What changed in this filing

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Item 1A. Risk Factors

2021-02-12 compared with 2020-08-14 · 31 added, 46 removed, 1 unchanged (99% of the section changed)

Our results of operations have been

negatively impacted by the coronavirus pandemic.

The COVID-19 pandemic

has spread across the globe and continues to negatively impact worldwide economic activity.

COVID-19 has increased the risk that

the Company or its employees, suppliers, customers and other commercial partners may be prevented from conducting business for

an indefinite period of time, including due to the spread of the disease or shutdowns requested or mandated by governmental authorities.

Specifically, COVID-19 has increased the risk of customers’

inability to pay for our design services and has the potential

to impact collections on the distribution side of the business.

The Company has also

transitioned most of its New York employees to working remotely, which subjects the Company to increased cybersecurity risks and

may reduce workplace efficiency.

Additionally, the full extent of COVID-19’s negative impact on our business remains uncertain

and it is not possible at this time to estimate the full impact that COVID-19 will have on our business.

pandemic has spread across the globe and continues to negatively impact worldwide economic activity and has impacted our

Company in a number of ways.

COVID-19 has increased the risk that the Company or its employees, suppliers, customers

and other commercial partners may be prevented from conducting business for an indefinite period of time, including due to

the spread of the disease or shutdowns requested or mandated by governmental authorities.

Specifically, COVID-19 has

increased the risk of customers’

inability to pay for our products and services and has the potential to impact

collections of accounts receivable.

The Company has transitioned some of its employees to working remotely,

which subjects the Company to increased cybersecurity risks and may reduce workplace efficiency.

Business shutdowns have

disrupted our supply chain and the manufacture or shipment of our products and have delayed the rollout of our smart enabled retail

products to big box retail stores.

This could have a material adverse effect on our business if this continues for an extended

period of time.

If we incur significant declines in customer orders, increased aging of accounts receivables or other negative

consequences due to COVID-19, the extent of which remains highly uncertain, it will have a material adverse effect on our business,

financial condition and results of operations.

We may not be entitled to forgiveness

of our recently received PPP Loans, and our application for the PPP Loans could in the future be determined to have been impermissible.

In April 2020, we

received proceeds of $1,357,000 from a loan under the PPP of the CARES Act, which we are using to retain current employees, maintain

payroll and make lease and utility payments.

The PPP Loan matures in April 2022 and bears annual interest at a rate of 1.0%.

We must pay monthly

principal and interest payments on the outstanding principal balance of the PPP Loan amortized over the term of the loan beginning

in November 2020 until maturity when the entire principal balance remaining unpaid, along with all accrued and unpaid interest,

shall be due and payable in full.

Under the CARES Act, loan forgiveness is generally available for the sum of documented payroll

costs, covered rent payments, covered mortgage interest and covered utilities paid during a period of time specified by SBA guidelines.

We will be required to repay any portion of the outstanding principal that is not forgiven, along with accrued interest, and we

cannot provide any assurance that we will be eligible for loan forgiveness, that we will ultimately apply for forgiveness equally

among all business entities, or that any amount of the PPP Loan will ultimately be forgiven by the SBA.

If it is determined

that we were ineligible to receive the PPP Loan, we may be required to repay the PPP Loan in its entirety and/or be subject to

additional penalties, which could also result in adverse publicity and damage to our reputation.

In addition, if these events were

to transpire, they could have a material adverse effect on our business, results of operations and financial condition.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

DEFAULTS UPON SENIOR SECURITIES

MINE SAFETY DISCLOSURES

Not Applicable.

disrupted our supply chain and the manufacture or shipment of our products and have delayed the rollout of our smart enabled

retail products to big box retail stores.

The full extent of

COVID-19’s negative impact on our business remains uncertain and it is not possible at this time to estimate the full impact

that COVID-19 will have on our business.

Any of the issues discussed above could have a material adverse effect on our business

if this continues for an extended period of time.

If we incur significant declines in customer orders, increased aging of accounts

receivable or other negative consequences due to COVID-19, the extent of which remains highly uncertain, it will have a material

adverse effect on our business, financial condition and results of operations.

While we attempt

to identify, manage, and mitigate risks and uncertainties associated with our business to the extent practical under the circumstances,

some level of risk and uncertainty will always be present.

Item 1A - “Risk Factors”

in the Form 10-K describes some

of the risks and uncertainties associated with our business, which we strongly encourage you to review.

These risks and uncertainties

have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results,

and future prospects.

There have been no material changes in our risk factors from those disclosed in the Form 10-K.

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-Q

Item 1A. Risk Factors