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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 6 – Related Party Transactions</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 18, 2019, the Company issued 350,000 shares
of immediately vested common stock for cash proceeds of $350 in connection with services provided to the Company. The shares were issued
to an immediate family member of one of the Company’s members of management who is also a principal owner. The shares had an issuance
date fair value of $1.50 per share, or $525,000 in total. As a result, the Company recognized stock-based compensation expense of $524,650
on the date of issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 10 - Commitments and Contingencies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Litigations, Claims, and Assessments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, the Company is involved in various
disputes, claims, liens and litigation matters arising out of the normal course of business. While the outcome of these disputes, claims,
liens and litigation matters cannot be predicted with certainty, after consulting with legal counsel, management does not believe that
the outcome of these matters will have a material adverse effect on the Company’s combined financial position, results of operations
or cash flows. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources
are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. As of
December 31, 2020 and 2019, the Company had no liabilities recorded for loss contingencies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Operating Lease</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 21, 2019, the Company entered into a lease
for a 10,000 square foot facility consisting of lab and office space. The lease requires monthly payments of $16,667 and expires on November
30, 2025. The Company has arranged for a $100,000 letter of credit in favor of the landlord in lieu of a security deposit, which is included
as restricted cash on the consolidated balance sheet as of December 31, 2020 and 2019. The minimum lease payments for the years ending
December 31 are approximately as follows: $200,000 in each of 2021 to 2024 and $183,000 in 2025. Rent expense was $215,028 and $72,788
during the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 11 – Concentrations</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company had 6 and 2 customers
during the year ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">During the year ended December
31, 2020, approximately 85% of revenues were generated from one governmental entity (“Governmental client”) pursuant to our
contract with such entity. No other client accounted for more than 10% of revenues. 100% of contract assets as of December 31, 2020 are
also related to this Governmental client. Deferred costs and deferred revenues at December 31, 2020 relate to three different clients,
of which one client represents more than 75% of both categories.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">During the year ended December
31, 2019, revenues were generated from the Governmental client pursuant to our contract with such entity, and amounted to approximately
78% of total revenues. Revenues pursuant to sale of products to other clients were approximately 22% of total revenues for the year ended
December 31, 2019. 100% of the contract assets as of December 31, 2019 was from the Government client. Deferred costs and deferred revenues
at December 31, 2019 relate to two different clients.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements
and the amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these financial
statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation, the recognition and
collectability of receivables, the recoverability and useful lives of long-lived assets, and the valuation allowance related to the Company’s
deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the
Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s
estimates and could cause actual results to differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
purchased with an original maturity of three months or less to be cash equivalents in the financial statements. As of December 31, 2020
and 2019, the Company had no cash equivalents. The Company has cash on deposits in several financial institutions which, at times, may
be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in
such accounts and periodically evaluates the creditworthiness of its financial institutions. The Company reduces its credit risk by placing
its cash and cash equivalents with major financial institutions. As of December 31, 2020 and 2019, the Company had $22,705 and $346,746,
respectively, on deposit in excess of FDIC insurance limits.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Restricted Cash</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Restricted cash was comprised of cash held as a security
deposit in connection with the Company’s operating lease. See Note 10 – Commitments and Contingencies - Operating Lease for
additional details.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are carried at their contractual
amounts, less an estimate for uncollectible amounts. As of December 31, 2020 and 2019, there were no allowances for uncollectable amounts
determined to be necessary. Management estimates the allowance for bad debts based on existing economic conditions, the financial conditions
of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by
the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts
have been exhausted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><u>Deferred Expenses</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred expenses consist of labor, materials and
other costs that are attributable to customer contracts that the Company has not completed its performance obligation under the contract
and, as a result, has not recognized revenue. As of December 31, 2020 and December 31, 2019, deferred expenses were approximately $185,000
and $112,000, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Offering Costs</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred offering costs, which primarily consist of
direct, incremental professional fees incurred in connection with a debt or equity financing, are capitalized as non-current assets on
the consolidated balance sheets. Once the financing closes, the Company reclassifies such costs as either discounts to notes payable or
as a reduction of proceeds received from equity transactions so that such costs are recorded as a reduction of additional paid-in capital.
If the completion of a contemplated financing was deemed to be no longer probable, the related deferred offering costs would be charged
to general and administrative expense in the consolidated financial statements. At December 31, 2020, the Company wrote off the previously
capitalized offering costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Stock Options and Warrants</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the Black-Scholes model to estimate
the fair value of stock options and warrants, using input factors described below. The risk-free interest rate was determined from the
implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued.
Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that warrants or
options are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected
term of “plain vanilla” employee options. For investor warrants and non-employee options, the expected term used is the contractual
life of the instrument being valued. The Company does not yet have a trading history to support its historical volatility calculations.
Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities
over a period of time equivalent to the expected life of the instrument being valued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company recognizes revenue
under ASC Topic 606, “<i>Revenue from Contracts with Customers</i>” (“ASC 606”). The Company determines revenue
recognition through the following steps:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"> </p>
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<td style="text-align: justify; width: 24px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify; width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 1:</u> Identify the contract with the customer;</font></td></tr>
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<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 24px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify; width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 2:</u> Identify the performance obligations in the contract;</font></td></tr>
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<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0"> </p>
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<td style="text-align: justify; width: 24px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify; width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 3:</u> Determine the transaction price;</font></td></tr>
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<tr style="vertical-align: top">
<td style="text-align: justify; width: 24px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify; width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 4:</u> Allocate the transaction price to the performance obligations in the contract; and</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="text-align: justify; width: 24px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify; width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 5:</u> Recognize revenue when the company satisfies a performance obligation.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A majority of the Company’s revenues are generated
from contracts with customers that require it to design, develop, manufacture, test and integrate complex equipment and/or to provide
engineering and technical services according to customer specifications. Revenues on time and material type contracts are generally recognized
in each period based on the amount billable to the customer which is based on direct labor hours expended multiplied by the contractual
fixed rate per hour, plus the actual costs of materials and other direct non-labor costs. Certain contracts are billable upon the achievement
of specific milestones, such as the delivery of prototypes or finished products, and revenue is recognized typically upon the delivery
of the products. During the years ended December 31, 2020 and 2019, there was no revenue recognized from performance obligations satisfied
(or partially satisfied) in previous periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The timing of the Company’s revenue recognition
may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company
has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records
deferred revenue until the performance obligations are satisfied. Contract assets are comprised of unbilled contract receivables related
to revenues earned but not yet invoiced to customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company generates revenue
from government contracts that reimburse the Company for certain allowable costs for funded projects. For contracts with government agencies,
when the Company has concluded that it is the principal in conducting the research and development expenses and where the funding arrangement
is considered central to the Company’s ongoing operations, the Company classifies the recognized funding received as revenue. The
Company has determined that revenue generated from government grants is outside the scope of ASC 606 and, as a result, the Company recognizes
revenue upon incurring qualifying, reimbursable expenses. During the years ended December 31, 2020 and 2019, the Company recognized approximately
$1,170,000 and $560,000, respectively, of grant revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-Based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures the cost of services received
in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant
date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award,
usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Research and Development</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development expenses are charged to operations
as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As described in Note 1 - Business Organization, Reverse
Recapitalization and Liquidity, beginning on June 21, 2019, the operations of the Company are subject to federal and state income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes deferred tax assets and liabilities
for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred
tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective
financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary
differences are expected to reverse. The Company has recorded a full valuation allowance against its deferred tax assets for all periods,
due to the uncertainty of future utilization.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes a recognition threshold and measurement
process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management
has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial
statements as of December 31, 2020 and December 31, 2019. The Company does not expect any significant changes in its unrecognized tax
benefits within twelve months of the reporting date. The Company’s policy is to classify assessments, if any, for tax related interest
as interest expense and penalties as selling, general and administrative expenses in the consolidated statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Reclassifications</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0">Certain prior year balances have been reclassified in order to conform
to current year presentation. These reclassifications have no effect on previously reported results of operations or income per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Recently Issued Accounting Standards</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02,
“Leases (Topic 842),” (“ASU 2016-02”). ASU 2016-02 requires an entity to recognize assets and liabilities arising
from a lease for both financing and operating leases. ASU 2016-02 will also require new qualitative and quantitative disclosures to help
investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases.
The FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), ASU No. 2018-11
“Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) in July 2018, and ASU No. 2018-20 “Leases (Topic
842) - Narrow Scope Improvements for Lessors” (“ASU 2018-20”) in December 2018. ASU 2018-10 and ASU 2018-20 provide
certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02
to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard
at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
Pursuant to ASU 2019-10 the effective date for ASC 842 was deferred an additional year. The Company expects to recognize operating lease
right-of-use assets and lease liabilities on the balance sheet upon adoption of this ASU. The Company is currently evaluating these ASUs
and their impact on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Unaudited Pro Forma Financial Information</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited pro forma information gives effect to
the Company’s conversion from a tax exempt entity into a tax paying entity beginning in September 2019. During the year ended December
31, 2019, the Company has estimated its pro forma income tax provision using a combined federal and state (New York) effective tax rate
of 27.6%. No tax benefit was recorded for pro forma purposes for the year ended December 31, 2019, as it was deemed that the recovery
of a pro forma deferred tax asset would not meet the “more likely than not” threshold. Therefore, a full pro forma valuation
reserve would be established, such that no pro forma tax benefit would be recorded. Pro forma information is therefore unchanged from
the actual results for the year ended December 31, 2019.</p>
200000
200000
525000
35
524965
3566667
2483
357
2126
-2043108
-1458169
-2043108
-1458169
270000
405000
27
404973
350000
2200
63000
45625
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
1251625
2498375
shorter of useful life or lease term
3413376
745966
155966
3257410
155966
590000
185000
112000
1170000
560000
0
0
33569
147065
7638
20958
17500
908
33569
100061
986407
389845
121219
9909
1107626
399754
2807
2807
15606
15606
140056
422318
241285
623190
43705
187046
218005
10803
4429
46650
51115
80548
90720
1.5
P7Y9M18D
P8Y10M25D
1.50
1.50
1.20
0.93
196208
1.5
0.00
-0.371
0.095
0.066
0.21
0
0
756000
213000
64000
0
166000
13000
526000
200000
545000
213000
679866
4408
675458
621600
P5Y
P5Y
P5Y
P30Y
5000
679866
804494
219712
58860
77615
194110
194110
60087
124628
756000
213000
270000
-3306
1236
4.00
4.00
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 7 – Stockholders’ Equity</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Reverse Recapitalization</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 5 - Business Organization, Reverse Recapitalization
- Reverse Recapitalization and Liquidity for additional details.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Authorized Capital</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is authorized to issue 45,000,000 shares
of common stock, $0.0001 par value per share, and 5,000,000 shares of preferred stock, $0.0001 par value per share. The holders of the
Company’s common stock are entitled to one vote per share. No preferred shares have been issued through December 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Common Stock Transactions</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 5 - Related Party Transactions for additional
details.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 21 and August 5, 2019, the Company sold an
aggregate of 1,776,346 shares of common stock at $1.50 per share to accredited investors for aggregate gross and net cash proceeds of
$2,664,513 and $2,204,502, respectively, which included issuance costs of $460,011 consisting of legal and professional fees, which were
charged to additional paid-in capital upon issuance of the common stock. In addition, the Company issued to the Company’s placement
agent immediately vested five-year warrants to purchase an aggregate of 155,966 shares of the Company’s common stock at an exercise
price of $1.50 per share. The warrants were determined to be classified within stockholders’ equity and had an issuance date fair
value of $148,202. As a result, the Company recognized the warrants by recording a debit and credit to additional paid-in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 24, 2019, the Company sold an aggregate
of 149,981 shares of common stock at $1.50 per share to accredited investors for aggregate cash proceeds of $224,972.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 12 – Government Loans</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Paycheck Protection Program Loan</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2020, the Company received loan proceeds
in the amount of approximately $211,000 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the
Coronavirus Aid, Relief and Economic Security Act, as amended (“CARES Act”), provides for loans to qualifying businesses for
amounts up to 2.5 times of the average monthly payroll expenses of such qualifying business. The loans and accrued interest are forgivable
after certain time periods further defined in the CARES Act (the “Covered Period”) as long as the borrower uses the loan proceeds
for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness
will be reduced if the borrower terminates employees or reduces salaries during the Covered Period. The outstanding balance is included
in long term loans payable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 6, 2021, the entire loan balance was forgiven.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Economic Injury Disaster Loan Advance</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2020, the Company received an advance in
the amount of $10,000 from the U.S. Small Business Administration (“SBA”) under the Economic Injury Disaster Loan (“EIDL”)
program administered by the SBA, which program was expanded pursuant to the CARES Act. Such advance amount will reduce the Company’s
PPP loan forgiveness amount described above. The Company received an additional $138,900 under this program on August 30, 2020. The loan
is payable in monthly payments of $678 including interest at 3.75% payable over 30 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Tomkins County Area Development Loan</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 27, 2020, the Company received loan proceeds
in the amount of $50,000 from the Tomkins County Area Development (“TCAD”) Emergency Relief Loan Fund. The loan matures after
four years and bears interest in the amount of 2.5% per annum, with one year of no interest or principal payments, followed by three years
of monthly payments of principal and interest in the amount of $1,443 per month. The loan is collateralized by certain assets of the Company.
The outstanding balance is included in long term loans payable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Equipment Loans</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">On August 20, 2020, the Company received a loan of $100,000 from Broome
County Industrial Development Agency (5 year facility, 2.5% annual interest rate, monthly payment of $1,775); on September 2, 2020, the
Company received a loan of $100,000 from Southern Tier Region Economic Development Corporation (5 year facility, 5.0% annual interest
rate, monthly payment of $2,072) ; and on August 28, 2020, the Company received a loan of $75,000 from TCAD(5 year facility, 2.5% annual
interest rate, monthly payment of $1,331). These loans were used to acquire equipment used in the laboratory, and are secured by the underlying
assets of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The loans are summarized as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 83%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Principal outstanding</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">679,866</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred loan costs, net of amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4,408</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">675,458</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Less current portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(53,858</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total long term portion</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>621,600</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest expense on the above debt instruments was
approximately $5,000 was recognized for the year ended December 31, 2020. Expected payments under the above loans as of December 31, 2020
are summarized as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; white-space: nowrap"><font style="font-size: 10pt">Payments expected for year ended</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 83%; padding-left: 2.15pt"><font style="font-size: 10pt">2021</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">60,087</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">194,110</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">194,110</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">77,615</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">58,860</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 2.15pt"><font style="font-size: 10pt">thereafter</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">219,712</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">804,494</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 2.15pt"><font style="font-size: 10pt">Less interest portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(124,628</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 2.15pt"><font style="font-size: 10pt">Total debt balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>679,866</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes for the taxable periods
ended December 31, 2020 and 2019 differs from the statutory federal income tax rate as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%; text-align: justify"><font style="font-size: 10pt">Tax benefit at the Federal statutory rate</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">21.0</font></td>
<td style="white-space: nowrap; width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">State tax, net of Federal benefit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6.6</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Permanent differences</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.5</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(37.1</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt">Effective income tax rate</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 3 - Prepaid Expenses and Other Current Assets</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prepaid expenses and other current assets consisted
of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Insurance</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">33,569</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">100,061</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Rent</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">908</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Professional fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,500</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deposit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,958</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">7,638</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>33,569</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>147,065</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 4 – Property and Equipment</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Computer and office equipment</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">2,807</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">2,807</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Lab equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,606</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,606</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Furniture</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">43,705</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">422,318</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">140,056</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Machinery</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">623,190</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">241,285</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,107,626</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">399,754</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accumulated Depreciation</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(121,219</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(9,909</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Property and Equipment, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>986,407</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>389,845</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation and amortization expense related to property
and equipment was approximately $111,000 and $5,000 (which was recorded within cost of sales) for the years ended December 31, 2020 and
2019, respectively. For the year ended December 31, 2020, depreciation expense of approximately $52,000 was recorded within cost of sales,
$26,000 recorded within general and administrative expenses, $23,000 recorded within research and development, and $10,000 recorded within
deferred costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 5 - Accounts Payable and Accrued Expenses</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts payable and accrued expenses consisted of
the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accounts payable</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">80,548</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">90,720</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accrued payroll and related costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">46,650</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,115</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Credit cards payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">49,045</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">56,759</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Insurance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">14,982</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,803</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4,429</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>187,046</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>218,005</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost, net of
accumulated depreciation using the straight-line method over their estimated useful lives, once the asset is placed in service. Expenditures
for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred,
and expenditures which extend the economic life are capitalized. Leasehold improvements are depreciated over the lesser of their estimated
useful lives or the remaining term of their respective lease. When assets are retired or otherwise disposed of, the costs and related
accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized in the statement
of operations for the respective period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s long-lived assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment
loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are
less than its carrying amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The estimated useful lives of property and equipment are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Asset</font></td>
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Useful lives (years) </font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Computer and office equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Lab equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Leasehold improvements</font></td>
<td><font style="font-size: 10pt">shorter of useful life or lease term</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Machinery</font></td>
<td><font style="font-size: 10pt">7-15</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Furniture</font></td>
<td><font style="font-size: 10pt">7</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The estimated useful lives of property and equipment are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Asset</font></td>
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Useful lives (years) </font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Computer and office equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Lab equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Leasehold improvements</font></td>
<td><font style="font-size: 10pt">shorter of useful life or lease term</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Machinery</font></td>
<td><font style="font-size: 10pt">7-15</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Furniture</font></td>
<td><font style="font-size: 10pt">7</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prepaid expenses and other current assets consisted
of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Insurance</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">33,569</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">100,061</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Rent</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">908</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Professional fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,500</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deposit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,958</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">7,638</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>33,569</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>147,065</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Computer and office equipment</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">2,807</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">2,807</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Lab equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,606</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,606</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Furniture</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">43,705</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">422,318</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">140,056</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Machinery</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">623,190</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">241,285</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,107,626</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">399,754</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accumulated Depreciation</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(121,219</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(9,909</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Property and Equipment, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>986,407</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>389,845</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts payable and accrued expenses consisted of
the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accounts payable</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">80,548</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">90,720</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accrued payroll and related costs</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">46,650</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,115</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Credit cards payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">49,045</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">56,759</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Insurance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">14,982</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,803</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4,429</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>187,046</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>218,005</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In applying the Black-Scholes option pricing model,
the Company used the following assumptions for 2020 and 2019 issuances:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="white-space: nowrap"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: right"><font style="font-size: 10pt">0.62 -1.75%</font></td>
<td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: right"><font style="font-size: 10pt">1.60% to 1.72%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected term</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10 years</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3.5 -5.75 years</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 70%"><font style="font-size: 10pt">Expected volatility</font></td>
<td style="width: 3%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">78%</font></td>
<td style="width: 3%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">77 - 79%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected dividends</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.00%</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.00%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Grant date fair value of common stock</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">$1.50/share</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">$1.50/share</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The loans are summarized as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December <br />
31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 83%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Principal outstanding</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">679,866</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred loan costs, net of amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4,408</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">675,458</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Less current portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(53,858</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total long term portion</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>621,600</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected payments under the above loans as of December
31, 2020 are summarized as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; white-space: nowrap"><font style="font-size: 10pt">Payments expected for year ended</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 83%; padding-left: 2.15pt"><font style="font-size: 10pt">2021</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">60,087</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">194,110</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">194,110</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">77,615</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">58,860</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 2.15pt"><font style="font-size: 10pt">thereafter</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">219,712</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">804,494</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 2.15pt"><font style="font-size: 10pt">Less interest portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(124,628</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 2.15pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 2.15pt"><font style="font-size: 10pt">Total debt balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>679,866</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 1 - Business Organization, Reverse Recapitalization and Liquidity</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Organization and Operations</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Odyssey Semiconductor Technologies, Inc. (“Odyssey
Technologies”) was incorporated on April 12, 2019 under the laws of the State of Delaware. Odyssey Technologies, through its wholly-owned
subsidiary, Odyssey Semiconductor, Inc. (“Odyssey Semiconductor”) and Odyssey Semiconductor’s wholly owned subsidiary,
JR2J, LLC (“JR2J”) (collectively, the “Company”), is a semiconductor device company developing high-voltage power
switching components and systems based on proprietary Gallium Nitride (“GaN”) processing technology.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Reverse Recapitalization and Common Control Merger</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 17, 2019, Odyssey Semiconductor entered into
a contribution agreement with 100% of the members of JR2J (“Contribution Agreement”). Pursuant to the Contribution Agreement,
the members of JR2J agreed to transfer 100% of their membership interests in JR2J to the Odyssey Semiconductor in exchange for the issuance
of an aggregate of 5,316,667 shares of common stock of Odyssey Semiconductor (the “Contribution”). In connection with the
Contribution Agreement, JR2J became a wholly-owned subsidiary of Odyssey Semiconductor. Odyssey Semiconductor and JR2J were determined
to be entities held under common control through identical common ownership. Accordingly, the effect of the merger was retrospectively
applied to all financial statement periods presented herein and the historical financial statements of Odyssey Semiconductor and JR2J
are combined.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 21, 2019, Odyssey Technologies entered into
a share exchange agreement (the “Share Exchange Agreement”) with Odyssey Semiconductor and 100% of the stockholders of Odyssey
Semiconductor (the “Semiconductor Stockholders”). On June 21, 2019 (the “Closing Date”), the Company closed the
transaction contemplated by the Share Exchange Agreement. Pursuant to the Share Exchange Agreement, the Semiconductor Stockholders agreed
to transfer an aggregate of 5,666,667 shares of common stock of Odyssey Semiconductor to Odyssey Technologies in exchange for Odyssey
Technologies’ issuance of an aggregate of 5,666,667 shares of its common stock to the Semiconductor Stockholders (the “Share
Exchange”). On the Closing Date, Odyssey Semiconductor became a wholly-owned subsidiary of Odyssey Technologies, the Semiconductor
Stockholders beneficially owned approximately 61.37% of Odyssey Technologies’ common stock on a fully-diluted basis, Odyssey Technologies
began operating Odyssey Semiconductor’s business of developing high-voltage power switching components and systems, and all directors
and officers of Odyssey Technologies resigned and were replaced by the directors and officers of Odyssey Semiconductor.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The closing of the Share Exchange was accounted for
as a reverse recapitalization under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 805-40. The condensed consolidated statements of operations herein reflect the historical results
of Odyssey Semiconductor prior to the completion of the reverse recapitalization since it was determined to be the accounting acquirer,
and do not include the historical results of operations for Odyssey Technologies prior to the completion of the reverse recapitalization.
Odyssey Technologies’ assets and liabilities are consolidated with the assets and liabilities of Odyssey Semiconductor as of the
Closing Date. Odyssey Semiconductor’s retained earnings are being carried forward as the Company’s retained earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>COVID-19</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The extent of the impact and effects of the recent
outbreak of the coronavirus (COVID-19) on the operation and financial performance of our business will depend on future developments,
including the duration and spread of the outbreak, related travel advisories and restrictions, the consequential potential of staff shortages,
and project development delays, all of which are highly uncertain and cannot be predicted. If demand for the Company’s services
or the Company’s ability to service customers are impacted for an extended period, especially as it relates to major customers,
our financial condition and results of operations may be materially adversely affected.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Liquidity and Financial Condition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, the Company had a cash balance,
working capital and accumulated deficit of approximately $273,000, $63,000 and $3,516,000, respectively. During the year ended December
31, 2020, the Company generated net loss of approximately $2,043,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2021, the Company received approximately
$68,000 from the exercise of stock options to purchase 45,625 shares of common stock. On February 24, 2021, the Company received $193,625
pursuant to a promissory note issued under the Paycheck Protection Program Part 2 ("PPP2"). Interest accrues at 1% per annum
and the note is payable in 60 monthly installments of $3,300 commencing May 2022. On March 30, 2021, the Company received the proceeds
of the first closing pursuant to an offering of its common stock. The Company sold 1,251,625 shares of common stock at $4.00 per share
for gross proceeds of $5,006,500 (after expenses, net proceeds were approximately $4.6 million). Warrants equal to 8% of the common shares
sold, other than to certain parties that were excluded from fees ("Excluded Counterparties"), will be issued to the placement
agent with a 5 year exercise period and an exercise price of $4.00 per share. The Company may sell up to an additional 2,498,375 shares
pursuant to this offering. The maximum number of shares in the offering is 3,750,000, but includes up to 250,000 shares that the Company
can sell to Excluded Counterparties without incurring fees (cash or warrants) to the placement agent.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company believes its current cash on hand and
the above mentioned funding in the first quarter of 2021 is sufficient to meet its operating obligations and capital requirements for
at least twelve months from the issuance of these financial statements. Thereafter, the Company may need to raise further capital through
the sale of additional equity or debt securities or other debt instruments to support its future operations. The Company’s operating
needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.
The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s
ability to successfully commercialize its products and services, competing technological and market developments, and the need to enter
into collaborations with other companies or acquire other companies or technologies to enhance or complement its product and service offerings.
There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its development initiatives
or attain profitable operations. If the Company is unable to obtain additional financing on a timely basis, it may have to curtail its
development, marketing and promotional activities, which would have a material adverse effect on the Company’s business, financial
condition and results of operations, and ultimately, the Company could be forced to discontinue its operations and liquidate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 2 - Summary of Significant Accounting Policies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements
and the amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these financial
statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation, the recognition and
collectability of receivables, the recoverability and useful lives of long-lived assets, and the valuation allowance related to the Company’s
deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the
Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s
estimates and could cause actual results to differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
purchased with an original maturity of three months or less to be cash equivalents in the financial statements. As of December 31, 2020
and 2019, the Company had no cash equivalents. The Company has cash on deposits in several financial institutions which, at times, may
be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in
such accounts and periodically evaluates the creditworthiness of its financial institutions. The Company reduces its credit risk by placing
its cash and cash equivalents with major financial institutions. As of December 31, 2020 and 2019, the Company had $22,705 and $346,746,
respectively, on deposit in excess of FDIC insurance limits.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Restricted Cash</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Restricted cash was comprised of cash held as a security
deposit in connection with the Company’s operating lease. See Note 10 – Commitments and Contingencies - Operating Lease for
additional details.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are carried at their contractual
amounts, less an estimate for uncollectible amounts. As of December 31, 2020 and 2019, there were no allowances for uncollectable amounts
determined to be necessary. Management estimates the allowance for bad debts based on existing economic conditions, the financial conditions
of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by
the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts
have been exhausted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><u>Deferred Expenses</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred expenses consist of labor, materials and
other costs that are attributable to customer contracts that the Company has not completed its performance obligation under the contract
and, as a result, has not recognized revenue. As of December 31, 2020 and December 31, 2019, deferred expenses were approximately $185,000
and $112,000, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost, net of
accumulated depreciation using the straight-line method over their estimated useful lives, once the asset is placed in service. Expenditures
for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred,
and expenditures which extend the economic life are capitalized. Leasehold improvements are depreciated over the lesser of their estimated
useful lives or the remaining term of their respective lease. When assets are retired or otherwise disposed of, the costs and related
accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized in the statement
of operations for the respective period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s long-lived assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment
loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are
less than its carrying amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The estimated useful lives of property and equipment are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Asset</font></td>
<td style="border-bottom: black 1pt solid; width: 50%"><font style="font-size: 10pt">Useful lives (years) </font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Computer and office equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Lab equipment</font></td>
<td><font style="font-size: 10pt">5</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Leasehold improvements</font></td>
<td><font style="font-size: 10pt">shorter of useful life or lease term</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Machinery</font></td>
<td><font style="font-size: 10pt">7-15</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Furniture</font></td>
<td><font style="font-size: 10pt">7</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Offering Costs</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred offering costs, which primarily consist of
direct, incremental professional fees incurred in connection with a debt or equity financing, are capitalized as non-current assets on
the consolidated balance sheets. Once the financing closes, the Company reclassifies such costs as either discounts to notes payable or
as a reduction of proceeds received from equity transactions so that such costs are recorded as a reduction of additional paid-in capital.
If the completion of a contemplated financing was deemed to be no longer probable, the related deferred offering costs would be charged
to general and administrative expense in the consolidated financial statements. At December 31, 2020, the Company wrote off the previously
capitalized offering costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures the fair value of financial assets
and liabilities based on the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes
a framework for measuring fair value, and expands disclosures about fair value measurements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset
or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy,
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 describes three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 1 — quoted prices in active markets for identical assets or
liabilities</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 2 — quoted prices for similar assets and liabilities in active
markets or inputs that are observable</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 3 — inputs that are unobservable (for example, cash flow modeling
inputs based on assumptions)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company’s
financial instruments, such as cash, accounts receivable, restricted cash and accounts payable and accrued expenses approximate fair
values due to the short-term nature of these instruments. The carrying amounts of the Company’s debt approximates fair value
since it is tied to governmental programs and the restrictions related therein.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u></u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Stock Options and Warrants</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the Black-Scholes model to estimate
the fair value of stock options and warrants, using input factors described below. The risk-free interest rate was determined from the
implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued.
Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that warrants or
options are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected
term of “plain vanilla” employee options. For investor warrants and non-employee options, the expected term used is the contractual
life of the instrument being valued. The Company does not yet have a trading history to support its historical volatility calculations.
Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities
over a period of time equivalent to the expected life of the instrument being valued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company recognizes revenue
under ASC Topic 606, “<i>Revenue from Contracts with Customers</i>” (“ASC 606”). The Company determines revenue
recognition through the following steps:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 29px"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt"><u>Step 1:</u> Identify the contract with the customer;</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 29px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 2:</u> Identify the performance obligations in the contract;</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 29px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 3:</u> Determine the transaction price;</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 29px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 4:</u> Allocate the transaction price to the performance obligations in the contract; and</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 29px"><font style="font-size: 10pt">●</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt"><u>Step 5:</u> Recognize revenue when the company satisfies a performance obligation.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A majority of the Company’s revenues are generated
from contracts with customers that require it to design, develop, manufacture, test and integrate complex equipment and/or to provide
engineering and technical services according to customer specifications. Revenues on time and material type contracts are generally recognized
in each period based on the amount billable to the customer which is based on direct labor hours expended multiplied by the contractual
fixed rate per hour, plus the actual costs of materials and other direct non-labor costs. Certain contracts are billable upon the achievement
of specific milestones, such as the delivery of prototypes or finished products, and revenue is recognized typically upon the delivery
of the products. During the years ended December 31, 2020 and 2019, there was no revenue recognized from performance obligations satisfied
(or partially satisfied) in previous periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The timing of the Company’s revenue recognition
may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company
has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records
deferred revenue until the performance obligations are satisfied. Contract assets are comprised of unbilled contract receivables related
to revenues earned but not yet invoiced to customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company generates revenue
from government contracts that reimburse the Company for certain allowable costs for funded projects. For contracts with government agencies,
when the Company has concluded that it is the principal in conducting the research and development expenses and where the funding arrangement
is considered central to the Company’s ongoing operations, the Company classifies the recognized funding received as revenue. The
Company has determined that revenue generated from government grants is outside the scope of ASC 606 and, as a result, the Company recognizes
revenue upon incurring qualifying, reimbursable expenses. During the years ended December 31, 2020 and 2019, the Company recognized approximately
$1,170,000 and $560,000, respectively, of grant revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-Based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures the cost of services received
in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant
date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award,
usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Research and Development</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development expenses are charged to operations
as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As described in Note 1 - Business Organization, Reverse
Recapitalization and Liquidity, beginning on June 21, 2019, the operations of the Company are subject to federal and state income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes deferred tax assets and liabilities
for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred
tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective
financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary
differences are expected to reverse. The Company has recorded a full valuation allowance against its deferred tax assets for all periods,
due to the uncertainty of future utilization.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes a recognition threshold and measurement
process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management
has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial
statements as of December 31, 2020 and December 31, 2019. The Company does not expect any significant changes in its unrecognized tax
benefits within twelve months of the reporting date. The Company’s policy is to classify assessments, if any, for tax related interest
as interest expense and penalties as selling, general and administrative expenses in the consolidated statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net loss per share of Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net loss per share of common stock is computed
by dividing net loss by the weighted average number of vested shares of common stock outstanding during the period. Diluted net loss
per share of common stock is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares
outstanding during each period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following shares were excluded from the calculation
of weighted average dilutive shares of common stock because their inclusion would have been anti-dilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>As of December 31,</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Warrants</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,257,410</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,413,376</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">745,966</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Reclassifications</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Certain prior year balances have been reclassified in order to conform
to current year presentation. These reclassifications have no effect on previously reported results of operations or income per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Unaudited Pro Forma Financial Information</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited pro forma information gives effect to
the Company’s conversion from a tax exempt entity into a tax paying entity beginning in September 2019. During the year ended December
31, 2019, the Company has estimated its pro forma income tax provision using a combined federal and state (New York) effective tax rate
of 27.6%. No tax benefit was recorded for pro forma purposes for the year ended December 31, 2019, as it was deemed that the recovery
of a pro forma deferred tax asset would not meet the “more likely than not” threshold. Therefore, a full pro forma valuation
reserve would be established, such that no pro forma tax benefit would be recorded. Pro forma information is therefore unchanged from
the actual results for the year ended December 31, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Recently Issued Accounting Standards</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02,
“Leases (Topic 842),” (“ASU 2016-02”). ASU 2016-02 requires an entity to recognize assets and liabilities arising
from a lease for both financing and operating leases. ASU 2016-02 will also require new qualitative and quantitative disclosures to help
investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases.
The FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), ASU No. 2018-11
“Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) in July 2018, and ASU No. 2018-20 “Leases (Topic
842) - Narrow Scope Improvements for Lessors” (“ASU 2018-20”) in December 2018. ASU 2018-10 and ASU 2018-20 provide
certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02
to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard
at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
Pursuant to ASU 2019-10 the effective date for ASC 842 was deferred an additional year. The Company expects to recognize operating lease
right-of-use assets and lease liabilities on the balance sheet upon adoption of this ASU. The Company is currently evaluating these ASUs
and their impact on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following shares were excluded from the calculation
of weighted average dilutive shares of common stock because their inclusion would have been anti-dilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>As of December 31,</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Warrants</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,257,410</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,413,376</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">745,966</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net loss per share of Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net loss per share of common stock is computed
by dividing net loss by the weighted average number of vested shares of common stock outstanding during the period. Diluted net loss
per share of common stock is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares
outstanding during each period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following shares were excluded from the calculation
of weighted average dilutive shares of common stock because their inclusion would have been anti-dilutive:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>As of December 31,</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Warrants</font></td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">155,966</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,257,410</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,413,376</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">745,966</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 8 – Equity Compensation Plan</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 18, 2019, the Board of Directors and a majority
of the Company’s shareholders, respectively, approved the 2019 Equity Compensation Plan (the “2019 Plan”). Under
the 2019 Plan, 1,326,000 shares of common stock of the Company were authorized for issuance. On September 16, 2020 the Board of Directors
and a majority of the Company’s shareholders approved an increase in the Plan to authorize 4,600,000 shares. The 2019 Plan
provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation
rights, restricted stock, restricted stock, performance shares and performance units to employees, directors and consultants of the Company
and its affiliates. The 2019 Plan requires the exercise price of stock options to be not less than the fair value of the Company’s
common stock on the date of grant, or 110% of fair value in the case of incentive options granted to a ten-percent stockholder.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 25, 2019 and November 5, 2019, the Company
granted ten-year options to purchase an aggregate of 350,000 shares of common stock at an exercise price of $1.50 per share to non-employee
directors and consultants of the Company. Such options vest one-half on each of the two annual anniversaries of the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 5, 2019, the Company granted five-year
options to purchase an aggregate of 240,000 shares of common stock at an exercise price of $1.50 per share to employees. Such options
vest ratably over three years on each annual anniversary of the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On March 11, 2020, the Company
granted the following ten-year options to purchase shares of common stock at an exercise price of $1.50 per share to the Company’s
newly appointed Executive Chairman and Acting Chief Executive Officer under the 2019 Plan: (i) an option to purchase 965,850 shares of
common stock that vests ratably on a monthly basis over two years and (ii) an option to purchase 321,950 shares of common stock that vests
based on performance criteria to be mutually agreed to by the Board and the executive. The grant was reduced to 500,000 options, including
375,000 options and 125,000 options respectively under the two categories, due to limitations under the 2019 Plan. The terms of the 125,000
performance based options were established in the quarter ended September 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On May 26, 2020, the Board
of Directors and a majority of the Company’s shareholders approved an amendment to the 2019 Plan to (i) increase the number of shares
of common stock authorized for issuance under the 2019 Plan by 1,174,000 shares, such that a total of 2,500,000 shares of common stock
are now authorized for issuance under the 2019 Plan; (ii) increase the maximum aggregate number of shares, options and/or other awards
that may be granted to any one person during any calendar year from 500,000 to 1,300,000; and (iii) clarify the availability of cashless
exercise as a form of consideration.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On July 16, 2020, the Company
granted the following ten-year options to purchase shares of common stock at an exercise price of $1.50 per share to the Company’s
Executive Chairman and Acting Chief Executive Officer under the 2019 Plan: (i) an option to purchase 600,000 shares of common stock that
vests ratably on a monthly basis over one year and (ii) an option to purchase 200,000 shares of common stock that vests based on specified
performance criteria.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On September 16, 2020, the
Board of Directors and a majority of the Company’s shareholders approved an amendment to the 2019 Plan to increase the number of
shares of common stock authorized for issuance under the 2019 Plan from 2,500,000 shares to 4,600,000 shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On September 22, 2020, the
Company granted a ten-year options to purchase shares 1,637,410 shares of common stock at an exercise price of $1.50 per share to the
Company’s Chairman and Chief Executive Officer under the 2019 Plan that vests ratably on a monthly basis over two years commencing
March 11, 2022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Chairman and Chief Executive
Officer, received $10.00 cash compensation in 2020. Starting January 1, 2021, he receives a cash compensation of $1.00 per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The following table summarizes
the stock option activity for the years ended December 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Shares</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Weighted-<br />
Average <br />
Exercise<br />
Price per share</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Weighted-Average<br />
Remaining<br />
Contractual Life <br />
(years)</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, January 1, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 59%; padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options granted</font></td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; width: 8%; text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 11%; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">7.8</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, January 1, 2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7.8</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options granted (1)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,937,410</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.5</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(270,000</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options converted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options forfeited or expired</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, December 31,2020 (1)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,257,410</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">9.1</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Vested shares at December 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">196,208</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">8.9</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 29px"> </td>
<td style="width: 29px"><font style="font-size: 10pt">(1)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Includes the 325,000 options exercisable at $1.50 which vest based upon performance criteria. The criteria was not met as of December 31, 2020 and, as such, the Company did not recognized any expense for such options through December 31, 2020.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has estimated the fair value of fixed
stock option awards as of the date of grant by applying the Black-Scholes option-pricing model. In applying the Black-Scholes option pricing
model, the Company used the following assumptions for 2020 and 2019 issuances:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="white-space: nowrap"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: right"><font style="font-size: 10pt">0.62 -1.75%</font></td>
<td style="white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: right"><font style="font-size: 10pt">1.60% to 1.72%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected term</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10 years</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3.5 -5.75 years</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 70%"><font style="font-size: 10pt">Expected volatility</font></td>
<td style="width: 3%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">78%</font></td>
<td style="width: 3%"> </td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">77 - 79%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected dividends</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.00%</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.00%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Grant date fair value of common stock</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">$1.50/share</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">$1.50/share</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the years ended December 30, 2020 and 2019,
the Company granted options with a weighted average grant date fair value of $1.20 and $0.93 per share, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2020, the Company
recognized stock-based compensation expense related to stock options of approximately $623,000 ($420,000 of which was included within
general and administrative expenses, $67,000 of which was included in research and development expenses, $13,000 of which was included
in deferred costs and $123,000 of which was included within cost of revenues). The criteria of the performance based awards were not met
as of December 31, 2020, and therefore no expense has been recognized for such awards. As of December 31, 2020, there was unamortized
stock-based compensation of approximately $3,300,000, which the Company expects to recognize over 1.6 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2019, the Company
recognized stock-based compensation expense of approximately $62,000 ($47,000 of which was included within general and administrative
expenses, $9,000 of which was included within cost of revenues on the consolidated statements of operations and $7,000 of which was included
within deferred expenses as of December 31, 2019 on the consolidated balance sheet).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The following table summarizes
the stock option activity for the years ended December 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Shares</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Weighted-<br />
Average <br />
Exercise<br />
Price per share</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>Weighted-Average<br />
Remaining<br />
Contractual Life <br />
(years)</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="white-space: nowrap; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, January 1, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 59%; padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options granted</font></td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; width: 8%; text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 11%; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">7.8</font></td>
<td style="white-space: nowrap; width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, January 1, 2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">590,000</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7.8</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options granted (1)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,937,410</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.5</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(270,000</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options converted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Options forfeited or expired</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Balance, December 31,2020 (1)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">3,257,410</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">9.1</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Vested shares at December 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">196,208</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.50</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">8.9</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 29px"> </td>
<td style="width: 29px"><font style="font-size: 10pt">(1)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Includes the 325,000 options exercisable at $1.50 which vest based upon performance criteria. The criteria was not met as of December 31, 2020 and, as such, the Company did not recognized any expense for such options through December 31, 2020.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 9 – Income Taxes</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As described in Note 2, <i>Summary of Significant
Accounting Policies - Income Taxes</i>, the operations of the Company became subject to United States Federal and New York State income
taxes on June 21, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not have any current income tax provision
(other than state minimum income taxes, which is included in general and administrative expenses in the accompanying consolidated statements
of operations) due to losses. The deferred tax benefit has been offset by an increase in the valuation allowance of $545,000 and $213,000
for the years ended December 31, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes for the taxable periods
ended December 31, 2020 and 2019 differs from the statutory federal income tax rate as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%; text-align: justify"><font style="font-size: 10pt">Tax benefit at the Federal statutory rate</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">21.0</font></td>
<td style="white-space: nowrap; width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">State tax, net of Federal benefit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6.6</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">Permanent differences</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.5</font></td>
<td style="white-space: nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">Change in valuation allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(37.1</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt">Effective income tax rate</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Significant components of
the Company’s deferred tax assets at December 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred taxes assets:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 70%; padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Net operating loss carryforward</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt"><b>526,000</b></font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">200,000</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Stock compensation expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>166,000</b></font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,000</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">R&D Credit</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt"><b>64,000</b></font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>756,000</b></font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">213,000</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Valuation allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt"><b>(756,000</b></font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(213,000</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred tax asset, net of valuation allowance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>-</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The income tax benefit for the years ended December
31, 2020 and 2019 differed from the amounts computed by applying the US federal income tax rate of 21 % primarily because of the increase
in the valuation allowance, which resulted in an effective tax rate of zero for both years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2020, the Company had approximately
$2,100,000 of net operating loss (“NOL”) carryforwards that may be available to offset future Federal taxable income indefinitely
and New York State taxable income through 2039. The utilization of NOL carryforwards to offset future taxable income may be subject to
limitations under Section 382 of the Internal Revenue Code and similar state statutes as a result of ownership changes that could occur
in the future. If necessary, the deferred tax assets will be reduced by any carryforward that expires prior to utilization as a result
of such limitations, with a corresponding reduction of the valuation allowance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has assessed the likelihood that deferred
tax assets will be realized in accordance with the provisions of ASC 740 <i>Income Taxes</i> (“ASC 740”). ASC 740 requires
that such a review considers all available positive and negative evidence, including the scheduled reversal of deferred tax liabilities,
projected future taxable income, and tax planning strategies. ASC 740 requires that a valuation allowance be established when it is “more
likely than not” that all, or a portion of, deferred tax assets will not be realized. After the performance of such a review as
of December 31, 2020 and 2019, management believes that uncertainty exists with respect to future realization of its deferred tax assets
and has, therefore, established a full valuation allowance as of those dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has evaluated and concluded that there
were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2020 or
2019. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date.
No tax audits were commenced or were in process for the taxable periods ended December 31, 2020 and 2019. No tax related interest or penalties
were incurred during the years ended December 31, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Significant components of
the Company’s deferred tax assets at December 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred taxes assets:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 70%; padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Net operating loss carryforward</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt"><b>526,000</b></font></td>
<td style="white-space: nowrap; width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">200,000</font></td>
<td style="white-space: nowrap; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Stock compensation expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>166,000</b></font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,000</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 18pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">R&D Credit</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt"><b>64,000</b></font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>756,000</b></font></td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">213,000</font></td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Valuation allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt"><b>(756,000</b></font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(213,000</font></td>
<td style="white-space: nowrap; padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18pt; text-align: justify; text-indent: -8.65pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 9pt; text-align: justify; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred tax asset, net of valuation allowance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>-</b></font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="white-space: nowrap; padding-bottom: 2.5pt"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 13 - Subsequent Events</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated events that have occurred
after the balance sheet and through the date the financial statements were issued. Based upon the evaluation, the Company did not identify
any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements, except
as disclosed below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2021, the Company received approximately
$68,000 from the exercise of stock options to purchase 45,625 shares of common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 24, 2021, the Company received $193,625
pursuant to a promissory note issued under the Paycheck Protection Program Part 2 (“PPP2”). Interest accrues at 1% per annum
and the note is payable in 60 monthly installments of $3,300 commencing May 2022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 30, 2021, the Company received the proceeds
of the first closing pursuant to an offering of its common stock. The Company sold 1,251,625 shares of common stock at $4.00 per share
for gross proceeds of $5,006,500 (after expenses, net proceeds were approximately $4.6 million). Warrants equal to 8% of the common shares
sold, other than to certain parties that were excluded from fees ("Excluded Counterparties"), will be issued to the placement
agent with a 5 year exercise period and an exercise price of $4.00 per share. The Company may sell up to an additional 2,498,375 shares
pursuant to this offering. The maximum number of shares in the offering is 3,750,000, but includes up to 250,000 shares that the Company
can sell to Excluded Counterparties without incurring fees (cash or warrants) to the placement agent.</p>
-422428
773271
0
83983
On November 15, 2019, we filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1 (the “Registration Statement”), which was subsequently amended on January 15, 2020, January 31, 2020 and February 13, 2020, and declared effective on February 14, 2020. We filed with the SEC a Post-Effective Amendment No. 1 to the Registration Statement on July 20, 2020. This Post-Effective Amendment No. 2 is being filed to update the Registration Statement to (i) reduce the total number of shares of Common Stock registered from 3,415,626 to 1,794,977 to reflect sales of shares by selling stockholder since July 20, 2020; and (ii) include information from our Annual Report on Form 10-K for year ended December 31, 2020 filed with the SEC on April 8, 2021, update information about the Company throughout the filing, and incorporates by reference certain reports filed since July 20, 2020 to the date of this filing. All filing fees payable in connection with the registration of the shares of common stock covered by this Post Effective Amendment No. 2 were paid by us as noted in the table of Calculation of Registration Fee.
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures the fair value of financial assets
and liabilities based on the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes
a framework for measuring fair value, and expands disclosures about fair value measurements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset
or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy,
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 describes three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 1 — quoted prices in active markets for identical assets or
liabilities</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 2 — quoted prices for similar assets and liabilities in active
markets or inputs that are observable</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 3 — inputs that are unobservable (for example, cash flow modeling
inputs based on assumptions)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company’s
financial instruments, such as cash, accounts receivable, restricted cash and accounts payable and accrued expenses approximate fair
values due to the short-term nature of these instruments. The carrying amounts of the Company’s debt approximates fair value
since it is tied to governmental programs and the restrictions related therein.</p>
Includes the 325,000 options exercisable at $1.50 which vest based upon performance criteria. The criteria has not yet been met and therefore the shares are not exercisable. The Company has not recognized any expense for such options through December 31, 2020.