What changed in this filing

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Item 1. Business

2024-03-29 compared with 2023-03-31 · 251 added, 248 removed, 4 unchanged (99% of the section changed)

We are a blockchain, cybersecurity, and social

media company that not only focuses on protecting privacy on personal devices, but also protects user information after it is shared with

We believe that one’s right to privacy should not end the moment they click “send”, and that we all deserve

the same right to privacy online that we enjoy in our own living rooms.

Our flagship product, DatChat Messenger & Private Social Network,

is a privacy platform and mobile application that gives users the ability to communicate with the privacy and protection they deserve.

we have expanded our business and product offerings to include the co-development of a mobile-based social metaverse, known

as “The Habytat”, as well as the development of VenVūū, an advertising and non-fungible token (“NFT”)

monetization platform.

DatChat Messenger & Private Social Network

Our platform allows users to exercise control

over their messages and posts, even after they are sent.

Through our application, users can delete messages that they have sent, on their

own device and the recipient’s device as well.

There is no set time limit within which they must exercise this choice.

elect at any time to delete a message that they previously sent to a recipient’s device.

The application also enables users to hide secret

and encrypted messages behind a cover, which messages can only be unlocked by the recipient and which are automatically destroyed after

a fixed number of views or fixed amount of time.

Users can decide how long their messages last on the recipient’s device.

The application

also includes a screen shot protection system, which makes it virtually impossible for the recipient to screenshot a message or picture

before it gets destroyed.

In addition, users can delete entire conversations at any time, making it like the conversation never even happened.

In addition to the foregoing, the application

also provides users with the ability to connect via an encrypted live video chat that also is designed to prevent screenshots or screen

The application integrates with iMessage, making

private messages potentially available to hundreds of millions of users.

In June 2022, we formed

a wholly owned subsidiary, SmarterVerse, Inc.

(“SmarterVerse”).

In July 2022, SmarterVerse entered into a development agreement

with MetaBizz, LLC, an infrastructure firm that creates and develops 4D experiences in the metaverse (“MetaBizz”).

In November 2022, we

launched The Habytat, a virtual space that blends real world and virtual realities into one, in real time, using emerging technology like

virtual and augmented reality, to create a highly immersive 3D environment.

In January 2023, we launched

Geniuz City, the first world within The Habytat.

Geniuz City is intended to be a near photo-realistic world that is based on the city

of Miami and its surrounding areas.

Geniuz City has been designed in a manner that can enable users to participate in a number of different

activities, such as parties, business conferences, shopping, socializing, and game play.

Currently, once users

download The Habytat application, we plan to grant each user rights to use a designated piece of virtual property in Geniuz City through

are a blockchain, cybersecurity, and social media company that not only focuses on protecting privacy on personal devices, but also protects

user information after it is shared with others.

We believe that one’s right to privacy should not end the moment they click “send”,

and that we all deserve the same right to privacy online that we enjoy in our own living rooms.

Our flagship product, DatChat Messenger

& Private Social Network, is a privacy platform and mobile application that gives users the ability to communicate with the privacy

and protection they deserve.

Recently, we have expanded our business and product offerings to include the co-development of a mobile-based

social and gaming metaverse, known as “Habytat”, as well as the development of Museum, an a social network and multi-media

storage platform for consumers and enterprises.

Messenger & Private Social Network

platform allows users to exercise control over their messages and posts, even after they are sent.

Through our application, users can

delete messages that they have sent, on their own device and the recipient’s device as well.

There is no set time limit within

which they must exercise this choice.

A user can elect at any time to delete a message that they previously sent to a recipient’s

application also enables users to hide secret and encrypted messages behind a cover, which messages can only be unlocked by the recipient

and which are automatically destroyed after a fixed number of views or fixed amount of time.

Users can decide how long their messages

last on the recipient’s device.

The application also includes a screen shot protection system, which makes it virtually impossible

for the recipient to screenshot a message or picture before it gets destroyed.

In addition, users can delete entire conversations at

any time, making it like the conversation never even happened.

addition to the foregoing, the application also provides users with the ability to connect via an encrypted live video chat that also

is designed to prevent screenshots or screen grabs.

The application integrates with iMessage, making private messages potentially available

to hundreds of millions of users.

June 2022, we formed a wholly owned subsidiary, Dragon Interactive, Inc.

(formerly, SmarterVerse, Inc.) (“Dragon Interactive”).

In July 2022, Dragon Interactive entered into a development agreement with MetaBizz, LLC, an infrastructure firm that creates and develops

4D experiences in the metaverse (“MetaBizz”).

In August 2022, we launched the “Habytat”, a virtual space that

blends real world and virtual realities into one, in real time, using emerging technology like virtual and augmented reality, to create

a highly immersive 3D environment.

Habytat is supported by proprietary artificial intelligence (“AI”) and utilizes a machine

learning engine to develop more realistic looking content, daily rewards, games, and new utilities that are designed to further enhance

the user experience in an engaging way.

Our goal is to leverage our patents and develop new technology that leads to more people joining

and seeing the value in the metaverse.

The development agreement with MetaBizz is no longer active.

Habytat user is granted user rights to use a designated piece of virtual property in Geniuz City, the first world within Habytat, through

the minting and issuance of a unique NFT.

NFTs (or non-fungible tokens) are digital assets that can represent a unique real-world asset,

such as art, music, in-game items, videos, or a piece of real estate or virtual property.

Users will initially be able to choose the

style of house they want, then start customizing it to represent their personal style and taste.

Users will then be able to accumulate

reward points when they visit and interact with such virtual property or invite others to join The Habytat, and such rewards can be used

to enhance, expand, and improve the virtual property.

In addition, we plan to offer users the ability

to have their own pets in the Habytat, which they will need to care for and can train to follow basic obedience commands.

described below, we plan to integrate our VenVūū, platform and VenVūū, dynamic NFTs (collectively, VenVūū,”)

into The Habytat, and that such integration will enable us and users to generate advertising-based revenues in The Habytat.

We are currently developing VenVūū,

an advertising and NFT monetization platform.

VenVūū is based upon a proprietary metaverse ad network and dynamic NFT technology

which we believe will allow advertisers and landowners to connect in the metaverse.

Management believes that metaverse advertising parallels

reality,.and that VenVūū can be considered as a parallel to billboards in the real world or “Google Ads” within

the internet.

Through the integration of VenVūū, which advertises in a way similar to a billboard or video screen, we plan

to enable users of The Habytat opportunities to monetize their virtual property rights by directly displaying approved advertisements

on their virtual property.

While we currently plan to launch VenVuu in the Habytat, it may also by interoperable within other metaverses

in the future We believe that these features can potentially provide brands with the ability to run campaigns that target the land parcels

they want to reach, simultaneously across multiple metaverses.

DatChat Messenger & Private Social Network

The current market for mobile messenger applications

is highly competitive, and we expect that it will remain competitive.

There are currently several large companies that provide mobile

messenger applications and we expect several more competitors to enter into this market in the next few years.

Well-established competitors

include Snapchat, WhatsApp, Facebook Messenger, Facebook, Telegram, MeWe, Confide and Apple iMessage.

We believe that it is the range

of privacy and security features that we offer that sets us apart from our competitors.

Our flagship applications are the DatChat Privacy

Platform and Private Encrypted Social Network, which address the needs of consumers and businesses to communicate with increased levels

of privacy and control over messages and social posts, even after they are sent or shared.

In addition, we are developing a blockchain-based,

decentralized communications platform that is being designed to allow consumers and businesses to connect directly with each other.

Observing that mobile messaging and social media

users are drawn to several different messaging platforms by specific capabilities, we set out to create the application to consolidate

popular messaging and social media features such as group chats, emoticons and video sharing, offer new and unique features such as being

able to “nuke” a conversation to remove all traces of it from all parties involved, and deliver increased levels of privacy

and security.

As public concerns over privacy in an ever-expanding digital society grow, the application offers comfort to its users with

extensive control over their messages and posts, even after they are sent or shared.

The application allows users to not only control

how long or how many times a message or post may be viewed by the recipient, but also allows the sender to erase the message or entire

conversation after it is sent.

Our goal is to make the application a leader in the mobile secure messaging and social media market based

upon our proprietary technology and enhanced privacy and security features.

We intend to roll out additional features including video

chat, attachments, unique social posts and other features to enhance the messaging and social media experience.

Software and Development

DatChat Messenger & Private Social Network

Our ability to compete depends in large part on

our continuous commitment to research and development, our ability to rapidly introduce new features and functionality and our ability

to improve proven applications for established markets in which we have competitive advantages.

We intend to work closely with our customers

to continuously enhance the performance, functionality, usability, reliability and flexibility of the application.

Our software and development team is responsible

for the design enhancements, development, testing and certification of the application.

In addition, we may, in the future, utilize third

parties for our automated testing, managed upgrades, software development and other technology services.

We are also developing video

messages and video messages containing hidden messages embedded in the video stream.

We anticipate that the video messaging currently

under development will allow users to change the number of views allowed or destruct the message after being sent, in addition to setting

the message to auto-self-destruct.

We are also in the process of developing a private and encrypted social wall/network.

The Habytat and VenVūū

Our software and development is led by our Head

of Business Development, Gianfranco Lopane and SmaterVerse’s Chief Innovation Officer, Rene J.

Palacio Mongui, Chief Technology

Officer, Mark Mathis, and Chief Operating Officer, Ingrith Gartner Salazar.

The software and development team is responsible for the engineering,

development, design, integration and testing of The Habytat metaverse and the VenVūū dynamic content NFT technology.

Marketing and Monetization

DatChat Messenger & Private Social Network

The application is currently offered for

free on Apple’s App Store and Google Play.

Initial marketing is expected to consist of public relations, “cost-per-install”

campaigns, social media marketing using the Facebook’s ad platform and other readily available advertising platforms.

We anticipate utilizing social influencers and

additional public relations strategies to promote the application on a global basis, which also includes making the application available

for use in other languages.

We also plan to add in-app purchases such as user

customization features, unique emoticons, stickers and long form video messages to monetize the application.

We anticipate monetizing the application with

a subscription-based service for small and medium size businesses.

In the future, we may develop other mobile applications and services

for consumers once our user base reaches a level at which we deem it to be economically feasible.

No assurance can be given that we will

successfully develop new or future applications that will be embraced by users or generate revenue.

The Habytat and VenVūū

We have entered into strategic alliances with

House of Kibba’s Project Origin metaverse, Yakushima Corp.’s Yakuverse, AVTR Studios Taipei’s metaverse, and ZOAN’s Cornerstone.land

metaverse to integrate the VenVūū NFT monetization platform and The Habytat.

We anticipate that each strategic alliance will

mutually benefit from the cross-promotion of each other’s platforms and products.

Additionally, MetaBizz will contribute over twenty engineers

and designers based in both North and South America.

Intellectual Property Portfolio

DatChat Messenger & Private Social Network

We strive to protect and enhance the proprietary

technology and inventions that are commercially important to our business, including seeking, maintaining and defending patent rights.

Our policy is to seek to protect our proprietary position through a combination of intellectual property rights in the United States,

including patents, trademarks, copyrights, trade secret laws and internal procedures.

Our commercial success will depend in part on our

ability to protect our intellectual property and proprietary technologies.

Geniuz City is designed to be a near photo-realistic world based on Miami’s Wynwood arts district

and its surrounding areas.

Geniuz City enables users to visit art galleries, explore the town, interact with other users, take selfies

with famous landmarks, customize their properties and enjoy the culture of Geniuz City.

will be able to customize their virtual property to represent their personal style and taste.

Users will then be able to accumulate reward

points when they visit and interact with such virtual property or invite others to join Habytat, and such rewards can be used to enhance,

expand, and improve their virtual property.

The official in-world currency of Habytat is the “Nirad,” which can be earned

through participation on the DatChat Social Network+ or the Habytat and used to upgrade properties and experiences in Habytat.

of March 28, 2024, we had over 140,000 Habytat users.

May 2023, we launched the open mobile metaverse, Habytat 1.0, as part of our mission to democratize access to the metaverse.

that by making Habytat available via mobile devices and offering free ownership of virtual land and homes, that Habytat will break down

obstacles that previously limited participation, such as the necessity for expensive virtual reality (“VR”) gear or metaverse

We have assembled a team of over twenty game developers, graphic artists and back-end developers to create Habytat 1.0.

August 2023, we launched a series of novel AI-powered pets called “HabyPets.” HabyPets provides an interactive experience

within the Habytat world, creating a more immersive and personal experience for users.

Supported by Habytat’s proprietary AI and machine

learning engine, HabyPets grow over time from playful companions to mature adult pets.

Similar to real-life pets, these AI pets can be

trained by users via a range of behavioral commands, replicating the natural progression of real pets over time.

These include, but are

not limited to, catching frisbees, playing with toys, engaging in tug of war, and even participating in thrilling races with other pets

By actively engaging with their pets, users can establish a connection and provide proper care for their virtual companions,

fostering a realistic experience within the Habytat metaverse.

are currently developing “Myseum,” a platform that will allow users to create a personal museum designed to easily share

pictures, videos and documents utilizing planned features, such as creating instant sharing spaces at family gatherings, time released

video messages, multi-tiered social media, and secure family document storage and sharing.

Currently, Myseum is scheduled to launch in

the second quarter of 2024 and will encompass features and social networking technology designed to unlock and share digital media.

and Name Change

In January 2024, we announced plans to spin-off the

Habytat platform business into a new standalone public company pursuant to a distribution as further discussed below.

As of the date of

this Annual Report, we currently own approximately 71.5% of Dragon Interactive, the entity that owns and operates the Habytat Platform

This marked a significant step forward in our corporate strategy to reposition the Company as a pureplay social media ecosystem

centered around our Myseum assets.

In February 2024, Darin Myman was appointed as President

of SmarterVerse.

In February 2024, SmarterVerse changed its name to

Dragon Interactive Corporation.

If the distribution proceeds, our shareholders will

maintain their current shares in the Company and receive a pro-rata distribution of a portion of our shares of Dragon Interactive.

proposed distribution remains subject to approval by our board of directors as well as other customary conditions, including the filing

and effectiveness of either a Form S-1 or Form 10 registration statement with the U.S.

Securities and Exchange Commission and obtaining

of any other required regulatory approvals.

Upon consummation of the proposed distribution, Dragon Interactive would become a standalone

public company with plans seek a listing on a national stock exchange.

No assurance can be given that the spin-off and/or the distribution

will occur as anticipated or at all.

Messenger & Private Social Network

current market for mobile messenger applications is highly competitive, and we expect that it will remain competitive.

There are currently

several large companies that provide mobile messenger applications and we expect several more competitors to enter into this market in

the next few years.

Well-established competitors include Snapchat, WhatsApp, Facebook Messenger, Facebook, Telegram, MeWe, Confide and

Apple iMessage.

We believe that it is the range of privacy and security features that we offer that sets us apart from our competitors.

flagship applications are the DatChat Privacy Platform and Private Encrypted Social Network, which address the needs of consumers and

businesses to communicate with increased levels of privacy and control over messages and social posts, even after they are sent or shared.

In addition, we are developing a blockchain-based, decentralized communications platform that is being designed to allow consumers and

businesses to connect directly with each other.

that mobile messaging and social media users are drawn to several different messaging platforms by specific capabilities, we set out

to create the application to consolidate popular messaging and social media features such as group chats, emoticons and video sharing,

offer new and unique features such as being able to “nuke” a conversation to remove all traces of it from all parties involved,

and deliver increased levels of privacy and security.

As public concerns over privacy in an ever-expanding digital society grow, the

application offers comfort to its users with extensive control over their messages and posts, even after they are sent or shared.

application allows users to not only control how long or how many times a message or post may be viewed by the recipient, but also allows

the sender to erase the message or entire conversation after it is sent.

Our goal is to make the application a leader in the mobile secure

messaging and social media market based upon our proprietary technology and enhanced privacy and security features.

We intend to roll

out additional features including video chat, attachments, unique social posts and other features to enhance the messaging and social

media experience.

and Development

Messenger & Private Social Network

ability to compete depends in large part on our continuous commitment to research and development, our ability to rapidly introduce new

features and functionality and our ability to improve proven applications for established markets in which we have competitive advantages.

We intend to work closely with our customers to continuously enhance the performance, functionality, usability, reliability and flexibility

of the application.

software and development team is responsible for the design enhancements, development, testing and certification of the application.

In addition, we may, in the future, utilize third parties for our automated testing, managed upgrades, software development and other

technology services.

We are also developing video messages and video messages containing hidden messages embedded in the video stream.

We anticipate that the video messaging currently under development will allow users to change the number of views allowed or destruct

the message after being sent, in addition to setting the message to auto-self-destruct.

We are also in the process of developing a private

and encrypted social wall/network.

software and development is led by SmarterVerse’s Chief Technology Officer, Rene J.

Palacio Mongui, and Chief Operating Officer,

Ingrith Gartner Salazar.

The software and development team is responsible for the engineering, development, design, integration and testing

of the Habytat metaverse and the HabyPets AI platform.

and Monetization

Messenger & Private Social Network

application is currently offered for free on Apple’s App Store and Google Play.

Initial marketing is expected to consist of

public relations, “cost-per-install” campaigns, social media marketing using the Facebook’s ad platform and other readily

available advertising platforms.

anticipate utilizing social influencers and additional public relations strategies to promote the application on a global basis,

which also includes making the application available for use in other languages.

also plan to add in-app purchases such as user customization features, unique emoticons, stickers and long form video messages to monetize the

anticipate monetizing the application with a subscription-based service for small and medium size businesses.

In the future,

we may develop other mobile applications and services for consumers once our user base reaches a level at which we deem it to be economically

No assurance can be given that we will successfully develop new or future applications that will be embraced by users or generate

Property Portfolio

Messenger & Private Social Network

strive to protect and enhance the proprietary technology and inventions that are commercially important to our business, including seeking,

maintaining and defending patent rights.

Our policy is to seek to protect our proprietary position through a combination of intellectual

property rights in the United States, including patents, trademarks, copyrights, trade secret laws and internal procedures.

Our commercial

success will depend in part on our ability to protect our intellectual property and proprietary technologies.

As of March 28, 2024, we had 11 issued patents,

0 notices of allowance and 0 filed patent applications in the United States relating to our encryption technologies and blockchain platform.

no notices of allowance and 3 filed patent applications in the United States relating to our encryption technologies, blockchain platform

and digital assets.

Our issued patents will expire in 2036.

In addition, we plan to continue expanding and strengthening our IP portfolio with additional

patent applications in the future.

We may not be able to obtain protection for our intellectual property, and our existing and future

patents, trademarks, and other intellectual property rights may not provide us with competitive advantages or distinguish our products

and services from those of our competitors.

Our pending patent application and future applications may not result in the issuance of patents,

and any resulting issued patents may have claims narrower than those in our patent applications.

Additionally, our current and future

patents, trademarks, and other intellectual property rights may be contested, circumvented, or found unenforceable or invalid, and we

may not be able to prevent third parties from infringing them.

Our internal controls may not always be effective at preventing unauthorized

parties from obtaining our intellectual property and proprietary technologies.

Other companies that own patents, copyrights,

trademarks, trade secrets, and other intellectual property rights related to the mobile, encryption, blockchain, communication, privacy,

internet, and other technology-related industries frequently enter into litigation based on allegations of infringement, misappropriation,

and other violations of intellectual property or other rights.

Third parties, including our competitors, may make claims from time to

time that we have infringed their patents, trademarks, copyrights, trade secrets, or other intellectual property rights.

As our business

grows and competition rises, the risk of facing claims related to intellectual property and litigation matters will likely increase.

Our Privacy Policy

Privacy and security are the foundations of our

We recognize that this is why users are drawn to the application and that our users care deeply about how their personal information

is collected, used and shared.

When you read our Privacy Policy, we hope that you notice that it has been written to advance our core

principles and protect the integrity of the application.

When users sign up for the application, they are

required to provide us with certain personal information such as their name, email address and phone number.

We take commercially reasonable

and appropriate measures to protect this personal information from accidental loss, misuse, and unauthorized access, disclosure, alteration,

or destruction, taking into account the risks involved in processing and the nature of such data, and comply with applicable laws and

We do not currently transfer any personal information to third-parties that do not act on our behalf, and we will not do

so without users’ opt-in consent.

Similarly, we do not currently collect sensitive personal information from users without opt-in

We may disclose personal information to certain types of third-party companies, but only to the extent needed to enable them

to provide such services.

The types of companies that may receive personal information and their functions are:

marketing assistance,

analytics and reporting, customer support, email and SMS delivery, cloud infrastructure, and systems monitoring.

All such third parties

function as our agents, performing services at our instruction and on our behalf pursuant to contracts which require them to provide at

least the same level of privacy protection as is required by our Privacy Policy.

In addition, we may be required to disclose personal

information in response to lawful requests by public authorities, including for the purpose of meeting national security or law enforcement

requirements.

We may also disclose personal information to other third parties when compelled to do so by government authorities or required

by law or regulation including, but not limited to, in response to court orders and subpoenas.

With respect to retention of personal information,

we may only retain such users’ personal information in a form that identifies them only for as long as it serves the purpose(s)

for which it was initially collected as stated in our Privacy Policy, or subsequently authorized.

We may continue processing users’

personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of statistical

analysis, and subject to the protection of our Privacy Policy.

After such time periods have expired, we may either delete the personal

information or retain it in a form such that it does not identify the user personally.

Most importantly, when users send an encrypted

message through the application, we may only temporarily process and store the message in its encrypted form.

We do not (and cannot) read

our users’ encrypted messages and we delete our users’ messages as soon as they have been successfully self-destructed or

Our end-to-end encryption ensures that we will never have access to the contents of our users’ messages.

Moreover, we recognize

the privacy rights of our users and are committed to complying with data protection laws to the extent they apply to us, and to assist

our users in exercising their rights under applicable law.

For example, users may exercise their rights pursuant to the EU General Data

Protection Regulation (“GDPR”) or Section 1798.83 of the California Civil Code, simply by submitting a request via email to

privacy@DatChat.com.

As of March 27, 2023, we have a total of 15 full-time

employees and 1 consultant.

We are not a party to any collective bargaining agreements.

We believe that we maintain good relations with

our employees.

Our Corporate Information

DatChat, Inc.

was initially incorporated in Nevada

on December 4, 2014 under the name YssUp, Inc.

On March 4, 2015, an amendment to our articles of incorporation was filed with the Nevada

Secretary of State, changing YssUp, Inc.’s name to “DatChat, Inc.” On September 22, 2016, amended and restated articles

of incorporation were filed with the Nevada Secretary of State in order to, among other things, authorize the Company to issue preferred

Available Information

Our website address is www.datchat.com.

contents of, or information accessible through, our website are not part of this Annual Report on Form 10-K, and our website address is

included in this document as an inactive textual reference only.

We make our filings with the U.S.

Securities and Exchange Commission

(“SEC”), including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments

to those reports, available free of charge on our website as soon as reasonably practicable after we file such reports with, or furnish

such reports to, the SEC.

The public may read and copy the materials we file with the SEC at the SEC’s Public Reference Room at

100 F Street, NE, Washington, DC 20549.

The public may obtain information on the operation of the Public Reference Room by calling the

SEC at 1-800-SEC-0330.

Additionally, the SEC maintains an internet site that contains reports, proxy and information statements and other

In addition, we plan to continue expanding and strengthening our IP portfolio

with additional patent applications in the future.

We may not be able to obtain protection for our intellectual property, and our existing

and future patents, trademarks, and other intellectual property rights may not provide us with competitive advantages or distinguish our

products and services from those of our competitors.

Our pending patent application and future applications may not result in the issuance

of patents, and any resulting issued patents may have claims narrower than those in our patent applications.

Additionally, our current

and future patents, trademarks, and other intellectual property rights may be contested, circumvented, or found unenforceable or invalid,

and we may not be able to prevent third parties from infringing them.

Our internal controls may not always be effective at preventing

unauthorized parties from obtaining our intellectual property and proprietary technologies.

companies that own patents, copyrights, trademarks, trade secrets, and other intellectual property rights related to the mobile, encryption,

blockchain, communication, privacy, internet, and other technology-related industries frequently enter into litigation based on allegations

of infringement, misappropriation, and other violations of intellectual property or other rights.

Third parties, including our competitors,

may make claims from time to time that we have infringed their patents, trademarks, copyrights, trade secrets, or other intellectual

property rights.

As our business grows and competition rises, the risk of facing claims related to intellectual property and litigation

matters will likely increase.

and security are the foundations of our Company.

We recognize that this is why users are drawn to the application and that our users

care deeply about how their personal information is collected, used and shared.

When you read our Privacy Policy, we hope that you notice

that it has been written to advance our core principles and protect the integrity of the application.

users sign up for the application, they are required to provide us with certain personal information such as their name, email address

and phone number.

We take commercially reasonable and appropriate measures to protect this personal information from accidental loss,

misuse, and unauthorized access, disclosure, alteration, or destruction, taking into account the risks involved in processing and the

nature of such data, and comply with applicable laws and regulations.

We do not currently transfer any personal information to third-parties

that do not act on our behalf, and we will not do so without users’ opt-in consent.

Similarly, we do not currently collect sensitive

personal information from users without opt-in consent.

We may disclose personal information to certain types of third-party companies,

but only to the extent needed to enable them to provide such services.

The types of companies that may receive personal information and

their functions are:

marketing assistance, analytics and reporting, customer support, email and SMS delivery, cloud infrastructure, and

systems monitoring.

All such third parties function as our agents, performing services at our instruction and on our behalf pursuant

to contracts which require them to provide at least the same level of privacy protection as is required by our Privacy Policy.

we may be required to disclose personal information in response to lawful requests by public authorities, including for the purpose of

meeting national security or law enforcement requirements.

We may also disclose personal information to other third parties when compelled

to do so by government authorities or required by law or regulation including, but not limited to, in response to court orders and subpoenas.

respect to retention of personal information, we may only retain such users’ personal information in a form that identifies them

only for as long as it serves the purpose(s) for which it was initially collected as stated in our Privacy Policy, or subsequently authorized.

We may continue processing users’ personal information for longer periods, but only for the time and to the extent such processing

reasonably serves the purposes of statistical analysis, and subject to the protection of our Privacy Policy.

After such time periods

have expired, we may either delete the personal information or retain it in a form such that it does not identify the user personally.

importantly, when users send an encrypted message through the application, we may only temporarily process and store the message in its

encrypted form.

We do not (and cannot) read our users’ encrypted messages and we delete our users’ messages as soon as they

have been successfully self-destructed or deleted.

Our end-to-end encryption ensures that we will never have access to the contents of

our users’ messages.

Moreover, we recognize the privacy rights of our users and are committed to complying with data protection

laws to the extent they apply to us, and to assist our users in exercising their rights under applicable law.

For example, users may

exercise their rights pursuant to the EU General Data Protection Regulation (“GDPR”) or Section 1798.83 of the California

Civil Code, simply by submitting a request via email to privacy@DatChat.com.

of March 28, 2024, we have a total of 12 full-time employees.

We have established a network of external professionals and consultants

to which we outsource various research and development and operational tasks in an effort to minimize administrative overhead.

not a party to any collective bargaining agreements.

We believe that we maintain good relations with our employees.

Corporate Information

was initially incorporated in Nevada on December 4, 2014 under the name YssUp, Inc.

On March 4, 2015, an amendment to our articles

of incorporation was filed with the Nevada Secretary of State, changing YssUp, Inc.’s name to “DatChat, Inc.” On September

22, 2016, amended and restated articles of incorporation were filed with the Nevada Secretary of State in order to, among other things,

authorize the Company to issue preferred stock.

website address is www.datchat.com.

The contents of, or information accessible through, our website are not part of this Annual

Report on Form 10-K, and our website address is included in this document as an inactive textual reference only.

We make our filings

with the U.S.

Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K, Quarterly Reports on

Form 10-Q, Current Reports on Form 8-K and all amendments to those reports, available free of charge on our website as soon as reasonably

practicable after we file such reports with, or furnish such reports to, the SEC.

The public may read and copy the materials we file

with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549.

The public may obtain information on

the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

Additionally, the SEC maintains an internet site that

contains reports, proxy and information statements and other information.

The address of the SEC’s website is www.sec.gov.

The information contained in the SEC’s website is not intended

to be a part of this filing.

The information contained in the SEC’s website is not intended to be a part of this filing.

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 1. Business