Zerify Inc (ZRFY)

[Jtech]

In September 2016, four holders of our Series B Preferred Stock converted 125,337 series B preferred shares into 35,703,979 shares of our common stock at conversion prices ranging from $0.00383 to $0.00532 per share. A total of 32,894,737 of the common shares were issued in October 2016.

Our number of shares of Series B Preferred Stock issued and outstanding decreased from 175,338 shares at December 31, 2015 to 50,001 at September 30, 2016, a decrease of 71.5%. The decrease was due to the conversion of Series B Preferred Stock into shares of our common stock.

The remaining 50,000 series B will convert to approx 13 million common.