Zerify Inc (ZRFY)

[RandolRocketman]

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Other income (expense) for the year ended December 31, 2016 was income of $5,381,185 as compared to expenses of ($695,711) for the year ended December 31, 2015, representing an increase in other income of $6,076,896, or 874%. The increase was primarily due to the net settlement of patent remediation litigation, which was settled in January 2016 and the extinguishment of derivatives relating to the payoff of convertible debt, offset by interest expense.

Our net income (loss) for the year ended December 31, 2016 was $2,938,565 compared to a net loss of ($1,807,245) for the year ended December 31, 2015, an increase in net income of $4,745,810, or 263%. The increase was primarily due to the net settlement of patent remediation litigation, which was settled in January 2016 and the extinguishment of derivatives relating to the payoff of convertible debt, offset by increases in SGA expenses and interest expense.