What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2022-05-31 compared with 2021-05-28 · 458 added, 409 removed, 168 unchanged (84% of the section changed)

1 unchanged sentence

for Common Stock

common stock is quoted on the OTCQX operated by the OTC Markets Group Inc.

under the symbol FNGR The market for

our common stock is limited and can be volatile.

The following table sets forth the high and low bid prices relating to our common

stock on a quarterly basis for the periods indicated as quoted by the OTCQB.

These quotations reflect inter-dealer prices without

retail mark-up, mark-down, or commissions, and may not reflect actual transactions.

Quarter Ended

February 28, 2021

November 30, 2020

August 31, 2020

February 29, 2020

November 30, 2019

August 31, 2019

February 28, 2019

May 20, 2021, the last reported sale price of our common stock on the OTCQX was $7.52 per share.

common stock began trading on the Nasdaq Capital Market on December 28, 2021 under the symbol FNGR, and before that it

traded on the OTCQX operated by OTC Markets Group Inc.

under the symbol FNGR.

Trading volume in our shares may be sporadic

and the price could experience volatility.

The following table sets forth the high and low bid prices relating to our common stock for

the periods indicated as quoted by the Nasdaq Capital Market.

These quotations reflect inter-dealer prices without retail mark-up, mark-down,

or commissions, and may not reflect actual transactions.

May 25, 2022, the last reported sale price of our common stock on the Nasdaq Capital Market was $1.77 per share.

Agent for Common Shares

Registrar and Transfer Agent for our shares of common stock is VStock Transfer, LLC located at 18 Lafayette Place, Woodmere, New

York, U.S.A., 11598.

Registrar and Transfer Agent for our shares of common stock is VStock Transfer, LLC located at 18 Lafayette Place, Woodmere, New York,

U.S.A., 11598.

of Common Shares

of May 20, 2021, we had 199 shareholders of record, which does not include shareholders whose shares are held in street or nominee

of May 25, 2022, we had 177 shareholders of record, which does not include shareholders whose shares are held in street or nominee names.

have never declared or paid any cash dividends on our capital stock.

We currently intend to use the net proceeds from any offerings

of our securities and our future earnings, if any, to finance the further development and expansion of our business and do not

intend or expect to pay cash dividends in the foreseeable future.

Payment of future cash dividends, if any, will be at the discretion

of our board of directors after taking into account various factors, including our financial condition, operating results, current

and anticipated cash needs, outstanding indebtedness, and plans for expansion and restrictions imposed by lenders, if any.

We currently intend to use the net proceeds from any offerings of

our securities and our future earnings, if any, to finance the further development and expansion of our business and do not intend or

expect to pay cash dividends in the foreseeable future.

Payment of future cash dividends, if any, will be at the discretion of our board

of directors after taking into account various factors, including our financial condition, operating results, current and anticipated

cash needs, outstanding indebtedness, and plans for expansion and restrictions imposed by lenders, if any.

Sales of Unregistered Securities

Ended February 28, 2022

of the recent sales of unregistered securities during the fiscal year ended February 28, 2021 have been previously reported.

to the Year Ended February 28, 2021

April 14, 2021, we issued 5,000 shares of our common stock to one individual pursuant to a consulting agreement at a deemed price

of $2.00 per share.

December 7, 2021 we issued an aggregate of 30,000 shares of our common stock at a price of $3.00 per share to two individuals pursuant

to the exercise of outstanding warrants.

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b)

or Section 4(a)(2) of the Securities Act for the issuance of the shares to the two individuals who are U.S.

December 28, 2021, we granted an aggregate of 4,545,500 stock options pursuant to our 2021 Stock Incentive Plan having an exercise price

of $8.00 per share and an expiry date of five years from the date of grant to 40 individuals who were directors, officers, employees

and consultants of the Company.

We relied upon the exemption from registration under the United States Securities Act of 1933, as amended

Securities Act), provided by Rule 903 of Regulation S promulgated under the U.S.

Securities Act for the grant

of stock options to the individuals who are non-U.S.

persons, and upon the exemption from registration under Section 4(a)(2) of the U.S.

Securities Act for two individuals who are U.S.

January 7, 2022, we issued an aggregate of 55,000 shares of our common stock at a deemed price of $5.00 per share to two entities pursuant

to consulting agreements.

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section

4(a)(2) of the Securities Act for the issuance of the shares to the individual who is a U.S.

4(a)(2) of the Securities Act for the issuance of the shares to the two entities that are U.S.

February 4, 2022, we issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

February 7, 2022, we issued an aggregate of 70,000 shares of our common stock at a price of $5.00 per share to four individuals pursuant

to a private placement.

We relied upon the exemption from registration under the Securities Act provided by Rule 903 of Regulation S

promulgated under the Securities Act to the four individuals that are all non-U.S.

persons as the shares were issued to the investors

through offshore transactions which were negotiated and consummated outside of the United States.

of the other sales of unregistered securities during the fiscal year ended February 28, 2022 have been previously reported.

to the Year Ended February 28, 2022

March 7, 2022, we issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

March 23, 2022, we issued 10,000 shares of our common stock at a deemed price of $3.66 per share to one individual pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the individual who is a U.S.

March 23, 2022, we issued an aggregate of 25,000 shares of our common stock at a deemed price of $2.85 per share to two individuals and

one entity pursuant to consulting agreements.

We relied upon the exemption from registration under the Securities Act provided by Rule

506(b) or Section 4(a)(2) of the Securities Act for the issuance of the shares to the two individuals and one entity who are all U.S.

April 14, 2022, we issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

April 28, 2022, we issued 50,000 shares of our common stock at a deemed price of $2.61 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

April 28, 2022, we issued 5,000 shares of our common stock at a deemed price of $2.56 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

April 28, 2022, we issued 20,000 shares of our common stock at a deemed price of $2.51 per share to one individual pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 903 of Regulation S promulgated under

the Securities Act to the one individual that is a non-U.S.

person as the shares were issued to the individual through an offshore transaction

which was negotiated and consummated outside of the United States.

May 10, 2022, we issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

May 10, 2022, we issued 10,000 shares of our common stock at a deemed price of $3.66 per share to one individual pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the individual who is a U.S.

May 16, 2022, we issued 20,000 shares of our common stock at a deemed price of $2.03 per share to one entity pursuant to a consulting

We relied upon the exemption from registration under the Securities Act provided by Rule 506(b) or Section 4(a)(2) of the

Securities Act for the issuance of the shares to the entity that is a U.S.

Repurchases of Equity Securities

1 unchanged sentence

SELECTED FINANCIAL DATA

following tables provide selected financial data for each of the past two years, and should be read in conjunction with, and are

qualified in their entirety be reference to, Item 7.

Managements Discussion and Analysis of Financial Condition and Results

of Operations and our consolidated financial statements and related notes for the fiscal year ended February 28, 2021, as presented

under Item 8.

Financial Statements and Supplementary Data.

These historical results are not necessarily indicative of the results

to be expected for any future period.

following tables provide selected financial data for each of the past two years, and should be read in conjunction with, and are qualified

in their entirety be reference to, Item 7.

Managements Discussion and Analysis of Financial Condition and Results of Operations

and our consolidated financial statements and related notes for the fiscal year ended February 28, 2022, as presented under Item 8.

Statements and Supplementary Data.

These historical results are not necessarily indicative of the results to be expected for any future

INCOME STATEMENT DATA

February 28, 2022

February 28, 2021

Cost of revenue

4 unchanged sentences

$ (5,871,877 )

Net loss attributable to the Company’s shareholders

$ (4,943,444 )

10 unchanged sentences

As at February 28, 2021

Working Capital (Deficiency)

Working Capital

Accumulated Deficit

1 unchanged sentence

$ (12,208,728 )

Shareholders’

Shareholders’ Equity

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following managements discussion and analysis of the Companys financial condition and results of operations contain

forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our

capital needs, business plans and expectations.

In evaluating these statements, you should consider various factors, including

the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and,

including, without limitation, this Annual Report on Form 10-K filing for the fiscal year ended February 28, 2021, including the

consolidated financial statements and related notes contained herein.

These factors, or any one of them, may cause our actual

results or actions in the future to differ materially from any forward-looking statement made in this document.

Refer to Cautionary

Note Regarding Forward-looking Statements and Item 1A.

following managements discussion and analysis of the Companys financial condition and results of operations contain forward-looking

statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business

plans and expectations.

In evaluating these statements, you should consider various factors, including the risks, uncertainties and assumptions

set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Annual Report

on Form 10-K filing for the fiscal year ended February 28, 2022, including the consolidated financial statements and related notes contained

These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking

statement made in this document.

Refer to Cautionary Note Regarding Forward-looking Statements and Item 1A.

Risk Factors.

following discussion summarizes the results of operations for each of our fiscal years ended February 28, 2022 and February 28, 2021

2020 and our financial condition as at February 28, 2021 and February 29, 2020, with a particular emphasis on fiscal 2021, our

most recently completed fiscal year.

and our financial condition as at February 28, 2022 and February 28, 2021, with a particular emphasis on fiscal 2022, our most recently

completed fiscal year.

Company operates the following lines of business:

(i) Telecommunications Products and Services;

(ii) SMS and MMS service;

a rich communication services (RCS) platform;

(iv) big data insights;

and (v) a video game division (inactive).

(ii) Value Added Product and Services;

(iii) SMS and MMS Services;

(iv) a Rich Communication Services (RCS) platform;

(v) Big Data Insights;

and (vi) a Video Game Division

Telecommunications

Products and Services

Companys current product mix consisting of payment and recharge services, data plans, subscription plans, mobile phones,

and loyalty points redemption.

Chinese mobile phone consumers often utilize third-party e-marketing websites to pay their phone

If the consumer connected directly to the telecommunications provider to pay his or her bill, the consumer would miss out

on any benefits or marketing discounts that e-marketers provide.

Thus, consumers log on to these e-marketers websites,

click into their respective phone providers store, and top up, or pay, their telecommunications provider

Companys current product mix consisting of payment and recharge services, data plans, subscription plans, mobile phones, loyalty

points redemption and other products bundles (i.e.

mobile protection plans).

Chinese mobile phone consumers often utilize third-party

e-marketing websites to pay their phone bills.

If the consumer connected directly to the telecommunications provider to pay his or her

bill, the consumer would miss out on any benefits or marketing discounts that e-marketers provide.

Thus, consumers log on to these e-marketers

websites, click into their respective phone providers store, and top up, or pay, their telecommunications provider

for additional mobile data and talk time.

connect to the respective mobile telecommunications providers, these e-marketers must utilize a portal licensed by the applicable

telecommunication company that processes the payment.

We have been granted one of these licenses by China United Network Communications

Group Co., Ltd.

( China Unicom ) and China Mobile Communications Corporation ( China Mobile ),

each of which is a major telecommunications provider in China.

We principally earn revenue by providing mobile payment and recharge

services to customers of China Unicom and China Mobile.

conduct our mobile payment business through Shanghai JiuGe Technology Co., Ltd.

( JiuGe Techology ), our contractually

controlled affiliate through the entry into a series of agreements known as variable interest agreements (the VIE Agreements )

in October 2018.

In the first half of 2018, JiuGe Technology secured contracts with China Unicom and China Mobile to distribute

mobile data for businesses and corporations in nine provinces/municipalities, namely Chengdu, Jiangxi, Jiangsu, Chongqing, Shanghai,

Zhuhai, Zhejiang, Shaanxi and Inner Mongolia.

In September 2018, JiuGe Technology launched and commercialized mobile payment and

recharge services to businesses for China Unicom.

JiuGe Technology mobile payment and recharge platform enables the seamless delivery of real-time payment and recharge services

to third-party channels and businesses.

We earn a rebate from each telecommunications company on the funds paid by consumers to

the telecommunications companies we process.

To encourage consumers to utilize our portal instead of using our competitors

platforms or paying China Unicom or China Mobile directly, we offer mobile data and talk time at a rate discounted from these

companies stated rates, which are also the rates we must pay to them to purchase the mobile data and talk time provided

to consumers through the use of our platform.

Accordingly, we earn income on the rebates we receive from China Unicom and China

Mobile, reduced by the amounts by which we discount the mobile data and talk time sold through our platform.

started and commercialized its Business to Business ( B2B ) model by integrating with various

e-commerce platforms to provide its mobile payment and recharge services to subscribers or end consumers.

In the first quarter

of 2019 FingerMotion expanded its business by commercializing its first Business to Consumer ( B2C )

model, offering the telecommunication providers products and services, including data plans, subscription plans, mobile

phones, and loyalty points redemption, directly to subscribers or customers of the e-commerce companies, such as PinDuoDuo ( PDD )

and TMall ( TMALL ).

The Company is planning to further expand its universal exchange platform by setting up

B2C stores on several other major e-commerce platforms in China.

In addition to that, we have been assigned as one of Chinas

Mobiles loyalty redemption partner where we will be providing the services for their customers via our platform.

connect to the respective mobile telecommunications providers, these e-marketers must utilize a portal licensed by the applicable telecommunication

company that processes the payment.

We have been granted one of these licenses by China Unicom and China Mobile, each of which is a major

telecommunications provider in China.

We principally earn revenue by providing mobile payment and recharge services to customers of China

Unicom and China Mobile.

conduct our mobile payment business through JiuGe Technology, our contractually controlled affiliate through the entry into a series

of agreements known as VIE Agreements in October 2018.

In the first half of 2018, JiuGe Technology secured contracts with China Unicom

and China Mobile to distribute mobile data for businesses and corporations in nine provinces/municipalities, namely Chengdu, Jiangxi,

Jiangsu, Chongqing, Shanghai, Zhuhai, Zhejiang, Shaanxi, Inner Mongolia, Henan and Fujian.

In September 2018, JiuGe Technology launched

and commercialized mobile payment and recharge services to businesses for China Unicom.

In May 2021, JiuGe Technology signed a volume-based

agreement with China Mobile Fujian to offer recharge services to the Fujian province which we have launched and commercialized in November

JiuGe Technology mobile payment and recharge platform enables the seamless delivery of real-time payment and recharge services to third-party

channels and businesses.

We earn a rebate from each telecommunications company on the funds paid by consumers to the telecommunications

companies we process.

To encourage consumers to utilize our portal instead of using our competitors platforms or paying China

Unicom or China Mobile directly, we offer mobile data and talk time at a rate discounted from these companies stated rates, which

are also the rates we must pay to them to purchase the mobile data and talk time provided to consumers through the use of our platform.

Accordingly, we earn income on the rebates we receive from China Unicom and China Mobile, reduced by the amounts by which we discount

the mobile data and talk time sold through our platform.

started and commercialized its Business to Business ( B2B ) model by integrating with various e-commerce

platforms to provide its mobile payment and recharge services to subscribers or end consumers.

In the first quarter of 2019 FingerMotion

expanded its business by commercializing its first Business to Consumer ( B2C ) model, offering the

telecommunication providers products and services, including data plans, subscription plans, mobile phones, and loyalty points

redemption, directly to subscribers or customers of the e-commerce companies, such as PinDuoDuo ( PDD ), TMall ( TMALL )

and JD.Com ( JD ).

The Company is planning to further expand its universal exchange platform by setting up B2C stores

on several other major e-commerce platforms in China.

In addition to that, we have been assigned as one of Chinas Mobiles

loyalty redemption partner where we will be providing the services for their customers via our platform.

Additionally,

as previously disclosed, on July 7, 2019, JiuGe Technology, our contractually controlled affiliate, entered into that certain

Yunnan Unicom Electronic Sales Platform Construction and Operation Cooperation Agreement (the Cooperation Agreement )

with China Unicoms Yunnan subsidiary.

Under the Cooperation Agreement, JiuGe Technology is responsible for constructing

and operating China Unicoms electronic sales platform through which consumers can purchase various goods and services from

China Unicom, including mobile telephones, mobile telephone service, broadband data services, terminals, smart devices

and related financial insurance.

The Cooperation Agreement provides that JiuGe Technology is required to construct and operate

the platforms webpage in accordance with China Unicoms specifications and policies, and applicable law, and bear

all expenses in connection therewith.

As consideration for the service it provides under the Cooperation Agreement, JiuGe Technology

receives a percentage of the revenue received from all sales it processes for China Unicom on the platform.

The Cooperation Agreement

expires three years from the date of its signature, but it may be terminated by (i) JiuGe Technology upon three months

written notice or (ii) by China Unicom unilaterally.

the recent fiscal year, the Company expanded its offering under their telecommunication product and services by increasing their

product line revenue streams.

In March 2020, FingerMotion secure a contract with both China Mobile and China Unicom to acquire

new users to take up the respective subscription plans.

Recently, in February 2021, we increased the mobile phones sales to end

users using all of our platforms.

as previously disclosed, on July 7, 2019, JiuGe Technology, our contractually controlled affiliate, entered into that certain Yunnan

Unicom Electronic Sales Platform Construction and Operation Cooperation Agreement (the Cooperation Agreement ) with

China Unicoms Yunnan subsidiary.

Under the Cooperation Agreement, JiuGe Technology is responsible for constructing and operating

China Unicoms electronic sales platform through which consumers can purchase various goods and services from China Unicom, including

mobile telephones, mobile telephone service, broadband data services, terminals, smart devices and related financial insurance.

The Cooperation Agreement provides that JiuGe Technology is required to construct and operate the platforms webpage in accordance

with China Unicoms specifications and policies, and applicable law, and bear all expenses in connection therewith.

As consideration

for the service it provides under the Cooperation Agreement, JiuGe Technology receives a percentage of the revenue received from all

sales it processes for China Unicom on the platform.

The Cooperation Agreement expires three years from the date of its signature with

yearly auto-renewal terms, but it may be terminated by (i) JiuGe Technology upon three months written notice or (ii) by China

Unicom unilaterally.

the recent fiscal year, the Company expanded its offering under their telecommunication product and services by increasing their product

line revenue streams.

In March 2020, FingerMotion secured a contract with both China Mobile and China Unicom to acquire new users to

take up the respective subscription plans.

in February 2021, we increased the mobile phones sales to end users using all of our platforms.

This business will continue to contribute

to the overall revenue for the group as part of our offering to our customers.

Added Product and Services

are new product and services that the Company expects to secure and work with the telecommunication provider and all our e-commerce platform

partners to market.

The current and upcoming value-added product is the Mobile Protection programs which we plan to launch soon.

2022, our contractually controlled subsidiary, JiuGe Technology, through its 99% own subsidiary Shanghai Tenglian JiuJiu Information

Communication Technology Co., Ltd.

( TengLian ) signed an agreement with both China Unicom and China Mobile to co-operate

to roll out the Mobile Device protection product which is incorporated into the Telecommunication subscription plans in line with their

roll out of new mobile phones and new 5G phones.

The estimated roll out is expected to be in the second quarter of FY2023.

and MMS Services

1 unchanged sentence

( Beijing Technology ),

a company in the business of providing mass SMS text services to businesses looking to communicate with large numbers of their

customers and prospective customers.

With this acquisition,the Company expanded into a second partnership with the telecom companies

by acquiring bulk Short Message Service (SMS ) and Multimedia Messaging Service ( MMS )

bundles at reduced prices and offering bulk SMS services to end consumers with competitive pricing.

FingerMotions subsidiary,

Beijing Technology, retains a license from the Ministry of Industry and Information Technology (MIIT) to

operate the SMS and MMS business in the PRC.

Similar to the mobile payment and recharge business, Beijing Technology is required

to make a deposit or bulk purchase in advance and has secured business customers, including premium car manufacturers, hotel chains,

airlines and e-commerce companies, that utilize Beijing Technologys SMS integrated platform to send bulk SMS text messages

Beijing Technology has the capability to manage and track the entire process, including guiding the Companys customer

to meet MIITs guidelines on messages composed, until the SMS messages have been delivered successfully.

a company in the business of providing mass SMS text services to businesses looking to communicate with large numbers of their customers

and prospective customers.

With this acquisition, the Company expanded into a second partnership with the telecom companies by acquiring

bulk Short Message Service (SMS ) and Multimedia Messaging Service ( MMS ) bundles at reduced

prices and offering bulk SMS services to end consumers with competitive pricing.

FingerMotions subsidiary, Beijing Technology,

retains a license from the Ministry of Industry and Information Technology (MIIT) to operate the SMS and MMS business

Similar to the mobile payment and recharge business, Beijing Technology is required to make a deposit or bulk purchase in

advance and has secured business customers, including premium car manufacturers, hotel chains, airlines and e-commerce companies, that

utilize Beijing Technologys SMS integrated platform to send bulk SMS text messages monthly.

Beijing Technology has the capability

to manage and track the entire process, including guiding the Companys customer to meet MIITs guidelines on messages composed,

until the SMS messages have been delivered successfully.

Communication Services

March 2020, the Company began development of an RCS platform, also known as MaaP (Messaging as a Platform).

This RCS platform

will be a proprietary business messaging platform that enables businesses and brands to communicate and service their customers

on the 5G infrastructure, delivering a better and more efficient user experience at a lower cost.

For example, with the new 5G

RCS message service, consumers will have the ability to list available flights by sending a message regarding a holiday and will

also be able to book and buy flights by sending messages.

This will allow telecommunication providers like China Unicom and China

Mobile to retain users on their systems, without having to utilize third party apps or log onto the internet, which will increase

their user retention.

We expect this to open up a new marketing channel for the Companys current and prospective business

This RCS platform will be

a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure,

delivering a better and more efficient user experience at a lower cost.

For example, with the new 5G RCS message service, consumers will

have the ability to list available flights by sending a message regarding a holiday and will also be able to book and buy flights by

sending messages.

This will allow telecommunication providers like China Unicom and China Mobile to retain users on their systems, without

having to utilize third party apps or log onto the internet, which will increase their user retention.

We expect this to open up a new

marketing channel for the Companys current and prospective business partners.

Data Insights

July 2020, the Company launched its proprietary technology platform Sapientus as its big data insights arm to deliver

data-driven solutions and insights for businesses within the insurance, healthcare, and financial services industries.

the information gathered via the Companys licensed access to telecommunication data, Sapientus transforms raw telco data

into basic building blocks, statistical measures, and behavioral inferences, while layering in auxiliary contextual information,

to extract behavioral insights and power revolutionary applications for insurance and financial services.

July 2020, the Company launched its proprietary technology platform Sapientus as its big data insights arm to deliver data-driven

solutions and insights for businesses within the insurance, healthcare, and financial services industries.

The Company applies its vast

experience in the insurance and financial services industry and capabilities in technology and data analytics to develop revolutionary

solutions targeted towards insurance and financial consumers.

Integrating diverse publicly available information, insurance and financial

based data with technology and finally registering them into the FingerMotion telecommunications and insurance ecosystem, the Company

would be able to provide functional insights and facilitate the transformation of key components of the insurance value chain, including

driving more effective and efficient underwriting, enabling fraud evaluation and management, empowering channel expansion and market

penetration through novel product innovation, and more.

The ultimate objective is to promote, enhance and deliver better value to our

partners and customers.

Companys proprietary risk assessment engine offers standard and customized scoring and appraisal services based on multi-dimensional

The Company has the ability to provide potential customers and partners with various big data enabled applications including

preferred risk selection, precision marketing, product customization, and claims management (e.g.

fraud detection).

The Companys

mission is to deliver the next generation of data-driven solutions in the financial services, healthcare, and insurance industries

that result in more accurate risk assessments, more efficient processes, and a more delightful user experience.

The Company has the ability to provide potential customers and partners with insights-driven and technology-enabled solutions

and applications including preferred risk selection, precision marketing, product customization, and claims management (e.g., fraud detection).

The Companys mission is to deliver the next generation of data-driven solutions in the financial services, healthcare, and insurance

industries that result in more accurate risk assessments, more efficient processes, and a more delightful user experience.

or around January 25, 2021, the Companys wholly owned subsidiary, Finger Motion Financial Company Limiteds, big data analytic

arm branded Sapientus, entered into a services agreement with Pacific Life Re, a global life reinsurer serving the insurance

industry with a comprehensive suite of products and services.

or around December 2021, the Company through JiuGe Technology formed a collaborative research alliance with Munich Re in extending behavioral

analytics to enhance understanding of morbidity and behavioral patterns in China market, with the goal of creating value for both insurers

and the end insurance consumers through better technology, product offerings and customer experience.

Video Game Division

video game industry covers multiple sectors and is currently experiencing a move away from physical games towards digital software.

Advances in technology and streaming now allow users to download games rather than visiting retailers.

Video game publishers are

expanding their direct-to-consumer channels with mobile gaming, the current growth leader, and eSports and virtual reality gaining

momentum as the next big sectors.

June 2018, we temporarily paused its publishing and operating plans for existing games, and the Companys board of directors

decided to re-focus the companys resources into new business opportunities in China, particularly the mobile phone payment

and data business.

December 2, 2020, our contractually controlled subsidiary, Shanghai JiuGe Information Technology Co., Ltd., and China Mobile Financial

Technology Co., Ltd., a subsidiary of China Mobile, signed a strategic cooperation agreement to explore and create a new forward-leaning

business model that combines the traditional loyalty point redemption business with an e-commerce platform designed to create

a higher evolution of brand loyalty.

December 11, 2020, our board of directors approved an increase in the number of directors on the board of directors of the Company

from three members to four members and appointed Ng Eng Ho as a director of the Company to fill such vacancy created by the increase

in the number of members on the board of directors of the Company.

On the same day, Martin Shen resigned as CFO of the Company

and the board of directors appointed Lee Yew Hon as the CFO of the Company.

or around January 25, 2021, the Companys wholly owned subsidiary, Finger Motion Financial Company Limiteds, big

data analytic arm branded Sapientus, entered into a services agreement with Pacific Life Re, a global life reinsurer

serving the insurance industry with a comprehensive suite of products and services.

our contractually controlled subsidiary, Shanghai JiuGe Information Technology Co., Ltd., successfully entered into a volume-based

contract with China Mobile Fujian with respect to our SMS services.

in technology and streaming now allow users to download games rather than visiting retailers.

Video game publishers are expanding their

direct-to-consumer channels with mobile gaming, the current growth leader, and eSports and virtual reality gaining momentum as the next

In June 2018, we temporarily paused its publishing and operating plans for existing games, and the Companys board

of directors decided to re-focus the companys resources into new business opportunities in China, particularly the mobile phone

payment and data business.

or around December 2021, our contractually controlled subsidiary, JiuGe Technology formed a collaborative Research lab with Munich Re

in extending behavioral analytics to enhance understanding of morbidity and behavioral patterns in China market, with the goal of creating

value for both insurers and the end insurance consumers through better technology, product offerings and customer experience.

December 28, 2021, we successfully uplisted to Nasdaq Capital Market under the current trading symbol of FNGR.

February 2022, our contractually controlled subsidiary, JiuGe Technology through its 99% owned subsidiary TengLian signed an agreement

with both China Unicom and China Mobile to co-operate to roll out the Mobile Device protection product which is incorporated into the

telecommunication subscription plans in line with their roll out of new mobile phones and new 5G phones.

of Operations

10 unchanged sentences

Total other income (expenses)

Net Loss attributable to the Company’s shareholders

$ (4,943,444 )

12 unchanged sentences

Total Revenue

recorded $16,683,570 in revenue for the year ended February 28, 2021, an increase of $7,552,276 or 83%, compared to the year ended

February 29, 2020.

This increase resulted from an increase in revenue of $1,389,022, $6,130,177 and $33,077 from our Telecommunication

Products & Services, SMS & MMS business and Big Data business, respectively.

We principally earn revenue by providing

mobile payment and recharge services to customers of telecommunications companies in China.

Specifically, we earn a negotiated

rebate amount from the telecommunications companies for all monies paid by consumers to those companies that we process.

continue to develop our mobile recharge business, we expect that revenues will continue to grow.

Our SMS texting service grows

substantially compare to last year when it was recently acquired.

The growth will be expected to flourish further with the Company

continuing putting prepayment to purchase large bulk of inventories to be resold to our increasing corporate clientele.

earned revenue during the most recently completed fiscal year from our new venture on subscription plan acquisition and mobile

The Company expects and hopes that these product offering will continue to provide additional revenue for the Company

in the future.

During the last quarter of the fiscal year, our Big Data division secured a contract with Pacific Life Re, a global

life reinsurance serving the insurance industry with comprehensive suite of products and services, to develop a holistic multi-faceted

risk rating concept, leveraging the Companys proprietary approach to analytics by drawing data from novel sources and filtering

them through advance algorithms with the ultimate goal to apply new insights generated from our FingerMotions predictive

model to the traditional insurance industry.

This division has since recorded revenue and we expect additional revenue from this

division in the future.

recorded $22,927,415 in revenue for the year ended February 28, 2022, an increase of $6,243,845 or 37%, compared to the year ended February

This increase resulted from an increase in revenue of $5,446,174, $699,330 and $98,341 from our Telecommunication Products

& Services, SMS & MMS business and Big Data business, respectively.

We principally earn revenue by providing mobile payment and

recharge services to customers of telecommunications companies in China.

Specifically, we earn a negotiated rebate amount from the telecommunications

companies for all monies paid by consumers to those companies that we process.

As we continue to develop our mobile recharge business,

we expect that revenues will continue to grow especially on the new collaboration with China Mobile on Fujian province.

plans and mobile phone sales are other revenues that contributed to the Telecommunication Products & Services revenue.

Our SMS texting

service saw a slight improvement compared to last year as we are redistributing our resources to expand the Telecommunication Products

& Services as opportunity arises.

This trend will continue to better manage our resources to enable a healthier overall profit margin.

The Company expects and hopes that these new product offerings will continue to provide additional revenue for the Company in the future.

During the last quarter of FY2021, our Big Data division secured a contract with Pacific Life Re, a global life reinsurance serving the

insurance industry with comprehensive suite of products and services, to develop a holistic multi-faceted risk rating concept, leveraging

the Companys proprietary approach to analytics by drawing data from novel sources and filtering them through advance algorithms

with the ultimate goal to apply new insights generated from our FingerMotions predictive model to the traditional insurance industry.

The revenue recorded flowed into the current year and we expect additional revenue from this division in the future.

following table sets forth the Companys cost of revenue for the periods indicated:

4 unchanged sentences

Total Cost of Revenue

recorded $15,036,875 in costs of revenue for the year ended February 28, 2021, an increase of $6,871,340 or 84%, compared to the

year ended February 29, 2020.

As previously mentioned, we principally earn revenue by providing mobile payment and recharge services

to customers of telecommunications companies, subscription plans and mobile phone sales in China.

To earn this revenue, we incur

cost of the product, certain customer acquisition costs, including discounts to our customers and promotional expenses, which

is reflected in our cost of revenue.

recorded $20,113,294 in costs of revenue for the year ended February 28, 2022, an increase of $5,076,418 or 34%, compared to the year

ended February 28, 2021.

As previously mentioned, we principally earn revenue by providing mobile payment and recharge services to customers

of telecommunications companies, subscription plans and mobile phone sales in China.

To earn this revenue, we incur cost of the product,

certain customer acquisition costs, including discounts to our customers and promotional expenses, which is reflected in our cost of

gross profit for the year ended February 28, 2022 was $2,814,121, an increase of $1,167,427 or 71%, compared to the year ended February

This increase in gross profit resulted from higher revenue for the period.

This increase in gross profit resulted from higher revenue for the period as well as an improved margin.

The gross profit margin

for the fiscal year ended February 28, 2022 is 12.27% compared to a gross margin of 9.87% for the fiscal year ended February 28, 2021.

& Depreciation

recorded depreciation of $27,055 for fixed assets for the year ended February 28, 2021, an increase of $20,137 or 291%, compared

to the year ended February 29, 2020.

This increase resulted in purchase of equipment and investment in platforms.

recorded depreciation of $57,894 for fixed assets for the year ended February 28, 2022, an increase of $30,839 or 114%, compared to the

year ended February 28, 2021.

This increase resulted from the purchase of equipment.

and Administrative Expenses

6 unchanged sentences

Total G&A Expenses

recorded $4,246,880 in general and administrative expenses for the year ended February 28, 2021, an increase of $1,583,271 or

59%, compared to the year ended February 29, 2020.

The increased consulting and staff salaries are principally the result of the

commencement and building of our three lines of businesses.

recorded $5,280,582 in general and administrative expenses for the year ended February 28, 2022, an increase of $1,033,702 or 24%, compared

to the year ended February 28, 2021.

The increased consulting and staff salaries are principally the result of the commencement and building

of our three lines of businesses.

Costs have also increased due to our up-listing process which includes some engagement of consultants

to assist the Company in the process.

following table sets forth the Companys marketing cost for the periods indicated:

3 unchanged sentences

recorded $641,917 in marketing cost for the year ended February 28, 2022 for our telecommunication products and services business.

Marketing costs represent the costs of promoting our product offerings through all our platforms.

costs represent the costs of promoting our product offerings through all our platforms.

& Development

2 unchanged sentences

February 28, 2021

Research & Development –

recorded $552,343 in research & development for the year ended February 28, 2021, as compared to $390,288 for the year ended

February 29, 2020.

The increase of $162,055 or 42% was due to increase in headcount for the Research & Development team and

higher data access and usage fee charged by telecommunications company.

Research & Development – Big Data

recorded $923,387 in research & development for the year ended February 28, 2022, as compared to $552,343 for the year ended February

The increase of $371,044 or 67% was due to increase in headcount for the Research & Development team and higher data access

and usage fee charged by telecommunications company.

Insurtech division of FingerMotion focuses on consumer behavioral insights extraction for the purpose of risk assessment.

are derived from various data sources with the primary sources being the telecommunication data.

The initial phase of business

application is to focus on insurance industry particularly in the area of underwriting risk rating, complementary claims adjudication

and assessment, and risk segmentation & market penetration.

derived from various data sources with the primary sources being the telecommunication data.

The initial phase of business application

is to focus on insurance industry particularly in the area of underwriting risk rating, complementary claims adjudication and assessment,

and risk segmentation & market penetration.

division comprises of experienced actuaries, data scientists and computer programmers.

expenses for research & development include associated wages and salaries, data access fees and IT infrastructure.

1 st stage of prototyping on Phase 1 - analytical framework and business applications have been completed and target

to commercialize by the end of calendar 2021

1 st stage of prototyping on Phase 1 - analytical framework and business applications have been completed and target to commercialize

by the middle of calendar 2022.

Compensation Expenses

5 unchanged sentences

for the year ended February 28, 2022 as compared to $640,394 for the year ended February 28, 2021.

recorded $5,871,877 in operating expenses for the year ended February 28, 2021 as compared to $4,031,803 in operating expenses

for the year ended February 29, 2020.

The increase of $137,182 or 21% was

due to more consultants being compensated with shares of the Company.

The rationale is to minimize the usage of cash by the Company in

order for the Company to invest in revenue generating activities.

recorded $7,681,356 in operating expenses for the year ended February 28, 2022 as compared to $5,871,877 in operating expenses for the

year ended February 28, 2021.

The increase of $1,809,479 or 31% for the year ended February 28, 2022 is as set forth above.

Loss attributable to the Companys shareholders

net loss attributable to the Companys shareholders was $4,381,974 for the year ended February 28, 2021 and $3,004,365 for

the year ended February 29, 2020.

The increase in net loss attributable to the Companys shareholders of $1,377,609 or 46%

resulted primarily from the increase in total operating expenses as discussed above.

net loss attributable to the Companys shareholders was $4,943,444 for the year ended February 28, 2022 and $4,381,974 for the

year ended February 28, 2021.

The increase in net loss attributable to the Companys shareholders of $561,470 or 13% resulted primarily

from the increase in total operating expenses as discussed above.

and Capital Resources

3 unchanged sentences

Cash reserves

Working capital (deficiency)

Working capital

February 28, 2022, we had cash and cash equivalents of $461,933 as compared to cash and cash equivalents of $850,717 at February 28,

In order for us to continue to operate our mobile payment business, we must deposit funds with our telecommunication

companies from time to time in order to obtain access to the mobile data and talk-time we make available to consumers on our portal.

Accordingly, the amount of cash we have on hand fluctuates significantly from period to period.

The Company otherwise does not

have any planned capital expenditures and has historically funded its operations from revenues and sales of securities, including

convertible debt securities.

We believe that our cash on hand, cash equivalents and short-term investments, along with our revenues

from operations, will fund our projected operating requirements, fund our current operations and repay our outstanding indebtedness,

in each case, for at least the next 12 months.

However, to grow our business substantially, we will need to increase the amount

of funds we have deposited with the telecommunications companies for which we process mobile recharge payments.

Accordingly, we

expect to seek additional capital through public or private sales of our equity or debt securities, or both.

We might also enter

into financing arrangements with commercial banks or nontraditional lenders.

We cannot provide investors with any assurance that

we will be able to raise additional funding from the sale of our equity or debt securities, or both, in order to increase our

deposits with our telecommunications company clients, or if available, that such funding will be on terms acceptable to us.

currently do not have any financing arrangements in place.

We did, however, raise $5,886,500 through the sale of shares of our

common stock in private placement transactions exempt from the registration requirements of the Securities Act of 1933 during

the year ended February 28, 2021.

In order for us to continue to operate our mobile payment business, we must deposit funds with our telecommunication companies

from time to time in order to obtain access to the mobile data and talk-time we make available to consumers on our portal.

the amount of cash we have on hand fluctuates significantly from period to period as explained above to ensure our cash is being used

efficiently by our operations to generate revenues.

The Company otherwise does not have any planned capital expenditures and has historically

funded its operations from revenues and sales of securities, including convertible debt securities.

We believe that our cash on hand,

cash equivalents and short-term investments, along with our revenues from operations, will fund our projected operating requirements,

fund our current operations and repay our outstanding indebtedness, in each case, for at least the next 12 months.

However, to grow our

business substantially, we will need to increase the amount of funds we have deposited with the telecommunications companies for which

we process mobile recharge payments.

Accordingly, we expect to seek additional capital through public or private sales of our equity

or debt securities, or both.

We might also enter into financing arrangements with commercial banks or non-traditional lenders.

provide investors with any assurance that we will be able to raise additional funding from the sale of our equity or debt securities,

or both, in order to increase our deposits with our telecommunications company clients, or if available, that such funding will be on

terms acceptable to us.

did, however, raise $5,114,499 through the sale of shares of our common stock in private placement transactions exempt from the registration

requirements of the Securities Act during the year ended February 28, 2022.

following table provides a summary of cash flows for the periods presented:

8 unchanged sentences

Net increase (decrease) in cash and cash equivalents

$ (1,234,326 )

Flow used in Operating Activities

Net cash used in operating activities increased

by $1,712,478 in the year ended February 28, 2021 compared to the year ended February 29, 2020, primarily due to an increase in

accounts receivable of $1,437,329 (2020:

cash used in operating activities increased by $1,576,244 in the year ended February 28, 2022 compared to the year ended February 28,

2021, primarily due to an increase in accounts receivable of ($775,837) (2021:

($1,437,329)), increase in prepayment and deposit of ($2,684,965)

(2021:$1,975,673), increase in other receivable of ($32,545) (2021:

$575,146), increase in inventories

of $1,401 (2020;

$nil) and decrease in accounts payable of ($230,118) (2020:

$1,464,474), offset by a decrease in prepayment and

deposit of $1,975,673 (2020:

($906,265)), increase in inventories of ($6) (2021:($1,401)) and

decrease in lease liability of ($3,191) (2021:$3,191) offset by an increase in accounts payable of $1,114,653 (2021:

($230,118)) and

increase in accrual and other payables of $639,107 (2021:

$747,674) and increase in lease

liability of $3,191 (2020:

The increase of prepayment and deposits were the key reasons for the

higher cash flow used in operating activities which were crucial for the Company to continue to commit more deposits into the telcos

to improve our revenue streams as noticeable in the current financial year.

Flow used in Investing Activities

the year ended February 28, 2021, investing activities used cash of $238,485 compared to $17,237 during the year ended February

The increase by $221,248 in cash used in investing activities from the year ended February 28, 2021 as compared to February

29, 2020 related primarily to the purchase of equipment and investment in platforms.

the year ended February 28, 2022, investing activities decreased by $212,413 compared to the year ended February 28, 2021.

The decreased

was due to the completed amortization of intangibles in the previous year.

There were no new acquisition for the current financial year.

Flow provided by Financing Activities

During the year ended February 28, 2021, financing

activities provided cash of $5,174,600 compared to $1,301,386 during the year ended February 29, 2020.

The increase of $3,873,214

in the year ended February 28, 2021 was primarily due to decrease in due to related parties, loan from non-controlling stockholder

and proceeds from issuance of shares of our common stock.

the year ended February 28, 2022, financing activities provided cash of $5,414,194 compared to $5,174,600 during the year ended February

The increase of $239,594 in the year ended February 28, 2022 was primarily due to loan from non-controlling stockholder and

proceeds from issuance of shares of our common stock.

Sheet Arrangements

are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,

changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources

that is material to investors.

changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that

is material to investors.

have determined that we do not have any material subsequent events to report.

4 unchanged sentences

The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries.

intercompany accounts, transactions, and profits have been eliminated upon consolidation.

All intercompany

accounts, transactions, and profits have been eliminated upon consolidation.

interest entity

to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 810,

Consolidation (ASC 810), the Company is required to include in its consolidated financial statements,

the financial statements of its variable interest entities (VIEs).

ASC 810 requires a VIE to be consolidated if

that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIEs

residual returns.

VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys

the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity

has both of the following characteristics:

(a) the power to direct the activities of the VIE that most significantly affect the

VIEs economic performance;

and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially

be significant to the VIE.

The reporting entitys determination of whether it has this power is not affected by the existence

of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have

the unilateral ability to exercise those rights.

JiuGe Technologys actual stockholders do not hold any kick-out rights

that affect the consolidation determination.

the VIE agreements, the Company is deemed the primary beneficiary of JiuGe Technology.

Accordingly, the results of JiuGe Technology

have been included in the accompanying consolidated financial statements.

JiuGe Technology has no assets that are collateral for

or restricted solely to settle their obligations.

to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 810, Consolidation

(ASC 810), the Company is required to include in its consolidated financial statements, the financial statements of its

variable interest entities (VIEs).

ASC 810 requires a VIE to be consolidated if that company is subject to a majority of

the risk of loss for the VIE or is entitled to receive a majority of the VIEs residual returns.

VIEs are those entities in which

a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity,

and therefore the company is the primary beneficiary of the entity.

ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has

both of the following characteristics:

(a) the power to direct the activities of the VIE that most significantly affect the VIEs

economic performance;

and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant

The reporting entitys determination of whether it has this power is not affected by the existence of kick-out rights

or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability

to exercise those rights.

JiuGe Technologys actual stockholders do not hold any kick-out rights that affect the consolidation

determination.

Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of JiuGe Technology.

Accordingly, the results

of JiuGe Technology have been included in the accompanying consolidated financial statements.

JiuGe Technology has no assets that are

collateral for or restricted solely to settle their obligations.

The creditors of JiuGe Technology do not have recourse to the Companys

2 unchanged sentences

Company relies on cloud-based hosting through a global accredited hosting provider.

Management believes that alternate sources

are available;

Management believes that alternate sources are available;

however, disruption or termination of this relationship could adversely affect our operating results in the near-term.

1 unchanged sentence

intangible assets are recorded at cost and are amortized over 3-10 years.

Similar to tangible property and equipment, the Company

periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that

the carrying amount may not be recoverable.

Similar to tangible property and equipment, the Company periodically

evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount

may not be recoverable.

of Long-Lived Assets

1 unchanged sentence

(i) computer and office equipment;

(ii) furniture and fixtures, (iii) leasehold

improvements, and (iv) finite –

lived intangible assets.

assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the

carrying value of such assets may not be fully recoverable.

It is possible that these assets could become impaired as a result

of technology, economy or other industry changes.

If circumstances require a long-lived asset or asset group to be tested for

possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group

to its carrying value.

If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash

flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value.

Fair value is determined

through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market

values and third-party independent appraisals, as considered necessary.

Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair

values of the respective assets.

The assumptions and estimates used to determine future values and remaining useful lives of long-lived

assets are complex and subjective.

They can be affected by various factors, including external factors such as industry and economic

trends, and internal factors such as the Companys business strategy and its forecasts for specific market expansion.

(ii) furniture and fixtures, (iii) leasehold improvements,

and (iv) finite – lived intangible assets.

assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying

value of such assets may not be fully recoverable.

It is possible that these assets could become impaired as a result of technology,

economy or other industry changes.

If circumstances require a long-lived asset or asset group to be tested for possible impairment, the

Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value.

If the carrying

value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the

extent that the carrying value exceeds its fair value.

Fair value is determined through various valuation techniques, including discounted

cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary.

Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values

of the respective assets.

The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets

are complex and subjective.

They can be affected by various factors, including external factors such as industry and economic trends,

and internal factors such as the Companys business strategy and its forecasts for specific market expansion.

Receivable and Concentration of Risk

2 unchanged sentences

for allowances that includes returns, allowances and doubtful accounts equal to the estimated uncollectible amounts.

estimates its provision for allowances based on historical collection experience and a review of the current status of trade accounts

The Company estimates

its provision for allowances based on historical collection experience and a review of the current status of trade accounts receivable.

It is reasonably possible that the Companys estimate of the provision for allowances will change.

and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value

of the future lease payments over the lease term.

When the rate implicit to the lease cannot be readily determined, the Company

utilizes its incremental borrowing rate in determining the present value of the future lease payments.

The incremental borrowing

rate is derived from information available at the lease commencement date and represents the rate of interest that the Company

would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar

economic environment.

The right-of-use asset includes any lease payments made and lease incentives received prior to the commencement

Operating lease right-of-use assets also include any cumulative prepaid or accrued rent when the lease payments are uneven

throughout the lease term.

The right-of-use assets and lease liabilities may include options to extend or terminate the lease

when it is reasonably certain that the Company will exercise that option.

and finance lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the

future lease payments over the lease term.

When the rate implicit to the lease cannot be readily determined, the Company utilizes its

incremental borrowing rate in determining the present value of the future lease payments.

The incremental borrowing rate is derived from

information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow

on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment.

The right-of-use

asset includes any lease payments made and lease incentives received prior to the commencement date.

Operating lease right-of-use assets

also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term.

The right-of-use assets

and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise

and Cash Equivalents

and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks,

which have original maturities of three months or less and are readily convertible to known amounts of cash.

and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which

have original maturities of three months or less and are readily convertible to known amounts of cash.

and Equipment

and equipment are stated at cost.

Depreciation of property and equipment is provided using the straight-line method for financial

reporting purposes at rates based on the estimated useful lives of the assets.

Estimated useful lives range from three to seven

Land is classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic 360-45.

(loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects

of potential common shares outstanding during the period are included in diluted earnings per share.

Accounting Standard Codification Topic 260 (ASC 260), Earnings Per Share, requires that employee equity

share options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in

computing diluted earnings per share.

Diluted earnings per share should be based on the actual number of options or shares granted

and not yet forfeited, unless doing so would be anti-dilutive.

The Company uses the treasury stock method for equity

instruments granted in share-based payment transactions provided in ASC 260 to determine diluted earnings per share.

securities represent potentially dilutive securities which are excluded from the computation of diluted earnings or loss per share

as their impact was antidilutive.

Company adopted ASC 606, Revenue from Contracts with Customers (ASC 606) beginning on January 1, 2018 using the

modified retrospective approach.

ASC 606 establishes principles for reporting information about the nature, amount, timing and

uncertainty of revenue and cash flows arising from the entitys contracts to provide goods or services to customers.

principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects

the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance

obligations are satisfied.

The Company has assessed the impact of the guidance by reviewing its existing customer contracts and

current accounting policies and practices to identify differences that will result from applying the new requirements, including

the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus

agent considerations.

Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue

recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Companys consolidated

financial statements upon adoption of ASC 606.

Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to

its customers.

Depreciation of property and equipment is provided using the straight-line method for financial reporting

purposes at rates based on the estimated useful lives of the assets.

Estimated useful lives range from three to seven years.

classified as held for sale when management has the ability and intent to sell, in accordance with ASC Topic 360-45.

(loss) earnings per share is based on the weighted average number of common shares outstanding during the period while the effects of

potential common shares outstanding during the period are included in diluted earnings per share.

Accounting Standard Codification Topic 260 (ASC 260), Earnings Per Share, requires that employee equity share

options, non-vested shares and similar equity instruments granted to employees be treated as potential common shares in computing diluted

earnings per share.

Diluted earnings per share should be based on the actual number of options or shares granted and not yet forfeited,

unless doing so would be anti-dilutive.

The Company uses the treasury stock method for equity instruments granted in share-based

payment transactions provided in ASC 260 to determine diluted earnings per share.

Antidilutive securities represent potentially dilutive

securities which are excluded from the computation of diluted earnings or loss per share as their impact was antidilutive.

Company adopted ASC 606, Revenue from Contracts with Customers (ASC 606) beginning on January 1, 2018 using the modified

retrospective approach.

ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of

revenue and cash flows arising from the entitys contracts to provide goods or services to customers.

The core principle requires

an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration

that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices

to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations,

transaction price, customer payments, transfer of control and principal versus agent considerations.

Based on the assessment, the Company

concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606

and therefore there was no material changes to the Companys consolidated financial statements upon adoption of ASC 606.

Company recognizes revenue from providing hosting and integration services and licensing the use of its technology platform to its customers.

The Company recognizes revenue when all of the following conditions are satisfied:

(1) there is persuasive evidence

of an arrangement;

(2) the service has been provided to the customer (for licensing, revenue is recognized when the Companys

technology is used to provide hosting and integration services);

(3) the amount of fees to be paid by the customer is fixed or

determinable;

and (4) the collection of fees is probable.

We account for our multi-element arrangements, such as instances

where we design a custom website and separately offer other services such as hosting, which are recognized over the period for

when services are performed.

Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification

(ASC) 740, Income Taxes (ASC 740).

Under this method, income tax expense is recognized

as the amount of:

(i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences

between financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets

and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences

are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized

in the results of operations in the period that includes the enactment date.

A valuation allowance is provided to reduce the deferred

tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred

tax assets will not be realized.

(1) there is persuasive evidence of an arrangement;

(2) the service has been provided to the customer (for licensing, revenue is recognized when the Companys technology is used to

provide hosting and integration services);

(3) the amount of fees to be paid by the customer is fixed or determinable;

and (4) the collection

of fees is probable.

We account for our multi-element arrangements, such as instances where we design a custom website and separately

offer other services such as hosting, which are recognized over the period for when services are performed.

Company uses the asset and liability method of accounting for income taxes in accordance with Accounting Standards Codification (ASC)

740, Income Taxes (ASC 740).

Under this method, income tax expense is recognized as the amount of:

payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying

amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted

tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that

includes the enactment date.

A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available

evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Non-controlling

interests held 1% shares of one of subsidiary is recorded as a component of our equity, separate from the Companys equity.

interests held 1% of the shares of two of our subsidiaries are recorded as a component of our equity, separate from the Companys

Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions.

of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss

of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized

of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control,

the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings.

Issued Accounting Pronouncements

Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material

effect on the consolidated financial position, statements of operations and cash flows.

Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material effect

on the consolidated financial position, statements of operations and cash flows.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

a smaller reporting company as defined in Rule 12b-2 under the Exchange Act, the Company is not required to provide the information

required by this item.

a smaller reporting company as defined in Rule 12b-2 under the Exchange Act, the Company is not required to provide the information required

by this item.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity