Zerify Inc (ZRFY)

[Montecash]

We generated all of our revenues of $324,807 for the year ended December 31, 2014, compared to $434,657 for the year ended December 31, 2013, from the sales of our security products. The decrease in revenues was primarily due to the decrease in the sales of our GuardedID® keyboard encryption (anti-keylogger) technology relating to our initiated litigation with one of our channel partners, WhiteSky, Inc. ("WhiteSky"). We also have realized delays in revenues from some of our new distributor’s that will appear in the first half of 2015 future, and in delayed rollout of our new mobile security technologies, now anticipated to roll out through the Apple and Android markets during the second quarter of 2015. The lawsuit with WhiteSky was settled on March 9, 2015 with mutually agreed upon terms. In addition, we rolled out our GuardedID® MAC version that is expected, but not guaranteed, to increase our revenues during the second quarter of 2015 and thereafter. Therefore, we see strong opportunities for increased sales through 2015. Additionally, we believe we have opportunities through our sales distribution channels, including current pilots, which we believe should increase revenues in 2015, especially with the addition of our new mobile security products and new multi-marketing partners.