The following discussion highlights the principal factors that have affected our financial condition and results of operations as well as our liquidity and capital resources for the periods described. This discussion should be read in conjunction with our Consolidated Financial Statements and the related notes included in Item 8 of this Form 10-K. This discussion contains forward-looking statements. Please see the explanatory note concerning "Forward-Looking Statements" in Part I of this Annual Report on Form 10-K and Item 1A. Risk Factors for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements.

Results of Operations for the years ended December 31, 2020 and 2019





Revenues

In August 2020 the Company successfully launched the Coro mobile payment application on a commercial basis. The Coro app is available for users to download in the Apple Store and Google Play. The Company generated nominal transaction revenues of $694 during the year ended December 31, 2020.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the year ended December 31, 2020 were $4,269,390, an increase of $433,842 or approximately 10% compared to selling, general and administrative expenses of $3,835,548 for the year ended December 31, 2019. The increase in expense was mainly attributable to higher legal, professional and consulting fees during the year ended December 31, 2020. In addition, during the year ended December 31, 2020 the Company incurred advertising costs of $295,538 compared to $8,994 for the year ended December 31, 2019, as the Company prepared to launch its CORO product. This was partially offset by a decrease in stock compensation due to consulting fees of $1,300,163 to $1,417,128 for the year ended December 31, 2020 from stock compensation expense of $2,717,291 for the year ended December 31, 2019.





Development Expense

Development expenses for the year ended December 31, 2020 were $1,084,705 compared to $997,620 for the year ended December 31, 2019. We incurred higher development expenses, including fees paid to vendors, for our CORO product during the year ended December 31, 2020 compared to the year ended December 31, 2019 as we expanded development of our CORO product.





Interest Expense

Interest expense on debentures for the years ended December 31, 2020 and 2019, were $165,000 and $17,211, respectively. Interest expense during the year ended December 31, 2020 included the expense for issuing 33,000 shares of common stock valued at $165,000 for the extension of a loan to a then-related party.





Net Loss

For the reasons stated above, our net loss for the year ended December 31, 2020 was ($5,518,401) or ($0.20) per share, an increase of $668,022 or 12%, compared to net loss of ($4,850,379), or ($0.21) per share, for the year ended December 31, 2019.





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Liquidity and Capital Resources

As of December 31, 2020, we had cash of $735,547, compared to cash of $470,800 as of December 31, 2019. Net cash used in operating activities for the year ended December 31, 2020 was $3,238,165. Our current liabilities as of December 31, 2020 of $685,751 consisted of: $534,223 for accounts payable and due to customers of $151,528.

Net cash used in investing activities for the year ended December 31, 2020 was $2,506 compared to $0 for the year ended December 31, 2019. During the year ended December 31, 2020 the Company purchased office equipment.

During the year ended December 31, 2020 we entered into and closed subscription agreements with accredited investors pursuant to which we sold to the investors an aggregate of 737,000 shares of common stock, for a purchase price of $5.00 per share, and aggregate gross proceeds of $3,685,000. We repaid $180,382 of outstanding principal of a note payable from a then-related party. The balance at December 31, 2020 was $0. During the year ended December 31, 2019 we entered into and closed subscription agreements with accredited investors pursuant to which the Company sold to the investors an aggregate of 482,000 shares of common stock, for a purchase price of $5.00 per share, and aggregate gross proceeds of $2,410,000.

During the next twelve months, we anticipate that we will incur approximately $5,200,000 of general and administrative expenses in order to execute our current business plan. We also plan to incur significant sales, marketing, research and technical development expenses during the next 12 months. We must obtain additional financing to continue our operations. We may not be able to obtain additional funding on terms that are favorable to us or at all. We may not be able to obtain sufficient funding to continue our operations, or if we do receive funding, to generate adequate revenues in the future or to operate profitably in the future. These conditions raise substantial doubt about our ability to continue as a going concern.

Critical Accounting Policies and Estimates





Revenue Recognition

Effective January 1, 2018, we recognize revenue in accordance with Accounting Standards Codification 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard was effective for the first interim period within annual reporting periods beginning after December 15, 2017, and we adopted the standard using the modified retrospective approach effective January 1, 2018. The adoption of this guidance did not have a material impact on our financial statements.





Stock-Based Compensation

We account for all compensation related to stock; options or warrants using a fair value-based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. We use the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.





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Recently Issued Accounting Pronouncements

There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on our financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases, which amended current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. This standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this ASU did not have a material impact on our balance sheet.

Management does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

Off Balance Sheet Arrangements

We currently have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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