<SEC-DOCUMENT>0001013762-16-001303.txt : 20160212
<SEC-HEADER>0001013762-16-001303.hdr.sgml : 20160212
<ACCEPTANCE-DATETIME>20160212160046
ACCESSION NUMBER:		0001013762-16-001303
CONFORMED SUBMISSION TYPE:	DEF 14C
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20160317
FILED AS OF DATE:		20160212
DATE AS OF CHANGE:		20160212
EFFECTIVENESS DATE:		20160212

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FlexShopper, Inc.
		CENTRAL INDEX KEY:			0001397047
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
		IRS NUMBER:				205456087
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14C
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-52589
		FILM NUMBER:		161418716

	BUSINESS ADDRESS:	
		STREET 1:		2700 N. MILITARY TRAIL SUITE 200
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33431
		BUSINESS PHONE:		(561) 367-1504

	MAIL ADDRESS:	
		STREET 1:		2700 N. MILITARY TRAIL SUITE 200
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33431

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Anchor Funding Services, Inc.
		DATE OF NAME CHANGE:	20070419
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14C
<SEQUENCE>1
<FILENAME>def14c021016_flexshopper.htm
<DESCRIPTION>FORM DEF 14C
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt"><B></B></FONT></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.15pt"><B>SCHEDULE
14C &ndash; INFORMATION</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.15pt"><B>Information
Statement Pursuant to Section 14(c) of the Securities Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.15pt"><B>(Amendment
No. )</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt">Check
the appropriate box:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744; <FONT STYLE="letter-spacing: -0.15pt">Preliminary
Information Statement</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744; <FONT STYLE="letter-spacing: -0.15pt">Confidential,
for Use of the Commission Only (as permitted by Rule 14c-5(d)(2))</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9746; <FONT STYLE="letter-spacing: -0.15pt">Definitive
Information Statement</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.15pt">FLEXSHOPPER,
INC.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">(Name
of Registrant As Specified In Charter</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt">Payment
of Filing Fee (</FONT><FONT STYLE="letter-spacing: -0.1pt">Check the appropriate box):</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9746;<FONT STYLE="letter-spacing: -0.15pt">
No fee required.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744; Fee computed on table below
per Exchange Act Rules 14c-5(g) and 0-11..</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">1)&#9;Title of each
class of securities to which transaction applies:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">2)&#9;Aggregate number
of securities to which transaction applies:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt"></FONT></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">3)&#9;Per unit price
or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: (Set forth the amount on which the filing
fee is calculated and state how it was determined):</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">4)&#9;Proposed maximum
aggregate value of transaction:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt"></FONT></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;&nbsp;</FONT><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">5)&#9;Total
fee paid:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;<FONT STYLE="letter-spacing: -0.1pt">&#9;Fee
paid previously with preliminary materials.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&#9744;
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration statement number, or the Form of Schedule and the date of
its filing.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&#9;1)&#9;Amount
Previously Paid: ________________________________________________________</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&#9;2)&#9;Form,
Schedule or Registration Statement No.: ________________________________________</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&#9;3)&#9;Filing
Party: __________________________________________________________________</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&#9;4)&#9;Date
Filed: ___________________________________________________________________</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>FLEXSHOPPER,
INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2700
North Military Trail, Ste. 200</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Boca
Raton, FL 33431</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(561)
419-2923</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">INFORMATION
STATEMENT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">STOCKHOLDER
MAJORITY ACTION BY WRITTEN CONSENT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">IN
LIEU OF AN ACTUAL MEETING ON OR ABOUT MARCH 17, 2016</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>IMPORTANT
NOTICE: </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>THE
COMPANY&rsquo;S INFORMATION STATEMENT CAN BE ACCESSED DIRECTLY AT THE FOLLOWING INTERNET ADDRESS: </B>http://www.cstproxy.com/flexshopper/2016.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the Shareholders:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Notice
is hereby given to all shareholders that the purpose of this Information Statement is to inform the holders of record, as of the
close of business on January 22, 2016 (the &ldquo;Record Date&rdquo;) of shares of Common Stock and shares of Series 1 Preferred
Stock (the &ldquo;Voting Stock&rdquo;), which have the voting power of FlexShopper, Inc., a Delaware corporation (the &ldquo;Company&rdquo;),
that our Board of Directors on February 8, 2016 approved and on or about March 17, 2016, the holders of a majority of our Voting
Stock (collectively the &ldquo;Consenting Stockholders&rdquo;) are expected to ratify, adopt and approve by written consent in
lieu of an actual meeting the following matter (the &ldquo;Proposal&rdquo;):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consider
and vote upon a proposal to grant the Board of Directors discretionary authority to amend the Company&rsquo;s certificate of incorporation
(the &ldquo;RS Amendment&rdquo;) to effectuate a Reverse Stock Split of the Company&rsquo;s Common Stock, $.0001 par value, by
a ratio of no less than one-for-five and no more than one-for-ten with such ratio to be determined by the sole discretion of the
Board (the &ldquo;Reverse Split&rdquo;) and with such Reverse Split to be effective at such time and date, if at all, as determined
by the Board in its sole discretion (the &ldquo;Reverse Split Proposal&rdquo;), it being understood that completing such Reverse
Split may result in us obtaining a listing on The NASDAQ Capital Market.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">WE
ARE NOT ASKING YOU FOR A PROXY, AND YOU ARE REQUESTED NOT TO SEND US A PROXY.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Only
stockholders of record at the close of business on the Record Date are entitled to receipt of this Information Statement. No action
is required by you. The Company Information Statement is furnished only to inform our stockholders of the actions described above
before they take place in accordance with Section 228(a) of the Delaware Corporation Law and Rule 14C of the Securities Exchange
Act of 1934, as amended. This Information is first mailed to you on or about February 17, 2016. Please feel free to call us at
the phone number set forth above should you have any questions on the enclosed Information Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 17%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">For the Board of Directors of FlexShopper, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">February 17, 2016&#9;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Brad Bernstein, Chief Executive Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">THIS INFORMATION STATEMENT IS BEING PROVIDED
TO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">YOU BY THE BOARD OF DIRECTORS OF THE COMPANY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">REQUESTED NOT TO SEND US A PROXY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FLEXSHOPPER, INC.</B></P>

<P STYLE="color: #343434; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2700 North Military Trail,
Ste. 200</B></P>

<P STYLE="color: #343434; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Boca Raton, FL 33431</B></P>

<P STYLE="color: #343434; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="color: #343434; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">February 17, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>COPIES OF COMMUNICATIONS TO:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Morse &amp; Morse, PLLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>1400 Old Country Road, Suite 302</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Westbury, NY 11590</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Phone: 516-487-1446</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fax: 516-487-1452</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ABOUT THIS INFORMATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>What is the purpose of this Information
Statement?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This Information Statement has been filed with
the Securities and Exchange Commission and is being furnished, pursuant to Section 14C of the Securities Exchange Act of 1934,
as amended (the &ldquo;Exchange Act), to the holders (the &ldquo;Stockholders&rdquo;) of the Common Stock and Series 1 Preferred
Stock (collectively the &ldquo;Voting Stock&rdquo;) of FlexShopper, Inc., a Delaware corporation (the &ldquo;Company&rdquo;), to
notify Stockholders that on or about March 17, 2016, the Company anticipates receiving written consents in lieu of an actual meeting
of stockholders from certain holders of at least a majority of the issued and outstanding Voting Stock of the Company to approve
the following Proposal:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Consider and vote upon a proposal to
grant the Board of Directors discretionary authority to amend the Company&rsquo;s certificate of incorporation (the &ldquo;RS Amendment&rdquo;)
to effectuate a Reverse Stock Split of the Company&rsquo;s Common Stock, $.0001 par value, by a ratio of no less than one-for-five
and no more than one-for-ten with such ratio to be determined by the sole discretion of the Board (the &ldquo;Reverse Split&rdquo;)
and with such Reverse Split to be effective at such time and date, if at all, as determined by the Board in its sole discretion
(the &ldquo;Reverse Split Proposal&rdquo;), it being understood that completing such Reverse Split may result in us obtaining a
listing on The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accordingly, your consent is not required and
is not being solicited in connection with the approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are not aware of any substantial interest,
direct or indirect, by security holders or otherwise, that is in opposition to matter of action taken. In addition, pursuant to
the laws of Delaware, the action taken by majority written consent in lieu of an actual meeting does not create appraisal or dissenters&rsquo;
rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our board of directors has determined to pursue
this stockholder action by majority written consent in lieu of an actual meeting in an effort to reduce the costs and management
time required to hold a meeting of stockholders and to implement the above action for our stockholders in a timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The above action will become effective no sooner
than 20 calendar days following the mailing to the Stockholders of this Definitive Information Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Who is entitled to notice?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All holders of shares of
Common Stock and Series 1 Preferred Stock of record on the close of business on January 22, 2016, the Record Date, are entitled
to notice of the Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>On what corporate matters will the principal
stockholders vote?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A total of less than 10
stockholders, who hold 27,055,204 shares of voting capital stock of the Company on the Record Date, representing 50.1% of the outstanding
voting capital stock (i.e. 54,003,587shares) and a majority of the issued and outstanding voting capital stock required to vote
on the Proposal. These stockholders intend to vote in favor of the following proposal:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">Consider and vote
upon a proposal to grant the Board of Directors discretionary authority to amend the Company&rsquo;s certificate of incorporation
(the &ldquo;RS Amendment&rdquo;) to effectuate a Reverse Stock Split of the Company&rsquo;s Common Stock, $.0001 par value, by
a ratio of no less than one-for-five and no more than one-for-ten with such ratio to be determined by the sole discretion of the
Board (the &ldquo;Reverse Split&rdquo;) and with such Reverse Split to be effective at such time and date, if at all, as determined
by the Board in its sole discretion (the &ldquo;Reverse Split Proposal&rdquo;), it being understood that completing such Reverse
Split may result in us obtaining a listing on The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0pt"><B>What vote is required to approve the Proposal?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In order to amend the Certificate
of Incorporation of the Company to approve a reverse stock split of Common Stock by written consent, the affirmative vote of a
majority of the outstanding voting capital stock is required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WE ARE NOT ASKING YOU FOR A PROXY</B></P>

<P STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>AND YOU
ARE REQUESTED NOT TO SEND A PROXY.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&#9;<B>INFORMATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Directors
of FlexShopper, Inc. (&ldquo;FlexShopper&rdquo; or &ldquo;the Company&rdquo;) is furnishing this Information Statement to stockholders
on or about February 17, 2016.</P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Information Statement
is being furnished to the stockholders of the Company in connection with one Proposal, which is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">Consider and vote
upon a proposal to grant the Board of Directors discretionary authority to amend the Company&rsquo;s certificate of incorporation
(the &ldquo;RS Amendment&rdquo;) to effectuate a Reverse Stock Split of the Company&rsquo;s Common Stock, $.0001 par value, by
a ratio of no less than one-for-five and no more than one-for-ten with such ratio to be determined by the sole discretion of the
Board (the &ldquo;Reverse Split&rdquo;) and with such Reverse Split to be effective at such time and date, if at all, as determined
by the Board in its sole discretion (the &ldquo;Reverse Split Proposal&rdquo;), it being understood that completing such Reverse
Split may result in us obtaining a listing on The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has authorized
100,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock. There were outstanding on the Record Date 52,104,081
shares of Common Stock and 328,197 shares of Series 1 Preferred Stock, each of which has the voting right of 5.7877 shares of Common
Stock and together with the outstanding Common Stock are herein referred to as the &ldquo;Voting Stock.&rdquo; The Proposal contained
in the preceding paragraph is expected to be adopted by the written consent of the holders of a majority in interest in the Company&rsquo;s
outstanding Voting Stock and submitted to the Secretary of the Company on or about March 17, 2016 (the &ldquo;Written Consent Effective
Date&rdquo;). If the proposal was not adopted by written consent, it would have been required to be considered by the Company&rsquo;s
stockholders at an annual or special stockholders&rsquo; meeting convened for the specific purpose of approving the proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The elimination of the
need for an annual or special meeting of stockholders to approve the proposal is made possible by Section 228(a) of the Delaware
General Corporation Law (the &ldquo;Delaware Law&rdquo;) which provides that any action required by this chapter to be taken at
any annual or special meeting of such stockholders of a corporation, or any action which may be taken at any annual or special
meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent or consent
in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon
were present and voted and shall be delivered to the corporation by delivery to its registered office in this State, its principal
place of business, or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders
are recorded. In order to eliminate the costs and management time involved in holding an annual or special meeting and in order
to effect the proposal as early as possible in order to accomplish the purposes of the Company, as hereinafter described, the Board
of Directors of the Company voted to utilize the written consent of the holders of a majority in interest of the Company&rsquo;s
outstanding voting capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The date on which this
Information Statement will first be sent to the stockholders is on or about February 17, 2016. The record date established by the
Company for purposes of determining the number of outstanding shares of Voting Stock of the Company is January 22, 2016 (the &ldquo;Record
Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has provided
to its stockholders of record this Information Statement pursuant to Section 228 of the Delaware Law. Following stockholder approval
of the Proposal stated herein, the Company will notify its stockholders in its Form 8-K of the Written Consent Effective Date of
the Proposal. No additional action will be undertaken pursuant to such written consents, and no dissenters&rsquo; rights under
the Delaware Law are afforded to the Company&rsquo;s stockholders as a result of the adoption of the proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OWNERS AND MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of the Record Date,
we have 52,104,081 shares of Common Stock and 328,197 shares of Series&nbsp;1 Preferred Stock issued and outstanding. In this respect,
each one share of Series 1 Preferred Stock has the voting rights of 5.7877 common shares, but is convertible into 6.33 common shares.
Accordingly, the 328,197 shares of Series&nbsp;1 Preferred Stock are convertible into 2,077,487 shares of Common Stock with the
equivalent voting rights of 1,899,506 common shares. The following table sets forth information regarding the economic ownership
of our company Common Stock by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol; font-size: 10pt; line-height: 106%">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">each
of our stockholders who is known by us to beneficially own more than 5% of our Common Stock;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 3pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol; font-size: 10pt; line-height: 106%">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">each
of our executive officers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 3pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol; font-size: 10pt; line-height: 106%">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">each
of our directors; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 3pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol; font-size: 10pt; line-height: 106%">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">all
executive officers and directors as a group.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Beneficial ownership is
determined based on the rules and regulations of the SEC. A person has beneficial ownership of shares if the individual has the
power to vote and/or dispose of shares. This power can be sole or shared, and direct or indirect. In computing the number of shares
beneficially owned by a person and the percentage ownership of that person, shares of Common Stock subject to options held by that
person are counted as outstanding in such cases where the option holder may exercise the options within 60 days of the date hereof.
These shares, however, are not counted as outstanding for the purposes of computing the percentage ownership of any other person.
Except as indicated in the footnotes to the table below, each person named in the table has sole voting and dispositive power with
respect to the shares set forth opposite that person&rsquo;s name. (Note: All addresses of the Company&rsquo;s officers and directors
are c/o FlexShopper, Inc. at 2700 North Military Trail, Ste. 200, Boca Raton, FL 33431.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name and address of Beneficial Owner</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font-family: Courier New, Courier, Monospace; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares of </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Common Stock Beneficially Owned</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font-family: Courier New, Courier, Monospace; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">% of Shares </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">of Common Stock </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially Owned</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 74%; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Morry F. Rubin (1)</FONT></TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="width: 10%; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,979,927</FONT></TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="width: 10%; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.0</FONT></TD>
    <TD STYLE="width: 1%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">George Rubin (1)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,521,927</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.6</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ilissa and Brad Bernstein (2)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,700,000</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.9</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">T. Scott King &nbsp;(3)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">120,000</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carl Pradelli (4)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">307,500</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Philip M. Gitler (5)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">158</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">H. Russell Heiser (6)</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">137,333</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="background-color: white; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marc Malaga (7)</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,263,483</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.1</FONT></TD>
    <TD STYLE="background-color: white; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All officers and directors as a group (seven persons) (8)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,508,901</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25.5</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Buechel Family Ltd Partnership (9)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,644,095</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Buechel Patient Care Research &amp; Education Fund (10)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,294,095</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.4</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Waterfall Asset Management, LLC &nbsp;(11)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,545,455</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28.0</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">*Represents less than 1% of the outstanding shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">(1)</FONT></TD>
    <TD STYLE="width: 2%; font-family: Courier New, Courier, Monospace"></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">Morry
    Rubin&rsquo;s beneficial ownership includes 4,901,259 shares of Common Stock and options/warrants to purchase 1,816,668 shares
    of Common Stock granted to him and&nbsp;262,000 shares in which Morry Rubin&rsquo;s wife and George Rubin are co-trustees
    of certain family trusts. George Rubin&rsquo;s beneficial ownership includes 2,593,259 shares of Common Stock and 262,000
    shares in which Morry Rubin&rsquo;s wife and George Rubin are co-trustees of certain family trusts and warrants to purchase
    666,668 shares.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Of
    the 3,700,000 shares beneficially owned by them, 2,000,000 common are owned by Ilissa Bernstein, Brad Bernstein&rsquo;s wife.
    The remaining 1,700,000 shares represent vested options to purchase a like amount of shares of Common Stock granted to Brad
    Bernstein.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    vested options to purchase 120,000 shares of Common Stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    options to purchase 120,000 shares, 62,500 shares owned in trust and 125,000 shares in a limited liability company owned by
    Mr. Pradelli and his spouse.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(5)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Philip
    M. Gitler has an indirect ownership interest in the Waterfall Eden Master Fund Ltd., which owns 7,882,774 shares of the Issuer.
    His indirect ownership interest equates to approximately 158 shares of the Issuer owned by the fund.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(6)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    104,000 shares of Common Stock and 33,333 vested options.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(7)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    1,915,020 common shares, warrants to purchase 666,668 shares, options to purchase 250,000 shares and 431,795 shares of Common
    Stock issuable upon conversion of 68,214 shares of Series 1 Preferred Stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(8)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    9,108,358 shares of Common Stock, 262,000 shares owned in trust for certain family trusts, 431,795 shares of Common Stock
    issuable upon conversion of 68,214 shares of Series 1 Preferred Stock and all options and warrants (described in (1) through
    (7) above) to purchase an aggregate of 4,706,669 shares.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 4.5pt; font-family: Courier New, Courier, Monospace; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(9)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    1,442,725 shares of Common Stock and 31,812 Preferred shares convertible into 201,370 shares of Common Stock. The Buechel
    Family Ltd Partnership is a Family Partnership, the General Partner of whom is Frederick Buechel. This partnership is being
    shown in the table since it may be deemed to be under common control of Dr. Frederick Buechel, who is also a principal of
    the Buechel Patient Care Research &amp; Education Fund referenced in footnote (10). The address for this investor is c/o Fordham
    Financial Management, Inc., 17 Battery Place South, Suite 643, New York, NY 10004.</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(10)</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Includes
    1,092,725 shares of Common Stock and 31,812 Preferred shares convertible into 201,370 shares of Common Stock. The Buechel
    Patient Care Research &amp; Education Fund is a 501(c)(3) organization, the principals of which are Drs. Frederick Buechel
    Sr. and Jr. and Mr. Mark Buechel. This education fund is being shown in the table since it may be deemed to be under common
    control of Dr. Frederick Buechel who is the general partner referenced in footnote (6) of the Buechel Family Ltd Partnership.
    The address for this investor is c/o Fordham Financial Management, Inc., 17 Battery Place South, Suite 643, New York, NY 10004.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>(11)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Waterfall
    Eden Master Fund, Ltd. owns 7,882,774 shares of Common Stock, or approximately 15.2% of the outstanding shares of Common Stock.
    Waterfall Delta Offshore Master Fund, LP owns 4,420,646 shares of Common Stock, or approximately 8.5% of the outstanding shares
    of Common Stock. Waterfall Delta GP, LLC, as general partner of Waterfall Delta Offshore Master Fund, LP, may be deemed to
    share beneficial ownership of the shares owned by Waterfall Delta Offshore Master Fund, LP. Waterfall Sandstone Fund, LP owns
    2,242,035 shares of Common Stock, or approximately 4.3% of the outstanding shares of Common Stock. Waterfall Sandstone GP,
    LLC, as general partner of Waterfall Sandstone Fund, LP, may be deemed to share beneficial ownership of the shares owned by
    Waterfall Sandstone Fund, LP. Waterfall, as the investment adviser to the Waterfall Funds, and Messrs. Thomas Capasse and
    Jack Ross, as members of Waterfall, may be deemed to share beneficial ownership of the 14,545,455 shares of Common Stock owned
    by the Waterfall Funds, or approximately 28.0% of the outstanding shares of Common Stock. Because of the relationships described
    above, the Reporting Persons may be deemed to constitute a &ldquo;group&rdquo; within the meaning of Rule 13d-5 under the
    Securities Exchange Act of 1934, as amended, and as such, each member of the group could be deemed to beneficially own, in
    the aggregate, all of the shares of Common Stock held by members of the group. The Reporting Persons do not admit that they
    constitute a group within the meaning of Rule 13d-5. Each of the Reporting Persons disclaims beneficial ownership of the shares
    of Common Stock referred to herein that such Reporting Person does not hold directly. Waterfall and Messrs. Thomas Capasse
    and Jack Ross share the power to vote and direct the disposition of the shares owned by the Waterfall Funds. Waterfall Delta
    GP, LLC may be deemed to share the power to vote and direct the disposition of the shares owned by the Waterfall Delta Offshore
    Master Fund, LP, and Waterfall Sandstone GP, LLC may be deemed to share the power to vote and direct the disposition of the
    shares owned by Waterfall Sandstone Fund, LP. The address for each of the Waterfall associated companies is c/o Waterfall
    Management, LLC, 1140 Avenue of the Americas, 7<SUP>th</SUP> Floor, New York, NY 10036. This information has been obtained
    from a Schedule 13-D filed by Waterfall with the SEC on March 15, 2015.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60pt; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION ON CONSENTING STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Company&rsquo;s
By-Laws and Delaware law, a vote by the holders of at least a majority of the Voting Stock is required to effect the action described
herein. As of the Record Date, the Company had 54,003,587 Voting Stock issued and outstanding and entitled to vote. Our Common
Stock is entitled to one vote per share. Our Series 1 Preferred Stock is entitled to 5.7877 votes per share of Common Stock. Morry
F. Rubin (4,901,259 common shares), George Rubin (2,593,259 common shares), George Rubin/Laura Levine Trusts (262,000 common shares),
Illissa Bernstein (2,000,000 common shares), Marc Malaga (1,729,832 common shares individually and 185,188 common shares in the
MK Family Holdings LLC (family trust) and 68,214 preferred shares directly in Mr. Malaga&rsquo;s name with the voting rights of
394,802 shares totaling 2,309,822 voting shares), Waterfall Asset Management, LLC (14,545,455 common shares), and Steven Morse/Barbara
Morse (443,409 common shares) own on the Record Date an aggregate of 27,055,204 shares of record entitled to vote (the &ldquo;Consenting
Stockholders&rdquo;), representing approximately 50.1% of the Voting Stock. The Consenting Stockholders are in favor of the actions
described herein and are expected to take action by majority consent on or about March 17, 2016. No consideration will be paid
for the consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.15pt"><B>PROPOSAL
TO RATIFY, ADOPT AND APPROVE AN AMENDMENT</B></FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.05in"><FONT STYLE="letter-spacing: -0.15pt"><B>TO
THE COMPANY&rsquo;S CERTIFICATE OF INCORPORATION</B></FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.05in"><FONT STYLE="letter-spacing: -0.15pt"><B>AND
THE FILING OF SAID AMENDMENT WITH THE SECRETARY OF</B></FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.05in"><FONT STYLE="letter-spacing: -0.15pt"><B>STATE
OF THE STATE OF DELAWARE</B></FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.05in"><FONT STYLE="letter-spacing: -0.15pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">The
Company's Board of Directors has proposed to ask its majority stockholders to approve an amendment to the Company&rsquo;s Certificate
of Incorporation (the &ldquo;RS Amendment&rdquo;) and the filing of said amendment with the Secretary of State of the State of
Delaware to </FONT>effectuate a Reverse Stock Split of the Company&rsquo;s Common Stock, $.0001 par value, by a ratio of no less
than one-for-five and no more than one-for-ten with such ratio to be determined by the sole discretion of the Board (the &ldquo;Reverse
Split&rdquo;) and with such Reverse Split to be effective at such time and date, if at all, as determined by the Board in its sole
discretion (the &ldquo;Reverse Split Proposal&rdquo;), it being understood that completing such Reverse Split may result in us
obtaining a listing on The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>General</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 8, 2016,
our Board acted by unanimous written consent to adopt the RS Amendment to Article FOURTH of our Certificate of Incorporation effecting
a Reverse Split of our Common Stock at a ratio of not less than one-for-five and no more than one-for-ten with such ratio to be
determined at the sole discretion of the Board and with such Reverse Split to be effected at such time and date, if at all, as
determined by the Board in its sole discretion. The Board is now asking you to approve this RS Amendment. Effecting the Reverse
Split requires that Article FOURTH of our Certificate of Incorporation be amended to include a reference to the Reverse Split.
The additional text added to Article FOURTH is attached as&nbsp;<U>Appendix&nbsp;A</U>&nbsp;to this Information Statement. If approved,
the RS Amendment will be effective upon the filing of the Certificate of Incorporation (or on such date and time as specified therein)
in the form attached as&nbsp;<U>Appendix A</U>&nbsp;with the Secretary of State of the State of Delaware with such filing to occur,
if at all, at the sole discretion of the Board.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Board determines
to effect the Reverse Split, the intent is to increase the stock price of our Common Stock, which is currently trading on the OTCQB,
to a level sufficiently above the minimum bid price requirement that is required for initial listing on The NASDAQ Capital Market.
Upon the Board receiving written or verbal confirmation that The NASDAQ Capital Market will approve our Common Stock for listing
on The NASDAQ Capital Market, subject to compliance with the minimum bid price requirement, the Board intends to file the RS Amendment
with the Secretary of State of the State of Delaware. In attempting to complete the listing requirements of The NASDAQ Capital
Market (and to support operations), the Company may seek to raise additional capital from the sale of its Common Stock.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">One principal effect
of the Reverse Split would be to decrease the number of outstanding shares of our Common Stock. Except for de minimus adjustments
that may result from the treatment of fractional shares as described below, the Reverse Split will not have any dilutive effect
on our stockholders since each stockholder would hold the same percentage of our Common Stock outstanding immediately following
the Reverse Split as such stockholder held immediately prior to the Reverse Split. The relative voting and other rights that accompany
the shares of Common Stock would not be affected by the Reverse Split. The table below sets forth the number of shares of our Common
Stock outstanding before and after the Reverse Split based on 52,104,081 shares of Common Stock outstanding as of the Record Date.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-family: Courier New, Courier, Monospace; text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Prior to the</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Reverse Split</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Assuming a one-for-</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>five Reverse Split</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Assuming a one-for-</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>ten Reverse Split</B></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 23%; text-align: left; vertical-align: bottom"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">Aggregate Number of Shares of Common Stock*</P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"></P></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: center; vertical-align: middle">52,104,081</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: center; vertical-align: middle">10,420,992</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: center; vertical-align: middle">5,210,641</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">_____________</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">*</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The numbers in the table above do not reflect the possible exercise of outstanding
options, warrants and convertible preferred stock which will be proportionately adjusted to give effect to the completion of the
Reverse Stock Split. The post-split shares estimate a specific number of rounded shares.</TD>
</TR></TABLE>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Although the Reverse
Split will not have any dilutive effect on our stockholders, the proportion of shares owned by our stockholders relative to the
number of shares authorized for issuance will decrease because the Reverse Split does not change the current authorized number
of shares of capital stock from 110,000,000 shares, consisting of 100,000,000 shares of Common Stock and 10,000,000 shares of Preferred
Stock. The remaining authorized shares of Common Stock and Preferred Stock may be used for various purposes, including, without
limitation, raising capital, providing equity incentives to employees, officers or directors, effecting stock dividends, establishing
strategic relationships with other companies and/or expanding our business through the acquisition of other businesses or products.
By not reducing the number of authorized shares of Common Stock, the Company will have additional authorized but unissued shares
of Common Stock available for any proper corporate purpose. The Company&rsquo;s 2016 plans contemplate raising additional monies
through the sale of its equity securities in order to support the expansion and growth of the Company&rsquo;s business. As of the
mailing date of this Information Statement, the Company has no specific definitive terms for the issuance of its Common Stock and/or
Preferred Stock to raise capital. Nevertheless, in order to support our projected need for additional capital and to provide flexibility
to raise the capital as necessary, our Board believes the number of authorized shares of Common Stock and Preferred Stock should
remain at 100,000,000 and 10,000,000, respectively. It should be noted that as of the Record Date, the Company has outstanding
328,197 shares of Series 1 Preferred Stock convertible into 2,077,487 shares with each share of Preferred Stock having the voting
right of 5.7877 shares of Common Stock. The conversion rights and voting rights will be appropriately adjusted to give effect to
the completion and effectiveness of the Reverse Stock Split.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Reverse Split
is not part of a broader plan to take us private.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Reasons for the Reverse Split</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Director&rsquo;s
primary objective in proposing the Reverse Split is to enable the Board, if necessary or if the Board otherwise desires, to raise
the per share trading price of our Common Stock, which is currently trading only on the OTCQB, to allow for a listing of our Common
Stock on The NASDAQ Capital Market. Upon receiving stockholder approval, the Board may, at its own discretion, file the RS Amendment
with the Secretary of State of the State of Delaware upon receipt of written or verbal clearance that the Company&rsquo;s Common
Stock has been approved for listing on The NASDAQ Capital Market, subject to compliance with the minimum closing price of at least
$3.00 per share.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board has determined
that by increasing the market price per share of our Common Stock, we would meet the stock price element of the initial listing
requirements of The NASDAQ Capital Market and our Common Stock could be initially listed on The NASDAQ Capital Market if we meet
the other listing and corporate governance requirements of The NASDAQ Capital Market. Our Board concluded that the liquidity and
marketability of our Common Stock may be adversely affected if it is not quoted on a national securities exchange as investors
can find it more difficult to dispose of, or to obtain accurate quotations as to the market value of, our Common Stock. Our Board
believes that current and prospective investors and the brokerage community may view an investment in our Common Stock more favorably
if our Common Stock is quoted on The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board also has
confidence that the Reverse Split and any resulting increase in the per share price of our Common Stock should enhance the acceptability
and marketability of our Common Stock to the financial community and investing public. Many institutional investors have policies
prohibiting them from holding lower-priced stocks in their portfolios, which reduces the number of potential buyers of our Common
Stock, although we have not been told by them that is the reason for not investing in our Common Stock. Additionally, analysts
at many brokerage firms are reluctant to recommend lower-priced stocks to their clients or monitor the activity of lower-priced
stocks. Brokerage houses frequently have internal practices and policies that discourage individual brokers from dealing in lower-priced
stocks. Further, because brokers&rsquo; commissions on lower-priced stock generally represent a higher percentage of the stock
price than commissions on higher priced stock, investors in lower-priced stocks pay transaction costs which are a higher percentage
of their total share value, which may limit the willingness of individual investors and institutions to purchase our Common Stock.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We cannot assure you
that the Board will ultimately determine to effect the Reverse Split or if effected, that the Reverse Split will have any of the
desired effects described above. More specifically, we cannot assure you that after the Reverse Split the market price of our Common
Stock will increase proportionately to reflect the ratio for the Reverse Split, that the market price of our Common Stock will
not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization before the Reverse
Split, or that we will be initially listed on The NASDAQ Capital Market, or once initially listed, that we will be able to maintain
such listing.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Requirements for Listing on Exchanges</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In order to initially
list our Common Stock on The NASDAQ Capital Market, among other requirements which have or will all be satisfied, our Common Stock
must maintain a minimum closing price of at least $3.00. Our Board has considered the potential advantages to us if our Common
Stock is listed on The NASDAQ Capital Market and has concluded that even though the desired effects cannot be assured, it is in
the best interests of our Company and our stockholders to effect the Reverse Split to help attain a $3.00 bid or closing price
and ensure compliance with the listing requirements of The NASDAQ Capital Market.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Potential Disadvantages of the Reverse
Split</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As noted above, the
principal purpose of the Reverse Split would be to help increase the per share market price of our Common Stock by up to factor
of ten. We cannot assure you, however, that the Reverse Split will accomplish this objective for any meaningful period of time.
While we expect that the reduction in the number of outstanding shares of Common Stock will increase the market price of our Common
Stock, we cannot assure you that the Reverse Split will increase the market price of our Common Stock by an equivalent multiple,
or result in any permanent increase in the market price of our Common Stock. The price of our Common Stock is dependent upon many
factors, including our business and financial performance, general market conditions and prospects for future success. If the per
share market price does not increase proportionately as a result of the Reverse Split, then the value of our Company as measured
by our stock capitalization will be reduced, perhaps significantly.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The number of shares
held by each individual stockholder would be reduced if the Reverse Split is implemented. This will increase the number of stockholders
who hold less than a &ldquo;round lot,&rdquo; or 100 shares. This has two disadvantages. First, The NASDAQ Capital Market requires
that we have at least 300 round lot stockholders. Second, the transaction costs to stockholders selling &ldquo;odd lots&rdquo;
are typically higher on a per share basis. Consequently, the Reverse Split could increase the transaction costs to existing stockholders
in the event they wish to sell all or a portion of their position.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Although our Board
believes that the decrease in the number of shares of our Common Stock outstanding as a consequence of the Reverse Split and the
anticipated increase in the market price of our Common Stock could encourage interest in our Common Stock and possibly promote
greater liquidity for our stockholders, such liquidity could also be adversely affected by the reduced number of shares outstanding
after the Reverse Split.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Effecting the Reverse Split</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon receipt of stockholder
approval for the RS Amendment, if our Board concludes that it is in the best interests of our Company and our stockholders to effect
the Reverse Split, the RS Amendment will be filed with the Secretary of State of the State of Delaware. The actual timing of the
filing of the Amendment with the Secretary of State of the State of Delaware to effect the Reverse Split will be determined by
our Board upon written or verbal clearance that our Common Stock has been approved for trading on The NASDAQ Capital Market, subject
to compliance with the minimum closing price of at least $3.00 per share for an estimated trading period of between five and ten
trading days. In addition, if for any reason our Board deems it advisable to do so, the Reverse Split may be abandoned at any time
prior to the filing of the Amendment, without further action by our stockholders. The Reverse Split will be effective as of the
date of filing with the Secretary of State of the State of Delaware or at such time and date as specified in the Certificate of
Amendment (the &ldquo;<B>Effective Time</B>&rdquo;).</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon the filing of
the RS Amendment, without further action on our part or our stockholders, the outstanding shares of Common Stock held by stockholders
of record as of the Effective Time would be converted into a lesser number of shares of Common Stock based on a Reverse Split ratio
as determined by the Board. For example, if you presently hold 300 shares of our Common Stock, you would hold 60 shares of our
Common Stock following the Reverse Split if the ratio is one-for-five or you would hold 30 shares of our Common Stock if the ratio
is one-for-ten.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Effect on Outstanding Shares, Options
and Certain Other Securities</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Reverse Split
is implemented, the number of shares our Common Stock owned by each stockholder will be reduced in the same proportion as the reduction
in the total number of shares outstanding, such that the percentage of our Common Stock owned by each stockholder will remain unchanged
except for any de minimus change resulting from rounding up to the nearest number of whole shares so that we are not obligated
to issue cash in lieu of any fractional shares that such stockholder would have received as a result of the Reverse Split. The
number of shares of our Common Stock that may be purchased upon exercise of outstanding options or other securities convertible
into, or exercisable or exchangeable for, shares of our Common Stock, and the exercise or conversion prices for these securities,
will also be ratably adjusted in accordance with their terms as of the Effective Time.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Courier New, Courier, Monospace; text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Prior to the</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Reverse Split</B></P> <P STYLE="font: 10pt/12pt Courier; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Assuming a one-for-</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>five Reverse Split</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Assuming a one-for-</B></P> <P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>ten Reverse Split</B></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify; padding-left: 5.4pt">Warrants</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">5,115,531</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,023,106</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">551,553</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,047,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">809,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">404,700</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Convertible Preferred</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">328,197</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,855</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt/12pt Courier; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Effect on Registration and Stock Trading</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Common Stock is
currently registered under Section 12(g) of the Exchange Act and we are subject to the periodic reporting and other requirements
of the Exchange Act. If our Common Stock becomes listed on an Exchange, we file a short form registration statement for our Common
Stock to be registered under Section 12(b) of the Exchange Act.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the proposed Reverse
Split is implemented and our application for initial listing is otherwise accepted on The NASDAQ Capital Market, we may request
that our Common Stock be initially listed under a new trading symbol.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Fractional Shares; Exchange of Stock Certificates</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board does not
currently intend to issue fractional shares in connection with the Reverse Split. Therefore, we do not expect to issue certificates
representing fractional shares. In lieu of any fractional shares, we will issue to stockholders of record who would otherwise hold
a fractional share because the number of shares of Common Stock they hold before the Reverse Split is not evenly divisible by the
Reverse Split ratio that number of shares of Common Stock as rounded up to the nearest whole share. For example, if a stockholder
holds 150.25 shares of Common Stock following the Reverse Split, that stockholder will receive a certificate representing 151 shares
of Common Stock. No stockholders will receive cash in lieu of fractional shares.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of the Record Date,
we had 607 holders of record of our Common Stock (although we have significantly more beneficial holders) and 64 holders of Series
1 Preferred Stock. We do not expect the Reverse Split and the rounding up of fractional shares to whole shares to result in a reduction
in the number of record holders. We presently do not intend to seek any change in our status as a reporting company for federal
securities law purposes, either before or after the Reverse Split, except to have our Common Stock moved from a registration pursuant
to Section 12(g) to Section 12(b) under the Exchange Act.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On or after the Effective
Time, we will mail a letter of transmittal to each common stockholder. Each common stockholder will be able to obtain a certificate
evidencing his, her or its post-Reverse Split shares only by sending Continental Stock Transfer &amp; Trust Company as the exchange
agent, the stockholder&rsquo;s old stock certificate(s), together with the properly executed and completed letter of transmittal
and such evidence of ownership of the shares as we may require. Common stockholders will not receive certificates for post-Reverse
Split shares unless and until their old certificates are surrendered. Common stockholders should not forward their certificates
to the exchange agent until they receive the letter of transmittal, and they should only send in their certificates with the letter
of transmittal. The exchange agent will send each common stockholder a new stock certificate after receipt of that common stockholder&rsquo;s
properly completed letter of transmittal and old stock certificate(s). Preferred stockholders do not have to exchange their existing
stock certificates for new certificates.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Common stockholders
who hold shares in street name through a nominee (such as a bank or broker) will be treated in the same manner as common stockholders
whose shares are registered in their names, and nominees will be instructed to effect the Reverse Split for their beneficial holders.
However, nominees may have different procedures and common stockholders holding shares in street name should contact their nominees.
Common stockholders will not have to pay any service charges in connection with the exchange of their certificates.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Authorized Shares</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If and when our Board
elects to effect the Reverse Split, the authorized number of shares of our Common Stock will remain at 100,000,000. Accordingly,
there will be no reduction in the number of authorized shares of our Common Stock in proportion to the Reverse Split ratio. As
a result, the proportion of shares owned by our stockholders relative to the number of shares authorized for issuance will decrease
and the additional authorized shares of Common Stock will be available for issuance at such times and for such purposes as our
Board may deem advisable without further action by our stockholders, except as required by applicable laws and regulations. If
our Common Stock are initially listed on The NASDAQ Capital Market, stockholder approval must be obtained, under applicable NASDAQ
rules, prior to the issuance of shares for certain purposes, including the issuance of Common Stock equal to or greater than 20%
of our then outstanding shares of Common Stock in connection with a private refinancing or an acquisition or merger, unless an
exemption is available from such approval. Such an exemption would be available if our audit committee at that time authorized
the filing of a prior written application with NASDAQ to waive the stockholder vote requirement if it believed the delay associated
with securing such vote would seriously jeopardize our financial viability and NASDAQ granted us such an exemption.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Reverse Split
will have no effect on our authorized preferred stock except to proportionately adjust the conversion and voting ratios.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In accordance with
our Certificate of Incorporation and Delaware law, our shareholders do not have any preemptive rights to purchase or subscribe
for any of our unissued or treasury shares.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Anti-Takeover and Dilutive Effects</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The purpose of maintaining
our authorized Common Stock at 100,000,000 after the Reverse Split is to facilitate our ability to raise additional capital to
support our operations, not to establish any barriers to a change of control or acquisition of our Company. The shares of Common
Stock that are authorized but unissued provide our Board with flexibility to effect, among other transactions, public or private
refinancings, acquisitions, stock dividends, stock splits and/or the granting of equity incentive awards. However, these authorized
but unissued shares may also be used by our Board, consistent with and subject to its fiduciary duties, to deter future attempts
to gain control of us or make such actions more expensive and less desirable. The Reverse Split would give our Board authority
to issue additional shares from time to time without delay or further action by the stockholders except as may be required by applicable
law or the rules of The NASDAQ Capital Market. The Reverse Split is not being recommended in response to any specific effort of
which we are aware to obtain control of us, nor does our Board have any present intent to use the authorized but unissued Common
Stock to impede a takeover attempt. There are no plans or proposals to adopt other provisions or enter into any arrangements that
have material anti-takeover effects.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition, the issuance
of additional shares of Common Stock for any of the corporate purposes listed above could have a dilutive effect on earnings per
share and the book or market value of our outstanding Common Stock, depending on the circumstances, and would likely dilute a stockholder&rsquo;s
percentage voting power in us. Holders of our Common Stock are not entitled to preemptive rights or other protections against dilution.
Our Board intends to take these factors into account before authorizing any new issuance of shares.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Accounting Consequences</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There will be no change
in our par value per share of our Common Stock. Accordingly, as of the Effective Time, the stated capital attributable to Common
Stock on our balance sheet will be reduced proportionately based on the Reverse Split ratio (including a retroactive adjustment
of prior periods), and the additional paid-in capital account will be credited with the amount by which the stated capital is reduced.
Reported per share net income or loss will be higher because there will be fewer shares of our Common Stock outstanding.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Federal Income Tax Consequences</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following summary
describes certain material U.S. federal income tax consequences of the Reverse Split to holders of our Common Stock. This summary
addresses the tax consequences only to a beneficial owner of our Common Stock that is a citizen or individual resident of the United
States, a corporation organized in or under the laws of the United States or any state thereof or the District of Columbia or otherwise
subject to U.S. federal income taxation on a net income basis in respect of our Common Stock (a &ldquo;<B>U.S. holder</B>&rdquo;).
This summary does not address all of the tax consequences that may be relevant to any particular stockholder, including tax considerations
that arise from rules of general application to all taxpayers or to certain classes of taxpayers or that are generally assumed
to be known by investors. This summary also does not address the tax consequences to persons that may be subject to special treatment
under U.S. federal income tax law or persons that do not hold our Common Stock as &ldquo;capital assets&rdquo; (generally, property
held for investment). This summary is based on the provisions of the Internal Revenue Code of 1986, as amended, U.S. Treasury regulations,
administrative rulings and judicial authority, all as in effect as of the date hereof. Subsequent developments in U.S. federal
income tax law, including changes in law or differing interpretations, which may be applied retroactively, could have a material
effect on the U.S. federal income tax consequences of the Reverse Stock Split.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If a partnership (or
other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of our Common Stock, the
U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities
of the partnership. Partnerships that hold our Common Stock, and partners in such partnerships, should consult their own tax advisors
regarding the U.S. federal income tax consequences of the Reverse Split.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>Each stockholder
should consult his, her or its own tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences
of the Reverse Stock Split.</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Reverse Split
should be treated as a recapitalization for U.S. federal income tax purposes. Therefore, no gain or loss should be recognized by
a U.S. holder upon the Reverse Split. Accordingly, the aggregate tax basis in the Common Stock received pursuant to the Reverse
Split should equal the aggregate tax basis in the Common Stock surrendered and the holding period for the Common Stock received
should include the holding period for the Common Stock surrendered.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Text of Proposed Amendment; Effectiveness</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The text of the proposed
RS Amendment is set forth in <U>Appendix A</U> to this Information Statement. If and when effected by our Board, the RS Amendment
will become effective upon its filing with the Secretary of State of the State of Delaware or at the Effective Time and Date as
specified in said filing.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Required Vote</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Approval of the RS Proposal
requires the affirmative vote of a majority of the issued and outstanding voting shares of Common Stock and Preferred Stock voting
as one class. By approving Appendix A, our stockholders are authorizing our executive officers to make any necessary changes to
Appendix A required by the Secretary of State of the State of Delaware to file Appendix A with said Secretary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">It
is expected that the written consents of the Voting Stock submitted to the Secretary of the Company on the Written Consent Effective
Date will include the ratification of the filing of </FONT>an amendment to the Company&rsquo;s Certificate of Incorporation and
the filing of said amendment with the Secretary of State to approve granting the Board of Directors the right to implement a Reverse
Stock Split not less than one-for-five and not greater than one-for-ten for the purpose of effectuating an uplisting on The NASDAQ
Capital Market and attempt to meet its minimum closing price requirement of at least $3.00 per share for between five and ten trading
days<FONT STYLE="letter-spacing: -0.15pt">. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Effective Date of the Amendment</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Certificate of
Amendment of the Company will become effective upon the filing of the certificate of amendment to the Company&rsquo;s Certificate
of Incorporation with Secretary of State of the State of Delaware or at the Effective Time and Date as specified is said filing.
&nbsp;Pursuant to Rule 14c-2 under the Exchange Act, the foregoing Action may not become effective until a date that is at least
20 days after the date on which this Information Statement has been mailed to the stockholders of the Company.</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>No Meeting of Stockholders Required</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is not
soliciting any votes with regard to the Proposal. &nbsp;The principal stockholders of the Company intend to consent to the Proposal
and they hold a majority of the total issued and outstanding shares of voting capital stock and, accordingly, such principal stockholders
have sufficient shares to approve the Proposal.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>PROPOSALS BY SECURITY HOLDERS</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No security holder
has requested the Company to include any additional proposals in this Information Statement.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>INTEREST OF CERTAIN PERSONS IN OR OPPOSITION
TO MATTERS TO BE ACTED UPON</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No officer or director
of the Company has any substantial interest in the Proposal to be acted upon, other than as a stockholder or in his role as an
officer and director of the Company. &nbsp;No director of the Company has informed the Company that he intends to oppose the proposed
action to be taken by the Company as set forth in this Information Statement.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">The
Company files reports with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;). &nbsp;These reports include annual and
quarterly reports, as well as other information the Company is required to file pursuant to securities laws. &nbsp;You may read
and copy materials the Company files with the SEC at the SEC&rsquo;s Public Reference Room at 100 F Street, N.E., Washington, D.C.
20549. &nbsp;You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. &nbsp;The
SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers
that file electronically with the SEC at </FONT><FONT STYLE="color: blue">http://www.sec.gov</FONT><FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>DELIVERY OF DOCUMENTS
TO SECURITY HOLDERS SHARING AN ADDRESS</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Only one Information
Statement is being delivered to multiple security holders sharing an address unless the Company received contrary instructions
from one or more of the security holders. &nbsp;The Company shall deliver promptly, upon written or oral request, a separate copy
of the Information Statement to a security holder at a shared address to which a single copy of the document was delivered. &nbsp;A
security holder can notify the Company that the security holder wishes to receive a separate copy of the Information Statement
by sending a written request to the Company&rsquo;s agent, namely, Continental Stock Transfer &amp; Trust Company, 17 Battery Place,
8<SUP>th</SUP> Floor, New York, NY 10004.&nbsp;A security holder may utilize the same address and telephone number to request either
separate copies or a single copy for a single address for all future information statements, proxy statements and annual reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">It
is expected that the written consents of the Voting Stock submitted to the Secretary of the Company on the Written Consent Effective
Date will include approving the Proposal set forth herein.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.15pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OTHER BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of the date of this
Information Statement, the Board of Directors of the Company knows of no other business which will be presented for consideration
of the stockholders of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DEADLINE FOR RECEIPT OF STOCKHOLDER PROPOSALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any Stockholder who intends
to present a proposal at the next annual meeting of Stockholders must deliver the proposal to Brad Bernstein, Corporate Secretary
of FlexShopper, Inc. at 2700 North Military Trail, Ste. 200, Boca Raton, FL 33431:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 4%; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not later than May 31, 2016, if the proposal is submitted for inclusion in our proxy materials for that meeting pursuant to Rule 14a-8 under the Securities Exchange Act of 1934; and </FONT></TD></TR>
<TR>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Courier New, Courier, Monospace; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font-family: Courier New, Courier, Monospace">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-family: Courier New, Courier, Monospace"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; font-family: Courier New, Courier, Monospace; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not later than May 31, 2016, if the proposal is submitted outside the processes of Rule 14a-8 under the Securities and Exchange Act of 1934, in which case we are not required to include the proposal in our proxy materials. Such nominations and proposals for the next annual meeting of Stockholders, other than those made by or on behalf of the Board of Directors, shall be made by notice in writing delivered or mailed by first class United States mail, postage prepaid, to the Chairman.&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2"><B>FLEXSHOPPER, INC.</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 46%">/s/ Brad Bernstein,
Chief Executive Officer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid"><BR></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.45in; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>APPENDIX
A</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CERTIFICATE
OF AMENDMENT </B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TO
THE CERTIFICATE OF INCORPORATION</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OF</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.15pt"><B>FLEXSHOPPER,
INC.</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[__],
2016</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.15pt">FlexShopper,
Inc.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">, a corporation organized and existing under
and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FIRST</B>:
That the Board of Directors of <FONT STYLE="letter-spacing: -0.15pt">FlexShopper, Inc.</FONT> adopted a proposed amendment of
the Certificate of Incorporation of said corporation to effectuate a reverse stock split, declaring said amendment to be advisable.</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
proposed amendment reads as follows:</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
1 of Article Fourth is hereby amended by adding the following paragraph after the first and only paragraph:</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 0 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the effectiveness (the &ldquo;<U>Effective Time</U>&rdquo;) of this Certificate of Amendment to the Certificate of Incorporation
of the Corporation, each share of Common Stock, par value $.001 per share, issued and outstanding immediately prior to the Effective
Time will be automatically combined and converted into that fraction of a share of Common Stock, par value $.001 per share, of
the Corporation as has been determined by the Board of Directors in its sole discretion within the range of 1-for-5 and 1-for-10
shares and publicly announced by the Corporation at least 10 days prior to effectiveness of this Certificate of Amendment (the
&ldquo;<U>Consolidation</U>&rdquo;). Notwithstanding the foregoing, no fractional shares shall be issued in connection with the
Consolidation. Fractional shares shall be rounded up to the nearest whole share. Each certificate that immediately prior to the
Effective Time represented shares of Common Stock (&ldquo;<U>Old Certificates</U>&rdquo;), shall thereafter and without the necessity
for presenting the same represent that number of shares of Common Stock into which the shares of Common Stock represented by the
Old Certificate shall have been combined, subject to the rounding up of any fractional share interests as described above.</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.15pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECOND:
</B><FONT STYLE="letter-spacing: -0.15pt">That, in lieu of a meeting and vote of stockholders, written or electronic consent of
stockholders to said amendment </FONT>granting the Board of Directors the authority to amend the Certificate of Incorporation
to provide for a reverse stock split<FONT STYLE="letter-spacing: -0.15pt"> has been given in accordance with the provisions of
Section 228 of the General Corporation Law of the State of Delaware, and written notice of the adoption of the amendment has (or
will be) given as provided in Section 228 of the General Corporation Law of the State of Delaware to every stockholder entitled
to such notice.</FONT></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THIRD:
</B>That the Board of Directors subsequently approved a ratio of ____.<B> </B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOURTH:
</B>That said amendment was duly adopted in accordance with the provisions of Sections 242 and 228 of the General Corporation
Law of the State of Delaware.<B></B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>IN WITNESS WHEREOF, </B>said corporation has caused this certificate to be signed this __ day
of ________________, 2016.</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt 3in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>By:
&#9; ___________________________________ </B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt 3in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title:
&#9; _________________________________ </B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0 0 12pt 3in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name:
_________________________________&#9;</B></FONT></P>

<P STYLE="font: 10pt Courier; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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