  | Chief Executive Officer and Chairman of the Board |
|  |  | By: | */s/* |
|  |  |  | Steven Plumb |
|  |  |  | Chief Financial Officer, Director |
|  |  | By: | */s/* |
|  |  |  | Alejandro Laplana |
|  |  |  | Chief Technology Officer, Director |

---

## Ex-3

**METROSPACES, INC.**

**Amended Bylaws**

**Effective: December 12, 2021**

**<u>ARTICLE I</u><br> OFFICES**

Section 1.1 <u>REGISTERED OFFICE</u>. The Corporation shall maintain a registered office and registered agent within the State of Delaware at such place within such State as may be designated from time to time by the Board of Directors of the Corporation.

Section 1.2 <u>OTHER OFFICES</u>. The Corporation may also have offices in such other places, either within or without the State of Delaware, as the Board of Directors may from time to time designate or the business of the Corporation may from time to time require.

**<u>ARTICLE II</u><br> STOCKHOLDERS**

Section 2.1 <u>MEETINGS OF STOCKHOLDERS</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) *ANNUAL MEETINGS.* Annual meetings of the stockholders, at which they shall elect members of the board of directors and transact such other business as may properly come before the meeting, shall be held on such date and at such time as the board of directors may designate.

&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) *SPECIAL MEETINGS.* Except as otherwise required by law, special meetings of stockholders of the Corporation for any purpose or purposes may be called only by the Board of Directors, the Chairman of the Board or the Chief Executive Officer of the Corporation. Special meetings of the stockholders may not be called by any other person or persons.

&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) *PLACE OF MEETINGS.* Meetings of the stockholders shall be held at such place, either within or without the State of Delaware, or solely by means of remote communication, as the board of directors shall determine.

&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) *NOTICE OF MEETING.* Notice, stating the place, if any, day and time of the meeting, and the means of remote communication, if any, shall be delivered by the Corporation not less than ten days nor more than 60 days before the date of the meeting to each stockholder of record entitled to vote at such meeting. Notice of a special meeting shall also state the purpose or purposes for which the meeting has been called. Without limiting the manner by which notice may otherwise be given, notice may be given by a form of electronic transmission that satisfies the requirements of the Delaware General Corporation Law. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with postage thereon prepaid, addressed to the stockholder at his or her address as it appears in the Corporation's records. Meetings may be held without notice if all stockholders entitled to vote are present, or if notice is waived by those not present in accordance with Article VIII of these Bylaws. Any previously scheduled meeting of the stockholders may be postponed, and any special meeting of the stockholders may be cancelled, by resolution of the board of directors upon public notice given prior to the date previously scheduled for such meeting 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 (or any supplement thereto).

&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) *CHAIR OF STOCKHOLDERS MEETING.* The Chair of the Board, or in the Chair's absence, a Vice Chair, or in the absence of any Vice Chair, the Chief Executive Officer, or in the absence of the Chief Executive Officer, the Secretary, or in the absence of the Secretary, a chair chosen by a majority of the directors present, shall act as chair of the meetings of the stockholders.

Section 2.2 <u>QUORUM OF STOCKHOLDERS; ADJOURNMENT; REQUIRED VOTE; PROXIES</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) *QUORUM OF STOCKHOLDERS; ADJOURNMENT.* Except as otherwise provided by law, by the Amended and Restated Certificate of Incorporation of the Corporation (the "*Certificate of Incorporation*") or by these Bylaws, the holders of a majority of the voting power of the shares of stock of the Corporation issued and outstanding and entitled to vote, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders, except that when specified business is to be voted on by a class or series of stock voting as a class, the holders of a majority of the shares of such class or series issued and outstanding and entitled to vote shall constitute a quorum of such class or series for the transaction of such business. The chair of the meeting or a majority of the shares so represented may adjourn the meeting from time to time, whether or not there is such a quorum. No notice of the time and place of adjourned meetings need be given, except that notice of the adjourned meeting shall be required if the adjournment is for more than 30 days or if after the adjournment a new record date is fixed for the adjourned meeting. The stockholders present at a duly called meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

&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) *REQUIRED VOTE.* Except as is otherwise required by law, the Certificate of Incorporation or these Bylaws, each holder of record of shares of stock of the Corporation having voting powers shall be entitled, at each meeting of the stockholders, to one vote for every share of such stock standing in his or her name on the record of stockholders of the Corporation and, if a quorum is present and unless otherwise required by the Certificate of Incorporation, the affirmative vote of a majority of the shares of stock represented at the meeting and entitled to vote on the subject matter shall be the act of the stockholders, except with respect to the election of directors. Election of directors at all meetings of the stockholders at which directors are to be elected shall, subject to the rights of the holders of any series of Preferred Stock to elect directors under specified circumstances, be elected by a plurality of the votes cast.

&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) *PROXIES*. Each stockholder of record entitled to vote at any meeting may do so in person or by proxy authorized by an instrument in writing or in such other manner or form, such as electronic transmission, permitted by the Delaware General Corporation Law, by such stockholder or his or her duly authorized attorney in fact.

Section 2.3 <u>LIST OF STOCKHOLDERS</u>. At least ten days before each meeting of stockholders, the Secretary or agent having charge of the stock transfer book shall make a complete list of the stockholders entitled to vote at such meeting, arranged in alphabetical order, with the address of each and the number of shares held by each. Such list shall be subject to inspection by any stockholder for a period of ten days prior to such meeting, for any purpose related to the meeting, at the principal office of the Corporation at any time during usual business hours or on a reasonably accessible electronic network. Such list shall be produced and kept open at the time and place of meeting, or if the meeting is to be held solely by means of remote communication then on a reasonably accessible electronic network, and shall be subject to the inspection of any stockholder during the whole time of the meeting.

Section 2.4 <u>NOTICE OF STOCKHOLDER BUSINESS AND NOMINATIONS</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) *ANNUAL MEETINGS OF STOCKHOLDERS.*

 

 (1) Nominations of persons for election to the board of directors of the Corporation and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders (A) pursuant to the Corporation's notice of meeting, (B) by or at the direction of the board of directors, or (C) by any stockholder of the Corporation who was a stockholder of record at the time of giving of notice provided for in this Section 2.4, who is entitled to vote at the meeting and who complies with the notice procedures set forth in this Section 2.4.

<br> (2) For nominations or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (C) of paragraph (a)(1) of this Section 2.4, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such other business must otherwise be a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to the Secretary at the principal executive offices of the Corporation not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year's annual meeting; <u>provided</u>, <u>however</u>, that in the event that the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to the date of such annual meeting and not later than the close of business on the later of the 90th day prior to the date of such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made by the Corporation. In no event shall any adjournment or postponement of an annual meeting or the public announcement thereof commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. Such stockholder's notice must set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) as to each person whom the stockholder proposes to nominate for election or reelection as a director, (i) all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (the "*Exchange Act*") (including such person's written consent to being named in the proxy statement as a nominee and to serving as a director if elected), and (ii) information relating to any agreement, arrangement or understanding, including a voting commitment, or any relationship, including financial transactions and compensation, between such person and the stockholder or any Stockholder Associated Person (as defined in Section 2.4(c)(2) below); provided, that the Corporation may also require any proposed nominee to furnish such other information as the Corporation may reasonably require to determine the eligibility of such proposed nominee to serve as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as to any business, other than the nomination of a director or directors, that the stockholder proposes to bring before the meeting, (i) a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest of such stockholder and any Stockholder Associated Person in such business, (ii) a description of all agreements, arrangements and understandings between such stockholder and any Stockholder Associated Person and any other person or persons (including their names) in connection with the proposal of such business by such stockholder, and (iii) if the proposal or business is to be included in the Corporation's proxy statement, the text of the 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); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) as to the stockholder giving the notice and any Stockholder Associated Person, (i) the name and address of such stockholder, as they appear on the Corporation's stock ledger, and the name and address, if different, of such Stockholder Associated Person, (ii) the class, series and number of all shares of stock of the Corporation which are held of record or are beneficially owned by such stockholder and by such Stockholder Associated Person, (iii) the nominee holder for, and the number of, shares owned beneficially but not of record by such stockholder and by such Stockholder Associated Person, (iv) any derivative position, including without limitation any option, warrant, convertible security, stock appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of the Corporation or with a value derived in whole or in part from the value of any class or series of shares of the Corporation, directly or indirectly held or beneficially held by such stockholder and such Stockholder Associated Person, and whether and the extent to which any hedging, equity swap or other transaction or series of transactions has been entered into by or on behalf of, or any other agreement, arrangement or understanding (including any short position or interest or any borrowing or lending of shares of stock) has been made by, such stockholder or such Stockholder Associated Person with respect to any shares of stock of the Corporation, or whether such stockholder or Stockholder Associated Person has an economic interest in the Corporation not reported as record or beneficial ownership, (v) any proxy, contract, arrangement, understanding or relationship pursuant to which such stockholder or Stockholder Associated Person has a right to vote any shares of stock of the Corporation, (vi) any rights to dividends on the shares of the Corporation owned beneficially by such stockholder or Stockholder Associated Person that are separated or separable from the underlying shares of the Corporation, (vii) a representation that the stockholder is a holder of record of stock of the Corporation entitled to vote at such meeting and intends to appear in person or through a qualified representative at the meeting to propose such nomination or business, and (viii) a representation whether such stockholder or Stockholder Associated Person intends or is part of a group which intends (x) 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 elect the nominee or to approve or adopt the proposal and/or (y) otherwise to solicit proxies from stockholders in support of such nomination or proposal, and the information called for by this paragraph (2)(C) shall be supplemented by such stockholder and Stockholder Associated Person not later than 10 days after the record date for the meeting to disclose such information as of the record 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;(b) *SPECIAL MEETINGS OF STOCKHOLDERS*. The business to be transacted at any special meeting shall be limited to the purposes stated in the notice of such meetings. Nominations of persons for election to the board of directors may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation's notice of meeting (1) by or at the direction of the board of directors or (2) 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 of giving of notice provided for in this Section 2.4 and is a shareholder of record at the time of the special meeting, who is entitled to vote at the meeting and who complies with the notice procedures set forth in this Section 2.4. 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 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 the stockholder's notice required by paragraph (a)(2) of this Section 2.4 shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the close of business on the 120th day prior to the date of such special meeting and not later than the close of business on the later of the 90th day prior to the date of such special meeting or the 10th day following the day on which public announcement is first made 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 any adjournment or postponement of a special meeting or the public announcement thereof commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&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) *GENERAL.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Only such persons who are nominated in accordance with the procedures set forth in this Section 2.4 shall be eligible to serve as directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 2.4. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the chair of the meeting shall have the power and duty to determine whether a nomination or any 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 2.4 and, if any proposed nomination or business is not in compliance with this Section 2.4, to declare that such defective nomination or proposal shall be disregarded. Notwithstanding the foregoing provisions of this Section 2.4, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or proposal, such nomination or proposed business shall be disregarded, notwithstanding that proxies in respect of such vote may have been received by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For purposes of this Bylaw, (A) "*public announcement*" shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or other national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act; and (B) *"Stockholder Associated Person"* of any stockholder shall mean (i) any person or entity controlling, controlled by or under common control with, directly or indirectly, or acting in concert with, such stockholder, (ii) any beneficial owner of shares of stock of the Corporation owned of record or beneficially by such stockholder, and (iii) any person or entity controlling, controlled by or under common control with a Stockholder Associated Person as defined in the foregoing clauses (B)(i) or (B)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding the foregoing provisions of this Section 2.4, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.4. Nothing in this Section 2.4 shall be deemed to affect any rights (A) of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act or (B) of the holders of any series of Preferred Stock to elect directors under specified circumstances.

Section 2.5 <u>INSPECTORS OF ELECTIONS</u>. The board of directors by resolution shall appoint one or more inspectors, which inspector or inspectors may include individuals who serve the Corporation in other capacities, including, without limitation, as officers, employees, agents or representatives, to act at the meetings of stockholders and make a written report thereof. One or more persons may be designated as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate has been appointed to act or is able to act at a meeting of stockholders, the chair of the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall have the duties prescribed by law.

**<u>ARTICLE III</u><br> BOARD OF DIRECTORS**

Section 3.1 <u>GENERAL POWERS</u>. The business and affairs of the Corporation shall be managed under the direction of the board of directors. In addition to the powers and authorities by these Bylaws expressly conferred upon them, the board of directors may exercise all such powers of the Corporation and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these Bylaws required to be exercised or done by the stockholders.

Section 3.2 <u>NUMBER</u>. Subject to the rights of the holders of any series of Preferred Stock to elect directors under specified circumstances, the number of directors of the Corporation shall be fixed, and may be increased or decreased from time to time, exclusively by the board of directors; <u>pr</u><u>ovided</u>, <u>however</u>, that no decrease in the number comprising the entire board made pursuant to this Section 3.2 shall shorten the term of any incumbent director.

Section 3.3 <u>SPECIAL MEETINGS</u>. Special meetings of the board of directors may be called by the Chair of the Board, the Chief Executive Officer or the board of directors. The person or persons authorized to call special meetings of the board of directors may fix the place and time of the meetings. Notice of any special meeting shall be given to each director and shall state the time and place for the special meeting.

Section 3.4 <u>NOTICE</u>. If notice of a board of directors' meeting is required to be given, notice of shall be given to each director at his or her business or residence in writing by hand delivery, first-class or overnight mail or courier service, electronic transmission (including, without limitation, via facsimile transmission or electronic mail), or orally by telephone. If mailed by first-class mail, such notice shall be deemed adequately delivered when deposited in the United States mails so addressed, with postage thereon prepaid, no later than the third business day preceding the date of such meeting. If by overnight mail or courier service, such notice shall be deemed adequately delivered when the notice is delivered to the overnight mail or courier service company at least twenty-four hours before such meeting. If by electronic transmission, such notice shall be deemed adequately delivered when the notice is transmitted at least 12 hours before such meeting. If by telephone or by hand delivery, the notice shall be given at least 12 hours prior to the time set for the meeting. Neither 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 of such meeting, except for amendments to these Bylaws, as provided under Article IX of these Bylaws. A meeting may be held at any time without notice if all the directors are present or if those not present waive notice of the meeting in accordance with Article VIII of these Bylaws.

Section 3.5 <u>QUORUM</u>. Subject to Section 3.8 of these Bylaws and except as may be otherwise specifically provided by law or the Certificate of Incorporation, a majority of the board of directors then in office shall constitute a quorum for the transaction of business, but if at any meeting of the board of directors there shall be less than a quorum present, a majority of the directors present may adjourn the meeting from time to time without further notice. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, except as may be otherwise specifically provided by law or the Certificate of Incorporation. The directors present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough directors to leave less than a quorum.

Section 3.6 <u>USE OF COMMUNICATIONS EQUIPMENT</u>. Directors may participate in a meeting of the board of directors or any committee thereof by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

Section 3.7 <u>ACTION BY CONSENT OF THE BOARD OF DIRECTORS</u>. 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 or committee, as the case may be, consent thereto in writing or by electronic transmission, and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board or committee.

Section 3.8 <u>VACANCIES</u>. Subject to applicable law and the rights of the holders of any series of Preferred Stock with respect to such series of Preferred Stock, and unless the board of directors otherwise determines, vacancies resulting from death, resignation, retirement, disqualification, removal from office or other cause, and newly created directorships resulting from any increase in the authorized number of directors, may be filled only by the affirmative vote of a majority of the remaining directors, though less than a quorum of the board of directors, or by the sole remaining director, and each director so chosen shall hold office for a term expiring at the annual meeting of stockholders and until such director's successor shall have been duly elected and qualified.

Section 3.9 <u>COMMITTEES</u>.

The board of directors may designate one or more committees, each of which shall consist of one or more directors. The board of directors 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 any member of such committee or committees, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member.

Any committee shall, to the extent provided in a resolution of the board of directors and subject to the limitations contained in the Delaware General Corporation Law, have and may exercise all the powers and authority of the board of directors in the management of the business and affairs of the Corporation. Each committee shall keep such records and report to the board of directors in such manner as the board of directors may from time to time determine. Except as the board of directors may otherwise determine, any committee may make rules for the conduct of its business. Except as provided in the next sentence, and unless otherwise provided in a resolution of the board of directors or in rules adopted by the committee, each committee shall conduct its business as nearly as possible in the same manner as provided in these Bylaws for the board of directors. A majority of the members of a committee shall constitute a quorum, and the act of a majority of the members of a committee present at any meeting at which a quorum is present shall be the act of the committee.

The board of directors shall have power at any time to fill vacancies in, to change the membership of, or to dissolve any such committee. The term of office of the members of each committee shall be as fixed from time to time by the board of directors; provided, however, that any committee member who ceases to be a member of the board of directors shall automatically cease to be a committee member.

Nothing herein shall be deemed to prevent the board of directors from appointing one or more committees consisting in whole or in part of persons who are not directors of the Corporation; provided, however, that no such committee shall have or may exercise any authority of the board of directors.

**<u>ARTICLE IV</u><br> BOOKS AND RECORDS**

The board of directors shall cause to be kept a record containing the minutes of the proceedings of the meetings of the Board and of the stockholders, appropriate stock books and registers and such books of records and accounts as may be necessary for the proper conduct of the business of the Corporation. Unless otherwise required by the laws of Delaware, the books and records of the Corporation may be kept at the principal office of the Corporation, or at any other place or places inside or outside the State of Delaware.

**<u>ARTICLE V</u><br> OFFICERS**

Section 5.1 <u>OFFICERS; ELECTION OR APPOINTMENT</u>. The board of directors shall take such action as may be necessary from time to time to ensure that the Corporation has such officers as are necessary, under Section 6.1 of these Bylaws and the Delaware General Corporation Law as currently in effect or as the same may hereafter be amended, to enable it to sign stock certificates. In addition, the board of directors at any time and from time to time may elect (a) one or more Chair of the Board and/or one or more Vice Chairs of the Board, (b) one or more Chief Executive Officers, one or more Presidents and/or one or more Chief Operating Officers, (c) one or more Vice Presidents, one or more Treasurers and/or one or more Secretaries and/or (d) one or more other officers, in each case if and to the extent the board of directors deems desirable. The board of directors may give any officer such further designations or alternate titles as it considers desirable. In addition, the board of directors at any time and from time to time may authorize the Chair of the Board or the Chief Executive Officer of the Corporation to appoint one or more officers of the kind described in clauses (c) and (d) above. Any number of offices may be held by the same person and directors may hold any office unless the Certificate of Incorporation or these Bylaws otherwise provide.

Section 5.2 <u>TERM OF OFFICE; RESIGNATION; REMOVAL; VACANCIES</u>. Unless otherwise provided in the resolution of the board of directors electing or authorizing the appointment of any officer, each officer shall hold office until his or her successor is elected or appointed and qualified or until his or her earlier resignation or removal. Any officer may resign at any time upon written notice to the board of directors or to such person or persons as the board of directors may designate. Such resignation shall take effect at the time specified therein or, if not so specified, upon receipt, and unless otherwise specified therein no acceptance of such resignation shall be necessary to make it effective. The board of directors may remove any officer with or without cause at any time. The Chair of the Board or the Chief Executive Officer authorized by the board of directors to appoint a person to hold an office of the Corporation may also remove such person from such office with or without cause at any time, unless otherwise provided in the resolution of the Board providing such authorization. Any such removal shall be without prejudice to the contractual rights of such officer, if any, with the Corporation, but the election or appointment of an officer shall not of itself create contractual rights. Any vacancy occurring in any office of the Corporation by death, resignation, removal or otherwise may be filled by the board of directors at any regular or special meeting or by the Chair of the Board or the Chief Executive Officer authorized by the board of directors to appoint a person to hold such office.

Section 5.3 <u>POWERS AND DUTIES</u>. The officers of the Corporation shall have such powers and duties in the management of the Corporation as shall be stated in these Bylaws or in a resolution of the board of directors which is not inconsistent with these Bylaws and, to the extent not so stated, as generally pertain to their respective offices, subject to the control of the board of directors. A Secretary or such other officer appointed to do so by the board of directors shall have the duty to record the proceedings of the meetings of the stockholders, the board of directors and any committees in a book to be kept for that purpose.

**<u>ARTICLE VI</u><br> STOCK**

Section 6.1 <u>STOCK CERTIFICATES</u>. The shares of the Corporation may be either in certificated or in uncertificated form. If shares are issued in uncertificated form, each stockholder shall be entitled upon written request to a stock certificate or certificates duly numbered, certifying the number and class of shares in the Corporation owned by him and otherwise as specified in this Section 6.1. Each certificate for shares of stock shall be in such form as may be prescribed by the board of directors and shall be signed in the name of the Corporation by (a) the Chair of the Board, the Chief Executive Officer, the President or a Vice President, and (b) by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer. Any or all of the signatures on a 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 by the Corporation with the same effect as if he or she were such officer, transfer agent or registrar at the date of issue. Each certificate will include any legends required by law or deemed necessary or advisable by the board of directors.

Section 6.2 <u>LOST, STOLEN OR DESTROYED CERTIFICATES</u>. The Corporation may issue a new certificate of stock or uncertificated shares in place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation and/or the board of directors may require the owner of such lost, stolen or destroyed certificate, or his or her legal representatives, to make an affidavit of that fact and/or to give the Corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of any such certificate or issuance of any such new certificate or uncertificated shares. Anything herein to the contrary notwithstanding, the board of directors, in its absolute discretion, may refuse to issue any such new certificate or uncertificated shares, except pursuant to legal proceedings under the laws of the State of Delaware.

Section 6.3 <u>TRANSFERS OF STOCK</u>. The shares of the stock of the Corporation shall be transferable on the books of the Corporation by the holder thereof in person or by his or her attorney upon surrender for cancellation of a certificate or certificates for at least the same number of shares, or other evidence of ownership if no certificates shall have been issued, with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, and with such proof of the validity and authenticity of the signature as the Corporation or its agents may reasonably require.

Section 6.4 <u>REGISTERED STOCKHOLDERS</u>. 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 to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any equitable or legal claim or claims to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

Section 6.5 <u>REGULATIONS</u>. Except as otherwise provided by law, the board of directors may make such additional rules and regulations, not inconsistent with the Bylaws, as it may deem expedient concerning the issue, transfer and registration of the securities of the Corporation. The board of directors may appoint, or authorize any officer or officers to appoint, one or more transfer agents and one or more registrars and may require all certificates for shares of capital stock to bear the signature or signatures of any of them.

Section 6.6 <u>RECORD DATE</u>. For the purpose of determining stockholders entitled to notice of, or to vote at, any meeting of stockholders or any adjournment thereof, or for the purpose of determining stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitlements 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, in advance, a record date. Such date shall not be more than 60 nor less than ten days before the date of any such meeting, nor more than 60 days prior to any other action.

**<u>ARTICLE VII</u><br> DEPOSITARIES AND CHECKS**

Depositaries of the funds of the Corporation shall be designated by the board of directors; and all checks on such funds shall be signed by such officers or other employees of the Corporation as the board of directors from time to time may designate.

**<u>ARTICLE VIII</u><br> WAIVER OF NOTICE**

Any notice of a meeting required to be given by law, by the Certificate of Incorporation, or by these Bylaws may be waived by the person entitled thereto, either before or after the time of such meeting stated in such notice. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the stockholders or the board of directors or committee thereof need be specified in any waiver of notice of such meeting. Attendance at any meeting shall constitute waiver of notice except attendance for the express purpose of objecting, at the beginning of the meeting, to the transaction of business because the meeting is not lawfully called or convened.

**<u>ARTICLE IX</u><br> AMENDMENT**

In furtherance and not in limitation of the powers conferred by law, the board of directors is expressly authorized to adopt, amend and repeal these Bylaws, subject to the power of the holders of capital stock of the Corporation to adopt, amend or repeal the Bylaws; provided, however, that, with respect to the power of holders of the capital stock to adopt, amend and repeal these Bylaws, notwithstanding any other provision of these Bylaws or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any affirmative vote of the holders of any particular class or series of the capital stock of the Corporation required by law, these Bylaws or any preferred stock, the affirmative vote of the holders of at least 66.67% of the voting power of all of the then-outstanding shares entitled to vote generally in the election of directors, voting together as a single class, shall be required to adopt, amend or repeal any provision of these Bylaws.

**<u>ARTICLE X</u><br> INDEMNIFICATION AND INSURANCE**

Section 10.1 <u>RIGHT TO INDEMNIFICATION</u>. Each person who was or is made a party or is threatened to be made a party to or is involved in any action, suit, claim or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "*proceeding*"), by reason of the fact that he or she or a person of whom he or she is the legal representative is or was a director or officer 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, limited liability company, trust or other enterprise, including service with respect to employee benefit plans maintained or sponsored by the Corporation, whether the basis of such proceeding 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, 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 (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than said law permitted the Corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of his or her heirs, executors and administrators; provided, however, that except as provided in Section 10.4 of this Article X, the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the board of directors.

Section 10.2 <u>ADVANCEMENT OF EXPENSES</u>. The right to indemnification conferred in this Article X shall be a contract right and shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition, such advances to be paid by the Corporation after receipt by the Corporation of a written statement or statements from the claimant requesting such advance or advances; provided, however, that if the Delaware General Corporation Law requires, the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such person while a director or officer, including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding, shall be made only upon delivery to the Corporation of an undertaking by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director or officer is not entitled to be indemnified under this Article X or otherwise.

Section 10.3 <u>OBTAINING INDEMNIFICATION</u>. To obtain indemnification under this Article X, a claimant shall submit to the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to the claimant and is reasonably necessary to determine whether and to what extent the claimant is entitled to indemnification. Upon written request by a claimant for indemnification pursuant to the first sentence of this Section 10.3, a determination, if required by applicable law, with respect to the claimant's entitlement thereto shall be made as follows: (1) if requested by the claimant, by Independent Counsel (as hereinafter defined), or (2) if no request is made by the claimant for a determination by Independent Counsel, (i) by the board of directors by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (ii) if a quorum of the board of directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the board of directors, a copy of which shall be delivered to the claimant, or (iii) if a quorum of Disinterested Directors so directs, by the stockholders of the Corporation. In the event the determination of entitlement to indemnification is to be made by Independent Counsel at the request of the claimant, the Independent Counsel shall be selected by the board of directors unless there shall have occurred within two years prior to the date of the commencement of the action, suit or proceeding for which indemnification is claimed a Change in Control (as defined below), in which case the Independent Counsel shall be selected by the claimant unless the claimant shall request that such selection be made by the board of directors. If it is so determined that the claimant is entitled to indemnification, payment to the claimant shall be made within 30 days after such determination. If a claimant is successful, in whole or in part, in any suit brought against the Corporation to recover the unpaid amount of any written claim to indemnification, the claimant shall be entitled to be paid also the expense of prosecuting such claim.

Section 10.4 <u>RIGHT OF CLAIMANT TO BRING SUIT</u>. If a claim under Section 10.1 of this Article X is not paid in full by the Corporation within 30 days after a written claim pursuant to Section 10.3 of this Article X 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 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 any proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation) that the claimant has not met the standard of conduct which makes it permissible under the Delaware General Corporation Law for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation. Neither the failure of the Corporation (including its board of directors, Independent Counsel or stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she 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 Counsel or stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.

Section 10.5. <u>CORPORATION'S OBLIGATION TO INDEMNIFY</u>. If a determination shall have been made pursuant to Section 10.3 of this Article X that the claimant is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding commenced pursuant to Section 10.4 of this Article X.

Section 10.6 <u>PRECLUSION FROM CHALLENGING ARTICLE X</u>. The Corporation shall be precluded from asserting in any judicial proceeding commenced pursuant to Section 10.4 of this Article X that the procedures and presumptions of this Article X are not valid, binding and enforceable and shall stipulate in such proceeding that the Corporation is bound by all the provisions of this Article X.

For purposes of this Article X:

&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) "*Change in Control*" shall be deemed to occur only if a majority of the members of the board of directors shall not be (i) individuals elected as directors of the Corporation for whose election proxies shall have been solicited by the board of directors of the Corporation or (ii) individuals elected or appointed by the board of directors of the Corporation to fill vacancies on the board of directors caused by death or resignation (but not by removal) or to fill newly created directorships.

&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 Corporation who is not and was not a party to the matter in respect of which indemnification is sought by the claimant.

&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) "*Independent Counsel*" means a law firm, a member of a law firm, or an independent practitioner, that is experienced in matters of corporation law and shall include any person who, under the applicable standards of professional conduct then prevailing, would not have a conflict of interest in representing either the Corporation or the claimant in an action to determine the claimant's rights under this Article X.

Section 10.7 <u>NON-EXCLUSIVITY OF RIGHTS</u>. The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Article X shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, Bylaws, agreement, vote of stockholders or disinterested directors or otherwise. No repeal or modification of this Article X shall in any way diminish or adversely affect the rights of any director, officer, employee or agent of the Corporation hereunder in respect of any occurrence or matter arising prior to any such repeal or modification.

Section 10.8 <u>INSURANCE</u>. The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, limited liability company, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the Delaware General Corporation Law. To the extent that the Corporation maintains any policy or policies providing such insurance, each such director or officer, and each such agent or employee to which rights to indemnification have been granted as provided in Section 10.9 of this Article X, shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage thereunder for any such director, officer, employee or agent.

Section 10.9 <u>OTHER EMPLOYEES AND AGENTS</u>. The Corporation may, to the extent authorized from time to time by the board of directors, grant rights to indemnification, and rights to be paid by the Corporation the expenses incurred in defending any proceeding in advance of its final disposition, to any employee or agent or class of employees or agents of the Corporation (including the heirs, executors, administrators or estate of each such person) to the fullest extent of the provisions of this Article X with respect to the indemnification and advancement of expenses of directors and officers of the Corporation.<u> </u>

Section 10.10 <u>VALIDITY OF ARTICLE X</u>. If any provision or provisions of this Article X shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Article X (including, without limitation, each portion of any paragraph of this Article X containing any such provision held to be invalid, illegal or unenforceable, that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Article X (including, without limitation, each such portion of any paragraph of this Article X containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

**<u>ARTICLE XI</u><br> LITIGATION COSTS**

Except to the extent prohibited by the Delaware General Corporation Law, and unless the Board of Directors or one of its committees otherwise approves in accordance with Section 141 of the Delaware General Corporation Law, the Certificate of Incorporation and these Bylaws, in the event that any person or entity (a "*Claiming Party*") (a) initiates, asserts, joins, offers substantial assistance to or has a direct financial interest in (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim against the Corporation arising pursuant to any provision of the Delaware General Corporation Law or the Certificate of Incorporation or Bylaws, (iv) any action to interpret, apply, enforce or determine the validity of the Certificate of Incorporation or these Bylaws or (v) any action asserting a claim against the Corporation governed by the internal affairs doctrine (each, a "*Covered Proceeding*"), and (b) such Claiming Party does not obtain a judgment on the merits that substantially achieves, in substance and amount, the full remedy sought by such Claiming Party, then each such Claiming Party shall be obligated to reimburse the Corporation and any such director, officer or other employee for all fees, costs and expenses of every kind and description (including, but not limited to, all attorneys' fees and other litigation expenses) that the Corporation or any such director, officer or other employee actually incurs in connection with the Covered Proceeding.

**<u>ARTICLE XII</u><br> MISCELLANEOUS PROVISIONS**

Section 12.1. <u>FISCAL YEAR</u>. The fiscal year of the Corporation shall be as fixed by the board of directors.

Section 12.2. <u>DIVIDENDS</u>. The board of directors may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and the Certificate of Incorporation.

_________________

Oscar A. Brito

Chairman of The Board and CEO

## Ex-3

BY-LAWS

OF

STRATA CAPITAL CORPORATION

**ARTICLE I**

**MEETINGS OF STOCKHOLDERS**

**Section 1. The Annual Meeting.** The annual meeting of the stockholders of STRATA CAPITAL CORPORATION (the "Corporation") for the election of directors and for the transaction of such other business as may come before the meeting shall be held within one hundred and fifty

days after the close of the Corporation's Fiscal Year at such date,

time, and location as the Board of Directors shall designate.

**Section 2. Special Meetings.** stockholders, unless otherwise prescribed any time by the Board of Directors or the Special meetings of the by statute, may be called at President and shall be called by the President or Secretary at the request in writing of stockholders o record owning at least twenty-five per centum (25%) of the shares of stock of the Corporation outstanding and entitled to vote.

**Section 3. Notice of Meetings.** Notice of the place, date and time of the holding of each annual and special meeting of the stockholders and, in the case of a special meeting, the purpose or purposes thereof, shall be given personally or by mail in a postage prepaid envelope to each stockholder entitled to vote at such meeting, not less than ten nor more than sixty days before the date of such meeting, and, if mailed, shall be directed to such stockholder at his address as it appears on the records of the Corporation, unless he shall have filed with the Secretary of the Corporation a written request that notices to him be mailed to some other address, in which case it shall be directed to him at such other address. Notice of any meeting of stockholders shall not be required to be given to any stockholder who shall attend such meeting in person or by proxy and shall not, at the beginning of such meeting, object to the transaction of any business because the meeting is not lawfully called or convened, or who shall, either before or after the meeting, submit a signed waiver of notice, in person or by proxy. Unless the Board of Directors shall fix, after the adjournment, a new record date for an adjourned meeting, notice of such adjourned meeting need not be given if the time and place to which the meeting shall be adjourned were announced at the meeting at which the adjournment is taken. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty 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.

**Section 4. Place of Meetings.** Meetings of the stockholders may be held at such place, within or without the State of Delaware, as the Board of Directors or the officer calling the same shall specify in the notice of such meeting, or in a duly executed waiver of notice hereof.

Section 5. **Quorum. At a 11 meetings of the majority of the votes of the shares**

holders of a <br>

the the

Corporation

issued and outstanding and entitled

to vote shall be

present in person or by proxy to constitute a quorum for the transaction of any business, except as otherwise provided by statute or in the Certificate of Incorporation. In the absence of a quorum, the holders of a majority of the shares of sLock present in person or by proxy and entitled to vote, or if no stockholder entitled to vote is present, then any officer of the Corporation may adjourn the meeting. At any such adjourned meeting at which a quorum may be present, any business may be trar.sacted which might have been transacted aL. the meeting as originally called.

**Section 6. Organization.** At each meeting of the stockholders, the President, or ir: his absence or inability to act, any pe son chosen by a majority of those stockholders present, in person or by proxy and entitled to vote, shall act as chairman of the meeting. The Secretary, or in his absence or inability to act, any person appointed by the chairman of the meeting, shall act as secretary of the meeting and keep the minutes thereof.

**Section 7. Order of Business.** The order of business at all meetings of the stockholders shall be as determined by the chairman of the meeting.

**Section 8. Voting.** Except as otherwise provided by statute, by the Certificate of Incorporation, or by any certificate duly filed in the State of Delaware pursuant to Section 151 of the DeJ.aware General Corporation Law, each holder of record of shares of stock of the Corporation having voting power shall be entitled at each meeting of the stockholders to one vote for every share of such stock standing in his name on the record of stockholders of the Corporation on the date fixed by the Board of Directors as the record date for the determination of the stockholders who shall be entitled to notice of and to vote at such meeting; or if such record date shall not have been so fixed, then at the close of business on the day next preceding the date on which notice thereof shall be given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held; or each stockholder entitled to vote at any meeting of stockholders may authorize another person or persons to act for him by a proxy signed by such stockholder or his attorney-in fact. Any such proxy shall be delivered to the secretary of such meeting at or prior to the time designated in the order of business for so delivering such proxies. No proxy shall be valid after the expiration of three years from the date thereof, unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the stockholder executing it, except in those cases where an irrevocable proxy is permitted by law. Except as otherwise provided by statute, these By-Laws, or the Certificate of incorporation, any corporate action to be taken by vote of the stockholders shall be authorized by a majority of the total votes, cast at a meeting of stockholders by the holders of shares present in person or represented by proxy and entitled to vote on such action. Unless required by statute, or determined by the chairman of the meeting to be advisable, the vote on any question need not be by written ballot. On a vote by written ballot, each ballot shall be signed by the stockholder voting, or by his proxy, if there be such proxy, and shall state the number of shares voted.

**Section 9. List of Stockholders.** The officer who has charge of the stock ledger of the Corporation shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or if not so specified, at the place where the meeting is to be held. The list shall also 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.

**Section 10.** required to be or stockholders of the

**Action by Written Consent.** Any action which is may be taken at any annual or special meeting of Corporation may be taken without a meeting, without

prior notice to stockholders and without a vote if consents in writing, setting forth the action so taken, shall have been signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or to take such action at a meeting at which all shares entitled to vote thereon were present and voted.

**Section 11. Duration and Revocation of Consents.** Consents to corporate action shall be valid for a maximum of sixty (60) days after the date of the earliest dated consent delivered to the Corporation in the manner provided in Section 228(c) of the Delaware General Corporation Law. Consents may be revoked by written notice (i) to the Corporation, (ii) to the stockholder or stockholders soliciting consents or soliciting revocations in opposition to action by consent proposed by the Corporation (the "Soliciting Stockholders"), or (iii) to a proxy solicitor or other agent designated by the Corporation or the Soliciting Stockholders.

**Section 12. Notice of Action by Consent.** The Corporation shall give prompt notice of the taking of corporate action without a meeting by less than unanimous written consent to stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for such meeting had been the date that written consents signed by a sufficient number of stockholders to take the Action were delivered to the Corporation in the manner provided in Section 228(c) of the Delaware General Corporation Law.

ARTICLE II <br> BOARD OF DIRECTORS

**Section 1. General Powers.** The business and affairs of the Corporation shall be managed by the Board of Directors. The Board of Directors may exercise all such authority and powers of the Corporation and do all such lawful acts and things as are not by statute or the Certificate of Incorporation directed or required to be exercised or done by the stockholders.

**Section** **2. Number, Qualifications, Election, and Term of Office.** The number of directors of the Corporation sha.ll be as determined by vote of a majority of the entire Board of Directors. All of the directors shall be of full age. Directors need not be stockholders. Except as otherwise provided by statute or these By-Laws, the directors shall be elected at the annual meeting of the stockholders for the election of directors at which a quorum is present, and the persons receiving a plurality of the votes cast at such election shall be elected. Each director shall hold office until the next annual meeting of the stockholders and until his successor shall have been duly elected and qualified or until his death, or until he shall have resigned, or have been removed, as hereinafter provided in these By-Laws, or as otherwise provided by statute or the Certificate of Incorporation.

**Section 3. Place of Meeting.** Meetings of the Board of Directors may be held at such place, within or without the State of Delaware, as the Board of Directors may from time to time determine or shall be specified in the notice or waiver of notice of such meeting.

**Section 4. First Meeting**.The Board of Directors shall meet for the purpose of organization, the election of the officers of the Corporation, and the transaction of other business, as soon as practicable after each annual meeting of the stockholders. Notice of such meeting need not be given. Such meeting may be held at any other time or place (within or without the State of Delaware) which shall be specified in a notice thereof given as hereinafter Provided in Section

7 of this Article II.

**Section 5. Regular Meetings.** Regular meetings of the Board of Directors shall be held at such time and at such place as the Board of Directors may from time to time determine. If any day fixed for a regular meeting shall be a legal holiday at the place where the meeting is to be held, then the meeting which would otherwise be held on that day shall be held at the same hour on the next succeeding business day. Notice of regular meetings of the Board of Directors need not be given except as otherwise required by statute or these By-Laws.

**Section 6.** Directors may be by the President.

**Special Meetings.** Special meetings of the Board of called by one or more directors of the Corporation or

**Section 7. Notice of Meetings.** Notice of each special meeting of the Board of Directors (and of each regular meeting for which notice shall be required) shall be given by the Secretary as hereinafter provided in this Section 7, in which notice shall be stated the time and place of the meeting. Notice of each such meeting shall be delivered to each director either personally or by telephone, telegraph cable or wireless, at least twenty-four hours before the time at which such meeting is to be held or by first-class ail, postage prepaid, addressed to him at his residence, or usual place of business, at least three days before the day on which such meeting is to beheld. Notice of any such meeting need not be given to any director who shall, either before or after the meeting, submit a signed waiver of notice or **who** shall attend such meeting without protesting, prior to or at its commencement, the lack of notice to him. Except as otherwise specifically required by these By-Laws, a notice or waiver of notice of any regular or special meeting need not state the purpose of such meeting.

**Section 8. Quorum and Manner of Acting.** A majority of the entire Board of Directors shall be present in person at any meeting of the Board of Directors in order to constitute a quorum for the transaction of business at such meeting, and, except as otherwise expressly required by statute or the Certificate of Incorporation, the act of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board of Directors. In the absence of a quorum at any meeting of the Board of Directors, a majority of the directors present thereat, or if no director be present, the Secretary may adjourn such meeting to another time and place, or such meeting, unless it be the first meeting of the Board of Directors, need not be held. At any adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Except as provided in Article III of these By-Laws, the directors shall act only as a Board and the individual directors shall have no power as such.

**Section 9. Organization.** At each meeting of the Board of Directors, the President, or, in his absence or inability to act, another director chosen by a majority of the d_:_rectors present shall act as chairman of the meeting and preside thereat. TheSecretary (or, in his absence or inability to act any person appointed by the chairman) shall act as secretary of the meeting and keep the minutes thereof.

**Section 10. Resignations.** Any director of the Corporation may resign at any time by giving written notice of his resignation to the Board of Directors or the President or the Secretary. Any such resignation shall take effect at the time specified therein or, if the time when it shall become effective shall not be specified therein, immediately upon its receipt; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

**Section** **11. Vacancies.** Vacancies may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and the directors so chosen shall hold office until the next annual election and until their successors are duly elected and shall qualify, unless sooner displaced. If there are no directors in office, then an election of directors maybe held in the manner provided by statute. If, at the time of filling anyvacancy or any newly created directorship, the directors then in office shall constitute less than a majority of the whole Board (as constituted irnmediately prior to any such increase), the Court of Chancery may, upon application of any stockholder or holders of at least ten percent of the votes of the shares at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill anysuch vacancies or newly created directorships, or to replace the directors chosen by the directors then in office. Except as otherwise provided in these By-Laws, when one or more directors shall resign from the Board of Directors, effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have the power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office as provided in this section in the filling of other vacancies.

**Section 12. Removal of Directors.** Except as otherwise provided in the Certificate of Incorporation or in these By-Laws, any director may be removed, either with or without cause, at any time, by the affirmative vote of a majority of the votes of the issued and outstanding stock entitled to vote for the election of directors of the Corporation given at a special meeting of the stockholders called and held for the purpose; and the vacancy in the Board of Directors caused by any such removal may be filled by such stockholders at such meeting, or, if the stockholders shall fail to fill such vacancy, as in these By-Laws provided.

**Section 13. Compensation.** The Board of Directors shall have authority to fix the compensation, including fees and reimbursement of expenses, of directors for services to the Corporation in any capacity, provided no such payment shall preclude any director from servi,1.g the Corporation in any other capacity and receiving compensation therefor.

**Section 14. Action Without Meeting** 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 committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board of Directors or committee.

ARTICLE III <br> COMMITTEES

**Section 1. Committees'I'he** Board of D.i.rectors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board of Directors 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 the committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in place of any such absent or disqualified member. Any such committee, to the extent permitted by law and to the extent provided in the resolution of the Board of Directors, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporatior. to be affixed to all papers which may require it.

**Section 2. Committee Rules.** Unless the Board of Directors otherwise provides, each committee designated by the Board of Directors may make, alter and repeal rules for the conduct of its business. In the absence of such rules each coITLt ittee shall conduct its business in the same manner as the Board of Directors conducts its business pursuant to Article III of these by-laws.

ARTICLE IV <br> OFFICERS

**SectiorNumber and Qualifications.** The officers of the Corporation shall be the President, Secretary, and Treasurer. Any two or more offices maybe held by the same person. Such officers shall be elected from time to time by the Board of Directors, each to hold office until the meeting of the Board of Directors following the next annual meeting of the stockholders, or until his successor shall have been duly elected ar:d shall have qualified, or until his death, or until he shall have resigned, or have been removed, as hereinafter provided in these By-Laws. The Board of Directors may from time to time elect, or the President may appoint, such other officers (including, but not limited to, one or more Vice Presidents, Assistant Vice Presidents, Assistant Secretaries, and Assistant Treasurers), and such agents, as may be necessary or desirable for the business of the Corporation. Such other officers and agents shall have such duties and shall hold their offices for such terms as may be prescribed by the Board of Directors or by the appointing authority.

**Section 2. Resignations.** Any officer of the Corporation may resign at any time by giving written notice of his resignation to the Board of Directors, the President or the Secretary. Any such resignation shall take effect at the time specified therein or, if the time when it shall become effective shall not be specified therein, immediately upon its receipt; and unless otherwise specified therein, the acceptar:ce of such resignation shall not be necessary to make it effective.

**Section 3. Removal.** Any officer or agent of the Corpora::ion may be removed, either with or without cause, at any time, by the vote of the majority of the entire Board of Directors at any meeting of the Board of Directors, or, except in the case of an officer or agent elected or appointed by the Board of Directors, by the President. Such removal shall be without prejudice to the contractual rights, if any, of the person so removed.

**Section 4. Vacancies.** A vacancy in any office, whether arising from death, resignation, removal or any other cause, may be filled for the unexpired portion of the term of the office which shall be vacant, in the manner prescribed in these By-Laws for the regular election or appointment of such office.

**Section 5. Officers' Bonds or Other Security.** If required by the Board of Directors, any officer of the Corporation shall give a bond or other security for the faithful performance of his duties, in such amount and with such surety or sureties as the Board of Directors may require.

**Section** **6. Compensation.** The compensation of the officers of the Corporation for their services as such officers shall be fixed from time to time by the Board of Directors; provided, however, that the Board of Directors may delegate to the President the power to fix the compensation of officers and agents appointed by the President. An officer of the Corporation shall not be prevented from receiving compensation by reason of the fact that he is also a director of the Corporation.

**Section 7.**

Executive Officer

**President.** The of the Corporation

President and shall

shall be the Chief have the general and

active management of the business of the Corporation and general and active supervision and direction over the other officers, agents and employees and shall see that their duties are properly performed. He shall, if present, preside at each meeting of the stockholders and of the Board of Directors and shall be an ex-officio member of all committees of the Board of Directors. He shall perform all duties incident to the office of President and Chief Executive Officer and such other duties as may from time to time be assigned to him by the Board of Directors.

**Section 8. Secretary.** The Secretary shalJ.:)(a Keep or cause to be kept in one or more books provided

for that Directors,

purpose, the minutes of the meetings of the Board of the committees of the Board of Directors and the

stockholders;)(b See that all notices are duly given in accordance with the provisions of these By-Laws and as required by law;

(c Be custodian of the records and the seal of the Corporation and affix and attest the seal to all stock certificates of the Corporation (unless the seal of the Corporation on such certificates shall be a facsimile, as hereinafter provided) and affix and attest the seal to all other documents to be executed on behalf of the Corporation under its sea1;

(See that the books, reports, statements, certificates and other documents and records required by law to be kept and filed are properly kept and filed; and

(In general, perform all the duties incident to the office of Secretary and such other duties as from time to time may be assigned to him by the Board of Directors or the President.

**Section 9. Treasurer.** The Treasurer shall be the chief financial officer of the Corporation and shall exercise general supervision over the receipt, custody, and disbursements of corporate funds. The Treasurer shall sign, make and indorse in the name of the corporation, all checks, drafts, warrants and orders for the payment of money, and pay out and dispose of same and receipts for such, and, in general, perform all the duties incident to the office of Treasurer. He shall have such further powers and duties as may be conferred upon him from time to time by the President or the Board of Directors.

**ARTICLE V <br> INDEMNIFICATION**

To the fullest extent permitted by law, the Corporation shall indemnify any director or officer of the Corporation who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suitor proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he is or was a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director, officer, agent or employee of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees), liability, loss, judg.raent, fines and amounts paid in se-:::.tlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceedings, had no reasonable cause to believe his conduct was unlawful. The termination of any action, upon a plea of nolo contendere or equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect of any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

Such indemnity shall inure to the benefit of the heirs, executors and administrators of any director or officer so indemnified pursuant to this Article. The right to indemnification under this Article shall be a contract right and shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its disposition; provided however, that, if the Delaware General Corporation Law requires, the payment of such expenses incurred in advance of the final disposition of a proceeding shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such director or officer to repay all amounts so advanced if it shall ultimately be determined that such director or officer .is not entitled to be indemnified under this Article or otherwise. Such indemnification and advancement of expenses shall be in addition to any other rights to which those directors and officers seeking indemnification and advancement of expenses may be entitled under any law, agreement, vote of stockholders, or otherwise.

Any repeal or amendment of this Article by the stockholders of the Corporation or by changes in applicable law shall, to the extent permitted by applicable law, be prospective only, and shall not adversely affect any right to indemnification or advancement of expenses of a director or officer of the Corporation exist.ing at the time of such repeal or amendment. In addition to the foregoing, the right to indemnification and advancement of expenses shall be to the fullest extent permitted by the General Corporation Law of the State of Delaware or any other applicable law and all amendments to such laws as hereafter enacted from time to time.

ARTICLE VI <br> STOCK

**Section** **1. Certifica'E:esry** holder of stock shall be entitled to have a certificate signed by or in the name of the Corporation by the Chairman of the Board of Directors, if any, or the President, and by the Secretary or an Assistant Secretary, of the Corporation, certifying the number of shares owned by him in the Corporation. Any of or all the signatures on the certificate maybe a facsimile. In case any officer, transfer agent, or registrar whohas 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 maybe issued by the Corporation with the same effect as if he were such officer, transfer agent, or registrar at the date of issue.

**Section** **2. Lost, Stolen or Destroyed Stock Certificates; Issuance of New Certificates.** The Corporation may issue a new certificate of stock in the place of any certificate theretofore issued by it, alleged to have bee:1 lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or his legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that maybe made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate.

ARTICLE VII <br> MISCELLANEOUS

**Section 1. Fiscal Year.The** fiscal year of the Corporation shall begin on the first dayof January of each year and end on the last day of December of each year.

**Section** **2. Seal.** The Board corporate seal, which shall be in Corporation and the words and figures CORPORATION, Delaware 2007".

of Directors shall provide a the form of the name of the "Corporate Seal, STRATA CAPITAL

**Section** **3. Waiver of Notice of Meetings of Stockholders, Directors and Committees.** Any written waiver of notice, signed by the person entitled to notice, whether before or after the time stated therein, 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 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, directors, or members of a coITLcuittee of directors need be specified in any written waiver of notice.

**Section 4. Interested Directors; Quorum.** No co0tract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other Corporation, partnership, association, or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or co:mmittee thereof which authorizes the contract or transaction, or solely because his or their votes are counted for such purpose, if: (1) the material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the co:Tu ittee, and the Board of Directors or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (2) the material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (3) the contract or transact.ion is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the stockholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of committee which authorizes the contract the Board of Directors or of a or transaction.

**Section 5. Form of Records.** Any records maintained by the Corporation in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or be in the form of, punch cards, magnetic tape, photographs, microphotographs, or any other information storage device, provided that the records so kept can be converted into clearly legible form within a reasonable time. The Corporation shall so convert any .records so kept upon the request of any person entitled to inspect the same.

**Section** **6. Amendments.** These By-Laws may be amended or repealed, or new By-Laws may be adopted, (1) at any annual or special meeting of the stockholders, by a majority of the total votes of the stockholders, present or in person or represented by proxy and entitled to vote on such action; provided, however, that the notice of such meeting shall have been given as provided in these By-Laws, which notice shall mention that amendment or repeal of these By-Laws, or the adoption of new By-Laws, is one of the purposes of such meeting; (2) by written consent of the stockholders pursuant to Section 10 of Article I; or (3) by action of the Board of Directors.

I, the undersigned, Secretary of the Corporation, do hereby certify that the foregoing is a true, complete, and accurate copy of the By-laws of STRATA CAPITAL CORPORATION, duly adopted by unanimous written consent of the Board of Directors on the 10th day of December, 2007, and I do further certify that these By-laws have not since been altered, amended, repealed, or rescinded, and are now in full force and effect.

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## Ex-3

**EXHIBIT 21**

State of Delaware<br> Secretary of State<br> DMslon of Corporations

Delivered 01:03 PM 11/09/2021<br> FILED 01:03 PM11/09/2021

SR 20213745176 - File Number 4471633

**CERTIFICATE OF DESIGNATION OF THE PREFERENCFB AND RIGHTS**

**OF**

**SERIF.S JI' P.REPERRED STOCK**

**OF**

**METROSPACEStINC**

The undersigned, Oscar Brito, does hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. He i$ the duly acting Chief Executive Officer of METROSPACBS, INC., a corporation organized and existing under the General C.Orporation Law of the State of Delaware (the <u>n,oration")</u>.

.B. Pu.nuant toauthority conferred upon the Board ofDil'\,':Ctorsby the Certificate of lncoiporation of the Corporation, as amended, and pursuant to Ole provisions of Section 1*S* l of the Delaware General Corporation Law,said Board of Directors, pursuant to taking action by written consent Qtl Octobe.r *3,*20211 approved and adopted a re.&0lution, pursuant to itsauthority asaforesaid, to (l} fix the rights, p:refciences, privileges and restrictions o and thenumber of shares.comprising,oftheC".orporation'sSeries F Preferred Stock, and (2) toauthorize this Certificate of Designation for the Series F P:referredStock, the corporation has the Q.uthority to i$$ue, as follows:

RESOLVED, that the Board of Ditecn>r$, pursuant to authority given by the Corporation's C,ertificate of Incorporation. does hereby provide for the iS$uance of a series of preferred stock for cash or exchange of other securities, rights or p-roperty, and does hereby f'1x. and detennine the rights, p:references.1 privileges and rest.rictions, and the number of shares con$tituting such Series. and other matters relating to the Seri.ea F Preferred St.ode and thedesignation of such serie•s ..set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Board ofDiteetorsdoes hereby provide for the issuance ofa seriC$ of prefened stock for cash or exchange of other securities, rights or property and does hereby fix and determine the right$, pref privileges and restrictions and the.number of shares and other matters relating to the Series. F Prefem:d Stoc asfollows:

**TERMS OF SERIFS F PREFERRED STOCK**

A serie, of prefeiwd stock of Metros.paces, Inc,i a Delaware coqloration (the ' pany..)is hereby designated 8$"Series F C.Onvertiblc Preferred Stock" in the amount of 30,000 shares (the"Series. FConvertible Preferred Stock''),having the following rightsand preferen :

<u>Section 1.</u> Def'mitions. For the purposes hereof, the foJlowing tem1'$hall have the following meanings:

<u>"Affiliate"</u> means any Person that,, direotly orindirectly through oneormore intermediaries, controls oriscontrolled byor isunder common control with a Person, assuch tenna areused inand construed und.er Rule *405* of the Securities Act,

![](image_002.gif)0<u>AltemateConsideration"</u>$hall have the meaning *set* forth in Section 7(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•lBankry.ptcy Event'•</u> means any of the following events: {a) the Corporation or any Significant Sub$idia1.y (assu.ch term is defined in Rule l..o2(w) ofRegulation S•X) thereof oommences acase orother proceeding under any bankruptcy, :reorganization, arrangement, adjustment of deb relief of debtoni, dissolution, insolvency or liquidation or silnilar law of any jurisdiction relating: to the Corporation orany Significant Subsidiary thereof, (b) there is commenced against the Corporation or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within sixty (60) days after commencement, (c) the Corporation or any Significant Subsidiary thereof is adj\ldicated insolvent or bankrupt or any order of n:lief or other order approving any such case or proceeding is entered,.(d) 1he Corporation orany Significant Subsidiary 1hereof auffers any appointment of any custodian or the like for it oranysubstantial part o.fits property that is notdischarged outayed within sixty (<,O) calendar days after such appointment, (e) the Corporation or any Significant Subsidiary then:of makes a general assignment for the benefit *of* creditors, (f) the Corporation orany Significant Subsidiary thereof cal.ls a meeting of its cnxlitors with a view to arranging a composition, adjustment or re\Structuring of its debts, or (g) 1he Corporation or any Significant Subsidiruy thereof, byanyactorfailure toact,expn!$Sly indicates itJconsent to approval oforacquiescenceinanyof the foregoing or take,anycorporate orotheraction for thepu,pose of e,trecting any of the foregoing,

<u>i•Beneficial Ownership Limitation"</u> shall have the meaning $et:forth in Section S(d).

![](image_003.gif)0<u>J3u&ines&Day"</u> means any dayexcept nny Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized orrequired by law orother governmental action toclose,

<u>"Bu)":m •</u> shall have the meaning set forth in S tion S(cXiv).

<u>..O:tattge of Control Transaction'</u> mean$ the occurrence after the date h.ereof *of* any of (a) an acquisition afte.r thedate heiwfby anindividual orlegal entity or"group' (asdescribed in Rule I3d•S(b)(I) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership ofcapital stock of theCorporation, bycontract orotherwise) of in excess of 4 /4 of thevoting securities of the Corporation (othe.rthan bymeans ofconversion or exercise of Pre.fened Stock and theSecurities issued together with the Prefeaed S k),(b) the Corporation merges intoorconsolidates with any other Perso orany Person merges into orconsolidates with the C.orporation and, after giving effect tosuch tramaction, the stockholders of the Corporation immediately prior to such tnmsaction own less than 33% of the Qgg?egate voting power of theCorporation or thesuccessor entity of such tl'an$action, (c) theCorporation sells or trall$fers all orsubstantiallyall ofitsassets t<.HlnQther Personand ille$t0Ckholde1Sof theCorporation immediately prior to such transaction own less than 33% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a one year peric;,d of mQre than one--half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Js.,;ue Date (or by those individuals who are serving as members of the Board of Di:recrors on any date whose nomination to the Board of Directors wasapproved by a majority of the members of the Board of Directors who are members on the Original Tu.sue Date)1 or (e) theexecution by the Corporation of an agreement to which theCorporation is a party or by which it is boun providing for any of theevents set forth in clauses (a) through (d}above.

<u>'Oosing'</u> means the closing of thepurchase andsale of the Securities pursuant toSection 2.1 of the n.-s.pective Purchase Asreeme.nts.

<u>"Closine Date</u>' me.ans theapplicable Tracling Day on which all of theT,ransaction Doc,uments .have been exec·uted and deliv¢1'¢1d by the applicable parties thereto and all conditions precedent to (i) each Holder s obligations to pay theSubscription Amount fora CJos:ing and (ii) the Corporation's obligations to deliver theSecurities have been satisfied or waived.

<u>'•C.Ommission</u>' or the• means the United States Securities and Exchange Commission.

<u>..Common Stock',</u> m s the Corporation's CQJllltlOn stock. par value $0.00I per share, and stock of any other clas..i of securities into which such seeurities may hereafter be reclassified orchanged.

<u>''Cbmmon Stock F.qyivalenfs,</u>, means any securities of the Corporation or the Su idiari.es which wQU:ld entitle the holder thereof to acquire at any time Common Stoc in(:luding, without limitation1 any debt, prefened stock, rights, options. warrants or other instrument that is at any time convertibJe into or e,-.:erciiableor exchangeable for; or otherwise entitles theholder thereof to receive, C.Ommon Stock,

<u>' nversion Amount''</u> means the Jum of the Stated Value at i$sue.

<u>nversion Date'"</u>shall have the meaning setforth in Section **S(a).**

<u>ueonversion Pried</u>' shall have the meaning set forth in Section S(b).

![](image_004.gif)4'('.onversion Shares" means, collectively, the shares of Common Stock i.$$:uable upon oonversion of the$hares ofPreferred Stock in aCQ>rdante with the temIS hereof. <u><br> "0,rporation Redemption'•</u> has the meaning set forth in Section 8.<br>

<u>uO:>rpomtion</u> <u>Redemption Price"</u> ha$ the meaning set forth in Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•'Cbrponttion Redemption Payment Date"</u> has the meaning set forth in Section 8.

<u>,ic.orporationRedemption Notice'</u> bu the meuning set forth in Section 8.

<u>nnesignation. Amount and Par Value"</u> The seriof preferred stock shall be designated as Series F Ulnvertible Preferred Stock and the number *of* shares so designated $hall be up to 30,000 shares (which shall not be:subject to increase without tbe written consent of all of the Holders of the Preferred Stock). Each share of Preferred Stock shall have a par value of$0.00l pershare and a stated value of$100, $Ubject to incset forth in Section 3 and/or elsewhere in tbiJCertificate of Designation below.

<u>UUI'C"</u> means the Depository Trust Company..

<u>0Dl'CIFAST Program"</u> means the DTC's Fast Automated SeQurities Ttan$fet Program.

<u>"Dividend" shall</u> have the meaningset forth in Section *2.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● <u>owAc Eligible1</u> means that(a) the Common S10Ck is eligible at DTC forfull $C1Vices pursuant to DTC's tionat Arrangements, including without limitation transfer through DTC's DWAC system, (b) the Corporation has been approved (without revocation) by the DTCs underwriting department, (c) the Transfer Agent is approved asanagent in theDTC/FAST Program, (d)OreConversion Shares areotherwise eligible for delivery via DWAC, and (e) the Transfer Agent does not have a policy prohibiting or limiting delivery of the ConversiQn Shares via DWAC.

<u>"&change Act••</u> means 1he Secµrities F..x.change *Act* of 1934} *as* amended, and the ndes aniegulations promulgated thereunder,

<u>York Courts"</u> shall have the meaning set forth in Section l2(d), <u>uFundrunenta.lTransaction.,</u> shall have the meaning set forth in S«tion 7(e). <u>'•GA.AP'•</u> meanJ United Stares generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•Holders••</u> means Holders of the Prefened Stoc:k.

<u>'"Indemnified Party•</u> shall have the meaning set forth in Section l l(f).

![](image_007.gif)0<u>1ndebtednes.s'•</u>means (a) any liabilities for borrowed money oramount$owed in execs., of$10,000 (other than trade acoounts payable incumxl in. the ordinary course of business), (b) au g,1aranties, endorsements andotheroontinge.ntobligations in respect ofindebte

are or should be reflected in the Corporation's balance sheet (or the notes thereto), except guaranties l)y endo:r:sement. of negotiable instruments- for depo$it or collection or similar transaction& in the ordinary course of business, and (c) the present value of any lease payments in excess of $10,000 due under leases iequired tQ be capitaliud in ac;;COl'dan<» with OAAP,

<u>"Junior Securities"</u> means the Common Stock and all other Common Stock Fquivalents of the Corporation other th.an those securities which are explicitly senior or <u>pari passu</u> to the Preferred Stock in. dividend righb or liquidation prefetence.

![](image_008.gif)0<u>Late F••</u> shallhave the meaning set forlh in Section 2(d).

f'Li@I" means a lien.,, charge, security interest, encumbrance, right of .first refusal, p.t\'remptive right orother restriction.

<u>''Uquidation,</u>.shall have the meaning set forth in Section 4.

<u>..losses'</u>'shall have the meaning set forth in Section 1 l(t).

<u>"Noticeof Conversion''</u> shall have the meaning set forth in Section *S.*

 

<u>"Orighud IwJe Date •</u> means the date of the first. issuance of any shares of the Preferred Stock regardless of the number of transfers of any particular S.hares of Preferred Stock: and regardless of the munber of certificates. which may be issued to evidence such Prefemxi Stock.

<u>"Pennitted Governmental Indebtedness'</u>' means Indebtedness for thepurpose ofsupporting product sales by the Borrower.

<u>..Permitted Indebtedness"</u> means (i))IndebtednC$$ of the Corporation set fQrth inCorporation,• most SEC reportfiledwith theSECbytheCorporationonForm 10-QorForm 10-K(the <u>•JSECR.epwts")</u> provided none of such Indebtedness., has been inc,n.,ased, exwnded and/or othe.rwise changed), (ii) Indebtedness ed by Permitted Lien$ described in clausesH(rnr of the dt;,futition of Permitted Liens, and (iv) Permitted Oovemmen:tal Indebtedness.

<u>n"</u> means an individual or corporati.(ln, partnet$.hip, trust, incorporated or unincorporated association., joint venture, limited liability (Ompany. joint stock company .suvernment (or an agency or subdivision thereof) or other entity of any kind.

<u>"Pig,:.y Back ReGJstration"</u> shall have the meaning set forth in Section 11(a). <u>Hf>referred Stock"</u>$.hall mean Series F Convertible Preferred Stock, <u>I$Premium Rare,.</u> shall have the meaning $Ct forthin Section 8(a).

<u>uPuro'hase Agreement"</u> means that certain Securities Purchase A ment, dated on or abou.t the Original Is.sue Date, among the Corporation and the original Holder al!! amended, modified or supplemented from time totime in accordance with itsterms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Reeistration S1atement"</u> shall have the meaning set:forth in Section l l(a).

![](image_010.gif)0<u>Securities"</u> mean$ the Preferred Stock and the Underlying Shares.

<u>"Securities Act'</u>' means the Securities Act of 1933., as amended, and the rules and regulations promulgated thereunder.

<u>"'Share</u> <u>Delivei:y Date"</u>shall have the meaning set forth in Section S(c)(i).

<u>uStated Vat:ue't</u> $hall mean $100.001 subject to increase set forth in Section 3and/or elsewhere in this Certificate ofllesignation.

<u>"Subscription Amount'•</u> shall mean, as to each Hokier., the aggregate amount to be.paid for the Preferred Stock pu:rcha..the signature page of the Purcba.,i;e A ent,and next to the beading "Subscrip1fon Amoun\,. in United States dollars and in immediately available funds,

<u>'\*Suhsid:iazy'</u>'means anysubsidiary of theCorponition asset forth on <u>Schedule3.1{a</u>) of1he Purchase Agreement and shalt, where applicable, also include any direct or indirectsubsidiary of the Corporation formed oracquired after the dateof the Purchase Agreement,

<u>"& rEntity •</u> shall have the meaning *set* forth in Section 3.

<u>''Trading Day or D«te"</u> means a dayon which the principal Tl'ading Market isopen for busine&.$.

<u>\*'Trading Market"</u> means any of the .following markets or exchan8e.i on which the Common S10Ck (or any othercommon stock of anyother Person that references theTrading Market for it&common stock) is listed orquoted for tradingon thedate inquestion; The NASDAQ Global Market,The NASDAQ Global Select Market, The NASDAQ Capital Market, the New York Stock Exchange, NYSE Area. the NYSE MKT, or theOTCQX Marketplace1 the OTCQB Marketplace. theOTC Pink Marketplace or any other tier of the OTC LinkATS operated by OTC Markets Group Inc. (or any ,uccessor to any of theforegoing),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•'Transaction Documents'</u> means thisC,ertificate of'Designation thePurchase Agreement, all e.xhibits and sdledules thereto and here1o and any other documents or agn:ements executed in.connection with the transactions contemplated pursuant to the Purchase Agreement.

![](image_011.gif)4<u>"J'nmsfer Agent"</u> means Empire Stock Transfer Inc... and any successor transfer agent of the O>mpany.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•Vfriggering Event"</u> shall have the meaning set forth in Section lO(a),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>•Vfriggering Redemption Amount''</u> mea foreach shareof Preferred Stock, thesum of (a) 135%of the Stated Value and fl>) all accrued but unpaid dividends thereon and (e) all liquidated damages, LateFees and other costs, expenses or amol.lllts due in respect of the Prefem:d Stock including, but not limited to legal feesand expenses of legal oounsel to the Hokier in connection with, related toand/or arisin.g out ofa Triggering: 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;&nbsp;&nbsp;&nbsp;&nbsp;<u>•'Tri,:gering Redemption Pqment Date'•</u>shall have the meaning set forth in Section lO(b),

<u>"Underlying Sbare,t></u> means theshares of Common Stock issued and is.suable upon conversion of1he **Preferred Stock**

<u>Section 2</u>. <u>Dividends.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Diyideru:,1$ in <;ash or in Kind,</u> &ch share of Preferred Stock ah.all be entitled to receive, and the Corporation shall pay, cumulative dividends of nine percent {9%) per annum, payable quarterly, beginningon theOriginal Issuance Date andending on thedate that such share of ferred Share has been oonverted orreooemed (<u>"'Dividend EndPam'1·</u> Dividend$ may bepaid in ca.sh or in shares of Prefemxl Stock at the di$Cretion of theC.Ompany,

{b) <u>Participating Dividendson AS::(hnverted Basis.</u> From and after th initial Closin.g Datet in addition to the payment of dividends pursuant to Section 2(a), each Holder shall be entitled to receive,. and the Corporation. $hall pay, dividends on sb$res of Preferred Stock equal to (on an as...if convertcd.,to-Co.tnm()n-.Stook basis) and in the $lime form as dividends actually paid on shares of the Common Stock when,.asand ifiuch dividend$arepaid on shares of the Common Stock, TheCorporation shallp!iy nodividend.$ on sh.ares of the Common Stock unless it .simultaneously complies with the previous sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>:</u><u>Dividend Calculatigns,</u> Subject to ti.on 3(a},. dividends on the Preferred Stock shalt be calculated on the basisofa 360;,(fay year.>consistingof twelve (t 2) thirty (30)calendar dayperiods, and shall acorue and compound daily commencing on the Original Issue Date, and shall be deemed to accme ftom such date whether or not e:amed ordeclared and whether or not thei:e are profits wrplus or 0th.er tunds of the Corporation legally available for the payment *of* dividends. Dividends shall Cea# to ace.rue with respect toany Prefem:d Stock redeemed or convertedi provided that the Onporation actually delivers the Conversion Shares within the timeperiodrequired by Section 6(e)(i) herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Late Fees.</u> Anydividends thatare not pa.id a Dividend Payment Dateshallcontinue to accrue and shall entail a la.te fee<u>("Late F '')l</u> which must be paid.in cash, at the rate of 18% per-annum or the lesser rate permitted. by applicable law which shall accrue and compound daily from the Dividend Payment. Date through and in(:luding the date o.factual payment in fuU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>O t Securities</u>. So long *as* any Preferred Stock shall remain oufst$lding, neither the Corporation nor any Subsidiary thereof shall redeem, purchase or otherwise acquire directly or indirectly Junior Securities or <u>pari pas.su</u> securities other than any Preferred Stock purchased to the terms of this Certificate of Designation. So kmg as any Preferred Stock shall remain outstanding, neither theCorporation nor anySubsidiary thereof shall directly or indirectly pay ordeclare any dividend or make any distribution upon (other than a dividend or di$tribution described in Section 2 or dividends due and paid in the ordiruuy course on preferred stock of the Coiporation at iuch times when the Corporation is in compliance with itspaymentand otherobligations hereunder), nor shall any distribution be made in respect of, any Junior Securities or<u>pan passu</u> securities aslong asanydividends dueon the Preferred Stock remain unpaid, nor $hall any monies be set aside for orapplied to the pu.n::base or redemption (through a sinking fund orotherwise) of any JUllior Securitiea or <u>pari papu</u> securities.

<u>Seetjm3, Yotm,gRigbts.</u> The Preferred Stock will benonvotingunti.t such *time .*asoonverled into sha:res of Common Stock. However as long as any $bares of Preferred Stock are ou.1:$tandin. the Corporation $hall not. withor .rights given to the .Preferred Stock or alter or amend this Certificate o:f Designation, (b) authorize or

cl'e(lte any cl8S$ of stock ranking as to·redemption or distribution of assets upon a Liquidation (as defined in Section 5) senior to., orotherwise <u>pari pasgu</u> with-> the Preferred Stock: or.•authorize orereate any cl8$Sof stock ranking *as* todividends senior to, or otherwise <u>pari passu</u> with, the Prefened Stock, (e) amend its Articles of lnoorporation or othercharter document& inany manner thatadvemely affects any rights of the Holders, (d) increase the number of authoimxl shares of Preferred St.Qck, or (e) enter into any agreement with respect to any of the foregoing.

<u>Section 4, Liquidation.</u> Upon any liquidation, dissolution. or winding--up of the Corporation, whethervolunuuyorinvoluntary (a.<u>"Uguidatioo'')</u>, the Holders sha11 beentitled to Ive outof theassets, whether capital orsurplus, of the Corporation anamountequal to the Triggering Redemption Amount, for eachshare of Prefemxl Stock before anydistributionor payment shall he made to theholders of any Junior Securities, and if the as.set, of the Corporation $hall be insufficient to pay in full such amounts, then the entire assets to be distributed to the Holders shall be rntably distributed among the Holders in accordance with the n,;spective amounts. that would bepayable on such shares ifall amounts payable theJCOn were paid in full. A Flllldamental Transaction or Change of Control Transaction shall not bedeemed a Liquidation. The Coiporation shall mail written nQtice ofany such Liquidationf not less than -,rty..five (45) &lys prior tQ the yayment date stated therein, toeach Holder.

<u>Sections.</u> <u>Conversion.</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Conversions at: Option of Holder. Each share of Preferred Stock shall be convertible, at any time and from time to time from and after the Original Issue Date at the option of the Holder thereof; intQ that number of share$ of C.ommon Stock (subject to the limitations set forth in Section S(d)) determined by dividing the Stated Value of such share of Preferred Stock by the Conversion Price. Holder-& a.ball effect conversions by providing 'the Corporation with the form Qf.con:version notice attached heroto as <u>AJmex A</u> (a <u>'Notice of Conversion').</u> &Qh Notice of Conversion shall specify the number of sharesof Preferred Stock tobe convertedf thenumber of share$ of Preferred Stock owned prior to the conversion at issue, the number ofshares of Prefer.red Stock owned subsequent to the conversion at issue and the date on which $uch conversion is t<> be effected, which date may not be prior to the date the applicable Holder delivers by facsimile or(}mail such Notice of Conversion to the Corporation (such date.. the<u>"Conversiop!)ate")</u>. If noConver.sion Dateisspecified in a Notice ofConversion, the Convemion Date shall be theda.te thatsuch Notice of Conversion to th.eCorpomtion i$.deemed delivered henmnder. Noink original Nod.cc of Conversion shall be required, nor shall any medallion guarantee (or other type. of guarantee or notarization) of any Notice of Conversion form be required, The calculations and entries set forth in the Notice of Conversion ahall control in theabsence of manifest or mathematical error, To effect conversions of shares of Preferred Stock. a Holder shall not be requited to surrender the certifica.te{s) representing the share8 of Preferred Stock to• the C.orporation unleu all of the shares of Preferred Stock p.re-aentedthereby are converted, in which case such Holder shall deliver the eertifiC$t.C. representing such shares ofPreferred Stock promptly following the Conversion Date at issue.Shares of Preferred Stock converted intoCommon Stock or redeemed in ac ordance with the terms hereof shall becanceled and shall not be reissued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) ![](image_012.gif)<u>Conversion Price,</u> Theconversion price (the0<u>Conversion **Price'')**</u> for thePreferred Stock shall be the amount equal t.o the Stated Value of each $hare of Preferred Stock, together with any

.ecerued butunpaiddividend.sandliquidated damages alldivided by$O.000S per share. By way ofexample> if the Stated Value ofa$hare of Pref Stock is equal to$l00.00 and there were noaccrued but unpaid dividends or liquidated damages. the C.Onversion Prioe would $100,00 divided by $0.000S :resulting in 200i000 Convet'$ion Shart,s, All such foregoingdetemrinations will beappropriately adjusted for anystock dividend., stock split, stock 00:mbinatiQn, reclassification or similar t:n,msaction that proportionately deereases or inc:re.ases the Common Stock during such .measuring period. Nothing herein shall lixnit a Holder's right to pursue actual damages including but not limited to. as a result of a Triggering Event

pursuant to Section IO heroof and the Holder shall have the right to pursue alt remedies available to it hereunder, at law or in equity including, without Iimi1ation1 a decree of specific pcrfon.nance and/or injunctive relief., The exercise of any such rights shall not prohibit. Ole Holder from seeking to enforce damages pursuant to any other Section hereofor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics ofConversion.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Delivery of Conversion Shares Upon Conveg.ion.</u> Not lat.er
than two (2)
Trading Days after eachConvei,ion . Date(the <u>''Sluu'e</u> <u>. DeliveryDate"),</u> theC-Orporation shall deliver, or awse tobe delivered to theconverting; Holder (A) the nlUllber of
Conversion Share.$ being acquited upon the conversion of the Preferred Stock, which Conversion S . hare$shall
be free of restrictive legend.$ and trading restrictions. and (B) a bankcheck in theamount ofaccrued
and unpaiddividends(if the Corporation has elected or ia required topay accrued dividends in cash).
TheCorporation shalt deliver theConvel'$ion Shares electronically through th . e
Depository TTI.1$t Company oranoth . er
established clearing corporation performing similar functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Failu.re to Deliver Conversion Shan:,s</u>. If, in the case of any Notice of C'.onvel'$ion, such Conversion Share.s are not deliven:d to or as directed by the applicable Holder by the *Share:* Delivery Date, the Holder shall beentitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares. to rescind such Conversion, in which. event the Corporation $ball promptly retum to the Holder any o.rigin,al Preferred Stock certificate delivered to·the Corporation and the Holde.r shall pl1.)mptly return to theCorporation the Conversion Shares issued tosuch HolderpW'lluant to1he n:scinded C-0nversion Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Ohliption Absolute; Partial Liquidated Damages.</u> The C.Orporation's obligation to is!Sue and deliver the Conversion Shares upon conversion of Pn:ferred Stock in accordance with the1erms hereof areaooolute andunconditional, i.rre$pective of any action or inaction by a Holder to enforce thesame,any waiver orconsent with pect to anyprovis.ion hereo(thel\'JCOveryof anyjudgment against any Pe1'80n or any action to enforce the same, or any setotr. counterelaim, reooupmen4 limitation or tennination, orany bteaeh or alleged b h by auch Holder or any other Person ofany obligation w the Corporationoranyviolationor11.lJeged violation a.flaw by such Holderorany otherperson, and i pective of any other circums1'1.nce which mipt otherwise limit $UCh obligation of the Corporation to iuch. Holder in connection with the issuance of such Conversion Share$; <u>provided, however</u> , that $uch delivery shall not:operate as a waiver by the C:Orporation of anys.uch action that theCorporation may have agaiD$1 such Holder. In the event a Holdeuhall electtoconvert any orall of the Stated Value ofits Pn;,ierred Stock, the C..orporation may not *refuse* conversion based on any claim that such Holder or any one 8$$0Ciated or affiliated with such Holder h.\18 been engaged in. any vioJation of law, agreement or for any other reason, unle.$$ an injunction :ftom acowt, <)nnotice to Holder, restrnining and/orenjoiningconvcndonof allor part of the Preferred Stock of $ueh Holder mall have been sought and obtained. and the Corporation posts a surety bond for the benefit of such Holder in the amount of l 50-/o of the S1ated Value of Preferred Stock which is subject to the injunction. which bond shall remain in effect until the completion. of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it obtainsjudgment. In theabsence ofsuch injunctio theC.Orporntion shall issue Conversion Shtll'CS and, if applicable, cash, upon a properly noticed conversion. If theCorporation fails .to deliver to a Holder such Conversion Shares pUI$uant to Sectic:>n *S* on thesecond Tmding 'Day after the Share D livery Dateapplicable tosuch conversion, theCorporation shall pay to suchHolder, incash, as liquidated damage$ and notas a,penalty. fo:r each $2000 of S1ated Value of Prefetred Stock being converted, $100 perTrading Day (in.creasing to$150 per Trading Day on the third Trading Dayand in.creasing to$200 per Trading Day on tb.e sixth Trading Day after such damages begin to accrue) for each Trading .Day fl.er such $e00nd Truding Day after the Share Delivery Date until such Conversion Shares are delivered or Holder res<:inds such conversion. All liquidated damages $hall be paid to the Holder not later than the fifth { *S* Trading

Day after notice is provided to the Company by the Holder stating that any such liquidated damages are due pursuant to this Section$. Nothing, herein shall limit a Holder's right to p\11'Sue actual damages Qr declare a Triggering Event pursuant to Section lOhereof for theCorporation's failure todeliverConversion Shares within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity in lud.ing, without limitation, adeciw ofspecifi(rperformance and/or injunctive relief. Theexercise of any such rights &hall n.otprohibit a Holder from seeking toenforce damages pursuant toany other Section heiwf orunder 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;&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) Chmpensation for Buy<u>..</u><u>Jn on Failure to Timely Deliver Conversion Sh.ares Upon Conversion.</u> In addition to anyother rights available to the Holder, if the Corporation fails for any reason to deliver to a Holder the applicable Conversion Shares by the Share Delivery Date pursuant to Sections. and if af\er such Share Delivery Date such Holder is required by i1s brokerage rum to purchase (in anopen market transaction orotherwise), or the Holder'sbrokerage fum otherwisepun;:hues, shares of Common Stock to deliver in satisfaction of a sate by such,Holder of the Conversion Shares which such Holder was entitled to receive upon theconversion relating tosuch Share Delivery Date (a0<u>Buy-In'•),</u> then the Coiporation shall (A) pay in cash. to such. Holder (in addition to any other remedies avail.able to or elected by such Holder) theamoun if any, by which (x) such Holder'& total pun;hase price (mctudingany brokerage commissions) for theCommon Stock so purchased exceeds (y) theproduct of (1) the aggregate D1Jmber of shares of Common Stock truu•such Holder was ent,itled to receive ftom. the conversion at issue multiplied by (2) the actual sale price at wbkh the sell order giving rise to au.eh purchase obligation was executed (including any bn>kerage commluions) and (B) at the option of such Holder, either reissue (if surrendered) the shares of Preferred S1ock:equal to thenumber of shares of Preferred Stock submitted for conversion (in which (:8$¢,, suchconvel'$ionshall bedeemed rescinded) ordelivertosuch Holder the number of shares of Common S1odc that would.have been issued if the Corporation had timely complied with its delivery requirements mder Section *S.*Forexample, ifa Holderpun:h.asesshares ofCommon StoC.k ving a total purchase price of $11,000 torover a Buy..In with respect to a.n attempted conversion of shares of Preferred Stock with respect to which the actual sale price of the Conversion Shares {including any brokerage commissions) giving rise tosuch pun::;hase obligation a total of$l0>000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay sueh Holder $1,000. The paymen.t of all amounts due by theC.Ompany to the Holder shall bepaid in cash no later than the fifth{5) BU$U1ess Day after notice is provided by a Holder to the Company requesting the payment of any such liquidateddamag .TheHolder shall provide theCorpomtion written noticeindicating theamounui payable to such Holder in respect .o.fthe Buy-In and, upon request.of the CQrporation, evidence of the amount of such los.s, Nothing hereinshatl limit a Holder's ript to pursue anyother remedies available to it hereunder, at law or in equity :including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Corporation's failure to timely deliver ilte Convenrion Shares upon conversion of the shares.of Preferred Stock as required pursuant to the term., 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Reservation of Shares !Issuable Upon Conversion,</u> The O;mpany wvenants that, it will reserve and keep available out of its authorized and unissued shares of Common Stock a number of shares of Q>mmon Stock at least equal to 300% of the Required Minimum for the sole purpose of issuance upon conversion of the P .Stock and payment of dividends on the Preferred Stock, all as herein provided? ·:free from preemptive rights or anyother actual contingent purchase rights of Persons other than thePu:rehuers, not le§ than such aggregate number 0cfshares of theCommon Stock *as* shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking in1o nccount the a(ljustments and 1"lStrictions of Section 71 but ignoring any Beneficial Ownership Limitations orother restrictions and/or limitations onconversions set forth herein orehiewhere) upon the C(mversion of the then ding shares of the Preferred Stock and pr1yment of dividends hereunder, The Company covenants that all shares of Common Stock that :shall be so issuable shall, upon issue1 beduly autb.orized, validly i$.sued, fully paid and nona:s,se;ssable, and at such timet as a regi$ttation statement covering such shares is then efreclive underthe Securities Act, will beregi&tered for puolic resale inaccordance withsuch

registration statement. For pwposcs of this Certification of Designation, the tcnn <u>''Reqyired Minimum"</u> shall be defined as the product of (i) J000/4, multiplied by (ii) thequotient of (A)(x) all outstanding Stated Value of all issued and outstanding shares of the Preferred Stock, (y) all unpaid dividends thereon (whether accrued or not), and (z) all fees and/or any costs and expenses relating to the Transaction Documents including, but not limited to Late Fees and liquidation damages, divided by (B) the C-onversion Price on the date of Oosing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Fractional Shares</u>. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon suchconversion, the Corporation shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal tosuch ftaction multiplied by the Conversion Price or round up to the next whole 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Transfer Taxes and &penses.</u> The issuance of Conversion Shares on conversion of this <u>Preferred</u> Stock shall be made withoutcharge to any Holder for any documentaiy stamp orsimilar tax.ea that may be payable in respect of the issue ordelivery of such Conversion Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance anddelivery of anysuch Conversion Shares upon conversion in a name other than that of the Holders of such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unlessor until the Penk>n or Persons requesting the issuance thenx>f shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid. In the event that the Holder requests same-dlly processing for a Notice ofConversion, such Holder shall pay all Transfer Agent fees required for such same-day processing and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Beneficial Ownership Limitation.</u> TheCorporation shall not effect any conversion of the Preferred Stock, and a Holder shall not have the right toconvert any portion of the Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable Notice of Conversion, such HoldCI (together ·with such Holder's Affiliates, and any Persons acting as a group together with such Holder or any of such Holder's Affiliates) would beneficially OO-'ll in excess of the Beneficial Ownership Limi1ation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of the Preferred Stock with re;pect to which such determination is being made, but shall exclude the number ofshares of Common Stock which are issuable upon (i) conversion of the <u>remaining,</u> unconverted Stated Value of Preferred Stock beneficially owned by such Holder or any of its Affiliates and (ii) eitercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Preferred Stock or the Warrants) beneficially owned by such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section S(d}, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exdumge Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section S(d) applies, the determination of whether the Preferred Stock isconvertible (in relation toother securities owned by such Holder 1ogether with any Affiliates) and of bow many shares of Preferred Stock a.re convertible shall be in the sole discretion of such Holder. and thesubmission ofa Notice ofConversion shall be deemed to be such Holder's detennination of whether the shares of Preferred Stock may be converted (in relation toother securities owned bysuch Holder together with any Affiliates) and how mnny shares of the Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. Toensurecompliance with this restriction. the Holder will bedeemed to represent totheCorporationeach time it delivers a Notice of Conversion that such Notice of Conversion hasnot violated the restrictions set forth in this paragraph and the Corporation shall have no obligation to verify or confirm the accuracy of

such determination, In addition, a detennination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the .rules and rcgulatioru; promulgated thereunder; For purposesof this Section S(d), indetermining thenumber ofoutstanding shares of Common Stock, tie Holder may rely on the number of outstanding shares of Comm.on Stock 8$ stated in the most recent of the following: (i) the Corporation.'s most recent periodic orannual report filed wi1h the C..ommissiont as the case may *be,* (H) a more recent public announcement by the Corporation or (iii) a more recent written notice by theCorporation or the Transfer Agent. setting forth the number of shares of Common Stock outstanding. UpQn the written o:roral request of a Holder, theCorporation shall within two (2)TradingDays confirm orally and in writing tosuch Holder the numberof shares.ofCommon Stock then outstanding. In .any case.• the number of outs1anding shares of Common Stock shall be determined after gjving effect to theCQDversion or exercise of securities of the CorporationJ including the Prefemxi Stoc bysuch Holder or its Affiliates since the date as of whichsuch number of outstanding shares of Common Stock was reported. The0<u>Beneficial Ownership Limitation''</u> $hall be 4.99% of thenumber of shares of the Chnunon Stock ou.ts1anding immediately .after giving effect to the issuance of shares of Common Stock issuable upon conversion of Preferred Stock held by theapplicable Holder.

<u>Section 6.</u> <u>fln:tentionally Omitted],</u>

<u>s«uon7.</u> <u>Certain A</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Stock Splits</u>, If the Corporation, at any time while this Preferred StoQk isoutstanding: (i}pays a stock dividend or otherwise makes a distribution ordistributions that is payable in share$ of Common Stock on sha.n:$ of Common Stock or any other Common Stock F.quivalents (which, for avoidance of doubt, shall not in£Jude any shares of Common Stock i.,;aued by the Corporation uPQn oonversion of, or payment of a dividend on. the Preferred Stock), (_ii) subdivides outstanding shares of Common Stock into a larger numberof (iii) QQmbines (including by way <>fa reverse stock split) outstandi:ngshare$0fCommonStock intoa smallernumberof$hares, or(iv) issues, in theeventof a iwlas.sification of$haresof the Common Stock, any shareaof capital stock of theCorporation, then theConversion Price shall be multiplied by a :fiaction of wh h the numerator shall bethenumber of

$hare.a of Common Stock {excluding any U\'la$ury shares of the Corporation) ou1standing immediately before such. eve and of which the denominator shall be the number of shares of Common Stock outstanding immediately after suchevent, Any adju.stment made punuant to this tion 7(a) shall become effective immediately after the· record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in 1he cue of a subdivision, combination or re--c 'tion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Most Favored Nation Provision.</u> From the date hereof until the date when the Holder·nolonger holds. any Preferred Stock, upon any issuance by theCompany or any of its Su.bs.i .ries ofCommon Stock orCommon Stock Equivalents forcuheonsi®ration,Indebtedness ora combination of units thereof (a <u>'•Sub:seguent Financing")J</u> the Holder may elect, in its sole discretiont to exchange (in lieu of conveI1,ion), if applicablef all orsome of the shares of Prefemxl Stock then held for any securities or units iuued in a Subsequent Financing on a $1.00for$1.00 basis. The Company shall provide the Holder with notice of any such Subsequent Financing in the manner set forth below Additionally, if in such Subsequent Financing the.re areanycontractual proviaions orside letters that provide terms more favoraWe to theinvestors than the tennsprovided forhereundei;, then theC:Ompany shallspecifically notify the Holder of s1.1ch additional or more favorable 1ellll$ and such terms. at Holder's optio shall become a part of the tmnsactiondOQuments with tho Holder. Thetypes of terms contained inanother s«:urity that may be more iworable to the holder of such security include, but are not limited to, terms addressing stock sale price, privaw placement price per share, and warrant coverage, For purposes of illus.tration, if a Subsequent Financing were to occur whereby the Company sell$ and issues a convertible note with a conversion price that includes a discount to themarket price of itsCommon Stock., the Holder will be entitled to receive the

same convertible note on the exact $Mle temt.$ on adoUar for dollar basis via the exchange of the Series F Preferred Stock the Holder bolds on the date of the sale and issof the convertible note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Subsequent Rights Offerings.</u> In addition to any adjustments pursuant to Section 7(a)abovet if atany time theCorporation grants, issues or sells anyCommon Stock Equivalents or rights to purchase stock, warrants. securities or other property _pro rata to the recom holders ofany class of shares ofCommon Stock (the <u>"Purohase Righta"),</u> then the Holder of will beentitled. to acquire, upon th.e terms applicable to such Purchase Right$, the aggregate Purchase Rights which th¢ Holder could have acquired if 1he Holder had held the number of :i,hares of Common·St.ock acquirable upon complete oonversionof such Holder's Preferred Swck (withoutregardtoany limitationsonexercise hereo(including without limitation, the Beneficial Ownership Limitation) immediately before1he dateon which a recQrd is taken for1he gmn4 imiance or sale of such Purchase Rights, or, if no such record is taken, the date as of which. the record holders ofsb.ares of Common Stock are to be dete.nnined for 1he grant, is$ue or sale of such P-urchase Right$ <u>(provided. Jmveyer</u> to the extent that the Holder's. right to participate in any such Purchase Right would result in theHolderexceeding the Beneficial Ownership Limitation, then theHolder shall not be entitled to participate in such Purchase Right tosuch extent (orbeneficial ownership of such shares of Common Stock•areaultof suchPUl'Cha&e Right tosuch extent)and .such Purchase Right tosuch extent shall be held in abeyance- for the Holder until such time, if ever, as its right thereto would not result in the Holderexceed.ing the Beneficial Ownership Limitation),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Pro Rata Distributions</u>. During such time a.-t this Preferred Stock is outstanding, if the Corporation shall declare or make any dividend orother distribution of its use1s{or rights to acquire its assets) to holders of shares of Common Stock,. by way of return of capital or otherwise {including,. without limitation. any distribution of cash, stock or other securities,, property or options by way of a dividend, spin off. reclassification, corporate rearrangement, scheme of arrangement or other similar tnms.action) (a <u>"Distribytion")</u>, at any time after the issuance of this Preferred Stoc then, in each such cue, theHolder shall beentitled toparticipate in such Distribution to thesame extent that the Holder would have participated therein if the Holder had held the number of srum.:s of Common Stock a u:imble upon cx,mpletc exercise of this Preferred Stock (without regard to any limitations on exQ:r'Cise hereoi; including without limitation, the Beneficial Ownership Limitation) immediately before 1hedate of whi<::h a record is taken for such Distribution, or1 if no such record is taken, the date asof which the record holder$of shares of Common S10Ck are to bedetermitted for the participation insuch Di:stribution <u>(p:'Ovidcd, h.Qwever,</u> to the extent that the Holder,& right toparticipate inan.y suc.h Distribution would result in the Holder exceeding the Beneficial Ownemhip Limitation, then the Holder shall not beentitled topartic,ipatein such Distribution to suchextent (orin thebeneficial ownershipofanyshar of Common Stock. as a1C$ult of such Distribution to such extent) and the portion of such Dis bution shall be held in abeyance for the benefit *of* the Holder until such time, if ever, as its. right thereto would not l'e$Ult in the Holder exceeding the Beneficial Ownership Limi1ation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Fundnmental Transaction.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>General.</u> The Company shall not enter into or be party toa Fundamental Transaction untes.s (i) the Successor Entity (asdefined below) assumes. in writing all of the obligalioD$ of the Company under this Certificate of Designation in uccordance with the provi$ions of this Sectipursuantto written agreements in form andsubstancesa6'factory totheHolder andapproved by the Holder prior tosuchFundamentalTransaction,includingagreements todeliver to theHolder inexchangefor shares c;,f Prefeaed Stock .a security of theSuccessor Entity evidenced bya written instrument.substantially similar in form and substance to the Preferred k, including, without limitation, which is convertible into a oorrespondingnumberofsh:are$- ofcapital stock equivalent to the res of Common Stock acquirable and ieceivable upon conversion of the Prefe.r:red Stock (without regard to any limi1ations on theconversion of the Preferred Stock) prior tosuc.h Fundamental Transaction, and with a conversion price which applies the

conversion pricehereunder tosuch shares of capital stock (but taking into, account the relative valueof the sharesof Common Stock pursuant to sµch Fundamental Transaction and the value ofsuch shares ofcapital stock, such adjustments to the number of sh.ares of capi1a.l stock and such conveBion price being for the pqrpose of protecting theeconomic valueof the Preferred Stock immediately prior to the consummation of sueh Fundamenlal Transaction) and (ii) if theFundamental Transaction OCCU1'$ within six (6) months of the Closing Date, the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible .Market. Upon the consummation of each Fundamental Transaction, the Suc .r Entity $ball su to, and besubstituted for (so that from and after the date of theapplicable Fundamental Tra.nsadi.on, the provisions of this Certificate ofDesignation referring to the• mpany'" shall te.fer instead to the Su cessor Entity}, and may ex.¢roise every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of Designation with thesame effect as ifsuch Successor Entity had been named as theCompany herein. Upon consummati.on of each Fundamental Transaction, the S r En.tity shall deliver to the Holder confinnation that there shalt be issued upon conversion of the .Prefem.-d Stock at $11Y time after the consummation of theapplicableFundamental Transaction, in lieu of the shares ofC'.ommon Stock (or other securities, cash, assets o.r other property) i$$uabte upon theconversion of the Preferred Stock prior to the applicable Fundamental Transaction, such shares ofpublicly tradedcommon $tock (or it&equiva1¢nt) of the Successor F..ntity (including its Parent Entity) which the Holder would have been entitled *tc* receive upon the happening of the applicable Fundamental Tmns.action had the Preferred Stock been converted immediately prior to the applicable Fundamental Trans.action (without regard to any limitations on the conversion of the Pref-erred Stock), as adjusted in atc0.rdnnce with the provisions of thit Certificate of Designation, Notwithstanding the foregoing, and without limiting Section *S* hereof, the Holder may eh:.ct, at its $Cle option, by delivery qf written notice to the Company to waive this Section 7(e) to pennit the Fundamental Transaction without the assumption of the Preferred Stock.. In addition to and not in substitution for any other rights hereunder, prior to theconsununation of each Fundamental Transaction pursuant to which holdeB of$hare$of Common Stock are entitled toreceive securities orother assets with mipect to or in exchange for shares of Common Stock (a <u>"Corporate Event',),</u> Ute Company shall make appropriate provision to in$ure fuat the Holder will there,fter have the right to receive upon *a* conve.JSion of th¢ Prefern.-d Stock at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in. lieu of theshares of theCommon Stock (orothersecurities, cash, assets or otherproperty)issuable upon the conversion of the Preferred Stock prior to such Fundamental Transaction, such share$ ofstoc securiti cash, assets or any other property wbaf$0ever (including warrants orother purchase orsubscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had the Preferred Shares been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the conversion of the Preferred Stook), Provision made pursuant to the preceding: sentence shall be in a .form and substance n"SSOnably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Black Scholes Value.</u> Notwithstanding the foregoing and the provisions of Section *S* above, at the request of the Holder deliven:d at any time commencing on the earliest to occur of (x) the public disclosure of any Fundamental Transaction, (y) the consummation of any Fundamental Ttan.sactioo and (z) the Holder fu$t becoming aware of any Fundamental Transaction through th.e date that isninety(90)daysafter thepublic disclosure of theconsummation ofsuch Fundamental Tnmsaction by the C.Ompany pursuant to a Ctn'l'ent Report on Fonn 8...K filed with the SEC) the Company or the Succes,sor Rntity{as Ute ease may be) shall purchase the Preferred Stock ftom the Holder on thedate of such request bypaying to the Holder cash in an amount equal to the .Black Scholes Value,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ili)<u>Fundamental Transactions.</u> If,.at any time while any Preferred Stock is outstanding, (i) the Comp$y1 directly or ind tly, in one or more related transactions eff«its any merger oreo11$0lidationoftheCompanywithorin10anotherPet1Qn,(ii)theCompany1directlyorin tly>e:ffects any sat . tease, license, am.gnment, 'trans.fer, conveyance orother disposition of all or substantially all of

its as.sets in one or a series of related transactions, (iii) any direct or indirect, purchase offer, tender offer ore.xohange offer (whether by theCompany oranother Person) is completed pursuant to which holders of Common Stock are permitted tosell, tender or exchange their shares. for other securities, cash or property and has beenaccepted by theholders ofSO% ormore oftheoutstanding Common Stock. (iv)the O:mpany, directly or indirectly, in one or more rQlated transactions effects any reclassification, n:organization or iecapitalization of the Common Stock or any compulsory share etchange pursuant to which the Common Stock is effectively converted intoorexchanged forother securities, ca.sh or property, or(v) the C.ompany, directly orindirectly, in oneQr more related tran$aCtions CQDSummates astock or$hare purcha agreement orother busine8$ combination (including, wi1hout limitation, a reorganizationJ recapitalizationlspin-off or scheme of arra.ngement) with another Person or group of Persons whereby such other Person or group acquires more than 500/o oftheoutstanding shares of Common Sto<:k (not including anyshare, of Common Stock held by theother Person orotherPerson$ making orparty to,orassociated oraffi.liated with theother Persons making or party to, such srock or share purchase agreement orother blliiness combination) (each a •'.Bmdamen1al T:ra.nsaQtjon1')_, then, upon any subsequent conver.sion of the Preferred Stookt the Holder shall have the right to receive, for ea.ch Conversion Share that would have been issuable upon suoh conversion immediately prior to the «currence of such Fundamental Transaction) at the option of the Holder(without regard to any limitation in Section *5* 011 theconversion of the Preferred Stock), thenumber of :Shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporationI and any additional consideration (the. <u>"Alternate ConsiderationJ</u>j receivable as a result of such Fundamental Transaction by a holder of the number of .shares of Common Stock into which each share of Preferred Stock is convertible immediately prior tosuch Fundamental Ttansaction (without regard toany limitation in Section *S* on theconversion of the Preferred Stock). For purposes of any such c:onve.mon, the detennination of the Co.nvenuon Price $hall be appropriately adjusted to apply to such AltemateC.onsidera1ion based on theamount of Alternate Consideration issuable in respectof ones.hare of Common Stock in such Fundamental Tmnsacti,;m, lmd the Company shntl apportion theConversion Price among the Alternate Consideration in J reasonable manner :reflecting the relative value of any different. oomponents of the Alternate Consideration. If holders of Common Stock an: given any choice as to the securities, cash orproperty to be received in a Fundamental Transaction, then.the Holdershall begiven the same choice 8$· to the Alternate Consideration it :receives upon anyconversion of this Note following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction. th.eCompany or any Sue.¢e$SOr Entity shall, at the Holder's option. exercisable at any time concurrently with, or within 30days aftei'.. theQOnsum.mationof theFundamental Transaction, purchase the shares of Preferred Stock ftom the Holder by paying to the Holder an amount *of* cash equal to the Black Scholes Value of the remaining unconverted shares of Preferred Sro.ck on th.e date cf the (.omununation of such Fundamental Transaction, <u>· Black Scholes Value••</u> m¢ans the value of the unconverted shares of Prefemxl Stock remaining on the date of the Holder'$ request pursuant to Seotion 7(e)(H) which value is calculated U.Sing the Bhlck Scholes Option Pricing MQdel for a ••catr• or ''put" option, as elected by the Holder, asobtained from the •-ov•function on Bloomberg utilizing (i) an underlying price pershare equal to the greater of fl) th¢ highest Closin.g Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the announcement of the applicable Fundamental Tnuisaction (or theooilSlll11mationof theapplicable Fundamental Transaction, if eadier) and ending on the Trading Day of theHolder's request pll1'$uanf toSection 7(e)(2) and(2) thesum of the price pershare beingofferw in cash in the applicable Fundamental Transaction (if any) plus the value of the non-®:Sh consideration being offered intheapplicable Fundamental Transncti<>n (ifany), (ii)astrike priceequal to theConversion Price in.effect on the date of the Holder's reques,t pursuant to Section 7(e)(2), (iii) a ris,k..f. tee interest rate corresponding to the U.S.Treasury rate as of the date of theHolder's.request pursuant toS«tion 7(e)(2) if such request *is* prior to thedateof theconsummation of the applicable Fundamental Transaction, (iv)a zero Qostofborrowand(v}anexpeetedvolatilityequal tothegn::ateroflOfrQm the "HVT» function. on Bloomberg (determined utilizing a *36$* day annuatization factor) as of the Trading Day immediately following the earlie$t to occur of (A) the public disclosure of the appliQable Fundamental Transactlon, (B) the consummati.on of the applicable Fundamental Transaction and (C) the

date on which the Holder first became aware of the applicable Fundamental Transaction. The Company .shall cause any $u rentity in a Fundamental Transaction in which the Q:tmpany is not the survivor (the <u>"Successor Entily:'')</u> toassume in writing all of the obligations of the Company under this Certificate of Designation and theofherTransactionDocument.s ina«ordance with the provisions of thisSection 7(e) pursuant to written agreements in form and substance teaS()nably satisfactory tQ the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at theoption of the Holder, deliver to the Holder in exchange for the Preferred Stock a security of the Succes.wr Entity ev:idenced by a written instrument substantially &imilar in form andsubstance to the Prdernxi Stock which isconvertible into acorresponding number ofshares ofcapif.al stock of such SuCCC$80r Entity (orits parent entity) equivalent to the $h$reS of Common StQck acquirable and JWeivable up()n conversion of the Preferred Stock (wi1hout regard toany limitations on theconversion of the Preferred Stock) prior to such Fundamental Transactiont and with a QOnversion price which applies the Conversion Price het.eunder to such sb *of* capital stQck (but taking into n®Qunt the relative value of the shares of Common Stock pursuant:to sucb Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price beingfor the purpose ofprotec,ting the economic value of the Preferred S1oek immediately prior to theconsummation ofsuch Fundamental Transaction), and which is reasonably satisfactory in form and sub$tance to the Holder. Upon the oectUrence of any such Ftmdamental Transaction, the Successor Entity shall suctee*after the date of such Fundamental TranY.ction, the provisions of this Note and the other TransactiQn n>cuments referring to the*"Company" ;&ball refer instead to the Successor Entity), and may exercise every right and .power of the Company and $hall assume all of the obligations of the Company under this Note and theother Transaction Documents with the.same effect as if such Successor Entity bad been named as the Company here.in.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Calculations.</u> All calculations under thilSection 7 shall be made to the nearest cent or the n t 1/lOOth ofa th.are-, a$ the case may be. For purpose$ ofthi$ Section 7, the number of shares of Common Stock deemed to be issued and outstanding as ofa given dateshall be the sum of thenumber of shares of Common Stock{excluding any treasury shares of the Corporation) issued and outJ1anding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Notice to the Holders.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment to Conversion Price.</u> Whenever the Conversion Price i$ adjusted pursuant to anyprovision of this Section 7-J the Corporation shall promptly deliver to each Hokier a notice setting forth the Conversion Price after such a(ijus.tment and setting forth a brief statement of the fiWI$ requiring such adju$tment.

{ii) <u>Notice to Allow Conversion by Holder.</u> If (A) the Corporation shall declarea dividend{o.r any otherdistribution in whatever form) on theCommon Stockt{B) theCorporation shall declate a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Corporation shall authorize the granting to all holders .of the Common Stock of rights. o,r watnltlt$ to subscn'be foi- or purchase any $haresof capital stock of any class or of any rights, (D) 1he approval of any stockholders of the Cotporation shall. be required in connection with any reclassification of the C.0.mmon Stock:, any consolidation or merger to which the Corporation is a .patty, any sate or trnl1$fer of all or sube.tantially all of the assets of theCorporation., or anycompulsory shareexchange whereby the Q:tmmon Stock is converted into other ffllurities, cash or property (E) the Corporation shall auftlorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the C-orporation (F) the Corporation $hall take any action to -effectuate an Corporuon Redemption, or (0) a Triggering Event shalt have occurred, then, in each case, the Corporation shall cause to befiled at each office oragency maintained for the purpose of oonversion of this Preferred Stock, an.d shall cause to be delivered toeach Holder at its last address as it shall appear·upon the$look boobof the Corporation, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified (unless a greater or lesser time period is

expres.sly required elsewhere in this Certificate of Designation), a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, :redemption. right$ or warrants, or if a record is not.to be taken, the date u of which theholders of theCommon Stock of record to be entitled to such dividend, dis1ribu1ioll$, redemption, rights or warrants are to bedetemrined or (y) the date on which .such rwlas$ification,. oonSQlidation,merger, sale, transferor shareexchange isexpeieted tobecome effective or close, and thedoteas of which it isexpected that holders o:fthe Common Stoclcof recordshall beentitled toexchange their share$ ofthe Common Stock for secJ.Jrities, cash orotherproperty delivemble upon such reclassification,.consolidation, merger, $de, transfer orshare exchange, provided that the failure todeliver such noticeoranydefect therein orin thede-livery then:of shall not affect the validity ofihecorporate action tequired to be specified in $uch notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information ing the Corporation or any of the Subsidiaries,. the Corporation shall simul1aneously :file such notice with the Commission pursuant to a Current Report on Form 8-Jt The Holder shall remain entitled toconvert theConversion Amount of this Prefened Stock (or any parthe.reof) during the20'41y period oommencing o:n thedate of$UCh notice through the,effective date of e ev_ent triggering such notice except a& may otherwise be expressly set forth in this Certificate of Destgna.tton.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Participation in Subseq,uentFinancina</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon a Su uent Financing, a Holder of at least five hundred (500) shares of Preferred Stock (each such Holder, a <u>"Significant</u> <u>Purchase!")</u> shall have the right ro participate in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the

<u><1Jartieipation Maximum ")</u> on the $&me terms, conditions. and price provided for in the Subsequent Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) At least five (S) Trading Day$ prior to the closing of the Subsequent Financing, theCompany shall deliver toeach Significant Purchaser a written notice o.fits intention toet'fe(lt a Subsequent Financing.<u>('• Notice").</u> which Pre.Notice shall ask s.uch Significant Purchaser if it wants to review the details of su.Qh financing (such additional notice a <u>••Subsequent Financing Notice' .</u> Upon the request of a Significant PurchMer, and only upon a n,quest by such Significant Pu.rohaser, for a Subsequent Financing Notice. the C',ompany shall promptly but no later than one (l) Trading: Day ai\er iuch request, deliver a Su\'8equent Financing Notice to such Significant PUIChaser. The Subsequent Financing Noticeshall describe in reasonable detail theproposed terms of such &lbsequent Financing, the amount ofp:roceeds. intended to be raised thereunder and thePerson or Persons through or with whom such SubsequentFinancingis pro,P(Mi,ed to be effected ands.ball include a term sheet or similar document ielating thereto asan attachment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any Significant Pu,rcbqer desiring to participatQ in such Subsequent Financing must provide written notice to the Company by not later than 5:30 p.m, (New York City time) on the fifth (Sil) Tm.ding Day afterall of the Signi&ant Purchasers have ived the Pre-.Notice thatsucb Significant Purchaser i$ willing to participate in the Subsequent. Financing theamount of s.n.ch.Purchaser's. participation,.an.d representing and warrantin.g thatsuch Signi:fieantPurchaserhassuch fbndiready. willing. and available for inve.sunent on the terms set forth in the Subsequent Financing Notice. If the Company reeeives no such notice ftom a Significant Purchaser as of such fifth (Sill,) Trading Day, such Significant Purchaser shall bedeemed tohave notified theC-ompany that it does not elect to participate,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If by S:30 p.m. (New York City time) on the fifth ($<sup>th</sup>) Trading Day after all of the Significant Putchase.rs have received the Pn Notice. notifications by the Significant Purchase.rs of their willingness to jfflrtieipate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, IC$$ than the total amount of the Subsequent F.inancing, then the Company may effect

the l\mUlining portion of such Subsequent Financing on the terms. and. with the Person, set forth in the Subsequent .FinanQ:ing Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Ifby S:30p.m. (New York City time) on the:fifih (Slh)Trading Day after all of the Purchasers have received the Pl'\>Notice. the Company rec.eives responses to a Subllequcnt Financing Notice from Significant Purchasers seeking to purchase more than theaggregate amount of the Participation Maximum, each such Significant Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of the Participation Maximum. <u>upro Rat.a Portion"</u> means the ratio c:,f (x) the Subscription Amount: of Securities purchased on the Closing Date by a SigniticantPurchaser:participating under this Section 7(h) and{,y) thesum of the aggregate Subscription Amounts of Securities purchased on the Oosing Date by all Signifi .-nt Purchasers participa1ing under1his.Section 7(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The C.ompany must provide the Significant Purchasers with a &e00nd Subsequent Financing Notice, and the Significant Purchasers will again have the right of participation $Ct forth above in this Section 7(h). if Che Subsequent Financing subject to1he initial Subsequent Financing Notice is not ummated for any reason on 1he terms set fo:rth in such Subsequent Financing Notice within ten (10) Trading Days after the date of theinitial Subsequent f"irumcing Noti¢e. ·

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company and each Signifkant Purchaser agree that if any Significant Pureh r elect$ to participate in the Subsequent Financing, the tnm$aetion documents related to 1he Subsequ.ent Fmancing shall not include any term orprovision whereby suchSigni:ficant:Pu:rchaser shall be iequired toagree toa.nyrestrictiotl$ontrading as toanyof1he Securitie.spurehasedhereunderor berequired to consent to any am.endment to or termination o.f, or grant any waiv(Tt release or the like under or in connection with, this Agreement, without the prior written consent of such Significant Purchaser. In addition. the Company and each SignifiC$ll.t Purehaser a 1hat, in connection with a Subsequent Finan.cing, the transaction documents related to the Subsequent <u>Financing</u> shall include a mquirement for theCom:iiany to issue a widelydisseminated press release by9:30 am (New York City time) on theTrading Day of execution of the U'l:Ul$$CtiOn documents in such Subsequent Financing (or, if the date of execution is not a Trading Day1 on the immediately following Trading Day) that discloses the material tenns of the transactionscontemplated by the transaction documents in such Subsequent Financing.

{viii) Notwithstanding anything to 1h.e contrary in this Section 7(h) and unless otherwise agreed to by sueh Significant Purcliaser, the C.Ompany .shall either oonfinn in writing to such Significant Purchaser 1hat the transaction with res}X'Ct to the Subsequ nt Financing has beenabandoned or shall publicly dilclose its intention toissue thesecurities intheSu.bsequentFinancing, in either case insuch a manner such that 3uch Significant Purchaser will not be in po$SCSS.ion of any material, non..public information, by the tenth (10., Business Day followingdelivery of theSubsequent Financing Notice. Ifby such kmth (1Olh) Business Day, no _1mblic disclosure regarding a transaction with r¢$pect t.o theSubsequent Financing has been made, and no notice regarding the abandonment ofsuch transaction has b«..-n received 'by iuch Significant **P haser.** such tm.Di8ction .shall be deemed to have been abandone,d and such Significant Purchaser shall not bedeemed to be in possession of any material, non pu.blic information with pect to Ille Company orany of its Subsidiaries, (ix) Notwiths1andingthe fotegoing, this Section 7(h}shall notapply in .pect ofan Bxempthsuance.

<u>Section</u> <u>8</u>. <u>Corporation Redemp;tion.</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall have the right ton:x:feem (a <u>rpomtion Redemption"),</u> all or any portion of the shares of the Preferred Stock issued and outstanding ior a period of time equal to 6 monihs following the Original Issue Date, upon five (S) business days' notice, nt .a redemption price per Preferred Stock then issued and outstanding (the <u>"Corporation Redemption Price').,</u>equal to the product of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) thePremium Rate multiplied by (ii) thesum of(x) the- Stated Valuei(y) allaccrued butunpaiddiv.idends, and(z) all otheramount due to the Holder-pursuantto this Certificate of'De&ignationand/or anyTransaction Ik,cument including, but not limited to Late Fees, liquidated damages and thelegal fees and expenses of the Holder s counsel relating to this Certification of.Designation., any other Tnmsaction Document and/or the transactions contemplated thereunder and/or hereunder. <u>"Premium Rate'•</u> means 1.35 if such Preferred Stock is nxteemed within s;ix (6) months :from the iMuan date thereof; 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation may not deliver to a holder a C.Orporation Redemption Notice unless on or prior to the date of delivery of such Corporation Redemption Notice, the Corpora-don shall have segregated on the books and ms of the Corporation an amount of cash sufficient to pay the Corporation Redemption .Pri.c» for Qh $hare of Pref¢tted Stock then issued and duly. Any Corporation Redemption Notice delivered shall be irrevocable and shall be accompanied by a statement ex=uted by Corporation d\lly authorized o•tlicerof the Corp,omtwn,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Corporation Redemption Price required tobe paid by theCorporation toeach Holder shat I be paid in the c.a.sh to each Holder ofshares of Preferred Stock no later than five (5) calendar days ftom the date of mailing of the Corp-oration Redemption Noti (the <u>'-CO.rporation Redemption</u> <u>Payment Date").</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstandingthe delivery of a Corporation Redemption Notice, a Holder may convert some *ot* all ofits shares of Preferred Stock until the date it receives in full Corporation Redemption Price, <u>provided, lvJwtter,</u> that notwithstandinganytbing to t:becontnuyprovided herein orelsewhere (i) in. theevent a Holder would beprecluded fu:nn Q'.lnverting anysham of Pl'l;:ferred Stock, due to the limitation contained in Section *5,* the Cot'pOl'ltion Redemption Payment Date. for such Holder only, shall automatically be extended by one hundred twenty (120) days (orsuch shorter period a *so* p:rovided to the Corporation by the Holder at any time and (ii) if a Mandatory ConvCJ.'$iOn has occumxl prior t:Q the CorporationRedem,ption Payment Date and for whatever reason including, but notlimited to, theBeneficial Ownership Limitation, a Holder still owns Preferred Stock, any such Holder may eleot to extend the Corporation Rede-mptic;.n Payment Date as.to any or all of such Hold r's Prefe Stock for up to Qlle hundred twenty (120) days following the Corporution Redemption Payment Date toallow such Holder to convert its remaining Preferred Stock into Conversion Sharea,

<u>Section 9</u>. <u>N4< ative Cpyenants.</u> From the date hereof until the date no shares of Prefe.rred Stock are issued and out,mnding, unless Holde$ of at least *51*% in Stated Value of the then outstanding $ha.res of Preferred Stock $hall have otherwise given priQr wriucnoo11$en\ theCorporation shall not, and shallnot permit any of theSubsidiaries to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) other than Permitted Indebtedness,. enter into, create, incurt a.'ISume., guarantee or suffer *to*exist any indebtedness f.or borrowed money of any kind, including but not limited to, a guarantee, on or with rea t to anyof its property or assets now owned or hereafter acqui or any interest therein orany income orprofits 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) other than Permitted Liens. enter into, create. incur ll$$ume or suffer to exist any Llen$ of any kind, on or with respect to any Qfits property or assets now owned or hereafter acquired or any interest therein orany income or profits 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amend its charter dwumeuts, including, without limitatio its articles of incorporation and bylaws, in any manner that materially and adversely affects any rights of the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) repay, npumhase or offer to repay, repun:hase orotherwise acquire of any $hate$ of its Common StQCk, Common Stock Equiv lenta or. Junior Securities, other than as t◊ the Q)nversion Shares as permitted or required under1heTransaction Documents,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) pay cash dividends or distributions on Junior Sec-urities of theCorporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) enter into any transaction with any Affiliate of the Corporation which would be uired to 'be disclosed in any public filing with the Comnri$Sion, unles.s such transaction is made on an arm' lenglh basis and expressly approved by a majority of 1he dis.interesteddirectom of the Corporation (even if less than a quorum otherwise required for board approval); 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;(g) enter into anya.g:reement with respect to any of theforegoing.

(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 10</u>, <u>Redemption Upon Tri,mering Events.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ![](image_017.gif)<u>"Triggering n\1ent'r</u> means, wherever used herein any of the following event$(whatever the reason for such event and whether such event shall be voluntary or involuntary or etr ted byoperation oflaworpursuant toanyjudgmenti decreeororderofanycourt, oranyorder, rule orregulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Coiporation shall fail to deliver Conveniion Shares issuable upon a conversion hereunder thatcomply with the provisions heI"eO:f prior to the fiflh Trading .Dayaftenuch shares are required to be deliveled hereunder, or the Corporation shall provide written notice to any Holder, including by way of public announcement, at any time, of its intention not to wroply with reque$t$ for conversion of any.shares of Preferred Stock in accordance with the tenns 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) theCorporation ihall fail for any teas0n topay in full theamount
of oash

due pursuant to a Buy.In within five (S) Trading Days after notke then,ior is delivered 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Corporation shall fail to have available a sufficient number of authorized and UDl'eSCl'Ved.shan:s of Common Stock to issue tosuch Holderupon aconversion 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unless specifically addressed cbewhere in this Certificate of Designation as a Triggering Even the Corporation shall fail to observe or perform any other covena.nt, agreement or warranty contained in, orodterwise oommit any breach of the Transaction Documeniss andsuch failwe or brench shall not, ifsubject to thepossibility of a curebythe Corporation, havbeencured within *S* calendar days. after the dateon which written noticeof $UCh failure orbreach shall have been delivered;.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Corporation$hall redeem Jgnior Securities or <u>pari passu</u> securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) theCorporation shall beparty tQ , a
Change of Control Transaction;

(v.ii) there shall haveoc-0urred n Bankruptcy 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;&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 monetary judgment, writ or &imilar final process $hall be entered or filed against the Corporation, any subsidiary or any of their respective property or other assets for more than $50,000 (provided that amounts covered by the Corporation's insurance policies are not counted tQward this $50.000 threshold), and such judgment, writ or similar final p shalt remain unvacated, unbonded or unstayed for aperiod of thirty (30) Trading 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;&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) the electronic transfer by the Corporation of $hares of Common Stock 1hrough the Depository Trust Q.l.mpany or another esutblished clearing corporation once established subsequent to the date of this (;ertificate of Designation is no longer available or is sul>je.ct to a.fuleze' and/or '\ bill"';

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Corporation shall no longer be DWAC eligible; 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;(xi) any ' vent of .Default,° asdefined in thee Pwx;ha$e 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence of a Triggering E\rent, each Holder shall (in addition to all other rights it may have hereunder orunde.r applicable law)have the right, exercisable at thesole option 0:f 1>uch Holder, to .require the Corpomtion to{A) redeem all of the Pmferred Stock then held by such Holder for a rcdemplion p , in c8$h, equal to the Triggering Redemption Amount, or(B) at theoption of each Holder either (i) tedeem all of the Preferred Stock then held by such Holder though the issuance tosuch Holder of s1.1.ch number of shares. of Common Stock equal to thequotient of (x) the Triggering Redemption Amount,dhidedby(y)theloweatof(l)theConversionPrice,and(2)75%<>ftheaverageofthel0VWAPs immediately prior to the date of election hereunder, and (ii) increase the dividend rate on all of the outstanding Preferred Stockheld by such Holderre ctivelyto the initial Closing Date to18% perannum th fl.er; The Triggering Redemption Amoun.t, whether :payable in cash or in shares, shall be due and payable or issuable, as the case may be. within five (5) Trading Dayi of the date on which the notice for the payment therefor is provided by a Holder (the <u>''TriggQting Redemption Payment Date'?,</u> If the CotpQration fails to pay in lull the Triggering Red-emption Amount hereunder on the date such amount *is* due inaccordance with thisSection (whether in cash orshares of Common Stock), theCorporation will pay interest thereon at a rateequal tothe lea.serof 18% pe.rannum or themaximum.rate permitted by applicable law• .accruing a:n4 compou.nding daily from 1uch date until the Triggering emption Amount, plus all such interest thereon, is paid in:full.

<u>Section 11.</u> <u>[Intentionallydeleted].</u>

<u>Section 12</u>. <u>llaneous.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices.</u> Any and all notices orothercommunications ordeliveries to beprovided by the Holde?S here.under including, without limitation, any Notice of Conve11ion1 shall be in writing and delivered personally orf!.ent by a natiqnally recognized overnightcouri r service and by facsimile ore--tnai ad.dressed to the Corporation, at its.addresso.f recor{t or such other e,.mail or address a.s the Corporation may specify for such purposes by prior written notree ·b) the Holders delivered in accordance with this &-ction 12. Any and all notices or other communication$ or deliveries to beprovided by the Corporation hereunder .shall be in writing and delivered personally, by facsimile, or sent by a nationally reeognized ovemight courier service addressed to each Holder at the fac,imitc number or adare.s,s of such Holder appearing on theboob ofthe Corpora1ion, or if nosuch facsimile number oraddress app,earson thebook:$ oftheCorporation, at theprincipal placeof business o.fsuch Holder, as setf{)rtb in thePurcha$eAgre:ement, Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of trall$JD:iss.ion, if such notice or oommunication *is.* delivered via :facsimile at the facsimile number setforth in. thisSection prior to 5:30 p.m.(New Yorlc City time) on any date.(ii) the next Trading Day after the date of transmis.sion., if iuch notice or communication is delivered via facsimile at the fac.$imile number set forth in this Section on a day that is not a Trading Day or later than *5*:30 p.m.. (New York City time) on any Trading Day, (ill) thesecond Trading Day following the date of ttUliling, if $ent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom suchnotice is required tobegiven.·

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>AbsQlute Obligation.</u> Except: as expressly provided herein, no provwon of thii C.ertifi te of Designation shall alter or impair theobligation of the Corporation, which is absolute and unconditional, to pay liquidated damages accrued dividends and accrued interest, as applicable, on the shares of Prefened Stockat the time., place, and rate, and in the coin orcurrency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Lost or Mutilated Preferred Stock Certificate.</u> If a Holder's Preferred St.ode certificate shall be mutilated, lost, s1o1en or destro the Corporation shall execute and deliver, in exchange and substitution.for anduponcancellation of a mutilated certificate, *or* in lieu ofor in$ubstitution for a lost, stolen ordestroyed certificate, a new certificate for the$hares of Prcf'erred Stock so mutilat

lost, stolen or destroyed, but only upon .n:ceipt of e.vidence of .such loss, theft or de.truction of such certificate, and of tbeowneohip hereof reasonably satisfactory to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Govemina Law.</u> AU questions conceming theconstructio validity, enforcement and interpretatio.n of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal laW$ of the State ofNevadlt without regard to the princ,iple-$of confli t oflaws thereof. Each partya,grees that all legal proceedings concerning the interp Ollt enforcementanddefense of the tranuctions contemplated by any of the Transaction Docllments (whether brought against a party hereto or its respective Affiliates, directo.1'$, officers, stockholders. employe(;S or agents) shall be C"O.mmenced in the .state and federal courts. sitting in the county of Clark (the ''Nevada Courts"), Each party heretohereby irrevocably submits to th.e clU$hre juri&dictio:nof the Nevada Courts for the adjudication of any dispute hereunder or u1connection herewith or with any tran$8ction contemplated herebyordisc;u$Sed herein (including with respect to the enforcement of any of the Transaction Document.,), and hereby irrevocably waives, and agrees not to .assertin any suit, action or proceeding, any claim that it i6 not pt,'1'SQnally subject to the jurisdiction. of such l\tevada: Courts. or such l\'evada CourtiJ. improper Qr inCQnvenient venue forsuch proceeding, Pach.party hereby irrevocably waives pel'$Qnal service ofprocess and oonsents to p being served in any such suit, action orproceeding by mailing a copy thereof via regiirered or c.ertifled mail orovemight delivery (withevidence of delivery) tosuch party at theaddre&.'l in effect for notices to it under this C.erti:ficare of Designation and agteeS. that such service .shall constitute good andsuffi.cient service ofp,rocessand notice thereof. Nothingcontained herein shall bedeemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, anyand all right to trial by jury in any legal proceeding: arising out of or :rdating to this Certi:f'1eate of Designation or the transactions contemplated hereby. If anypartyshallcommcnc..e an action orproceeding toenforce any provisions of this Certificate of Designation1 then the prevailing party in such action orproceeding shall be reimbwsed by the other party foritsattorneys' fees and otherCO$tSand expenses in(;intbe investigation., preparation and pros=ution ofsuch action or proceeding,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any waivel" by the Corporation or a Holder of a breach of any provision o:f this Certificate of Designation shall not operate as or be construed f.O be a waiver of any other breach of such provisionor of anybnmch ofany othe:rprovillion of thisCertificate of Designation ora waiver by anyother Holders. The failure of the Corporation or a Holder to in$i&t upon strict adherence to any term of this Certificate of Designation c,n one or moreoccasions shall not beoonsidered a waiver or deprive that party (orany other Holder) of the right thereafter to insist:upon strictadherence to fuat term or any other term of this Certificate of Designation on any other OC:'CMion. Any waiver by the Corporation o.r a Holder must 'be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Severability,</u> If any provision of this Certificate of Designation is inval.id, illegal orunenfo ble, the balance of this Certificate ofDesignation sh.all rem.a.in in effect, and if any pn>vi$ion is inapplicable to any.Person or c umstance, it $ball nevertheless remain applicable to alt other PelSOns and ciroumstances. If it shall be found that any interest or other amount deemed interest due hereunder violate$ theapplicable Jawgbe lowered toe.qual 1he maximum rare of interestpennitted 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Next Business Day,</u> Whenever any payment oro1her obligation hereunder shall be due on a day other than a Business Day,$UCb.paymentshall be made on thenext succeeding Business Day.

{h) <u>Headinf.,s.</u> The :hea.dings. contained herein are for convenience only do not constitute a part of thi.$ Certificate of Designation and $hall not be deemed to limit (Jr affect any of the provisions 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) <u>Status *of* Converted or Redeemed Preferred Stock</u>. Share$ of Preferred Stock may only be issued pursuant to a Puro,hase Agreement. If any shale$ of Prefemxl Stock $hall be converted,, redeemed or rr:acquired by the CorporatioDt such shares shall l'C$ume the status of authorized butunissued

shares of preferred Jtock and shall no longer bedesignated as Preferred Stock.

RBSOLVED, FURTHERt that the Chairman, the pre$ident or any vice--president,and the n;tary or any assistant secretary, of theCo.rporation beand they hereby areauthorized and directed toprepare and file this Certificate of Designation of Preferences, Right$ and Litnitations in accordance with the foregoing resolution and the provisions of Delaware law,

IN WITNESS WHEREOF, the und ignedbave executed this Omiticate fuis .311d1 ay of October. 2021.

---

| |
|:---|
| Metrospaoes, lnc, |
| ![](img_076.jpg) |

---

**ANNE.XA**

NOTICE OFOONVERS.ION

(1'0 BE EXECUTED BY THE REGISTERED HOLDER.IN ORDER TO CONVERT SHARES OFPREFERRED STOCK)

Theundersigned hQrebyelccts1o convert the number ofshart\$ of Serl<$ FCcnvertiblePr-..-f',U'red Stock indicated below into $hares of common stock; p ,'&lue $0.001 per share (the <u>"Common Stockj</u>. *of* Metros , Inc, fl. Nevada corporation (the"' <u>Corporation</u> *j,* according tothe<;0nditions her«1f. $$ ofdieda written below. If $ruU'C$ ofCommon Stock are to be issued in.the name of a Pen;on <:tther than the undersigned, the undet'$igncd will pay.au tnmsfer taxes

payable with ct thereto and .h! dclivtring h\fl\Vith such c,ertfficat$ and opinions as may be tt,quirod by tho Corpo:l1ltion in aQCOrdanoe with tho Purdlflse Agnicm.cnt. No f will be char d to the Holders f();I' .any conversion. except for any such.transfer -

Conversion calculations:

---

| | | |
|:---|:---|:---|
| Date to Eff('Ct C.Onvcrsion: | Date to Eff('Ct C.Onvcrsion: |  |
| Number Qf shattl$ of Preferred StQCk()'Wnf)dpriorto Conversion: _____________________________________________ | Number Qf shattl$ of Preferred StQCk()'Wnf)dpriorto Conversion: _____________________________________________ | Number Qf shattl$ of Preferred StQCk()'Wnf)dpriorto Conversion: _____________________________________________ |
| Number of sbar<$ of Preferred Stock to be Converted: ______________________________________________________ | Number of sbar<$ of Preferred Stock to be Converted: ______________________________________________________ | Number of sbar<$ of Preferred Stock to be Converted: ______________________________________________________ |
| Stawd Value *c;,f* .of Preferred Sto.ck to be Converted: ____________________________________________________ | Stawd Value *c;,f* .of Preferred Sto.ck to be Converted: ____________________________________________________ | Stawd Value *c;,f* .of Preferred Sto.ck to be Converted: ____________________________________________________ |
| Dollar amount ofln t to be.Conv dr | Dollar amount ofln t to be.Conv dr | _______________________________________________________________ |
| Oihcr amounts QWed to the Undersigned | Oihcr amounts QWed to the Undersigned | by the |
| Cotp0ration under the Cortific::a of Designation and/or | Cotp0ration under the Cortific::a of Designation and/or | Cotp0ration under the Cortific::a of Designation and/or |
| nny other Transaction Document to·tieQ:inverted: _________________________________________________________ | nny other Transaction Document to·tieQ:inverted: _________________________________________________________ | nny other Transaction Document to·tieQ:inverted: _________________________________________________________ |
| Number of shares of Common Stock to be Issued: _________________________________________________________ | Number of shares of Common Stock to be Issued: _________________________________________________________ | Number of shares of Common Stock to be Issued: _________________________________________________________ |
| ApplicableC.onversionPrice: | ApplicableC.onversionPrice: | _______________________________________________________________ |
| Number of s of Pref «!StQck subsQqucnt IQ Conver$i.on: ___________________________________________________ | Number of s of Pref «!StQck subsQqucnt IQ Conver$i.on: ___________________________________________________ | Number of s of Pref «!StQck subsQqucnt IQ Conver$i.on: ___________________________________________________ |
| Address for Delh'(ll}': | Address for Delh'(ll}': | ______________________________ |
| Or | Or |  |
| DWAC Instructions: | DWAC Instructions: |  |
| Broker no: ________________________ | Broker no: ________________________ |  |
| Account no; ______________________ | Account no; ______________________ |  |
| Name ofBntity Holder .-- | Name ofBntity Holder .-- | -(Please Print) |
| By; |  |  |
|  | **Name:** |  |
|  | Titl : |  |
| Name oflndividual Holdcr ____________ | Name oflndividual Holdcr ____________ | (Plea,e Print) |
| ___________________(Signat'Ul'4 oflndividual Bolder) | ___________________(Signat'Ul'4 oflndividual Bolder) | ___________________(Signat'Ul'4 oflndividual Bolder) |

---

## Ex-3

State of Delaware<br> Secretary of State<br> Division of Corporations

Delivered 11:58 AM 07/1312021<br> FILED 11:58 AM 07/1312021

SR 20212690109 • FileNumber 4471633

**CERTIFICATE OF DESIGNATION OF THE**

<br> **PREFERENCES AND RIGHTS**

**OF**

**SERIES E PREFERRED STOCK OF**

**METROSPACES, INC.**

![](img_060.gif)

The undersigned, Oscar Brito, does hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. He is the duly acting Chief Executive Officer of METROSPACES, INC., a corporation organized and existing under the General Corporation Law of the State of Delaware (the <u>"Cmp_oration")</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to authority conferred upon the Board of Directors by the Certificate oflncorporation of the Corporation, as amended, and pursuant to the provisions of Section 151 of the Delaware General Corporation Law, said Board of Directors, pursuant to taking action by written consent on July 1, 2021, approved and adopted a resolution, pursuant to its authority as aforesaid, to (1) fix the rights, preferences, privileges and restrictions of, and the number of shares comprising, of the Corporation's Series E Preferred Stock, and (2) to authorize this Certificate of Designation for the Series E Preferred Stock, the corporation has the authority to issue, as follows:

RESOLVED, that the Board of Directors, pursuant to authority given by the Corporation's Certificate of Incorporation, does hereby provide for the issuance of a series of preferred stock for cash or exchange of other securities, rights or property, and does hereby fix and determine the rights, preferences, privileges and restrictions, and the number of shares constituting such Series, and other matters relating to the Series E Preferred Stock and the designation of such series, set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Board of Directors does hereby provide for the issuance of a series of preferred stock for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, privileges and restrictions, and the number of shares and other matters relating to the Series E Preferred Stock, as follows:

**TERMS OF SERIES E PREFERRED STOCK**

&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. DESIGNATION
 AND AMOUNT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. A
 series
 of
 preferred
 stock
 is
 hereby
 designated
 as
 "Series
 E
 Preferred
 Stock"
 in
 the
 amount
 of
 five
 (5)
 shares
 (the
 "Series
 E
 Preferred
 Stock").

ILVOTING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 shares
 of
 outstanding
 Series
 E
 Preferred
 Stock
 shall
 have
 the
 right
 to
 take
 action
 by
 written
 consent
 or
 vote
 based
 on
 the
 number
 of
 votes
 equal
 to
 four
 times
 the
 number
 of
 votes
 of
 all
 outstanding
 shares
 of
 capital
 stock
 of
 the
 Corporation
 such
 that
 the
 holders
 of
 outstanding
 shares
 of
 Series
 E
 Preferred
 Stock
 shall
 always constitute
eighty percent (80%) of the voting rights
of the Corporation. The eighty percent
voting rights may be exercised by vote or written
consent based on the will ofa majority of the holders of Series E Preferred Stock. Except as otherwise required by law or by the Certificate oflncorporation of which this designation is a part, the holders of shares of common stock and Series E
Preferred Stock shall vote together and
not as separate classes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. 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;a. Shares
 of
 Series
 E
 Preferred
 Stock
 shall
 not
 be
 convertible
 into
 the
 Corporation's
 Common
 Stock,
 nor
 shall
 such
 shares
 have
 any
 liquidation
 or
 dividend
 preference
 over
 the
 Corporation's
 Common
 Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. NOTICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 notice
 required
 or
 permitted
 by
 the
 provisions
 of
 this
 Article
 to
 be
 given
 to
 a
 holder
 of
 shares
 of
 Series
 E
 Preferred
 Stock
 shall
 be
 mailed,
 postage
 prepaid,
 to
 the
 post
 office
 address
 last
 shown
 on
 the
 records
 of
 the
 Corporation,
 or
 given
 by
 electronic
 communication
 in
 compliance
 with
 the
 provisions
 of
 the
 Delaware
 Business
 Corporation
 Act
 and
 shall
 be
 deemed
 sent
 upon
 such
 mailing
 or
 electronic transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. NO OTHER RIGHTS DESIGNATED

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Except
 as
 expressly
 designated
 herein,
 there
 are
 no
 other
 rights
 or
 preferences
 related
 to
 the
 Series
 E
 Preferred
 Shares,
 including
 without
 limitation
 any
 rights
 to
 dividends,
 liquidation
 preferences,
 or
 seniority
 to
 other
 classes
 and
 series
 of
 stock.

![](img_035.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Certificate of Designation of Series E Preferred Stock has been executed by a duly authorized officer of this corporation on this **1<sup>st</sup>** day of July, 2021.

---

| |
|:---|
| **METROSPACES, INC.** |
| Oscar Brito |
| Chief Executive Officer |

---

## Ex-3

**CERTIFICATE OF AMENDMENT**

**TO**

**CERTIFICATE OF DESIGNATIONS OF**

**SERIES D PIK CONVERTIBLE PREFERRED STOCK**

**OF**

**METROSPACES, INC.**

Metrospaces, Inc., a corporation organized under and existing under the laws of the State of Delaware (the "Corporation"), certifies that:

FIRST: The name of the Corporation is Metrospaces, Inc. The Corporation was originally incorporated under the name "Strata Capital Corporation" The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on December 10, 2007. Certificates of Amendment to the Certificate of Incorporation were filed on January 18, 2008, March 31, 2010, October 31, 2012, August 23, 2019, and December 15, 2021.

SECOND: The Corporation's Certificate of Designations of Series D PIK Convertible Preferred Stock was filed with the Secretary of State of the State of Delaware on September 11, 2015.

THIRD: The Board of Directors of the Corporation, acting in accordance with the provisions of Sections 141 and 242 of the Delaware General Corporation Law, adopted resolutions to amend Paragraph 2 (Rank) of the Certificate of Designations of Series D PIK Convertible Preferred Stock (the "**<u>Series D Stock</u>**") to read in its entirety as follows:

***"2. <u>Rank</u>.*** Series D Stock shall, with respect to payment of dividends, redemp- tion payments and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation, rank:

&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) Senior and prior to the common stock, par value $0.000001 per share, of the Corporation (the "**<u>Common Stock</u>**"), and the Series B PIK Convertible Preferred Stock ("**<u>Series B Stock</u>**"), and the Corporation's Series E Convertible Preferred Stock ("**<u>Series E Stock</u>**"). The Common Stock, the Series B Stock, the Series E Stock, and any other classes or series of the Corporation's capital stock that are junior to the Series D Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation are hereinafter referred to as "**<u>Junior Stock</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;(b) Pari Passu with the Corporation's Series C PIK Convertible Preferred Stock ("**<u>Series C Stock</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) Junior to any series of preferred stock that may have been or in the future may be issued by the Corporation, including, but without limitation, the Series F Convertible Preferred Stock and the Series Z Convertible Preferred Stock. Any shares of the Corporation's capital stock that are senior to the Series D Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation are hereinafter referred to as "**<u>Senior Stock</u>**.""

FOURTH: This Certificate of Amendment to the Certificate of Designations of Series D PIK Convertible Preferred Stock was duly adopted in accordance with Section 242 of the Delaware General Corporation Law.

---

| |
|:---|
| METROSPACES, INC. |
| ![](image_001.jpg) ![](image_004.gif)<br> Oscar Brito |
| Chief Executive Officer |

---

## Ex-3

l\-fETROSPACES, INC.

**CERTIFICATE OF DESIGNATIONS <br> OF**

**SERIES D PIK CONVERTIBLE PREFERRED STOCK**

*pursutmf to Sectio11 15/{g) of rite*

***<u>General Corpon1tio1, Ltnv of the Stt,te o[Delmv(lre</u>***

 ****

The undersigned **DOES** **HEREBY CERTIFY** that the following resolution was duly adopted on July I3, 2015, by the unanimous written consent of the directors of **l\-1ETROSPACES,** **INC.,** a Delaware corporation (the <u>"</u><u>Corporation</u><u>"),</u> and that said resolution applies to 400,000 shares of the I0,000,000 shares of the authorized preferred stock, par value $0.00000I per share, of the Corporation:

**RE** **SOLVED,** that pursuant to the authority conferred on the Board of Directors of

the Corporation (the <u>"</u><u>Board</u> <u>of</u> <u>Dir</u><u>ectors</u><u>"')</u> by the Corporation's Certificate of In corporation, as amended, the issuance of a series of preferred stock, par value

$0.000001 per share, of the Corporation; and that the President or any Vice Presi dent of the Corporation be, and each of them hereby is, authorized and directed to execute and file with the Secretary of State of the State of Delaware a Certificate of Designations fixing thedesignations, powers, preferences and rights of the shares of such series, and the qualifications, limitations or restrictions thereof (in addition to the designations, powers, preferences and rights, and the qualifications, limita tions or restrictions thereof, set forth in the Certificate of Incorporation which may be applicable to the Corporation's preferred stock) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. *<u>!</u>* *<u>l'</u> <u>umher</u> <u>ofSl1"res; Desig11t1tim1</u> <u>.</u>* A total
of 400,000 shares of preferred stock, par va l ue
$0.00000I per share, of the Corporation is
h ere b y desig nated
as Series D PIK Convertible Preferred Stock (the  **<u>"</u>**  **<u>Serie</u> <u>s</u> <u>D</u> <u>S</u> <u>t</u> <u>ock</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.  ***<u>Rtl11k</u>***  ***<u>.</u>*** Series D Stock
 shall,
 with
 respect to
 payment of
 dividends,
 redemp
 tion
 payments
 and
 righ t s upon li quidation , dissolution or
 winding-up
 of the affairs
 of
 the
 Corporation,
 rank:

&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) Senior
 and prior to
 the
 common
 stock,
 par
 value
 $0 . 00000 I per
 share,
 of
 the
 Corporation
 (the <u>''</u> <u>Common Stock</u> <u>")</u> and the Series B
 PIK Con ve rtib le Preferred Stock . The Common
 Stock
 and
 any
 other
 shares
 of
 the
 Corporation's
 Capital
 Stock
 which are j u n i or
 to
 the
 Series D Stock with r es p ect to
 the payment
 of dividends and
 with r es p ect to r e d e mp t i on, payment and
 rights
 upon
 liquidation,
 dissolution
 or
 winding-up
 of the
 affairs of
 the
 Corporation are hereinafter
 referred
 to
 as  **<u>"</u>**  **<u>Junior</u> <u>Stock.''</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;(b) *Pari passu* with the Series
 C PIK Convertible
 Preferred
 Stock
 of the Corporation
 and
 not
 less than *pari passu* with any series
 of
 preferred
 stock
 which
 may
 in the future be i ss u ed b y the Corporation. Any shares
 of
 the
 Corporation's
 Cap i ta l Stock
 which
 are
 senior to the Series D Stock
 with
 respect to the payment of
 dividends and with
 respect to re demption, pa y ment and
 righ t s upon li qui d a ti o n ,
 d i sso l ut i o n or
 winding up of the affairs
 of the Corporation
 are hereinafter referred to as  **<u>"</u>**  **<u>Se</u> <u>nior</u> <u>S</u> <u>t</u> <u>oc</u> <u>k</u> <u>.'</u> <u>'</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Divide11ds.</u>* The Holde rs of
 shares
 of
 Series D Stock
 s h a ll be entitled
 to
 re
 ceive
 dividends at the quarterl y rate
 of$2. I 875 per
 share
 and
 no
 more. Div i de n ds
 on shares of
 Ser i es D Stock shall be fully
 cum u l ative,
 accruing,
 with
 out
 interest,
 from the date of
 or i g inal
 i ss u a n ce
 of
 Series D Stock
 through the date
 of
 redemption
 or
 conversion
 thereof, and to the extent
 so declared
 by the Board of Directors shall be
 payable in arrea rs on
 March
 3 1 , June 30,
 September
 30 and
 December 31
 of
 each year, except that if such date
 is
 not a Busine ss Day , the di v i de n d
 s h a ll be payable on the first immed i ate l y
 suc
 ceeding Busine ss Day (each such date being
 hereinafter
 referred to as a <u>''</u> <u>D</u> <u>ividend</u> <u>Payment Dat</u> <u>e</u> <u>").</u> Until December 3 1 ,
 20 1 9
 (the "P IK Termina
 tion Date "), dividends on
 shares
 of
 Series D Stock
 s h a ll be
 paid , at
 the Cor
 poration's
 opt i on,
 (a)
 in
 fu ll y
 paid
 and nonassessable shares of
 Common
 Stock
 (such
 dividends
 paid in such
 form
 being herein ca ll e d  **<u>"</u>**  **<u>P</u> <u>I K</u>** <u>Divi</u> <u>**dends**</u> <u>**'')**</u> or (b) in
 cash
 onlyout
 of
 funds
 lega ll y available therefor. PIK
 Div i de n ds shall be
 paid b y i ss ui ng additiona l fu ll y
 paid
 and nonassessable shares
 of
 Series D Stock
 at
 the
 rate
 of
 0.0002 I 875 of
 a share of
 Series D Stock
 for
 each
 $1 .00
 not paid in
 cash and shall
 for
 all purposes be deemed
 to
 have been
 issued on
 the r es p ective
 dates
 on
 which
 cash
 dividends, if
 de clared , wou l d have been
 payable, notwithstanding any later dat e on
 which
 certificates repre se nting
 PIK
 Dividends sha ll have been issued.

Each dividend shall be paid to the Holders of record as they appear on the stock register of the Corporation on the record date, which shall be not less than IOnor more than 30 days preceding the applicable Dividend Payment Date, as shall be fixed by the Board of Directors. Dividends payable on each Dividend Payment Date with respect to shares that have been issued for less than a full calendar quartershall be computed on the basis of a 360-day year of twelve 30-day months and rounded up to the nearest cent. Dividends on account ofarrearages for any past Dividend Payment Date may be declared and paid at any time, without reference to anyscheduled Dividend Payment Date, to Holders of record on such date, not exceeding 30 days preceding the payment date thereof, as may be fixed by the Board of Directors. Divi dends shall accrne regardless of whether the Corporation has earnings, whether there are funds legally available therefor and/or whether declared. No interest shall be payable with respect to any dividend payment that may be in arrears. Holders of shares of Series D Stock called for redemption between the close of business on a dividend payment record date and the close of business on the corresponding dividend payment date shall, in lieu of receiving such dividend on the Dividend Payment Date fixed therefor, receive such dividend payment on the date fixed for redemption together with all other accrued and unpaid dividends to thedate fixed for redemption. The Holders shall not be entitled to any dividends other than the dividends provided for in this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Liquidation</u>* *<u>.</u>* (a) The liquidation
 va l ue
 of
 each
 share
 of Series
 D
 Stock, in case
 of the voluntary
 or involuntary
 liquidation, disso l u ti o n or
 winding-up
 of the affairs
 of the Corporation,
 shall
 be an amount
 equa l to $100.00, su b
 ject to adjustment in
 the
 event
 of **a** stock
 split,
 stock dividend or
 similar
 event
 applicable
 to
 Series D
 Stock (the  **<u>"</u>**  **<u>Liquida tion Va lue ''),</u>** p l u s an amount
 equal to the
 value
 of dividends accrued
 and
 unpaid thereon (w h ich
 shall
 be determined as if
 the Corporation had elected
 to
 pay such dividends
 in cash, notwithstanding
 that
 the Co rp orat i o n had
 elected to pay them in the form
 of **P** **I K** Dividends), whether
 or
 not
 declared, to
 the payment d a t e.

&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
 of
 any
 vo l u nta ry
 or involuntary li quidation , d i sso l u ti o n or
 winding-up
 of
 the
 Corporation
 (a <u>"</u> <u>Liquidation</u> <u>Event'</u> <u>'),</u> the Ho l ders (i)
shall not be entitled to receive the Liquidation Va l ue
of the shares held b y them until the liquidation
value of a ll Senior Stock
shall have been paid in full, and(ii)
shall be entitled to receive the fu ll Liquidation Va l ue
of the shares of the Series D Stock held b y them in preference to and in priority over any distributions upon
the Junior
Stock. Upon pay ment in
fu ll of the Liquidation
Va l ue to which the Ho l ders
are entitled, the Holders will not beentitled to any further participation in
any distri bution of assets
ofor b y the Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation shall, no later
 than
 the date on
 which a Liquidation
 Event
 occurs
 or i s publicly announced,
 give
 to
 each Holder
 at his ad dress as it appears in
 the records
 of the Corporation
 written notice of any Liquidation Event, stating the
 payment
 date or dates when
 and the
 place or places where
 the
 amounts
 distributable in such circumstances shall
 be p aya bl e .

&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) Whenever the distribution
 provided for in this
 Section 4 shall be payable
 in secu ri t i es
 or
 property
 other
 than cash, the
 value
 of
 such
 distribution
 shall
 be the
 fair market va lu e
 of
 such
 securities
 or
 other
 property
 as de tertnined in good faith by
 the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5.* *<u>Optio,w/ Redemption.</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>R</u>**  **<u>ede</u> <u>mption.</u>** (i) After December 3 1 , 2017, shares of Series D Stock will be redeemable at the option of the Corporation, in whole or in part (an  **<u>"</u>**  **<u>Optional</u> <u>R</u> <u>ede</u> <u>mp</u> <u>t</u> <u>ion</u> <u>''),</u>** from and after the time that the closing price of the Common Stock on each Trading Day occurring during any period of twenty (20) consecutive Trading Days equals or exceeds $0 . 00 I per share (subject to adjustment for stock splits, stock dividends and s i m il ar events). Each share of Series D Stock w ill be redeemed at the Redemption Price, as hereinafter defined.

&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 redemption price for
 each
 Series D Share
 will be
 payable in
 cash and be
 equal to the
 Liquidation
 Value, together with
 an
 amount
 equal
 to the
value of the di v i de n ds
accrued and unpaid
thereon (w h ich
shall be determined a s if the Corporation had elected to pa y
such dividends in cash, notwithstanding that the Corporation had e l ec t e d to pay them in the
form of PIK Dividends) , whether or not earned or declared or whether funds are legally available for the payment thereof, through the Redemption Date (the  **<u>''</u>**  **<u>R</u> <u>ede</u> <u>mpt</u> <u>ion</u> <u>Pri</u> <u>ce</u> <u>").</u>** The aggregate
payment to each Holder to be r e deemed sha ll
be rounded up to
the nearest
cent.

&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 Corporation shall give notice of an Optional Redemption **(a <u>"</u>**  **<u>Re demption</u> <u>Notice</u> <u>'')</u>** to each Ho l der at his registered address not less than 30 days prior to the date fixed in such notice for the Optional Redemp tion (the <u>"</u> <u>Optional</u> <u>Redemption D</u> <u>ate</u> <u>").</u> An Optional Redemption No tice shall state (i) that the Corporation has elected to redeem all or a portion of the outstanding shares of Series D Stock, as specified in such notice, (ii) the number of shares of Series D Stock owned by the Holder that are being redeemed, (iii) the R e demption Price, (iv) the Optional Redemption Date , (v) that unle ss the Corporation defaults in the pay ment of the Redemption Price, all shares of Series D Stock called for redemption shall cease to accnie dividends after t the Optiona l Redemp tion Dat e and shall cease to be outstanding after such dat e and (vi) any other information required by applicable law to be included therein. An Optional Redemption Notice shall be i rrevocab l e . On or after an Op tional Redemption Date, (i) each Holder shall deliver the certificate or certificates repre se nting suc h Ho ld er ' s shares of Ser i es D Stock to be redeemed to the Corporation at the place specified in the Optional Re demption Not i ce and (ii) immediately upon such delivery, the Corpora tion shall deliver the Redemption Price for such shares of Series D Stock to such Holder . If less than all of a Holder ' s shares of Series D Stock represented by any such cert i ficate are redeemed, a new certificate shall be issued at the costof the Corporation to such Ho l der representing such Holder ' s unredeemed shares of Series D Stock.

&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) !fa Redemption Notice has been given pursuant to this
 Section *5* and
 if,
 onor before the
 Redemption Date , the fund s necessary
 for suc h redemp
 tion
 shall have been se t aside b y the Corporation,
 separate and apart from its other funds , in trust for the *pro raw* benefit
 of the Holders
 of
 shares
 of
 Series D Stock so called
 for
 redemption, then, notwithstanding that any certificates
 for suc h shares have
 not been
 surrendered
 for
 can
 cellation, di v id ends shall cease to accru e on the
 Redemption Dat e on
 shares
 of
 Series D Stock
 to be redeemed,
 and
 at the clo se of
 business
 on
 the R e demption
 Date,
 the Holders
 of
 such shares shall
 cease
 to
 bestock holders with
 respect
 to those shares,
 shall have no interest
 in
 or
 claims again st the
 Corporation
 by v i rtue
 thereof
 and s hall have
 no voting
 or
 other
 rights
 with
 respect
 thereto,
 except
 the
 right
 to
 receive the Redemp tion
 Price
 upon
 surrender
 of their certificates,
 and
 the shares evidenced
 thereby shall no longer be outstanding. An y money s so set aside
 by the Corporation
 and unclaimed at the end
 of
 two
 (2) years from the
 redemp- tion d a t e shall revert to the Corporation, after which reversion the Ho l d
ers of such shares so called for redemption shall look only to the Cor poration for the payment of
the redemption p r i ce . Any interest accrued
on funds so deposit ed shall be paid to the Corporation from time to time.

&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) !fan Optional Redemption Notice ha s been
 given pursuant
 to this
 Sec
 tion *5,* and
 any
 Holder sha ll , prior to
 the
 close
 of business on the Op tional Redemption Date , give
 written notice to
 the
 Corporation
 pursuant
 to
 Section
 6 below of
 the
 conversion
 of any or
 a ll of the shares to be redeemed
 he l d by the
 Ho l der , such r e demption sha ll not become e ffec tive
 as to such
 shares to be
 converted
 and suc h conversion shall become effective as provided in Section
 6 below, whereupon any
 funds depos ited b y the
 Corporation,
 or
 on its behalf, with
 a payment
 agent or
 set a s i de by the
 Corporation,
 separate
 and
 apart
 from
 its
 other
 funds, in trust
 for the r e dempt i onof such shares sha ll (subject to any
 rightof the holder
 of
 such shares to receive the dividend
 payable
 thereon
 as provided
 in Section
 6) immediately upon such
 conversion be r et urned to the
 Corpo
 ration
 or,
 if then
 held
 in trust b y the
 Corporation, sha ll be discharged
 from the
 trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) In every
case of redemption of less than a ll of the ou t sta nding shares of
Series D Stock pursuant to this Section *5,* shares of Series D Stock to be redeemed sha ll be selected *pro* *rota* on the
basis of
the numberof shares of Series D Stock owned b y each Ho l der as of the date on which the
Redemption Notice is
given to the Holde rs, provided that only whole shares shall be se l ec t ed for rede mp t i o n .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Co11versioll.

&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) From
 and after February I ,
 2016,
 each
 Holder
 shall
 have the right,
 at any time and
 from time to time
 toconvert all or
 any
 portion
 of the shares
 of
 Series D Stock
 held by him
 into
 shares
 of
 Common
 Stock, such that each
 share
 of
 Series D Stock that suc h Holder
 e l ec t s so to convert
 shall be converted into a number of shares of
 Common
 Stock determined
 by
 dividing the
 L i quidation Va l ue b y the
 Conversion Price.

&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) As promptl y a s practicable after the surre nder (a s herein provided) of shares of Series D Preferred Stock for conversion, together with a notice of conversion in the form prescribed b y subsection (I) of this section 6 (a ''Co n vers i o n Notice''), the Corporat i on shall deliver or cause to be delivered to or upon the written order of the Ho l der , certificates repre senting the number of fully paid and no na ssessa b l e shares of Common Stock into wh i c h the shares of Series D Preferr e d Stock shall have been converted. Subject to the fo ll ow i ng provi s i ons of this Subsection (b), such conversion s h a ll be deemed to have been made at the clos e of busi ness on the date on which such shares of Series D Preferred Stock shall have been surrendered for conversion together with a Conversion No tice (t h e " Conversion Dat e"), and the righ t s of the Ho l der with respect to his shares of Series D Preferr e d Stock as suc h (to the extent that shares thereof are converted) shall cease at suc h time and the person or

persons entitled to receive shares of Common Stock upon conversion of the shares of Series D Preferred Stock shall be treated for all purposes as having become the record holder or holders of such shares of Com mon Stock at such time; *<u>provided, however,</u> <u>thaJ</u>* no such surrender on any date when the stock transfer books of the Corporation shall be closed shall be effective to constitute the person or persons entitled to receive shares of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on such date, but such surrender, together with a Conversion Notice, shall be effective to constitute the person or persons entitled to receive such shares of Com mon Stock as the record holder or holders thereof for all purposes at the close of business on the next succeeding dayon which such stock trans fer books are open or the Corporation is required to convert the shares of Series D Preferred Stock. The Corporation will, at the time of any partial conversion of the shares of Series D Preferred Stock, upon re quest of the Holder, acknowledge in writing its continuing obligation to the Holder in respect of any rights to which he shall continue to be en titled underthe shares of Series D Preferred Stock as ineffect after such conversion. *<u>provided 1hat</u>,* the failure of the Holder to make any such request shall not affect the continuing obligation of the Corporation to the Holder in respect of 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;(c) If the day
 on
 which
 conversion
 rights are exercised shall not be a busi ness
 day at the palace where notice of
 conversion i s to
 be g i ve n , then such
 conversion rights will
 be deemed to be
 exercised
 on the next
 suc
 ceeding day which is a
 Business
 Day in such place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No
 adjustment
 in respect of
 dividends shall be made upon conversion
 of the shares
 of
 Ser i es D
 Preferred Stock.
 The
 Corporation
 shall
 pay all unpaid
 dividends on
 the
 shares
 of
 Series D
 Preferred Stock
 so
 converted
 which has accrued to (but not
 including) the
 date upon which suc h con vers i o n is deemed to have been effected in accordance with
 thisSubsec tion (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;(e) The Conversion Price for the conversion of shares of Series D Preferred Stock into shares of Common
Stock shall be ninety percent (90%) of the Current Market Price. As used in
the previous
sentence, the term ''Cur rent
Market Price'' means the average of
the d a il y closing price for a share
of Common Stock for the three (3) consecutive
trading days end ing on the trading day
immediately prior to the day on
which a shares of Series D Preferred Stock
are surre nd ere d for conversion, together a Conversion Notice. A trading day shall be any day on
which the Com mon Stock
is able to be traded
onan organized sec u r i t i es market or
trad ing system in the United States of America, whether or not
the Common
Stock actually is traded on suc h day. The closing price for each day shall be the
last reported sales price, or, in case
no reported sale takes place on such day,
the average of the closing bid and
asked prices, regular
way, in either case, as qu o t e d on the pr in c i pa l United States
market for the Common Stock, a s detennined by the Board
of Directors of the Cor poration or if, in the judgment of the Board of Directors of the Corpo ration, there exists no principal United States market for the Common Stock, then
as determined by the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) If the
 Corporation shall at any time consolidate or merge with or into another corporation, the Holder shall thereafter be entitled to receive, upon conversion, the sec u r i t i es
 or property to which a holder of
 the num ber of Shares then deliverable upon such conversion wou ld have been entitled upon such co n sol i dation
 or merger. Corporation
 shall take such steps in connection with such co n so li dation
 or merger a s may be
 neces sary to assure the Ho ld er that the provi s i o n s
 of this Agr ee m en t shall thereafter be applicable,
 a s nearly a s reasonably may be
 in re l ation to any securities or property thereafter d e li vera ble upon the conversion of this Convertib l e Promi ssory Note including, but not limited
 to, obtain inga written acknowledgement from the continuing
 corporation or other appropriate corporation of its
 obligation to su pp ly
 such secur i t i es
 or property upon such
 co n vers i o n . The sale of all
 or su b sta n t i a ll y all of the a ssets of Corporation shall be deemed a
 co n so li dation
 or merger for the
 foregoing 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;(g) The issuance of
 certificates for shares
 of
 Common
 Stock
 upon th e con vers i o n of
 shares
 of
 Series D Preferred Stock shall be
 made without
 charge
 to
 the
 Holder
 for
 any i ss u e
 or
 stamp tax
 in respect
 of
 the issuance of
 such
 certificates,
 and
 such
 certificates sha ll be issued
 in the
 respec
 t i ve
 names
 of,
 or in such
 names a s may be directed b y, the
 holder
 of the shares
of Series
D Preferred Stock; *<u>provided. however.</u>* *<u>that</u>* the Corpo ration sha ll not be required to pa y any tax which may be payab l e in respectof
any transfer
in vo l ve d
in the issuance
and delivery of any such certificate in a name other than that of the Holder and the Corporation shall not be required
to issue or
deliver such certificates unless or until the person or persons request in g the issuance thereof shall
have pa i d to the
Corporation the amount of such tax or sha ll have established to the sat i sfact i o n of the Corporation that such tax has been paid.

&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) No
 fractional
 shares
 or
 scrip
 representing
 fractional
 shares
 of
 Common Stock shall be
 issued upon the conversion
 of
 Series D Stock nor shall
 any payment sha ll
 be made
 for any fractional
 shares
 of
 Common
 Stock, but in li e u thereof,
 each suc h fractional
 share
 shall
 be
 rounded up to the
 next
 full share. If mor e than
 one
 share
 of Series
 D Stock
 shall be surrendered for conversion at one time
 by the same
 Holder,
 the
 number
 of full shares
 that shall be issuab l e
 upon
 conversion
 thereof
 shall
 be
 computed
 on the ba s i s of
 the
 aggregate number of shares of Series
 D Stock
 so
 surren dered.

&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 written determination of the Board of Directors shall
 be
 conclusive a s to
 the correctness
 of
 any
 computation
 made under
 this Sect i o n 6 in the
 absence
 of manifest error.

&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) !fin any case
 a sta t e
 of facts occurs
 wherein in the
 opinion
 of the Board of Directors
 the other provisions of
 this
 Section

 are
 not stric tl y
 appli
 ca b l e,
 or,
 if str i c tl y
 app li ca b le , would not fair l y protect
 the righ t s of the Holders in
 the event of
 conversion in accordance with
 the
 essentia l in tent and principles
 of
 such provisions, the Board of Directors may make
 an
 adjustment in accordance with such esse n t i al i n t e n t
 and principles so as to protect suc h rights,
 which
 adjustment
 s ha ll be
 final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Notw i thsta n d in g anything to the contrary in this Section 6, the Holder may notexercise his conversion rig h t s t o theexte nt that the sum of(A) the **number** **of shares of Common Stock t h e n beneficially owned b y h i m a nd h i s** **atli** **l iat es and (8) the number of Shares issuabk upon de l i very a Co n vers i on Notice wou l d result i n beneficia] ow n ersh i p by the Ho]der and h i s affiliates of mo r e t h a n 2 . 99 % of the outstanding sha r es of Common Stock (th e <u>'</u> <u>'</u> <u>Li</u> <u>mit</u> <u>")</u> <u>.</u>** **A** **Co n vers i o n Notice relating to a number of sha r es of Common tha t, upon issua n ce, would cause such sum t o exceed the Limit shall be deemed to r e J a t e t o the l argest number of s u ch sha r es issuabk to H o l de r without exceed i ng the Limit. Such b e n eficia l ow n e r ship s ha ll be d e t e rmin ed i n accordance with Sec •** tion 1 3(d) of the Securities Exc ha nge Act of 193 4 ,as amended , and Regulation I 3 d - 3 thereunder. For purposes of this section 6(k), the Holder a nd the persons **who acquire shares** **of Series D S t oc k from h i m shall be deemed to be a single** H o l de r .

&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 n o ti ce of the election by a
Holder to convert
any or a ll of his shares into Co mm o n Srock shall be addressed to the Corporation and shall be in the following form:

The undersigned hereby elects to convert - -- (_sha)res of Series D PIK Convertible Preferred Stock of Metrospaces, Inc. (the *;. Preferred Stock''),* represented by stock certificate No(s).-- -- -- ---' into shares of its common stock according to the terms and conditions of the Certificate of Designations relating to the Preferred Stock, as of the date written below.

Such notice shall also set forth the name and address of such Holderand such state and federal tax information as the Corporation or its transfer agentare required by law or regulation to obtain and shall besigned and dated by him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>Srntu.< o(Slwres</u>.* All shares of
 Series D Stock
 that
 are
 at
 any
 rime
 redeemed
 or
 converted
 pursuant to Section *5* or

 and a ll shares
 of
 Series D Stock that are otherwise
 reacquired
 by
 the
 Corporation and subsequently
 canceled b y the Board of Directors , shall not
 be subject
 to
 reissuance
 as
 shares
 of
 Series D Stock , but shall be
 restored to the sta tu s
 of
 authorized
 but undesignated shares
 of preferred stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.  ***<u>Voti11g</u>.*** The
 Ho ld ers
 shall have
 the following voting
 rightsand
 no others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder of
 shares
 of
 Series D Stock
 shall have the right
 to
 cast
 at a meet in g
 of stockhol d ers
 or b y consent a number of votes equal to
 the
 num ber
 of
 shares
 held
 by him,
 divided
 b y the Current tvlarket Price on the record date for such meeting or
 on the
 dat e on
 which he signs
 such
 consent,
 rounded up to
 the
 next full vote .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Ho l ders
 shall have the ri g ht , voting se pa ra t ely
 as
 a
 class,
 to
 cast
 one
 vote
 for
 each
 share
 of Series
 D Stock held
 b y them onanyquestion
 or
 matter (i) on which they are entitled by the GCL to vote separately as a series, irrespective of whether they a l so
entitled are e n t i t l e d to vote on suc h ques tion or matter
pursuant to Subsection (a) of
this section 8, (ii) which, if ap proved,
would result in the s i mu lta neous
existence of more than one class or se ri es
of the Corporation's common stock, (i ii)
the liquidation of the Cor poration, or (iv) a reclassification
of the Common Stock or a consolidation
of the Corporation with, or merger of the Corporation with, an y other cor poration, other than the merger of a wholly
owned subsidiary of the Corpo ration with and into the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *<u>Restricti<111s a11tl Li111it111im1s</u>.* So
 long
 as
 any
 shares
 of
 Series D
 Stock re main
 outstanding, the Corporation,
 shall not, without
 the
 vote
 or
 written
 consent b y the Holde rs of
 a
 majority
 of
 the
 outstanding shares of
 Series D Stock,
voting together as a s i ngle clas s :

&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) redeem, purchase or
 otherwise
 acquire
 for
 va l ue
 (or
 pay into or
 set
 aside for
 a s ink i ng or
 other
 analogous
 fund
 for
 such
 purpose)
 any share or
 shares
 of Serie s D Stock,
 except
 for
 (i)
 a
 tra n sact i o n
 in which all out
 standing sha r es of Series
 D Stock
 are
 concurrently purcha se d or
 other
 wise
 acquired
 other than by
 redemption,
 (ii)
 conversion
 into
 or
 ex
 change
 for
 Junior Stock or
 (iii)
 redemption
 as
 a
 w h o l e
 or in
 part
 in ac cordance
 with
 Section
 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) redeem, purchase or
 otherwise
 acquire
 (or pay into or
 set
 aside for
 a sinking
 or
 other analogous fund
 for
 such purpose) any shares of Junior Stock except
 by
 conversion
 into
 or
 exchange
 for
 other
 Junior
 Stock;
 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) alter, modify or amend the terms of
 the Series
 D Stock
 in any way .

The Corporation shall not issue more than 200,000 shares of Series DStock otherwise than as PIK Dividends.

IO. *<u>Cerf(lit1De[i11itio11s</u>.*As used in this Certificate of Designations, the follow ing terms shall have the following respective meanings:

**<u>"</u>** **<u>Bu</u><u>s</u><u>ine</u><u>ss</u> <u>Da</u><u>v</u><u>·•</u>** shall mean any day except a Saturday, Sunday or day on which banking institutions are legally authorized to close in tvliami, Florida.

<u>''</u><u>CapitalStock</u><u>''</u> means anyand all shares, interests, rights to purchase, war rants, options, participations or other equivalents of or interests in the com mon stock or preferred stock of such person or entity, including, without limitation, partnership and membership interests.

<u>''</u><u>GC</u><u>L</u><u>''</u> means the General Corporation Law of the State of Delaware.

<u>"</u><u>H</u><u>older</u><u>''</u> means any holder of shares of Series D Srock, all of such holders together being the **<u>"</u>** **<u>Ho</u><u>l</u><u>ders</u><u>.''</u>**

IN \VJTNESS \VHEREOF, the Corporation has caused this Certificate to be dulyexecuted on its behalf by its Senior Vice President, thereumo dulyauthorized this sevemh dayof September 20I*5 .*

## Ex-3

![](ex50_001.jpg)

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![](ex50_005.jpg)

![](ex50_006.jpg)

![](ex50_007.jpg)

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![ex50_00](ex50_013.jpg)

## Ex-3

**CERTIFICATE OF AMENDMENT**

**TO**

**CERTIFICATE OF DESIGNATIONS OF**

**SERIES C PIK CONVERTIBLE PREFERRED STOCK**

**OF**

**METROSPACES, INC.**

Metrospaces, Inc., a corporation organized under and existing under the laws of the State of Delaware (the "Corporation"), certifies that:

FIRST: The name of the Corporation is Metrospaces, Inc. The Corporation was originally incorporated under the name "Strata Capital Corporation" The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on December 10, 2007. Certificates of Amendment to the Certificate of Incorporation were filed on January 18, 2008, March 31, 2010, October 31, 2012, August 23, 2019, and December 15, 2021.

SECOND: The Corporation's Certificate of Designations of Series C PIK Convertible Preferred Stock was filed with the Secretary of State of the State of Delaware on May 29, 2015.

THIRD: The Board of Directors of the Corporation, acting in accordance with the provisions of Sections 141 and 242 of the Delaware General Corporation Law, adopted resolutions to amend Paragraphs 1 (Number of Shares; Designation; Stated Value) and 2 (Rank) of the Certificate of Designations of Series C PIK Convertible Preferred Stock to read in their entirety as follows:

***"1. <u>Number of Shares; Designation; Stated Value</u>****<u>.</u>* A total of 100,000 shares of preferred stock, par value $0.000001 per share, of the Corporation is hereby designated as Series C PIK Convertible Preferred Stock (the "**<u>Series C Stock</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***2. <u>Rank</u>.*** Series C Stock shall, with respect to payment of dividends, redemp- tion payments, and rights upon liquidation, dissolution or winding-up of the affairs of the Corporation, rank:

&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) Senior and prior to the common stock, par value $0.000001 per share, of the Corporation (the "**<u>Common Stock</u>**"), the Corporation's Series B PIK Convertible Preferred Stock ("**<u>Series B Stock</u>**"), and the Corporation's Series E Convertible Preferred Stock ("**<u>Series E Stock</u>**"). The Common Stock, the Series B Stock, the Series E Stock, and any other classes or series of the Corporation's capital stock that are junior to the Series C Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution, or winding- up of the affairs of the Corporation are hereinafter referred to as "**<u>Junior Stock</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;(b) Pari Passu with the Corporation's Series D PIK Convertible Preferred Stock (the "**<u>Series D Stock</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) Except for the Series D Stock provided above, junior to any series of preferred stock that may have been or in the future may be issued by the Corporation, including, but without limitation, the Corporation's Series F Convertible Preferred Stock and Series Z Convertible Preferred Stock. Any shares of the Corporation's capital stock that are senior to the Series C Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution or winding-up of the affairs of the Corporation are hereinafter referred to as "**<u>Senior Stock</u>**.""

FOURTH: This Certificate of Amendment to the Certificate of Designations of Series C PIK Convertible Preferred Stock was duly adopted in accordance with Section 242 of the Delaware General Corporation Law.

---

| |
|:---|
| METROSPACES, INC. |
| ![](image_001.gif)<br> Oscar Brito |
| Chief Executive Officer |

---

## Ex-3

METROSPACES, INC.

![](img_062.gif)

CERTIFICATE Of DESIGNATIONS<br> OF

SERIES C PIK CONVERTIBLE PREFERRED STOCK

![](img_063.gif)

*pur sutmt to Sectio11 15 I(g) of the <u>G</u><u>e</u><u>11</u><u>era</u><u>l</u> <u>Corporatio11 Laov of</u> <u>th</u><u>e</u> <u>Stateof'De/aovare</u>*

 

The undersigned DOES HEREBY CERTIFY 1ha1the following rcsolu1ion was duly adop1cd on May 29, 2015, by 1hc unanimous wrinen consent of 1hc directors of l\1ETROSPACES, INC., a Delaware corporation (1hc <u>'"</u><u>Corporation</u><u>"'),</u> and that said resolution applies 10 100,000 shares of the 10,000,000 shares of the authorized preferred s1ock, par value S0.000001 per share, of the Corpora1ion:

RESOLVED, that pursuant to the authority conferred on the Board of Directors of 1he Corporation (the <u>"</u><u>B</u><u>oard of</u> <u>Dir</u><u>ecto</u><u>r</u><u>s")</u> by 1he Corporation's Cenificate of In corporation, as amended, the issuance of a series of prefe1Ted stock, par value $0.0000I per share, of the Corporation; and that the President of the Corporation be, and he hereby is, authorized and directed 10 execute and file with the Secretary of State of the State of Delaware a Cenificate of Designations fixing the designa tions, powers, preferences and rightsof the shares of such series, and the qualifica tions, limitations or restrictions thereof (in addition to the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, set fonh in the Cenificate of Incorporation which may be applicable to the Corpora tion's preferred stock) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>N</u>* *<u>umb</u> <u>er</u> <u>o(Slwre.<;</u> <u>D</u> <u>e</u> <u>sig1wtio11;</u> <u>Stated</u> <u>Mtlu</u> <u>e</u> <u>.</u>* A t o t a l of 1 00 , 000
 s h a r es of
 preferred stoc k , pa r va l ue
 S0.0000 1 per
 s h a r e,
 of
 the
 Corporation
 is
 hereby d es i g nat ed
 as Series C PIK Co n veni b le Preferred
 Stock (the <u>"</u> <u>Series C</u> <u>S</u> <u>tock</u> <u>"').</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Ra11k</u>.* Se ri es
 C
 Stock
 s h a ll , w i th r espec t to payme n t
 of
 d i vide nd s, r ede mp t i o n payments and rights up o n
 li q u idation , dissolution or winding-up of th e
 affa ir s
 of th e
 Corpora t ion, rank:

&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) Senior and
 pr i or
 to
 the common s t ock , p ar
 va lue $0.00001
 per
 share,
 of
 the
 Corporation
 (the <u>'</u> <u>"</u> <u>Common</u> <u>Stock"')</u> and
 the Ser ie s B
 PIK Co n ve rt ib l e Preferred S t oc k .
 The
 Commo n S t oc k and
 any
 o th e r sha r es
 of 1h e
 Corpora t ion's
 Ca p ita l Srock w hi c h a r e
 j uni o r
 1 0 th e
 Ser i es
 C Stock
 w i th
 respect
 to
 the
 payment
 of d iv i dends and with respect
 to r ede m pt i on,
 payme n t and
 rights upo n liqu id at i o n ,
 d i ssolut i o n or wi ndin g -u p
 of the affa ir s
 of
 the
 Corpora1 i on
 a r e hereinafte r r efe rr ed
 to
 as <u>'\</u> <u>luni</u> <u>o</u> <u>r</u> <u>Stock.</u> <u>"</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;(b) No t
 le ss than *pa* *ri pass11* w it h any ser i es
 of preferred stock
 wh i ch may
 in
 the
 future
 be issued
 by
 the
 Corporation.
 Any
 s ha res
 of
 the
 Corpora
 t i on's
 Cap it al Stock wh i c h are
 sen i o r lo
 the
 Series
 C
 Stock
 w i th
 respect
 to
 the payment of dividends and
 wit h respect

 redemption,
 payment and rights u po n
 li quidation , d i ssolut i o n or
 windi n g -u p
 of
 the
 affa ir s
 of
 the
 Corporat i on
 are hereinafter
 referred lo
 as <u>"S</u> <u>enior</u> <u>Stock."</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;3. *<u>Divide11ds</u>* *<u>.</u>* The
 Holders of
 shares
 of
 Series
 C
 S t ock
 s h a ll be
 e nt itled to re ceive d i vidends
 a t
 the quanerly
 rate of
 $2. 1 875
 pers h are
 and
 no
 more . Div i dends
 on s hares of
 Ser i es
 C
 S t ock
 shall be fully
 cum ul a ti ve , accru in g , w i th
 out
 interest,
 from
 the date of
 orig i nal
 issuance
 of
 Series
 C
 Stock
 thro u gh the date
 of
 redemption
 o r conve r sion thereof , and
 to the extent
 so
 dec l ared by the Board of Directors shall be
 payable in arrears on March 3 1 , J une
 30 , September
 30 and
 December 31
 of
 each
 year , except that i f
 such date i s not a Business
 Day, the dividend shall
 be payable on the first
 immediate l y
 suc
 ceeding Business
 Day (each
 s u ch date being
 hereinafter referred to
 as
 a <u>"</u> <u>D</u> <u>ividend</u> <u>Pavment Date</u> <u>"</u> <u>)</u> <u>.</u> Un t il December 3 I , 20 1 9
 (t h e
 "P IK Termina
 t i o n Date ") , divi d e nd s
 on
 shares
 of
 Series
 C
 Stock
 shall
 be paid , at the Cor
 porat i on's
 opt i o n ,
 (a)
 in
 fully
 paid
 and nonassessable shares
 of
 Common
 Stock
 (s uc h dividends paid i n
 such form being her ei n ca ll ed <u>"</u> <u>P</u> <u>I</u> <u>K</u> <u>D</u> <u>ivi dends</u> <u>"</u> <u>)</u> or
 (b)
 inca s h onlyo u t
 of
 fu nd s le ga ll y available therefor. PIK
 Div i dends
 shall be
 paid
 by i ss ui ng
 additiona l fully
 paid
 and n onassessable
 shares
 of
 Series
 C
 Stock
 at
 the r ate
 of
 0.00021875
 of
 a
 s h are
 of
 Series
 C
 Stock
 for
 eac h $1 . 00
 not
 paid
 in cash a nd s hall for
 all purposes
 be
 deemed to have
 been issued
 on
 the respective dates
 on
 w hich cash dividends, i f de clared,
 would
 have been
 payable, n otwi th s t andi n g
 a n y later
 date o n which certificates r eprese n ting PIK Dividends sha ll
 h ave been issued .

Each dividend shall be paid to the Holders of record as they appear on the stock register of the Corporation on the record date, which shall be not less than IO nor more than 30 days preceding the applicable Dividend Payment Date, as shall be fixed by the Board of Directors. Dividends payable on each Dividend Payment Date with respect to shares that have been issued for less than a full calendar quarter shall be computed on the basisof a 360-day year of twelve 30-day months and rounded up to the nearest cent. Dividends on account of arrearages for any past Dividend Payment Date may be declared and paid at any time, without reference to any scheduled Dividend Payment Date, 10 Holders of record on such date, not exceeding 30 days preceding the payment date thereof, as may be fixed by the Board of Directors. Divi dends shall accrue regardless of whether the Corporation has eamings, whether there are funds legally available therefor and/or whether declared. No interest shall be payable with respect 10 any dividend payment that may be in arrears. Holders of shares of Series C Stock called for redemption be tween the close of business on a dividend payment record date and the close of business on the corresponding dividend payment date shall, in lieu of receiving such dividend on the Dividend Payment Date fixe-d therefor, re ceive such dividend paymen1 on 1he date fixed for redemption together with all other accnied and unpaid dividends to the date fixed for redemption.The Holders shall no1 be en1i1Jcd to any dividends other than the dividends pro vided for in this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Liq11idatio11</u>* *<u>.</u>* (a)
 The li q u i d a t io n val u e
 of
 eac h share
 of
 Series
 C
 Sloc k ,
 in
 case
 of th e
 vol u ntary
 o r
 i nvo l u n tary
 liq ui da t ion,
 disso l utio n or
 wi ndin g -u p
 of1he
 affairs
 oflhe
 Corpora ti o n ,
 shall
 be
 an
 a m ou nt equa l
 1 0
 $100.00,
 sub j ecl t o
 adj u st m en t in
 t h e
 event
 of
 a
 s t ock
 s p li t ,
 stock
 div i dend
 or
 si m ila r eve nt a p p l icab l e t o
 Series
 C
 Stock
 (the <u>"</u> <u>Liquidation Value</u> <u>"),</u> pl us
 an
 a m ou nt equa l 10
 the
 va lu e
 of
 d i vidends
 acc ru ed
 a nd u n pa i d th ereon
 (which
 shall
 be d e t e rm ine d as i f th e
 Corpo r a t ion h ad
 elec t ed

 pay s uch d iv i dend s i n
 cas h , n otwi t hs t anding th a t
 th e
 Co rpo rat i o n had
 e l ected
 to p ay th e m in th e
 fonn
 of PIK
 Di vi d e nd s),
 whether
 o r no t declared , t o th e
 payme n t d a l e .

&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) l n th e
 eve n t
 of
 any
 vo l u n tary
 or i nvol u n t ary li q u ida t ion , disso l u t io n o r w indi ng- u p
 of t he
 Corpora1 i on
 (a <u>"</u> <u>Liquidation E</u> <u>v</u> <u>ent</u> <u>")</u> <u>,</u> th e H ol d ers
 (i) s hall
 no t be
 ent itl e d to r eceive th e
 L i q u i d a t ion
 Va l ue
 of
 the
 s h a r e s hel d
 b y th e m until
 the
 li q u id atio n va l ue
 of
 a ll Se n ior
 S 1 ock
 s h a ll have
 been
 pai d
 i n
 fu ll , a nd (i i) sha ll be
 en t i t led t o r eceive th e fu ll
 Liq u i d a t ion
 Va l ue
 of1he s h a res
 of
 the
 Serie s C
 S t ock h e l d
 by th e m
 in preference
 to
 a nd in
 prior i ty
 over
 any
 dist ri b u tions u po n t h e Ju n i o r Slock . Upo n
 p ay
 me n t
 in
 fu ll of th e
 L i q u i d a t io n Va l ue t o
 w h ic h
 th e
 Ho l ders
 are
 e n titled,
 1he H ol d ers
 wi ll not
 be
 e n t i t l ed t o
 any fu rther
 part i c i pa t ion
 i n a n y
 dis t r i bu t ion
 of a sse1s
 of
 or b y
 the
 Corporation .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corpo r a t ion
 sh all , no
 la t er
 tha n
 th e
 d a te
 on
 which a L i q uid a t ion
 Eve n t
 occ u rs
 o r
 i s pu blic l y
 a nn ou n ce d ,
 give
 to
 eac h Ho l der
 at
 h i s
 ad d ress
 as
 it
 ap p ears i n th e r eco r ds
 of th e
 Co q iorat i o n writte n
 n o ti ce
 of
 a n y L i q ui d a ti o n Evem , s t aling th e
 p a yment
 d a te
 or
 dates
 w h en
 and th e
 p l ace
 o r
 p laces
 where t he
 amou n ts
 d i str i bu ta b l e i n
 s u c h circumsta n ces
 s h a ll be p ayab l e .

&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) \ 1/ h e n ever th e
 dist ri bu t ion
 p r ovi d ed
 fo r i n
 thi s
 Sec t ion 4 shall
 bepaya b le i n
 secur iti es
 or
 pro p e r ty
 other
 1ha n c a s h ,
 1he
 value
 of
 suc h d i str i bu t ion
 s h a ll be th e
 fa ir mar k et
 val u e
 of
 s u ch
 sec u ri1 i es
 or
 oiher
 p r o p erty
 as d e
 te nn i n ed in good
 fa ith by th e
 Boa r d
 of
 D ir ecto r s .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.**  ***<u>Red</u>***  ***<u>e</u> <u>mption</u> <u>.</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>Optional</u> <u>R</u> <u>e</u> <u>demption.</u> (i)
 After
 December
 31 , 2017 , shares
 o f Se ,i es
 C
 Stock
 w ill
 b e r edeemab l e
 a t t h e
 optio n of th e
 Co r pora ti o n , i n
 whole
 or in pa rt (an <u>"</u> <u>Optional Redemption</u> <u>")</u> <u>,</u> from
 and a fter th e t i m e th at th e cl os in g
 pr i ce
 o f theCom m o n S t ock
 on
 each
 Tra di ng D ay
 occ u rri n g
 d u r
 ing
 a n y p e ri od
 of
 twen t y
 (20)
 co n sec ut ive
 T r adi n g
 Days
 equals
 o r ex
 ceeds
 $0 . 001
 pe r s h are
 (subjec t 10ad j ustme n t
 fo r stock s p lit s, s10c k d i v
 idends
 and
 sim il ar
 even t s) . Each
 s h are
 of S er i es
 C
 Stock
 w ill be
 re d eeme d at
 the R e d e mp 1ion P r i ce,
 as
 he r e i na ft er
 define d .

&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>i\</u> <u>1andatorv Red</u> <u>e</u> <u>mption.</u> On th e
 fo ll ow i ng
 dates,
 the
 Co r porat i o n s h a ll redee m the
 followi n g
 perce n tage s of th e
 o u ts t andi n g
 Series
 C
 Stoc k (a <u>'"</u> <u>Mandatorv Redemption</u> <u>")</u> <u>:</u> 

---

| | |
|:---|:---|
| December 31, 2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20% |
| December 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25% |
| December 31, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33-1/3% |
| December 31, 2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50% |
| December 31, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100% |

---

Each of such dates is referred to as a <u>'"</u><u>Mandator</u><u>v</u> <u>Redemption</u> <u>D</u><u>ate</u><u>.</u><u>"</u>

Each share of Series C Stock will be redeemed at the Redemption Price, as hereinafter defined.

ln theevent that the Corporation fails, in whole or in part, to redeem the requisite number of shares of Series C Stock on the first four of the Mandatory Redemption Dates, a Holder ofshares of Series C Stock that have not been redeemed shall elect and give notice to the Corporation of such election, within 30 days after any such Mandatory Redemption Date, either (i) to exercise his remedies under the Pledge Agreement (as hereinafter defined") with respect to some or all of such shares, in which event,such shares shall be redeemed as of such Mandatory Redemption Date, or (ii) to have the balance of such shares included in the Series C Shares to be redeemed on the succeeding Mandatory Redemption Dates, or in the case of such failure on the Mandatory Redemption Date to oc cur on December 31, 2025, on the Mandatory Redemption Date to occur on December 31, 2026 (a ''Clause (ii) Election"), in which event, he shall have waived any remedy that he may have with respect to such failure. In the event that notice of such election is not timely given, the holder shall be deemed to have made a Clause (ii) Ele-ction. Shares of Series C Stock as to which a Clause (ii) Election has been made or deemed to be made shall not have the right to be redeemed in preference to any other shares of Series C Stock, but shall be subject to the appor tionment set forth in the preceding paragraph.

&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
 re d e m ption p r i ce
 for
 each
 Ser i es
 C
 S h are
 will b e
 payab l e
 i n cash
 a n d
 be
 equ al
 t o
 the
 L i q u i d a t ion
 Val u e , t oget h er
 w i th
 a n a m oum
 eq u a l to
 the
 value
 of th e
 div i de n ds
 acc ru ed
 a n d
 u n paid
 thereo n (w h ich
 s h a ll be d e t erm in ed
 a s if th e
 Co rp ora ti o n h ad
 elec t ed
 to
 pay
 such
 d i v i dends
 in
 cas h ,
 notw it hsta n d i ng th a t the
 Co r porat i on
 had
 e l ected t o
 pay th em
 in
 the
 for m of
 PI K
 Di vi d en d s) , whether
 or n ot
 ea m ed
 or
 dec l ared
 or
 w h et h er
 funds
 are
 lega ll y
 available
 fo r th e
 pay m e n t
 the r eof,
 th r o u gh th e R edemp ti on
 Date
 (t he <u>"</u> <u>R</u> <u>e</u> <u>d</u> <u>e</u> <u>mption Pr</u> <u>i</u> <u>c</u> <u>e</u> <u>"</u> <u>).</u> The
 aggregate
 pay m en t to
 eac h Ho l der
 to
 be
 redeeme d sha ll be
 rou n ded
 up t o th e
 nearest
 ce n t.

&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) The
 Corpora t ion
 sha ll give
 no t ice
 of
 a
 Ma n datory
 Re d e m ptio n or
 an
 Optional
 Re d e mp t i on
 (a <u>"</u> <u>R</u> <u>edemption Notice</u> <u>"</u> <u>)</u> t o
 each H o ld e r a 1 h is
 registe r ed
 add r ess n o t less
 tha n 30
 days 1 > r ior
 to
 the
 da t e fi xed
 in
 such
 no t ice
 for
 the
 Op ti o n a l Redemp t io n (t h e <u>'</u> <u>'</u> <u>Optional</u> <u>R</u> <u>edemption</u> <u>Date</u> <u>")</u> a n d
 i n
 th e
 case o f a Mandatory R ede m pt i o n , not
 less
 tha n 30 d ays
 pr i o r to
 the
 Ma nd a t ory
 Rede m pt i o n Da t e.
 A R edem pti on
 Notice in
 r es p ec t of
 a n O p tional R ede mp tion
 (an <u>"</u> <u>OJ>tional R</u> <u>e</u> <u>demption</u> <u>Notic</u> <u>e")</u> s h a ll state
 (i)
 tha t the
 Corpora t ion
 has
 e l ected
 to
 re d eem
 all
 o r a
 po rti o n of th e

outstanding shares of Series C Stock, as specified in such notice, (ii) the number of shares of Series C Stock owned by the Holder that are being redeemed, (iii) the Redemption Price and (iv) the Optional Redemption Date. ARedemption Notice in respect ofa Mandatory Redemption shall state (i) the number of shares of Series C Stock that the Corporation is required to redeem on the Mandatory Redemption Date and the number of shares of Series C Stock that the Corporation is redeeming on the Mandatory Redemption Date (the<u>"</u><u>Actual Mandator</u><u>v</u> <u>R</u><u>ede</u><u>mp</u><u>t</u><u>ion</u><u>"</u><u>,</u> (ii) the number of shares of Series C Stock owned by the Holder that are being redeemed, (iii) the Redemption Price and (iv) the Mandatory Re demption Date. Every Redemption Notice shall also state that (i) unless the Corporation defaults in the payment of the Redemption Price, all shares of Series C Stock called for redemption shall cease to accrue div idends after the Mandatory Redemption Date or the Optional Redemp tion Date, as the case may be, and shall cease to be outstanding after such date, and (ii) any other information required by applicable law to be included therein. An Optional Redemption Notic-e, once given by the Corporation, shall be irrevocable and a Mandatory Redemption Notice, once given by the Corporation, shall be irrevocable in respect of the Actual Mandatory Redemption. On or after a Redemption Date, (i) each Holder shall deliver the certificate or certificates representing such Holder's shares of Series C Stock to be redeemed to the Corporation at the place specified in the Redemption Notice and (ii) immediately upon such delivery, the Corporation shall deliver the Redemption Price for such shares of Series C Stock to such Holder. If less than all of a Molder's shares of Series C Stock represented by any such certificate are redeemed, a new certificate shall be issued at the cost of the Corpo ration 10 such Holder representing such Holder's unredeemed shares of Series C Stock.

&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) lfa R ede m pt i o n Notice
 has been given
 pursua n t
 to
 th i s
 Sect i o n 5 a nd
 if,
 onor before th e Redemption
 Date,
 the
 funds necessary
 for
 such
 redemp
 t i o n s h a ll have been
 set
 as i de by
 the Corporat i o n ,
 sepa r ate
 a nd apa rt from i t s
 other
 funds , i n trust for the *pro rata* benefi t of th e Holders of
 s h ares
 of Series C Stock so ca ll ed for
 redemp t io n , then, n otwit h s ta nding
 that
 a n y
 ce rt ificates
 for
 such
 s h a r es h ave n ot bee n s urr endered
 fo r can
 cella ti on , divi dends
 shall
 cease to accrue
 on th e Redemption
 Date on
 s h ares
 of
 Series
 C
 S t ock t o
 be
 redeemed , a nd at
 the
 c l ose
 of
 bus in ess
 on
 the Redempt i o n
 D ate , the Holders of
 such
 shares
 s hall cease to be
 s to ck holders
 with
 respect to t h ose
 s h a r es , s h all h ave
 no in te r es t in o r cla im s
 aga i nst
 t h e
 Corpora t ion
 by
 v irt ue thereof a nd shall h ave n o
 vo t i n g
 o r o th er
 righ t s
 wi th respect
 thereto, except
 the
 right to receive t h e R edemp
 t i on Price upon
 s u rrender
 of th e ir certifica t es,
 a nd the shares
 ev i denced
 thereby
 shall n o l onge r be
 o u ts t anding.
 A n y
 mo n ey s so
 se t aside
 by th e
 Corpo r a t ion
 and un cla i med
 a t th e
 end
 of
 two
 (2)
 years from the redemp t i o n date shall
 revert
 to th e
 Corporat i o n ,
 after
 wh i c h reversion th e
 Ho l d - ers
 of
 such
 shares
 so
 called
 for redemption s hall look
 on l y
 to
 the
 Cor
 poration
 for the payment
 of the redemption price. Any int erest
 accrued
 on
 fundsso deposited shall be
 paid t o the Co r porat i on
 from
 time to time.

---

| | |
|:---|:---|
| (O | If an Optional Redemption Notice has been given pursuant to this Sec tion 5, and any Holder shall, prior to the close of business on the Op tional Redemption Date, give written notice to the Corporation pursuant to Section 6 below of the conversion of any or all of the shares to be redeemed held by the Holder, such redemption shall not become effec tive as to such shares 10 be converted andsuch conversion shall become effective as provided in Section 6 below, whereupon any funds depos ited by the Corporation, or on its behalf, with a payment agent or set aside by the Corporation, separate and apan from its other funds, in trust for the redemption of such shares shall (subject to any rightof theholder of such shares to receive the dividend payable thereon as provided in Section 6) immediately upon such conversion be returned to the Corpo ration or, if then held in trust by the Corporation, shall be discharged from the mist. |

---

&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) In every case of redemption
 of less than all of the outstanding shares of Series C Stock pursuant to this Section
 5 , shares
 of Series C Stock to be redeemed sha ll be se l ected *pro* *ral(J* on th e basis of
 the numberof s h ares
 of Ser i es C Stock owned by each Holder as of the
 date on w hi ch the Redemption Notice is given to the
 Holders , provided that only whole s h ares
 s h a ll be
 selected for r ede mp tion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.**  ***<u>C</u>***  ***<u>1111versin11</u> <u>.</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) Each Holder shall
 have
 the
 right , at
 a n y
 ti m e
 and from t im e to t i me
 to co,wen all
 or any pon i on
 of
 the
 s h ares
 of
 Series
 C Stock held by h im intoshares
 of
 Common
 Stock,
 such
 that
 each
 share
 of
 Series
 C
 Stock th at such Holder elects
 so
 lo
 convert
 shall be co n vened int o
 a n umber
 of
 s h ares
 of
 Common
 Stock determined
 by
 dividing
 the
 Liquidation Value
 by
 the
 Co n vers i on Price.

&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) As
 promptly
 as
 pract ica b l e after the
 surrender
 (as her ein
 prov ide d)
 of
 s h ares
 of
 Series
 C Pr efe rr ed
 Stock
 for
 conversio n , together with
 a n otice
 of
 convers i on i n th e
 fo nn prescribed
 by subsection
 (I)
 of this sect i o n 6
 (a " Convers i on
 Notice'') , the Corporation
 s hall deliver
 or cause to be
 delivered t o
 or
 upon the wri tt en
 order
 of the Mo l der,
 cen i fic.a t es
 repre
 senting
 the number of
 fully paid a nd no n assessab l e
 shares
 of
 Com m on Stock i n to which the
 sha r es
 of
 Series
 C Preferred Stock
 s h a ll have been convened. Subject
 to the fo ll owing provisions of this
 Subsection (b),
 s u ch
 co n vers i on
 sha ll be
 deemed to
 have bee n made
 at
 the
 c l ose
 of
 busi ness on
 the
 date
 o n wh i ch
 s u ch
 sha r es
 of
 Se ri es
 C Preferred Stock
 s h a ll have
 been
 surrendered
 for
 conversion together wi th a
 Conversion
 No
 t ic e
 (the"Conversion Date ..) , a nd the
 righ t s
 of the Mo ld er
 wit h respec t 10
 his
 shares
 of Series C Preferred Stock
 as
 suc h (t o th e
 exten t
 th at
 s h a r es
 thereofare
 converted)
 shall
 cease
 at
 s u c h time
 and
 the person or
 persons
 entitled to
 receive shares
 of
 Commo n Stock
 upon co n version
 of th e

shares of Series C Preferred Stock shall be treated for all purposes as having become the record holder or holders of such shares of Common Stock at such time; *<u>provided. however. 1h0</u> <u>1</u>* no such surrender on any date when the stock transfer books of 1he Corporation shall be closed shall be effective to constitute the person or persons entitled to receive shares of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on such date, but such surren der, 1oge1her with a Conversion Notice, shall be effective to cons1i1ute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of business on the next succeeding dayon which such stock transfer books arc open or the Corporation is required 10 conven 1he shares of Series C Preferred Stock. The Corporation will, at the time of any partial conver sion of the shares of Series C Preferred Stock, upon request of the Holder, acknowledge in writing its continuing obligation to the Holder in respect of any rights to which he shall continue to be entitled under the shares of Series C Preferred Stock as in effect after such conversion, *<u>p</u> <u>r</u><u>ovided</u> <u>t</u><u>lzai</u><u>,</u>* the failure of 1he Holder to make any such request shall 1101affect the continuing obligation of the Corporation 10 the Holder in respect of 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;(c) I f th e
 day
 o n wh i ch
 co n vers i o n
 r ig h ts
 a r e
 exe r cise d shall n ot
 be
 a
 bus i
 n ess d ay
 at th e
 pal a ce
 where n o ti ce
 of
 convers i on i s t o b e
 g i ve n , th en
 s u c h co n ve r sion ri g h ts
 w ill be d eeme d
 t o
 be
 exercise d on
 the
 next
 s u c
 ceedi n g d ay
 wh i ch
 is
 a Bu si n ess
 Day i n
 s u c h
 p lace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No
 a dj ustment
 i n res p ect
 o f divi dend s
 shall b e m a d e u po n conversion
 ofrhe
 shares
 of
 Series
 C P refe rred S r oc k.
 Th e
 Cor p o r a t ion
 s h a ll pay all
 u n p a i d di v i dends
 o n
 th e
 s h a r es
 of
 Se ri es
 C Pr eferred
 S t oc k so
 co n ve n e d w hi c h has
 accrued t o
 (b u r
 nor
 i ncl u d i n g) th e
 date u po n w hi c h s u c h con
 vers i o n is d eeme d to ha ve
 been
 effe ct ed in
 a cco r da n ce
 wi th th i s
 Su b sec
 t i o n (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;(e) TheCo n vers i o n Pri ce
 fo r t h e
 co n vers i on
 of
 sha r es
 of
 Se r ies
 C P refe rr e d Stock i n t o
 s h a r es
 of
 Co mm on
 S t ock
 sha ll be nin ety
 perce n t
 (90%)
 o f1h e
 C u rren t Ma rk e t
 P r ic e.
 As
 use d i n
 th e
 p r ev i ous
 sente nc e, th e
 tenn ' 'Cu r re nt
 Ma r k e t
 Pr ice·•
 me a ns
 the a ver a ge
 of
 the d a il y cl os in g
 pr i ce
 for
 a
 s h are
 o f Co mm on
 S t ock
 fo r
 1h e thr ee
 (3)
 co n secu ti ve
 tradi n g d ays
 e n d i ng
 on
 t h e
 tradi n g d ay i m m ediately
 p ri o r
 1 0 th e d ay
 o n w hi c h a
 s h a r es
 of S eries
 C P re f e rr e d S t oc k are
 su r ren d ere d fo r co n v er s i o n , t oge th e r a
 Co n ve r s i o n Notice.
 A tr ad in g
 day
 s h all b e
 a n y d ay
 on w h i c h
 th e
 Com
 mo n S tock i s
 a b le
 to b e tr a d e d ona n orga ni ze d secu ri t i es m a r ke t o r t r ad i ng
 sys t em i n th e
 Un it e d S t ates
 of
 A m eri c a,
 whe th e r o r
 n ot th e
 Com m on S tock
 actually i s
 trade d on
 such
 day. 1l1 e
 closi n g
 p ri ce
 fo r e a c h d ay
 s hall be
 1he l as 1 r e p o rt e d sales pri ce,
 o r , in case
 no r epo rt ed
 sale t akes p lace
 o n s u ch d ay , 1h c
 a , • e ra ge
 of th e
 closi n g
 bi d a nd as k ed pr ices , r eg u la r way , i n ei th e r
 c ase , as q uo t ed
 o n
 th e
 p r i n c i pa l U n i t ed
 S t ates
 mar k e t fo r the
 Commo n Stock,as
 deter m ined by th e
 Board
 of
 Direc t ors
 of1he
 Cor
 poration
 or
 if,
 in
 lhe judgment of th e Board of Directors of
 lhe
 Corpo
 rat i o n ,
 !here
 ex i sts
 no principal Un it e d Stales market for
 lhe
 Common
 Stock,
 then
 as
 determ i ned
 by th e Board of Directors of th e
 Corporat i on .

&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 th e
Corpora t ion
s h all
a 1 any time co n solida t e
or merge with
or into another co r porat i on,
lhe Holder shall thereafter be
entitled to receive, upon convers i on,
thesecurit i es
or property lo w h ich
a h older
of the mun ber
of S h ares
the n de l iverab l e
upon s u ch
co n version
wou l d
have been en1i1led upon such conso li dation
or merger. Corporation sha ll take such **steps in connection with such conso** **li dation or merger as may be neces** sary to assure the Ho l der that the provisions of this Agreement sha ll thereafter be appl i cab l e,
as nearly as
reasonab l y may be
in re l ation 10 any
secur it ies or property thereafter deliverable upon
the conversion of this Convertib l e Promissory Nole including , b u l not limited lo , obtain
inga written acknowledgement from!he continuing corporation or other appropr i ate
corpora t ion of its ob li gation
to supply s u ch secur i t i es
or property u pon s u ch conversion. T h e
saleof all orsubsta n tially all of the assets of Corporation shall be deemed a consolidation
or merger for the foregoing 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;(g) The i ssuance
of certificates for shares of Common Stock upon th e
con version of s h ares
of Series C Preferred Stock
shall be made w i thout
charge lo!he Holder for any i ss u e
or stamp tax in respect oflhe issuance of such
cert i fica t es, and s u c h certificates shall be i ssued in the
respec t i ve names of,
o r i n such names
as m ay
be d ir ected by , lhe holder of lh e s h a r es
of Series
C Pr eferred
Stock; *<u>provided,how</u>* *<u>e</u> <u>v</u> <u>er,</u> <u>t/l(l/</u>* t h e
Corpo ra t ion
sha ll not be required
to pay any tax which may be payab l e
in respec t of any transfer in vo l ved
in the issuance and del i very
of any such cert ific ate
in a n a m e
othe r t h an that of the Holder and the Co rp oration
s h all 11 01
be r equi r ed
lo i ss u e
o r deliver
such certificates u n less
or u n t il the person or persons request in g th e
issuance thereof s h a ll have paid
to the Co rp oration the amount
of suc h lax
or sha ll haveestab l is h ed
lo t h e
sa1 i sfac1 i o n of th e
Corporat i o n that such
lax h as
bee n paid.

&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) No fractiona l shares
 or
 scr i p
 representi n g rractional shares
 of
 Common
 Stock
 shall be i ssued u po n the
 conve r s i on
 of
 Series
 CS t ock nor s h a ll any
 payme n t
 sha ll be
 made
 fo r any
 fractio n a l s h ares
 of
 Co mm o n Stock , but
 in li eu
 thereof , each
 such
 fract i ona l s h are
 s h a ll be rounded
 up 10 the n ext full share . If more th an
 one
 share
 of
 Series
 C
 S t ock
 s hall be surre nd ered
 for
 conversio n al
 one time
 by the
 same Holder, t h e
 nu m ber
 of full s h ares
 1ha 1 shall be issuab l e upon
 conversio n thereof s h a ll be
 comp u ted
 o n
 th e
 bas i s
 of th e
 aggrega t e
 nu mb er
 of
 shares
 of
 Series
 C Stock so
 surren dered.

&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 wrillen
 determination of 1h e Board of Directors s h a ll be
 concl u sive
 as 1 0 the co rr ectness
 of
 any
 co mp u1a 1 ion
 made
 under th is
 Sect i o n 6
 in
 the
 absence
 of
 manifest
 error.

&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) If in any
 case a sta t e
 o f fac1s occurs
 w h erei n in the opinion of th e Board of Directors the
 other
 provis i o n s
 of
 this
 Section
 6 *are* no t stric tl y
 app li cable, or,
 if
 str i ctly
 applicable, would
 not
 fairly protect the rights
 of the H olders i n th e
 eve n t
 of
 conversion i n accordance wit h the
 essen t ia l in tent
 and
 pr in cip l es
 of
 s u c h provis i ons, the Board
 of Directors
 may
 make an
 adjustment in accordance
 with
 such
 essent i al intent and
 principles
 so
 as 1 0 protect s uch rights,
 whic h adjustment
 s hall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Notw ith stand in g
 anyt h ing t o the con t rary in th i s Sec ti on
 6,
 the H older
 may not exercise his conversion
 rights 10 theextent
 that
 the s um of(A) 1he **number** **of sha r es of Co mmon Stock then beneficially owne . d by him and his** affi l iates
 and
 (8)
 the
 number
 of
 Shares issuable upon delivery
 a
 Conversion **No** **tice would resu l t in beneficia l ownersh i p by the Holder and hi s affil i ates of** more than 2.99%
 of the outstanding sha re s of
 Common
 Stock
 (the  **<u>"</u>**  **<u>Limi</u> <u>f').</u> A Conversion Notice rcla1ing to a number of shares of Common lhat , upon issuance, would cause such su m t o exceed the Limit sha ll be deeme . d to relate to the largest number of such sha r e . s issuable to H o ld erwithout exceed in g the Limit. Such b ene fi cia l ownership shall be determined in accordance with Sec** tion 13(d)
 of the Securit i es
 Exchange
 Act
 of
 1934,
 as amended,
 and
 Regulation I 3d-3 thereunder.
 For purposesof this sect ion 6(k), the Holder
 and the
 persons who
 acquire shares of
 Series
 C
 Stock
 from
 him sha ll be deemed
 10 bea single Holder.

&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 notice of the election by a Holder t o
 convert any or all of hi s
 s h ares into Common Stock s hall be addressed t o
 the Corpora ti on
 and s h a ll be in the fo l low in g
 fo n n:

The undersigned hereby elects to convert -- (_sha)res of Series C PIK Convertible Preferred Stock of Metrospaces, Inc. (the *" Preferred Stock"),* represented by stock certificate No(s) ' into shares of its common stock according to the terms and conditions of the Certificate of Designations relating to the Prefe1Ted Stock, as of the date written below.

Such notice shall alsoset forth the name and address of such Holder and such state and federal tax information as the Corporation or its transfer agent are required by law or regulation to obtain and shall be signed and dated by him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>Statusn(Slwre.,</u>* *<u>.</u>* All s h ares
 of
 Series
 C
 Stock that are
 a t a n y time
 redeemed o r converted
 pursuant
 to Section 5
 or
 6 and all
 s h ares
 of
 Series
 C Stock that
 are otherwise
 reacquired by
 the
 Corporation and s u bseq uent ly
 cance l ed by the Board
 of
 Directors,
 s h a ll no t be
 subject 1 0 r eissuance
 as sha res of
 Series
 C
 Stock,
 bu t sha ll be restored 1 0
 the
 status
 o f authorized
 bu t undesignated s h a r es
 of
 preferred
 stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *<u>Voti11r:</u>.* The Holders shall have
 the
 following vo tin g rights and
 no o th ers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder of
 shares
 of Series C
 Stock sha ll have the
 right to
 cast
 a t a
 meet in g
 of
 stockholders
 or by consent
 a
 nu mb er
 of
 votes
 equal t o the num
 ber
 of
 s h ares
 held by
 him , divided
 by the
 Current
 Market Price on the record
 date
 for suc h
 meeting or
 o n the
 date on
 wh i c h
 h e
 s i g n s
 s u ch
 consen t , rounded up
 to
 the next
 full
 vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Holders shall h ave
 the right , voting
 separa t ely
 as
 a
 class,
 lo
 cast
 one
 vo t e
 for each sh are of
 Series
 C
 Stock
 held
 by th em
 o n any question or
 mailer
 (i)
 on
 w h ich
 they
 arc
 ent itl ed
 by the GCL 10 vote
 separa t ely
 as
 a se ries , irrespective of
 whether
 they also entit l ed
 are
 entitled to vote
 on
 such ques t i on
 or mailer
 pursuant
 to Subsection
 (a)
 of
 this
 section
 8 , (ii)
 which , if
 ap
 proved , would
 resu lt in the s imultaneou s ex i stence
 of
 more tha n
 one
 class
 or
 series
 of
 the
 Corporation's
 common
 stock , (iii)
 the liquidation of
 the
 Cor
 poration,
 or
 (iv) a rec l assification
 of
 the
 Common
 Stock
 or
 a
 consolidation
 of the Corporat i on
 w ith , or
 merger
 of
 the
 Corpora ti on
 wit h , any
 other
 cor
 porat i on,
 other
 than
 the
 merger
 of a wholly
 owned
 subsidiary
 of th e
 Corpo
 ration
 with
 and
 into
 the
 Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *<u>Restrictim,s</u>* *<u>a11d</u> <u>Li111it11tim1s</u> <u>.</u>* So l ong
 as
 any sha res of
 Series
 C
 Stock
 re
 main
 outstanding, th e
 Corporat i on , s hall not , without
 the
 vote
 or
 wr ill en
 consent by
 the
 Holders of
 a majority of
 the
 outstanding
 shares
 of
 Se ri es
 C
 Stock , voting together as
 a
 single
 c l ass:

&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) redee m , purchase or
 othe r w i se
 acquire
 for value (or
 pay i nto
 or
 set
 aside for a
 s inki ng
 or
 other
 a nal ogous
 fund
 for
 suc h purpose)
 any
 share
 or
 s h ares
 of Series C Stock, except for (i) a transaction in wh ich all ou t s t anding
 shares
 of
 Series
 C
 Stock
 a r e
 co n current l y purchased or
 other wise acquired
 other than by redemption , (ii)
 conversio n i n to
 or
 ex change for
 Junior
 Stock
 or
 (iii)
 redemption
 as
 a
 who l e
 or
 in part i n ac cordance with Section
 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) redeem, purchase or
 otherw i se
 acquire
 (or pay
 into or
 set
 aside
 for
 a
 si n k i ng
 or
 other
 analogous
 fund
 for
 suc h purpose) any
 shares
 of Juni o r Stock
 except by conversion
 into
 or exchange for
 other Junior S t ock;
 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) a lt er , modify or amend the t erms
 of the Series
 C
 Stock
 in any way.

The Corporation shall not issue more than 200,000 shares of Series C Stock otherwise than as PIK Dividends.

---

| | |
|:---|:---|
| I 0. | *<u>Pledge Agreement.</u>* The obligation of the Corporation to pay the Redemp tion Price in respect of each Mandatory Redemption on theapplicable Man datory Redemption Date is secured bya Pledge Agreement, dated as of May 29, 2015, by and between the Corporation and MRT Consulting, S.A. |

---

---

| | |
|:---|:---|
| I I | <u>Certt1ill  *De/i11itio11*</u><u>*s*</u><u>*.*</u> As used in this Ce11ificate of Designations, the follow ing terms shall have the following respective meanings: |

---

<u>"</u><u>B</u><u>usiness Dav</u><u>"</u> shall mean any day except a Saturday, Sunday or day on which banking institutions arc legally authorized 10 close in Miami, Florida.

<u>'·C</u><u>apital</u><u>S</u><u>tock</u><u>"</u> means anyand all shares, interests, rights10 purchase, war **rants** **, options, participations or other equivalentsof or interests in the com** mon stock or preferred stock of such person or entity, including, without limitation, partnership and membership interests.

<u>"</u><u>GCL</u><u>"</u> means the General Corporation Law of1he Stale of Delaware.

<u>"</u><u>H</u><u>older</u><u>"</u> means any holder of shares of Series C Stock, all of such holders together being the **<u>"</u>** **<u>H</u><u>o</u><u>lder</u><u>s</u><u>.</u><u>"</u>**

I**N** **\VITNESS WHEREOF,** the Corporation has caused this Certificate to be dulyexecuted on its behalf by its Senior Vice President, thereunto dulyauthorized this twenty-ninth dayof May 2015.

![](img_039.jpg)<br>r Brito

Senior Vice-President

## Ex-3

**CERTIFICATE OF AMENDMENT**

**TO**

**CERTIFICATE OF DESIGNATIONS OF**

**SERIES B PIK CONVERTIBLE PREFERRED STOCK**

**OF**

**METROSPACES, INC.**

Metrospaces, Inc., a corporation organized under and existing under the laws of the State of Delaware (the "Corporation"), certifies that:

FIRST: The name of the Corporation is Metrospaces, Inc. The Corporation was originally incorporated under the name "Strata Capital Corporation." The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on December 10, 2007. Certificates of Amendment to the Certificate of Incorporation were filed on January 18, 2008, March 31, 2010, October 31, 2012, August 23, 2019, and December 15, 2021.

SECOND: The Corporation's Certificate of Designations of Series B PIK Convertible Preferred Stock was filed with the Secretary of State of the State of Delaware on February 11, 2015.

THIRD: The Board of Directors of the Corporation, acting in accordance with the provisions of Sections 141 and 242 of the Delaware General Corporation Law, adopted resolutions to amend Paragraphs 1 (Number of Shares; Designation; Stated Value) and 2 (Rank) of the Certificate of Designations of Series B PIK Convertible Preferred Stock to read in their entirety, as follows:

***"1. <u>Number of Shares; Designation; Stated Value</u>****<u>.</u>* A total of 2,000,000 shares of preferred stock, par value $0.000001 per share, of the Corporation is hereby designated as Series B PIK Convertible Preferred Stock (the "**<u>Series B Stock</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***2. <u>Rank</u>.*** Series B Stock shall, with respect to payment of dividends, redemp- tion payments, and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation, rank:

&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) Senior and prior to the common stock, par value $0.000001 per share, of the Corporation (the "**<u>Common Stock</u>**") and the Corporation's Series E Convertible Preferred Stock ("**<u>Series E Stock</u>**"). The Common Stock, the Series E stock, and any other classes or series of the Corporation's capital stock that are junior to the Series B Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation are hereinafter referred to as "**<u>Junior Stock</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;(b) Junior to any series of preferred stock that may have been or in the future may be issued by the Corporation, including, but without limitation, the Corporation's Series C PIK Convertible Preferred Stock, Series D PIK Convertible Preferred Stock, Series E Preferred Stock, Series F Convertible Preferred Stock, and Series Z Convertible Preferred Stock. Any shares of the

Corporation's capital stock that are senior to the Series B Stock with respect to the payment of dividends and with respect to redemption, payment, and rights upon liquidation, dissolution, or winding-up of the affairs of the Corporation are hereinafter referred to as "**<u>Senior Stock</u>**.""

FOURTH: This Certificate of Amendment to the Certificate of Designations of Series B PIK Convertible Preferred Stock was duly adopted in accordance with Section 242 of the Delaware General Corporation Law.

---

| |
|:---|
| METROSPACES, INC. |
| ![](image_002.gif)<br> Oscar Brito |
| Chief Executive Officer |

---

## Ex-3

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## Ex-3

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## Ex-3

State of Delaware

Secretary of State

Division of Corporations

Delivered 04:02 PM 12/15/2021

FILED 04:02 PM 12/15/2021

SR 20214107264 - File umber **4471633**

**STATE OF DELAWARE**

**CERTIFICATE O**

**F AMENDMENT**

**OF CERTIFICATE OF**

**INCORPORATION**

The corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware does hereby certify:

**FIRST:** That at a meeting of the Board of Directors of

**METROSPACES, INC.**

resolutions were duly adopted setting forth a proposed amendment of the Certificate oflncorporation of said corporation, declaring said amendment to be advisable and calling a meeting of the stockholders of said corporation for consideration thereof. The resolution setting forth the proposed amendment is as follows:

**RESOLVED,** that the Certificate of Incorporation of this corporation be amended by changing the Article thereof numbered "Article VI" so that, as amended, said Article shall be and read as follows:

The total number of shares of stock which the corporation shall have authority to issue is 36,210,000,000 of which 36,200,000,000 shares shall be common stock, par value

$0.000001 per share, and 10,000,000 shares shall be preferred stock, par value $0.000001 per share.

Each holder of the common stock of the corporation shall be entitled to one vote for every share of common Stock outstanding in its name on the books of the corporation. Shares of preferred stock of the corporation may be issued from time to time in one or more classes or series, each of which class or series shall have such distinctive designation or title as shall be fixed by the board of directors of the corporation prior to the issuance of any shares thereof. Each such class or series of preferred stock shall have such voting powers, full or limited, .or no voting powers, and such preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated in such resolution or resolutions providing for the issuance of such class or series of preferred stock as may be adopted from time by the corporation's board of directors prior to the issuance of any shares thereof pursuant to the authority hereby expressly vested in it, all in accordance with the laws of the State of Delaware. The corporation's prior Certificates of Designation on file with the State of Delaware for such classes or series of preferred stock, as they may have been amended, are hereby retained and ratified.

**SECOND:** That thereafter, pursuant to resolution ofits Board of Directors, a special meeting of the stockholders of said corporation was duly called and held upon notice in accordance with Section 222 of the General Corporation Law of the State of Delaware at which meeting the necessary number of shares as required by statute were voted in favor of the amendment.

**THIRD:** That said amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of Delaware.

IN **WITNESS WHEREOF,** said corporation has caused this certificate to be signed this 9<sup>th</sup> day of December, 2021.

---

| | |
|:---|:---|
| By: | ls/Oscar Brito |
|  | Authorized Officer |
| Title: | _-=C=E-=O; |
| Name: | Oscar A Brito |
|  | Print or Type |

---

## Ex-3

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## Ex-3

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## Ex-3

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