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Security Solutions, Inc. to the Company in exchange for 20 million common shares and 1 million convertible preferred shares of the Company. The Company entered into a Membership Interest Purchase Agreement (the “Agreement”) in which the Company purchased all issued and outstanding Units of Security Grade Protective Services, Ltd. (“Security Grade”), which consisted of 800,000 Class A Units and 200,000 Class B Units. At closing, the Company delivered $800,000 in cash and 207,427 non-qualified stock options (the “Initial Stock Options”). The Company subsequently issued the 207,427 additional stock options on August 1, 2017 as well as a second cash payment of $800,000 pursuant to the original terms of the Agreement. The Company closed the Merger. In connection with closing the Merger, the Company issued 38,184,985 unregistered shares of Company common stock to BioTrackTHC stockholders, of which 1,852,677 shares were held back to satisfy indemnification obligations in the Merger Agreement, if necessary. The Company also assumed the BioTrackTHC Stock Plan, pursuant to which options exercisable for 8,132,410 shares of Company common stock are outstanding so that the BioTrackTHC stockholders will own 48% of the Company on a fully diluted basis. The Company issued 366,700 shares of Company common stock to Engeni US members. Furthermore, the Company may also issue Engeni US members 366,700 and 366,600 shares of Parent common stock upon the achievement of specific objectives. If applicable, the Company will pay Engeni US members the aggregate amount of $100,000, on a pro rata basis, if Engeni SA reaches financial breakeven on or before December 31, 2018, as determined by the Company's Chief Financial Officer and Scott Zienkewicz. The Company issued 38,184,985 unregistered shares of its common stock to BioTrackTHC stockholders, of which 1,852,677 shares were held back to satisfy indemnification obligations in the Merger Agreement, if necessary. The Company also assumed the Bio-Tech Medical Software, Inc. 2014 Stock Incentive Plan (“BioTrackTHC Stock Plan”), pursuant to which options exercisable in the amount of 8,132,410 shares of common stock are outstanding. 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In the event of termination, cancellation or default of any contract with one or more material customer identified in the Agreement within the first 60 days following the closing, the stock options received by the acquiree shall be reduced and/or forfeited to the extent necessary (pro rata based upon their ownership interest in the Company immediately preceding the closing) by a percentage equal to the revenue received by the Company from the terminating customer(s) in the 180 days immediately preceding such termination divided by the revenue received by the Company from all material customers identified in the Agreement in the 180 days immediately preceding such termination. 101667 75000 916643 80979 8729463 467359 202700 264659 567580 154748 210132 202700 117841 125577 P5Y P5Y P5Y P10Y P5Y P4Y6M0D P5Y P5Y P4Y6M0D P10Y P5Y P5Y 3503005 93427 130000 3154578 125000 22044730 93427 591081 130000 11459027 9771195 18541725 8304449 466081 9771195 -3440652 -50858 -69625 -1388176 -91554 -1263095 -4588580 -55463 -120150 -76032 -2530313 -1806622 1147928 169576 664329 842389 435691 847560 141692 12764 1125954 187177 187177 1180604 1180604 187177 1180604 -1180604 0.15 Forty percent (40%) discount to the average market closing price. 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On March 7, 2019, Note Five was converted into 100,000 shares of common stock. In addition, on March 28, 2019, the remaining principal amount was converted into 55,421 shares of common stock. The interest expense associated with Note Five was $0 and $2,402 for the three months ended March 31, 2019 and 2018, respectively. The Company entered into a $450,000 Secured Convertible Promissory Note ("Note Ten") with a third investor. The third investor provided the Company with $450,000 in cash proceeds, which was received by the Company during the period ended March 31, 2019. Note Ten will mature on March 1, 2020 and bear interest at a rate of 25% per annum, payable by the Company half in cash and half in kind on a quarterly basis. 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