Zerify Inc (ZRFY)

[Dodicus]

Q1 2021- 10 Q filling – Note 2 Convertible Notes Payable section C paragraph #2 - During the three months ended March 31, 2021, notes payable totaling $45,000 plus unpaid interest and fees of $4,000, for a total of $49,000, were converted into 16,168,589 shares of the Company’s common stock with a fair value of $1,035,000. The Company followed the general extinguishment model to record the conversion and settlement of the debt. Notes payable, accrued interest and fees converted totaled $49,000, the related unamortized debt discount totaled ($14,000), and the derivative liability related to the conversion option of these notes, after final valuation, amounted to $382,000. The fair value of the common shares issued amounted to $1,035,000 and the difference between the total debt settled and fair value of the common shares issued amounted to $618,000 and was recorded as loss on extinguishment of debt. No disclosure on who received 16,168,589 shares with a market a value of $1,035,000 to settle $49,000 of debt