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Boxlight

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FY2022 Annual Report · Boxlight
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

(Mark One)

☒

ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FORM 10-K

For the Fiscal Year Ended December 31, 2022

OR

☐

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                            to                           

Commission file number: 001-37564

BOXLIGHT CORPORATION

(Exact name of registrant as specified in its charter)

Nevada
(State or other jurisdiction of
incorporation or organization)

8211
(Primary Standard Industrial
Classification Code Number)

46-4116523
(I.R.S. Employer
Identification Number)

2750 Premiere Pkwy #900
Duluth, Georgia 30097
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (678) 367-0809

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Ticker Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value

BOXL

The Nasdaq Stock Market LLC

Securities registered pursuant to section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate  by  check  mark  whether  the  registrant  (1)  has  filed  all  reports  required  to  be  filed  by  Section  13  or  15(d)  of  the  Securities  Exchange  Act  of  1934  during  the  preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of
this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See
the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

☐

☒

Accelerated filer

Smaller reporting company

Emerging growth company

☐

☒

☐

If  an  emerging  growth  company,  indicate  by  check  mark  if  the  registrant  has  elected  not  to  use  the  extended  transition  period  for  complying  with  any  new  or  revised  financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act.. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting
under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of
an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s
executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the
average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter was $43,784,486.

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The number of shares outstanding of the registrant’s common stock on March 13, 2023 was 74,774,556.

Certain portions of the registrant’s Definitive Proxy Statement for the 2023 Annual Meeting of the Stockholders, which will be filed within 120 days of December 31,

2022.

DOCUMENTS INCORPORATED BY REFERENCE

 
 
    
    
    
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

BOXLIGHT CORPORATION
TABLE OF CONTENTS

PART I

Business

Item 1.
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2.
Item 3.
Item 4.

Properties
Legal Proceedings
Mine Safety Disclosures

Item 5.

PART II
Market  for  Registrant’s  Common  Equity,  Related  Stockholder  Matters  and  Issuer  Purchases  of  Equity
Securities
[Reserved]
Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 6.
Item 7.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8.
Item 9.
Item 9A. Controls and Procedures
Item 9B. Other Information
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Financial Statements and Supplementary Data
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

PART III
Item 10. Directors, Executive Officers and Corporate Governance
Item 11.
Item 12.
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14.

Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Principal Accountant Fees and Services

Item 15.
Item 16.

Exhibits, Financial Statement Schedules
Form 10–K Summary

PART IV

SIGNATURES

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FORWARD LOOKING STATEMENTS

This  Annual  Report  on  Form  10-K  (including  the  section  regarding  Management’s  Discussion  and  Analysis  and
Results of Operations) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended,  or  the  Securities  Act,  and  Section  21E  of  the  Securities  Exchange  Act  of  1934,  as  amended,  or  the  Exchange  Act.
These  statements  are  based  on  our  management’s  belief  and  assumptions  and  on  information  currently  available  to  our
management.  Although  we  believe  that  the  expectations  reflected  in  these  forward-looking  statements  are  reasonable,  these
statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Forward-looking statements include statements concerning the following:

● our possible or assumed future results of operations;

● our business strategies;

● our ability to attract and retain customers;

● our ability to sell additional products and services to customers;

● our cash needs and financing plans;

● our competitive position;

● our industry environment;

● our potential growth opportunities;

● expected technological advances by us or by third parties and our ability to leverage them;

● our inability to predict, adapt to, or anticipate the duration or long-term economic and business consequences of the

ongoing conflict between Ukraine and Russia or the COVID-19 pandemic;

● our ability to protect the Company against cybersecurity risks and threats;

● our ability to maintain the listing of our securities on a national securities exchange;

● the effects of future regulation; and

● our ability to protect or monetize our intellectual property.

In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or
other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking
statements, because they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond
our  control  and  which  could  materially  affect  results.  Factors  that  may  cause  actual  results  to  differ  materially  from  current
expectations  include,  among  other  things,  those  listed  in  the  reports  we  file  with  the  SEC.  Actual  events  or  results  may  vary
significantly from those implied or projected by the forward-looking statements due to these risk factors. No forward-looking
statement  is  a  guarantee  of  future  performance.  You  should  read  this  Annual  Report  on  Form  10-K,  the  documents  that  we
reference in this Annual Report on Form 10-K and the documentation we have filed as exhibits thereto with the Securities and
Exchange Commission, or the SEC, with the understanding that our actual future results and circumstances may be materially
different from what we expect.

Forward-looking  statements  are  made  based  on  management’s  beliefs,  estimates  and  opinions  on  the  date  the
statements  are  made,  and  we  undertake  no  obligation  to  update  forward-looking  statements  if  these  beliefs,  estimates  and
opinions  or  other  circumstances  should  change,  except  as  may  be  required  by  applicable  law.  Although  we  believe  that  the
expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,
performance or achievements.

Unless the context otherwise requires, the terms “the Company,” “we,” “us,” and “our” in this report refer to Boxlight
Corporation and its consolidated direct and indirect subsidiaries, and the term “Boxlight” refers to Boxlight Inc., a Washington
corporation and a wholly owned subsidiary of Boxlight Corporation.  The terms “year” and “fiscal year” refers to our fiscal year
ending December 31st.

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ITEM 1. BUSINESS

PART I

We  are  a  technology  company  that  develops,  sells  and  services  interactive  solutions  predominantly  for  the  global
education market, but also for the corporate and government sectors. We are seeking to become a worldwide leading innovator
and integrator of interactive products and software solutions and improve collaboration and effective communication in meeting
environments. We currently design, produce and distribute interactive technologies including our interactive and non-interactive
flat  panel  displays,  LED  video  walls,  media  players,  classroom  audio  and  campus  communication,  cameras  and  other
peripherals for the education market and non-interactive solutions including flat panels, LED video walls and digital signage.
We  also  distribute  science,  technology,  engineering  and  math  (or  “STEM”)  products,  including  our  3D  printing  and  robotics
solutions,  and  our  portable  science  lab.  All  products  are  integrated  into  our  classroom  software  suite  that  provides  tools  for
whole class learning, assessment and collaboration. In addition, we offer professional training services related to our technology
to our U.S. educational customers. To date, we have generated the majority of our revenue in the U.S. and internationally from
the sale of interactive displays and related software to the educational market. We have sold our solutions into more than 70
countries and into more than 1.5 million classrooms and meeting spaces. We sell our products and software through more than
1,000 global reseller partners. We believe we offer the most comprehensive and integrated line of interactive display solutions,
audio products, peripherals and accessories, software and professional development for schools and enterprises on the market
today. The majority of our products are backed by nearly 30 years of research and development.

Advances  in  technology  and  new  options  for  the  introduction  of  technology  into  the  classroom  have  forced  school
districts  to  look  for  solutions  that  allow  teachers  and  students  to  bring  their  own  devices  into  the  classroom,  provide  school
districts with information technology departments with the means to access data with or without internet access, handle higher
demand for video, as well as control cloud and data storage challenges. Our design teams are able to quickly customize systems
and  configurations  to  serve  the  needs  of  clients  so  that  existing  hardware  and  software  platforms  can  communicate  with  one
another. Our goal is to become a single source solution to satisfy the needs of educators around the globe and provide a holistic
approach to the modern classroom.

We pride ourselves in providing industry-leading service and support and have received numerous product awards:

● In 2022, Boxlight received Awards from various industry publications including Overall EdTech Company of the Year
in the EdTech Breakthrough Awards, Tech and Learning Best of Show for ISTELive 22, multiple awards from Tech &
Learning’s Back to School Awards of Excellence, 4 awards for new products from THE Journal, multiple awards from
Tech and Learning for Mimio, Clevertouch and FrontRow solutions and the Campus Technology New Product of the
Year award for CleverLive digital signage.

● In 2021, Boxlight received Tech & Learning’s 2021 Awards of Excellence ‐  Best  Tools  for  Back  to  School,  in  both
Primary and Secondary levels for: MimioConnect® blended learning platform, MimioSTEM solutions, Boxlight‐EOS
Professional Development Learning Solutions, and our ProColor interactive flat panel. Clevertouch was awarded for
Best  Business  Growth  and  Corporate  Social  Responsibility  by  InAVation  Awards  and  4  AV  Awards  for  Product,
Manufacturer, Distributor, and Channel Team of the Year.

● In  2020,  UX  Pro  won  Collaboration  Innovation  of  the  Year  from  AV  News  Awards,  Best  in  Show  for  InfoComm
Awards,  AvTechnology  Europe,  and  “Best  of  Show”  at  ISE.  IMPACT  Plus  won  Innovation  Design,  high-quality,
functionality,  ergonomics  and  ecology  from  Plus  X  Awards  in  Germany,  Collaboration  Innovation  from  AV  News
Awards, Best in Show at InfoComm from Tech & Learning magazine, Best at Show at InfoComm from Installation
magazine and best at ISE Show from Installation.

● In 2019, Clevertouch won Interactive Display of the Year at AV Magazine’s AV Awards, Keiba Awards, Best of Show
from  Installation  and  best  of  Show  for  IMPACT  Plus  at  Best  of  Show  Tech&Learning  awards,  as  well  as  the  Pro
Series Technology for Conferencing and Collaboration at the Innovation Awards, and the AV Display Innovation of
the Year at the AV News Awards.

Over the past three years, the COVID-19 pandemic has had a significant impact on economies worldwide, resulting in
workforce and travel restrictions, and supply chain and production disruptions across many sectors. While factors have had a
significant impact on our supply chain, the financial performance of our business has actually improved substantially since the
last quarter of 2020 and we anticipate that trend will continue throughout 2023 as demand for our products and solutions in the
education, government and

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corporate  sectors  increase.  Indeed,  we  believe  that  the  COVID-19  pandemic  has  accelerated  the  move  toward  unified
communications, thus creating greater demand for our products and solutions.

For more detail, please refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of

Operations for discussion of specific impacts on seasonality and liquidity and capital resources.

Our Company

Boxlight  Corporation  was  incorporated  in  Nevada  on  September  18,  2014  for  the  purpose  of  acquiring  technology
companies  that  sell  interactive  products  into  the  education  market.  As  of  the  date  of  this  Annual  Report,  we  have  six
subsidiaries,  consisting  of  Boxlight  Inc.,  a  Washington  State  corporation,  Boxlight  Australia,  PTY  LTD,  an  Australian
Company,  Sahara  Holdings  Limited,  an  England  and  Wales  corporation,  Boxlight  Latinoamerica,  S.A.  DE  C.V.  (“BLS”)  and
Boxlight  Latinoamerica  Servicios,  S.A.  DE  C.V.,  (“BLA”),  both  incorporated  in  Mexico,  and  EOSEDU,  LLC,  an  Arizona
limited  liability  company  (“EOS”).  BLS  and  BLA  are  currently  inactive.    Our  Sahara  Holding  Limited  subsidiary  has  eight
directly and indirectly owned subsidiaries located in the United States, the United Kingdom, the Netherlands, Belgium, Sweden,
Finland and Germany, and our subsidiary Boxlight Inc., in turn, has four directly and indirectly owned subsidiaries located in
the United States, Northern Ireland, Canada and Denmark. See the Boxlight Corporation organization chart on page 8 below.

On  December  31,  2021,  we  acquired  FrontRow  Calypso  LLC,  a  California  company  and  a  leader  in  classroom  and

campus communication solutions for the education market.

On March 23, 2021, we acquired Interactive Concepts BV, a company incorporated and registered in Belgium and a
distributor  of  interactive  technologies  (Interactive)  and  subsequently  renamed  to  Sahara  Presentation  Systems  (Interactive)
Europe BV. The company has been Boxlight’s key distributor in Belgium and Luxembourg.

On  September  24,  2020,  the  Company  acquired  Sahara  Holdings  Ltd.,  a  leader  in  distributed  AV  products  and  a
manufacturer of multi-award-winning touchscreens and digital signage products, including the globally renowned Clevertouch
brand. Headquartered in the United Kingdom, Sahara and its subsidiaries have a strong presence in the EMEA interactive flat
panel display (IFPD) market selling into education, health, government, military and corporate sectors.

On  April  17,  2020,  we  acquired  MyStemKits  Inc.  (“MyStemKits”).  MyStemKits  is  in  the  business  of  developing,
selling  and  distributing  3D  printable  science,  technology,  engineering  and  math  curriculums  incorporating  3D  printed  project
kits  for  education,  and  owns  the  right  to  manufacture,  market  and  distribute  Robo  3D  branded  3D  printers  and  associated
hardware for the global education market.

On  March  12,  2019,  we  acquired  Modern  Robotics  Inc.  (“MRI”),  based  in  Miami,  Florida.  MRI  is  engaged  in  the
business of developing, selling and distributing science, technology, engineering and math (STEM), robotics and programming
solutions to the global education market.

On August 31, 2018, we purchased EOS, an Arizona limited liability company owned by Daniel and Aleksandra Leis.
EOS is in the business of providing technology consulting, training, and professional development services to create sustainable
programs that integrate technology with curriculum in K-12 schools and districts.

On  June  22,  2018,  we  acquired  Qwizdom,  Inc.  and  its  subsidiary  Qwizdom  UK  Limited  (together,  the  “Qwizdom
Companies”). The Qwizdom Companies develop software and hardware solutions that are quick to implement and designed to
increase  participation,  provide  immediate  data  feedback,  and,  most  importantly,  accelerate  and  improve  comprehension  and
learning. The Qwizdom Companies have offices outside Seattle, WA and Belfast, Northern Ireland and deliver products in more
than 40 languages to customers around the world through a network of partners.

On  May  9,  2018,  we  acquired  Cohuborate,  Ltd.,  a  United  Kingdom  corporation  based  in  Lancashire,  England.
Cohuborate produces, sells and distributes interactive display panels designed to provide new learning and working experiences
through high-quality technologies and solutions through in-room and room-to-room multi-device multi-user collaboration.

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On  December  20,  2018,  Cohuborate  Ltd.  transferred  all  of  its  assets  and  liabilities  to  Qwizdom  UK  Limited  and
changed  its  name  to  Qwizdom  UK  Limited.  On  December  20,  2018,  Qwizdom  UK  Limited  changed  its  name  to  Boxlight
Group Ltd. On January 24, 2019, we merged Qwizdom, Inc. with and into Boxlight, Inc.

The businesses previously conducted by Cohuborate Ltd. and Qwizdom UK Limited are now operated by the Boxlight

Group Ltd., a wholly owned subsidiary of Boxlight, Inc.

On May 9, 2016, we acquired Genesis. Genesis Collaboration LLC, a Georgia limited liability company (“Genesis”), is
a value-added reseller of interactive learning technologies, selling into the K-12 education market in Georgia, Alabama, South
Carolina, northern Florida, western North Carolina and eastern Tennessee. Genesis also sells our interactive solutions into the
business and government markets in the United States. Effective August 1, 2016, Genesis was merged into our Boxlight Inc.
subsidiary.

On April 1, 2016, we acquired Mimio LLC, a Delaware limited liability company (“Mimio”). Mimio designs, produces
and  distributes  a  broad  range  of  Interactive  Classroom  Technology  products  primarily  targeted  at  the  global  K-12  education
market.  Mimio’s  core  products  include  interactive  projectors,  interactive  flat  panel  displays,  interactive  touch  projectors,
touchboards and MimioTeach, which can turn any whiteboard interactive within 30 seconds. Mimio’s product line also includes
an  accessory  document  camera,  teacher  pad  for  remote  control  and  an  assessment  system.  Manufacturing  is  by  ODMs  and
OEMs in Taiwan and China. Mimio products have been deployed in over 600,000 classrooms in dozens of countries. Mimio’s
software is provided in over 30 languages. Effective October 1, 2016, Mimio was merged into our Boxlight Inc. subsidiary.

For  a  description  of  the  terms  of  our  recent  acquisitions  see  “Management’s  Discussion  and  Analysis  of  Financial

Condition and Results of Operations – Recent Acquisitions” elsewhere in this Annual Report.

The organizational structure of our companies is as follows:

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Our Markets

The global interactive technology education industry is undergoing a significant transition, as primary and secondary
school  districts,  colleges  and  universities,  as  well  as  governments,  corporations  and  individuals  around  the  world  are
increasingly recognizing the importance of using technology to more effectively educate, communicate and collaborate.  Across
the globe, state governments along with local communities continue to make sustained investments in education.

The  K-12  education  sector  represents  one  of  the  largest  industry  segments.  The  US  sector  is  comprised  of
approximately  15,600  public  school  districts  across  the  50  states  and  132,000  public  and  private  elementary  and  secondary
schools.  In  addition  to  its  size,  the  U.S.  and  certain  EMEA  K-12  education  markets  are  highly  decentralized  and  are
characterized by complex content adoption processes. We believe this market structure underscores the importance of scale and
industry relationships and the need for broad, diverse coverage across states, districts and schools. Even while we believe certain
initiatives  in  the  education  sector,  such  as  the  Common  Core  State  Standards,  a  set  of  shared  math  and  literacy  standards
benchmarked to international standards, have increased standardization in K-12 education content, we believe significant state
standard  specific  customization  still  exists,  and  we  believe  the  need  to  address  customization  provides  an  ongoing  need  for
companies in the sector to maintain relationships with individual state and district policymakers and expertise in state-varying
academic standards.

According  to  FutureSource  Consulting  Ltd.,  the  U.S.  display  market  is  expected  to  reach  $37  billion  in  2022  and
increase to $49 billion in 2026 while the global display market is forecast to approximate $10.5 trillion in 2022 while holding
constant  at  approximately  $9.8  trillion  for  2023  through  2026.  While  the  education  sector  has  historically  represented  the
majority  of  displays  sold,  growth  in  the  corporate  sector  continue  to  outpace  the  education  sector  with  sales  to  the  corporate
sector  expected  to  reach  approximately  47%  of  the  global  display  market  in  2026.  The  growth  in  both  the  education  and
corporate  sectors  provides  the  Company  with  significant  growth  opportunities.  In  addition,  the  display  market  is  highly
fragmented allowing the Company to position itself for increased market share in each of these sectors.

According to “All Global Market Education & Learning,” an industry publication, the market for hardware products is
growing due to increases in the use of interactive whiteboards and simulation-based learning hardware. Educational institutions
have become more receptive to the implementation of high-tech learning tools. The advent of technology in the classroom has
enabled multi-modal training and varying curricula. In general, technology-based tools help develop student performance when
integrated  with  the  curriculum.  The  constant  progression  of  technology  in  education  has  helped  educators  create  classroom
experiences that are interactive, developed and collaborative.

Our Opportunity

We believe that our Connected Classroom™ solution uniquely positions Boxlight to be the leading provider of EdTech
products within our categories in the global education technology market. Our holistic solution of hardware, software, content
and  professional  development  improves  learning  progression  by  increasing  student  engagement  and  timely  interventions.
Coupled  with  our  innovations,  we  have  a  strong  brand,  operations  and  supply-chain;  our  channel  into  the  US  and  EMEA
remains strong and the global market is growing year-on-year; with our global 24/7 technical and customer services team which
retains a high satisfaction rating.

Globally it is widely acknowledged that long-term economic growth is closely correlated to investment in education
and educational technology, thus sustaining long-term growth in the market, even during periods of economic downturn. Further
details of our solution and favorable macro-economic analysis are set forth below:

Growth in U.S. K-12 Market Expenditures

Significant resources are being devoted to primary and secondary education, both in the United States and abroad. As
set forth in the Executive Office of the President, Council of Economic Advisers report, U.S. education expenditure has been
estimated at approximately $1.3 trillion (~6% of U.S. GDP), with K-12 education accounting for close to half ($625 billion) of
this spending. Global spending is roughly triple U.S. spending for K-12 education.

The  market  for  K-12  services  and  technology  has  historically  grown  above  the  pace  of  inflation,  averaging  7.2%
growth annually since 1969. Deviations around this mean occur during periods of economic growth and recession causing peaks
and troughs in the K-12 market, albeit below other sectors.

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HolonIQ reported in the Global EdTech Venture Capital Report that there has been some $32 billion in venture capital
investment in the education/technology sector in the last decade (approximately 33% within the US) and predicts nearly triple
that  investment  through  to  2030.  Further,  the  Report  estimates  that  the  global  “expenditure  on  education  and  training  from
governments, parents, individuals and corporates continues to grow to historic levels and is expected to reach USD $10 trillion
by 2030.”

Increasing Focus on Accountability and the Quality of Student Education

U.S. K-12 education has come under significant political scrutiny in recent years, with findings that American students
rank  far  behind  other  global  leaders  in  international  tests  of  literacy,  math  and  science,  with  the  resulting  conclusion  that  the
current state of U.S. education severely impairs the United States’ economic, military and diplomatic security as well as broader
components  of  America’s  global  leadership.  We  believe  this  scrutiny  will  cause  there  to  be  increased  investment  into  the
education sector.

Trends in Tech-Savvy Education

While  industries  from  manufacturing  to  health  care  have  adopted  technology  to  improve  their  results,  according  to
Stanford Business School in its Trends in Tech-Savvy Education, the education field remains heavily reliant on “chalk and talk”
instruction  conducted  in  traditional  settings;  however,  that  is  changing  as  schools  and  colleges  adopt  virtual  classrooms,  data
analysis, online games, highly customized coursework, and other cutting-edge tools to help students learn.

New Technologies

The  delivery  of  digital  education  content  is  also  driving  a  substantial  shift  in  the  education  market.  In  addition  to
interactive  flat  panels,  other  technologies  are  being  adapted  for  educational  uses  on  the  Internet,  mobile  devices  and  through
cloud-computing,  which  permits  the  sharing  of  digital  files  and  programs  among  multiple  computers  or  other  devices  at  the
same  time  through  a  virtual  network.  We  intend  to  be  a  leader  in  the  development  and  implementation  of  these  additional
technologies to create effective digital learning environments.

Growth in the E-learning Market

According to the “E-learning Market – Global Outlook and Forecast 2020-2025,” the e-learning market is expected to
display  significant  growth  opportunities  in  the  next  five  years.  While  the  growth  curve  is  uniform  in  terms  of  the  number  of
users,  the  same  is  not  the  case  by  revenues;  the  average  cost  of  content  creation  and  delivery  with  the  same  is  undergoing  a
consistent decline. However, the advent of cloud infrastructure, peer-to-peer problem solving, open content creation, and rapid
expansion of the target audience has enabled e-learning providers to rein in economies of choice and offer course content at a
competitive  price.  While  the  growth  prospects  of  the  e-learning  market  remain  stable,  the  rise  of  efficient  sub-segments  is
changing the learning and training landscape gradually.

Vendors are also focusing on offering choices on the course content at competitive prices to gain the share in the global
e-learning  market.  The  exponential  growth  in  the  number  of  smartphone  users  and  internet  connectivity  across  emerging
markets  is  driving  the  e-learning  market  in  these  regions.  The  introduction  of  cloud-based  learning  and  Augmented/Virtual
reality mobile-based learning is likely to revolutionize the e-learning market during the forecast period.

Major  vendors  are  introducing  technology-enabled  tools  that  can  facilitate  user  engagement,  motivate  learners,  and
help in collaborations, thereby increasing the market share and attracting new consumers to the market. The growing popularity
of  blended  learning  that  enhances  the  efficiency  of  learners  will  drive  the  growth  of  the  e-learning  market.  The  e-learning
market is expected to generate revenue of $65.41 billion by 2023, growing at a compounded annual growth rate of 7.07% during
the forecast period.

Our Portfolio

We currently offer products within the following categories:

● Front-of-Class Display (Mimio and Clevertouch brands)

● FrontRow  Classroom  Audio  and  IP-based  school-wide  communication  systems  for  bells,  paging,  intercom,  and

alerting

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● STEM

● Educational Software & Content (Mimio Connect, LYNK Whiteboard, OKTOPUS, MimioStudio)

● Peripherals and Accessories

● Professional Development

The  Boxlight  portfolio  of  solutions  is  designed  to  create  dynamic  teaching,  learning,  and  presentation  experiences.
When  integrated,  our  innovative  solutions  provide  opportunity  for  a  holistic  approach  to  in-person  or  virtual  learning
experiences, meetings and professional learning, campus wide communication, or any situation where presentation, interaction,
or engagement occurs.

Front-of-Class Display Category

Boxlight offers a choice of Interactive Flat Panel Displays (IFPD), Interactive Whiteboards (IWB), and Non-Interactive
Flat Panel Displays. Each comes with licensed copies of our software, access to prepared content and Professional Development
modules. There are upsell opportunities for our software and Professional Development modules.

Clevertouch, IMPACT Plus

The IMPACT Plus interactive LED flat panels delivers a truly intuitive experience and is available in four sizes 55”,
65”,  75”  and  86”.  With  4K  resolution,  20  points  of  touch  and  built  collaboration  screen  sharing  with  touchback  capabilities,
IMPACT  Plus  is  built  with  teacher  requirements  for  a  new  generation  of  front  of  class  displays.  Running  Android  8  with  an
optional slot in PC, Clevertouch is designed to run and fit into any technology set up. Standard features include built in line
array microphones for distance learning, proximity sensors that boot up the screen or shuts down the screen when the room is
not  in  use,  built  in  app  store  with  hundreds  of  educational  apps,  enhanced  USB-C  connectivity  and  device  charging,  cloud
accounts  to  log  into  personal  settings  and  cloud  drives;  built  in  digital  signage,  to  display  messaging  a  cloud-based  LYNX
Whiteboard for lesson planning and deployment and Snowflake software. Every screen runs Over-the-Air (OTA) updates and
comes with Mobile Device Management to run diagnostics on each screen.

Clevertouch, IMPACT

The  Clevertouch  IMPACT  is  the  perfect  all-around  solution  for  the  modern  classroom.  Featuring  high  precision
technology, LYNX Whiteboard, Cleverstore, and Snowflake – IMPACT helps save time lesson planning with lots of resources.
Available in three sizes 65”, 75” and 86”, each panel is 4K with 20 points of touch, comes with an optional slot in PC and runs
on  Android  8.  All  IMACT  screens,  have  Cleverstore  which  has  hundreds  of  educational  apps  to  keep  young  minds  learning.
Also included is the cloud-based LYNX Whiteboard for lesson planning and deployment and Snowflake software as standard.
Every screen runs OTA updates and comes with Mobile Device Management to run diagnostics on each screen.

Clevertouch UX Pro

UX Pro interactive LED flat panels are designed for the modern meeting space and is available in four sizes - 55”, 65”,
75” and 86”. With 4K resolution, 20 points of touch and built-in collaboration screen sharing with touchback capabilities, the
UX Pro is built around meeting requirements with Stage software to enable remote meetings in which participants can annotate
on  documents,  while  the  launcher  will  give  instant  access  to  favorite  unified  communication  apps  at  the  touch  of  a  button.
Running Android 8 with an optional slot in PC, the UX Pro is designed to run and fit into any technology set up. Key features
include built-in line array microphone for meetings; proximity sensors that boot up the screen or shuts down the screen when the
room is not in use; enhanced USB-C connectivity and device charging; cloud accounts to log into personal settings and cloud
drives; built-in digital signage to display messages; every screen runs OTA updates and comes with Mobile Device Management
to  run  diagnostics  on  each  screen;  and  Clevershare  to  enable  instant  screen  sharing  through  the  app  or  dongle  to  engage  and
enhance collaboration.

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Clevershare

Clevershare  allows  users  to  share  content  with  any  device  from  either  the  dongle  and  the  USB  C  connection  or  the
Clevershare app. Up to 50 devices can connect with the Clevertouch screen and share content – images, video, and audio with
touch-back  for  two-way  control.  The  presenter  has  full  control  over  what  is  shared  and  can  show  up  to  four  device  screens
simultaneously, increasing collaboration and participation within every session.

CleverLive Digital Signage

CleverLive  is  a  unique  cloud-based  cloud  management  platform  (or  CMP)  for  managing  all  Clevertouch  device
endpoints, designed to customize the user interface based on device functionality, CleverLive combines simplicity of use with
feature rich functionality. The platform comes as standard with 200+ editable templates enabling a mix of multimedia content.
Features  include  built-in  presentation  creation  tools  for  designing  bespoke  layouts,  wayfinding  screens  and  touch  interfaces,
scheduling, grouping, instant emergency messaging, and QR code creation and display for an audience interactive experience.
Rounding off the unique features is the built-in Cleverstore from which users can download apps for their touch screens.

Clevertouch CM Series

The CM Series non-touch large format professional display for meeting presentations and digital signage is available in
six  sizes  -  43′′,  49′′,  55′′,  65′′,  75′′,  86′′.  This  4K  UHD,  non-touch  meeting  room  collaboration  screen  has  wireless  display
connectivity and RS232 control for professional meeting room integration with control systems. The built-in Android system
includes the CleverLive app for managing digital signage content of full screen capacity or can be packaged with a Clevertouch
Media  Player  to  enhance  digital  signage  playout  multimedia  functionality.  With  16/7  display,  the  CM  Series  has  a  built-in
scheduler  to  manage  on/off  timing  of  messages,  including  instant  messaging  when  needed.  The  CleverLive  digital  signage
feature sets this display apart from screens in the marketplace.

Clevertouch Live Rooms

Live Rooms is a room booking solution that simplifies the meeting room booking process. Live Rooms features a 10”
tablet that is manufactured with integrated room booking and digital signage software to deliver a powerful product to a busy
marketplace. The tablet features red and green LED side lighting for instant availability recognition and is capable of at-the-
source  and  calendar  (O365  and  ME)  room  booking  with  instant  updates,  to  prevent  booking  overlaps.  With  analytics  that
identify users, rooms booked, frequencies and more, Live Rooms offers a smart room booking solution that, when not in use,
can also serve as digital signage and provide send instant messages for emergency alerts.

Clevertouch PRO V4

As the enterprise-level media player, the PRO V4 allows organizations to engage with their audience 24/7 or deploy
dedicated  messages  via  power  scheduling  for  startup/shutdown  and  auto  reboots.  A  slimline  design,  power  boosting  WIFI
connectivity, and both HDMI and DisplayPort Outputs enables connection to multiple screens, the PRO V4 can be connected to
a  kiosk  or  UX  Pro  for  touch  interaction  or  a  non-touch  screen  for  feature-rich  digital  signage.  The  PRO  V4  can  connect  to
Clevertouch physical button technology for managing emergency and instant messaging away from the CMP. With multimedia-
zoned presentation playout, the PRO V4 can livestream web pages and URL KPIs, text, images, videos, posters, RSS Feeds,
social media content, audio, and more.

Clevertouch PICO MK5

PICO  MK  5  is  a  mid-range  media  player  with  24/7  playout  capability,  WIFI  connectivity,  and  is  designed  for

multimedia-zoned presentations with text, images, videos, posters, RSS Feeds, social media content, and audio.

CleverWall

CleverWall is an all-in-one intelligent display solution, for enriched interaction in large spaces, lecture halls, meeting
rooms, and more. This videowall solution is available in nine sizes – 120", 138”, 150”, 165”, 180”, 199”, 220”, 249”, and 299”,
the latter three being ultra-wide options or larger spaces like lecture halls. The large displays with in-built audio system and 178-
degree viewing angle

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create an immersive user experience that is unmatched. Its plug-and-play design – one button on/off and smart remote control –
make this LED solution user-friendly. Standard features include built-in Android technology, realtime wireless screen-sharing
from up to four devices simultaneously, synchronized annotating from multiple devices, and syncing with CleverLive accounts
for messaging (instant and scheduled) to all displays for campus or location-wide communication.

MimioPro 4

MimioPro  Series  4  adds  power  to  any  learning  ecosystem  –  a  true  Connected  Classroom.  The  MimioPro  4  is  a
touchscreen UHD HDR display with 20 points of touch, digital passive pen and eraser, and comes in three sizes – 65”, 75” and
86”.  Its  natural  user  interface  and  rich  features  support  teachers  to  effectively  and  efficiently  realize  learning  objectives.  For
example,  in  Windows  Ink  compliant  applications  such  as  Office  365,  the  passive  digital  pen  draws,  the  eraser  block  erases
digital  ink  (while  cleaning  the  glass),  and  touches  provide  gestures  without  having  to  use  the  software’s  user  interface.  The
MimioPro  4  has  a  custom  inbuilt  Android  11  Launcher  tailored  for  an  interactive  large  screen  and  comes  with:
LYNX  whiteboarding  app  to  create  and  capture  outcomes,  share  content,  collaborate,  and  distribute  ad-hoc  content  via  cloud
services through a dynamic QR code; CleverShare  mirroring app used on all models of Boxlight Interactive Flat Panel Displays
that allows teachers to orchestrate up to six simultaneous displays across Windows, Chrome OS, Android and iOS, and casting
of  the  MimioPro  4  to  all  the  devices  in  a  classroom;  NDMS  (Network  Device  Management  Systems),  a  cloud-based  device
management  system  to  remotely  manage  displays,  troubleshoot,  message,  and  schedule;  and  CleverStore  –  app  store  which
houses curated Android applications that are safe for teachers to install onto the display.

Mimio DS Series Non-Interactive Display

The  Mimio  DS  Series  displays  are  high-definition  displays  that  feature  enhanced  color  calibration,  precise  picture
quality  adjustment,  flicker-free  and  anti-glare  viewing  and  are  available  in  six  sizes  –  43",  55”,  65”,  75”,  86”,  and  98”.  The
Mimio DS series runs on Android 11 with seamless OTA upgrading, includes a quad-core CPU, 4 GB of RAM, and an invisible
IR receiver. Connectivity is made easy with multi-functional USB Type-C ports that enable 4K audio and video transmission,
network  connections,  charging  external  devices,  and  provide  access  to  external  microphone  and  camera.  The  displays  can  be
orientated  vertically  or  horizontally  and  tilt  up  to  15-degree  for  easy  viewing  from  high  places.  Multiple  displays  can  daisy
chain via HDMI ports, up to 3 by 3, and create a larger, unified display through screen splicing. The displays come with the
CleverLive management and digital signage platform for enhanced control of content on all displays.

MimioWall

MimioWall LED all-in-one display solution isdesigned to enrich any space, including classrooms, entryways, hallways,
shared spaces, and more. Available in nine different sizes (120” - 299”) including three ultra-wide screen options, the 4K UHD
Android  digital  display  and  built-in  speakers  provide  users  an  exceptional  and  immersive  experience.  Key  features  include
integrated design with no external devices; 3-in-1 board that integrates power supply, a receiving card, and hub board; smart
remote-control access to settings; plug-and-play system with one button on/off; and unified hardware. MimioWall enables users
to  screen-share  wirelessly  to/from  up  to  four  devices  (smartphones,  tablets,  laptops)  simultaneously.  Also  comes  with
CleverLive  digital  signage  platform  to  deliver  campus-  and  site-wide  communication  of  information,  announcements,  and
emergency alerts.

MimioTeach Interactive Whiteboard

MimioTeach  is  one  of  our  best  known  and  longest-lived  products.  Hundreds  of  thousands  of  MimioTeach  portable
digital  interactive  whiteboard  systems  and  its  predecessor  models  are  used  in  classrooms  around  the  world.  MimioTeach  can
turn any whiteboard (retrofit) into an interactive whiteboard in as little as 30 seconds. This portable product fits into a tote bag
with room for a small desktop projector, which is attractive to teachers who move from classroom to classroom. For schools
where “change is our normal,” MimioTeach eliminates the high cost of moving fixed-mount implementations.

MimioFrame Touch Kit

MimioFrame  can  turn  a  projection  (dry  erase)  board  into  an  Interactive  Whiteboard  in  10-15  minutes.  Millions  of
classrooms already have a conventional whiteboard and a non-interactive projector. MimioFrame uses infrared (IR) technology
embedded  in  the  four  sides  of  the  frame  to  turn  that  non-interactive  combination  into  a  modern  10touch-interactive  Digital
Classroom.  No  drilling  or  cutting  is  required,  MimioFrame  easily  and  quickly  attaches  with  industrial-strength  double-sided
tape.

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Classroom Audio and School-wide Communication Category

Juno

Juno® is the towering standard of sound quality that reinforces a teacher’s voice so that every student gets a FrontRow
seat. Juno sets up in minutes — and yet evenly fills the classroom with the kind of exciting, multi-layered stereo sound typical
of larger installed systems. Juno is superior to other products in the classroom audio category, offering premium features such as
feedback suppression, digital EQ, Bluetooth, and teacher voice priority. Juno is also uniquely expandable, with the ability to add
modules  for  additional  microphones,  speakers,  analog  page  override,  and  Conductor  compatibility  for  networked  campus
communication.

EzRoom

EzRoom™ is an integrated AV solution designed for larger capital projects such as technology retrofits or new school
construction. A highly customizable solution, EzRoom offers wall and ceiling mountable enclosures with pre-installed options
customized for a school’s needs, simplifying the installation process for AV integrators (resellers). EzRoom is an “everything
but  the  display”  solution,  providing  sound  reinforcement,  microphones,  speakers,  AV  control  devices,  AV  wall  plates,  and
networked cameras. The depth and breadth of the solution necessitates a service layer of pre-sale and post-sale support for the
channel,  supplied  by  FrontRow  architectural/engineering  consultant  liaisons,  providing  design  support,  and  the  FrontRow
Technical  Services  Group,  offering  system  commissioning  and  customization.  EzRoom  can  use  FrontRow’s  SmartIR
transmission technology or take advantage of FrontRow’s latest wireless voice technology – ELEVATE – that boasts the benefits
of digital RF (Radio Frequency) microphone systems, combined with flexible programmability and ease-of-use features found
nowhere  else.  The  ELEVATE  teacher  microphone  can  be  used  as  a  wearable  alert  device,  notifying  administrators  of  urgent
situations in the classroom.

Lyrik

The  Lyrik™  amplification  solution  is  a  small  yet  portable  system  for  instruction  and  audio  media  to  be  heard
anywhere;  from  the  classroom  to  the  bus  line,  or  even  online.  The  tower  has  an  integrated  rechargeable  battery  and  can  be
connected to a computer or other auxiliary audio source either directly using cables or wirelessly using Bluetooth®. Weighing
less than 10 pounds, Lyrik is designed to be taken anywhere voice reinforcement is needed whether on campus or off.

Conductor

The  Conductor™  School  Communication  System  is  an  IP-based,  campus-wide  communication  and  control  solution
that  allows  administrators  to  manage  their  day-to-day  operations  with  Bells,  Paging,  Intercom,  and  Alerts.  Built  on  a  client-
server architecture that utilizes a school’s existing network, Conductor streams digital audio directly to FrontRow ezRoom and
Juno  Connect  equipped  classrooms,  and  interfaces  with  legacy  analog  paging  systems  for  common  areas  to  provide
comprehensive  audio  coverage  for  announcements  and  alerts.  The  recently  introduced  Attention!  feature  integrates  the
CleverLive digital signage service with Conductor to synchronize audio with visual alerts to Clevertouch and Mimio interactive
panels to maximize the impact of school-wide or zone-specified communications.

STEM Category

Through the acquisitions of Modern Robotics, Robo3D and MyStemKits, Boxlight has added to its portfolio a growing

category of STEM (science, technology, engineering, and math) products.

Mimio MyBot

The  Mimio  MyBot  system  bridges  the  gap  between  learning  about  robotics  in  the  classroom  and  the  application  of
robotics in the real world. The intuitive and accessible system helps students develop core skills in programming, engineering,
and robotics. We provide a system to facilitate learning and ignite a passion in students with the freedom and flexibility to build,
code,  and  test  new  and  unique  models.  Mimio  MyBot  allows  students  to  explore  and  learn  freely  while  removing  common
obstacles such as requiring network infrastructure changes or expensive workstations.

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Robo3D

Robo E3, and the Robo E3 Pro are smart, safe, and simple 3D printers that come with access to over 300+ lessons of

3D printable STEM curriculum, replacement materials and accessories.

MyStemKits

MyStemKits  offers  hundreds  of  standards-driven  lesson  plans,  activities,  assessments,  and  Design  Challenges  for
grades  K-12  math  and  science  teachers.  High-quality  lessons  plans  are  developed  and  studied  by  The  Florida  Center  for
Research in Science. Technology, Engineering, and Mathematics (FCR-STEM), which is part of one of the nation’s oldest and
most productive university-based education research organizations.

MimioView document camera

Boxlight’s MimioView 350U is a 4K document camera that is integrated with MimioStudio to make the combination
easy to use with a single cable connection that carries power, video, and control. MimioView 350U is fully integrated into our
MimioStudio software solution and is controlled through MimioStudio’s applications menu. With two clicks, the teacher or user
can turn on, auto-focus, and illuminate the included LED lights for smooth high-definition images.

Educational Software Category

The  Mimio  suite  of  software  and  applications  is  a  combination  of  titles  from  acquisitions  of  Mimio,  Qwizdom,  and
Sahara (Clevertouch) - leading brands in the IWB and Formative Assessment Software Categories, and since then capabilities
have  been  built  upon  that  IP.  The  premise  of  our  software  is  to  provide  the  “glue”  that  integrates  the  hardware  to  provide  a
Connected  Classroom;  help  educators  inform  their  decisions  in  the  classroom,  through  more  systematic  data  about  their
students’  performance  and  behaviors;  make  learning  more  engaging,  interactive,  accessible,  and  innovative;  and  support
teachers in becoming more efficient in planning, preparation, reporting and analysis, and effective in instruction and assessment.

MimioStudio Interactive Instructional Software

MimioStudio  Interactive  Instructional  Software  enables  the  creation,  editing,  and  presentation  of  interactive
instructional lessons and activities. These lessons and activities can be presented and managed from the front of the classroom
using any of Boxlight’s front-of-classroom display systems including MimioTeach, ProColor Interactive LED panels, MimioPro
4, and MimioFrame. MimioStudio can also be operated using a mobile device such as an iPad or tablet  that fully replicates the
front-of-classroom display generated by MimioStudio. Operation with a mobile device is enabled via the three-user license for
MimioMobile, provided with the MimioStudio license that accompanies all front-of-classroom devices from Mimio.

MimioMobile Collaboration and Assessment Application

The  introduction  of  MimioMobile,  a  software  accessory  for  MimioStudio,  in  2014  introduced  a  new  era  of  fully
interactive student activities that are directly and immediately able to be displayed on the front-of-classroom interactive displays
through MimioStudio.

MimioMobile allows fully interactive activities to be pushed to student classroom devices. The students can manipulate
objects within the activities, annotate “on top” of them, and even create completely new content on their own handheld devices.
MimioMobile also enables assessment using mobile devices. The teacher can create multiple choice, true\false, yes\no, and text
entry assessment questions. The students can respond at their own pace and their answers are stored within MimioStudio from
which the teacher can display graphs showing student results. This “continuous assessment” provides formative assessment that
can  help  guide  the  teacher  as  to  whether  to  re-teach  the  material  if  understanding  is  low  or  move  forward  in  the  lesson.  We
believe that this interactive and student dependent instructional model can dramatically enhance student outcomes.

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OKTOPUS Instructional and Whiteboarding Software

Designed  specifically  for  touch-enabled  devices,  OKTOPUS  Interactive  Instructional  Software  enables  the  creation,
editing,  and  presentation  of  interactive  instructional  lessons  and  activities.  More  than  70  interactive  widgets,  tools,  and
classroom game modes make it simple and fun to run ad-hoc or pre-planned sessions. Similar to MimioStudio, these lessons and
activities  can  be  presented  and  managed  from  the  front  of  the  classroom  using  any  of  Boxlight’s  front-of-classroom  display
systems.

Notes+ Collaboration and Assessment Application

Notes+  is  a  software  accessory  for  use  with  OKTOPUS  Software  or  a  PPT  plugin  that  allows  students  to  view  and
interact  with  the  teacher  presentation  during  a  live  class  session.  Students  can  answer  questions,  annotate,  request  help,  and
share content with the main display from nearly any mobile device or laptop. Question types supported include multiple choice,
multiple mark, yes/no, true/false, sequencing, numeric and text response.

GameZones Multi-student Interactive Gaming Software

GameZones  allows  up  to  four  students  to  work  simultaneously  on  a  touch  screen  or  tablet  to  complete  interactive

‘game style’ activities. The solution is extremely simple and easy to use and includes over 150 educational activities.

MimioConnect Student Engagement Platform

MimioConnect  is  an  online  student  engagement  platform  that  combines  innovative  lesson  building  and  instructional
tools  to  create  an  active  learning  environment.  Teachers  can  create  interactive  content  and  assessments  from  scratch,  import
existing lessons and content, or draw from 10,000+ premade digital lessons in the lesson library. Built-in tools for collaboration,
instant  polling,  assessment,  student  monitoring  and  management,  make  classroom  teaching  and  discussion  more  impactful.
Other modes extend usage outside of the classroom, allowing students to complete homework or review daily lessons at their
own pace. MimioConnect also integrates deeply with all the major LMS (Learning Management System). Users can sign in and
access assignments through their LMS, use existing rosters, and pass data back to the LMS. MimioConnect helps teachers and
students connect, collaborate, and learn more effectively from anywhere, making it a perfect solution for inside and outside the
classroom.  A  MimioConnect  Classroom  license  (lifetime)  and  MimioConnect  Pro  license  (1  year)  accompanies  all  front-of-
classroom Boxlight displays.

LYNX

Designed  for  interactive  displays,  LYNX  Whiteboard  is  a  free-to-use  lesson  building  app,  enabling  student
collaboration  and  allowing  teachers  to  bring  vibrancy  to  their  lessons  with  a  built-in  media  search.  In  addition,  LYNX
Whiteboard provides searchable images, gifs and videos, allowing users to drag content into whiteboard presentations, all in a
safe  search  enabled  environment.  With  teacher  favorites,  such  as  Rainbow  Pen  and  Spotlight  included,  as  well  as  interactive
learning tools, LYNX Whiteboard is packed with features to make lessons flow seamlessly.

Peripherals and Accessories

We  offer  a  line  of  peripherals  and  accessories,  mobile  carts,  installation  accessories,  and  adjustable  wall-mount

accessories that complement our entire line of interactive LED flat panels and audio solutions.

LessonCam Instructional Camera

The  FrontRow  LessonCam  is  a  high-definition  Pan,  Tilt,  Zoom  (PTZ)  instructional  camera  with  12x  optical  zoom,
enabling  dynamic  and  engaging  remote-only,  hybrid,  or  asynchronous  learning.  LessonCam  integrates  with  the  FrontRow
ezRoom  and  Juno  classroom  audio  systems  with  popular  video  conferencing  solutions  such  as  Microsoft  Teams,  Microsoft
Skype, Zoom, Google Meet, and Cisco Webex. LessonCam is a stand-out educational tool for teachers who want to engage with
students wherever they are learning.

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Clever Peripherals

Our  ever  growing  suite  of  Clevertouch  products  includes  a  variety  of  Clever  Peripherals  such  as  OPS  PC  modules,
which  is  a  windows  i5  and  i7  modular  PC,  and  our  sensor  module  which  plugs  into  the  Clevertouch  screens  and  measures
temperature, humidity CO2 and air quality as well as an NFC.RFID sensor for logging into screens. In addition, we also offer
our  Clever  Connect  device  that  allows  users  to  mirror  directly  to  the  screen.  These  and  other  Clever  Peripherals  continue  to
enhance the user experience of our Clevertouch displays.

Boxlight-EOS Professional Development

Mimio  strives  to  provide  the  best  tools  to  help  teachers  improve  student  outcomes.  Through  our  subsidiary,  EOS
Education,  we  can  extend  our  commitment  to  schools  and  districts  by  providing  a  rich  portfolio  of  classroom  training,
professional  development,  and  educator  certification.  EOS  Education  provides  engaging  and  differentiated  professional
development  for  teachers  to  ensure  that  every  student  benefits  from  the  technology  tools  available  in  their  classrooms  and
schools. Programs can be customized, building comfort, confidence, and competence using the specific hardware and software
platforms available to each teacher.

EOS Education unique professional learning experiences are:

● Teacher-centric - We help teachers use the technology they have access to for their specific instructional purposes—we

go beyond just point and click.

● Hands-on - Teachers have an opportunity to practice new technical skills during sessions.

● Differentiated - Adjusted to current skills, knowledge, and teachers’ in-classroom practices.

● Job-embedded - Grounded in day-to-day teaching to be relevant, engaging, and practical to implement.

● Student context - Introducing technology tools to students and how to engage them with purpose.

Integration Strategy

We  plan  to  centralize  our  business  management  for  all  acquisitions  through  an  enterprise  resource  planning  (ERP)
system which offers streamlined subsidiary integration utilizing a multi-currency platform. We have strengthened and refined
the  process  to  drive  front-line  sales  forecasting  to  factory  production.  Through  the  ERP  system,  we  have  synchronized  five
separate accounting and customer relationship management systems through a cloud-based interface to improve inter-company
information sharing and allow management of the Company to have immediate access to snapshots of the performance of each
of our subsidiaries in a common currency. As we grow, organically or through acquisition, we plan to quickly integrate each
subsidiary  or  division  into  the  Company  to  allow  for  clearer  and  earlier  visibility  of  performance  to  enable  for  timely  and
effective business decisions.

Logistics (Suppliers)

Logistics is currently provided in the US by our Lawrenceville, Georgia facility and internationally by the Sahara team
in  London.  Together  these  teams  manage  multiple  third-party  logistics  partners  throughout  the  world  (3PL’s).  These  3PL
partners allow Boxlight to provide affordable freight routes and shorter delivery times to our customers by providing on-hand
inventory in localized markets. Contract manufacturing for Boxlight products is through original design manufacturer (ODM)
and original equipment manufacturer (OEM) partners according to Boxlight’s specific engineering specifications and utilizing
IP  developed  and  owned  by  Boxlight.  Boxlight’s  factories  for  ODM  and  OEM  are  located  in  the  USA,  Taiwan,  China  and
Germany.

Technical Support and Service

The Company currently has its core technical support and service centers located near Atlanta, GA, London, England,
and  Belfast,  Northern  Ireland.  Additionally,  the  Company’s  technical  support  division  is  responsible  for  the  repair  and
management  of  customer  service  cases,  resulting  in  more  than  60%  of  the  Company’s  customer  service  calls  ending  in
immediate closure of the

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applicable service case. We accomplish this as a result of the familiarity between our products and having specialized customer
service technicians hired internally and with key partners in certain international markets.

Sales and Marketing

Our  sales  force  consists  of  53  account  managers  in  EMEA  including  an  EMEA  sales  director,  43  regional  account
managers in the US including our Vice President Sales US, four sales heads based in Canada, one in Latin America and one in
Australia.  Our  marketing  team  consists  of  our  Vice  President  of  Marketing  Communications,  a  marketing  coordinator,  an
education specialist, and a graphic designer. Our sales force and marketing teams primarily drive sales of all Boxlight products
(including  our  Mimio,  Clevertouch,  FrontRow  and  EOS  brands)  throughout  North,  Central  and  South  America,  Europe,  the
Middle East and Asia. In addition, we go to market through an indirect channel distribution model and utilize traditional value-
added  resellers  and  support  them  with  training  to  become  knowledgeable  about  the  products  we  sell.  We  currently  have
approximately 800 resellers.

We  believe  we  offer  the  most  comprehensive  product  portfolio  in  today’s  education  technology  industry,  along  with
best-in-class  service  and  technical  support.  Our  award-winning,  interactive  classroom  technology  and  easy  to  use  line  of
classroom hardware and software solutions provide schools and districts with the most complete line of progressive, integrated
classroom technologies available worldwide.

We are also developing our Corporate, Higher Education and Government solutions and have separate sales teams in
both the US and EMEA focused on these areas.  Our expectation is that over time opportunity in these areas will expand to be as
large or potentially larger than our K-12 Education business.

Competition

The interactive education industry is highly competitive and characterized by frequent product introductions and rapid
technological  advances  that  have  substantially  increased  the  capabilities  and  use  of  interactive  flat  panels  and  interactive
whiteboards.  Interactive  displays,  since  the  time  they  were  first  introduced,  have  evolved  from  a  high-cost  technology  that
involves  multiple  components  requiring  professional  installers,  to  a  one-piece  technology  that  is  available  at  increasingly
reduced-price points and affords simple installations. With lowered technology entry barriers, we face heated competition from
other  interactive  display  developers,  manufacturers  and  distributors.  We  compete  with  other  developers,  manufacturers  and
distributors  of  interactive  displays  and  personal  computer  technologies,  tablets,  television  screens  and  smart  phones,  such  as
Smart Technologies, Promethean, ViewSonic, Dell Computers, Samsung, Panasonic and ClearTouch.

Even with these competitors, the market presents new opportunities in responding to demands to replace outdated and
failing  interactive  displays  with  more  affordable  and  simpler  solution  interactive  displays.  Our  ability  to  integrate  our
technologies  and  remain  innovative  and  develop  new  technologies  desired  by  our  current  and  potential  new  contract
manufacturing customers will determine our ability to grow our contract manufacturing divisions. In addition, we have begun to
see  expansion  in  the  market  to  sales  of  complementary  products  that  work  in  conjunction  with  the  interactive  technology,
including software, audio solutions, data capture and tablets.

Employees

As of December 31, 2022, we had the following distribution of employees:

Operations
Sales & Marketing
Administration

Total

 44
 98
 45
 187

None of our employees are represented by labor organizations. We consider our relationship with our employees to be
excellent.  A  majority  of  our  employees  have  entered  into  non-disclosure  and  non-competition  agreements  with  us  or  our
operating subsidiaries.

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Recent Financing

On December 31, 2021, the Company and substantially all of its direct and indirect subsidiaries, including Boxlight,
FrontRow, and Sahara as guarantors, entered into a maximum four-year $68.5 million term loan credit facility, dated December
31, 2021 (the “Credit Agreement”), with WhiteHawk Finance LLC, as lender (the “Lender”), and WhiteHawk Capital Partners,
LP, as collateral agent (“the Collateral Agent”). Under the terms of the Credit Agreement, the Company received an initial term
loan of $58.5 million on December 31, 2021 (the “Initial Loan”) and obtained a delayed draw facility of up to $10 million (the
“Delayed Draw”). The Initial Loan and the Delayed Draw are collectively referred to as the Term Loans. The “Term Loans”
bear  interest  at  the  LIBOR  rate  plus  10.75%;  provided  that  after  June  30,  2022,  if  the  Company’s  Senior  Leverage  Ratio  (as
defined in the Credit Agreement) is less than 2.25, the interest rate would be reduced to LIBOR plus 10.25%. Such terms are
subject to the Company maintaining a borrowing base in terms compliant with the Credit Agreement.

The  proceeds  of  the  Initial  Loan  were  used  to  finance  the  Company’s  acquisition  of  FrontRow,  and  pay  off  all
indebtedness owed to our then lenders. The terms of the Credit Agreement and related loans are described in more detail in the
section  entitled  “Management’s  Discussion  and  Analysis  of  Financial  Conditions  and  Results  of  Operations.”  Of  the  Initial
Loan, $8.5 million, was subject to repayment on February 28, 2022, with quarterly principal payments of $625,000 and interest
payments commencing March 31, 2022 and the $40.0 million remaining balance plus any Delayed Draw loans becoming due
and payable in full on December 31, 2025.

In  conjunction  with  its  receipt  of  the  Initial  Loan,  the  Company  issued  to  the  Lender  (i)  528,169  shares  of  Class A
common  stock  (the  “Shares”),  which  Shares  were  registered  pursuant  to  our  existing  shelf  registration  statement  and  were
delivered  to  the  Lender  in  January  2022,  (ii)  a  warrant  to  purchase  2,043,291  shares  of  Class A  common  stock  (subject  to
increase to the extent of 3% of any Series B and Series C convertible preferred stock converted into Class A common stock),
exercisable  at  $2.00  per  share  (the  “Warrant”),  which  Warrant  may  be  subject  to  repricing  on  March  31,  2022  based  on  the
arithmetic volume weighted average prices for the 30 trading days prior to March 31, 2022, in the event our stock is then trading
below $2.00 per share, (iii) a 3% fee of $1,800,000 and (iv) a $500,000 original issue discount. In addition, the Company agreed
to register for resale the shares issuable upon exercise of the Warrant. The Company also incurred agency fees, legal fees and
other costs in connection with the execution of the Credit Agreement.  Based on the arithmetic volume weighted average prices
of the Company’s Class A common stock for the 30 trading days prior to March 31, 2022, the exercise price of the Warrant was
reduced  to  $1.19  per  share  and  the  shares  increased  to  3,434,103.  On  July  22,  2022,  the  Company  entered  into  a  Securities
Purchase  Agreement  with  an  accredited  institutional  investor.  According  to  the  terms  of  the  WhiteHawk  agreement,  this
purchase agreement triggered a reduction of the exercise price of the warrants. The warrants were repriced to $1.10 and shares
increased to 3,715,075.

On March 29, 2022, the Company received a notice from the collateral agent, alleging, among other things, defaults as
a result of (i) failure to repay $8.5 million of the facility by February 28, 2022, (ii) non-compliance with the borrowing base
resulting  in  the  Company  being  in  an  over  advance  position  under  the  Credit  Agreement,  and  (iii)  failure  to  timely  provide
certain reports and documents.  As a result, all accrued and unpaid interest owed under the Term Loan, became subject to a post-
default interest rate equal to the highest interest rate allowed for under the Credit Agreement plus 2.50% until such time as the
events of default were either waived or cured.

In  February  2022,  WhiteHawk  and  the  Company  agreed  in  principle  to  an  extension  of  the  February  2022
Payment.  Pursuant  to  amendment  to  the  Credit  Agreement,  dated  April  4,  2022,  the  Collateral  Agent  and  Lender  agreed  to
extend the terms of repayment of the $8.5 million originally due on February 28, 2022 until February 28, 2023 and waive and/or
otherwise extend compliance with certain other terms of the Credit Agreement in order to allow the Loan Parties adequate time
to comply with such terms. In July 2022, the Company and WhiteHawk agreed that the notice had inadvertently included the
default with respect to the failure to repay $8.5 million of the facility. As a result, notwithstanding the notice, both WhiteHawk
and the Company have agreed that the Company was not in default in making the February 2022 Payment to WhiteHawk.

The principal elements of the April amendment included (a) an extension of time to repay $8.5 million of the principal
amount of the term loan from February 28, 2022 to February 28, 2023, and (b) forbearance on $3,500,000 in over advances until
May  16,  2022  to  allow  the  Company  to  come  into  compliance  with  the  borrowing  base  requirements  set  forth  in  the  Credit
Agreement.    In  such  connection,  the  Loan  Parties  have  obtained  credit  insurance  on  certain  key  customers  whose  principal
offices are located in the European Union and Australia as, without the credit insurance, their accounts owed to the Loan Parties
had  been  deemed  ineligible  for  inclusion  in  the  borrowing  base  calculation  primarily  due  to  the  perceived  inability  of  the
Collateral Agent to enforce security interests on such

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accounts.  In  addition,  the  Lender  and  Collateral  Agent  agreed  to  (i)  reduce,  through  September  30,  2022,  the  minimum  cash
reserve requirement for the Loan Parties, (ii) reduce the interest rate by 50 basis points (to LIBOR plus 9.75%) after delivery of
the  Loan  Parties’  September  30,  2023  financial  statements,  subject  to  the  Loan  Parties  maintaining  1.75  EBITDA  coverage
ratio, and (iii) waive all prior Events of Default under the Credit Agreement. In conjunction with the amendment to the Credit
Agreement, the parties entered into an amended and restated fee letter (the “Fee Letter”) pursuant to which the parties agreed to
prepayment  premiums  of  (i)  5%  for  payments  made  on  or  before  December  31,  2022,  (ii)  4%  for  payments  made  between
January 1, 2023 and December 31, 2023, and (iii) 2% for payments made between January 1, 2024 and December 31, 2025.
 Furthermore, the parties agreed that no prepayment premiums would be payable with respect to the first $5.0 million paid under
the  Term  Loan,  any  payments  made  in  relation  to  the  $8.5  million  due  on  or  before  February  28,  2023,  any  required
amortization payments under the Credit Agreement and any mandatory prepayments by way of ECF or casualty events.

On June 21, 2022, the Company and substantially all of its direct and indirect subsidiaries (together with the Company,
the  “Loan  Parties”),  entered  into  a  second  amendment  (the  “Second  Amendment”)  to  the  four-year  term  loan  credit  facility,
originally entered into December 31, 2021 and as amended on April 4, 2022, with the Collateral Agent and Lender. The Second
Amendment to the Credit Agreement was entered into for purposes of the Lender funding a $2.5 million delayed draw term loan
and  adjusting  certain  terms  to  the  Credit  Agreement,  including  adjusting  the  Applicable  Margin  (as  defined  in  the  Second
Amendment) to 13.25% for  LIBOR Rate Loans and 12.25% for Reference Rate Loans, increasing the definition of change of
control  from  33%  voting  power  to  40%  voting  power,  requiring  the  Company  to  engage  a  financial  advisor,  and  allowing
additional time, until July 15, 2022, for the Company to come into compliance with certain borrowing base requirements set
forth in the Second Amendment to the Credit Agreement, among other adjustments.

ITEM 1A. RISK FACTORS

An investment in our securities involves a high degree of risk. You should carefully consider all of the risks described
below, together with the other information contained in this Annual Report on Form 10-K, including our financial statements
and  related  notes,  before  making  a  decision  to  invest  in  our  securities.  If  any  of  the  following  events  occur,  our  business,
financial condition and operating results may be materially adversely affected. In that event, the trading price of our securities
could decline, and you could lose all or part of your investment.

Summary Risk Factors

Some of the factors that could materially and adversely affect our business, financial condition, results of operations

and cash flows include, but are not limited to, the following:

● Unfavorable global economic or political conditions, including the ongoing conflict between Russia and Ukraine may
adversely affect our business, financial condition, results from operations, or the businesses of our suppliers, vendors
and logistics partners;

● our inability to predict or anticipate the duration or adapt to the long-term economic and business consequences of a

global pandemic linked to the COVID-19 pandemic or any future pandemics;

● our inability to predict or adapt to the unstable market and economic conditions of the global economy;

● our ability to continue to attract and retain customers;

● our ability to sell additional products and services to customers;

● our ability to raise funds in a timely fashion and successfully manage cash flow needs and financing plans;

● our ability to successfully maintain a competitive position in our industry and market;

● our ability to manage our business and sell our products within a changing and evolving industry environment;

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● our ability to locate and leverage potential growth opportunities;

● our ability to achieve expected technological advances by us or by third parties and our ability to leverage them;

● our ability to integrate our business acquisitions fully and successfully into Boxlight’s existing business and platform;

● the effects of future regulation; and

● our ability to protect and monetize our intellectual property.

Risks Related to Our Business, Operations and Financial Condition

Unfavorable  global  economic  or  political  conditions,  including  the  ongoing  conflict  between  Russia  and  Ukraine  may
adversely affect our business, financial condition, or results of operations.

Our results of operations could be adversely affected by general conditions in the global economy and in the global
financial markets. Inflation rates, particularly in the United States, have increased recently to levels not seen in years. Increased
inflation may result in increased operating costs (including our labor costs), reduced liquidity, and limitations on our ability to
access credit or otherwise raise debt and equity capital. In addition, the United States Federal Reserve has raised, and may again
raise,  interest  rates  in  response  to  concerns  about  inflation.  Increases  in  interest  rates,  especially  if  coupled  with  reduced
government  spending  and  volatility  in  financial  markets,  may  have  the  effect  of  further  increasing  economic  uncertainty  and
heightening these risks, which may impact our ability to raise additional capital in the future. The March 2023 failure of Silicon
Valley  Bank  and  its  potential  near-  and  long-term  effects  on  the  overall  banking  industry,  may  also  adversely  affect  our
operations  and  stock  price.  In  addition,  U.S.  and  global  markets  are  experiencing  volatility  and  disruption  following  the
escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine.

On  February  24,  2022,  a  full-scale  military  invasion  of  Ukraine  by  Russian  troops  began.  Although  the  length  and
impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine has led to market disruptions, including
significant volatility in commodity prices, credit and capital markets, as well as supply chain disruptions. While neither Ukraine
nor  Russia  is  a  key  supplier  of  ours,  the  scope,  intensity,  duration  and  outcome  of  the  ongoing  war  is  uncertain  and  its
continuation or escalation could have a material adverse effect on our business due to the general impact on the global supply
chain and prices of certain commodities. While we presently have no business or direct trade relationships with entities located
in  Russia  or  Ukraine,  the  ongoing  conflict  between  Russia  and  Ukraine  could  potentially  cause  supply  chain  disruptions  that
could disrupt our business should any of our end-suppliers rely on supplies, products or shipments from those regions.

In response to the war, the United States, other North Atlantic Treaty Organization (“NATO”) member states, as well as
non-member  states,  have  announced  targeted  economic  sanctions  on  Russia,  certain  Russian  citizens  and  enterprises.  Any
continuation or escalation of the war may trigger a series of additional economic and other sanctions. Certain companies have
experienced negative reactions from their investors, employees, customers, or other stakeholders as a result of their action or
inaction  related  to  the  war  between  Russia  and  Ukraine.  We  continue  to  monitor  the  reactions  of  our  investors,  employees,
customers  and  other  stakeholders  and,  as  of  the  date  of  this  report,  have  neither  experienced  any  material  adverse  financial
impacts nor suffered from the loss of key customers or employees.

In  addition,  the  risk  of  cybersecurity  incidents  has  increased  in  connection  with  the  ongoing  war,  driven  by
justifications  such  as  retaliation  for  the  sanctions  imposed  in  conjunction  with  the  war,  or  in  response  to  certain  companies’
continued operations in Russia. For example, the war has been accompanied by cyberattacks against the Ukrainian government
and other countries in the region. It is possible that these attacks could have collateral effects on additional critical infrastructure
and financial institutions globally, which could adversely affect our operations and could increase the frequency and severity of
cyber-based attacks against our information technology systems. While we have taken actions to mitigate such potential risks,
the proliferation of malware from the war into systems unrelated to the war or cyberattacks against U.S. companies in retaliation
for U.S. sanctions against Russia or U.S. support of Ukraine, could also adversely affect our operations.

We  insure  ourselves  against  many  types  of  risks;  however,  while  this  insurance  may  mitigate  certain  of  the  risks
associated with general market disruptions, including the risk related to the banking system and the ongoing war in Ukraine, our
level of insurance

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may not cover all losses we could incur. The potential effects of these conditions could have a material adverse effect on our
business, results of operations and financial condition.

War, terrorism, other acts of violence, changing circumstances related to the COVID-19 Pandemic or potential effects of
future pandemics, are unpredictable and could adversely affect our business operations and the market for our products.

War, terrorism, other acts of violence or natural or man-made disasters, including a global pandemic, may affect the
markets in which the Company operates, the Company’s customers, the Company’s delivery of products and customer service,
and could have a material adverse impact on our business, results of operations, or financial conditions.

The Company’s business may be adversely affected by instability, disruption or destruction in a geographic region in
which it operates, regardless of cause, including war, terrorism, riot, civil insurrection or social unrest, and natural or man-made
disasters, including famine, food, fire, earthquake, storm or pandemic events and spread of disease (including the COVID-19
outbreak  which  commenced  in  2020).  Such  events  may  cause  customers  to  suspend  their  decisions  on  using  the  Company’s
products  and  services,  make  it  impossible  to  attend  or  sponsor  trade  shows  or  other  conferences  in  which  our  products  and
services are presented to customers and potential customers, cause restrictions, postponements and cancellations of events that
attract large crowds and public gatherings such as trade shows at which we have historically presented our products, and give
rise to sudden significant changes in regional and global economic conditions and cycles that could interfere with purchases of
goods or services, commitments to develop new products. These events also pose significant risks to the Company’s personnel
and to physical facilities, transportation and operations, which could materially adversely affect the Company’s financial results.

While conditions surrounding the COVID-19 pandemic seem to have stabilized, there is nonetheless a risk related to
modification of the traditional classroom setting, similar to what occurred during 2020 to 2021 when many classrooms were all
virtual, that may result in reduced demand for our classroom solutions, including reduced demand for our interactive displays
due to extended or indefinite distance and digital learning.

There is also a risk of reduced borrowing with our factoring and purchase order financing facilities, as well as risk of

inability to raise additional capital.

We generate a substantial portion of our revenue from the sale of our display products, and any significant reduction in sales
of these products would materially harm our business.

For the year ended December 31, 2022, we generated approximately 80% of our revenues from sales of our interactive
display products, consisting of interactive flat panels and whiteboards. A decrease in demand for our interactive displays would
significantly reduce our revenue. If any of our competitors introduces attractive alternatives to our interactive displays, we could
experience a significant decrease in sales as customers migrate to those alternative products.

Our business is subject to seasonal fluctuations, which may cause our operating results to fluctuate from quarter-to-quarter
and adversely affect our working capital and liquidity throughout the year.

Our revenues and operating results normally fluctuate as a result of seasonal variations in our business, driven largely
by  the  purchasing  cycles  of  the  educational  market.  Traditionally,  the  bulk  of  expenditures  by  school  districts  occur  in  the
second  and  third  calendar  quarters  after  receipt  of  budget  allocations.  We  expect  quarterly  fluctuations  in  our  revenues  and
operating results to continue. These fluctuations could result in volatility and adversely affect our cash flow. As our business
grows, these seasonal fluctuations may become more pronounced. As a result, we believe that sequential quarterly comparisons
of our financial results may not provide an accurate assessment of our financial position.

Our working capital requirements and cash flows are subject to fluctuation, which could have an adverse effect on our
financial condition.

Our working capital requirements and cash flows have historically been, and are expected to continue to be, subject to
quarterly  and  yearly  fluctuations,  depending  on  a  number  of  factors.  Factors  which  could  result  in  cash  flow  fluctuations
include:

● the level of sales and the related margins on those sales;

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● the collection of receivables;

● the timing and size of purchases of inventory and related components; and

● the timing of payment on payables and accrued liabilities.

If we are unable to manage fluctuations in cash flow, our business, operating results and financial condition may be

materially adversely affected. For example, we may be unable to make required interest payments on our indebtedness.

We operate in a highly competitive industry.

We are engaged in the interactive education industry. We face substantial competition from developers, manufacturers
and distributors of interactive learning products and solutions, including interactive flat-panel displays, interactive whiteboards
and micro-computer data logging products and any new product we may offer in the future. The industry is highly competitive
and  characterized  by  frequent  product  introductions  and  rapid  technological  advances  that  have  substantially  increased  the
capabilities and use of interactive flat-panel displays, interactive whiteboards, and micro-computer-based logging technologies
and combinations of them. We face increased competition from companies with strong positions in certain markets we serve,
and  in  new  markets  and  regions  we  may  enter.  These  companies  manufacture  and/or  distribute  new,  disruptive  or  substitute
products  that  compete  for  the  pool  of  available  funds  that  previously  could  have  been  spent  on  interactive  displays  and
associated products.

Many  of  these  competitors  have,  and  our  potential  competitors  may  have,  significantly  greater  financial  and  other
resources than we do and have spent, and may continue to spend, significant amounts of resources to try to enter or expand their
presence in the market. In addition, low-cost competitors have appeared in China and other countries. We may not be able to
compete effectively against these current and future competitors. Increased competition or other competitive pressures have and
may continue to result in price reductions, reduced margins or loss of market share, any of which could have a material adverse
effect on our business, financial condition or results of operations.

Some of our customers are required to purchase equipment by soliciting proposals from several sources and, in some
cases, are required to purchase from the lowest bidder. While we attempt to price our products competitively, based upon the
relative features they offer, our competitors’ prices and other factors, we are often not the lowest bidder and, in such cases, may
lose sales.

Competitors  may  be  able  to  respond  to  new  or  emerging  technologies  and  changes  in  customer  requirements  more
effectively and faster than we can or devote greater resources to the development, promotion and sale of products than we can.
Current  and  potential  competitors  may  establish  cooperative  relationships  among  themselves  or  with  third  parties,  including
through mergers or acquisitions, to increase the ability of their products to address the needs of customers. If these interactive
display  competitors  or  other  substitute  or  alternative  technology  competitors  acquire  significantly  increased  market  share,  it
could have a material adverse effect on our business, financial condition or results of operations.

If we are unable to continually enhance our products and to develop, introduce and sell new technologies and products at
competitive prices and in a timely manner, our business will be harmed.

The  market  for  interactive  learning  and  collaboration  solutions  is  still  emerging  and  evolving.  It  is  characterized  by
rapid  technological  change  and  frequent  new  product  introductions,  many  of  which  may  compete  with,  be  considered  as
alternatives to or replace our interactive displays. For example, we have recently observed significant sales of tablet computers
by competitors to school districts in the U.S. whose technology budgets could otherwise have been used to purchase interactive
displays. Accordingly, our future success will depend upon our ability to enhance our products and to develop, introduce and
sell  new  technologies  and  products  offering  enhanced  performance  and  functionality  at  competitive  prices  and  in  a  timely
manner.

The  development  of  new  technologies  and  products  involves  time,  substantial  costs  and  risks.  Our  ability  to
successfully develop new technologies will depend in large measure on our ability to maintain a technically skilled research and
development staff and to adapt to technological changes and advances in the industry. The success of new product introductions
depends  on  a  number  of  factors,  including  timely  and  successful  product  development,  market  acceptance,  the  effective
management  of  purchase  commitments  and  inventory  levels  in  line  with  anticipated  product  demand,  the  availability  of
components in appropriate quantities and costs to meet anticipated demand, the risk that new products may have quality or other
defects and our ability to manage distribution and production

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issues related to new product introductions. If we are unsuccessful in selling the new products that we develop and introduce, or
any future products that we may develop, we may carry obsolete inventory and have reduced available working capital for the
development of other new technologies and products.

If we are unable, for any reason, to enhance, develop, introduce and sell new products in a timely manner, or at all, in

response to changing market conditions or customer requirements or otherwise, our business will be harmed.

We may not be successful in our strategy to increase sales in the business and government market.

The majority of our revenue has been derived from sales to the education market. Our business strategy contemplates
expanding our sales in both the education market, as well as to the business and government training sectors. However, to date,
there  has  not  been  widespread  adoption  of  interactive  displays  and  collaboration  solutions  in  the  business  and  government
market,  and  these  solutions  may  fail  to  achieve  wide  acceptance  in  this  market.  Successful  expansion  into  the  business  and
government  markets  will  require  us  to  augment  and  develop  new  distribution  and  reseller  relationships,  and  we  may  not  be
successful in developing those relationships. In addition, widespread acceptance of our interactive solutions may not occur due
to lack of familiarity with how our products work, the perception that our products are difficult to use and a lack of appreciation
of the contribution they can make in the business and government markets. In addition, the Boxlight brands are less recognized
in these markets as compared to the education market. A key part of our strategy to grow in the business and government market
is  to  develop  strategic  alliances  with  companies  in  the  unified  communications  and  collaboration  sector,  and  there  can  be  no
assurance that these alliances will help us to successfully grow our sales in this market.

Furthermore, our ability to successfully grow in the business and government market depends upon revenue and cash
flows derived from sales to the education market. As the education market represents a significant portion of our revenue and
cash flow, we utilize cash from sales in the education market for our operating expenses. If we cannot continue to augment and
develop new distributor and reseller relationships, market our brand, develop strategic alliances and innovate new technologies,
we may not be successful in our strategy to grow in the business and government market.

As a result of market saturation, our future sales of interactive displays in developed markets may slow or decrease.

As a result of the high levels of penetration in developed markets, the education market for interactive displays in the
U.S., U.K. and Australia may have reached saturation levels. Future sales growth in those markets and other developed markets
with similar penetration levels may, as a result, be difficult to achieve, and our sales of interactive displays may decline in those
countries. If we are unable to replace the revenue and earnings, we have historically derived from sales of interactive displays to
the  education  market  in  these  developed  markets,  whether  through  sales  of  additional  products,  sales  in  other  underserved
markets,  such  as  Africa,  Latin  America  and  Asia,  sales  in  the  business  and  government  market  or  otherwise,  our  business,
financial condition and results of operations may be materially adversely affected.

We face significant challenges growing our sales in foreign markets.

For our products to gain broad acceptance in all markets, we may need to develop customized solutions specifically
designed for each country in which we seek to grow our sales and to sell those solutions at prices that are competitive in that
country. For example, while our hardware requires only minimal modification to be usable in other countries, our software and
content require significant customization and modification to adapt to the needs of foreign customers. Specifically, our software
will need to be adapted to work in a user-friendly way in several languages and alphabets, and content that fits the specific needs
of foreign customers (such as, for example, classroom lessons adapted to specific foreign curricula) will need to be developed. If
we are not able to develop, or choose not to support, customized products and solutions for use in a particular country, we may
be unable to compete successfully in that country and our sales growth in that country will be adversely affected. We cannot
assure you that we will be able to successfully develop or choose to support customized solutions for each foreign country in
which we seek to grow our sales or that our solutions, if developed, will be competitive in the relevant country.

Growth  in  many  foreign  countries  will  require  us  to  price  our  products  competitively  in  those  countries.  In  certain
developing countries, we have been and may continue to be required to sell our products at prices significantly below those that
we are currently charging in developed countries. Such pricing pressures could reduce our gross margins and adversely affect
our revenue.

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Our customers’ experience with our products will be directly affected by the availability and quality of our customers’
Internet  access.  We  are  unable  to  control  broadband  penetration  rates,  and,  to  the  extent  that  broadband  growth  in  emerging
markets slows, our growth in international markets could be hindered.

In  addition,  we  will  face  lengthy  and  unpredictable  sales  cycles  in  foreign  markets,  particularly  in  countries  with
centralized  decision  making.  In  these  countries,  particularly  in  connection  with  significant  technology  product  purchases,  we
have  experienced  recurrent  requests  for  proposals,  significant  delays  in  the  decision-making  process  and,  in  some  cases,
indefinite deferrals of purchases or cancellations of requests for proposals. If we are unable to overcome these challenges, the
growth of our sales in these markets would be adversely affected, and we may incur unrecovered marketing costs, impairing our
profitability.

Our suppliers may not be able to always supply components or products to us on a timely basis and on favorable terms, and
as a result, our dependency on third party suppliers has adversely affected our revenue and may continue to do so.

We do not manufacture any of the products we sell and distribute and, therefore, rely on our suppliers for all products
and components and depend on obtaining adequate supplies of quality components on a timely basis with favorable terms. Some
of those components, as well as certain complete products that we sell are provided to us by only one key supplier or contract
manufacturer. We are subject to disruptions in our operations if our sole or limited supply contract manufacturers decrease or
stop production of components and products, or if such suppliers and contract manufacturers do not produce components and
products  of  sufficient  quantity.  Alternative  sources  for  our  components  are  not  always  available.  Many  of  our  products  and
components are manufactured overseas, so they have long lead times, and events such as local disruptions, natural disasters or
political conflict may cause unexpected interruptions to the supply of our products or components. In addition, we do not have
written supply agreements with our suppliers. Although we are endeavoring to enter into written agreements with certain of our
suppliers, we cannot assure that our efforts will be successful. Furthermore, due to the impacts of the COVID-19 pandemic the
company may experience material adverse impacts on its supply chain.

We rely on highly skilled personnel, and, if we are unable to attract, retain or motivate qualified personnel, we may not be
able to operate our business effectively.

Our  success  depends  in  large  part  on  continued  employment  of  senior  management  and  key  personnel  who  can
effectively  operate  our  business,  as  well  as  our  ability  to  attract  and  retain  skilled  employees.  Competition  for  highly  skilled
management, technical, research and development and other employees is intense in the high-technology industry and we may
not be able to attract or retain highly qualified personnel in the future. In making employment decisions, particularly in the high-
technology industry, job candidates often consider the value of the equity awards they would receive in connection with their
employment.  Our  long-term  incentive  programs  may  not  be  attractive  enough  or  perform  sufficiently  to  attract  or  retain
qualified personnel.

If  any  of  our  employees  leaves  us,  and  we  fail  to  effectively  manage  a  transition  to  new  personnel,  or  if  we  fail  to
attract and retain qualified and experienced professionals on acceptable terms, our business, financial condition and results of
operations could be adversely affected.

Our success also depends on our having highly trained financial, technical, recruiting, sales and marketing personnel.
We  will  need  to  continue  to  hire  additional  personnel  as  our  business  grows.  A  shortage  in  the  number  of  people  with  these
skills or our failure to attract them to our company could impede our ability to increase revenues from our existing products and
services, ensure full compliance with federal and state regulations, or launch new product offerings and would have an adverse
effect on our business and financial results.

We may have difficulty in entering into and maintaining strategic alliances with third parties.

We have entered into and we may continue to enter into strategic alliances with third parties to gain access to new and
innovative technologies and markets. These parties are often large, established companies. Negotiating and performing under
these arrangements involves significant time and expense, and we may not have sufficient resources to devote to our strategic
alliances, particularly those

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with  companies  that  have  significantly  greater  financial  and  other  resources  than  we  do.  The  anticipated  benefits  of  these
arrangements may never materialize and performing under these arrangements may adversely affect our results of operations.

We use resellers and distributors to promote and sell our products.

Substantially  all  our  sales  are  made  through  resellers  and  distributors.  Industry  and  economic  conditions  have  the
potential to weaken the financial position of our resellers and distributors. Such resellers and distributors may no longer sell our
products, or may reduce efforts to sell our products, which could materially adversely affect our business, financial condition
and  results  of  operations.  Furthermore,  if  our  resellers  and  distributors’  abilities  to  repay  their  credit  obligations  were  to
deteriorate and result in the write-down or write-off of such receivables, it would negatively affect our operating results and, if
significant, could materially adversely affect our business, financial condition and results of operations.

In addition, our resellers and most of our distributors are not contractually required to sell our products exclusively and
may  offer  competing  interactive  display  products,  and  therefore  we  depend  on  our  ability  to  establish  and  develop  new
relationships  and  to  build  on  existing  relationships  with  resellers  and  distributors.  We  cannot  assure  that  our  resellers  and
distributors will act in a manner that will promote the success of our products. Factors that are largely within the control of those
resellers and distributors but are important to the success of our products include:

● the degree to which our resellers and distributors actively promote our products;

● the extent to which our resellers and distributors offer and promote competitive products; and

● the quality of installation, training and other support services offered by our resellers and distributors.

In addition, if some of our competitors offer their products to resellers and distributors on more favorable terms or have
more products available to meet their needs, there may be pressure on us to reduce the price of our products, or those resellers
and  distributors  may  stop  carrying  our  products  or  de-emphasize  the  sale  of  our  products  in  favor  of  the  products  of  these
competitors.  If  we  do  not  maintain  and  continue  to  build  relationships  with  resellers  and  distributors  our  business  will  be
harmed.

If our electronic data is compromised, our business could be significantly harmed.

We and our business partners maintain significant amounts of data electronically in locations around the world. This
data relates to all aspects of our business, including current and future products under development, as well as certain customer,
consumer,  supplier,  partner  and  employee  data.  We  maintain  systems  and  processes  designed  to  protect  this  data,  but
notwithstanding  such  protective  measures,  there  is  a  risk  of  intrusion,  cyber-attacks  or  tampering  that  could  compromise  the
integrity and privacy of this data. In addition, we provide confidential and proprietary information to our third-party business
partners in certain cases where doing so is necessary to conduct our business. While we obtain assurances from those parties that
they  have  systems  and  processes  in  place  to  protect  such  data,  and  where  applicable,  that  they  will  take  steps  to  assure  the
protections  of  such  data  by  third  parties,  nonetheless  those  partners  may  also  be  subject  to  data  intrusion  or  otherwise
compromise  the  protection  of  such  data.  Any  compromise  of  the  confidential  data  of  our  customers,  consumers,  suppliers,
partners,  employees  or  ourselves,  or  failure  to  prevent  or  mitigate  the  loss  of  or  damage  to  this  data  through  breach  of  our
information  technology  systems  or  other  means  could  substantially  disrupt  our  operations,  harm  our  customers,  consumers,
employees and other business partners, damage our reputation, violate applicable laws and regulations, subject us to potentially
significant costs and liabilities and result in a loss of business that could be material.

A failure to keep pace with developments in technology could impair our operations or competitive position.

Our business continues to demand the use of sophisticated systems and technology. These systems and technologies
must be refined, updated and replaced with more advanced systems on a regular basis in order for us to meet our customers’
demands and expectations. If we are unable to do so on a timely basis or within reasonable cost parameters, or if we are unable
to appropriately and timely train our employees to operate any of these new systems, our business could suffer. We also may not
achieve the benefits that we anticipate from any new system or technology, such as fuel abatement technologies, and a failure to
do so could result in higher than anticipated costs or could impair our operating results.

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An information security incident, including a cybersecurity breach, could have a negative impact to the Company’s business
or reputation

To meet business objectives, the Company relies on both internal information technology (IT) systems and networks,
and those of third parties and their vendors, to process and store sensitive data, including confidential research, business plans,
financial information, intellectual property, and personal data that may be subject to legal protection. The extensive information
security  and  cybersecurity  threats,  which  affect  companies  globally,  pose  a  risk  to  the  security  and  availability  of  these  IT
systems  and  networks,  and  the  confidentiality,  integrity  and  availability  of  the  Company’s  sensitive  data.  The  Company
continually assesses these threats and makes investments to increase internal protection, detection and response capabilities, as
well as ensure the Company’s third-party providers have required capabilities and controls to address these risks. To date, the
Company  has  not  experienced  any  material  impact  to  the  business  or  operations  resulting  from  information  or  cybersecurity
attacks; however, because of the frequently changing attack techniques, along with the increased volume and sophistication of
the  attacks,  there  is  the  potential  for  the  Company  to  be  adversely  impacted.  This  impact  could  result  in  reputational,
competitive,  operational  or  other  business  harm  as  well  as  financial  costs  and  regulatory  action.  The  Company  maintains
cybersecurity insurance in the event of an information security or cyber incident; however, the coverage may not be sufficient to
cover all financial losses.

Risks Related to our Industry and Regulations.

Decreases in, or stagnation of, spending or changes in the spending policies or budget priorities for government funding of
schools, colleges, universities, other education providers or government agencies may have a material adverse effect on our
revenue.

Our customers include primary and secondary schools, colleges, universities, other education providers and, to a lesser
extent, government agencies, each of which depends heavily on government funding. The effects and duration of the COVID-19
pandemic,  which  has  resulted  in  worldwide  disruptions  in  supply  chains  and  economic  recession,  are  as  yet  unknown.  We
anticipate that the COVID-19 pandemic and resulting economic recession could cause a substantial disruption in, decrease or
stagnation  of,  spending  and  budget  priorities  for  government  funding  of  schools,  colleges,  universities  and  other  education
providers  and  government  agencies.  The  economy  had  only  recently  experienced  a  similar  disruption  from  the  worldwide
recession  of  2008  and  subsequent  sovereign  debt  and  global  financial  crisis,  which  resulted  in  substantial  declines  in  the
revenues and fiscal capacity of many national, federal, state, provincial and local governments. Like in the 2008 financial crisis,
where many of those governments have reacted to the decreases in revenues by cutting funding to educational institutions, we
anticipate  that  governments  and  governmental  entities  will  react  similarly  to  the  economic  crisis  and  resulting  decreases  in
revenue caused by the COVID-19 pandemic by cutting funding to educational institutions. If our products are not a high priority
expenditure for such institutions, or if such institutions allocate expenditures to substitute alternative technologies, we could lose
revenue.

Any additional decrease in, stagnation of or adverse change in national, federal, state, provincial or local funding for
primary  and  secondary  schools,  colleges,  universities,  or  other  education  providers  or  for  government  agencies  that  use  our
products could cause our current and prospective customers to further reduce their purchases of our products, which could cause
us to lose additional revenue. In addition, a specific reduction in governmental funding support for products such as ours could
also cause us to lose revenue.

If our products fail to comply with consumer product or environmental laws, it could materially affect our financial
performance.

Because  we  sell  products  used  by  children  in  classrooms  and  because  our  products  are  subject  to  environmental
regulations in some jurisdictions in which we conduct business and sell our products, we are and will be required to comply
with a variety of product safety, product testing and environmental regulations, including compliance with applicable laws and
standards with respect to lead content and other child safety and environmental issues. If our products do not meet applicable
safety  or  regulatory  standards,  we  could  experience  lost  sales,  diverted  resources  and  increased  costs,  which  could  have  a
material adverse effect on our financial condition and results of operations. Events that give rise to actual, potential or perceived
product safety or environmental concerns could expose us to government enforcement action or private litigation and result in
product recalls and other liabilities. In addition, negative consumer perceptions regarding the safety of our products could cause
negative publicity and harm our reputation.

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Risks Related to our Foreign Operations.

We are subject to risks inherently related to our foreign operations.

Sales outside the US represented 46% of our revenues for the year ended December 31, 2022. We have committed, and

may continue to commit, significant resources to our international operations and sales and marketing activities.

Our significant foreign operations subject us to several risks related to these international business activities that may
increase costs, lengthen sales cycles and require significant management attention. International operations carry certain risks
and  associated  costs,  such  as  the  complexities  and  expense  of  administering  a  business  abroad,  complications  in  compliance
with, and unexpected changes in regulatory requirements, foreign laws, international import and export legislation, trading and
investment  policies,  exchange  controls,  tariffs  and  other  trade  barriers,  difficulties  in  collecting  accounts  receivable,  potential
adverse tax consequences, uncertainties of laws, difficulties in protecting, maintaining or enforcing intellectual property rights,
difficulty  in  managing  a  geographically  dispersed  workforce  in  compliance  with  diverse  local  laws  and  customs,  and  other
factors,  depending  upon  the  country  involved.  Moreover,  local  laws  and  customs  in  many  countries  differ  significantly  and
compliance with the laws of multiple jurisdictions can be complex, difficult and costly. We cannot assure that risks inherent in
our foreign operations will not have a material adverse effect on our business.

We must comply with the Foreign Corrupt Practices Act.

We are required to comply with the United States Foreign Corrupt Practices Act, which prohibits U.S. companies from
engaging in bribery of or other prohibited payments to foreign officials for the purpose of obtaining or retaining business and
requires that we maintain adequate financial records and internal controls to prevent such prohibited payments. Our international
operations are managed by the Sahara team who are required to comply with the UK Bribery Act 2010 which goes further than
current US legislation where the Bribery Act is not limited to foreign officials but also includes customers and includes all form
of inducement and incentives; the same standard is expected of all our Sahara employees of other European countries where
similar legislation is in force under EU-Law Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices may
occur in countries where we do business. If our competitors engage in these practices, they may receive preferential treatment
from personnel of some companies, giving our competitors an advantage in securing business or from government officials who
might give them priority in obtaining new business, which would put us at a disadvantage. If our employees or other agents are
found to have engaged in such practices, we could suffer severe penalties.

Our worldwide operations will subject us to income taxation in many jurisdictions, and we must exercise significant
judgment to determine our worldwide financial provision for income taxes. That determination ultimately is an estimate,
and, accordingly, we cannot assure that our historical income tax provisions and accruals will be adequate.

We  are  subject  to  income  taxation  in  the  United  States  and  numerous  other  jurisdictions.  Significant  judgment  is
required  in  determining  our  worldwide  provision  for  income  taxes.  In  the  ordinary  course  of  our  business,  there  are  many
transactions  and  calculations  where  the  ultimate  tax  determination  is  uncertain.  Although  we  believe  our  tax  estimates  are
reasonable,  we  cannot  assure  you  that  the  final  determination  of  any  tax  audits  and  litigation  will  not  be  materially  different
from that which is reflected in our historical income tax provisions and accruals. Should additional taxes be assessed against us
as  a  result  of  an  audit  or  litigation,  there  could  be  a  material  adverse  effect  on  our  current  and  future  results  and  financial
condition.

Certain  of  our  subsidiaries  provide  products  to  and  may  from  time  to  time  undertake  certain  significant  transactions
with us and our other subsidiaries in different jurisdictions. In general, cross border transactions between related parties and, in
particular, related party financing transactions, are subject to close review by tax authorities. Moreover, several jurisdictions in
which we operate have tax laws with detailed transfer pricing rules that require all transactions with nonresident related parties
to be priced using arm’s-length pricing principles and require the existence of contemporaneous documentation to support such
pricing. A tax authority in one or more jurisdictions could challenge the validity of our related party transfer pricing policies. If
in  the  future  any  taxation  authorities  are  successful  in  challenging  our  financing  or  transfer  pricing  policies,  our  income  tax
expense may be adversely affected and we could become subject to interest and penalty charges, which may harm our business,
financial condition and operating results.

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If we are unable to ship and transport components and final products efficiently and economically across long distances and
borders, our business would be harmed.

We transport significant volumes of components and finished products across long distances and international borders.
Any increases in our transportation costs, as a result of increases in the price of oil or otherwise, would increase our costs and
the  final  prices  of  our  products  to  our  customers.  In  addition,  any  increases  in  customs  or  tariffs,  as  a  result  of  changes  to
existing  trade  agreements  between  countries  or  otherwise,  could  increase  our  costs  or  the  final  cost  of  our  products  to  our
customers or decrease our margins. Such increases could harm our competitive position and could have a material adverse effect
on our business. The laws governing customs and tariffs in many countries are complex and often include substantial penalties
for non-compliance. Disputes may arise and could subject us to material liabilities and have a material adverse effect on our
business.

If our procedures to ensure compliance with export control laws are ineffective, our business could be harmed.

Our extensive foreign operations and sales are subject to far reaching and complex export control laws and regulations
in the United States and elsewhere. Violations of those laws and regulations could have material negative consequences for us
including  large  fines,  criminal  sanctions,  prohibitions  on  participating  in  certain  transactions  and  government  contracts,
sanctions on other companies if they continue to do business with us and adverse publicity.

We will be exposed to fluctuations in foreign currencies that may materially adversely affect our results of operations.

Our  reporting  currency  is  the  U.S.  dollar.  Sahara  Holdings  Ltd.  consolidates  results  using  the  British  pound  (with
principal functional currencies in British pound, Euro and U.S. dollar) and Boxlight Latin America uses the Mexican Peso as
functional currency to report revenue and expenses. As a result, we will be exposed to foreign exchange rate fluctuations when
we translate the financial statements of our group companies into U.S. dollars in consolidation. If there is a change in foreign
currency  exchange  rates,  the  translation  of  any  of  the  group  companies  financial  statements  into  U.S.  dollars  will  lead  to  a
translation  gain  or  loss  which  is  recorded  as  a  component  of  other  comprehensive  income.  In  addition,  we  may  have  certain
monetary  assets  and  liabilities  that  are  denominated  in  currencies  other  than  the  relevant  entity’s  functional  currency.  To  the
extent  the  U.S.  dollar  strengthens  or  weakens  against  the  certain  foreign  currencies  then  the  translation  of  foreign  currency
denominated  transactions  will  result  in  a  change  to  reported  revenue,  operating  expenses  and  net  income  for  subsidiary
operations. We have not entered into agreements or purchased instruments to hedge our exchange rate risks, although we may
do so in the future. The availability and effectiveness of any hedging transaction may be limited, and we may not be able to
successfully hedge fully our exchange rate risks.

We  monitor  our  foreign  exchange  exposures,  and  these  activities  mitigate,  but  do  not  eliminate,  our  exposure  to
exchange rate fluctuations. As a result, exchange rate fluctuations may materially adversely affect our operating results in future
periods.

Unstable market and economic conditions may have serious adverse consequences on our business, financial condition and
results of operations.

The  global  economy,  including  credit  and  financial  markets,  has  experienced  extreme  volatility  and  disruptions,
including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth,
increases in unemployment rates, increases in inflation rates and uncertainty about economic stability. Any such volatility and
disruptions may have adverse consequences on us or the third parties upon who we rely.

Risks Related to Our Intellectual Property and Technology

Defects in our products can be difficult to detect before shipment. If defects occur, they could have a material adverse effect
on our business.

Our products are highly complex and sophisticated and, from time to time, have contained and may continue to contain

design defects or software “bugs” or failures that are difficult to detect and correct in advance of shipping.

The  occurrence  of  errors  and  defects  in  our  products  could  result  in  loss  of,  or  delay  in,  market  acceptance  of  our
products, including harm to our brand. Correcting such errors and failures in our products could require significant expenditure
of capital by us. In addition, we are rapidly developing and introducing new products, and new products may have higher rates
of errors and defects than

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our established products. The Boxlight Group has historically provided product warranties between one and five years, and the
failure of our products to operate as described could give rise to warranty claims. The consequences of such errors, failures and
other defects and claims could have a material adverse effect on our business, financial condition, results of operations and our
reputation.

We may not be able to obtain patents or other intellectual property rights necessary to protect our proprietary technology and
business.

Our commercial success depends to a significant degree upon our ability to develop new or improved technologies and
products, and to obtain patents or other intellectual property rights or statutory protection for these technologies and products in
the United States and other countries. We will seek to patent concepts, components, processes, designs and methods, and other
inventions  and  technologies  that  we  consider  have  commercial  value  or  that  will  likely  give  us  a  technological  advantage.
Boxlight own rights in patents and patent applications for technologies relating to interactive displays and other complementary
products in the United States and other countries such as Germany, Mexico, Israel, Japan, Taiwan and China. Despite devoting
resources  to  the  research  and  development  of  proprietary  technology,  we  may  not  be  able  to  develop  technology  that  is
patentable or protectable. Patents may not be issued in connection with pending patent applications, and claims allowed may not
be  sufficient  to  allow  them  to  use  the  inventions  that  they  create  exclusively.  Furthermore,  any  patents  issued  could  be
challenged,  re-examined,  held  invalid  or  unenforceable  or  circumvented  and  may  not  provide  sufficient  protection  or  a
competitive advantage. In addition, despite efforts to protect and maintain patents, competitors and other third parties may be
able  to  design  around  their  patents  or  develop  products  similar  to  our  products  that  are  not  within  the  scope  of  their  patents.
Finally, patents provide certain statutory protection only for a limited period of time that varies depending on the jurisdiction
and  type  of  patent.  The  statutory  protection  term  of  certain  of  our  material  patents  may  expire  soon  and,  thereafter,  the
underlying technology of such patents can be used by any third-party including competitors.

Prosecution  and  protection  of  the  rights  sought  in  patent  applications  and  patents  can  be  costly  and  uncertain,  often
involve complex legal and factual issues and consume significant time and resources. In addition, the breadth of claims allowed
in our patents, their enforceability and our ability to protect and maintain them cannot be predicted with any certainty. The laws
of certain countries may not protect intellectual property rights to the same extent as the laws of the United States. Even if our
patents  are  held  to  be  valid  and  enforceable  in  a  certain  jurisdiction,  any  legal  proceedings  that  we  may  initiate  against  third
parties  to  enforce  such  patents  will  likely  be  expensive,  take  significant  time  and  divert  management’s  attention  from  other
business matters. We cannot assure that any of the issued patents or pending patent applications will provide any protectable,
maintainable or enforceable rights or competitive advantages to us.

In addition to patents, we will rely on a combination of copyrights, trademarks, trade secrets and other related laws and
confidentiality  procedures  and  contractual  provisions  to  protect,  maintain  and  enforce  our  proprietary  technology  and
intellectual  property  rights  in  the  United  States,  the  United  Kingdom,  Mexico,  Australia,  Malaysia,  Canada,  Turkey  Sweden,
Finland,  Germany,  Holland,  and  China.  However,  our  ability  to  protect  our  brands  by  registering  certain  trademarks  may  be
limited.  In  addition,  while  we  will  generally  enter  into  confidentiality  and  nondisclosure  agreements  with  our  employees,
consultants, contract manufacturers, distributors and resellers and with others to attempt to limit access to and distribution of our
proprietary and confidential information, it is possible that:

● misappropriation of our proprietary and confidential information, including technology, will nevertheless occur;

● our confidentiality agreements will not be honored or may be rendered unenforceable;

● third parties will independently develop equivalent, superior or competitive technology or products;

● disputes  will  arise  with  our  current  or  future  strategic  licensees,  customers  or  others  concerning  the  ownership,

validity, enforceability, use, patentability or registrability of intellectual property; or

● unauthorized disclosure of our know-how, trade secrets or other proprietary or confidential information will occur.

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● we cannot assure that we will be successful in protecting, maintaining or enforcing our intellectual property rights. If
we  are  unsuccessful  in  protecting,  maintaining  or  enforcing  our  intellectual  property  rights,  then  our  business,
operating results and financial condition could be materially adversely affected, which could:

● adversely affect our relationships with current or future distributors and resellers of our products;

● adversely affect our reputation with customers;

● be time-consuming and expensive to evaluate and defend;

● cause product shipment delays or stoppages;

● divert management’s attention and resources;

● subject us to significant liabilities and damages;

● require us to enter into royalty or licensing agreements; or

● require us to cease certain activities, including the sale of products.

If it is determined that we have infringed, violated or are infringing or violating a patent or other intellectual property
right  of  any  other  person  or  if  we  are  found  liable  in  respect  of  any  other  related  claim,  then,  in  addition  to  being  liable  for
potentially substantial damages, we may be prohibited from developing, using, distributing, selling or commercializing certain
of our technologies and products unless we obtain a license from the holder of the patent or other intellectual property right. We
cannot assure that we will be able to obtain any such license on a timely basis or on commercially favorable terms, or that any
such licenses will be available, or that workarounds will be feasible and cost-efficient. If we do not obtain such a license or find
a cost-efficient workaround, our business, operating results and financial condition could be materially adversely affected, and
we  could  be  required  to  cease  related  business  operations  in  some  markets  and  restructure  our  business  to  focus  on  our
continuing operations in other markets.

Our business may suffer if it is alleged or determined that our technology or another aspect of our business infringes the
intellectual property of others.

The markets in which we will compete are characterized by the existence of many patents and trade secrets and also by
litigation  based  on  allegations  of  infringement  or  other  violations  of  intellectual  property  rights.  Moreover,  in  recent  years,
individuals  and  groups  have  purchased  patents  and  other  intellectual  property  assets  for  the  purpose  of  making  claims  of
infringement to extract settlements from companies like ours. Also, third parties may make infringement claims against us that
relate to technology developed and owned by one of our suppliers for which our suppliers may or may not indemnify us. Even if
we  are  indemnified  against  such  costs,  the  indemnifying  party  may  be  unable  to  uphold  its  contractual  obligations  and
determining the extent such of such obligations could require additional litigation. Claims of intellectual property infringement
against us or our suppliers might require us to redesign our products, enter into costly settlements or license agreements, pay
costly  damage  awards  or  face  a  temporary  or  permanent  injunction  prohibiting  us  from  marketing  or  selling  our  products  or
services.  If  we  cannot  or  do  not  license  the  infringed  intellectual  property  on  reasonable  terms  or  at  all,  or  substitute  similar
intellectual  property  from  another  source,  our  revenue  and  operating  results  could  be  adversely  impacted.  Additionally,  our
customers and distributors may not purchase our offerings if they are concerned that they may infringe third party intellectual
property  rights.  Responding  to  such  claims,  regardless  of  their  merit,  can  be  time  consuming,  costly  to  defend  in  litigation,
divert management’s attention and resources, damage our reputation and cause us to incur significant expenses. The occurrence
of any of these events may have a material adverse effect on our business, financial condition and operating results.

If we are unable to anticipate consumer preferences and successfully develop attractive products, we might not be able to
maintain or increase our revenue or achieve profitability.

Our  success  depends  on  our  ability  to  identify  and  originate  product  trends  as  well  as  to  anticipate  and  react  to
changing demands and preferences of customers in a timely manner. If we are unable to introduce new products or technologies
in a timely manner or our new products or technologies are not accepted by our customers, our competitors may introduce more
attractive products which

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would  adversely  impact  our  competitive  position.  Failure  to  respond  in  a  timely  manner  to  changing  consumer  preferences
could lead to, among other things, lower revenues and excess inventory positions of outdated products.

We may be unable to keep pace with changes in technology as our business and market strategy evolves.

We  will  need  to  respond  to  technological  advances  and  emerging  industry  standards  in  a  cost-effective  and  timely
manner  in  order  to  remain  competitive.  The  need  to  respond  to  technological  changes  may  require  us  to  make  substantial,
unanticipated expenditures. There can be no assurance that we will be able to respond successfully to technological change.

Risks Related to Our Class A Common Stock

We may not be able to maintain a listing of our Class A common stock on Nasdaq Capital Market, or Nasdaq.

Because  our  Class  A  common  stock  is  listed  on  Nasdaq,  we  must  meet  certain  financial  and  liquidity  criteria  to
maintain such listing. At present, we are in the second 180-day compliance period provided by Nasdaq relating to our failure to
maintain  the  $1.00  minimum  bid  price  requirement  (the  “Minimum  Bid  Price”).    This  second  180-day  compliance  period
expires on July 3, 2023.  In order to regain compliance, we must regain the $1.00 Minimum Bid Price and trade at $1.00 or
higher for 10 consecutive days. If we do not organically regain the Minimum Bid Price within that period, we will need to seek
stockholder approval to conduct a reverse stock split. If we fail to regain compliance, or otherwise violate or fail to meet any
Nasdaq listing requirements, our Class A common stock may be delisted. In addition, our Board may determine that the cost of
maintaining  our  listing  on  a  national  securities  exchange  outweighs  the  benefits  of  such  listing.  A  delisting  of  our  Class A
common  stock  from  Nasdaq  may  materially  impair  our  stockholders’  ability  to  buy  and  sell  our  Class A  common  stock  and
could have an adverse effect on the market price of, and the efficiency of the trading market for, our Class A common stock. In
the event our stock is delisted from Nasdaq, whether by choice or otherwise, the delisting of our Class A common stock could
significantly impair our ability to raise capital and stockholder value.

Future sales of our Class A common stock could adversely affect our share price, and any additional capital raised by us
through the sale of equity or convertible debt securities may dilute your ownership in BOXL and may adversely affect the
market price of our Class A common stock.

We believe that our existing working capital, expected cash flow from operations and other available cash resources
will  enable  us  to  meet  our  working  capital  requirements  for  at  least  the  next  12  months.  However,  the  development  and
marketing of new products and the expansion of distribution channels require a significant commitment of resources. From time
to  time,  we  may  seek  additional  equity  or  debt  financing  to  finance  working  capital  requirements,  continue  our  expansion,
develop new products or make acquisitions or other investments. In addition, if our business plans change, general economic,
financial or political conditions in our industry change, or other circumstances arise that have a material effect on our cash flow,
the  anticipated  cash  needs  of  our  business,  as  well  as  our  conclusions  as  to  the  adequacy  of  our  available  sources  of  capital,
could change significantly. Any of these events or circumstances could result in significant additional funding needs, requiring
us  to  raise  additional  capital.  If  additional  funds  are  raised  through  the  issuance  of  equity  shares,  preferred  shares  or  debt
securities, the terms of such securities could impose restrictions on our operations and would reduce the percentage ownership
of  our  existing  stockholders.  If  financing  is  not  available  on  satisfactory  terms,  or  at  all,  we  may  be  unable  to  expand  our
business or to develop new business at the rate desired and our results of operations may suffer.

The market price of our Class A common stock may be volatile, which could cause the value of our common stock to
fluctuate and possibly decline significantly.

The market price of our Class A common stock may be highly volatile and subject to wide fluctuations. In 2022, the
price of our Class A common stock declined from $1.41 on January 4, 2022 to $0.31 per share on December 30, 2022. As of
March  13,  2023,  our  Class  A  common  stock  closed  at  $0.48  per  share.  In  addition,  our  financial  performance,  government
regulatory  action,  tax  laws  and  market  conditions  in  general,  including  the  ongoing  COVID-19  pandemic  and  its  resulting
impact on the economy at large, could have a significant impact on the future market price of our Class A common stock. Some
of the factors that could negatively affect our share price or result in fluctuations in the price of our common stock include:

● our operating and financial performance and prospects;

● our quarterly or annual earnings or those of other companies in our industry;

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● the public’s reaction to our press releases, our other public announcements and our filings with the SEC;

● changes  in,  or  failure  to  meet,  earnings  estimates  or  recommendations  by  research  analysts  who  track  our  Class A

common stock or the stock of other companies in our industry;

● the failure of analysts to cover our Class A common stock;

● strategic actions by us or our competitors, such as acquisitions or restructurings;

● announcements  by  us,  our  competitors  or  our  vendors  of  significant  contracts,  acquisitions,  joint  marketing

relationships, joint ventures or capital commitments;

● new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

● changes in accounting standards, policies, guidance, interpretations or principles;

● announcements by third parties or governmental entities of significant claims or proceedings against us;

● new laws and governmental regulations, or other regulatory developments, applicable to our industry;

● changes in general conditions in the United States and global economies or financial markets, including both social
and economic conditions resulting from the ongoing COVID-19 pandemic, war, incidents of terrorism or responses to
such events;

● changes in government spending levels on education;

● changes in key personnel;

● sales of common stock by us, members of our management team or our stockholders;

● the granting or exercise of employee stock options or other equity awards;

● the volume of trading in our Class A common stock; and

● the realization of any risks described in this section under the caption “Risk Factors”

Furthermore, the stock market has recently experienced extreme volatility that, in some cases, has been unrelated or
disproportionate  to  the  operating  performance  of  particular  companies.  These  broad  market  and  industry  fluctuations  may
adversely affect the market price of our Class A common stock, regardless of our actual operating performance.

In the past, following periods of market volatility, stockholders have instituted securities class action litigation. If we
were  involved  in  securities  litigation,  it  could  have  a  substantial  cost  and  divert  resources  and  the  attention  of  executive
management from our business regardless of the outcome of such litigation.

Our Articles of Incorporation, Bylaws and Nevada law may have anti-takeover effects.

Our  Articles  of  Incorporation  authorize  the  issuance  of  common  stock  and  preferred  stock.  Each  share  of  Class A
common stock entitles the holder to one vote on all matters to be voted upon by stockholders, and the Class B common stock
has no vote, except as required by law. In addition, our board of directors (“Board”) has the authority to issue additional shares
of preferred stock and to determine the price, rights, preferences, privileges and restrictions of those shares without any further
vote or action by the stockholders. The rights of the holders of common stock will be subject to, and may be adversely affected
by, the rights of the holders of any preferred stock that may be issued in the future. The ability of our Board to issue additional
shares of preferred stock could make it more difficult for a third party to acquire a majority of our voting stock. Other provisions
of our Bylaws also may have the effect of discouraging,

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delaying or preventing a merger, tender offer or proxy contest, which could have an adverse effect on the market price of our
Class A common stock.

In  addition,  certain  provisions  of  Nevada  law  applicable  to  our  company  could  also  delay  or  make  more  difficult  a
merger, tender offer or proxy contest involving our company, including Sections 78.411 through 78.444 of the Nevada Revised
Statutes, which prohibit a Nevada corporation from engaging in any business combination with any “interested stockholder” (as
defined in the statute) for a period of two years unless certain conditions are met. In addition, our senior management is entitled
to certain payments upon a change in control and certain of the stock options and restricted shares we have granted provide for
the acceleration of vesting in the event of a change in control of our company.

We have no intention of declaring dividends in the foreseeable future.

The  decision  to  pay  cash  dividends  on  our  Class  A  common  stock  rests  with  our  Board  and  will  depend  on  our
earnings, unencumbered cash, capital requirements and financial condition. We do not anticipate declaring any dividends in the
foreseeable future, as we intend to use any excess cash to fund our operations. Investors in our Class A common stock should
not expect to receive dividend income on their investment, and investors will be dependent on the appreciation of our Class A
common stock to earn a return on their investment.

If securities or industry analysts do not publish research or reports about us, or if they adversely change their
recommendations regarding our Class A common stock, then our stock price and trading volume could decline.

The  trading  market  for  our  Class A  common  stock  will  be  influenced  by  the  research  and  reports  that  industry  or
securities analysts publish about us, our industry and our market. If no analyst elects to cover us and publish research or reports
about us, the market for our Class A common stock could be severely limited and our stock price could be adversely affected. In
addition, if one or more analysts ceases coverage of us or fails to regularly publish reports on us, we could lose visibility in the
financial markets, which in turn could cause our stock price or trading volume to decline. If one or more analysts who elect to
cover us adversely change their recommendations regarding our Class A common stock, our stock price could decline.

We may be exposed to risks relating to evaluations of controls required by Sarbanes-Oxley Act of 2002.

Pursuant  to  Sarbanes-Oxley  Act  of  2002,  our  management  is  required  to  report  on,  and  our  independent  registered
public  accounting  firm  is  required  to  attest  to,  the  effectiveness  of  our  internal  control  over  financial  reporting.  Although  we
prepare our financial statements in accordance with accounting principles generally accepted in the United States, our internal
accounting controls may not meet all standards applicable to companies with publicly traded securities. If we fail to implement
any required improvements to our disclosure controls and procedures, we may be obligated to report control deficiencies and
our  independent  registered  public  accounting  firm  may  not  be  able  to  certify  the  effectiveness  of  our  internal  controls  over
financial  reporting.  In  either  case,  we  could  become  subject  to  regulatory  sanction  or  investigation.  Further,  these  outcomes
could damage investor confidence in the accuracy and reliability of our financial statements.

If we fail to develop, implement and maintain an effective system of internal control over financial reporting, the accuracy
and timing of our financial reporting in future periods may be adversely affected.

The Sarbanes-Oxley Act and related rules and regulations require that management report annually on the effectiveness of our
internal  control  over  financial  reporting  and  assess  the  effectiveness  of  our  disclosure  controls  and  procedures  on  a  quarterly
basis.  Effective  internal  controls  are  necessary  for  us  to  provide  timely  and  reliable  financial  reports  and  effectively  prevent
fraud. We have identified control deficiencies that constituted a material weakness in our internal controls and procedures in the
past  and  may  experience  a  material  weakness  in  future  years.  If  we  fail  to  maintain  adequate  internal  controls,  our  financial
statements  may  not  accurately  reflect  our  financial  condition.  Any  material  misstatements  could  require  a  restatement  of  our
consolidated financial statements, cause us to fail to meet our reporting obligations or cause investors to lose confidence in our
reported financial information, leading to a decline in the market value of our securities.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

  Our  corporate  headquarters  is  located  at  2750  Premiere  Parkway,  Duluth,  GA,  30097  in  an  office  space  of
approximately 12,000 square feet, for which we pay approximately $23,000 per month as rent pursuant to a rental agreement.
Our corporate headquarters house our administrative offices. The Company leases warehouse space in Lawrenceville, GA, for
approximately $13,000 per month.

We  also  maintain  offices  in  Scottsdale,  Arizona  and  Utica,  NY  in  the  U.S.,  and  in  Dartford,  London,  Leeds  and
Livingston and Belfast in the U.K. for sales, marketing, technical support and service staff. In addition, we also maintain sales,
marketing and technical support offices in Apeldoorn, Netherlands, Anzegem, Belgium, Helsinki, Finland, Oskarshamn Kalmar,
Sweden, and Düsseldorf, Germany.

ITEM 3. LEGAL PROCEEDINGS

From time to time we are party to litigation matters occurring in the ordinary course of our business. As of the date of
this  Annual  Report,  however,  there  are  no  material  pending  or  threatened  legal  or  governmental  proceedings  relating  to  our
Company  to  which  we  are  a  party,  and  to  our  knowledge  there  are  no  material  proceedings  to  which  any  of  our  directors,
executive officers or affiliates are a party adverse to us or which have a material interest adverse to us.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our  common  stock  commenced  trading  on  the  Nasdaq  Capital  Market,  or  Nasdaq,  under  the  symbol  “BOXL”  on
November 30, 2017. Prior to that time, our common stock was not traded on any exchange or quoted on any over the counter
market.

Holders

As of March 13, 2023, we had 378 holders of record of our common stock and 74,774,556 shares of common stock

issued and outstanding.

Dividends

We have never paid cash dividends on our Class A common stock. Holders of our Class A common stock are entitled to
receive dividends, if any, declared and paid from time to time by the board of directors out of funds legally available. At present,
we intend to retain any earnings for the operation and expansion of our business and do not anticipate paying cash dividends on
our common stock in the foreseeable future. Any future determination as to the payment of cash dividends will depend upon
future earnings, results of operations, capital requirements, our financial condition and other factors that our board of directors
may consider.

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Securities Authorized for Issuance Under Equity Compensation Plans

Equity Incentive Plans

The Company has issued grants under two equity incentive plans, both of which have been approved by the Company’s
shareholders: (i) the 2014 Equity Incentive Plan, as amended (the “2014 Plan”), pursuant to which  a total of 6,390,438 shares of
the  Company’s  Class  A  common  stock  have  been  approved  for  issuance,  and  (ii)  the  2021  Equity  Incentive  Plan  (the  “2021
Plan”), pursuant to which a total of 5,000,000 shares of the Company’s Class A common stock have been approved for issuance.
Upon approval of the 2021 Plan in June 2021, any shares remaining for issuance under the 2014 Plan were cancelled, and all
future  grants  were  issued  under  the  2021  Plan.  The  2021  Plan  allows  for  issuance  of  shares  of  our  Class  A  common  stock,
whether  through  restricted  stock,  restricted  stock  units,  options,  stock  appreciation  rights  or  otherwise,  to  the  Company’s
officers, directors, employees and consultants. As of December 31, 2022, a total of approximately 2.3 million shares remained
available for issuance under the 2021 Plan.

The  following  table  provides  information  as  of  December  31,  2022  about  our  equity  compensation  plans  and

arrangements.

Equity compensation plans approved by security holders
Equity compensation plans not approved by security holders

Plan category

     Number of

securities to be
issued upon
exercise of
outstanding
options,
warrants and
rights (1)
 5,383,586  
 983,321
 6,366,907

Weighted-
average
exercise price of
outstanding
options,
warrants and
rights

$1.61

Number of
securities
remaining
available for
future issuance
under equity
compensation plans
 2,293,933
 -
 2,293,933

(1) Includes 2,725,400 equity incentive grants issued to Sahara employees in conjunction with our acquisition of Sahara

Presentation Systems.

Recent Sales of Unregistered Securities

During the year ended December 31, 2022, we sold 943,442 shares of Class A common stock to cover tax withholdings

for restricted stock vesting.

On December 31, 2021, in connection with the WhiteHawk Credit Agreement, we issued to WhiteHawk (i) 528,169
shares of Class A common stock, which shares were registered pursuant to our existing shelf registration statement, and (ii) a
warrant to purchase 2,043,291 shares of Class A common stock (subject to increase to the extent of 3% of any Series B and
Series  C  convertible  preferred  stock  converted  into  Class  A  common  stock),  originally  exercisable  at  $2.00  per  share  (the
“Warrant”).  Based  on  the  arithmetic  volume  weighted  average  prices  of  the  Company’s  Class  A  common  stock  for  the  30
trading days prior to March 31, 2022, the exercise price of the Warrant was reduced to $1.19 per share and the shares increased
to 3,434,103.

On July 22, 2022, the Company entered into a Securities Purchase Agreement with an accredited institutional investor.
According to the terms of the WhiteHawk agreement, this purchase agreement triggered a reduction of the exercise price of the
warrants and a revaluation of the derivative liability. The warrants were repriced to $1.10 and shares increased to 3,715,075.

As partial consideration for our purchase of Sahara Holdings Ltd. (“Sahara”), on September 25, 2020, the Company
issued  1,586,620  shares  of  Series  B  convertible  redeemable  preferred  stock  (the  “Series  B  Preferred  Stock”)  and  1,320,850
shares  of  Series  C  convertible  redeemable  preferred  stock  (the  “Series  C  Preferred  Stock”).  The  fair  value  of  the  preferred
shares issued was $16.5 million and $12.4 million for the Series B Preferred Stock and Series C Preferred Stock, respectively.
Such shares were issued pursuant to an exemption from registration pursuant to Rule 506(b) of Regulation D of the Securities
Act of 1933. See further discussion of the features of the preferred shares in Note 12.

On March 24, 2021, we entered into a share redemption and conversion agreement with the former Sahara shareholders
who  own  approximately  96%  of  our  Series  B  and  Series  C  preferred  stock.  Under  the  agreement,  we  agreed  to  redeem  and
purchase from

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such preferred stockholders on or before June 30, 2021 all of the shares of Series B preferred stock for £11.5 million being the
stated  or  liquidation  value  of  the  Series  B  preferred  stock  plus  (b)  accrued  dividends  from  January  1,  2021  to  the  date  of
purchase. In addition, the holders of 96% of the Series C preferred stock agreed to convert those shares into 7.6 million shares
of our Class A Common Stock at a conversion price of $1.66 per share. Former Sahara shareholders agreed to extend the share
redemption  and  conversion  agreement  until  December  31,  2021.  We  did  not  complete  the  conversion  and  redemption  by
December 31, 2021, and the agreement terminated without liability by any party.

On  January  26,  2021,  we  entered  into  an  agreement  with  Everest  Display  Inc.,  a  Taiwan  corporation  (“EDI”),  and
EDI’s  subsidiary,  AMAGIC  Holographics  Inc.,  a  California  corporation  (“AMAGIC”),  pursuant  to  which  $1,983,436  in
accounts  payable  owed  by  us  to  EDI  was  settled  in  exchange  for  our  issuance  of  793,375  shares  (the  “2021  Shares”)  of  its
Class A common stock to AMAGIC at a $2.50 per share purchase price. The 2021 Shares were issued to AMAGIC pursuant to
an exemption from registration provided by Rule 506 of Regulation D under Section 4(a)(2) of the Securities Act.

Use of Proceeds

None.

Issuer Purchases of Equity Securities

None.

ITEM 6. [Reserved]

ITEM  7.  MANAGEMENT’S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  RESULTS  OF
OPERATIONS

The following Management’s Discussion and Analysis should be read in conjunction with our financial statements and
the related notes thereto included elsewhere herein. The Management’s Discussion and Analysis (“MD&A”) contains forward-
looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions.
Any  statements  that  are  not  statements  of  historical  fact  are  forward-looking  statements.  When  used,  the  words  “believe,”
“plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions
(“will,”  “may,”  “could,”  “should,”  etc.),  or  similar  expressions,  identify  certain  of  these  forward-looking  statements.  These
forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially
from  those  expressed  or  implied  by  the  forward-looking  statements  in  this  form.  Our  actual  results  and  the  timing  of  events
could differ materially from those anticipated in these forward-looking statements as a result of several factors.

Historical results may not indicate future performance. Our forward-looking statements reflect our current views about
future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those contemplated by these statements. We undertake no obligation to publicly update or revise
any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date
hereof  that  may  bear  upon  forward-looking  statements.  Furthermore,  we  cannot  guarantee  future  results,  events,  levels  of
activity, performance, or achievements.

Overview

We  are  a  technology  company  that  develops,  sells  and  services  interactive  solutions  predominantly  for  the  global
education market, but  also for the corporate and government sectors. We are seeking to become a worldwide leading innovator
and integrator of interactive products and software solutions and improve collaboration and effective communication in meeting
environments. We currently design, produce and distribute interactive technologies including our interactive and non-interactive
flat  panel  displays,  LED  video  walls,  media  players,  classroom  audio  and  campus  communication,  cameras  and  other
peripherals for the education market and non-interactive solutions including flat panels, LED video walls and digital signage.
We  also  distribute  science,  technology,  engineering  and  math  (or  “STEM”)  products,  including  our  3D  printing  and  robotics
solutions, and our portable science lab. All products are

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integrated  into  our  classroom  software  suite  that  provides  tools  for  whole  class  learning,  assessment  and  collaboration.  In
addition, we offer professional training services related to our technology to our U.S. educational customers. To date, we have
generated the majority of our revenue in the U.S. and internationally from the sale of interactive displays and related software to
the  educational  market.  We  have  sold  our  solutions  into  over  70  countries  and  into  over  1.5  million  classrooms  and  meeting
spaces.  We  sell  our  products  and  software  through  more  than  1,000  global  reseller  partners.  We  believe  we  offer  the  most
comprehensive  and  integrated  line  of  interactive  display  solutions,  audio  products,  peripherals  and  accessories,  software  and
professional development for schools and enterprises on the market today. The majority of our products are backed by nearly
30 years of research and development.

Advances  in  technology  and  new  options  for  the  introduction  of  technology  into  the  classroom  have  forced  school
districts  to  look  for  solutions  that  allow  teachers  and  students  to  bring  their  own  devices  into  the  classroom,  provide  school
districts with information technology departments with the means to access data with or without internet access, handle higher
demand for video, as well as control cloud and data storage challenges. Our design teams are able to quickly customize systems
and  configurations  to  serve  the  needs  of  clients  so  that  existing  hardware  and  software  platforms  can  communicate  with  one
another. Our goal is to become a single source solution to satisfy the needs of educators around the globe and provide a holistic
approach to the modern classroom.

Recent Acquisitions

On  December  31,  2021,  the  Company  acquired  FrontRow  Calypso  LLC,  a  California  company  and  a  leader  in
classroom  and  campus  communication  solutions  for  the  education  market.  While  purchase  accounting  was  applied  to  the
acquired assets and assumed liabilities of FrontRow, the fiscal 2021 revenues and the results of operations of FrontRow are not
included in our consolidated financial statements for the year ended December 31, 2021 as a result of the year-end acquisition
date.

On  March  23,  2021,  the  Company  acquired  Interactive  Concepts  BV,  a  company  incorporated  and  registered  in
Belgium and a distributor of interactive technologies (“Interactive”). Prior to the acquisition, the company had been Boxlight’s
key distributor in Belgium and Luxembourg.

Our Acquisition Strategy and Challenges

Our growth strategy includes acquiring assets and technologies of companies that have products, technologies, industry
specializations or geographic coverage that extend or complement our existing business. The process to undertake a potential
acquisition  is  time-consuming  and  costly.  Prior  to  completing  any  acquisition,  we  expect  to  expend  significant  resources  to
undertake business, financial and legal due diligence on our potential acquisition targets, as a result, and there is no guarantee
that we will complete any acquisition that we pursue.

We believe we can achieve significant cost-savings by merging the operations of the companies we acquire and after

their acquisition leverage the opportunity to reduce costs through the following methods:

● Staff reductions – consolidating resources, such as accounting, marketing and human resources.

● Economies of scale – improved purchasing power with a greater ability to negotiate prices with suppliers.

● Improved market reach and industry visibility – increase in customer base and entry into new markets.

As a result, we believe that an analysis of the historical costs and expenses of our Target Sellers (a company that is the
subject  of  an  attempted  acquisition)  prior  to  their  acquisition  will  not  provide  guidance  as  to  the  anticipated  results  after
acquisition. We anticipate that we will be able to achieve significant reductions in our costs of revenue and selling and, general
and administrative expenses from the levels currently incurred by the Target Sellers operating independently, thereby increasing
our EBITDA and cash flows.

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Components of our Results of Operations and Financial Condition

Revenue

The  Company’s  sales  of  interactive  devices,  including  panels,  whiteboards  and  other  interactive  devices  generally
include hardware maintenance services, a license to software, and the provision of related software maintenance. In most cases,
interactive devices are sold with hardware maintenance services.

The  Company’s  installation,  training  and  professional  development  service  include  third-party  products  and  services

and are generally sold separately from the Company’s products.

Cost of revenue

Our cost of revenue is comprised of the following:

● third-party logistics costs;

● costs to purchase components and finished goods directly;

● inbound and outbound freight costs and duties;

● costs associated with the repair of products under warranty;

● write-downs of inventory carrying value to adjust for excess and obsolete inventory and periodic physical inventory

counts;

● cost of professionals to deliver the professional development training; and

● customs expense.

We outsource some of our warehouse operations and order fulfillment and we purchase products from related entities
and third parties. Our product costs vary directly with volume and based on the costs of underlying product components as well
as the prices we negotiate with our contract manufacturers. Shipping costs fluctuate with volume as well as with the method of
shipping chosen in order to meet customer demand. As a global company with suppliers centered in Asia and customers located
worldwide, we have used, and may in the future use, air shipping to deliver our products directly to our customers. Air shipping
is  more  costly  than  sea  or  ground  shipping  or  other  delivery  options  and  it  is  rarely  used  as  a  result.  The  Company  did  not
experience material delays in shipping during 2022 or 2021 that materially negatively impacted our revenues, however, we have
faced  specific  supply  chain  challenges  related  to  certain  component  shortages  and  increased  cost  of  global  shipping  and
margins.

Gross profit and gross profit margin

Our gross profit and gross profit margin have been, and may in the future be, influenced by several factors including:
product, channel and geographical revenue mix; changes in product costs related to the release of newer models; component,
contract manufacturing and supplier pricing, foreign currency exchange and most recently, increased shipping costs due to the
pandemic  and  global  unrest.  As  we  primarily  procure  our  product  components  and  manufacture  our  products  in  Asia,  our
suppliers incur many costs, including labor costs, in other currencies. To the extent that exchange rates move unfavorably for
our suppliers, they may seek to pass these additional costs on to us, which could have a material impact on our future average
selling prices and unit costs. Gross profit and gross profit margin may fluctuate over time based on the factors described above.

Operating expenses

We classify our operating expenses into two categories: research and development and general and administrative.

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Research and development. Research and development expense consists primarily of personnel related costs, prototype

and sample costs, design costs and global product certifications mostly for wireless certifications.

General  and  administrative.  General  and  administrative  expense  consists  of  personnel  related  costs,  which  include
salaries,  as  well  as  the  costs  of  professional  services,  such  as  accounting  and  legal,  facilities,  information  technology,
depreciation  and  amortization  and  other  administrative  expenses.  General  and  administrative  expense  may  fluctuate  as
a percentage of revenue, notably in the second and third quarters of our fiscal year when we have historically experienced our
highest levels of revenue.

Other income (expense), net

Other  income  (expense),  net  primarily  consists  of  interest  expense  associated  with  our  debt  financing  arrangements,
gains (losses) on the settlements of debt and trade payable obligations exchanged for common shares, and the effects of changes
in the fair value of derivative liabilities.

Income tax expense

We are subject to income taxes in the United States, United Kingdom, Mexico, Sweden, Finland, Holland and Germany
where we do business. The United Kingdom, Mexico, Sweden, Finland, Holland and Germany have a statutory tax rate different
from  that  in  the  United  States.  Additionally,  certain  of  our  international  earnings  are  also  taxable  in  the  United  States.
Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to U.S. income, the absorption of
foreign  tax  credits,  changes  in  the  valuation  of  our  deferred  tax  assets  and  liabilities  and  changes  in  tax  laws.  We  regularly
assess  the  likelihood  of  adverse  outcomes  resulting  from  the  examination  of  our  tax  returns  by  the  U.S.  Internal  Revenue
Service,  or  IRS,  and  other  tax  authorities  to  determine  the  adequacy  of  our  income  tax  reserves  and  expense.  Should  actual
events or results differ from our current expectations, charges or credits to our income tax expense may become necessary. Any
such adjustments could have a significant impact on our results of operations.

Operating Results – Boxlight Corporation

For the years ended December 31, 2022 and 2021

Revenues. Total revenues for the year ended December 31, 2022 were $221.8 million as compared to $185.2 million
for the year ended December 31, 2021, resulting in a 19.8% increase. The increase in revenues was primarily a result of our
acquisition  of  FrontRow  in  December  2021  and  increased  demand  for  our  solutions  in  both  the  U.S.  and  EMEA  markets.
Excluding FrontRow revenues, revenues increased $11.0 million or 5.9%, for the year ended December 31, 2022 as compared to
the year ended December 31, 2021.

Cost of Revenues. Cost of revenues for the year ended December 31, 2022 was $156.9 million as compared to $138.7
million for the year ended December 31, 2021, resulting in an 13.2% increase. The increase in cost of revenues was primarily
due  to  the  growth  in  revenues  associated  with  the  acquisition  of  FrontRow  in  December  2021.  Excluding  cost  of  revenues
associated with FrontRow, cost of revenues for Boxlight increased by $5.1 million or 3.7%, to $143.8 million. The increase in
cost of revenues, excluding FrontRow, was primarily due to the growth in revenues across all markets partially offset by lower
manufacturing and freight and shipping costs.

Gross Profit. Gross profit for the year ended December 31, 2022 was $64.9 million as compared to $46.5 million for
the year ended December 31, 2021. Gross profit margin increased from 25.1% for the year ended December 31, 2021 to 29.2%
for the year ended December 31, 2022 due to decreased manufacturing and freight and shipping expenses over the prior year
following the height of the COVID-19 pandemic and higher margins associated with sales from FrontRow products.

General and Administrative Expense.  General  and  administrative  expense  for  the  year  ended  December  31,  2022
was $59.3 million and 26.8% of revenue as compared to $47.3 million and 25.6% of revenue for the year ended December 31,
2021.  The  increase  primarily  resulted  from  additional  costs  associated  with  the  FrontRow  acquisition.  Excluding  FrontRow,
general and administrative expense for the year ended December 31, 2022 was $50.7 million and 25.8% of revenue.

Research and Development Expense. Research and development expense was $2.5 million or 1.1% of revenue for
the  year  ended  December  31,  2022  as  compared  to  $1.8  million  or  1.0%  of  revenue  for  the  year  ended  December  31,  2021.
Research and

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development  expense  primarily  consists  of  costs  associated  with  development  of  proprietary  technology.  The  increase  in
research and development expense was primarily driven by an increase in contract services related to software development.

Other income (expense), net. Other expense for the year ended December 31, 2022 was $6.7 million as compared to
$7.9 million for the year ended December 31, 2021. Other expense decreased by $1.2 million, primarily due to a change in fair
value of derivative liabilities due to a decrease in the Company’s stock price. The decrease was partially offset by an increase in
interest expense.

Net  loss.  The  net  loss  attributable  to  common  shareholders  was  $5.0  million  and  $14.7  million  for  the  year  ended
December 31, 2022 and 2021, respectively, after deducting fixed dividends to Series B preferred shareholders of $1.3 million in
each year and the fair value revaluation deemed contribution of $367 thousand following the redemption amendment with the
Series B shareholders in the second quarter of 2021.

To provide investors with additional insight and allow for a more comprehensive understanding of the information used
by  management  in  its  financial  and  decision-making  surrounding  operations,  we  supplement  our  consolidated  financial
statements  presented  on  a  basis  consistent  with  U.S.  generally  accepted  accounting  principles  (“GAAP”)  with  EBITDA  and
Adjusted EBITDA, both non-GAAP financial measures of earnings.

EBITDA  represents  net  income  (loss)  before  income  tax  expense,  interest  expense,  net,  and  depreciation  and
amortization  expense.  Adjusted  EBITDA  represents  EBITDA,  adjusted  for  stock  compensation  expense  and  non-recurring
expenses changes and changes in fair value of derivative liabilities, purchase accounting impact for fair valuing inventory and
deferred revenue, and net (gain) loss on settlement of debt. Our management uses EBITDA and Adjusted EBITDA as financial
measures  to  evaluate  the  profitability  and  efficiency  of  our  business  model.  We  use  these  non-GAAP  financial  measures  to
assess the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measure that is
derived  from  them,  provide  supplemental  information  to  analyze  our  operations  between  periods  and  over  time.  We  find  this
especially useful when reviewing results of operations, which include large non-cash amortizations of intangibles assets from
acquisitions. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial
measures prepared in accordance with GAAP.

The following table contains reconciliations of net losses to EBITDA and adjusted EBITDA for the periods presented.

Reconciliation of net loss for the years ended
December 31, 2022 and 2021 to EBITDA and Adjusted EBITDA

(in thousands)
Net loss
Depreciation and amortization
Interest expense
Income tax expense
EBITDA
Stock compensation expense
Change in fair value of derivative liabilities
Purchase accounting impact of fair valuing inventory
Purchase accounting impact of fair valuing deferred revenue
Net (gain) loss on settlement of debt
Adjusted EBITDA

Discussion of Effect of Seasonality on Financial Condition

2022

2021

 (3,743)
 9,129
 9,923
 49
 15,358
 3,313
 (2,591)
 1,496
 2,229
 (856)
 18,949

$

$

$

 (13,802)
 7,177
 3,382
 3,310
 67
 4,060
 (13)
 60
 2,980
 4,940
 12,094

$

$

$

Certain  accounts  on  our  balance  sheets  are  subject  to  seasonal  fluctuations.  As  our  business  and  revenues  grow,  we
expect  these  seasonal  trends  to  be  reduced.  The  bulk  of  our  products  are  shipped  to  our  educational  customers  prior  to  the
beginning of the school year, usually in July, August or September. To prepare for the upcoming school year, we generally build
up inventories during the second quarter of the year. Therefore, inventories tend to be at the highest levels at that point in time.
In the first quarter of the year, inventories tend to decline significantly as products are delivered to customers and we do not
need the same inventory levels during the first quarter. Accounts receivable balances tend to be at the highest levels in the third
quarter, in which we record the highest level of sales.

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We  have  been  very  proactive,  and  will  continue  to  be  proactive,  in  obtaining  contracts  during  the  fourth  and  first

quarters or each year in order to help offset the seasonality of our business.

Liquidity and Capital Resources

As  of  December  31,  2022,  we  had  cash  and  cash  equivalents  of  $14.6  million,  a  working  capital  position  of  $62.8
million, and a current ratio of 2.29. This financial position represents an improvement from a year ago at December 31, 2021
when we had a working capital position of $53.8 million and $17.9 million of cash and cash equivalents.

For the year ended December 31, 2022, we had net cash provided by operating activities of $1.2 million. For the year
ended  December  31,  2021,  we  had  net  cash  used  in  operating  activities  of  $2.3  million.  The  change  in  cash  from  operating
activities primarily relates to increases in operating income in 2022 compared to 2021. For the year ended December 31, 2022
and 2021, we had net cash used in investing activities of $1.2 million and $34.0 million, respectively. The decrease in cash used
in  investing  activities  primarily  relates  to  the  purchase  of  FrontRow  that  occurred  in  2021,  partially  offset  by  an  increase  in
purchases of Property and Equipment. In addition, for the year ended December 31, 2022, we had net cash used in financing
activities  of  $5.1  million.  For  the  year  ended  December  31,  2021,  we  had  net  cash  provided  by  financing  activities  of  $41.1
million. The decrease in cash from financing activities primarily relates to a decrease in net proceeds and principal repayments
of debt of $54.5 million and a decrease in debt issuance costs of $3.3 million, partially offset by an increase in proceeds from
common stock of $4.3 million.

In  addition  to  the  cash  flows  generated  by  our  ongoing  operating  activities  we  financed  our  operations  during  2022
with  our  current  Credit  Facility  with  WhiteHawk  and  in  2021  with  a  $20.0  million  tranche  of  debt  funded  by  our  previous
lender,  and  from  a  pre-existing  accounts  receivable  financing  arrangement  with  another  lender  who  purchases  85%  of  the
eligible  accounts  receivable  of  the  Company,  up  to  $6.0  million,  with  the  right  of  recourse.  We  closed  these  credit  lines  in
December 2021 and replaced them with our Credit Facility with WhiteHawk. Our accounts receivable and our ability to borrow
against  accounts  receivable  provides  an  additional  source  of  liquidity  as  cash  payments  are  collected  from  customers  in  the
ordinary  course  of  business.  Our  accounts  receivable  balance  fluctuates  throughout  the  year  based  on  the  seasonality  of  the
business.

Our  cash  requirements  consist  primarily  of  day-to-day  operating  expenses,  capital  expenditures  and  contractual
obligations with respect to facility leases and other operating leases. We lease all our office facilities. We expect to make future
payments on existing leases from cash generated from operations. We have limited credit available from our major vendors and
are required to prepay a percentage of our inventory purchases, which further constrains our cash liquidity.

The  Company  had  an  accumulated  deficit  of  $65.0  million  as  of  December  31,  2022  and  net  cash  provided  by

operations of $1.2 million for the year ended December 31, 2022.

Recent Financing

WhiteHawk Finance LLC

To  finance  the  acquisition  of  FrontRow,  the  Company  and  substantially  all  of  its  direct  and  indirect  subsidiaries,
including  Boxlight  and  FrontRow  as  guarantors,  entered  into  a  maximum  $68.5  million  term  loan  credit  facility,  dated
December  31,  2021  (the  “Credit  Agreement”),  with  WhiteHawk  Finance  LLC,  as  lender  (the  “Lender”),  and  WhiteHawk
Capital Partners, LP, as collateral agent. The Company received an initial term loan of $58.5 million on December 31, 2021 (the
“Initial  Loan”)  and  was  provided  with  a  subsequent  delayed  draw  facility  of  up  to  $10  million  that  may  be  provided  for
additional  working  capital  purposes  under  certain  conditions  (the  “Delayed  Draw”).  The  Initial  Loan  and  Delayed  Draw  are
collectively referred to as the “Term Loans.” The proceeds of the Initial Loan were used to finance the Company’s acquisition of
FrontRow, pay off all indebtedness owed to the Company’s then existing lenders, Sallyport Commercial Finance, LLC and Lind
Global Asset Management, LLC, pay related fees and transaction costs, and provide working capital. Of the Initial Loan, $8.5
million was subject to repayment on February 28, 2022, with quarterly principal payments of $625,000 and interest payments
commencing March 31, 2022 and the $40.0 million remaining balance plus any Delayed Draw loans becoming due and payable
in full on December 31, 2025. The Term Loans bear interest at the LIBOR rate plus 10.75%; provided that after March 31, 2022,
if  the  Company’s  Senior  Leverage  Ratio  (as  defined  in  the  Credit  Agreement)  is  less  than  2.25,  the  interest  rate  would  be
reduced to LIBOR plus 10.25%. Such terms are subject to the Company maintaining a borrowing base in terms compliant with
the Credit Agreement.

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In  conjunction  with  its  receipt  of  the  Initial  Loan,  the  Company  issued  to  the  Lender  (i)  528,169  shares  of  Class  A
common  stock  (the  “Shares”),  which  Shares  were  registered  pursuant  to  its  existing  shelf  registration  statement  and  were
delivered  to  the  Lender  in  January  2022,  (ii)  a  warrant  to  purchase  2,043,291  shares  of  Class  A  common  stock  (subject  to
increase to the extent of 3% of any Series B and Series C convertible preferred stock converted into Class A common stock),
exercisable  at  $2.00  per  share  (the  “Warrant”),  which  Warrant  was  subject  to  repricing  on  March  31,  2022  based  on  the
arithmetic  volume  weighted  average  prices  for  the  30  trading  days  prior  to  September  30,  2022,  in  the  event  the  Company’s
  stock  is  then  trading  below  $2.00  per  share,  (iii)  a  3%  fee  of  $1,800,000,  and  (iv)  a  $500,000  original  issue  discount.  In
addition, the Company agreed to register for resale the shares issuable upon exercise of the Warrant. The Company also incurred
agency fees, legal fees and other costs in connection with the execution of the Credit Agreement totaling approximately $1.7
million. Under the terms of the warrant issued to WhiteHawk on December 31, 2021, the exercise price of the warrants would
reprice  if  the  stock  price  on  March  31,  2022  was  less  than  the  original  exercise  price,  at  which  time  the  number  of  warrants
would  also  be  increased  proportionately,  so  that  after  such  adjustment  the  aggregate  exercise  price  payable  for  the  increased
number  of  warrant  shares  would  be  the  same  as  the  aggregate  exercise  price  previously  in  effect.  The  warrants  repriced  on
March 31, 2022 to $1.19 per share and the shares increased to 3,434,103.

On July 22, 2022, the Company entered into a Securities Purchase Agreement with an accredited institutional investor.
According to the terms of the WhiteHawk agreement, this purchase agreement triggered a reduction of the exercise price of the
warrants  and  a  revaluation  of  the  derivative  liability.  The  warrants  were  repriced  to  $1.10  and  warrant  shares  increased  to
3,715,075.

On March 29, 2022, the Company received a notice from the collateral agent, alleging, among other things, defaults as
a result of (i) failure to repay $8.5 million of the facility by February 28, 2022, (ii) non-compliance with the borrowing base
resulting  in  the  Company  being  in  an  over  advance  position  under  the  Credit  Agreement,  and  (iii)  failure  to  timely  provide
certain reports and documents.  As a result, all accrued and unpaid interest owed under the Term Loan, became subject to a post-
default interest rate equal to the highest interest rate allowed for under the Credit Agreement plus 2.50% until such time as the
events  of  default  were  either  waived  or  cured.  In  February  2022,  WhiteHawk  and  the  Company  agreed  in  principle  to  an
extension of the February 2022 Payment. Pursuant to amendment to the Credit Agreement, dated April 4, 2022, the Collateral
Agent  and  Lender  agreed  to  extend  the  terms  of  repayment  of  the  $8.5  million  originally  due  on  February  28,  2022  until
February 28, 2023 and waive and/or otherwise extend compliance with certain other terms of the Credit Agreement in order to
allow the Loan Parties adequate time to comply with such terms.  In July 2022, the Company and WhiteHawk agreed that the
notice  had  inadvertently  included  the  default  with  respect  to  the  failure  to  repay  $8.5  million  of  the  facility.  As  a  result,
notwithstanding the notice, both WhiteHawk and the Company have agreed that the Company was not in default in making the
February 2022 Payment to WhiteHawk.

 The principal elements of the April amendment included (a) an extension of time to repay $8.5 million of the principal
amount of the term loan from February 28, 2022 to February 28, 2023, and (b) forbearance on $3,500,000 in over advances until
May  16,  2022  to  allow  the  Company  to  come  into  compliance  with  the  borrowing  base  requirements  set  forth  in  the  Credit
Agreement.  In  such  connection,  the  Loan  Parties  have  obtained  credit  insurance  on  certain  key  customers  whose  principal
offices are located in the European Union and Australia as, without the credit insurance, their accounts owed to the Loan Parties
had  been  deemed  ineligible  for  inclusion  in  the  borrowing  base  calculation  primarily  due  to  the  perceived  inability  of  the
Collateral  Agent  to  enforce  security  interests  on  such  accounts.  In  addition,  the  Lender  and  Collateral  Agent  agreed  to  (i)
reduce, through September 30, 2022, the minimum cash reserve requirement for the Loan Parties, (ii) reduce the interest rate by
50 basis points (to LIBOR plus 9.75%) after delivery of the Loan Parties’ September 30, 2023 financial statements, subject to
the  Loan  Parties  maintaining  1.75  EBITDA  coverage  ratio,  and  (iii)  waive  all  prior  Events  of  Default  under  the  Credit
Agreement. In conjunction with the amendment to the Credit Agreement, the parties entered into an amended and restated fee
letter (the “Fee Letter”) pursuant to which the parties agreed to prepayment premiums of (i) 5% for payments made on or before
December 31, 2022, (ii) 4% for payments made between January 1, 2023 and December 31, 2023, and (iii) 2% for payments
made between January 1, 2024 and December 31, 2025. Furthermore, the parties agreed that no prepayment premiums would be
payable with respect to the first $5.0 million paid under the Term Loan, any payments made in relation to the $8.5 million due
on  or  before  February  28,  2023,  any  required  amortization  payments  under  the  Credit  Agreement  and  any  mandatory
prepayments by way of ECF or casualty events.

On June 21, 2022, the Company and substantially all of its direct and indirect subsidiaries (together with the Company,
the  “Loan  Parties”),  entered  into  a  second  amendment  (the  “Second  Amendment”)  to  the  four-year  term  loan  credit  facility,
originally  entered  into  December  31,  2021  and  as  amended  on  April  4,  2022  (the  “Credit  Agreement”),  with  the  Collateral
Agent and Lender.

The Second Amendment to the Credit Agreement was entered into for purposes of the Lender funding a $2.5 million
delayed  draw  term  loan  and  adjusting  certain  terms  to  the  Credit  Agreement,  including  adjusting  the  Applicable  Margin  (as
defined in the Second

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Amendment) to 13.25% for  LIBOR Rate Loans and 12.25% for Reference Rate Loans, increasing the definition of change of
control  from  33%  voting  power  to  40%  voting  power,  requiring  the  Company  to  engage  a  financial  advisor,  and  allowing
additional time, until July 15, 2022, for the Company to come into compliance with certain borrowing base requirements set
forth in the Second Amendment to the Credit Agreement, among other adjustments.

Lind Global Marco Fund and Lind Global Asset Management

On  February  4,  2020,  the  Company  and  Lind  Global  Macro  Fund,  LP  (“LGMF”)  entered  into  a  securities  purchase
agreement  pursuant  to  which  the  Company  received  $750,000  in  exchange  for  the  issuance  to  Lind  of  (1)  an
$825,000  convertible  promissory  note,  payable  at  an  8%  interest  rate,  compounded  monthly,  (2)  certain  shares  of  restricted
Class  A  common  stock  valued  at  $60,000,  calculated  based  on  the  20-day  volume  average  weighted  price  of  the  Class  A
common stock for the period ended February 4, 2020, and (3) a commitment fee of $26,250. The Note was to mature over 24
months,  with  repayment  commencing  on  August  4,  2020,  after  which  time  the  Company  made  monthly  payments  of
$45,833 plus interest by issuing shares of Class A common stock. The commitment fee in the amount of $26,025 was paid to
LGMF,  along  with  legal  fees  in  the  amount  of  $15,000.  The  Company  paid  LGMF  $60,000  for  closing  fees  by
issuing  44,557  shares  of  Class A  common  stock.  During  the  year  ended  December  31,  2021,  the  Company  paid  principal  of
$1.1  million  and  interest  of  $32,000  by  issuing  a  total  of  671,000  shares  Class  A  common  stock  with  an  aggregate  value  of
$1.5 million to Lind Global and recognized a loss extinguishment of debt of approximately $430,000. On December 31, 2021,
the LGMF convertible note was paid in full.

On  September  21,  2020,  the  Company  and  Lind  Global  Asset  Management,  LLC  (“Lind  Global”)  entered  into  a
securities  purchase  agreement  (the  “Lind  SPA”)  pursuant  to  which  the  Company  received  $20.0  million  in  exchange  for  the
issuance to Lind Global of (1) a $22.0 million convertible promissory note, payable at a 4% interest rate, compounded monthly,
(2)  310,399  shares  of  restricted  Class  A  common  stock  valued  at  $900,000,  calculated  based  on  the  20-day  volume  average
weighted price of the Class A common stock for the period ended September 21, 2020, and (3) a commitment fee of $400,000.
The convertible note was to mature over 24 months, with repayment commencing on November 22, 2020, after which time the
Company  became  obligated  to  make  monthly  payments  of  $1.0  million,  plus  interest.  Interest  accrued  during  the  first  two
months of the note, after which time the interest payments, including accrued interest was paid monthly in either conversion
shares.  The  commitment  fee  in  the  amount  of  $40,000  was  paid  to  Lind  Global,  along  with  legal  fees  in  the  amount  of
$20,000  The  Company  paid  Lind  Global  a  total  of  $500,000  in  closing  fees  consisting  of  commitment  and  legal  fees,  by
issuing 310,399 shares of Class A common stock. The shares of Class A common stock issuable to Lind under the convertible
note were registered pursuant to our effective shelf registration statement on Form S-3.

During  the  year  ended  December  31,  2021,  as  payment  for  the  Lind  Global  convertible  notes,  the  Company  repaid
principal of $12.0 million and interest of $584,000 to Lind Global by issuing a total of 7.2 million shares Class A common stock
with an aggregate value of $15.9 million to Lind and recognized a $3.3 million loss.

Paycheck Protection Program Loan

On  May  22,  2020,  the  Company  received  loan  proceeds  of  $1.1  million  under  the  Paycheck  Protection  Program.
 During 2021, the Company applied for forgiveness in the amount of $836 thousand. On March 2, 2022, we received a decision
letter from the lender that the forgiveness application had been approved, leaving a remaining balance of $173 thousand to be
paid. The Company received a payment schedule from its lender on May 5, 2022, extending the payoff date until May 2025.
The amount remaining on the loan at December 31, 2022 was $127 thousand.

Everest Display, Inc.

On  January  26,  2021,  the  Company  entered  into  an  agreement  with  EDI  and  EDI’s  subsidiary,  AMAGIC,  settling
$1,983,436 in accounts payable owed by the Company to EDI for 793,375 shares of Class A common stock. During the year
ended December 31, 2021, the Company recognized a $357 thousand gain.

Accounts Receivable Financing – Sallyport Commercial Finance

On  September  30,  2020,  Boxlight  Inc.  and  EOS  EDU  LLC  entered  into  an  asset-based  lending  agreement  with
Sallyport Commercial Finance, LLC (“Sallyport”). Sallyport agreed to purchase 90% of the eligible accounts receivable of the
Company during the Term with a right of recourse back to the Company if the receivables are not collectible. Advances against
this agreement accrue

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interest at the rate of 3.50% in excess of the highest prime rate publicly announced from time to time with a floor of 3.25%. In
addition, the Company was required to pay a daily audit fee of $950 per day.

On July 20, 2021, Boxlight and Sallyport amended the Accounts Receivable Agreement (the “ARC Amendment”) for
purposes of increasing the Maximum Facility Limit Amount (as defined in the ARC Amendment) to $13,000,000, as well as
increasing  the  minimum  monthly  sales  from  $1,250,000  to  $3,000,000.  In  exchange  for  entry  into  the  ARC  Amendment,
Boxlight agreed to a fee of $50,000, representing one percent of the increased Maximum Facility Limit Amount. Other terms of
the Accounts Receivable Agreement remained unchanged. On August 6, 2021, Boxlight and Sallyport entered into an additional
amendment of the Accounts Receivable Agreement (the “Second ARC Amendment”), which further increased the Maximum
Facility Limit Amount to $15,000,000. In exchange for entry into the Second ARC Amendment, Boxlight agreed to a fee of
$20,000, representing one percent of the increased Maximum Facility Limit Amount. Other terms of the Accounts Receivable
Agreement  remain  unchanged.  Following  the  Company’s  entry  into  the  Credit  Facility  with  WhiteHawk,  on  December  31,
2021, all indebtedness to Sallyport was satisfied in full.

Off Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future

effect on our financial condition, results of operations or liquidity and capital resources.

Critical Accounting Policies and Estimates

Our  consolidated  financial  statements  are  prepared  in  accordance  with  generally  accepted  accounting  principles
accepted  in  the  United  States.  In  connection  with  the  preparation  of  our  financial  statements,  we  are  required  to  make
assumptions  and  estimates  about  future  events  and  apply  judgments  that  affect  the  reported  amounts  of  assets,  liabilities,
revenue,  expenses  and  the  related  disclosures.  We  base  our  assumptions,  estimates  and  judgments  on  historical  experience,
current trends and other factors that management believes to be relevant at the time our consolidated financial statements are
prepared.  On  a  regular  basis,  we  review  the  accounting  policies,  assumptions,  estimates  and  judgments  to  ensure  that  our
financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot
be  determined  with  certainty,  actual  results  could  differ  from  our  assumptions  and  estimates,  and  such  differences  could  be
material.

Our  significant  accounting  policies  are  discussed  in  detail  in  Note  1  to  the  accompanying  consolidated  financial
statements,  and  briefly  summarized  below.  We  believe  that  the  following  accounting  estimates  are  the  most  critical  to  aid  in
fully  understanding  and  evaluating  our  reported  financial  results,  and  they  require  our  most  difficult,  subjective  or  complex
judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain:

1. Revenue Recognition

2. Business Acquisitions

3. Goodwill and Intangible assets

4. Share-based Compensation

5. Derivative Warrant Liabilities

6.

Income Taxes

REVENUE RECOGNITION

In accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with
Customers) (“Topic 606”), the Company recognizes revenue at the amount to which it expects to be entitled when control of the
products or services is transferred to its customers. Control is generally transferred when the Company has a present right to
payment  and  the  significant  risks  and  rewards  of  ownership  of  products  or  services  are  transferred  to  its  customers.  Product
revenue is derived from the sale of interactive panels, audio and communication equipment and related software and accessories
to distributors, resellers, and end

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users. Service revenue is derived from hardware maintenance services, product installation, training, software maintenance, and
subscription services.

The Company’s sales of interactive devices, including panels, whiteboards, audio and communication equipment and
other interactive devices generally include hardware maintenance services, a license to software, and the provision of related
software maintenance. Interactive devices are generally sold with hardware maintenance services with terms ranging from 36-
60  months.  Software  maintenance  includes  technical  support,  product  updates  on  a  when  and  if  available  basis,  and  error
correction services. At times, non-interactive projectors are also sold with hardware maintenance services with terms ranging
from 36-60 months. The Company also licenses software independently of its interactive devices, in which case it is bundled
with  software  maintenance,  and  in  some  cases,  subscription  services  that  include  access  to  on-line  content,  access  to
replacement parts, and cloud-based applications. The Company’s software subscription services provide access to content and
software  applications  on  an  as  needed  basis  over  the  Internet,  but  do  not  provide  the  right  to  take  delivery  of  the  software
applications.

The Company’s product sales, including those with software and related services, generally include a single payment
up  front  for  the  products  and  services,  and  revenue  is  recorded  net  of  estimated  sales  returns  and  rebates  based  on  the
Company’s expectations and historical experience. For most of the Company’s product sales, control transfers, and therefore,
revenue is recognized when products are shipped at the point of origin. When the Company transfers control of its products to
the customer prior to the related shipping and handling activities, the Company has adopted a policy of accounting for shipping
and handling activities as a fulfillment cost rather than a performance obligation. For other software product sales, control is
transferred  when  the  customer  receives  the  related  access  code  or  interactive  hardware  since  the  customer’s  access  code  or
connection  to  the  interactive  hardware  activates  the  software  license  at  which  time  the  software  is  made  available  to  the
customer.  For  the  Company’s  software  maintenance,  hardware  maintenance,  and  subscription  services,  revenue  is  recognized
ratably over time as the services are provided since time is the best output measure of how those services are transferred to the
customer.

The  Company’s  installation,  training  and  professional  development  services  are  generally  sold  separately  from  the
Company’s products. Control of these services is transferred to our customers over time with hours/time incurred in providing
the service being the best depiction of the transfer of services since the customer is receiving the benefit of the services as the
work is performed.

For  contracts  with  multiple  performance  obligations,  each  of  which  represent  promises  within  a  contract  that  are
distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices
(“SSPs”).

BUSINESS ACQUISITIONS

The  Company’s  business  acquisitions  are  accounted  for  as  a  business  combination,  in  accordance  with  Topic  350
“Business Combinations,”  which  requires,  among  other  things,  that  assets  acquired,  and  liabilities  assumed  be  recognized  at
their  estimated  fair  values  as  of  the  acquisition  date  on  the  consolidated  balance  sheet.  Transaction  costs  are  expensed  as
incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill.
Income taxes, where applicable, are recognized and measured in accordance with Topic 740, Accounting for Income Taxes. For
transactions  occurring  on  or  after  January  1,  2021,  contract  liabilities  acquired  in  a  business  combination  are  recognized  and
measured  in  accordance  with  Topic  606.  Determining  the  fair  value  of  assets  acquired  and  liabilities  assumed  requires
management to use significant judgement and estimates, including the selection of valuation methodologies, estimates of future
revenue, costs and cash flows, and discount rates.

GOODWILL AND INTANGIBLE ASSETS

Goodwill  represents  the  cost  in  excess  of  the  fair  value  of  the  net  assets  of  acquired  businesses.  Goodwill  is  not
amortized and is not deductible for tax purposes. Under ASC Topic 350 “Business Combinations,” we have an option to perform
a “qualitative” assessment of the Company to determine whether further impairment testing is necessary. If an entity believes, as
a  result  of  its  qualitative  assessment,  that  it  is  more-likely-than-not  that  the  fair  value  of  the  business  is  less  than  carrying
amount, the quantitative impairment test is required. Otherwise, no further testing is required. If we determine that the Company
meets  these  criteria,  we  perform  a  qualitative  assessment.  In  this  qualitative  assessment,  we  consider  the  following  items:
macroeconomic  conditions,  industry  and  market  conditions,  overall  financial  performance  and  other  entity  specific  events.  In
addition, we assess whether the most recent fair value determination results in an amount that exceeds the carrying amount of
the Company. Based on these assessments, we determine whether the likelihood that a current fair value determination would be
less than the current carrying amount is not more likely than not.

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Because  the  qualitative  assessment  is  an  option,  we  may  bypass  it  for  any  reporting  unit  in  any  period  as  begin  our
analysis with the quantitative impairment test. We may elect to perform a quantitative impairment test based on the period of
time that has passed since the most recent determination of fair value, even when we do not believe that it is more-likely-than-
not that the fair value of the business is less than carrying amount.

In analyzing goodwill for potential impairment in the quantitative impairment test, we use a combination of the income
and market approaches to estimate the fair value. Under the income approach, we calculate the fair value based on estimated
future  discounted  cash  flows.  The  assumptions  we  use  are  based  on  what  we  believe  a  hypothetical  marketplace  participant
would use in estimating fair value. Under the market approach, we estimate the fair value based on market multiples of revenue
or  earnings  before  interest,  income  taxes,  depreciation  and  amortization  for  benchmark  companies.  If  the  fair  value  exceeds
carrying value, then no further testing is required. However, if the fair value were to be less than carrying value, we would then
determine  the  amount  of  the  impairment  charge,  if  any,  which  would  be  the  amount  that  the  carrying  value  of  the  goodwill
exceeded its implied value.

Intangible assets are amortized using the straight-line method over their estimated period of benefit. We evaluate the
recoverability of intangible assets periodically and take into account events or circumstances that warrant revised estimates of
useful lives or that indicate that impairment exists. No material impairments of intangible assets have been identified during any
of the periods presented. Intangible assets are tested for impairment on an annual basis, and between annual tests if indicators of
potential impairment exist, using a fair-value-based approach.

SHARE-BASED COMPENSATION

The Company estimates the fair value of each stock option compensation award at the grant date by using the Black-
Scholes option pricing model; the fair value of each restricted stock unit awarded is the market price of the underlying shares at
the date of grant. The fair value determined represents the cost for the award and is recognized over the vesting period during
which  an  employee  is  required  to  provide  service  in  exchange  for  the  award.  Accordingly,  stock  compensation  expense  is
recognized based on the estimated fair value of the awards which is amortized as compensation expense on a straight-line basis
over the vesting period. Total expense related to the award is reduced by the fair value of the options that are forfeited by the
employees that leave the Company prior to vesting.

DERIVATIVE WARRANT LIABILITIES

The Company classifies common stock purchase warrants as equity if the contracts (i) require physical settlement or
net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement
or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to
net cash settle the contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a
choice  of  net-cash  settlement  or  settlement  in  shares  (physical  settlement  or  net-share  settlement),  or  (iii)  contain  reset
provisions as either an asset or a liability. The Company assesses classification of its freestanding derivatives at each reporting
date to determine whether a change in classification between equity and liabilities is required.

The Company determined that certain warrants to purchase common stock do not satisfy the criteria for classification
as equity instruments due to the existence of certain net cash and non-fixed settlement provisions that are not within the sole
control  of  the  Company.  Such  warrants  are  measured  at  fair  value  at  each  reporting  date,  and  the  changes  in  fair  value  are
included in determining net income for the period.

INCOME TAXES

The Company follows the asset and liability method of accounting for income taxes pursuant to the pertinent guidance
issued by the FASB. Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the
financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected
to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to
the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of
the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for
future taxable income over the periods in which the temporary differences will be deductible.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company,” this item is not required.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 57)

Consolidated Balance Sheets as of December 31, 2022 and 2021

Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2022 and 2021

Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022 and 2021

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021

Notes to Consolidated Financial Statements

Page

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Boxlight Corporation

Opinion on the Consolidated Financial Statements

We  have  audited  the  accompanying  consolidated  balance  sheets  of  Boxlight  Corporation  and  its  subsidiaries  (the
“Company”)  as  of  December  31,  2022  and  2021,  the  related  consolidated  statements  of  operations  and
comprehensive  loss,  changes  in  stockholders’  equity  and  cash  flows  for  each  of  the  years  in  the  two-year  period
ended December 31, 2022, and the related notes and financial statement schedule II (collectively referred to as the
“financial  statements”).  In  our  opinion,  the  financial  statements  present  fairly,  in  all  material  respects,  the  financial
position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for
each  of  the  years  in  the  two-year  period  ended  December  31,  2022,  in  conformity  with  accounting  principles
generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audits.

We  are  a  public  accounting  firm  registered  with  the  Public  Company  Accounting  Oversight  Board  (United  States)
(“PCAOB”)  and  are  required  to  be  independent  with  respect  to  the  Company  in  accordance  with  the  U.S.  federal
securities  laws  and  the  applicable  rules  and  regulations  of  the  Securities  and  Exchange  Commission  and  the
PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform  the  audit  to  obtain  reasonable  assurance  about  whether  the  financial  statements  are  free  of  material
misstatement,  whether  due  to  error  or  fraud.  The  Company  is  not  required  to  have,  nor  were  we  engaged  to
perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an
understanding  of  internal  control  over  financial  reporting  but  not  for  the  purpose  of  expressing  an  opinion  on  the
effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements,
whether  due  to  error  or  fraud,  and  performing  procedures  that  respond  to  those  risks.  Such  procedures  include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits
also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis
for our opinion.

Critical Audit Matters

The  critical  audit  matters  communicated  below  are  matters  arising  from  the  current-period  audit  of  the  financial
statements that were communicated or required to be communicated to the audit committee and that: (1) relate to
accounts  or  disclosures  that  are  material  to  the  financial  statements  and  (2)  involved  our  especially  challenging,
subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter – Fair Value of Derivative Liabilities

As described in Notes 1 and 10, the Company has issued warrants to purchase common stock which feature net
cash settlement provisions or do not have fixed settlement provisions because their conversion and exercise prices
may be lowered under certain conditions. The warrants are derivative liabilities and are remeasured at fair value at
each reporting date using a Monte Carlo simulation technique. Changes in fair value are included in operations each
period. As of

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December  31,  2022,  the  Company  estimated  the  fair  value  to  be  $472  thousand  and  recognized  a  $2.6  million
change in fair value in operations for the year ended December 31, 2022.

We identified the fair value of the liability-classified warrants as a critical audit matter. The principal considerations
for  that  determination  were  the  unobservable  inputs  used  in  the  Company’s  valuation  technique  are  highly
subjectivity  and  involves  higher  measurement  uncertainty.  This  required  a  high  degree  of  auditor  effort,  including
specialized skills and knowledge, and significant auditor judgment in evaluating the fair value of the warrants.  The
primary procedures we performed to address this critical audit matter included:

● We  obtained  an  understanding  of  management’s  process  for  determining  the  unobservable  inputs  for  the

fair value measurement.

● Utilizing a valuation specialist, we evaluated the significant assumptions and methods utilized in developing

the fair value, including:

o We  evaluated  the  reasonableness  of  the  Company’s  measurement  technique  and  significant

assumptions and inputs.

o We verified developed an independent calculation of the risk-free rate and volatility and compared

our rates to those used by management.

o We performed independent simulations using a Monte Carlo technique to determine the fair value

of the warrants and test the accuracy of management’s valuation technique and application.

Critical Audit Matter – Equity-Classified Warrants

As  described  in  Note  12,  the  Company  issued  certain  warrants  and  prefunded  warrants  in  connection  with  a
securities purchase agreement to issue and sell 7.0 million shares of the Company’s common stock. The Company
evaluated  whether  the  warrants  and  pre-funded  warrants  were  in  the  scope  of  ASC  Topic  480  Distinguishing
Liabilities  from  Equity,  which  discusses  the  accounting  for  instruments  with  characteristics  of  both  liabilities  and
equity. The guidance in Topic 480, and the resulting liability classification, is applicable to instruments when certain
criteria are met. Based on its analysis, the Company concluded that the warrants, and pre-funded warrants did not
meet any of the criteria to be subject to liability classification and are therefore classified as equity.

We  identified  the  classification  of  the  warrants  as  a  critical  audit  matter.  The  principal  considerations  for  that
determination included the complexity and effort required in identifying all relevant features of and obligations under
the  instruments  for  evaluation  against  the  criteria  for  classification.  This  required  a  high  degree  of  auditor  effort,
including  specialized  skills  and  knowledge,  and  significant  auditor  judgment  in  evaluating  the  features  of  and
obligations  under  the  warrants  and  the  determination  of  whether  such  features  meet  the  criteria  for  liability-
classification.

The primary procedures we performed to address this critical audit matter included:

● We obtained an understanding of management’s process for identifying and evaluating the critical terms of

the warrant agreements in determining the classification.

● With the assistance of professionals in our firm that have specialized skills and knowledge in accounting for

debt and equity instruments:

o We  evaluated  management’s  analysis  and  conclusions  regarding  the  relevant  provisions  and

features of the warrants in light of relevant guidance and the criteria for classification.

o We  read  the  securities  purchase  agreement  and  underlying  warrant  agreements  comprising  the

offering to identify the relevant features and settlement provisions for our evaluation.

o We independently evaluated the relevant features and settlement provisions of the warrants under

relevant guidance considering the criteria for liability-classification.

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Critical Audit Matter – Goodwill Impairment Assessment

As  described  in  Note  1,  in  analyzing  goodwill  for  potential  impairment  in  the  quantitative  impairment  test,  the
Company uses a combination of the income and market approaches to estimate the fair value. Under the income
approach,  the  Company  calculates  the  fair  value  based  on  discounted  estimated  future  cash  flows.  Under  the
market  approach,  the  Company  estimates  the  fair  value  based  on  the  market  multiples  of  revenue  or  earnings
before interest, income taxes, depreciation, and amortization for benchmark companies.

We identified the quantitative impairment test of goodwill as a critical audit matter. The principal considerations for
that determination included the judgement involved in assessing management’s impairment test of goodwill due to
the measurement uncertainty involved in determining the fair value of equity for the reporting units. In particular, the
fair  value  estimates  are  sensitive  to  changes  in  assumptions  such  as  discount  rates,  expected  future  cash  flows,
long-term growth rates, and comparable company earnings multiples.

The primary procedures we performed to address this critical audit matter included:

● We obtained an understanding of management’s process for assessing goodwill impairment and performing
the qualitative goodwill impairment test, including management’s process for developing assumptions used
in the income and market approaches to estimate the fair value of reporting units.

● We  evaluated  management’s  revenue  growth  rates,  margins,  and  cash  flows  to  current  industry  and
economic trends, while also considering the current and future business, customer base, and product mix.

● We  assessed  management’s  process  for  estimating  revenue  growth  and  margins  by  comparing  past

projections to actual performance.

● With the assistance of our valuation professionals with specialized skills and knowledge, we evaluated the
models, valuation methodology, and significant assumptions used in the income and market approaches to
estimate the fair values.

● We  tested  management’s  reconciliation  of  the  fair  value  of  equity  of  the  reporting  units  to  the  market

capitalization of the Company.

/s/ FORVIS, LLP (Formerly, Dixon Hughes Goodman LLP)

We have served as the Company’s auditor since 2018.

Atlanta, Georgia
March 16, 2023

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Boxlight Corporation
Consolidated Balance Sheets
As of December 31, 2022 and 2021
(in thousands except share and per share amounts)

ASSETS
Current assets:

Cash and cash equivalents
Accounts receivable – trade, net of allowances
Inventories, net of reserves
Prepaid expenses and other current assets

Total current assets

Property and equipment, net of accumulated depreciation
Operating lease right of use asset
Intangible assets, net of accumulated amortization
Goodwill
Other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses
Short-term debt
Operating lease liabilities, current
Deferred revenues, current
Derivative liabilities
Other short-term liabilities
Total current liabilities

Deferred revenues, non-current
Long-term debt
Deferred tax liabilities, net
Operating lease liabilities, non-current
Other long-term liabilities

Total liabilities

Commitments and contingencies (Note 15)
Mezzanine equity:

Preferred Series B, 1,586,620 shares issued and outstanding
Preferred Series C, 1,320,850 shares issued and outstanding
Total mezzanine equity

     December 31, 

     December 31, 

2022

2021

$

$

$

$

$

$

14,591
31,009
58,211
7,433
111,244

1,733
4,350
52,579
25,092
397
195,395

36,566
845
1,898
8,308
472
386
48,475

15,603
43,778
4,680
2,457

—  

114,993

16,146
12,363
28,509

17,938
29,573
51,591
9,444
108,546

1,073
—
65,532
26,037
248
201,436

33,638
9,804
—
7,575
3,064
667
54,748

13,952
42,137
8,449
—
340
119,626

16,146
12,363
28,509

Stockholders’ equity:

Preferred stock, $0.0001 par value, 50,000,000 shares authorized; 167,972 and 167,972 shares issued
and outstanding, respectively
Common stock, $0.0001 par value, 200,000,000 shares authorized; 74,716,696 and 63,821,901 Class A
shares issued and outstanding at December 31, 2022 and 2021, respectively
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive (loss) income

Total stockholders’ equity

—  

—

7
117,843
(65,043)
(914)
51,893

6
110,867
(61,300)
3,728
53,301

Total liabilities and stockholders’ equity

$

195,395

$

201,436

See Accompanying Notes to Financial Statements.

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Table of Contents

Boxlight Corporation
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended December 31, 2022 and 2021
(in thousands, except per share amounts)

Revenues, net
Cost of revenues
Gross profit

Operating expense:

General and administrative expenses
Research and development
Total operating expense

Income (loss) from operations

Other income (expense):
Interest expense, net
Other expense, net
Gain (loss) on settlement of liabilities, net
Change in fair value of derivative liabilities

Total other expense
Loss before income taxes

Income tax expense

Net loss

Fixed dividends - Series B Preferred
Deemed contribution -Series B Preferred
Net loss attributable to common stockholders

Comprehensive loss:

Net loss
Other comprehensive loss:

Foreign currency translation adjustment

Total comprehensive loss

Net loss attributable to common stockholders

Net loss per common share – basic and diluted

$

2022
221,781
156,913
64,868

$

2021
185,177
138,652
46,525

59,337
2,482
61,819

47,270
1,826
49,096

3,049

(2,571)

(9,923)
(267)
856
2,591
(6,743)
(3,694)
(49)
(3,743)
(1,269)
—
(5,012)

(3,743)

(4,642)
(8,385)

$

$

(3,382)
(20)
(4,532)
13
(7,921)
(10,492)
(3,310)
(13,802)
(1,269)
367
(14,704)

(13,802)

(1,464)
(15,266)

(5,012)

(14,704)

(0.07)

$

(0.23)

$

$

$

$

Weighted average number of common shares outstanding – basic and diluted

69,153

58,849

See Accompanying Notes to Financial Statements.

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Table of Contents

Boxlight Corporation
Consolidated Statements of Changes in Stockholders’ Equity
For the Years Ended December 31, 2022 and 2021
(in thousands except share amounts)

Series A
Preferred Stock

Class A
Common Stock

     Shares      Amount      Shares

Additional Accumulated Other

Paid-in
     Amount      Capital

Comprehensive
Income (Loss)

Accumulated

     Deficit

     Total

Balance, December 31, 2020
Shares issued for:

Conversion of liabilities
Stock options exercised
Acquisition
Debt issuance costs
Vesting of restricted stock units
Warrant redemption, net

Stock compensation
Foreign currency translation
Fixed dividends for preferred shareholders
Deemed contribution for preferred shareholders
Net loss

Balance, December 31, 2021
Shares issued for:

Stock options exercised
Acquisition
Debt issuance costs
Vesting of restricted stock units
Securities purchase agreement
Warrant redemption, net

Issuance of warrants and prefunded warrants
Stock compensation
Foreign currency translation
Fixed dividends for preferred shareholders
Net loss

167,972

$

—   53,343,518

$

6

$ 86,768

$

5,192

$

(47,498)

$ 44,468

—  
—
—
—
—  
—
—  
—  
—  
—
—  

—  
—
—
—
—  
—
—  
—  
—  
—
—  

8,697,166
492,460
142,882
—
916,682
229,193

—  
—  
—  

—  

—  
—
—
—
—  
—
—  
—  
—  
—
—  

19,080
415
404
660
—  
382
4,060

—  

(1,269)
367
—  

—  
—
—
—
—  
—
—  

(1,464)

—  
—
—  

—   19,080
415
—
404
—
660
—
—
—  
—
382
4,060
—  
(1,464)
—  
(1,269)
—  
—
367
  (13,802)
(13,802)

167,972

—   63,821,901

6

  110,867

3,728

(61,300)

  53,301

—  
—  
—
—  
—
—
—
—  
—  
—  
—  

—  
—  
—
—  
—
—
—
—  
—  
—  
—  

296,841
230,770
528,169
2,486,075
7,000,000
352,940
—
—  
—  
—  
—  

—  
—  
—
—  

1
—
—
—  
—  
—  
—  

81
150
—
—  

2,352
—
2,349
3,313

—  

(1,269)

—  

—  
—  
—
—  
—
—
—
—  

(4,642)

—  
—  

—  
—  
—
—  
—
—
—
—  
—  
—  

(3,743)

81
150
—
—
2,353
—
2,349
3,313
(4,642)
(1,269)
(3,743)

Balance, December 31, 2022

167,972

$

—   74,716,696

$

7

$ 117,843

$

(914)

$

(65,043)

$ 51,893

See Accompanying Notes to Financial Statements.

F-6

    
 
 
  
 
   
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
   
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Boxlight Corporation
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2022 and 2021
(in thousands)

Cash flows from operating activities:

Net loss
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of debt discount and issuance cost
Bad debt expense
(Gain) loss on settlement of liabilities
Changes in deferred tax assets and liabilities
Change in allowance for sales returns and volume rebate
Change in inventory reserve
Change in fair value of derivative liability
Shares issued for interest payment on notes payable
Stock compensation expense
Depreciation and amortization
Change in right of use assets and lease liabilities
Changes in operating assets and liabilities:

Accounts receivable – trade
Inventories
Prepaid expenses and other current assets
Other assets
Accounts payable and accrued expenses
Other short-term liabilities
Deferred revenues
Other liabilities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Asset acquisition
Cash paid to settle earnout obligations
Purchases of furniture and fixtures, net

Net cash used in investing activities

Cash flows from financing activities:

Net proceeds from issuance of common stock and warrants, net of issuance costs
Proceeds from issuances of short-term debt
Proceeds from exercise of options and warrants
Principal payments on debt
Discount on notes payable
Proceeds from long term debt
Debt issuance costs
Payments of fixed dividends to Series B Preferred stockholders
Proceeds from issuance of common stock
Other Share based payments

Net cash (used in) provided by financing activities

Effect of foreign currency exchange rates

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents, beginning of the period

Cash and cash equivalents, end of the period

Supplemental cash flow disclosures:

Cash paid for income taxes
Cash paid for interest

Non-cash investing and financing transactions:

Shares issued to settle accounts payable
Shares issued for closing fees related to outstanding notes payable – Lind Global
Exercise of warrants
Shares issued for asset acquisition
Deemed contribution from Series B Preferred Stock

2022

2021

$

(3,743)

$

(13,802)

2,158
266
(856)
(3,776)
316
(68)
(2,591)
—
3,313
9,129
8

(3,800)
(10,272)
1,602
(161)
5,756
256
3,965
(312)
1,190

(100)
—
(1,106)
(1,206)

4,700
—
—
(11,141)
—
2,500
—
(1,269)
84

$

$

2,132
425
3,345
788
1,145
250
(13)
617
4,060
7,175
—

(6,427)
(20,998)
(2,470)
(158)
17,948
344
4,318
(1,009)
(2,330)

(33,604)
(119)
(285)
(34,008)

—
54,225
—
(66,912)
(500)
58,500
(3,324)
(1,269)
428

(5,126)

$

41,148

1,795

(3,347)

17,938

14,591

1,615
8,342

—
—
—
150
—

$

$
$

$
$
$
$
$

(332)

4,478

13,460

17,938

1,476
1,497

1,626
17,454
350
403
367

$

$

$

$

$
$

$
$
$
$
$

See Accompanying Notes to Financial Statements.

F-7

    
    
 
   
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
  
Table of Contents

Notes to Consolidated Financial Statements
Boxlight Corporation

NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

COMPANY HISTORY AND RECENT ACQUISITIVE GROWTH

Boxlight  Corporation  (the  “Company”)  was  incorporated  in  the  State  of  Nevada  on  September  18,  2014  with  its
headquarters in Atlanta, Georgia for the purpose of becoming a technology company that sells interactive educational products.
The Company designs, produces and distributes interactive technology solutions predominantly to the education market.

On  December  31,  2021,  the  Company  acquired  FrontRow  Calypso  LLC,  a  California  company  and  a  leader  in

classroom and campus communication solutions for the education market.

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The  accompanying  consolidated  financial  statements  include  the  accounts  of  Boxlight  Corporation  and  its  wholly

owned subsidiaries. Intercompany transactions and account balances among all of affiliated entities have been eliminated.

In  the  opinion  of  management,  the  consolidated  financial  statements  reflect  all  adjustments,  which  are  normal  and

recurring in nature and necessary for fair financial statement presentation.

ESTIMATES AND ASSUMPTIONS

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles
(“GAAP”)  requires  management  to  make  estimates  and  assumptions  that  affect  the  reported  amounts  of  certain  assets  and
liabilities,  disclosure  of  contingent  assets  and  liabilities  at  the  date  of  the  consolidated  financial  statements  and  the  reported
amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Significant
estimates include estimates of  reserves for inventory obsolescence; the recoverability of deferred tax assets; the fair value of
warrants;  the  initial  fair  value  of  preferred  stock,  the  fair  value  and  recoverability  of  intangible  assets  and  goodwill;  the  fair
value of stock compensation; the fair values of assets acquired; the relative stand-alone selling prices of goods and services; and
variable consideration.

COMPREHENSIVE INCOME

Comprehensive income (loss) reflects the change in equity during the year except those resulting from investments by
and  distributions  to  stockholders,  and  is  comprised  of  all  components  of  net  income  (loss)  and  foreign  currency  translation
adjustments.

FOREIGN CURRENCIES

The Company’s reporting currency is the U.S. dollar.

The U.S. dollar is the currency of the primary economic environment in which it operates and is generally the currency
in which the Company’s business generates and expends cash. Subsidiaries with different functional currencies, translate their
assets and liabilities into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenues and expenses are
translated  into  U.S.  dollars  at  the  average  exchange  rates  for  the  year.  The  resulting  translation  adjustments  are  included  in
accumulated other comprehensive income (loss), a separate component of equity (deficit). Foreign exchange gains and losses
arise from transactions denominated in currencies other than the functional currency. Gains and losses on those foreign currency
transactions are included in determining net income (loss) for the period in which the exchange rates change.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid short-term investments purchased with an original maturity of three months
or less to be cash equivalents. These investments are carried at cost, which approximates fair value. The Company maintains
cash  balances  at  financial  institutions  which,  from  time  to  time,  may  exceed  Federal  Deposit  Insurance  Corporation  insured
limits of $250,000 for banks

F-8

Table of Contents

located in the U.S. The Company has not experienced any losses with regard to its bank accounts and believes it is not exposed
to any risk of loss on its cash bank accounts.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable are stated at contractual amounts, net of an allowance for doubtful accounts. The allowance for
doubtful accounts represents management’s estimate of the amounts that ultimately will not be realized in cash. The Company
reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical payment trends, the age of
receivables  and  knowledge  of  the  individual  customers.  When  the  analysis  indicates,  management  increases  or  decreases  the
allowance accordingly. However, if the financial condition of our customers were to deteriorate, additional allowances might be
required.

INVENTORIES

Inventories are stated at the lower of cost or net realizable value and include spare parts and finished goods. Inventories
are primarily determined using specific identification and the first-in, first-out (“FIFO”) cost methods. Cost includes direct cost
from  the  Current  Manufacturer  (“CM”)  or  Original  Equipment  Manufacturer  (“OEM”),  plus  material  overhead  related  to  the
purchase, inbound freight and import duty costs.

The  Company  continuously  reviews  its  inventory  levels  to  identify  slow-moving  merchandise  and  markdowns
necessary  to  clear  slow-moving  merchandise,  which  reduces  the  cost  of  inventories  to  its  estimated  net  realizable  value.
Consideration is given to several quantitative and qualitative factors, including current pricing levels and the anticipated need
for  subsequent  markdowns,  aging  of  inventories,  historical  sales  trends,  and  the  impact  of  market  trends  and  economic
conditions. Estimates of markdown requirements may differ from actual results due to changes in quantity, quality and mix of
products in inventory, as well as changes in consumer preferences, market and economic conditions.

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated life of the

asset. Repairs and maintenance are charged to expense as incurred.

LONG–LIVED ASSETS

Long-lived assets to be held and used or disposed of other than by sale are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. When required, impairment losses on
assets to be held and used or disposed of other than by sale are recognized based on the fair value of the asset. Long-lived assets
to be disposed of by sale are reported at the lower of carrying amount or fair value less cost to sell.

BUSINESS COMBINATIONS

Transactions in which the Company acquires or obtains control of one or more businesses are accounted for as business
combinations in accordance with Topic 805, Business Combinations, which requires, among other things, that assets acquired,
and liabilities assumed be recognized at their estimated fair values as of the acquisition date on the balance sheet. Income taxes,
where applicable, are recognized and measured in accordance with Topic 740, Accounting for Income Taxes.  For  transactions
occurring on or after January 1, 2021, contract liabilities acquired in a business combination are recognized and measured in
accordance  with  Topic  606,  Revenue  from  Contracts  with  Customers  (“Topic  606”).  Determining  the  fair  value  of  assets
acquired  and  liabilities  assumed  requires  management  to  use  significant  judgement  and  estimates,  including  the  selection  of
valuation methodologies, estimates of future revenue, costs and cash flows, and discount rates. Transaction costs are expensed
as incurred. Any excess consideration transferred over the assigned values of net assets acquired would be recorded as goodwill.
The amounts of revenue and earnings of the acquiree since the acquisition date are included in the consolidated statements of
operations and comprehensive loss for the reporting period.

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Table of Contents

GOODWILL

Goodwill represents the cost in excess of the fair value of the net tangible and intangible assets of acquired businesses,
and  represents  implied  synergies  expected  of  the  completed  business  combinations.  Goodwill  is  not  amortized  and  is  not
deductible for tax purposes.

Under Topic 350, Intangibles—Goodwill and Other, the Company has an option to perform a “qualitative” assessment
to determine whether quantitative impairment testing is necessary. If, as a result of a qualitative assessment, it is more-likely-
than-not that the fair value of the business is less than carrying amount, quantitative impairment testing is required. Otherwise,
no further testing is necessary. If the Company performs a qualitative assessment, the Company considers the following criteria:
macroeconomic  conditions,  industry  and  market  conditions,  overall  financial  performance  and  other  entity  specific  events.  In
addition,  the  Company  assesses  whether  the  most  recent  fair  value  determination  resulted  in  an  amount  that  significantly
exceeded the carrying amount of the Company. Based on these assessments, the Company determines whether the likelihood
that a current fair value determination would be less than the current carrying amount is not more likely than not.

Because the qualitative assessment is an option, the Company may bypass it for any reporting unit in any period and
begin the analysis using a quantitative impairment test. The Company may also elect to perform a quantitative impairment test
based on the period of time that has passed since the most recent determination of fair value, even when the Company does not
believe that it is more-likely-than-not that the fair value of the business is less than carrying amount.

In analyzing goodwill for potential impairment in the quantitative impairment test, the Company uses a combination of
the income and market approaches to estimate the fair value. Under the income approach, the Company calculates the fair value
based on estimated future discounted cash flows. The assumptions used are based on what the Company believes a hypothetical
marketplace participant would use in estimating fair value. Under the market approach, the Company estimates the fair value
based on market multiples of revenue or earnings before interest, income taxes, depreciation, and amortization for benchmark
companies. If the fair value exceeds carrying value, then no further testing is required. However, if the fair value were to be less
than  carrying  value,  the  Company  would  then  determine  the  amount  of  the  impairment  charge,  if  any,  which  would  be  the
amount that the carrying value of the goodwill exceeded its implied value. No goodwill impairments have been identified and
recognized during any of the periods presented.

We test goodwill annually for impairment during the fourth quarter.  During the year ended December 31, 2022, we
began performing the annual impairment test as of October 1, compared to December 31 in previous years.  This facilitates the
overall  coordination  and  timing  of  our  annual  financial  statement  close  cycle  and  the  preparation  of  our  annual  report.  The
change  to  the  testing  date  did  not  represent  a  material  change  to  our  method  of  applying  the  accounting  principle  in  light  of
requirements to monitor goodwill throughout the reporting period.

Since the acquisition of FrontRow Calypso LLC occurred December 31, 2021, the Company believes that the carrying
amount does not exceed the fair value for the reporting unit. Goodwill arising from the FrontRow Calypso LLC acquisition was
not included in the goodwill impairment testing for 2022.

INTANGIBLE ASSETS

Intangible assets are amortized using the straight-line method over their estimated period of benefit and presented net
of  accumulated  amortization.  The  Company  reviews  the  carrying  amounts  of  intangible  assets  for  impairment  whenever  an
event  or  change  in  circumstances  indicates  that  the  carrying  amount  of  the  assets  may  not  be  recoverable.  The  Company
measures the recoverability of intangible assets by comparing the carrying amount of each asset to the future undiscounted cash
flows the Company expects the asset to generate. Impairment is measured by the amount in which the carrying value of the asset
exceeds  its  fair  value.  In  addition,  the  Company  periodically  evaluates  the  estimated  remaining  useful  lives  of  long-lived
intangible  assets  to  determine  whether  events  or  changes  in  circumstances  warrant  a  revision  to  the  remaining  period  of
amortization.

DERIVATIVE TREATMENT OF STOCK PURCHASE WARRANTS

The Company classifies common stock purchase warrants as equity if the contracts (i) require physical settlement or
net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement
or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to
net cash settle the

F-10

Table of Contents

contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a choice of net-
cash settlement or settlement in shares (physical settlement or net-share settlement), or (iii) contain reset provisions as either an
asset  or  a  liability.  The  Company  assesses  classification  of  its  freestanding  derivatives  at  each  reporting  date  to  determine
whether a change in classification between equity and liabilities is required.

The Company determined that certain warrants to purchase common stock do not satisfy the criteria for classification
as equity instruments due to the existence of certain net cash and non-fixed settlement provisions that are not within the sole
control  of  the  Company.  Such  warrants  are  measured  at  fair  value  at  each  reporting  date,  and  the  changes  in  fair  value  are
included in determining net income for the period. See Note 10 “Derivative Liabilities” for more information.  

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments primarily include cash, accounts receivable, warrants, accounts payable and debt.
Due  to  the  short-term  nature  of  cash,  accounts  receivables  and  accounts  payable,  the  carrying  amounts  of  these  assets  and
liabilities approximate their fair value. Debt approximates fair value due to either the short-term nature or recent execution of
the  debt  agreement.  The  amount  of  consideration  received  is  deemed  to  be  the  fair  value  of  long-term  debt  net  of  any  debt
discount and issuance cost.

Warrants and contingent consideration for acquired businesses are recorded at fair value on a recurring basis.

Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants. A fair value hierarchy has been established for valuation inputs that gives the highest
priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The
fair value hierarchy is as follows:

Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has

the ability to access at the measurement date.

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly  or  indirectly.  These  might  include  quoted  prices  for  similar  assets  or  liabilities  in  active  markets,  quoted  prices  for
identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the
asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally
from or corroborated by market data by correlation or other means.

Level  3  Inputs  -  Prices  or  valuation  techniques  that  require  inputs  that  are  both  significant  to  the  fair  value

measurement and unobservable (supported by little or no market activity).

Financial  assets  and  liabilities  are  classified  based  on  the  lowest  level  of  input  that  is  significant  to  the  fair  value
measurement.  The  Company’s  assessment  of  the  significance  of  a  particular  input  to  the  fair  value  measurement  requires
judgment  and  may  affect  the  valuation  of  the  fair  value  of  assets  and  liabilities  and  their  placement  within  the  fair  value
hierarchy levels.

The  following  tables  set  forth,  by  level  within  the  fair  value  hierarchy,  the  Company’s  financial  liabilities  that  were

accounted for at fair value on a recurring basis as of December 31, 2022 and 2021 (in thousands):

Description
Derivative liabilities - warrant instruments

Description
Derivative liabilities - warrant instruments

     Markets for 

 Identical 
 Assets
(Level 1)

Other 
 Observable 
 Inputs
(Level 2)

Significant  
Unobservable 
 Inputs
(Level 3)

Carrying
 Value as of  
December 31, 
2022

—

—

472

$

472

     Markets for  

Identical 
 Assets
(Level 1)

Other 
 Observable 
 Inputs
(Level 2)

Significant  
Unobservable 
 Inputs
(Level 3)

Carrying
 Value as of
December 31, 
2021

$

— $

— $

3,064

$

3,064

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Table of Contents

See  Note  10  for  discussion  of  the  valuation  techniques  and  inputs  and  reconciliation  of  the  opening  and  closing

balances of the fair value of warrants.

The following tables reconcile opening and closing balances of contingent consideration for which fair value is based

on level 3 inputs (in thousands).

Balance, December 31, 2020
Amount paid
Balance, December 31, 2021
Amount paid
Balance, December 31, 2022

$

$

Amount

119
(119)
—
—
—

NET INCOME (LOSS) PER COMMON SHARE

Basic  net  income  (loss)  per  common  share  is  computed  by  dividing  net  income  (loss)  available  to  common
shareholders by the weighted-average number of common shares outstanding during the period. For purposes of this calculation,
options  to  purchase  common  stock,  restricted  stock  units  subject  to  vesting  and  warrants  to  purchase  common  stock  were
considered  to  be  common  stock  equivalents.  Diluted  net  income  (loss)  per  common  share  is  determined  using  the  weighted-
average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents.
The dilutive effect of convertible instruments is determined using the if-converted method, presuming share settlement. Under
the if-converted method, securities are assumed to be converted at the beginning of the period, and the resulting common shares
are  included  in  the  denominator  of  the  diluted  calculation  for  the  entire  period  being  presented.  In  periods  when  losses  are
reported,  the  weighted-average  number  of  common  shares  outstanding  excludes  common  stock  equivalents,  because  their
inclusion would be anti-dilutive. For the year ended December 31, 2022, potentially dilutive securities that were not included in
the  diluted  per  share  calculation  because  they  would  be  anti-dilutive  comprise  3.9  million  shares  from  options  to  purchase
common  shares  and  2.4  million  of  unvested  restricted  shares,  10.8  million  shares  issuable  upon  exercise  of  warrants.
Additionally, potentially dilutive securities of 17.8 million shares from the assumed conversion of preferred stock are excluded
from the denominator because they would be anti-dilutive. For the year ended December 31, 2021, potentially dilutive securities
that were not included in the diluted per share calculation because they would be anti-dilutive comprise 4.1 million shares from
options to purchase common shares, unvested restricted shares of 2.0 million and 2.1 million shares issuable upon exercise of
warrants. Additionally, potentially dilutive securities of 17.8 million shares from the assumed conversion of preferred stock are
excluded from the denominator because they would be anti-dilutive.

REVENUE RECOGNITION

In  accordance  with  Topic  606  Revenue  from  Contracts  with  Customers,  the  Company  recognizes  revenue  at  the
amount  to  which  it  expects  to  be  entitled  when  control  of  the  products  or  services  is  transferred  to  its  customers.  Control  is
generally transferred when the Company has a present right to payment and the title and the significant risks and rewards of
ownership of products or services are transferred to its customers. Product revenue is derived from the sale of interactive panels,
audio  and  communication  equipment  and  related  software  and  accessories  to  distributors,  resellers,  and  end  users.  Service
revenue is derived from hardware maintenance services, product installation, training, software maintenance, and subscription
services.

Nature of Products and Services and Related Contractual Provisions

The  Company’s  sales  of  interactive  devices,  including  panels,  audio  and  communication  equipment  and  other
interactive devices generally include hardware maintenance services, a license to software, and the provision of related software
maintenance.  Interactive  devices  are  generally  sold  with  hardware  maintenance  services  with  terms  of  approximately  36-60
months. Software maintenance includes technical support, product updates on a when and if available basis, and error correction
services.  At  times,  non-interactive  panels  are  also  sold  with  hardware  maintenance  services  with  terms  of  approximately  60
months. The Company also licenses software independently of its interactive devices, in which case it is bundled with software
maintenance, and in some cases, subscription services that include access to on-line content, and cloud-based applications. The
Company’s software subscription services provide

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access to content and software applications on an as needed basis over the Internet, but do not provide the right to take delivery
of the software applications.

The Company’s product sales, including those with software and related services, generally include a single payment
up  front  for  the  products  and  services,  and  revenue  is  recorded  net  of  estimated  sales  returns  and  rebates  based  on  the
Company’s expectations and historical experience. For most of the Company’s product sales, control transfers, and therefore,
revenue is recognized when products are shipped at the point of origin. When the Company transfers control of its products to
the customer prior to the related shipping and handling activities, the Company has adopted a policy of accounting for shipping
and handling activities as a fulfillment cost rather than a performance obligation. For many of the Company’s software product
sales, control is transferred when shipped at the point of origin since the software is installed on the interactive hardware device
in advance of shipping. For other software product sales, control is transferred when the customer receives the related access
code or interactive hardware since the customer’s access code or connection to the interactive hardware activates the software
license  at  which  time  the  software  is  made  available  to  the  customer.  For  the  Company’s  software  maintenance,  hardware
maintenance, and subscription services, revenue is recognized ratably over time as the services are provided since time is the
best output measure of how those services are transferred to the customer.

The  Company’s  installation,  training  and  professional  development  services  are  generally  sold  separately  from  the
Company’s products. Control of these services is transferred to our customers over time with hours/time incurred in providing
the service being the best depiction of the transfer of services since the customer is receiving the benefit of the services as the
work is performed.

For the sale of third-party products and services where the Company obtains control of the products and services before
transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company
considers multiple factors when determining whether it obtains control of the third-party products and services including, but
not  limited  to,  evaluating  if  it  can  establish  the  price  of  the  product,  retains  inventory  risk  for  tangible  products  or  has  the
responsibility for ensuring acceptability of the product or service. The Company has not historically entered into transactions
where it does not take control of the product or service prior to transfer to the customer.

The Company excludes all taxes assessed by a governmental agency that are both imposed on and concurrent with the
specific revenue-producing transaction from revenue (for example, sales and use taxes). In essence, the Company is reporting
these amounts collected on behalf of the applicable government agency on a net basis as though they are acting as an agent. The
taxes collected and not yet remitted to the governmental agency are included in accounts payable and accrued expenses in the
accompanying consolidated balance sheets.

Significant Judgments

For  contracts  with  multiple  performance  obligations,  each  of  which  represent  promises  within  a  contract  that  are
distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices
(“SSPs”). The Company’s products and services included in its contracts with multiple performance obligations generally are
not  sold  separately  and  there  are  no  observable  prices  available  to  determine  the  SSP  for  those  products  and  services.  Since
observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of
the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating
SSPs  without  observable  prices  considers  multiple  factors  that  may  vary  depending  upon  the  unique  facts  and  circumstances
related  to  each  performance  obligation  including,  when  applicable,  the  estimated  cost  to  provide  the  performance  obligation,
market trends in the pricing for similar offerings, product-specific business objectives, and competitor or other relevant market
pricing and margins. Because observable prices are generally not available for the Company’s performance obligations that are
sold in bundled arrangements, the Company does not apply the residual approach to determining SSP.

The  Company  has  applied  the  portfolio  approach  to  its  allocation  of  the  transaction  price  for  certain  portfolios  of
contracts that are executed in the same manner, contain the same performance obligations, and are priced in a consistent manner.
The  Company  believes  that  the  application  of  the  portfolio  approach  produces  the  same  result  as  if  they  were  applied  at  the
contract level.

Contract Balances

The timing of invoicing to customers often differs from the timing of revenue recognition and these timing differences
can result in receivables, contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets.
Fees for

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the Company’s product and most service contracts are fixed, except as adjusted for rebate programs when applicable, and are
generally due within 30-60 days of contract execution. Fees for installation, training, and professional development services are
fixed and generally become due as the services are performed. The Company has an established history of collecting under the
terms of its contracts without providing refunds or concessions to its customers. The Company’s contractual payment terms do
not vary when products are bundled with services that are provided over multiple years. In these contracts where services are
expected to be transferred on an ongoing basis for several years after the related payment, the Company has determined that the
contracts generally do not include a significant financing component. The upfront invoicing terms are designed 1) to provide
customers with a predictable way to purchase products and services where the payment is due in the same timeframe as when
the  products,  which  constitute  the  predominant  portion  of  the  contractual  value,  are  transferred,  and  2)  to  ensure  that  the
customer continues to use the related services, so that the customer will receive the optimal benefit from the products over their
lives. Additionally, the Company has elected the practical expedient to exclude any financing component from consideration for
contracts where, at contract inception, the period between the transfer of services and the timing of the related payment is not
expected to exceed one year.

The Company has an unconditional right to consideration for all products and services transferred to the customer. That
unconditional  right  to  consideration  is  reflected  in  accounts  receivable  in  the  accompanying  consolidated  balance  sheets  in
accordance  with  Topic  606.  Contract  liabilities  are  reflected  in  deferred  revenue  in  the  accompanying  consolidated  balance
sheets  and  reflect  amounts  allocated  to  performance  obligations  that  have  not  yet  been  transferred  to  the  customer  related  to
software  maintenance,  hardware  maintenance,  and  subscription  services.  The  Company  has  no  material  contract  assets  on
December 31, 2022 or 2021. During the years ended December 31, 2022 and 2021, the Company recognized $7.5 million and
$5.6  million,  respectively,  of  revenue  that  was  included  in  the  deferred  revenue  balance  as  of  December  31,  2021  and
December 31, 2020, respectively.

Variable Consideration

The Company’s otherwise fixed consideration in its customer contracts may vary when refunds or credits are provided
for  sales  returns,  stock  rotation  rights,  price  protection  provisions,  or  in  connection  with  certain  other  rebate  provisions.  The
Company generally does not allow product returns other than under assurance warranties or hardware maintenance contracts.
However,  the  Company,  on  a  case-by-case  basis,  will  grant  exceptions,  mostly  “buyer’s  remorse”  where  the  distributor  or
reseller’s  end  customer  either  did  not  understand  what  they  were  ordering,  or  determined  that  the  product  did  not  meet  their
needs.  An  allowance  for  sales  returns  is  estimated  based  on  an  analysis  of  historical  trends.  In  very  limited  situations,  a
customer  may  return  previous  purchases  held  in  inventory  for  a  specified  period  of  time  in  exchange  for  credits  toward
additional purchases. The Company provides rebates to certain customers based on the achievement of certain sales targets. The
provision for rebates is estimated based on customers’ contracted rebate programs and our historical experience of rebates paid.
The Company includes variable consideration in its transaction price when there is a basis to reasonably estimate the amount of
the fee and it is probable there will not be a significant reversal. These estimates are generally made using the expected value
method based on historical experience and are measured at each reporting date. There was no material revenue recognized in
2022 related to changes in estimated variable consideration that existed at December 31, 2021.

Remaining Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit
of accounting within the contract. The transaction price is allocated to each distinct performance obligation and recognized as
revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The
Company identifies performance obligations at contract inception so that it can monitor and account for the obligations over the
life of the contract. Remaining performance obligations represent the portion of the transaction price in a contract allocated to
products  and  services  not  yet  transferred  to  the  customer.  As  of  December  31,  2022  and  2021,  the  aggregate  amount  of  the
contractual transaction prices allocated to remaining performance obligations was $23.9 million and $21.5 million, respectively.
The Company expects to recognize revenue on approximately 33% of the remaining performance obligations in 2023, 27% in
2024, 21% in 2025, 13% in 2026, with the remainder recognized thereafter.

In accordance with Topic 606, the Company has elected not to disclose the value of remaining performance obligations
for  contracts  for  which  the  Company  recognizes  revenue  at  the  amount  to  which  it  has  the  right  to  invoice  for  services
performed  (for  example,  a  time-and-materials  professional  services  contract).  In  addition,  the  Company  has  elected  not  to
disclose the value of remaining performance obligations for contracts with performance obligations that are expected, at contract
inception, to be satisfied over a period that does not exceed one year.

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Disaggregated Revenue

The  Company  disaggregates  revenue  based  upon  the  nature  of  its  products  and  services  and  the  timing  and  in  the
manner which it is transferred to the customer. Although all products are transferred to the customer at a point in time, hardware
and  some  software  is  pre-installed  on  the  interactive  device  are  transferred  at  the  point  of  shipment,  while  some  software  is
transferred  to  the  customer  at  the  time  the  hardware  is  received  by  the  customer  or  when  software  product  access  codes  are
delivered  electronically  to  the  customer.  All  service  revenue  is  transferred  over  time  to  the  customer;  however,  professional
services are generally transferred to the customer within a year from the contract date as measured based upon hours or time
incurred while software maintenance, hardware maintenance, and subscription services are generally transferred 3- 5 years from
the contract execution date as measured based upon the passage of time.

Product revenues:

Hardware
Software

Service revenues:

Professional services
Maintenance and subscription services

Contract Costs

Year Ended
December 31, 
(in thousands)

2022

2021

$

$

206,770
4,306

2,638
8,067
221,781

$

$

171,780
4,102

1,419
7,876
185,177

The  Company  capitalizes  incremental  costs  to  obtain  a  contract  with  a  customer  if  the  Company  expects  to  recover
those costs. The incremental costs to obtain a contract are those that the Company incurs to obtain a contract with a customer
that it would not have otherwise incurred if the contract were not obtained (e.g., a sales commission). The Company capitalizes
the costs incurred to fulfil a contract only if those costs meet all the following criteria:

● The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.

● The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy)

performance obligations in the future.

● The costs are expected to be recovered.

Certain  sales  commissions  incurred  by  the  Company  were  determined  to  be  incremental  costs  to  obtain  the  related
contracts, which are deferred and amortized ratably over the estimated economic benefit period. For these sales commissions
that are incremental costs to obtain where the period of amortization would have been recognized over a period that is one year
or less, the Company elected the practical expedient to expense those costs as incurred. Commission costs that are deferred are
classified as current or non-current assets based on the timing of when the Company expects to recognize the expense and are
included  in  prepaid  and  other  assets  and  other  assets,  respectively,  in  the  accompanying  consolidated  balance  sheets.  Total
deferred commissions at December 31, 2022 and 2021 and the related amortization for 2022 and 2021 were less than $300,000.

The Company has not historically incurred any material fulfilment costs that meet the criteria for capitalization.

Bill and Hold Arrangements

From  time  to  time  the  Company  enters  custodial  bill  and  hold  arrangements  with  customers.  Each  arrangement  is
reviewed,  and  revenue  is  recognized  only  when  the  following  criteria  have  been  met:  (1)  the  reason  for  the  bill-and-hold
arrangement  is  substantive  (2)  the  product  is  identified  as  the  customer’s  asset  (3)  the  product  is  ready  for  delivery  to  the
customer (4) there must be a fixed schedule for delivery (5) the seller cannot use the product or direct the product to another
customer. At December 31, 2022, $3.2 million of revenue was recognized for goods that will be delivered to a customer during
the first quarter of 2023.

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WARRANTY RESERVE

For  customers  that  do  not  purchase  hardware  maintenance  services,  the  Company  generally  provides  warranty
coverage on panels and accessories, batteries and computers. This warranty coverage ranges from 2-5 years, and the Company
establishes a liability for estimated product warranty costs, included in other short-term liabilities in the consolidated balance
sheets, at the time the related product revenue is recognized. The warranty obligation is affected by historical product failure
rates and the related use of materials, labor costs and freight incurred in correcting any product failure. Should actual product
failure  rates,  use  of  materials,  or  other  costs  differ  from  the  Company’s  estimates,  additional  warranty  liabilities  could  be
required, which would reduce its gross profit.

RESEARCH AND DEVELOPMENT EXPENSES

Research and development costs are expensed as incurred and consist primarily of personnel related costs, prototype

and sample costs, design costs, and global product certifications mostly for wireless certifications.

INCOME TAX

An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes
arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and
expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and
laws.  In  addition,  a  deferred  tax  asset  can  be  generated  by  net  operating  loss  carryforwards.  If  it  is  more  likely  than  not  that
some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

STOCK-BASED COMPENSATION

The Company estimates the fair value of each stock option compensation award at the grant date by using the Black-
Scholes option pricing model; the fair value for each restricted stock unit award is the market price of the underlying shares at
the date of grant. The fair value determined represents the cost for the award and is recognized on a straight-line basis over the
vesting period during which an employee is required to provide service in exchange for the award. Total expense is reduced by
the previously recognized compensation expense for options that are forfeited prior to vesting when the forfeiture occurs.

LEASES

The  Company  has  entered  into  various  operating  leases  for  certain  office,  support  locations  and  vehicles  with  terms

extending through February 2027. Generally, these leases have initial lease terms of five years or less.

Prior to the adoption of Accounting Standards Update ("ASU") No. 2016-02 "Leases” (Topic 842) on January 1, 2022,
the Company recorded the difference between the rent paid and the straight-line rent expense as a deferred rent liability within
accrued expenses and other current liabilities and other liabilities.

Subsequent  to  the  adoption  of  Topic  842,  operating  lease  assets  and  liabilities  are  reflected  within  operating  lease
assets,  operating  lease  liabilities,  current,  and  operating  lease  liabilities,  non-current,  on  the  consolidated  balance  sheets.
Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent
the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at
commencement date based on the present value of lease payments over the lease term. Many of the leases have one or more
lease renewal options. The exercise of lease renewal options is at our sole discretion. The Company does not consider exercise
of any lease renewal options reasonably certain. Certain of our lease agreements contain early termination options. No renewal
options or early termination options have been included in the calculation of the operating right-of-use assets or operating lease
liabilities. Certain of our lease agreements provide for periodic adjustments to rental payments for inflation. As the majority of
the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate at the commencement
date in determining the present value of lease payments. The incremental borrowing rate is based on the term of the lease. In
connection with the adoption of Topic 842, the Company used incremental borrowing rates on January 1, 2022 for operating
leases that commenced prior to that date. Leases with an initial term of 12 months or less are not recorded on the balance sheet.
For these short-term leases, lease expense is recognized on a straight-line basis over the lease term.

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SUBSEQUENT EVENTS

We reviewed all material events through the date of these consolidated financial statements were issued for subsequent

event disclosure consideration as described in Note 17.

NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncements

The Company adopted Topic 842, as amended, which requires that lessees and lessors recognize lease assets and lease
liabilities  on  the  balance  sheet  and  disclose  key  information  about  leasing  arrangements.  The  Company  elected  the  modified
retrospective approach which it applied on January 1, 2022, and therefore have not restated comparative periods. The Company
elected  certain  relief  options  offered  in  ASU  2016-02  including  the  package  of  practical  expedients,  and  the  option  not  to
recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or
less).  The  Company  also  elected  the  practical  expedient  to  not  separate  lease  and  non-lease  components,  which  allows  it  to
account  for  lease  and  non-lease  components  as  a  single  component.  Finally,  the  Company  elected  not  to  apply  the  hindsight
practical expedient to determine the lease term for existing leases.

The  Company’s  operating  leases  relate  primarily  to  office  space.  As  a  result  of  the  adoption  of  ASU  2016-02,  the
Company  recognized  an  operating  lease  right-of-use  ("ROU")  asset  of  $3.8  million  and  a  current  operating  lease  liability
of approximately $1.6  million  and  a  long-term  operating  lease  liability  of  approximately  $2.3  million  as  of  January  1,  2022,
with no impact on the Company’s Consolidated Statement of Operations and Comprehensive Loss or Consolidated Statement of
Cash Flows. The ROU asset and operating lease liabilities are recorded as separate line items in the Consolidated Balance Sheet.

The Company adopted ASU 2021-06, “Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-
10786,  Amendments  to  Financial  Disclosures  about  Acquired  and  Disposed  Businesses”  to  amend  SEC  paragraphs  in  the
Accounting Standards Codification to reflect the issuance of SEC Release No. 33-10786, Amendments to Financial Disclosures
about Acquired and Disposed Businesses. Among other changes, the final rule modifies the significance tests and improves the
disclosure  requirements  for  (1)  acquired  or  to  be  acquired  businesses,  (2)  real  estate  operations,  and  (3)  pro  forma  financial
information.  In  addition,  the  final  rule  includes  amendments  to  financial  disclosures  specific  to  smaller  reporting  companies
(SRCs). There is no immediate impact on the Company’s financial statements due to the adoption of this standard.

The Company early adopted (as of January 1, 2021) ASU No. 2020-06, “Accounting for Convertible Instruments and
Contracts in an Entity’s Own Equity.” The new guidance simplifies the accounting for certain convertible instruments and for
contracts in an entity’s own equity. Key provisions include the elimination of the “cash conversion” guidance and the “beneficial
conversion feature” guidance in ASC Subtopic 470-20, (Debt with Conversion and Other Options), as well as a simplification of
the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification
by  removing  certain  conditions  in  ASC  Subtopic  815-40-25.  Since  the  beneficial  conversion  feature  is  eliminated  by  this
guidance, it will not be recorded for our Series B preferred stock.

The amendments in ASU 2020-06 further revise the guidance in ASC Topic 260, “Earnings Per Share,” to require

entities to calculate diluted earnings per share for convertible instruments by using the if-converted method. In addition, entities
must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For
the years ended December 31, 2022 and 2021, the Company has calculated diluted earnings per share using the if-converted
method.

The Company early adopted (as of January 1, 2021) ASU No. 2021-08, “Accounting for Contract Assets and Contract
Liabilities  from  Contracts  with  Customers,”  (“ASU  2021-08”),  which  amends  the  guidance  in  ASC  Topic  805,  “Business
Combinations,” to require that “an entity (acquirer) recognize, and measure contract assets and contract liabilities acquired in a
business  combination  in  accordance  with  Topic  606,  rather  than  at  fair  value.”  At  the  acquisition  date,  an  acquirer  would
account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an
acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. The
Company applied the guidance in this ASU to the FrontRow acquisition that was completed on December 31, 2021.

The  Company  adopted  ASU  No.  2019-12,  “Income  Taxes”  (ASU  740):  “Simplifying  the  Accounting  for  Income
Taxes.” The new guidance eliminates the need for an organization to analyze whether the following apply in a given period:
(1) the exception to the

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incremental  approach  for  intraperiod  tax  allocation;  (2)  the  exceptions  to  accounting  for  basis  differences  when  there  are
ownership  changes  in  foreign  investments;  and  (3)  the  exception  in  interim  periods  income  tax  accounting  for  year-to-date
losses that exceed anticipated losses. The ASU also is designed to improve financial statement preparers’ application of income
tax-related  guidance  and  simplify  GAAP  for  (1)  franchise  taxes  that  are  partially  based  on  income,  (2)  transactions  with  a
government that result in a step-up in the tax basis of goodwill, (3) separate financial statements of legal entities that are not
subject  to  tax,  (4)  enacted  changes  in  tax  laws  in  interim  periods  and  (5)  certain  income  tax  accounting  for  employee  stock
ownership plans and affordable housing projects. The standard became effective for the Company on January 1, 2021 and did
not have a material impact on the financial statements.

Recent Accounting Pronouncements not yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses” (Topic 326): Measurement of
Credit  Losses  on  Financial  Instruments.  The  new  guidance  replaces  the  incurred  loss  methodology  with  the  current  expected
credit  loss  (CECL)  methodology.  The  measurement  of  expected  credit  losses  under  the  CECL  methodology  is  applicable  to
financial  assets  measured  at  amortized  cost,  including  trade  accounts  receivable.  It  also  applies  to  off-balance  sheet  credit
exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar
instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. This new guidance changes the
impairment model for most financial assets and certain other instruments. The ASU is not effective until fiscal years beginning
after December 15, 2022, and interim periods within that fiscal year. The Company’s trade receivable terms are short term in
duration and historically losses on accounts receivable have not been significant; write-offs were approximately $243,000 for
the year ended December 31, 2022. Accordingly, the Company does not expect the adoption to have a material impact on the
Company’s financial statements.

There were various other accounting standards and interpretations issued recently, some of which may be applicable to

the Company but none of which are expected to a have a material impact on our financial position, operations, or cash flows.

NOTE 2 –BUSINESS ACQUISITIONS

The acquisitions described below were accounted for as business combinations which require, among other things, that
assets acquired, and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Deferred income
taxes  are  recognized  and  measured  in  accordance  with  Topic  740  “Accounting  for  Income  Taxes”.  Transaction  costs  are
expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired would be
recorded as goodwill.

FrontRow Calypso LLC.

On  December  31,  2021,  the  Company,  and  its  wholly  owned  subsidiary,  Boxlight,  Inc,  acquired  100%  of  the
membership interests of FrontRow Calypso LLC, a Delaware limited liability company (“FrontRow”) in exchange for payment
of $34.7 million to Phonic Ear Inc. and Calypso Systems LLC, the equity holders of FrontRow.

Based in Petaluma, California, FrontRow makes technology that improves communication in learning environments,
including developing network-based solutions for intercom, paging, bells, mass notification, classroom sound, lesson sharing,
AV control and management. FrontRow also has offices in Toronto, Copenhagen, Brisbane, Hamilton (UK) and Shenzhen.

To finance the acquisition of FrontRow, the Company entered into a term loan credit facility, with WhiteHawk Finance

LLC, as lender and WhiteHawk Capital Partners, LP, as collateral agent. See Note 9 “Debt.”

The  assets  acquired  and  liabilities  assumed  were  recorded  at  their  estimated  fair  values  at  the  acquisition  date.
Determining  the  fair  value  of  assets  acquired  and  liabilities  assumed  requires  management  to  use  significant  judgment  and
estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates,
and selection of comparable companies. The Company engaged the assistance of an independent third-party valuation specialist
to determine certain fair value measurements related to acquired assets. The excess consideration over the net fair values of the
assets acquired and liabilities assumed was recognized as goodwill.

The  fair  value  or  net  realizable  value  of  inventories  at  the  date  of  acquisition  was  determined  using  a  “top-down”
approach  based  upon  the  estimated  sales  value,  less  a  reasonable  profit  margin  and  less  the  estimated  costs  to  dispose  of  the
inventory, including

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selling  costs  and  other  disposal  costs  such  as  freight.  The  fair  value  of  accounts  receivable  acquired  in  connection  with  the
acquisition approximated the contractual amount due from customers at that date.

The acquired contract liabilities of FrontRow have been recognized and measured in accordance with Topic 606.

The  following  table  summarizes  the  estimated  acquisition  date  fair  values  of  the  net  assets  acquired  and  liabilities

assumed, and the estimate of the fair value of consideration paid:

(in thousands)

Assets acquired:
Cash
Accounts receivable
Inventories
Prepaid expenses
Property and equipment
Total assets acquired

Accounts payable and accrued expenses
Deferred revenue
Other liabilities
Total liabilities assumed

Net tangible assets acquired

Identifiable intangible assets:
Customer relationships
Trademarks
Technology
Non-compete
Total intangible assets subject to amortization

Goodwill

Total net assets acquired

Consideration paid:
Cash

$

$

$

$

2,752
3,381
10,240
883
348
17,604

(1,501)
(1,225)
(12)
(2,738)

14,866

8,195
3,244
5,036
391
16,866

2,920

34,652

34,652

The following table presents the useful lives over which the acquired intangible assets will be amortized on a straight-

line basis, which approximates the pattern by which the related economic benefits of the assets are consumed:

Customer relationships
Trademarks
Technology
Non-compete agreements

Estimated  
Weighted Average 
 Life (years)

8
10
8
3

Goodwill  is  primarily  attributable  to  synergies  expected  from  the  acquisition  and  the  assembled  workforce.  The
Company  incurred  a  total  of  $500,700  in  acquisition-related  costs  and  expensed  all  such  costs  incurred  during  the  period  in
which  the  service  was  received.  Acquisition  related  costs  are  included  in  general  and  administrative  expenses  in  the
Consolidated  Statement  of  Operations  and  Comprehensive  Loss.  The  results  of  operations  of  FrontRow  are  included  in  the
Consolidated Statement of Operations and Comprehensive Loss beginning at the acquisition date. There was no impact to the
Consolidated Statement of Operations and

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Comprehensive Loss for the year ended December 31, 2021 since the acquisition was consummated on December 31, 2021. For
the year ended December 31, 2022, revenue and net income from FrontRow were $24.8 million and $0.8 million, respectively.

Pro Forma Financials

The following unaudited pro forma information reflects our consolidated results of operations as if the acquisition of
FrontRow had taken place on January 1, 2021. The unaudited pro forma information is not necessarily indicative of the results
of operations that the Company would have reported had the acquisition actually occurred at the beginning of these periods nor
is it necessarily indicative of future results. The unaudited pro forma financial information does not reflect the impact of future
events  that  may  occur  after  the  acquisition,  including,  but  not  limited  to,  anticipated  costs  savings  from  synergies  or  other
operational improvements. The nature and amount of any material, nonrecurring pro forma adjustments directly attributable to
the business combination are included in the pro forma revenue and net earnings reflected below.

Revenues, net

Net loss attributable common shareholders

Interactive Concepts

Year ended December 31, 
2021

(in thousands)
As Reported

$

$

185,177

(14,704)

$

$

(Unaudited)
 (in thousands)
Pro Forma

214,636

(12,868)

On March 23, 2021, the Company acquired 100%  of  the  outstanding  shares  of  Interactive  Concepts  BV,  a  company
incorporated  and  registered  in  Belgium  and  a  distributor  of  interactive  technologies  (“Interactive”),  for  total  consideration  of
approximately  $3.3  million  in  cash,  common  stock  and  deferred  consideration.  The  Company  has  been  Boxlight’s  key
distributor in Belgium and Luxembourg.

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The  following  table  summarizes  the  estimated  acquisition  date  fair  values  of  the  net  assets  acquired  and  liabilities

assumed, and the estimate of the fair value of consideration paid:

Assets acquired:
Cash
Accounts receivable
Inventories
Property and equipment
Total assets acquired

Accounts payable and accrued expenses
Deferred tax liability
Total liabilities assumed

Net tangible assets acquired
Identifiable intangible assets:
Tradename
Customer relationships
Total intangible assets subject to amortization

Goodwill

Total net assets acquired

Consideration paid:
Cash
Deferred cash consideration
Common shares issued

Total consideration paid

(in thousands)

$

$

$

$

1,647
1,045
191
37
2,920

(821)
(230)
(1,051)

1,869

220
745
965

439

3,273

1,795
1,075
403

3,273

NOTE 3 – ACCOUNTS RECEIVABLE - TRADE

Accounts receivable consisted of the following at December 31, 2022 and 2021 (in thousands):

Accounts receivable – trade
Allowance for doubtful accounts
Allowance for sales returns and volume rebates
Accounts receivable - trade, net of allowances

2022

2021

$

$

33,198
(414)
(1,775)
31,009

$

$

31,053
(405)
(1,075)
29,573

Write-offs of accounts receivable was approximately $243,000 and $525,000 for the years ended December 31, 2022

and 2021, respectively.

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NOTE 4 – INVENTORIES

Inventories consisted of the following at December 31, 2022 and 2021 (in thousands):

Finished goods
Spare parts
Reserve for inventory obsolescence
Advanced shipping costs
Inventories, net

2022

2021

$

$

56,583
775
(531)
1,384
58,211

$

$

51,346
260
(599)
584
51,591

The Company wrote off inventories of approximately $1.2 million and $0.6 million for the years ended December 31,

2022 and 2021, respectively.

NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following at December 31, 2022 and 2021 (in thousands):

Prepayments to vendors
Prepaid licenses and other
Prepaid expenses and other current assets

2022

2021

$

$

4,131
3,302
7,433

$

$

7,739
1,705
9,444

Prepaid expenses and other current assets as of December 31, 2022 are net of reserves related to vendor receivables of

$0.8 million. There were no reserves related to vendor receivables as of December 31, 2021.

NOTE 6 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2022 and 2021 (in thousands):

Building
Building improvements
Leasehold improvements
Office equipment
Software
Other equipment
Construction in progress

Property and equipment, at cost
Accumulated depreciation

2022

2021

$

$

200
14
450
1,057
88
678
14

2,501
(768)

Property and equipment, net of accumulated depreciation

$

1,733

$

200
14
176
467
88
335
85

1,365
(292)

1,073

For  the  years  ended  December  31,  2022  and  2021,  the  Company  recorded  depreciation  expense  of  $484,000  and

$156,000, respectively.

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NOTE 7 – INTANGIBLE ASSETS AND GOODWILL

Intangible assets and goodwill consisted of the following at December 31, 2022 and 2021 (in thousands):

INTANGIBLE ASSETS
Patents
Customer relationships
Technology
Domain
Non-compete
Tradenames
Intangible assets, at cost
Accumulated amortization
Intangible assets, net of accumulated amortization

GOODWILL
Beginning Balance
Goodwill acquired during the period
Change due to foreign currency translation
Impairment
Ending Balance

Useful lives

2022

2021

4-10 years
8-15 years
3-5 years
7 years
8-15 years
2-10 years

$

$

$

$

182
52,736
8,943
14
391
12,769
75,035
(22,456)
52,579

26,037
—
(945)
—
25,092

$

$

$

$

182
55,158
8,901
14
391
13,085
77,731
(12,199)
65,532

22,742
3,359
(64)
—
26,037

As of December 31, 2022, the company had $25.1 million of goodwill, of which none was allocated to a reporting unit
with a negative carrying amount. The company’s goodwill has an indefinite useful life and is tested for impairment annually. For
the years ended December 31, 2022 and 2021, the Company recorded amortization expense of $8.6 million and $7.0 million,
respectively. Changes to gross carrying amount of recognized intangible assets and goodwill due to translation adjustments were
approximately ($3.1) million and $3.2 million as of December 31, 2022 and 2021, respectively.

Expected future amortization expense for intangible assets as of December 31, 2022 is as follows (in thousands):

2023
2024
2025
2026
2027
Thereafter

Total

$

$

8,857
7,916
7,804
7,290
6,886
13,826

52,579

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NOTE 8 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable consisted of the following at December 31, 2022 and 2021 (in thousands):

Accounts payable
Accrued expense
Other
Accounts payable and other liabilities

NOTE 9 – DEBT

2022

2021

$

$

30,719
5,306
541
36,566

$

$

The following comprises debt on December 31, 2022 and 2021 (in thousands):

Debt – Third Parties
Paycheck Protection Program
Note payable - Whitehawk
Total debt
Less: Discount and issuance costs

Current portion of debt

Long-term debt
Total debt (net of discount and issuance costs)

Debt - Third Parties:

WhiteHawk Finance LLC

2022

2021

$

$
$

127
49,906
50,033
5,410
845
43,778
44,623

$

$
$

25,714
6,440
1,484
33,638

1,009
58,500
59,509
7,568
9,804
42,137
51,941

In  order  to  finance  the  acquisition  of  FrontRow,  the  Company  and  substantially  all  of  its  direct  and  indirect
subsidiaries, including Boxlight and FrontRow as guarantors, entered into a maximum $68.5 million term loan credit facility,
dated December 31, 2021 (the “Credit Agreement”), with WhiteHawk Finance LLC, as lender (the “Lender”), and WhiteHawk
Capital Partners, LP, as collateral agent. The Company received an initial term loan of $58.5 million on December 31, 2021 (the
“Initial  Loan”)  and  was  provided  with  a  subsequent  delayed  draw  facility  of  up  to  $10  million  that  may  be  provided  for
additional  working  capital  purposes  under  certain  conditions  (the  “Delayed  Draw”).  The  Initial  Loan  and  Delayed  Draw  are
collectively referred to as the “Term Loans.” The proceeds of the Initial Loan were used to finance the Company’s acquisition of
FrontRow, pay off all indebtedness owed to the Company’s then existing lenders, Sallyport Commercial Finance, LLC and Lind
Global Asset Management, LLC, pay related fees and transaction costs, and provide working capital. Of the Initial Loan, $8.5
million was subject to repayment on February 28, 2022, with quarterly principal payments of $625,000 and interest payments
commencing March 31, 2022 and the $40.0 million remaining balance plus any Delayed Draw loans becoming due and payable
in full on December 31, 2025. The Term Loans bear interest at the LIBOR rate plus 10.75%; provided that after March 31, 2022,
if  the  Company’s  Senior  Leverage  Ratio  (as  defined  in  the  Credit  Agreement)  is  less  than  2.25,  the  interest  rate  would  be
reduced to LIBOR plus 10.25%. Such terms are subject to the Company maintaining a borrowing base in terms compliant with
the Credit Agreement.

In  conjunction  with  its  receipt  of  the  Initial  Loan,  the  Company  issued  to  the  Lender  (i)  528,169  shares  of  Class  A
common stock (the “Shares”), which Shares were registered pursuant to the Company’s existing shelf registration statement and
were delivered to the Lender in January 2022, (ii) a warrant to purchase 2,043,291 shares of Class A common stock (subject to
increase to the extent of 3% of any Series B and Series C convertible preferred stock being converted into Class A common
stock), exercisable at $2.00 per share (the “Warrant”), which Warrant was subject to repricing on March 31, 2022 based on the
arithmetic  volume  weighted  average  prices  for  the  30  trading  days  prior  to  September  30,  2022,  in  the  event  the  Company’s
  stock  is  then  trading  below  $2.00  per  share,  (iii)  a  3%  fee  of  $1,800,000,  and  (iv)  a  $500,000  original  issue  discount.  In
addition, the Company agreed to register for resale the shares issuable upon exercise of the Warrant. The Company also incurred
agency fees, legal fees, and other costs in connection with the execution of the Credit Agreement totaling approximately $1.7
million. Under the terms of the warrant issued to WhiteHawk on December 31, 2021, the exercise price of the warrants would
reprice if the stock price on March 31, 2022 was less than the original exercise price, at which

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time the number of warrants would also be increased proportionately, so that after such adjustment the aggregate exercise price
payable for the increased number of warrant shares would be the same as the aggregate exercise price previously in effect. The
warrants repriced on March 31, 2022 to $1.19 per share and the shares increased to 3,434,103.

On July 22, 2022, the Company entered into a Securities Purchase Agreement with an accredited institutional investor.
According to the terms of the WhiteHawk agreement, this purchase agreement triggered a reduction of the exercise price of the
warrants and a revaluation of the derivative liability. The warrants were repriced to $1.10 and shares increased to 3,715,075.

On March 29, 2022, the Company received a notice from the collateral agent, alleging, among other things, defaults as
a result of (i) failure to repay $8.5 million of the facility by February 28, 2022, (ii) non-compliance with the borrowing base
resulting  in  the  Company  being  in  an  over  advance  position  under  the  Credit  Agreement,  and  (iii)  failure  to  timely  provide
certain reports and documents.  As a result, all accrued and unpaid interest owed under the Term Loan, became subject to a post-
default interest rate equal to the highest interest rate allowed for under the Credit Agreement plus 2.50% until such time as the
events  of  default  were  either  waived  or  cured.  In  February  2022,  WhiteHawk  and  the  Company  agreed  in  principle  to  an
extension of the February 2022 Payment. Pursuant to amendment to the Credit Agreement, dated April 4, 2022, the Collateral
Agent  and  Lender  agreed  to  extend  the  terms  of  repayment  of  the  $8.5  million  originally  due  on  February  28,  2022  until
February 28, 2023 and waive and/or otherwise extend compliance with certain other terms of the Credit Agreement in order to
allow the Loan Parties adequate time to comply with such terms.  In July 2022, the Company and Whitehawk agreed that the
notice  had  inadvertently  included  the  default  with  respect  to  the  failure  to  repay  $8.5  million  of  the  facility.  As  a  result,
notwithstanding the notice, both WhiteHawk and the Company have agreed that the Company was not in default in making the
February 2022 Payment to WhiteHawk.

 The principal elements of the April amendment included (a) an extension of time to repay $8.5 million of the principal
amount of the term loan from February 28, 2022 to February 28, 2023, and (b) forbearance on $3,500,000 in over advances until
May  16,  2022  to  allow  the  Company  to  come  into  compliance  with  the  borrowing  base  requirements  set  forth  in  the  Credit
Agreement.    In  such  connection,  the  Loan  Parties  have  obtained  credit  insurance  on  certain  key  customers  whose  principal
offices are located in the European Union and Australia as, without the credit insurance, their accounts owed to the Loan Parties
had  been  deemed  ineligible  for  inclusion  in  the  borrowing  base  calculation  primarily  due  to  the  perceived  inability  of  the
Collateral  Agent  to  enforce  security  interests  on  such  accounts.  In  addition,  the  Lender  and  Collateral  Agent  agreed  to  (i)
reduce, through September 30, 2022, the minimum cash reserve requirement for the Loan Parties, (ii) reduce the interest rate by
50 basis points (to LIBOR plus 9.75%) after delivery of the Loan Parties’ September 30, 2023 financial statements, subject to
the  Loan  Parties  maintaining  1.75  EBITDA  coverage  ratio,  and  (iii)  waive  all  prior  Events  of  Default  under  the  Credit
Agreement. In conjunction with the amendment to the Credit Agreement, the parties entered into an amended and restated fee
letter (the “Fee Letter”) pursuant to which the parties agreed to prepayment premiums of (i) 5% for payments made on or before
December 31, 2022, (ii) 4% for payments made between January 1, 2023 and December 31, 2023, and (iii) 2%  for  payments
made between January 1, 2024 and December 31, 2025.  Furthermore, the parties agreed that no prepayment premiums would
be payable with respect to the first $5.0 million paid under the Term Loan, any payments made in relation to the $8.5 million
due  on  or  before  February  28,  2023,  any  required  amortization  payments  under  the  Credit  Agreement  and  any  mandatory
prepayments by way of ECF or casualty events.

On June 21, 2022, the Company and substantially all of its direct and indirect subsidiaries (together with the Company,
the  “Loan  Parties”),  entered  into  a  second  amendment  (the  “Second  Amendment”)  to  the  four-year  term  loan  credit  facility,
originally  entered  into  December  31,  2021  and  as  amended  on  April  4,  2022  (the  “Credit  Agreement”),  with  the  Collateral
Agent and Lender. The Second Amendment to the Credit Agreement was entered into for purposes of the Lender funding a $2.5
million delayed draw term loan and adjusting certain terms to the Credit Agreement, including adjusting the Applicable Margin
(as defined in the Second Amendment) to 13.25% for  LIBOR Rate Loans and 12.25% for Reference Rate Loans, increasing the
definition  of  change  of  control  from  33%  voting  power  to  40%  voting  power,  requiring  the  Company  to  engage  a  financial
advisor, and allowing additional time, until July 15, 2022, for the Company to come into compliance with certain borrowing
base requirements set forth in the Second Amendment to the Credit Agreement, among other adjustments. As of December 31,
2022 and 2021, the Company was in compliance with all covenants and borrowing base requirements.

During the year ended December 31, 2022, the Company paid the $8.5 million due on February 28, 2023. During the
year ended December 31, 2022, the Company repaid total principal of $10.4 million (inclusive of the $8.5 million) and interest
of $8.3 million to WhiteHawk.

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Lind Global Marco Fund and Lind Global Asset Management

During  the  year  ended  December  31,  2021,  the  Company  repaid  principal  of  $12.0  million  and  interest  of  $584
thousand, to Lind Global by issuing a total of 7.2 million shares of Class A common stock with an aggregate value of $15.9
million to Lind Global and recognized a loss on extinguishment of debt of approximately $3.3 million. Any outstanding debt
owed  to  Lind  Global  was  repaid  in  full  on  December  31,  2021  following  the  Company’s  receipt  of  the  Initial  Loan  from
WhiteHawk.

Paycheck Protection Program Loan

On  May  22,  2020,  the  Company  received  loan  proceeds  of  $1.1  million  under  the  Paycheck  Protection  Program.
 During 2021, the Company applied for forgiveness in the amount of $836 thousand. On March 2, 2022, the Company received
a  decision  letter  from  the  lender  that  the  forgiveness  application  had  been  approved,  leaving  a  remaining  balance  of  $173
thousand to be paid. The Company received a payment schedule from our lender on May 5, 2022, extending the payoff date
until May 2025. The amount remaining on the loan at December 31, 2022 was $127 thousand.

Everest Display, Inc.

On  January  26,  2021,  the  Company  entered  into  an  agreement  with  EDI  and  EDI’s  subsidiary,  AMAGIC,  settling
$1,983,436 in accounts payable owed by the Company to EDI for 793,375 shares of Class A common stock. During the year
ended December 31, 2021, the Company recognized a $357 thousand gain on the settlement of the accounts payable.

Accounts Receivable Financing – Sallyport Commercial Finance

On  September  30,  2020,  Boxlight  Inc.  and  EOS  EDU  LLC  entered  into  an  asset-based  lending  agreement  with
Sallyport Commercial Finance, LLC (“Sallyport”). Sallyport agreed to purchase 90% of the eligible accounts receivable of the
Company during the Term with a right of recourse back to the Company if the receivables are not collectible. Advances against
this agreement accrue interest at the rate of 3.50% in excess of the highest prime rate publicly announced from time to time with
a floor of 3.25%. In addition, the Company is required to pay a daily audit fee of $950 per day. On July 20, 2021, Boxlight and
Sallyport  amended  the  Accounts  Receivable  Agreement  (the  “ARC  Amendment”)  for  purposes  of  increasing  the  Maximum
Facility  Limit  Amount  to  $13,000,000,  as  well  as  increasing  the  minimum  monthly  sales  from  $1,250,000  to  $3,000,000.  In
exchange for entry into the ARC Amendment, Boxlight agreed to a fee of $50,000, representing one percent of the increased
Maximum Facility Limit Amount. Other terms of the Accounts Receivable Agreement remain unchanged. On August 6, 2021,
Boxlight  and  Sallyport  entered  into  an  additional  amendment  of  the  Accounts  Receivable  Agreement  (the  “Second  ARC
Amendment”),  which  further  increased  the  Maximum  Facility  Limit  Amount  to  $15,000,000.  In  exchange  for  entry  into  the
Second ARC Amendment, Boxlight agreed to a fee of $20,000, representing one  percent  of  the  increased  Maximum  Facility
Limit Amount. Other terms of the Accounts Receivable Agreement remain unchanged. Any outstanding debt owed to Sallyport
was repaid in full on December 31, 2021 following the Company’s receipt of the Initial Loan from WhiteHawk.

Debt - Related Parties:

Note Payable - STEM Education Holdings, Pty

On April 17, 2020, the Company acquired MyStemKits and STEM Education Holdings, Pty, an Australian corporation
(“STEM”), the largest online collection of K-12 STEM curriculum for 3D Purchase consideration for the acquisition of STEM
included  a  note  payable  in  the  of  $350,000.  The  note  was  payable  in  four  equal  installments  of  $87,500  on  July  31,  2020,
October 31, 2020, January 31, 2021 and April 30, 2021. Parties acknowledged that potential adjustments may be made to the
installment  payments  due  on  July  31,  2020  and  October  31,  2020  in  the  event  the  actual  gross  revenue  of  MyStemKits  is
materially below budget. Accordingly, and as agreed between Boxlight and the STEM sellers the note payable was adjusted to
$175,000 and was paid off in September 2021.

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Debt Maturity

Principal repayments to be made during the next five years on the Company’s outstanding debt facilities at December

31, 2022 are as follows (in thousands):

2023
2024
2025
2026
2027
Total

$

$

2,680
2,681
44,672
—
—
50,033

NOTE 10 – DERIVATIVE LIABILITIES  

At December 31, 2022 and December 31, 2021, the Company had warrants that contain net cash settlement provisions
or  do  not  have  fixed  settlement  provisions  because  their  conversion  and  exercise  prices  may  be  lowered  under  certain
conditions.  The  Company  concluded  that  the  warrants  should  be  accounted  for  as  derivative  liabilities.  The  Company  used  a
third party to determine the fair value of the derivative liabilities at December 31, 2022 and 2021, and they used a Monte Carlo
Simulation model to determine the fair value. Key assumptions used are as follows:

Common stock issuable upon exercise of warrants
Market value of common stock on measurement date
Exercise price
Risk free interest rate (1)
Expected life in years
Expected volatility (2)
Expected dividend yields (3)

Common stock issuable upon exercise of warrants
Market value of common stock on measurement date
Exercise price
Risk free interest rate (1)
Expected life in years
Expected volatility (2)
Expected dividend yields (3)

     December 31, 2022  

$
$

3,715,075
0.31
1.10
4.02 %

4 years

83.6 %
— %

     December 31, 2021  

$
$

2,043,291
1.38
2.00
1.25 %

5 years

79.3 %
— %

(1) The risk-free interest rate was determined using the applicable Treasury Bill as of the measurement date.
(2) The historical trading volatility for 2022 and 2021 was based on historical fluctuations in stock price for Boxlight and

certain peer companies.

(3) The Company does not expect to pay a dividend in the foreseeable future.

The following table shows the change in the Company’s derivative liabilities for the years ended December 31, 2022

and 2021:

Balance, December 31, 2021
Exercise of warrants
Issuance of warrants
Change in fair value of derivative liabilities
Balance, December 31, 2022

F-27

Amount 
(in thousands)
3,064
(1)
—
(2,591)
472

$

$

    
 
 
 
 
 
 
 
 
 
 
    
 
 
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Balance, December 31, 2020
Exercise of warrants
Issuance of warrants
Change in fair value of derivative liabilities
Balance, December 31, 2021

Amount 
(in thousands)

363
(348)
3,064
(15)
3,064

$

$

The change in fair value of derivative liabilities includes losses from exercise price modifications.

NOTE 11 – INCOME TAX

Pretax income (loss) resulting from domestic and foreign operations is as follows (in thousands):

United States
Foreign
Other Foreign Jurisdictions
Total pretax book loss

2022

2021

(2,569) $
(2,707)
1,582
(3,694) $

(18,130)
6,032
1,606
(10,492)

$

$

The components of income tax expense at December 31, 2022 and December 31, 2021, are as follows (in thousands):

Current:

Federal
State
Foreign
Total Current

Deferred:
Federal
State
Foreign
Total Deferred

Total

2022

2021

$

$

$

$

$

1,491
138
1,399
3,028

$

$

(85)
$
—  

(2,894)
(2,979)

49

$

$

—
62
2,722
2,784

—
—
526
526

3,310

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Table of Contents

The  reconciliation  of  the  provision  for  income  taxes  at  the  United  States  Federal  statutory  rate  compared  to  the

Company’s income tax expense (benefit) as reported is as follows (in thousands)

Loss before income taxes

Income tax benefit computed at the statutory rate
State income taxes-net of federal tax benefit
Foreign tax rate differential
Loss on debt settlement
Section 162(m) compensation
FX Adjustment
GILTI Inclusion
Meals
Stock compensation
Amortization
PPP loan
Non-deductible expenses
Prior period true ups – temporary differences
Rate changes and differentials
Change in valuation allowance

2022

  $

(3,694)  $

2021
(10,492)

(776)
73
(19)
—  
61
—
160
39
83
11
(179)
186
197
(651)
864

(2,203)
49
(107)
788
168
(265)
102
12
(75)
(4)
—
(10)
(35)
2,193
2,697

Income tax expense

$

49

$

3,310

Tax effects of temporary differences at December 31, 2022 and December 31, 2021 are as follows (in thousands):

Deferred tax assets:
Fixed assets
Allowance for bad debts
Inventory
R&D amortization
Accrued expenses
Deferred revenue
Stock compensation
Net lease asset
Other
Interest expense limitation
Net operating loss carry-forwards

Deferred tax assets (liabilities)
Valuation allowance
Deferred tax assets, net

Deferred tax liabilities:
Fixed assets
Intangible assets
Accrued expenses
Prepaid expenses
Other
Deferred tax liabilities

Deferred tax liabilities, net

F-29

2022

2021

$

$

$

$

$

$

— $
507
294
413
—  

5,600
1,209
1
203
3,751
7,282

19,260
(14,084)
5,176

2022

(24)
(8,603)
(752)
(169)
(308)
(9,856)

(4,680)

$

$

$

$

$

13
442
192
—
—
4,232
645
—
—
1,903
8,165

15,592
(11,294)
4,298

2021

—
(11,452)
(413)
(137)
(745)
(12,747)

(8,449)

    
    
 
 
 
 
 
 
 
 
 
 
 
    
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
    
 
 
 
 
Table of Contents

The Company operates in the United States, United Kingdom and other jurisdictions. Income taxes have been provided
based upon the tax laws and rates of the countries in which operations are conducted and income is earned. The cumulative U.S.
Federal  net  operating  losses  carryforward  on  tax  basis  income  was  approximately  $23.5  million  and  $29.9  million  at
December 31, 2022 and 2021, respectively, of which $4.6 million will expire between 2029 and 2037 and $18.9  million  will
carryforward  indefinitely.  The  cumulative  U.S.  state  net  operating  losses  carryforward  was  approximately  $45.8  million  and
$28.8 million on December 31, 2022 and 2021, respectively. The cumulative foreign net operating losses carryforward was $1.8
million and $2.6 million on December 31, 2022 and 2021, respectively.

The legacy Boxlight entities are in a net deferred tax asset position in the United States, the United Kingdom, and other
jurisdictions,  primarily  driven  by  the  aforementioned  net  operating  losses.  The  recoverability  of  these  deferred  tax  assets
depends  on  the  Company’s  ability  to  generate  taxable  income  in  the  jurisdiction  to  which  the  carryforward  applies.  It  also
depends on specific tax provisions in each jurisdiction that could impact utilization. For example, in the United States, a change
in ownership, as defined by federal income tax regulations, could significantly limit the Company's ability to utilize our U.S. net
operating loss carryforwards. Additionally, because U.S. tax laws limit the time during which the net operating losses generated
prior to 2018 may be applied against future taxes, if the Company fails to generate U.S.taxable income prior to the expiration
dates  the  Company  may  not  be  able  to  fully  utilize  the  net  operating  loss  carryforwards  to  reduce  future  income  taxes.  The
Company has evaluated both positive and negative evidence as to the ability of its legacy entities in each jurisdiction to generate
future  taxable  income.  Based  on  its  long  history  of  cumulative  losses  in  those  jurisdictions,  it  believes  it  is  appropriate  to
maintain a full valuation allowance on the net deferred tax asset of its legacy Boxlight entities at December 31, 2022 and 2021.
The change in its valuation allowance during 2022 is approximately $0.6 million.

The Sahara entities have recorded a net deferred tax liability, which is primarily driven by the net deferred tax liability
on  the  intangibles  for  which  it  does  not  have  tax  basis.  This  includes  the  deferred  tax  liability  recorded  during  2021  for  the
acquisition  of  Interactive  Concepts.  The  Company  does  not  qualify  for  any  consolidated  filing  positions  in  any  of  these
countries, so there is no ability to net the deferred tax liabilities of the Sahara companies against the deferred tax assets of the
legacy Boxlight companies. Therefore, the net deferred tax liability of $4.7 million at December 31, 2022 is primarily based on
the Sahara acquired entities.

The tax years from 2009 to 2022 remain open to examination in the U.S. federal jurisdictions to which the Company is

subject. The Company has not identified any uncertain tax positions at this time.

On  March  27,  2020,  the  Coronavirus  Aid,  Relief  and  Economic  Security  Act  (the  “CARES  Act”)  was  enacted.  The
CARES Act includes provisions, among others, addressing the carryback of net operating losses for specific periods, refunds of
alternative  minimum  tax  credits,  temporary  modifications  to  the  limitations  placed  on  the  tax  deductibility  of  net  interest
expenses,  and  technical  amendments  for  qualified  improvement  property.  Additionally,  the  CARES  Act  provides  for  various
payroll  incentives,  including  Payroll  Protection  Program  (“PPP”)  loans,  refundable  employee  retention  tax  credits,  and  the
deferral of the employer-paid portion of social security payroll taxes. The Company received a $1.1 million loan under the PPP,
of which over $0.8 million was forgiven in March 2022 under the requirements of the program. The remaining amount owed
will be paid back in May 2022. No other provisions of the CARES Act had a material impact on the Company’s tax provision.

On December 27, 2020, the Consolidated Appropriations Act of 2021 - including the COVID-related Tax Relief Act of
2020 - was enacted. It included a provision that any expenses paid using forgiven PPP loan proceeds would be fully deductible.
This has been reflected in the Company’s tax provision.

Effective  January  1,  2022,  for  U.S.  tax  purposes  research  and  development  costs,  including  software  development
costs, are required to be capitalized and will be deductible over five years for costs incurred domestically and over fifteen years
for  costs  incurred  in  a  foreign  country.  Additionally,  the  first  year  of  amortization  requires  that  amortization  begin  with  the
midpoint of the taxable year. As of December 31, 2022, the Company has recorded a deferred tax asset of $0.4 million related to
capitalized research and development costs.

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NOTE 12 – EQUITY

Preferred Shares

The Company’s articles of incorporation, as amended on December 15, 2016, provide that the Company is authorized
to issue 50,000,000 shares of preferred stock consisting of: 1) 250,000 shares of non-voting Series A preferred stock, with a par
value of $0.0001 per share; 2) 1,200,000 shares of voting Series B preferred stock, with a par value of $0.0001 per share; 3)
270,000 shares of voting Series C preferred stock, with a par value of $0.0001 per share; and 4) 48,280,000 shares of “blank
check” preferred stock as may be designated from time to by the Company’s board of directors.

Issuance of preferred shares

Series A Preferred Stock

At the time of the Company’s initial public offering, 250,000 shares of the Company’s non-voting convertible Series A
preferred stock were issued to Vert Capital for the acquisition of Genesis. All of the Series A preferred stock was convertible
into 398,406 shares of Class A common stock. On August 5, 2019, 82,028 of these preferred shares were converted into 130,721
shares of Class A common stock.

Series B Preferred Stock and Series C Preferred Stock

On September 25, 2020, in connection with the acquisition of Sahara, the Company issued 1,586,620 shares of Series B
Preferred Stock and 1,320,850  shares  of  Series  C  Preferred  Stock.  The  Series  B  Preferred  Stock  has  a  stated  and  liquidation
value of $10.00  per  share  and  pays  a  dividend  out  of  the  earnings  and  profits  of  the  Company  at  the  rate  of  8%  per  annum,
payable quarterly. The Series B Preferred Stock is convertible into the Company’s Class A common stock at a conversion price
of $1.66 which was the closing price of BOXL’s Class A common stock on the Nasdaq stock market on September 25, 2020 (the
“Conversion  Price”)  either  (i)  at  the  option  of  the  holder  at  any  time  after  January  1,  2024  or  (ii)  automatically  upon  the
Company’s Class A common stock trading at 200% of the Conversion Price for 20 consecutive trading days (based on a volume
weighted average price). The Series C Preferred Stock has a stated and liquidation value of $10.00 per share and is convertible
into  the  Company’s  Class  A  common  stock  at  the  Conversion  Price  either  (i)  at  the  option  of  the  holder  at  any  time  after
January 1, 2026 or (ii) automatically upon the Company’s Class A common stock trading at 200% of the Conversion Price for
20 consecutive trading days (based on a volume weighted average price).

To the extent not previously converted into the Company’s Class A common stock, the outstanding shares of Series B
Preferred Stock shall be redeemable at the option of the Holders at any time or from time to time commencing on January 1,
2024, upon thirty (30) days prior written notice to the Holders, for a redemption price, payable in cash, equal to sum of (a) Ten
($10.00) multiplied by the number of shares of Series B Preferred Stock being redeemed (the “Redeemed Shares”), plus (b) all
accrued and unpaid dividends, if any, on such Redeemed Shares. The Series C Preferred Stock is also subject to redemption on
the same terms commencing January 1, 2026. The aggregate estimated fair value of the Series B and C Preferred Stock of $28.5
million was included as part of the total consideration paid for the purchase of Sahara.

On March 24, 2021, the Company entered into a share redemption and conversion agreement with certain holders of
Series  B  and  Series  C  preferred  stock  (the  “Redemption  Agreement”)  which  allows  the  Company  to  redeem  and  repurchase
each  such  stockholder’s  shares  of  Series  B  preferred  stock  on  or  before  June  30,  2021  for  the  stated  or  liquidation  value  of
approximately  £11.5  million  (or  approximately  $15.9  million)  plus  accrued  dividends  from  January  1,  2021  to  the  date  of
purchase.  Such  stockholders  hold  96%  of  the  Series  C  preferred  stock.  Upon  redemption,  the  Series  C  shares  held  by  such
stockholders would convert into approximately 7.6 million shares of Class A Common Stock at the stated conversion price of
$1.66 per share.

On June 14, 2021, the Company entered into an amendment to the Redemption Agreement (the “Amended Redemption
Agreement”)  for  purposes  of  extending  the  completion  date  to  on  or  before  December  31,  2021.  In  addition,  the  Amended
Redemption Agreement changed the definition of “Redemption Payments” such that the redemption payment schedule would
begin on or before May 31, 2021, for the quarter then ended and continue quarterly until the date of completion.

Regarding  these  amendments,  the  Company  applied  the  accounting  guidance  from  ASC  Subtopic  470-50,  “Debt
Modifications and Extinguishments,” pertaining to determining whether an amendment to an equity-classified preferred share is
an extinguishment or

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modification, and concluded that the Amended Redemption Agreement on June 14, 2021, as it effected the Series B Preferred
Stock, resulted in an extinguishment of the original equity instruments subject to redemption agreement. Accordingly, the Series
B  Preferred  Stock  subject  to  the  Amended  Redemption  Agreement  was  recorded  at  its  fair  value  as  of  June  14,  2021,  and  a
$367,000  deemed  contribution  was  credited  to  additional-paid-in-capital.  With  the  Redemption  Agreement,  the  Series  B
Preferred  Stock  includes  a  beneficial  conversion  feature,  but  in  accordance  with  ASC  Subtopic  470-20,  since  it  is  dependent
upon  contingencies  that  are  not  solely  in  the  control  of  the  holder,  the  beneficial  conversion  feature  was  not  recognized  for
accounting  purposes.  Since  we  early  adopted  (as  of  January  1,  2021)  ASU  No.  2020-06,  “Accounting  for  Convertible
Instruments  and  Contracts  in  an  Entity’s  Own  Equity,”  which  includes  a  key  provision  eliminating  the  beneficial  conversion
feature guidance in ASC Subtopic 470-20, we have not recorded the beneficial conversion feature.

The  Series  B  Preferred  Stock  has  been  recorded  at  its  estimated  fair  value  on  the  date  of  issuance  of  approximately
$16.1  million,  which  includes  the  conversion  and  redemption  features  as  they  have  not  been  bifurcated  from  the  host
instruments.

The  Series  C  Preferred  Stock  has  been  recorded  at  its  estimated  fair  value  on  the  date  of  issuance  of  approximately

$12.4 million, which includes the redemption features as they have not been bifurcated from the host instrument.

As the redemption features in the Series B Preferred Stock and Series C Preferred Stock are not solely with the control
of the Company, the Company has classified the Series B Preferred Stock and Series C Preferred Stock in temporary equity on
the Company’s consolidated balance sheet.

Common Stock

The Company’s common stock consists of 150,000,000 shares of Class A voting common stock and 50,000,000 shares
of Class B non-voting common stock. Class A and Class B common stock have the same rights except that Class A common
stock is entitled to one  vote  per  share  while  Class  B  common  stock  has  no  voting  rights.  Upon  any  public  or  private  sale  or
disposition  by  any  holder  of  Class  B  common  stock,  such  shares  of  Class  B  common  stock  shall  automatically  convert  into
shares  of  Class  A  common  stock.  As  of  December  31,  2022,  and  December  31,  2021,  the  Company  had  74,716,696  and
63,821,901  shares  of  Class  A  common  stock  issued  and  outstanding,  respectively.  No  Class  B  shares  were  outstanding  at
December 31, 2022 and December 31, 2021.

Issuance of common stock

Securities Purchase Agreement

On July 22, 2022, the Company, entered into a Securities Purchase Agreement with an accredited institutional investor
  pursuant  to  which  the  Company  agreed  to  issue  and  sell,  in  a  registered  direct  offering  directly  to  the  Investor,  7.0  million
shares    of  the  Company’s  Class  A  common  stock,  par  value  $0.0001  per  share  (“Common  Stock”),  pre-funded  warrants  (the
“Pre-Funded Warrants”) to purchase 352,940  shares  of  Common  Stock  at  an  exercise  price  of  $0.0001 per share, which Pre-
Funded Warrants were issued in lieu of shares of Common Stock to ensure that the Investor did not exceed certain beneficial
ownership  limitations,  and  warrants  to  purchase  an  aggregate  of  7,352,940  shares  of  Common  Stock  at  an  exercise  price  of
$0.68 per share (the “Warrants”, and collectively with the Pre-Funded Warrants and the Shares, the “Securities”). The Securities
were  sold  at  a  price  of  $0.68  per  share  for  total  gross  proceeds  to  the  Company  of  $5.0  million,  before  deducting  estimated
offering  expenses,  and  excluding  the  exercise  of  any  Warrants  or  Pre-Funded  Warrants.  The  Pre-Funded  Warrants  were
exercisable immediately and the Warrants will be exercisable six months after the date of issuance and will expire five and a
half years from the date of issuance. As such, the net proceeds to the Company from the offering, after deducting placement
agent’s  fees  and  estimated  expenses  payable  by  the  Company  and  excluding  the  exercise  of  any  Warrants  or  Pre-Funded
Warrants was $4.6 million of which the proceeds net of issuance costs were allocated based on the relative fair values of the
instruments,  warrants  and  prefunded  warrants;  $2.4  million  was  allocated  to  common  stock,  $2.2  million  was  allocated  to
warrants and $118 thousand was allocated to the pre-funded warrants. On August 9, 2022, the Investor exercised the prefunded
warrants.

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Table of Contents

The Company evaluated whether the Warrants, Pre-Funded Warrants and/or Shares were in the scope of ASC Topic
480  “Distinguishing  Liabilities  from  Equity,”  which  discusses  the  accounting  for  instruments  with  characteristics  of  both
liabilities and equity. The guidance in Topic 480, and the resulting liability classification, is applicable to such instruments when
certain criteria are met. Based on its analysis, the Company concluded that the Warrants, Pre-Funded Warrants and Shares did
not meet any of the criteria to be subject to liability classification under Topic 480 and are therefore classified as equity.

Credit Facility

In conjunction with its receipt of the WhiteHawk loan, the Company issued to WhiteHawk 528,169 shares of Class A
common stock, which were registered pursuant to the Company’s existing shelf registration statement and were delivered to the
WhiteHawk in January 2022.

Debt Conversion

During the year ended December 31, 2021, the Company issued 7.9 million shares of Class A common stock in lieu of
$13.7 million in principal and interest payments due in relation to notes payable to Lind Global. These conversion transactions
resulted in a $3.8 million loss on the settlement of debt obligations.

Accounts Payable and Other Liabilities Conversion

During  the  year  ended  December  31,  2021,  the  Company  issued  793,375  shares  of  Class A  common  stock  with  an
aggregate value of $1.6 million to Everest Display, Inc. to convert $2.0 million in accounts payable owed, resulting in a gain of
$356,700 from settlement of liabilities.

Conversion of Restricted Stock Units

During the year ended December 31, 2022 and 2021, respectively, 2,489,075 and 916,682 restricted stock units vested

and were converted into Class A common stock.

Exercise of Stock Options

There were 296,841 options to purchase common stock that were exercised during the year ended December 31, 2022.

There were 492,460 options to purchase common stock exercised during the year ended December 31, 2021.

Exercise of Warrants

During the year ended December 31, 2022, pre-funded warrants to purchase 352,940 shares of Common Stock at an
exercise price of $0.001 per share were exercised. During the year ended December 31, 2021, 295,000 warrants were exercised
with an exercise price of $0.42.

Other

On March 23, 2021, the Company acquired 100%  of  the  outstanding  shares  of  Interactive  Concepts  BV,  a  company
incorporated  and  registered  in  Belgium  and  a  distributor  of  interactive  technologies  (“Interactive”),  for  total  consideration  of
approximately $3.3 million in cash, common stock and deferred consideration. The company has been Boxlight’s key distributor
in Belgium and Luxembourg. The company issued 142,882 shares of Class A Common Stock, in conjunction with the purchase
of Interactive.

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NOTE 13 – STOCK COMPENSATION

Grants  made  under  the  Equity  Incentive  Plans  must  be  approved  by  the  Company’s  board  of  directors.  The  total
number of underlying shares of the Company’s Class A common stock available for grant to directors, officers, key employees
and  consultants  of  the  Company  or  a  subsidiary  of  the  Company  under  the  Company’s  2021  Equity  Incentive  Plan  was
5,000,000 shares.

The  2021  Equity  Incentive  Plan  was  approved  by  the  Company’s  Board  on  April  12,  2021  and  approved  by  the

shareholders at the Company’s 2021 Annual Shareholders Meeting held on June 25, 2021.

Stock Options

Under our Equity Incentive Plans, an employee may receive an award of stock grants that provides the opportunity in
the future to purchase the Company’s shares at the market price of our stock on the date the award is granted (strike price). The
options become exercisable over a range of immediately vested to four-year vesting periods and expire five years from the grant
date, unless stated differently in the option agreements, if they are not exercised. We record compensation expense based on the
estimated fair value of the awards which is amortized as compensation expense on a straight-line basis over the vesting period.
Accordingly, total expense related to the award is reduced by the fair value of options that are forfeited by employees that leave
the Company prior to vesting.

Following is a summary of the option activities during the years ended December 31, 2022 and 2021:

Outstanding, December 31, 2020
Granted
Exercised
Cancelled
Outstanding, December 31, 2021
Granted
Exercised
Cancelled
Outstanding, December 31, 2022
Exercisable, December 31, 2022

     Weighted 
Average
Remaining 
Contractual 

Weighted 
Average 

Number of 
Units
4,850,784

Exercise Price Term (in years)
3.51
$
— $
$
$
$
$
$
$
$
$

1.76  
—  
0.84  
1.01  
1.92
1.12
0.25
2.59
1.61
1.90

2.17
1.77

2.29

(492,460)
(304,208)
4,054,116
1,221,744
(296,841)
(1,063,142)
3,915,877
2,782,384

The Company estimates the fair value of each stock option award on the date of grant using a Black-Scholes option
pricing  model.  The  Company  used  the  following  inputs  to  value  warrants  issued  during  the  year  ending  December  31,  2022
using  the  Black  Scholes  option  valuation  method:  market  value  on  measurement  date  of  $0.00  to  $0.91;  exercise  price  of
$0.13  to  $5.01;  risk  free  interest  rate  of  1.45%  to  2.87%;  expected  term,  3  to  4  years;  expected  volatility,  ranging
from 49% to 148% and expected dividend yield of 0%.

As  of  December  31,  2022  and  December  31,  2021,  the  stock  options  had  an  intrinsic  value  of  approximately

$18 thousand and $1.9 million, respectively.

On  May  3,  2022,  the  Boxlight  board  of  directors  adopted  a  resolution,  in  exchange  for  a  three-year  non-compete
agreement,  to  grant  Mark  Elliott,  a  member  of  the  board  and  former  CEO  of  the  Company,  an  extension  for  one  year,  of
previously granted stock options to purchase a total of 577,675 shares of Class A common stock, par value $0.001 per share,
which  had  expired  on  January  12,  2022.  The  stock  price  on  the  remeasurement  date  was  $1.04  and  the  incremental
compensation recognized was approximately $314 thousand.

On  June  13,  2022,  the  Boxlight  board  of  directors  granted  Greg  Wiggins,  Chief  Financial  Officer,  stock  options
for 150,000  shares  of  the  Company’s  Class  A  common  stock  will  vest  in  equal  quarterly  installments  over  a  four-year  term
commencing on July 5, 2022.

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On  February  14,  2022,  with  an  effective  date  of  January  1,  2022,  the  Company  entered  into  a  letter  agreement  with
Michael Pope, the Chairman and Chief Executive Officer, extending Mr. Pope’s term of employment with the Company. Under
the terms of the agreement, Mr. Pope received a grant 494,069 options to purchase Class A Common Stock, which are valued at
approximately $420 thousand.

There were no issuances of stock options in 2021.

Restricted Stock Units

Under  our  Equity  Incentive  Plans,  the  Company  may  grant  restricted  stock  units  (“RSUs”)  to  certain  employees,
contractors and non-employee directors. Upon granting the RSUs, the Company records a fixed compensation expense equal to
the fair market value of the underlying shares of RSUs granted on a straight-line basis over the requisite services period for the
RSUs. Compensation expense related to the RSUs is reduced by the fair value of units that are forfeited by employees that leave
the Company prior to vesting. The restricted stock units vest over a range of immediately vested to four-year vesting periods in
accordance with the terms of the applicable RSU grant agreement.

The following is a summary of the restricted stock activities during the years ended December 31, 2022 and 2021.

Outstanding, December 31, 2020
Granted
Vested
Forfeited
Outstanding, December 31, 2021
Granted
Vested
Forfeited
Outstanding, December 31, 2022

2022 Grants

     Weighted 
Average
 Grant Date Fair 
Value

$
$
$
$
$
$
$
$
$

1.62
2.81
2.18
1.66
1.81
1.19
1.63
1.34
1.38

Number of Units
2,721,347
1,019,583
(1,498,495)
(268,491)
1,973,947
2,477,675
(1,583,525)
(437,067)
2,431,030

On January 25, 2022, the Company granted an aggregate of 40,000 RSUs to new employees.   The RSUs vest over four

years and the aggregate fair value of the shares was approximately $44 thousand.

On  February  14,  2022,  with  an  effective  date  of  January  1,  2022,  the  Company  entered  into  a  letter  agreement  with
Michael Pope, the Chairman and Chief Executive Officer, extending Mr. Pope’s term of employment with the Company. Under
the terms of the agreement, Mr. Pope received a grant of 163,637 RSU’s, valued at approximately $180 thousand, and vesting
over three years. 

On February 24, 2022, following approval by the Company’s board of directors, the Company’s senior management
issued a total of 1,771,950 RSUs under the terms of Amendment No. 2 to the Boxlight Corporation 2014 Stock Incentive Plan,
vesting over four years, as long-term incentive awards to its employees in the U.S. and Europe. The aggregate fair value of the
shares was $2.1 million.

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On  March  21,  2022,  the  Company  granted  an  aggregate  of  348,840  RSUs  to  its  board  members.  These  RSUs  vest

ratably over one year and had an aggregated fair value of approximately $450 thousand on the grant date.

On  May  26,  2022,  the  company  granted  73,565  RSUs  to  a  company  owned  and  controlled  by  Karel  Callens  named
OLORI. Mr. Callens performs certain sales and marketing functions in our EMEA markets. These RSUs vested and were issued
directly to OLORI, and such common stock issuable upon vesting of the RSUs will be reserved for issuance directly out of the
authorized shares of Class A common stock and not out of the Company’s equity incentive plan.

2021 Grants

On February 24, 2021, the Company granted an aggregate of 130,547 RSUs to its board members. These RSUs vest

ratably over one year and had an aggregated fair value of approximately $374,000 on the grant date.

In addition, on March 20, 2021, the Company granted an aggregate of 875,245 shares of restricted common stock to
Michael Pope, the Company’s CEO and Chairman, pursuant to his employment agreement. These shares were issued pursuant
to the 2014 Equity Incentive Plan, vest ratably over one year, are issued monthly as they vest, and had an aggregated fair value
of approximately $2.5 million on the grant date.

Warrants

The following is a summary of the warrant activities during the years ended December 31, 2022 and 2021:

Outstanding, December 31, 2020
Granted
Exercised
Outstanding, December 31, 2021
Granted
Exercised
Outstanding, December 31, 2022
Exercisable, December 31, 2022

2022 Warrants

Number of 
Units
$
365,000
$
2,043,291
(295,000) $
$
2,113,291
7,705,880
$
(352,940) $
$
9,466,231
$
71,250

     Weighted 
Average 
Remaining 
Contractual 

Weighted 
Average 

Exercise Price Term (in years)
1.27
—
—
0.94

1.44  
2.00  
0.45  
2.00
0.65
0.01
0.68
0.70

5.25
2.56

On  July  22,  2022,  the  Company,  entered  into  a  Securities  Purchase  Agreement  (the  “Purchase  Agreement”)  with  an
accredited institutional investor (the “Investor”) pursuant to which the Company agreed to issue and sell, in a registered direct
offering  directly  to  the  Investor,  7.0  million  shares  (the  “Shares”)  of  the  Company’s  Class  A  common  stock,  par  value
$0.0001  per  share  (“Common  Stock”),  pre-funded  warrants  (the  “Pre-Funded  Warrants”)  to  purchase  352,940  shares  of
Common Stock at an exercise price of $0.0001 per share, which Pre-Funded Warrants were issued in lieu of shares of Common
Stock to ensure that the Investor did not exceed certain beneficial ownership limitations, and warrants to purchase an aggregate
of 7,352,940 shares of Common Stock at an exercise price of $0.68 per share (the “Warrants”, and collectively with the Pre-
Funded Warrants and the Shares, the “Securities”). The Securities were sold at a price of $0.68 per share for total gross proceeds
to the Company of $5.0 million (the “Offering”), before deducting estimated offering expenses, and excluding the exercise of
any  Warrants  or  Pre-Funded  Warrants.  The  Pre-Funded  Warrants  were  exercisable  immediately  and  the  Warrants  will  be
exercisable six months after the date of issuance and will expire five and a half years from the date of issuance. As such, the net
proceeds  to  the  Company  from  the  Offering,  after  deducting  placement  agent’s  fees  and  estimated  expenses  payable  by  the
Company and excluding the exercise of any Warrants or Pre-Funded Warrants was $4.6 million of which the proceeds net of
issuance costs were allocated based on the relative fair values of the instruments, warrants and prefunded warrants; $2.4 million
was  allocated  to  common  stock,  $2.2  million  was  allocated  to  warrants  and  $118  thousand  was  allocated  to  the  pre-funded
warrants. The net proceeds received by the Company will be used for working capital purposes.

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2021 Warrants

On December 31, 2021, the Company granted WhiteHawk, Inc., 2,043,291 warrants, in conjunction with the issuance
of  a  loan  credit  facility  to  the  Company.  The  warrants  had  an  exercise  price  of  $2.00  per  share  and  include  a  provision  that
allows for the exercise price to be adjusted based on the Company’s stock price as of March 31, 2022. The expiration period for
these warrants is five years  from  the  issuance  date.  The  warrants  had  an  aggregated  fair  market  value  of  approximately  $3.1
million on the grant date.

Stock compensation expense

For the years ended December 31, 2022 and 2021, the Company recorded the following stock compensation expense
which  is  included  in  general  and  administrative  expense  in  the  Company’s  consolidated  statement  of  operations  and
comprehensive loss (in thousands):

Stock options
Restricted stock units
Warrants
Total stock compensation expense

2022

2021

$

$

805
2,505
3
3,313

$

$

660
3,399
1
4,060

As  of  December  31,  2022,  there  was  approximately  $4.0  million  of  unrecognized  compensation  expense  related  to
unvested options, RSU’s, and warrants, which will be amortized over the remaining vesting period. Of that total, approximately
$2.0 million is estimated to be recorded as compensation expense in 2023.

NOTE 14 – OTHER RELATED PARTY TRANSACTIONS

Management Agreements

On November 1, 2022, the Company entered into a consulting agreement with Mark Elliott, former CEO of Boxlight
and a current member of the board of directors. The agreement is for Mr. Elliott to provide sales, marketing, management and
related  consulting  services  to  assist  the  Company  in  sourcing  and  entering  into  agreements  with  one  or  more  customers  to
provide products and services for specified school districts. The Company will pay Mr. Elliott a fixed payment of $4,000 per
month  and  commissions  equal  to  15%  of  gross  profit  derived  by  the  Company  based  on  total  purchase  order  revenue.  The
agreement, unless renewed or extended will expire on December 31, 2023.

On  January  31,  2018,  the  Company  entered  into  a  management  agreement  (the  “Management  Agreement”)  with  an
entity owned and controlled by our CEO and Chairman, Michael Pope. The Management Agreement is separate and apart from
Mr.  Pope’s  employment  agreement.  The  Management  Agreement  is  effective  as  of  the  first  day  of  the  same  month  that
Mr. Pope’s employment with the Company terminates, and for a term of 13 months, Mr. Pope will provide consulting services to
the Company including sourcing and analyzing strategic acquisitions, assisting with financing activities, and other services. As
consideration  for  the  services  provided,  the  Company  will  pay  a  management  fee  equal  to  0.375%  of  the  consolidated  net
revenues of the Company, payable in monthly installments, not to exceed $250,000 in any calendar year. At his option, Mr. Pope
may  defer  payment  until  the  end  of  each  year  and  receive  payment  in  the  form  of  shares  of  Class A  common  stock  of  the
Company.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Operating Lease Commitments

The  Company  has  entered  into  various  operating  leases  for  certain  office,  support  locations  and  vehicles  with  terms
extending through December 2027. Generally, these leases have initial lease terms of five years or less. Many of the leases have
one  or  more  lease  renewal  options.  The  exercise  of  lease  renewal  options  is  at  its  sole  discretion.  The  Company  does  not
consider  exercise  of  any  lease  renewal  options  reasonably  certain.  Certain  of  the  Company’s  lease  agreements  contain  early
termination options. No renewal options

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or  early  termination  options  have  been  included  in  the  calculation  of  the  operating  right-of-use  assets  or  operating  lease
liabilities. Certain of the Company’s lease agreements provide for periodic adjustments to rental payments for inflation. As the
majority  of  the  Company's  leases  do  not  provide  an  implicit  rate,  the  Company  uses  its  incremental  borrowing  rate  at  the
commencement date in determining the present value of lease payments. The incremental borrowing rate is based on the term of
the lease. In connection with the adoption of Topic 842, the Company used incremental borrowing rates on January 1, 2022 for
operating  leases  that  commenced  prior  to  that  date.  Leases  with  an  initial  term  of  12  months  or  less  are  not  recorded  on  the
balance sheet. For these short-term leases, lease expense is recognized on a straight-line basis over the lease term. At December
31, 2022, the Company had no leases classified as finance leases. The Company is not a lessor in any lease arrangement.

Operating  lease  expense  was  $2.1  million  and  $2.3  million  for  the  year  ended  December  31,  2022  and  2021,
respectively. Variable lease costs and short-term lease cost were not material for the year ended December 31, 2022. Cash paid
for amounts included in the measurement of lease liabilities was $2.4 million for the year ended December 31, 2022. During the
year ended December 31, 2022, the Company obtained new operating lease right-of-use assets totaling $1.8 million.

Future  minimum  lease  payments  of  the  Company’s  operating  leases  with  a  term  over  one  year  subsequent  to

December 31, 2022 are as follows:

Year ending December 31, 
2023
2024
2025
2026
2027
Thereafter
Less imputed interest
Total

(in thousands)

1,995
1,313
1,099
743
246
6
(1,046)
4,356

$

$

The weighted-average remaining lease term is 3.2 years and the weighted-average discount rate is 15.5%.

On January 19, 2022, the Company signed a lease agreement for 64 months for approximately 12,000 feet of space for
its new corporate headquarters in Duluth, Georgia. The Company will occupy the building on approximately May 15, 2022. The
lease will replace the space previously rented by the Company for its headquarters in Lawrenceville, Georgia.

On  February  4,  2022,  the  Company  signed  a  lease  agreement  for  60 months  for  24,000  feet  of  warehouse  space  in

Lawrenceville, Georgia to begin March 1, 2022. The lease will replace the space previously rented by the Company.

For  the  year  ended  December  31,  2021,  if  the  annual  amounts  for  these  leases  were  added  to  the  table  above,  the

minimum lease payments would increase by approximately $2.7 million.

Purchase Commitments

The Company is legally obligated to fulfill certain purchase commitments made to vendors that supply materials used

in the Company’s products. At December 31, 2022 the total amount of such open inventory purchase orders was $56.2 million.

Legal Proceedings

From time to time, the Company is involved in routine litigation and legal proceedings in the ordinary course of its
business, such as, employment matters and contractual disputes. Currently, there is no pending litigation or proceedings that the
Company’s management believes will have a material effect, either individually or in the aggregate, on its business or financial
condition.

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NOTE 16 – CUSTOMER AND SUPPLIER CONCENTRATION

Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.

The Company’s revenues were concentrated with a few customers for the years ended December 31, 2022 and 2021:

Total revenues 
from the customers
as a percentage of 
total revenues 
for the year ended
December 31, 
2022

Accounts 
receivable from
the customers as of
December 31, 
2022
(in thousands)

Total revenues 
from the customer 
as a percentage of 
total revenues 
for the year ended
December 31, 
2021

Accounts 
receivable from
the customers as of
December 31, 
2021
(in thousands)

18 %  $
5 % $

8,468  
469  

11 %  $
4 %  $

3,245
1,223

Customer
1
2

The loss of the significant customers or the failure to attract new customers could have a material adverse effect on our

business, results of operations and financial condition.

The Company’s purchases were concentrated among a few vendors for the years ended December 31, 2022 and 2021:

Total purchases 
from the vendors
as a percentage of
total cost of 
revenues for 
the year ended
December 31, 
2022

Accounts payable 
(prepayment) to 
the vendors as of
December 31,
2022
(in thousands)

Total purchases 
from the vendors
as a percentage 
of total cost of 
revenues for 
the year ended
December 31, 
2021

Accounts payable 
(prepayment) to 
the vendors as of
December 31,
2021
(in thousands)

56 % $
4 % $

24,029
705

16 % $
4 % $

(1,185)
(805)

Vendor
1
2

The  Company  believes  there  are  numerous  other  suppliers  that  could  be  substituted  should  for  the  above  suppliers

become unavailable or non-competitive.

NOTE 17 – SUBSEQUENT EVENTS

On  February  14,  2023,  the  board  of  directors  of  Boxlight  Corporation  approved  the  Company’s  establishment  of  a
share  repurchase  program  (the  “Repurchase  Program”)  authorizing  the  Company  to  purchase  up  to  $15.0  million  of  the
Company’s Class A common stock. Pursuant to the Repurchase Program, the Company may, from time to time, repurchase its
Class A common stock in the open market, in privately negotiated transactions or by other means, including through the use of
trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, in accordance with
applicable securities laws and other restrictions. The timing and total amount of any repurchases made under the Repurchase
Program will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock
prices, and other considerations. The authorization expires on January 26, 2027, may be suspended or discontinued at any time,
and does not obligate the company to acquire any amount of Class A common stock.

As previously disclosed, we received a deficiency letter from the Listing Qualifications Department (the "Staff") of the
Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, for the preceding 30 consecutive business days, the closing
bid price for the Company's Class A common stock (the "Common Stock") was trading below the minimum $1.00 per share
requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the "Bid Price
Requirement").

In  accordance  with  Nasdaq  Rules,  the  Company  was  provided  with  an  initial  period  of  180  calendar  days,  or  until
January 2, 2023 (the ("Initial Grace Period"), to regain compliance with the Bid Price Requirement. Because the Initial Grace
Period was coming to an end and the Company had not yet regained compliance, in December 2022, the Company submitted a
request to Nasdaq to obtain an additional 180-day grace period (the "Additional Grace Period") to regain compliance with the
Bid Price Requirement. On January 3, 2023, the Company received formal approval from Nasdaq granting it an additional 180
days, or until July 3, 2023 (the “Compliance Date”), to regain compliance with the Bid Price Requirement.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

On June 1, 2022, the Company was notified by Dixon Hughes Goodman LLP ("DHG"), the Company's independent
registered  public  accounting  firm,  that  DHG  was  merging  with  BKD,  LLP  ("BKD"),  and  that  following  their  merger,  their
combined entities would operate under the name FORVIS, LLP (“FORVIS”). The audit committee of the Company’s board of
directors approved the engagement of FORVIS, the successor in the merger of DHG and BKD, as the Company’s independent
registered public accounting firm, effective June 1, 2022.

DHG’s audit report on the consolidated financial statements of the Company for the year ended December 31, 2021 did
not contain an adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or
accounting principles.

During the Company’s two most recent fiscal years ended December 31, 2021 and 2020 and through June 2, 2022, the
Company has not had any “disagreements” (as such term is defined in Item 304 of Regulation S-K) with DHG on any matter of
accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not
resolved to the satisfaction of DHG, would have caused DHG to make reference to the subject matter of the disagreement in its
reports on the Company’s consolidated financial statements for such periods.

During the Company’s two most recent fiscal years and through June 2, 2022, there were no “reportable events” (as

such term is defined in Item 304 of Regulation S-K).

On June 2, 2022, the Company provided FORVIS, as successor to DHG, with a copy of the Current Report on Form 8-
K filed on June 2, 2022 (the “Form 8-K”) and has requested that FORVIS furnish it with a letter addressed to the U.S. Securities
and Exchange Commission stating whether or not FORVIS agrees with the Company’s statements in the Form 8-K . A copy of
the letter dated June 2, 2022 furnished by FORVIS in response to that request was filed as Exhibit 16.1 to the Form 8-K filed
with the SEC on June 2, 2022.

ITEM 9A. CONTROLS AND PROCEDURES

As  required  by  Rule  13a-15  of  the  Securities  Exchange  Act  of  1934,  as  amended  (“Exchange  Act”),  under  the
supervision  and  with  the  participation  of  our  management,  including  our  principal  executive  officer  and  principal  financial
officer,  we  evaluated  the  effectiveness  of  the  design  and  operation  of  the  Company’s  disclosure  controls  and  procedures  and
internal control over financial reporting as of the end of the period covered by this Annual Report.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that
are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that
information  is  accumulated  and  communicated  to  management,  including  the  principal  executive  and  financial  officer  as
appropriate,  to  allow  timely  decisions  regarding  required  disclosures.  Our  principal  executive  officer  and  principal  financial
officer  evaluated  the  effectiveness  of  disclosure  controls  and  procedures  as  of  the  end  of  the  period  covered  by  this  Annual
Report  (“Evaluation  Date”),  pursuant  to  Rule  13a-15(b)  under  the  Exchange  Act.  Based  on  that  evaluation,  our  principal
executive  officer  and  principal  financial  officer  concluded  that,  as  of  the  Evaluation  Date,  our  disclosure  controls  and
procedures  were  not  effective  due  to  material  weaknesses  described  in  our  report  on  internal  control  over  financial  reporting
below.

Notwithstanding  the  existence  of  the  material  weaknesses,  we  believe  that  the  consolidated  financial  statements
included in this report fairly present in accordance with U.S. GAAP, in all material respects, our financial condition, results of
operations and cash flows for the periods presented in this Annual Report.

Limitations on the Effectiveness of Controls

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met. Because of the inherent limitations in all controls systems, no evaluation of
controls can provide

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absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure
controls and procedures are designed to provide reasonable assurance of achieving its objectives.

Management’s Report on Internal Control Over Financial Reporting

Our principal executive officer and our principal accounting and financial officer are responsible for establishing and
maintaining  adequate  internal  control  over  financial  reporting,  as  such  term  is  defined  in  Exchange  Act  Rules  13a-15(f).
Management conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31,
2021.  In  making  this  assessment,  management  used  the  criteria  described  in  Internal  Control-Integrated  Framework  (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based upon such assessment and
due to the existence of the material weaknesses in our internal control over financial reporting described below, our principal
executive officer and our principal accounting and financial officer have concluded that, as of December 31, 2022, our internal
control over financial reporting was not effective.

● Our  written  policies  and  procedures  over  accounting  transaction  processing  and  period  end  financial  close  and
reporting  are  limited  which  has  resulted  in  ineffective  oversight  in  the  establishment  of  proper  monitoring  controls
over accounting and financial reporting.

● We  lacked  sufficient  review  of  certain  financial  transactions,  such  that  a  proper  review  had  not  been  performed  by
someone  other  than  preparer,  and  that  process  documentation  is  lacking  for  review  and  monitoring  controls  over
accounting and financial reporting.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable and
not absolute assurance that the objectives of the system are met. In addition, the design of any control system is based in part
upon  certain  assumptions  about  the  likelihood  of  certain  events.  Because  of  these  and  other  inherent  limitations  of  control
systems,  there  can  be  no  assurance  that  any  design  will  succeed  in  achieving  its  stated  goals  under  all  potential  future
conditions, regardless of how remote.

In light of the material weakness described above, we performed additional analysis and other post-closing procedures
to ensure our financial statements were prepared in accordance with generally accepted accounting principles. Accordingly, we
believe  that  the  consolidated  financial  statements  included  in  this  report  fairly  present  in  accordance  with  U.S.  GAAP,  in  all
material respects, our financial condition, results of operations and cash flows for the periods presented in this Annual Report.

Changes in Internal Control Over Financial Reporting

There  has  been  no  change  in  the  Company’s  internal  control  over  financial  reporting  during  the  three  months  ended
December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the company’s internal control over
financial reporting.

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item will be included in our definitive proxy statement for the 2023 Annual Meeting of
Stockholders.

ITEM 11 EXECUTIVE COMPENSATION

The  information  required  by  this  item  will  be  included  in  our  definitive  proxy  statement  for  the  2023  Annual  Meeting  of
Stockholders and is incorporated by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS

The information required by this item will be included in our definitive proxy statement for the 2023 Annual Meeting of
Stockholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information required by this item will be included in our definitive proxy statement for the 2023 Annual Meeting of
Stockholders.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this item will be included in our definitive proxy statement for the 2023 Annual Meeting of
Stockholders.

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

PART IV

Schedule II
Valuation and Qualifying Accounts
(in thousands)

Balance at 
beginning of 
period

Additions

Charge 
(Credit) to 
Cost and 
Expense

Charged to 
Other 
Accounts

$
$

$
$

473
473

405
405

$
$

$
$

425
425

239
239

$
$

$
$

Deductions (a)

Balance at 
end of 
period

$
$

$
$

-

-

493
493

230
230

$
$

$
$

405
405

414
414

Year Ended December 31, 2021
Allowance for doubtful accounts
Total allowance deducted from assets

Year Ended December 31, 2022
Allowance for doubtful accounts
Total allowance deducted from assets

(a) Write-offs, net of recoveries

Exhibit
No.
3.1

Description of Exhibit
Eleventh Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.5 to the
Registration Statement on Form S-1 (File No. 333-204811) filed on December 15, 2016).

3.2

4.1

4.2

4.3

4.4

4.5

4.6

4.7

Amended and Restated Bylaws adopted June 24, 2021 (incorporated by reference to Exhibit 3.1 to the Current
Report on Form 8-K filed on June 24, 2021).

Certificate of Designations of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 4.1 in the
Registration Statement on Form S-1 (Reg. No. 377-00845) filed on June 9, 2015).

Amended and Restated Certificate of Designations of Series A Convertible Preferred Stock (incorporated by
reference to Exhibit 4.1 to the Registration Statement on Form S-1/A (Reg. No 333-204811) filed on December 28,
2015.

Operating Agreement of EOSEDU, LLC, dated September 17, 2018, by and between the Boxlight Corporation and
EOSEDU, LLC dated September 17, 2018 (incorporated by reference to Exhibit 4.8 to Amendment No. 1 to the
Registration Statement on Form S-1 (Reg. No. 333-226068) filed on September 24, 2018).

Form of Certificate of Designations for Series B Convertible Preferred Stock (incorporated by reference to Exhibit
4.1 to the Current Report on Form 8-K filed September 25, 2020).

Form of Certificate of Designations for Series C Convertible Preferred Stock (incorporated by reference to Exhibit
4.2 to the Current Report on Form 8-K filed September 25, 2020).

Form of Amended and Restated Certificate of Designations for Series B Convertible Preferred Stock (incorporated
by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q for the period ended September 30, 2020).

Form of Amended and Restated Certificate of Designations for the Series C Convertible Preferred Stock
(incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q for the period ended September 30,
2020).

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4.8

4.9

4.10

4.11

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.8

10.9

Form of Warrant, dated December 31, 2021, issued to WhiteHawk Finance LLC (incorporated by reference to
Exhibit 4.1 to the Current Report on Form 8- K filed January 5, 2022).

Description of Securities.*

Form of Pre-Funded Warrant, dated July 22, 2022, issued to an accredited institutional investor (incorporated by 
reference to Exhibit 4.1 to the Current Report on Form 8- K filed  July 26, 2022).

Form of Warrant, dated July 22, 2022, issued to an accredited institutional investor (incorporated by reference to
Exhibit 4.2 to the Current Report on Form 8- K filed July 26, 2022).

Trademark Assignment dated May 27, 2016, between Herbert Myers, Boxlight Corporation and Boxlight Inc.
(incorporated by reference to Exhibit 10.6 in the Registration Statement on Form S-1 (Reg. No. 33-204811 filed on
May 13, 2016).

Share Purchase Agreement, dated as of May 10,2016 by and among Boxlight Holdings, Inc., Boxlight Corporation,
Boxlight, Inc., Boxlight Latinoamerica, S.A. DE C.V. Boxlight Latinoamerica, Servicios S.A. DE C.V. Everest
Display Inc. and Guang Feng International Ltd. (incorporated by reference to Exhibit 10.1 in the Registration
Statement on Form S-1 (Reg. No. 333-204811) filed on May 13, 2016.

$2,000,000 Convertible Promissory Note of Boxlight Corporation to Mim Holdings, dated as of April 1, 2016
(Incorporated by reference to Exhibit 10.14 in the Registration Statement on Form S-1 (Reg. No. 333-204811) filed
on May 13, 2016).

Amendment No. 2 to Membership Interest Purchase Agreement, effective June 30, 2016 among Skyview Capital,
LLC, Mimio LLC, MIM Holdings, LLC and Boxlight Corporation (incorporated by reference to Exhibit 10.30 in the
Registration Statement on Form S-1 (Reg. No. 333-204811) filed on December 15, 2016).

Amendment No. 3 to Membership Interest Purchase Agreement, effective August 3, 2016 among Skyview Capital,
LLC, Mimio LLC, MIM Holdings, LLC and Boxlight Corporation (incorporated by reference to Exhibit 10.34 in the
Registration Statement on Form S-1 (Reg. No. 333-204811) filed on August 12, 2016).

Promissory Note, issued June 3, 2016 between Boxlight, Inc. and AHA Inc. Co Ltd. (Incorporated by reference to
Exhibit 10.32 in the Registration Statement on Form S-1 (Reg. No. 333-204811) filed on July 11, 2016).

Form of Loan and Security Agreement with Hitachi Capital America Corp (incorporated by reference to Exhibit
10.33 in the Registration Statement on Form S-1 (Reg. No. 333-204811) filed on August 12, 2016).

Loan and Security Agreement, dated September 28, 2016, between Boxlight Inc., Crestmark Bank and Mimio LLC
(incorporated by reference to Exhibit 10.35 in the Registration Statement on Form S-1 (Reg. No. 333-204811) filed
on January 12, 2017).

Amendment 1 to Share Purchase Agreement and Option Agreement, dated May 10, 2016 by and Among Everest
Display, Inc., GuangFeng International, Ltd., Boxlight Holdings, Boxlight Corporation, Boxlight Inc., Boxlight
Latinoamerica S.A. and Boxlight Latinoamerica Servicios, S.A. DE C.V. (incorporated by reference to Exhibit 10.36
in the Registration Statement on Form S-1 (Reg. No. 333-204811) filed on October 28, 2016).

10.10

Subscription Agreement between K Laser International Co., Ltd. And Boxlight Corporation for $1,000,000 equity
investment at $5.60 per share (incorporated by reference to Exhibit 10.37 in the Registration Statement on Form S-1
(Reg. No. 333-204811) filed on October 28, 2016).

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10.11

10.12

10.13

10.14

10.15

10.16

10.17

10.18

10.19

10.20

10.21

10.22

10.23

10.24

$2,000,000 Convertible Promissory Note, dated September 29,2016 between Boxlight Corporation and Everest
Display, Inc. (incorporated by reference to Exhibit 10.38 in the Registration Statement on Form S-1 (Reg. No. 333-
204811) filed on October 28, 2016).

Notice of Default dated December 28, 2015 – Skyview Capital (incorporated by reference to Exhibit 10.39 in the
Registration Statement on Form S-1 (Reg. No. 333-204811) filed on January 12, 2017).

Account Sale and Purchase Agreement, dated September 5, 2017 between Sallyport Commercial Finance LLC and
Boxlight Corporation (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on
September 11, 2017).

Stock Purchase Agreement and Exhibits, date May 9, 2018 among Boxlight Corporation, Cohuborate Ltd. and the
shareholders of Cohuborate, Ltd. (incorporated by reference to Exhibit 10.20 to the Registration Statement on Form
S-1 (Reg. No. 333-226068) filed on July 5, 2018).

$500,000 Promissory Note, dated May 16, 2018, from Boxlight Corporation to Harbor Gates Capital, LLC
(incorporated by reference to Exhibit 10.21 to the Registration Statement on Form S-1 (Reg. No. 333-226068) filed
on July 5, 2018).

Membership Interest Purchase agreement, dated as of September 17, 2018, by and among the Boxlight Corporation,
Daniel Leis, Aleksandra Leis and EOSEDU, LLC (incorporated by reference to Exhibit 10.24 in Amendment No. 1
to the Registration Statement on Form S-1 (Reg. No. 333-226068) filed on September 24, 2018).

Employment agreement, dated September 1, 2018, by and between Boxlight Corporation and Aleksandra Leis
(incorporated by reference to Exhibit 10.25 to Amendment No. 1 to the Registration Statement on Form S-1(Reg.
No. 333-226068) filed on September 24, 2018).

Employment agreement, dated September 1, 2018, by and between Boxlight Corporation and Daniel Leis
(incorporated by reference to Exhibit 10.26 to Amendment No. 1 to the Registration Statement on Form S-1(Reg.
No. 333-226068) filed on September 24, 2018.

Asset Purchase Agreement, dated March 12, 2019, between Boxlight Corporation, Boxlight Inc., Modern Robotics
and Stephen Fuller (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on March 15,
2019).

Securities Purchase Agreement dated March 22, 2019 between Boxlight Corporation and Lind Global Macro Fund
L.P. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed March 25, 2019).

Form of $4,400,000 Secured Convertible Promissory Note dated March 22, 2019 (incorporated by reference to
Exhibit 10.2 to the Current Report on Form 8-K filed March 25, 2019).

Security Agreement, dated March 22, 2019, between Boxlight Corporation and Lind Global Macro Fund LP
(incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed March 25, 2019).

Intercreditor Agreement, dated March 22, 2019, between Boxlight Corporation, and Sallyport Commercial Finance
LLC and Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-
K filed March 25, 2019).

Securities Purchase Agreement, dated as of December 13, 2019, between Boxlight Corporation and Lind Global
Macro Fund, L.P. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed December 17,
2019).

10.25

Secured Convertible Note, Dated December 13, 2019, issued by Boxlight Corporation to Lind Global Macro Fund,
L.P. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed December 17, 2019).

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Table of Contents

10.26

10.27

10.28

10.29

10.30

10.31

10.32

10.33

10.34

10.35

10.36

10.37

10.38

10.39

10.40

Amended and Restated Security Agreement dated as of December 13, 2019, between Boxlight Corporation,
Sallyport Commercial Finance, LLC. And Lind Global Macro Fund, LP (filed as Exhibit 10.3 to the Current Report
on Form 8-K filed December 17, 2019).

Amended and Restated Intercreditor Agreement, dated as of December 13, 2019, between Boxlight Corporation,
Sallyport Commercial Finance, LLC and Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.4 to
the Current Report on Form 8-K filed December 17, 2019).

Amended and Restated Employment Agreement, dated January 13, 2020, between Boxlight Corporation and James
Mark Elliott (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed January 14, 2020).

Employment letter, dated January 13, 2020, between Boxlight Corporation and Harold Bevis (incorporated by
reference to Exhibit 10.2 to the Current Report on Form 8-K filed January 14, 2020).

Asset Purchase Agreement dated February 3, 2020, between Boxlight Corporation, Boxlight Inc., MyStemKit, Inc.
and STEM Education Holdings, Pty. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K
filed February 7, 2020).

Securities Purchase Agreement dated February 4, 2020 between Boxlight  Corporation and Lind Global Macro 
Fund, LP. (Incorporated by reference to Exhibit 10.2 to the Current Report 8-Kfiled February 7, 2020).

Secured Convertible Note, dated February 4, 2020, (incorporated by reference to Exhibit 10.3 to the Current Report
on Form 8-K filed February 7, 2020).

Second Amended and Restated Security Agreement, dated February 4, 2020, between Boxlight Corporation and
Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed
February 7, 2020).

Second Amended and Restated Intercreditor Agreement, dated February 4, 2020, between Boxlight Corporation,
Sallyport Commercial Finance, LLC and Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.5 to
the Current Report on Form 8-K filed February 7, 2020).

Third Restated Convertible Promissory Note, dated February 4, 2020, issued by Boxlight Corporation to Lind
Global Macro Fund, LP (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed
February 7, 2020).

Second Restated Convertible Promissory Note, dated February 4, 2020, issued by Boxlight Corporation issued by
Boxlight Corporation to Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.7 to the Current
Report on Form 8-K filed February 7, 2020).

Employment Agreement, dated February 21, 2020, between Boxlight Corporation and Takesha Brown (incorporated
by reference to Exhibit 10.1 to the Current Report on Form 8-K filed February 26, 2020).

Agreement, dated March 3, 2020, between Boxlight Corporation, Everest Display, Inc and AMAGIC Holographics,
Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed March 13, 2020).

Employment Agreement, dated March 20, 2020, between Boxlight Corporation and Michael Pope (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K filed March 23, 2020).

Amended and Restated Employment Agreement, dated April 1, 2020, between Boxlight Corporation and Daniel
Leis (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed April 10, 2020).

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Table of Contents

10.41

10.42

10.43

10.44

10.45

10.46

10.47

10.48

10.49

10.50

10.51

10.52

10.53

10.54

10.55

Letter Agreement, dated April 17, 2020, between Boxlight Corporation, Boxlight Inc. and MyStemKits, Inc.
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed April 22, 2020).

Letter Agreement, dated April 17, 2020, between Boxlight Corporation and Stemify Limited (incorporated by
reference to Exhibit 10.2 to the Current Report on Form 8-K filed April 22, 2020).

Agreement, dated June 11, 2020, between Boxlight Corporation, Everest Display, Inc. and Amagic Holographics,
Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed June 24, 2020).

Letter Agreement, dated June 30, 2020, between Boxlight Corporation and R. Wayne Jackson (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K filed July 7, 2020).

Letter Agreement, dated June 30, 2020, between Boxlight Corporation and Charles P. Amos (incorporated by
reference to Exhibit 10.2 to the Current Report on Form 8-K filed on July 7, 2020).

Securities Purchase Agreement, dated September 21, 2020, between Boxlight Corporation and Lind Global Asset
Management LLC (incorporated by reference to Exhibit 10.1 to the Current Report on For 8-K filed September 22,
2020).

Form of Convertible Secured Note issued to Lind Global Asset Management (incorporated by reference to Exhibit
10.2 to the Current Report on Form 8-K filed September 22, 2020).

Third Amended and Restated Security Agreement, dated September 21, 2020, between Boxlight Corporation and
Lind Global Macro Fund, LP (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed
September 22, 2020).

Third Amended and Restated Intercreditor Agreement, dated September 21, 2020, between Boxlight Corporation,
Sallyport Commercial Finance, LLC, Lind Global Macro Fund, LP and Lind Global Asset Management, LLC
(incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed September 22, 2020).

Patent Purchase Agreement, dated September 23, 2020, between Boxlight Corporation and Circle Technology
Corporation (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed September 24,
2020).

Securities Purchase Agreement, dated September 24, 2020, between Boxlight Corporation and the Sellers of Sahara
Holdings Limited (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed September 25,
2020).

Form of Lock-up Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed
September 25, 2020).

Form of Accounts Receivable Agreement, effective September 30, 2020, between Boxlight Inc,, EOSEDU LLC and
Sallyport Commercial Finance LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K
filed October 9, 2020).

Form of Blocked Account Agreement between Boxlight Inc., EOSEDU LLC and Sallyport Commercial Finance
LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed October 9, 2020).

Employment Agreement, dated November 1, 2019, between Sahara Presentation Systems PLC and Mark Starkey
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed November 19, 2020).

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Table of Contents

10.56

10.57

10.58

10.59

10.60

10.61

10.62

10.63

10.64

10.65

10.66

10.67

10.68

10.69

10.70

10.71

Amendment No. 2 to the Boxlight Corporation 2014 Equity Incentive Plan (incorporated by reference to Exhibit
10.1 to the Registration Statement on Form S-8 dated October 7, 2020).

Deed of Variation, dated September 24, 2020, between Sahara Presentation Systems PLC and Mark Starkey
(incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed November 19, 2020).

Employment Agreement, dated April 7, 2020, between Sahara Presentation Systems PLC and Patrick Foley
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed November 30, 2020).

Deed of variation, dated September 24, 2020, between Sahara Presentation Systems PLC and Patrick Foley
(incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed November 30, 2020).

Employment Agreement, dated January 1, 2019, between Sahara Presentation Systems PLC and Shaun Marklew
(incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed November 30, 2020).

Deed of variation, dated September 24, 2020, between Sahara Presentation Systems PLC and Shaun Marklew
(incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed November 30, 2020).

Agreement, dated January 29, 2021, between Boxlight Corporation, Everest Display, Inc. and Amagic Holographics,
Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed February 1, 2021).

Preferred Stock Redemption and Conversion Agreement dated March 24, 2021, by and between Boxlight
Corporation and the Preferred Stockholders (incorporated by reference to Exhibit 10.67 to the Annual Report on
Form 10-K filed March 31, 2021).

Share Purchase Agreement, dated March 19, 2021, between Sahara Holdings Ltd., Clevertouch BV and Karel
Callens (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q filed on May 13, 2021).

Amendment to Preferred Stock Redemption Agreement, dated June 14, 2021, between Boxlight Corporation and the
Preferred Stockholders (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on June
16, 2021).

Amendment to Accounts Receivable Agreement, dated July 20, 2021, between Boxlight Inc. and Sallyport
Commercial Finance LLC (incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K filed on
July 21, 2021).

Amendment to Accounts Receivable Agreement, dated August 6, 2021, between Boxlight Inc. and Sallyport
Commercial Finance LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on
August 9, 2021).

Boxlight Corporation 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registration
Statement on Form S-8 filed on October 14, 2021).

Fourth Amended and Restated Intercreditor Agreement dated August 23, 2021, between Boxlight Corporation,
Sallyport Commercial Finance, LLC, Lind Global Macro Fund, LP and Lind Global Asset Management, LLC
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 27, 2021).

Employment Agreement dated September 15, 2021 between Boxlight Corporation and Aleksandra Leis
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on September 20, 2021).

Membership Interest Purchase Agreement dated October 29, 2021, between Boxlight Corporation, Boxlight Inc.,
FrontRow Calypso LLC, Phonic Ear Inc. and Calypso Systems LLC (incorporated by reference to Exhibit 10.1 to
the Current Report on Form 8-K filed November 1, 2021).

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Table of Contents

10.72

10.73

10.74

10.75

10.76

10.77

10.78

10.79

10.80

Credit Agreement dated December 31, 2021, between Boxlight Corporation, its subsidiaries, Whiteawk Finance
LLC., and White Hawk Capital Partners, LP (incorporated by reference to Exhibit 10.1 to the Current Report on
Form 8-K filed January 5, 2022).

Employment Agreement dated February 14, 2022, between Boxlight Corporation and Michael Pope (incorporated
by reference to Exhibit 10.1 to the Current Report on Form 8-K filed February 18, 2022).

Notice of Default and Reservation of Rights dated March 29, 2022, from Whitehawk Capital Partners, LP
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed April 4, 2022).

Amendment to Credit Agreement, dated April 4, 2022, between Boxlight Corporation, its subsidiaries, Whitehawk
Finance LLC and White Hawk Capital Partners, LP (incorporated by reference to Exhibit 10.2 to the Current Report
on Form 8-K filed April 4, 2022).

Amended and Restated Fee Letter, dated April 4, 2022, between Boxlight Corporation, its subsidiaries, Whitehawk
Capital Partners, LP and Whitehawk Finance, LLC (incorporated by reference to Exhibit 10.3 to the Current Report
on Form 8-K filed April 4, 2022).

Employment Agreement, dated June 13, 2022, between Boxlight Corporation and Greg Wiggins (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K filed June 14, 2022).

Second Amendment to Credit Agreement (including Exhibit A), dated June 21, 2022, between Boxlight
Corporation, its subsidiaries, Whitehawk Capital Partners, LP and Whitehawk Finance LLC (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K filed June 27, 2022).

Securities Purchase Agreement dated July 22, 2022, between Boxlight Corporation and an accredited institutional
investor (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed July 26, 2022).

Placement Agency Agreement, dated July 22, 2022, between Boxlight Corporation and Maxim Group LLC 
(incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed  July 26, 2022).

10.81

Amended and Restated Insider Trading Policy*

14.1

16.1

21.1

23.1

31.1

31.2

32.1

Code of Business Conduct and Ethics*

Letter of FORVIS, LLP, dated June 2, 2022 to the Securities and Exchange Commission (incorporated by reference
to Exhibit 16.1 to the Current Report on Form 8-K filed June 2, 2022.)

Subsidiaries*

Consent of FORVIS LLP*

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002*

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Table of Contents

32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002*

101.INS

Inline XBRL Instance Document.*

101.SCH Inline XBRL Taxonomy Extension Schema Document.*

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

101.DEF Inline XBRL Taxonomy Definition Linkbase Document.*

101.LAB Inline XBRL Taxonomy Label Linkbase Document.*

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).*

*filed herewith.

ITEM 16. FORM 10-K SUMMARY

None.

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Table of Contents

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly

caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

BOXLIGHT, CORPORATION
(Registrant)

By:/s/ MICHAEL POPE
  Michael R. Pope
  Chairman of the Board and
  Chief Executive Officer

Principal Executive Officer

Date: March 16, 2023

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act  of  1934,  this  report  has  been  signed  below  by  the

following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature

    Title

/s/ Michael R. Pope
Michael R. Pope

Chairman of the Board, and
Chief Executive Officer
(principal executive officer)

/s/ Gregory S. Wiggins
Gregory S. Wiggins

Chief Financial Officer
(principal financial and accounting officer)

/s/ Rudolph F. Crew
Rudolph F. Crew

/s/ Roger W. Jackson
Roger W. Jackson

/s/ Tiffany Kuo
Tiffany Kuo

/s/ Charles P. Amos
Charles P. Amos

/s/ Dale W. Strang
Dale W. Strang

/s/ Mark Elliott
Mark Elliott

Director

Director

Director

Director

Director

Director

    Date

March 16, 2023

March 16, 2023

March 16, 2023

March 16, 2023

March 16, 2023

March 16, 2023

March 16, 2023

March 16, 2023

60

 
 
 
 
 
 
 
 
 
 
 
DESCRIPTION OF SECURITES
Description of Capital Stock

Exhibit 4.9 

The following is a summary of the material terms of our Class A common stock, which is registered
under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and provisions of
our Eleventh Amended and Restated Articles of Incorporation (the “Charter”) and bylaws (the “Bylaws”). This
description is summarized from, and qualified in its entirety by reference to, the Charter and Bylaws, each of
which is filed as an exhibit to this Annual Report on Form 10-K. We encourage you to read our Charter, our
Bylaws, and the applicable provisions of the Nevada Revised Statutes.

Authorized Capital Stock

Our  authorized  capital  stock  consists  of  250,000,000  shares,  of  which  150,000,000  are  designated
Class A common stock, par value $0.0001 per share; 50,000,000 are designated Class B common stock, par
value  $0.0001  per  share;  and  50,000,000  are  designated  preferred  stock,  of  which  250,000  shares  are
designated as Series A preferred stock, par value $0.0001 per share.

Common Stock

Class A common stock

Our Class A common stock is listed on The Nasdaq Capital Market under the ticker symbol “BOXL.”

Voting Rights. Each share of our Class A common stock entitles its holder to one vote per share on all
matters to be voted or consented upon by the stockholders. Cumulative voting for the election of directors is
not provided for in our articles of incorporation, as amended and restated.

Dividend  Rights.  Subject  to  the  rights  of  the  holders  of  preferred  stock,  as  discussed  below,  the
holders of outstanding Class A common stock are entitled to receive dividends out of funds legally available at
the times and in the amounts that the board of directors may determine.

Liquidation Rights. In the event of our liquidation or dissolution, the holders of our Class A common
stock are entitled to share ratably in the assets available for distribution after the payment of all of our debts
and other liabilities, subject to the prior rights of the holders of our preferred stock.

Other  Matters.  The  holders  of  our  Class  A  common  stock  have  no  subscription,  redemption  or
conversion privileges. Our Class A common stock does not entitle its holders to preemptive rights. All of the
outstanding shares of our Class A common stock are fully paid and non-assessable. The rights, preferences and
privileges of the holders of our Class A common stock are subject to the rights of the holders of shares of any
series of preferred stock which we may issue in the future.

Class B common stock

Our Charter authorizes Class B common stock, although at present we have no Class B common stock
issued  and  outstanding.  Our  Class  B  common  stock  is  only  available  for  issuance  upon  exercise  of  stock
options to be granted to Boxlight Group employees.

Voting Rights. The holders of Class B common stock have no voting rights, other than voting only on

such matters as required by law.

Conversion Rights. Upon any public or private sale or disposition by any holder of Class B common
stock, such shares of Class B common stock shall automatically convert into shares of Class A common stock.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock

Our board of directors has the authority to issue preferred stock in one or more classes or series and to
fix the designations, powers, preferences, and rights, and the qualifications, limitations or restrictions thereof
including  dividend  rights,  dividend  rates,  conversion  rights,  voting  rights,  terms  of  redemption,  redemption
prices, liquidation preferences and the number of shares constituting any class or series, without further vote or
action by the stockholders.

 Governing Documents that May Have an Antitakeover Effect

Certain provisions of our Eleventh Amended and Restated Articles of Incorporation and our Bylaws,
which are discussed below, could discourage or make it more difficult to accomplish a proxy contest, change in
our management or the acquisition of control by a holder of a substantial amount of our voting stock.

-

-

-

Our Eleventh Amended and Restated Articles of Incorporation provide that our board of directors
has  the  authority  to  issue  preferred  stock  in  one  or  more  classes  or  series  and  fix  such
designations, powers, preferences and rights and the qualifications thereof without further vote by
our  stockholders.  The  issuance  of  preferred  stock  may  have  the  effect  of  delaying,  deferring  or
preventing  a  change  in  control  of  our  company  without  further  action  by  the  stockholders  and
may adversely affect the voting and other rights of the holders of our Class A common stock.

Our Bylaws limit the ability to call special meetings of the stockholders to the chairman of the
board of directors, the vice chairman of the board, the chief executive officer, the president or a
majority  of  authorized  directors.  The  stockholders  have  no  right  to  request  or  call  a  special
meeting and cannot take action by written consent.

Our Bylaws provide that the removal of a director from the board, with or without cause, must be
by affirmative vote of not less than 2/3 of the voting power of our issued and outstanding stock
entitled  to  vote  generally  in  the  election  of  directors  (voting  as  a  single  class),  excluding  stock
entitled to vote only upon the happening of a fact or event unless such fact or event shall have
occurred, is required to remove a director from the Board with or without cause.

We expect that these provisions will discourage coercive takeover practices or inadequate takeover

bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate
with our board of directors, which we believe may result in an improvement of the terms of any such
acquisition in favor of our stockholders. However, they also give our board of directors the power to
discourage acquisitions that some stockholders may favor.

TRANSFER AGENT AND REGISTRAR

The  Transfer  Agent  and  Registrar  for  shares  of  our  common  stock  and  preferred  stock  is  VStock
Transfer,  LLC,  Woodmere,  New  York.  Our  Transfer  Agent  and  Registrar’s  telephone  number  is  (212)  828-
8436.

 
 
 
 
 
 
Exhibit 10.81

BOXLIGHT CORPORATION

Amended and Restated
Policy on Insider Trading

This Amended and Restated Insider Trading Policy, effective as of March 10, 2023, provides the

standards of Boxlight Corporation (the “Company”) on trading and causing the trading of the
Company’s securities or securities of other publicly-traded companies while in possession of
confidential information. This policy is divided into two parts: the first part prohibits trading in certain
circumstances and applies to all directors, officers, employees and certain independent contractors of the
Company and the second part imposes special additional trading restrictions and applies to all (i)
directors of the Company, (ii) executive officers of the Company and (iii) the employees or persons
listed on Appendix A (collectively, “Covered Persons”).

One of the principal purposes of the federal securities laws is to prohibit so-called “insider
trading.” Simply stated, insider trading occurs when a person uses material non-public information
obtained through involvement with the Company to make decisions to purchase, sell, give away or
otherwise trade the Company’s securities or to provide that information to others outside the Company.
The prohibitions against insider trading apply to trades, tips and recommendations by virtually any
person, including all persons associated with the Company, if the information involved is “material” and
“non-public.” These terms are defined in this Policy under Part I, Section 3 below. The prohibitions
would apply to any director, officer or employee who buys or sells Company stock on the basis of
material non-public information that he or she obtained about the Company, its customers, suppliers, or
other companies with which the Company has contractual relationships or may be negotiating
transactions.

1. Applicability

PART I

This Policy applies to all transactions in the Company’s securities, including common stock,

options and any other securities that the Company may issue, such as preferred stock, notes, bonds and
convertible securities, as well as to derivative securities relating to any of the Company’s securities,
whether or not issued by the Company.

This Policy applies to all employees of the Company and its subsidiaries, all officers of the

Company and its subsidiaries and all members of the Company’s board of directors.

2. General Policy: No Trading or Causing Trading While in Possession of Material Non-Public
Information

(a). No director, officer or employee may purchase or sell any Company security, whether or not

issued by the Company, while in possession of material non-public information about the Company.
(The terms “material” and “non-public” are defined in Part I, Section 3(a) and (b) below.)

(b). No director, officer or employee who knows of any material non-public information about

the Company may communicate that information to any other person, including family and friends.

(c).  In addition, no director, officer or employee may purchase or sell any security of any other 

company, whether or not issued by the Company, while in possession of material non-public information 
about that company that was obtained in the course of his or her involvement with the Company. No 
director, officer or employee who knows of any such material non-public information may communicate 
that information to any other person, including family and friends.

(d). For compliance purposes, you should never trade, tip or recommend securities (or otherwise

cause the purchase or sale of securities) while in possession of information that you have reason to
believe is material and non-public unless you first consult with, and obtain the advance approval of, the
Compliance Officer (which is defined in Part I, Section 3(c) below).

(e). Covered Persons must “pre-clear” all trading in securities of the Company in accordance

with the procedures set forth in Part II, Section 3 below.

3. Definitions

(a) Materiality. Insider trading restrictions come into play only if the information you possess is

“material.” Materiality, however, involves a relatively low threshold. Information is generally regarded
as “material” if it has market significance, that is, if its public dissemination is likely to affect the market
price of securities, or if it otherwise is information that a reasonable investor would want to know before
making an investment decision.

Information dealing with the following subjects is reasonably likely to be found material in

particular situations:

(i) significant changes in the Company’s prospects;

(ii) significant write-downs in assets or increases in reserves;

(iii) developments regarding significant litigation or government agency investigations;

(iv) liquidity problems;

(v) changes in earnings estimates or unusual gains or losses in major operations;

(vi) major changes in management;

(vii) changes in dividends;

(viii) extraordinary borrowings;

(ix) award or loss of a significant contract;

(x) changes in debt ratings;

(xi) proposals, plans or agreements, even if preliminary in nature, involving mergers,
acquisitions, divestitures, recapitalizations, strategic alliances, licensing arrangements, or purchases or
sales of substantial assets;

(xii) public offerings; and

(xiii) pending statistical reports (such as, consumer price index, money supply and retail figures,

or interest rate developments).

Material information is not limited to historical facts but may also include projections and

forecasts. With respect to a future event, such as a merger, acquisition or introduction of a new product,
the point at which negotiations or product development are determined to be material is determined by
balancing the probability that the event will occur against the magnitude of the effect the event would
have on a company’s operations or stock price should it occur. Thus, information concerning an event
that would have a large effect on stock price, such as a merger, may be material even if the possibility
that the event will occur is relatively small. When in doubt about whether particular non-public
information is material, presume it is material. If you are unsure whether information is material, you
should consult the Compliance Officer before making any decision to disclose such information
(other than to persons who need to know it) or to trade in or recommend securities to which that
information relates.

(b) Non-public Information. Insider trading prohibitions come into play only when you possess

information that is material and “non-public.” The fact that information has been disclosed to a few
members of the public does not make it public for insider trading purposes. To be “public” the
information must have been disseminated in a manner designed to reach investors generally, and the
investors must be given the opportunity to absorb the information. Even after public disclosure of
information about the Company, you must wait until the close of business on the second trading day after
the information was publicly disclosed before you can treat the information as public.

Non-public information may include:

(i) information available to a select group of analysts or brokers or institutional investors;

(ii) undisclosed facts that are the subject of rumors, even if the rumors are widely circulated; and

(iii) information that has been entrusted to the Company on a confidential basis until a public

announcement of the information has been made and enough time has elapsed for the market to respond
to a public announcement of the information (normally two or three days).

As with questions of materiality, if you are not sure whether information is considered

public, you should either consult with the Compliance Officer or assume that the information is
“non-public” and treat it as confidential.

(c) Compliance Officer. The Company has appointed the Corporate Secretary as the
Compliance Officer for this Policy. The duties of the Compliance Officer include, but are not limited to,
the following:

(i) assisting with implementation of this Policy;

(ii) circulating this Policy to all employees and ensuring that this Policy is amended as necessary

to remain up-to-date with insider trading laws;

(iii) pre-clearing all trading in securities of the Company by Covered Persons in accordance with

the procedures set forth in Part II, Section 3 below; and

(iv) providing approval of any transactions under Part II, Section 4 below.

4. Violations of Insider Trading Laws

Penalties for trading on or communicating material non-public information can be severe, both

for individuals involved in such unlawful conduct and their employers and supervisors, and may include
jail terms, criminal fines, civil penalties and civil enforcement injunctions. Given the severity of the
potential penalties, compliance with this Policy is absolutely mandatory.

(a) Legal Penalties. A person who violates insider trading laws by engaging in transactions in a

company’s securities when he or she has material non-public information can be sentenced to a
substantial jail term and required to pay a penalty of several times the amount of profits gained or losses
avoided.

In addition, a person who tips others may also be liable for transactions by the tippees to whom

he or she has disclosed material non-public information. Tippers can be subject to the same penalties and
sanctions as the tippees, and the SEC has imposed large penalties even when the tipper did not profit
from the transaction.

The SEC can also seek substantial penalties from any person who, at the time of an insider

trading violation, “directly or indirectly controlled the person who committed such violation,” which
would apply to the Company and/or management and supervisory personnel. These control persons may
be held liable for up to the greater of $1 million or three times the amount of the profits gained or losses

avoided. Even for violations that result in a small or no profit, the SEC can seek a minimum of $1
million from a company and/or management and supervisory personnel as control persons.

(b) Company-imposed Penalties. Employees who violate this Policy may be subject to

disciplinary action by the Company, including dismissal for cause. Any exceptions to the Policy, if
permitted, may only be granted by the Compliance Officer and must be provided before any activity
contrary to the above requirements takes place.

1. Blackout Periods

PART II

All Covered Persons are prohibited from trading in the Company’s securities during blackout

periods.

(a) Quarterly Blackout Periods. Trading in the Company’s securities is prohibited during the
period beginning three weeks prior to the last day of each fiscal quarter and ending three business days
following the date the Company’s financial results are publicly disclosed and the Form 10-Q or the Form
10-K is filed. During these periods, Covered Persons generally possess or are presumed to possess
material non-public information about the Company’s financial results.

(b) Other Blackout Periods. From time to time, other types of material non-public information

regarding the Company (such as negotiation of mergers, acquisitions or dispositions or new product
developments) may be pending and not be publicly disclosed. While such material non-public
information is pending, the Company may impose special blackout periods during which Covered
Persons are prohibited from trading in the Company’s securities. If the Company imposes a special
blackout period, it will notify the Covered Persons affected.

(c) Exception. These trading restrictions do not apply to transactions under a pre-existing

written plan, contract, instruction, or arrangement under Rule 10b5-1 (an “Approved 10b5-1 Plan”)
that:

(i) (x) in the case of directors and executive officers, the Approved 10b5-1 Plan has been
reviewed and approved the later of (A) at least 90 days in advance of any trades thereunder by the
Compliance Officer (or, if revised or amended, such revisions or amendments have been reviewed and
approved by the Compliance Officer at least 90 days in advance of any subsequent trades) or (B) at least
two business days after the filing of the Company’s Form 10-Q or Form 10-K (subject to a maximum of
120 after the date of adoption or modification); and (y) directors or executive officers must certify at the
time of such plan’s adopbtion that they (A) were not in possession of Material Non-Public Information at
the time of adoption of such plan and (B) are adopting such plan in good faith and not as part of a plan or
scheme to evade insider trading prohibitions of Rule 10b-5;

(ii) in the case of non-officers and directors, the Approved 10b5-1 Plan has been reviewed and

approved at least one month in advance of any trades thereunder by the Compliance Officer (or, if
revised

or amended, such revisions or amendments have been reviewed and approved by the Compliance Officer
at least one month in advance of any subsequent trades);

(ii) was entered into in good faith by the Covered Person at a time when the Covered Person was

not in possession of material non-public information about the Company, and the Covered Person
continues to operate in good faith in its use of the Approved 10b5-1 Plan for the duration of such plan;
and

(iii) gives a third party the discretionary authority to execute such purchases and sales, outside
the control of the Covered Person, so long as such third party does not possess any material non-public
information about the Company; or explicitly specifies the security or securities to be purchased or sold,
the number of shares, the prices and/or dates of transactions, or other formula(s) describing such
transactions.

2. Trading Window

Covered Persons are permitted to trade in the Company’s securities when no blackout period is
in effect. Generally this means that Covered Persons can trade during the period beginning on the fourth
business day following the filing of the Form 10-Q or the Form 10-K and ending on the day prior to
three weeks before the end of a fiscal quarter close. However, even during this trading window, a
Covered Person who is in possession of any material non-public information should not trade in the
Company’s securities until the information has been made publicly available or is no longer material. In
addition, the Company may close this trading window if a special blackout period under Part II, Section
1(b) above is imposed and will re-open the trading window once the special blackout period has ended.

3. Pre-clearance of Securities Transactions

(a). Because Covered Persons are likely to obtain material non-public information on a regular

basis, the Company requires all such persons to refrain from trading, even during a trading window
under Part II, Section 2 above, without first providing notice of any transactions in the Company’s
securities.

(b). Subject to the exemption in subsection (d) below, no Covered Person may, directly or
indirectly, purchase or sell (or otherwise make any transfer, gift, pledge or loan of) any Company
security at any time without first notifying the Compliance Officer. These procedures also apply to
transactions by such person’s spouse, other persons living in such person’s household and minor children
and to transactions by entities over which such person exercises control.

(c). The Compliance Officer shall record the date each notification if provided. If the transaction

does not occur within a two-week period, pre-notification of the transaction must be re-provided.

(d). Pre-notification is not required for purchases and sales of securities under an Approved

10b5-1 Plan. With respect to any purchase or sale under an Approved 10b5-1 Plan, the third party
effecting

transactions on behalf of the Covered Person should be instructed to send duplicate confirmations of all
such transactions to the Compliance Officer.

4. Prohibited Transactions

(a). Directors and executive officers of the Company are prohibited from, trading in the
Company’s equity securities during a blackout period imposed under an “individual account” retirement
or pension plan of the Company, during which at least 50% of the plan participants are unable to
purchase, sell or otherwise acquire or transfer an interest in equity securities of the Company, due to a
temporary suspension of trading by the Company or the plan fiduciary.

(b). A Covered Person, including such person’s spouse, other persons living in such person’s

household and minor children and entities over which such person exercises control, is prohibited from
engaging in the following transactions in the Company’s securities unless advance approval is obtained
from the Compliance Officer:

(i) Short-term trading. Covered Persons who purchase Company securities may not sell any

Company securities of the same class for at least six months after the purchase;

(ii) Short sales. Covered Persons may not sell the Company’s securities short;

(iii) Options trading. Covered Persons may not buy or sell puts or calls or other derivative

securities on the Company’s securities;

(iv) Trading on margin. Covered Persons may not hold Company securities in a margin account

or pledge Company securities as collateral for a loan; and

(v) Hedging. Covered Persons may not enter into hedging or monetization transactions or

similar arrangements with respect to Company securities.

5. Acknowledgment and Certification

All Covered Persons are required to sign the attached acknowledgment and certification.

ACKNOWLEDGMENT AND CERTIFICATION

The undersigned does hereby acknowledge receipt of the Company’s Insider Trading Policy. The

undersigned has read and understands (or has had explained) such Policy and agrees to be governed by
such Policy at all times in connection with the purchase and sale of securities and the confidentiality of
non-public information.

Date: ________________________

(Signature)

(Please print name)

APPENDIX A

MARK ELLIOTT
GREG WIGGINS
HANK NANCE
MICHAEL POPE
MARK STARKEY
SHAUN MARKLEW
DR. RUDY CREW
DALE STRANG
TIFFANY KUO
CHARLES AMOS
WAYNE JACKSON

Exhibit 14.1

BOXLIGHT CORPORATION
CODE OF CONDUCT

OVERVIEW

This Code of Conduct (“Code”) has been adopted by the Board of Directors of Boxlight Corporation
pursuant to the rules of the Securities and Exchange Commission (“SEC”).  This Code is applicable to 
all employees, officers and directors of the Company and contains standards for:

● the honest and ethical conduct, including the ethical handling of actual or apparent conflicts of

interest between personal and professional relationships,

● the full, fair, accurate timely and understandable disclosure in reports and documents that the

Company files with, or submits to, the SEC and in other public communications,

● compliance with applicable governmental laws, rules and regulations,

● prompt internal reporting of violations of this Code, and

● accountability for adherence to this Code.

Compliance Officers. The Company has designated (a) the Company’s Chief Financial Officer as its
Compliance Officer to administer this Code with respect to employees, and (b) the Chairman of the
Audit Committee to administer this Code with respect to officers and directors. You may, at your
discretion, make any report or complaint provided for in this Code to the appropriate Compliance
Officer.

Other Company Policies. This Code is in addition to the Code of Ethics that applies to the Company’s
Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, President, Controller and
Accounting / Finance Personnel. Also, this Code is in addition to the Company’s other policies and
guidelines with respect to its employees, officers and directors as contained in the Company’s employee
handbook.

CODE OF CONDUCT

1. Conflicts Of Interest. While it is not possible to identify every activity that might give rise to a
conflict of interest, a conflict of interest may exist whenever a relationship of an employee, officer or
director, or one of his or her family members, is inconsistent with the Company’s best interests or could
cause a conflict with job responsibilities or the Company’s business. Conflicts of interest may not always
be clear‐cut, so if you have a question, you should consult with the Compliance Officer. If you become
aware of a conflict or potential conflict, you should bring it to the attention of the Compliance Officer.

2. Compliance With Applicable Laws. All employees, officers and directors of the Company should
comply with all governmental laws, rules and regulations applicable to the Company.

3. Public Company Reporting. As a public company, it is of critical importance that the Company’s
filings with the SEC, and other public communications, contain full, fair, accurate, timely and
understandable disclosure. Depending on their respective positions with the Company, employees,
officers or directors may be called upon to provide information necessary to assure that the Company’s
public reports are complete, fair and understandable. The Company expects employees, officers and
directors to take this responsibility seriously and to provide prompt and accurate answers to inquiries
from the Company’s officers, directors, auditors or attorneys related to the Company’s public disclosure
requirements. With respect to any inquiries from other third‐parties (such as analysts, members of the
media and others), such inquiries should be directed to specifically designated persons who are
authorized

to respond, and such designated persons shall keep the Company’s board of directors advised as to the
content and scope of each such inquiry and response.

4. Reporting Any Illegal Or Unethical Behavior. Employees are encouraged to talk to supervisors,
managers or other appropriate personnel about observed illegal or unethical behavior and, when in
doubt, about the best course of action in a particular situation. Anyone who believes that a violation of
this Code or other illegal or unethical conduct by any employee, officers or director has occurred or may
occur should promptly contact the Compliance Officer. Alternatively, any employee of the company may
submit, on a confidential and anonymous basis if the employee so desires, directly to the Audit
Committee any concerns regarding financial statement disclosures, accounting, internal accounting
controls, auditing matters or violations of this Code. To make a confidential and anonymous submission
directly to the Audit Committee, an employee should send a written summary of his or her concern in a
sealed envelope to the following address, Boxlight Corporation., Attention: Chairman of Audit
Committee, 1045 Progress Circle, Lawrenceville, Georgia 30043.

The mailing envelope must contain a clear notation indicating “To Be Opened Only by Audit
Committee.” The Compliance Officer will forward any such envelopes received promptly and unopened
to the Audit Committee Chair. If an employee, would like to discuss any matter with the Audit
Committee, the employee should indicate this in the written submission and include a telephone number
or other means by which he or she can be reached, should the Audit Committee determine that such
communication is appropriate. Any such reports may be made confidentially or anonymously.
Confidentiality will be protected, subject to applicable law, regulation or legal proceedings, as well as to
applicable Company policy.

5. Protection and Proper Use of Company Assets. All employees, officers and directors should
endeavor to protect the Company’s assets and ensure their efficient use. Company assets should be used
for legitimate business purposes, although incidental personal use may be permitted. Theft, carelessness,
and waste of the Company’s assets have a direct impact on the Company’s business and its profitability.
Any suspected incident of fraud, theft or misuse should be immediately reported for investigation.

The obligation of employees, officers and directors to protect the Company’s assets includes its
proprietary information. Proprietary information includes intellectual property such as trade secrets,
patents, trademarks, copyrights and know how, as well as business, sales and marketing plans,
formulation and manufacturing ideas and practices, designs, databases, records, salary and other
compensation/benefit information and any unpublished financial data and reports. Unauthorized use or
distribution of the Company’s proprietary information is prohibited. Unauthorized use or distribution of
the Company’s proprietary information could also be illegal and may result in the imposition of civil or
criminal penalties.

6. No Retaliation. The Company will not permit retaliation of any kind by or on behalf of the Company
and its employees, officers and directors against good faith reports or complaints of violations of this
Code or other illegal or unethical conduct.

7. Amendment, Modification And Waiver. Any request for a waiver of any provision of this Code
must be in writing and addressed to the Compliance Officer. If you are a director or executive officer of
the Company, the request may be addressed directly to the Chairman of the Audit Committee. With
regard to executive officers and directors, the Board will have the sole and absolute discretionary
authority, acting upon such recommendations as may be made by the Audit Committee, to approve any
waiver from this Code. Any waiver of this Code with respect to executive officers and directors will be
promptly publicly

disclosed to the shareholders by filing a Form 8‐K with the SEC, or by such other selected by the Board
of Directors in conformity with applicable SEC rules. This Code may be amended, modified or waived
by the Board of Directors, subject to disclosure requirements and other applicable SEC rules.

8. Accountability. You are responsible for your adherence to this Code and will be held personally
accountable. Your failure to observe the terms of this Code may result in disciplinary action, which may
include immediate termination.

ACKNOWLEDGEMENT

The undersigned is an employee / officer / director of Boxlight Corporation.  By my signature
below, I acknowledge receipt of a copy of the Code of Conduct and I confirm that I have carefully
read and fully understand all the provisions of the Code of Conduct.

Signature:
Print Name:

Dated: _________________, 2017

List of Subsidiaries

Exhibit 21.1

Boxlight Inc., a Washington corporation

Boxlight Latinoamerica, S.A. DE C.V., a Mexico corporation

Boxlight Latinoamerica Servicios, S.A. DE C.V., a Mexico corporation

Boxlight Group Ltd., a U.K. limited company

EOSEDU, LLC, a Nevada limited liability company

Sahara Holdings Limited, a U.K. limited company

Sahara Presentation Systems Ltd., a U.K. company

Sedao Limited, a U.K. company

Clevertouch B.V., a Holland company

Sahara Nordic OY, a Finland company

Sahara Nordic AB, a Sweden company

Sahara Presentation Systems, Inc., a Delaware company

Sahara Presentation Systems GmbH, a Germany company

Sahara Presentation Systems Europe BV, a Belgium company

FrontRow Calypso, LLC, a California company

Boxlight Canada, Inc., a Canada company

Boxlight Denmark, ApS, a Denmark company

Boxlight Australia, PTY LTD, an Australia company

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements on Form S-8 (Nos. 333-249375 and 333-
260253) and Form S-3 (Nos. 333-239939 and 333-264809) of Boxlight Corporation of our report dated March 16,
2023, with respect to the consolidated financial statements of Boxlight Corporation and its subsidiaries, included in
this annual report on Form 10-K.

Exhibit 23.1

/s/ FORVIS, LLP (Formerly, Dixon Hughes Goodman LLP)

Atlanta, Georgia
March 16, 2023

Exhibit 31.1

I, Michael Pope, certify that:

Certification

1.

I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2022 of Boxlight

Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state  a  material  fact  necessary  to  make  the  statements  made,  in  light  of  the  circumstances  under  which  such
statements were made, not misleading with respect to the period covered by this report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial  information  included  in  this
report,  fairly  present  in  all  material  respects  the  financial  condition,  results  of  operations  and  cash  flows  of  the
registrant as of, and for, the periods presented in this report;

4. The  registrant’s  other  certifying  officers  and  I  are  responsible  for  establishing  and  maintaining
disclosure  controls  and  procedures  (as  defined  in  Exchange  Act  Rules  13a-15(e)  and  15d-15(e))  and  internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:

a. Designed  such  disclosure  controls  and  procedures,  or  caused  such  disclosure  controls  and
procedures  to  be  designed  under  our  supervision,  to  ensure  that  material  information  relating  to  the  registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;

b. Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred  during  the  registrant’s  fourth  fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely  to
materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal  control  over  financial  reporting,  to  the  registrant’s  auditors  and  the  audit  committee  of  the  registrant’s
board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process,
summarize and report financial information; and

b. Any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a

significant role in the registrant’s internal control over financial reporting.

Date: March 16, 2023

/s/ Michael Pope
Michael Pope
Chief Executive Officer
(Principal Executive Officer)

 
 
 
Exhibit 31.2

I, Greg Wiggins, certify that:

CERTIFICATION

1.

I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2022 of Boxlight

Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state  a  material  fact  necessary  to  make  the  statements  made,  in  light  of  the  circumstances  under  which  such
statements were made, not misleading with respect to the period covered by this report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial  information  included  in  this
report,  fairly  present  in  all  material  respects  the  financial  condition,  results  of  operations  and  cash  flows  of  the
registrant as of, and for, the periods presented in this report;

4. The  registrant’s  other  certifying  officers  and  I  are  responsible  for  establishing  and  maintaining
disclosure  controls  and  procedures  (as  defined  in  Exchange  Act  Rules  13a-15(e)  and  15d-15(e))  and  internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:

a. Designed  such  disclosure  controls  and  procedures,  or  caused  such  disclosure  controls  and
procedures  to  be  designed  under  our  supervision,  to  ensure  that  material  information  relating  to  the  registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;

b. Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred  during  the  registrant’s  fourth  fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely  to
materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal  control  over  financial  reporting,  to  the  registrant’s  auditors  and  the  audit  committee  of  the  registrant’s
board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process,
summarize and report financial information; and

b. Any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a

significant role in the registrant’s internal control over financial reporting.

Date: March 16, 2023

/s/ Greg Wiggins
Greg Wiggins
Chief Financial Officer
(Principal Financial Officer)

 
 
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.1

In connection with the Annual Report of Boxlight Corporation (the “Company”) on Form 10-K pursuant for the
year  ended  December  31,  2022,  as  filed  with  the  Securities  and  Exchange  Commission  on  the  date  hereof  (the
“Report”), I, Michael Pope, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange

Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition

and results of operations of the Company.

Date: March 16, 2023

/s/ Michael Pope
Michael Pope
Chief Executive Officer
(Principal Executive Officer)

 
 
 
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.2

In connection with the Annual Report of Boxlight Corporation (the “Company”) on Form 10-K for the year ended
December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I,
Greg  Wiggins,  Chief  Financial  Officer  of  the  Company,  certify,  pursuant  to  18  U.S.C.  Section  1350,  as  adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange

Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition

and results of operations of the Company.

Date: March 16, 2023

/s/ Greg Wiggins
Greg Wiggins
Chief Financial Officer
(Principal Financial Officer)