UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2017~~2018

[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File 333-173028

~~AlphaPoint Technology~~LevelBlox, Inc. (Exact name of registrant as specified in its charter)


Delaware		26-3748249
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


6371 Business Blvd. Suite 200 Sarasota, FL		34240
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (941) 907-8822

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act:

Common Stock, par value of $0.01

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

[_] Yes [X] 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 [X] 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.

[X] Yes [_] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

[X] Yes [_] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

[_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or 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 [_]		Accelerated filer [_]
Non-accelerated filer [_]		Smaller reporting company [X]
(Do not check if 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 is a shell company (as defined in Rule 12b-2 of the Act).

[_] Yes [X] No

State 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 quarter, June 30, ~~2017~~2018: $7,741,325

Number of the issuer’s Common Stock outstanding as of March 3129, ~~2018~~2019: 77 97,~~413~~243,259.

Documents incorporated by reference: None.

~~ALPHA POINT TECHNOLOGIES~~LEVELBLOX, INC.

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, ~~2017~~2018

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	1
Item 1A	Risk Factors	23
Item 1B	Unresolved Staff Comments	7
Item 2.	Properties	7
Item 3.	Legal Proceedings	7
Item 4.	Mine Safety Disclosures	7
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Securities	7
Item 6.	Selected Financial Data	8
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	1211
Item 8.	Financial Statements and Supplementary Data	12
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	13
Item 9A.	Controls and Procedures	13
Item 9B.	Other Information	13
PART III
Item 10.	Directors, Executive Officers and Corporate Governance of the Registrant	14
Item 11.	Executive Compensation	1718
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	19
Item 13.	Certain Relationships and Related Transactions and Director Independence	20
Item 14.	Principal Accountant Fees and Services	20
PART IV
Item 15.	Exhibits and Financial Statement Schedules	21
Signatures		22
EX-31.1	Rule 13a-14(a) Certification of Principal Executive Officer
EX-32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in Item 7 of this report, and other materials accompanying this Annual Report on Form 10-K contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “may,” “will,” and similar expressions and the negatives thereof identify forward-looking statements, which generally are not historical in nature. These forward-looking statements include, but are not limited to, statements concerning the following: levels of revenue, changes in and expectations with respect to revenue, revenue growth and gross margins, anticipated growth and growth strategies, the impact of competition, our ability to sell products, future operating expense levels, future operating results, the impact of quarterly fluctuations of revenue and operating results, staffing and expense levels, expected cash and investment balances and the impact of foreign exchange rate fluctuations. As and when made, management believes that these forward-looking statements are reasonable. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made and may be based on assumptions that do not prove to be accurate. ~~AlphaPoint Technology~~LevelBlox, Inc., undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, occurring after the date of this Annual Report on Form 10-K. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company’s historical experience and our present expectations or projections. For a detailed discussion of these risks and uncertainties, see the “Business” and “Risk Factors” sections in Items 1 and 1A, respectively, of this Annual Report on Form 10-K.

PART I

ITEM 1. BUSINESS

Background Information

~~AlphaPoint Technology~~LevelBlox, Inc. (“~~AlphaPoint~~LevelBlox”) formerly known as AlphaPoint Technology, Inc., was incorporated in the State of Delaware on November 13, 2008. ~~On October 14~~LevelBlox, ~~2015,~~is ~~AlphaPoint~~a ~~executed~~developer aof ~~Share~~Software ~~Exchange~~Asset ~~Agreement~~Management (~~“SEA”~~SAM) applications for the ~~acquisition~~Blockchain. ofLevelBlox ~~all~~has ~~the~~developed ~~issued~~a ~~and~~patent-pending ~~outstanding~~software ~~shares~~application ofcalled ~~Strategy~~AssetCentral ~~to Revenue, Ltd.~~ (~~“STR Ltd.”~~AC),. aThrough ~~United~~AssetCentral ~~Kingdom~~use ~~(“UK”)~~cases ~~company~~we ~~based~~have inidentified ~~London (“~~the ~~STR~~growing ~~acquisition”).~~complexity ~~AlphaPoint’s~~and ~~legacy~~scope ~~business~~with ~~has~~the ~~been~~current ~~helping~~methodology ~~companies~~and ~~manage~~tracking ~~their~~of ITSoftware ~~assets~~Asset Management licenses.

~~Subsequently,~~LevelBlox ~~the~~has ~~parties~~been selected to ~~the~~join ~~SEA believe that~~ the ~~intended~~Oracle ~~benefits~~Scaleup ~~have not been realized~~Ecosystem, and ~~agreed to unwind~~ the ~~transaction~~Oracle ~~and~~Cloud ~~negotiated~~Infrastructure ~~and~~platform, ~~finalized~~utilizing the ~~terms~~global ofresources, ancloud ~~Unwind~~technology, ~~Agreement~~infrastructure ~~(the~~and ~~“Unwind”).~~expertise ~~The~~Oracle ~~agreement~~has ~~became~~to ~~effective~~offer, onas ~~May~~the ~~31,~~company ~~2016,~~moves ~~which~~into ~~essentially~~its ~~unwound~~next ~~the~~phase ~~SEA~~of growth.

~~AlphaPoint~~LevelBlox ~~management~~ is ~~currently~~committed ~~seeking~~to ~~alternative~~Blockchain ~~opportunities~~deployments infor ~~line~~enterprise ~~with~~markets. ~~their~~It ~~original~~seeks ~~strategy~~to ofeliminate ~~acquiring~~intermediaries aby ~~business~~increasing inefficiency ~~the~~and ~~technology~~speed ~~sector~~and ~~that~~simplifying isoperations ~~capable~~by ofreducing ~~growth~~cost and ~~development~~time related to Software Asset Management (SAM) reconciliations and disputes.

Business Operations

~~AlphaPoint~~LevelBlox, is a developer of Software Asset Management (SAM) applications for the Blockchain. LevelBlox’s ~~principal~~SAM ~~objective~~Blockchain isapplication will connect software entitlements to ~~partner~~their licenses and components with ~~innovative~~the ~~technology~~software ~~focused~~decision ~~companies~~makers, ~~that~~to ~~are~~drive ~~interested~~automation inwith ~~pursuing~~transparency ~~growth~~to ~~through~~reduce ~~the~~SAM ~~public~~content, ~~markets.~~effort, Weand ~~are~~cost. ~~aggressively~~LevelBlox’s ~~assembling~~Blockchain aauditing ~~portfolio~~and ofcompliance ~~high-quality~~tool ~~businesses~~will ~~and~~assist ~~establishing~~companies awith ~~sustainable~~their ~~business~~compliance ~~model~~audits, tointernal ~~achieve~~controls, ~~superior~~ and ~~sustainable~~best ~~financial~~business ~~results~~practices.

WeLevelBlox, ~~intend~~Inc’s toprincipal ~~accomplish~~objective ~~these~~is ~~objectives~~to ~~through~~partner ~~targeted~~with ~~strategic~~innovative ~~acquisitions~~Blockchain ~~and~~technology ~~partnerships.~~focused ~~We seek~~ companies that ~~either~~are ~~strategically~~interested ~~fit~~in ~~within~~pursuing ~~our~~growth ~~existing~~through ~~business~~the ~~portfolio,~~public ormarkets. ~~expand~~We ~~our~~are ~~business~~developing ~~into~~relationships ~~new~~with ~~and~~a ~~attractive~~portfolio ~~target markets. Given the rapid pace~~ of ~~technological~~high-quality ~~development~~businesses and ~~the~~establishing ~~specialized~~a ~~expertise~~sustainable ~~typical~~business ~~of our served markets~~model, ~~acquisitions also provide us important access~~ to ~~new~~achieve ~~technologies~~superior and ~~domain~~sustainable ~~expertise~~financial results.

~~AlphaPoint’s~~We ~~business~~intend ~~units~~to ~~will~~accomplish ~~typically~~these ~~operate~~objectives asthrough ~~stand-alone~~targeted ~~operations,~~strategic ~~but~~acquisitions ~~are supported by a seasoned executive team~~ and ~~a shared technology and administrative infrastructure~~partnerships. ~~While~~We ~~the~~seek ~~circumstances~~companies ofthat ~~every~~either ~~transaction~~strategically ~~are~~fit ~~unique,~~within weour ~~prefer~~existing tobusiness ~~partner~~portfolio ~~with~~or ~~top~~expand ~~caliber~~our ~~executives,~~business ~~and~~into ~~skilled~~new ~~management teams of middle-market businesses~~ and ~~support~~attractive ~~them~~target ~~with the necessary tools to build each company into a leader in its segment~~markets. WeGiven ~~believe~~the ~~this~~rapid ~~philosophy~~pace ~~enables~~of usBlockchain todevelopments ~~combine talents~~ and ~~technologies,~~the ~~share~~specialized ~~services~~expertise ~~and~~typical ~~benefit from a range~~ of ~~centrally~~our ~~managed~~served ~~initiatives~~markets, ~~while~~acquisitions ~~maintaining~~also ~~the~~provide ~~uniqueness~~us ~~and~~essential ~~brand~~access ~~equity~~to ~~and~~new ~~culture~~technologies ~~of each unit~~ and adomain ~~decentralized decision-making structure~~expertise.

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~~AlphaPoint~~LevelBlox’s ~~leverages~~business ~~the~~units ~~vast~~will ~~experience~~typically ~~that~~operate ~~its~~as stand-alone operations, but are supported by a seasoned executive team ~~has~~and ~~amassed~~a inshared ~~creating~~technology ~~the~~and ~~suitable~~administrative ~~financial architecture~~infrastructure. ~~Including~~While ~~its~~the ~~expertise~~circumstances inof ~~the~~every ~~public~~transaction ~~sector~~are unique, ~~follow-on~~we ~~offerings,~~prefer ~~private~~to ~~placements~~partner with top caliber executives, ~~other~~and ~~financial~~skilled ~~know~~management teams of middle-~~how~~market asbusinesses ~~well~~and ~~as,~~support them with the ~~organizational~~necessary ~~frameworks~~tools ~~(executive~~to ~~strategy~~build each company into a leader in its segment. We believe this philosophy enables us to combine talents and ~~leadership~~technologies, ~~key~~share ~~C-level~~services and ~~technical~~benefit ~~staffing,~~from ~~supply~~a ~~chain~~range ~~development,~~of ~~etc.),~~centrally ~~that~~managed ~~are~~initiatives ~~critical,~~while ~~yet~~maintaining ~~often~~the ~~beyond~~uniqueness ~~the~~and ~~means~~brand equity and ~~experience~~culture of ~~private~~each ~~companies~~unit and a decentralized decision-making structure.

LevelBlox leverages the vast experience that its executive team has amassed in creating the suitable financial architecture. Including its expertise in the public sector, follow-on offerings, private placements, other financial know-how as well as, the organizational frameworks (executive strategy and leadership, key C-level and technical staffing, supply chain development, etc.), that are critical, yet often beyond the means and experience of private companies.

All references to the previously acquired business Operations, Technology, Development, Sales / Marketing, Alliances and Customers, have been removed for this annual report.

Intellectual Property

Our ability to compete successfully depends in part on our ability to develop and maintain the proprietary aspects of our technology and operate without infringing upon the proprietary rights of others. We rely on a combination of trademarks, copyrights, service marks, trade secrets, confidentiality procedures, contractual provisions and other similar measures to protect our proprietary information and intellectual property.

Our customer agreements include restrictions intended to protect and defend our intellectual property rights. We also require our employees, contractors and many others with whom we have business relationships to sign confidentiality agreements.

While our trademarks and copyrights are an important part of our success, our business as a whole is not materially dependent on any one trademark, copyright or on a combination of any or all of our proprietary technology.

Executive Officers

The following table sets forth information about our executive officers as of December 31, ~~2017~~2018:

Name	Age	Position	Executive Officer Since
Gary W. Macleod	5455	President, Chief Executive Officer	2008
James Whelan	47	Chief Technology Officer	2018

Gary Macleod, the Chief Executive Officer and Director of ~~AlphaPoint Technology~~LevelBlox, Inc., has played a key leadership role in translating technical information and new technologies into compelling value propositions to drive customer endorsement and sell-through models for evolving Enterprise Grade software solutions. Mr. Macleod took ~~AlphaPoint~~LevelBlox Technology public in 2011. From August 2005 to January 2008, Mr. Macleod was the Chief Executive Officer and Director of Non-Invasive Monitoring Systems, Inc. He was responsible for filing comprehensive and required publicly-held organization financial reports, raising capital, strengthening stakeholder confidence, shareholder communications, steering product introduction efforts, developing long-term business plans, and restructuring the organization. Mr. Macleod brings M&A, Buyout, and Share Exchange expertise, to his over 25 years of broad-based executive leadership of companies, and over ten years of CEO leadership to U.S. public companies.

James Whelan, Chief Technology Officer of LevelBlox, has three decades of history working in information technology, software, and services industry. He is a dedicated and certified professional in Scrum, DevOps, agile methodologies and project management. Currently Serving the enterprise market to produce value by helping to make effective software products that millions of people use to solve business problems. He has strong information technology and business background with a Master’s degree in Business Administration.

Available Information

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other periodic reports are available free of charge on our website (www.~~alphaPointtechnology~~LevelBlox.com) as soon as reasonably practicable after we have electronically filed or furnished such materials to the Securities and Exchange Commission. They are also available at www.sec.gov.

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ITEM 1A. RISK FACTORS

Factors That Could Affect Future Results

You should carefully consider the risks below, as well as other information included or incorporated by reference in this report before making an investment decision. We operate in a dynamic and rapidly changing environment that involves many risks and uncertainties that could cause actual results to differ materially from results contemplated by forward-looking statements in this report. Because of the factors discussed below, other information included or incorporated by reference in this report and other factors affecting our operating results, past performance should not be considered a reliable indicator of future performance. The risks discussed in this report are not the only risks we face. Risks and uncertainties of which we are not currently aware, or which we currently deem to be immaterial, may also adversely affect our business, financial condition or operating results.

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RISKS RELATED TO OUR BUSINESS

Limited Corporate History

We were incorporated on November 13, 2008 and have a limited operating history that can be used to evaluate us, and the likelihood of our success must be considered in light of the problems, expenses, difficulties, complications and delays that we may encounter because we are a small business. As a result, we may not be profitable and we may not be able to generate sufficient revenue to develop as we have planned. To address these risks the Company must, among other things, continue to attract investment capital, respond to competitive factors, continue to attract, retain and motivate qualified personnel.

We continue to monitor and manage our costs in an effort to optimize our performance for the long-term. However, there is no assurance that we will be successful; unforeseen expenses, difficulties or delays may prevent us from realizing our goals. From time to time, we incur restructuring expenses or expenses related to other cost reduction efforts, but we can offer no assurance that these or other actions will enable us to achieve or sustain profitability in the future. In addition, we cannot be certain that steps we have taken to control our costs will not adversely affect our prospects for long-term revenue growth. If we cannot increase our revenue, improve gross margins and control costs, our future results and financial condition will be negatively affected.

Acquisitions of, and investments in, other businesses present many risks. We may not realize the anticipated financial and strategic benefits of these transactions, and we may not be able to manage our operations with the acquired businesses efficiently or profitably.

As part of our business strategy, we evaluate opportunities to expand and enhance our product and service offerings to meet customer needs, increase our market opportunities and grow revenue through internal development efforts and external acquisitions and partnerships. We may continue to acquire or make investments in other companies, products, services and technologies in the future. Acquisitions and investments may cause disruptions in or add complexity to our operations and involve a number of risks, including the following:

• the anticipated benefits, such as an increase in revenue, may not materialize if, for example, a larger number of customers than expected choose not to renew or if we are unable to cross-sell the acquired company’s solutions to our existing customer base; • we may have difficulty integrating and managing the acquired technologies or products with our existing product lines, and maintaining uniform standards, controls, procedures and policies across locations; • we may experience challenges in, and have difficulty penetrating, new markets where we have little or no prior experience and where competitors have stronger market positions; • integrating the financial systems and personnel of the acquired business and retaining key employees may be difficult, and, to the extent we issue shares of stock or other rights to purchase stock to such individuals, existing stockholders may be diluted; • our ongoing business and management’s attention may be disrupted or diverted by transition or integration issues and the complexity of overseeing geographically and culturally diverse locations; • we may find that the acquired business or assets do not further our business strategy, or that we overpaid for the business or assets, or that we do not realize the expected operating efficiencies or product integration benefits; • our use of cash consideration for one or more significant acquisitions may require us to use a substantial portion of our available cash or incur substantial debt, and if we incur substantial debt, it could result in material limitations on the conduct of our business; • we may fail to uncover or realize the significance of, or otherwise become exposed to, liabilities and other issues assumed from an acquired business, such as claims from terminated employees or third-parties and unfavorable revenue recognition or other accounting practices; and • we may experience customer confusion as a result of product overlap, particularly when we offer, price and support various product lines differently.

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•	our use of cash consideration for one or more significant acquisitions may require us to use a substantial portion of our available cash or incur substantial debt, and if we incur substantial debt, it could result in material limitations on the conduct of our business;

•	we may fail to uncover or realize the significance of, or otherwise become exposed to, liabilities and other issues assumed from an acquired business, such as claims from terminated employees or third-parties and unfavorable revenue recognition or other accounting practices; and

•	we may experience customer confusion as a result of product overlap, particularly when we offer, price and support various product lines differently.

These factors could have a material adverse effect on our business, results of operations and financial condition or cash flows. Furthermore, during periods of operational expansion, we often need to increase the size of our staff, our related operations and third party partnerships, and potentially amplify our financial and accounting controls to ensure they remain effective. Such changes may increase our expenses, and there is no assurance that our infrastructure will be sufficiently scalable to efficiently manage any growth that we may experience. If we are unable to leverage our operating cost investments as a percentage of revenue, our ability to generate or increase profits will be adversely impacted. In addition, from time to time, we may enter into negotiations for acquisitions and other investments that are not ultimately consummated, which could result in significant diversion of management time, as well as out-of-pocket expenses.

To keep pace with technological developments, satisfy increasingly sophisticated customer requirements, achieve market acceptance and effectively respond to competition, we must quickly identify emerging trends and requirements, accurately define and design enhancements and improvements for existing solutions, and introduce new solutions that satisfy our customers’ changing demands. Accelerated introductions for new solutions require high levels of expenditures for research and development that could adversely affect our operating results. Further, any new solutions we develop may not be introduced in a timely manner or be available in a distribution model favored by our target markets, and may therefore not achieve the broad market acceptance necessary to generate significant revenue. If we are unable to quickly and successfully develop or acquire and distribute new products and services cost-effectively, or enhance existing solutions, or if we fail to position and price our solutions to meet market demand, our business and operating results will be adversely affected.

If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the trading price of our common stock may be negatively affected.

We are required to maintain internal controls over financial reporting and to report any material weaknesses in such internal controls. Effective planning and management processes are necessary to meet these requirements, and we expect that we will need to continue to improve existing, and implement new, operational and financial systems, procedures and controls to manage our business effectively in the future. If we identify material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner or assert that our internal control over financial reporting is effective, investors may lose confidence in the accuracy and completeness of our financial reports, the trading price of our common stock could be negatively affected, and we could become subject to investigations by the Securities and Exchange Commission or other regulatory authorities, which could require additional financial and management resources.

If we fail to adequately protect our proprietary rights and intellectual property, we may lose valuable assets, experience reduced revenue and incur costly litigation to protect our rights.

Our success and ability to compete depends on the proprietary technology embedded in our solutions. We rely on a combination of trademarks, copyrights, service marks, trade secrets, contractual provisions and other similar measures to establish and protect our proprietary rights. We cannot protect our intellectual property if we are unable to enforce our rights or if we do not detect its unauthorized use. Despite our precautions, unauthorized third parties may be able to copy or reverse engineer our solutions and use information that we regard as proprietary to create products and services that compete with ours. Provisions in our agreements prohibiting unauthorized use, copying, transfer and disclosure of our licensed programs and services may be unenforceable under the laws of some jurisdictions. Further, the laws of some countries do not protect proprietary rights to the same extent as the laws of the United States. To the extent that we engage in international activities, our exposure to unauthorized copying and use of our products, services and proprietary information increases. We enter into various restrictive agreements with our employees and consultants, as well as with customers and third parties with whom we have strategic relationships. We cannot ensure that these agreements will be effective in controlling access to and distribution of our products, services and proprietary information. Nor do these agreements prevent our competitors from independently developing technologies that are substantially equivalent or superior to our solutions. Litigation may be necessary to enforce our intellectual property rights and protect our trade secrets. Litigation, whether successful or unsuccessful, could result in substantial costs and diversion of management resources, either of which could seriously harm our business.

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Risks Related to Our Stock

Our stock price is likely to remain volatile.

The trading price of our common stock has in the past, and may in the future, be subject to wide fluctuations in response to many factors, including those described in this section. The volume of trading in our common stock is limited, which may increase volatility. Investors should consider an investment in our common stock as risky and should purchase our common stock only if they can withstand significant losses. Other factors that affect the volatility of our stock include:


•	our actual and anticipated operating performance and the performance of other similar companies;

•	actual and anticipated fluctuations in our financial results;

•	failure of securities analysts to maintain coverage of us;

•	ratings changes by any securities analysts who follow us;

•	failure to meet our projected results or the published operating estimates or expectations of securities analysts and investors;

•	failure to achieve revenue or earnings expectations;

•	price and volume fluctuations in the overall stock market, including as a result of trends in the global economy;

•	significant sales by existing investors, coupled with limited trading volume for our stock;

•	announcements by us or our competitors of significant contracts, results of operations, projections, or new technologies;

•	lawsuits threatened or filed against us;

•	adverse publicity;

•	acquisitions, commercial relationships, joint-ventures or capital commitments;

•	changes in our management team or board of directors;

•	publication of research reports, particularly those that are inaccurate or unfavorable, about us or our industry by securities analysts; and

•	other events or factors, including those resulting from war, incidents or terrorism or responses to these events.

Additionally, some companies with volatile market prices for their securities have been the subject of securities class action lawsuits. Any such suit could have a material adverse effect on our business, results of operations, financial condition and price of our common stock.

Future sales of substantial amounts of our common stock, including securities convertible into or exchangeable for shares of our common stock could cause our stock price to fall.

We may issue additional shares of our common stock, including securities convertible into or exchangeable for, or that represent the right to receive, shares of our common stock. Such issuances will dilute the ownership interest of our stockholders and could adversely affect the market price of our common stock. We cannot predict the effect that future sales of shares of our common stock or other equity-related securities would have on the market price of our common stock. In addition, sales by existing stockholders of a large number of shares of our common stock in the public trading market (or in private transactions), including sales by our executive officers, directors or institutional investors, or the perception that such additional sales could occur, could cause the market price of our common stock to drop. We have stock options and restricted stock units outstanding for shares of our common stock. Our stockholders may incur dilution upon exercise of an outstanding stock option or vesting of outstanding restricted stock units.

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We do not intend to pay dividends for the foreseeable future.

We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings to finance the operation and expansion of our business, and we do not expect to declare or pay any dividends in the foreseeable future. Consequently, stockholders must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment.

Limited market for our Stock

The Company’s stock is listed and traded on the OTC Bulletin Board. The trading of securities on the OTC Bulletin Board is often sporadic and investors may have difficulty buying and selling our shares or obtaining market quotations for them, which may have a negative effect on the market price of our common stock. You may not be able to sell your shares at their purchase price or any price at all. Accordingly, you may have difficulty reselling any share you purchase from the selling security holders. We cannot guarantee that there will be a future market for our common stock.

Penny Stock risk

Our common stock is currently considered a “penny stock” and may continue in the future to be subject to the “penny stock” rules adopted under Section 15(g) of the Exchange Act. The penny stock rules generally apply to companies whose common stock is not listed on The NASDAQ Stock Market or other national securities exchange and trades at less than $5.00 per share, other than companies that have had average revenue of at least $6,000,000 for the last three years or that have tangible net worth of at least $5,000,000 ($2,000,000 if the company has been operating for three or more years.) These rules require, among other things, that brokers who trade penny stock to persons other than “established customers” complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided not to trade penny stocks because of the requirements of the penny stock rules. Since our securities are subject to the penny stock rules, investors may find it more difficult to dispose of our securities.

No independent audit committee risk

The Company does not have any committees.

Going concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has a history of losses, primarily due to its product development stage, resulting in an accumulated deficit. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise additional capital and execute its business plan. The Company intends on financing its future acquisition strategies and development activities needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements.

The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Ineffective internal control risks

The Company’s management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error or all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of the control system must reflect that there are resource constraints and that the benefits must be considered relative to their costs. Because of the inherent limitation in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, with the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistakes. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

- 6 -

Management Risks

Managing a small public company involves a high degree of risk. Few small public companies ever reach market stability and we will be subject to oversight from governing bodies and regulations that will be costly to meet. Our present officers and directors do have experience in managing a fully reporting public company, but may also obtain outside consultants to assist with our meeting these requirements. These outside consultants are expensive and can have a direct impact on our ability to be profitable.

While the Company is attempting to disclose all of the potential risks associated with an investment in the Company, there can be no assurance that all of the risks are visible to management. Events occurring in the future may be additional risks to an investment in the Company.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Company does not own any property at this time. We rent our headquarters in Sarasota, Florida. and a satellite office in Miami, Florida.

ITEM 3. LEGAL PROCEEDINGS

From time to time the Company may become a party to litigation matters involving claims against the Company. Current regulations and reporting requirements require the Company to disclose any legal proceedings that are ongoing and could have a material impact on the ~~consolidated~~ financial statements for the ~~period~~quarter ended ~~December~~September 3130, ~~2017~~2018. We know of no active or pending legal proceedings against us, nor are we involved as a plaintiff in any active or pending legal proceedings that are material. There are no proceedings in which any of our directors, sole officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.

On July 13, 2016, AlphaPoint entered into a Mediation Settlement Agreement with Ladenburg Thalmann & Co. (“Ladenburg”) regarding the lawsuit arising from the Investment Banking Agreement and associated counter-claim by the Company (11th Judicial Circuit Court, Miami-Dade County, Florida (Case No. 15004012 CA 01)) (“Lawsuit”). Under the Settlement Agreement, the parties agreed to dismiss the Lawsuit upon the settlement payment, which totaled $33,800, inclusive of mediation fees. All matters previously disclosed and subject to the Settlement Agreement are described in further detail in the Company’s 2015 and 2016 Quarterly and 2014 and 2015 Annual Reports filed with the SEC.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

PART II

Price Range of Common Stock

The Company’s common stock is listed on the Over the Counter Bulletin Board (“OTC: QB”) under the symbol “~~APPO~~LVBX”. The Company received its “Notice of Effectiveness” on November 1, 2011.

The following table sets forth the high and low trade information for our common stock for each quarter for the current year. The prices reflect inter-dealer quotations, do not include retail mark-ups, markdowns or commissions and do not necessarily reflect actual transactions.


	High		Low
Fiscal Year 2017
First quarter ended March 31, 2017	$	0.20	$	0.02
Second quarter ended June 30, 2017	$	0.20	$	0.05
Third quarter ended September 30, 2017	$	0.20	$	0.06
Fourth quarter ended December 31, 2017	$	0.11	$	0.02

Fiscal Year 2018
First quarter ended March 31, 2018	$	0.10	$	0.07
Second quarter ended June 30, 2018	$	0.13	$	0.05
Third quarter ended September 30, 2018	$	0.11	$	0.01
Fourth quarter ended December 31, 2018	$	0.10	$	0.02

- 7 -

	High		Low
Fiscal Year 2016
First quarter ended March 31, 2016	$	0.10	$	0.04
Second quarter ended June 30, 2016	$	0.20	$	0.03
Third quarter ended September 30, 2016	$	0.10	$	0.04
Fourth quarter ended December 31, 2016	$	0.06	$	0.02
Fiscal Year 2017
First quarter ended March 31, 2017	$	0.20	$	0.02
Second quarter ended June 30, 2017	$	0.20	$	0.05
Third quarter ended September 30, 2017	$	0.20	$	0.06
Fourth quarter ended December 31, 2017	$	0.11	$	0.02

Approximate Number of Equity Security Holders

On December 31, ~~2017~~2018 the Company’s common stock had a closing price quotation of $0.0806. As of December 31, ~~2017~~2018, there were 7797,~~413~~243,259 shares of our common stock outstanding held by approximately 62 certificate holders of record.

Dividends

We have never declared or paid cash dividends on our common shares, and we do not currently anticipate that we will pay any dividends with respect to those securities. Our current business plan is to retain any future earnings to finance the expansion and development of our business.

ITEM 6. SELECTED FINANCIAL DATA

We qualify as a smaller reporting company, as defined by Rule 229.10(f)(1), and therefore are not required to provide the information required by this Item.

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

Cautionary Notice Regarding Forward Looking Statements

The information contained in Item 7 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. This filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical fact, including statements addressing operating performance, events, or developments which management expects or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability, new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.

- 8 -

Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks to be discussed in our Annual Report on form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Our consolidated financial statements are stated in United States Dollars (USD or US $) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to “common stock” refer to the common shares in our capital stock.

- 8 -

General Business Overview:

~~AlphaPoint Technology~~LevelBlox, Inc. (“~~AlphaPoint~~LevelBlox”) ~~or,~~formerly ~~collectively~~known ~~with~~as ~~its~~AlphaPoint ~~subsidiaries~~Technology, ~~the~~Inc., ~~“Company”)~~ was incorporated in the State of Delaware on November 13, 2008. ~~AlphaPoint~~LevelBlox, is a developer of Software Asset Management (SAM) applications for the Blockchain. LevelBlox has developed a patent-pending software application called AssetCentral (AC). Through AssetCentral use cases we have identified the growing complexity and scope with the current methodology and tracking of Software Asset Management licenses. LevelBlox’s ~~legacy~~SAM ~~business~~Blockchain ~~has~~application ~~been~~will ~~helping~~connect software entitlements to their licenses and components with the software decision makers, to drive automation with transparency to reduce SAM content, effort, and cost. LevelBlox’s Blockchain auditing and compliance tool will assist companies ~~manage~~with their ITcompliance ~~assets~~audits, internal controls, and best business practices.

InLevelBlox ~~October~~has ~~2015,~~been ~~AlphaPoint~~selected ~~acquired~~to ~~100%~~join of the ~~outstanding~~Oracle ~~equity~~Scaleup ~~of STR Ltd. in exchange for 58~~Ecosystem,~~163,265~~ ~~shares of its common stock~~ and ~~a promissory note in~~ the ~~amount~~Oracle ofCloud ~~$900,000.~~Infrastructure ~~STR~~platform, ~~Ltd.~~utilizing ~~was~~the ~~founded~~global inresources, ~~2009~~cloud totechnology, ~~provide~~infrastructure ~~revenue acceleration solutions to large organizations through the performance improvement~~ and ~~effective~~expertise ~~execution~~Oracle ofhas ~~their sales teams. Subsequently, the parties~~ to ~~the SEA believe that the intended benefits have not been realized~~offer, ~~and~~as ~~agreed to unwind~~ the ~~transaction~~company ~~and~~moves ~~negotiated~~into ~~and~~its ~~finalized~~next ~~the~~phase ~~terms~~ of ~~an Unwind Agreement (the “Unwind”)~~growth. ~~The agreement became effective on May 31, 2016, which essentially unwound the SEA.~~

Application of Critical Accounting Policies and Use of Estimates

Our discussion and analysis of our financial condition and results of operations that follows is based upon our consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The application of GAAP requires our management to make assumptions, judgments and estimates that affect our reported amounts of assets, liabilities, revenue and expenses, and the related disclosures regarding these items. We base our assumptions, judgments and estimates on historical experience and on various other factors that we believe to be reasonable under the circumstances. Actual results could differ significantly from these estimates under different assumptions or conditions. To the extent that there are material differences between these estimates and actual results, our future financial condition or results of operations will be affected. On a regular basis, we evaluate our assumptions, judgments and estimates.

We believe that the assumptions, judgments and estimates involved in the accounting for revenue recognition, ~~allowance for doubtful accounts,~~ stock-based compensation, ~~valuation of acquired intangible assets, long-lived asset impairment,~~ and income taxes have the greatest potential impact on our consolidated financial statements. These areas are key components of our results of operations and are based on complex rules which require us to make judgments and estimates. Historically, our assumptions, judgments and estimates in accordance with our critical accounting policies have not materially differed from actual results. For a more detailed discussion of these accounting policies and our use of estimates, refer to Note 1 of our Notes to Consolidated Financial Statements included in this report.

Software Development Costs

The Company accounts for software development costs in accordance with several accounting pronouncements, including FASB ASC 730, Research and Development, and FASB ASC ~~350-40, Internal-Use Software, FASB~~ 985-20, Costs of ~~Computer~~ Software to be Sold, Leased, or Marketed ~~and FASB ASC 350-50, Website Development Costs~~.


•	Costs incurred during the period of planning and design, prior to the period determining technological feasibility, for all software developed for use internal and external, has been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development.

•	The Company may capitalize costs incurred in the development of our proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility is determined and prior to our marketing and initial sales.

At December 31, 2018, no software development costs had been capitalized.

- 9 -

• Costs incurred during the period of planning and design, prior to the period determining technological feasibility, for all software developed for use internal and external, has been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development. • The Company has capitalized certain costs in the development of our proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility was determined and prior to our marketing and initial sales; • Website development costs have been capitalized, under the same criteria as our marketed software.

Capitalized software costs are stated at cost. The estimated useful life of costs capitalized is evaluated for each specific project and is currently being amortized over three to five years. At December 31, 2017, all software and website development costs had been fully amortized.

Long-lived Assets and Intangible Property

Long-lived assets such as property, equipment and identifiable intangibles are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. The Company did not recognize any impairment losses for any periods presented.

Share-based Payments

Share-based payments to employees, including grants of employee stock options or shares of stock are recognized as compensation expense in the consolidated financial statements based on their fair values, in accordance with FASB ASC Topic 718. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company may issue restricted stock to consultants for various services. Cost for these transactions is measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is to be measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The fair value of the Company’s common stock is obtained from the trading prices on or near the date of the transaction. ~~The Company may issue shares as compensation in the future period for services associated with the registration of the common shares.~~

Intangible Assets, Long-Lived Assets and Impairment Assessments

Intangible assets with finite lives are amortized over their estimated useful lives. Generally, amortization is based on the straight-line method. There was no impairment expense related to intangible assets during 2017 or 2016.

The Company also evaluates the recoverability of its long-lived assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges recorded during 2017 or 2016.

Foreign Currency

The assets and liabilities of STR for which the local currency is the functional currency (Pound Sterling) were translated into U.S. dollars using the exchange rate in effect at each balance sheet date and income and expense accounts are translated using weighted average exchange rates for each period during the year. Translation gains and losses are reported as a component of accumulated other comprehensive income (loss), included within stockholders’ deficit. Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of comprehensive loss. Comprehensive loss from foreign currency translation for the year ended December 31, 2017 and 2016 was $0 and $88,440, respectively.

- 10 -

Results of Operations

For the years ended December 31, ~~2017~~2018 and ~~2016~~2017:

Our consolidated revenues were $0 and $~~2,236~~0 for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively. ~~The decrease in revenues from 2016 is the result of a full year of recognition of deferred revenue in 2016 not available in 2017.~~

Operating expenses were $~~378~~1,~~421~~410,616, and $~~628~~378,~~532~~421 for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively. The ~~decrease~~increase ~~year~~in year-over -year expenses ~~was~~resulted mainly ~~due~~from higher professional fees incurred in the Company’s efforts to seek executive talent and business advisors to assist in developing new business strategies as well as research and development costs incurred in the ~~curtailment~~development of ~~expenses~~the ~~resulting~~new ~~from~~software to be sold in the ~~current~~future. In ~~lack~~addition, a significant portion of ~~revenue~~operating expenses during the period consisted of stock-based compensation expense related to issuances of stock in exchange for services.

Net losses incurred in the ~~periods~~years presented have been primarily due to ~~losses~~operating expenses in the absence of revenues. The Company recognized $108,000 in other income resulting from ~~discontinued~~the ~~operations~~sale ~~and~~of ~~operating~~the ~~costs~~corporate name AlphaPoint Technology, Inc. to an unrelated third party. The Company incurred net losses of $~~378~~1,~~421~~302,616 and $~~835~~378,~~237~~421 for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively. The ~~decrease~~increase in the year over year net loss was due primarily to ~~the~~increase ~~elimination~~in ofoperating ~~the~~expenses described ~~discontinued operation of the STR business reflected~~ in the ~~2016~~preceding ~~operating results~~paragraph.

We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a technology business enterprise, including the financial risks associated with the limited capital resources currently available to us for the implementation of our business strategies. (See “Risk Factors”). To become profitable and competitive, we must develop the business and marketing plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment from institutions and private individuals.

Liquidity and Capital Resources

As reflected in the consolidated financial statements, at December 31, ~~2017~~2018 and ~~2016~~2017, we have a deficit in working capital, an accumulated deficit and for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, we have a net loss ~~and comprehensive loss~~.

At December 31, ~~2017~~2018, the Company had current assets of $1195,~~440~~574 consisting only of cash and prepaid expenses, and current liabilities of $~~730~~939,~~891~~297 resulting in a working capital deficit of $~~729~~743,~~451~~723.

~~Until~~We ~~October 15, 2015 we depended on advances from shareholders, to meet any shortfall in meeting our obligations. However, we~~ will require ~~working~~additional ~~capital~~funding to meet our current shortfall in working capital. If the Company is unable to raise the funds partially through stock offerings, the Company will seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance that the Company will be able to raise such funds.

Consequently, there is ~~substantial~~ doubt about the Company’s ability to continue to operate as a going concern. As reflected in the financial statements we have an accumulated deficit from inception of $45,~~190~~492,~~267~~883 and have a net loss from operations of $~~378~~1,~~421~~302,616 and $~~626~~378,~~296~~421 for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and execution of its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

If we are unsuccessful at raising sufficient funds, for whatever reason, to fund our operations, the Company may be forced to seek a buyer for our business or another entity with which we could create a joint venture.

Management believes that actions presently being taken to obtain additional funding and execution of its strategic plans provide the opportunity for the Company to continue as a going concern.

- 10 -

Recent Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted in the adoption of various corporate governance measures designed to promote the integrity of the corporate management and the securities markets. Some of these measures have been adopted in response to legal requirements. Others have been adopted by companies in response to the requirements of national securities exchanges, such as the NYSE or The NASDAQ Stock Market, on which their securities are listed. Among the corporate governance measures that are required under the rules of national securities exchanges are those that address board of directors’ independence, audit committee oversight, and the adoption of a code of ethics. Our Board of Directors consists of eight (8) individuals who advise our chief executive officer. Our chief executive officer makes decisions on all significant corporate matters such as the approval of terms of the compensation of our executive officers.

- 11 -

The Company has adopted a Code of Ethics and Business Conduct. The Company is in the process of introducing them. The Company has not adopted corporate governance measures such as an audit or other independent committees of our board of directors. If we expand our board membership in future periods to include additional independent directors, the Company may seek to establish an audit and other committees of our board of directors. It is possible that if our Board of Directors included independent directors and if we were to adopt some or all of these corporate governance measures, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested directors and that policies had been implemented to define responsible conduct. For example, in the absence of audit, nominating and compensation committees comprised of at least a majority of independent directors, decisions concerning matters such as compensation packages to our senior officers and recommendations for director nominees may be made by a majority of directors who have an interest in the outcome of the matters being decided. Prospective investors should bear in mind our current lack of corporate governance measures in formulating their investment decisions.

Recent Accounting Pronouncements

See Note 3 in the consolidated financial statements for a discussion of recent accounting guidance.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

Management Consideration of Alternative Business Strategies

In order to continue to protect and increase shareholder value, management believes that it may, from time to time, consider alternative management strategies to create value for the company or additional revenues. Strategies to be reviewed may include acquisitions, roll-ups, strategic alliances, joint ventures on large projects, and/or mergers.

Management will only consider these options where it believes the result would be to increase shareholder value while continuing the viability of the company.

Inflation

The effect of inflation on our revenues and operating results has not been significant.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We qualify as a smaller reporting company, as defined by Rule 229.10(f)(1), and therefore are not required to provide the information required by this Item.

- 11 -

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

~~ALPHAPOINT~~LEVELBLOX TECHNOLOGIES, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

		Page
Report of Independent Registered Public Accounting Firm – Gregory, Sharer & Stuart, P.A.		F-1
Consolidated Balance Sheets as of December 31, 2017 and 2016		F-2
Consolidated Balance Sheets as of December 31, 2018 and 2017		F-2
Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2017 and 2016		F-3
Consolidated Statements of Operations for the Years Ended December 31, 2018 and 2017		F-3
Consolidated Statement of Changes in Stockholders’ Deficit for the Years Ended December 31, 2017 and 2016		F-4
Consolidated Statement of Changes in Stockholders’ Deficit for the Years Ended December 31, 2018 and 2017		F-4
Consolidated Statements of Cash Flows for the Years Ended December 31, 2017 and 2016		F-5
Consolidated Statements of Cash Flows for the Years Ended December 31, 2018 and 2017		F-5
Notes to Consolidated Financial Statements		F-6 - 1210

- 12 -

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders

LevelBlox, Inc. f.k.a. AlphaPoint Technology, Inc. and Subsidiaries

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of LevelBlox, Inc. (f.k.a. AlphaPoint Technology, Inc.) and subsidiaries (the Company) as of December 31, ~~2017~~2018 and ~~2016~~2017; the related consolidated statements of ~~comprehensive loss~~operations, stockholders’ deficit, and cash flows for the years then ended; and the related notes to the consolidated financial statements (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, ~~2017~~2018 and ~~2016~~2017, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

The Company’s Ability to Continue as a Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the accompanying consolidated financial statements, the Company has suffered recurring losses from operations and its current liabilities exceed its current assets. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding those matters are described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated 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 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 audits to obtain reasonable assurance about whether the consolidated 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 consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Gregory, Sharer & Stuart, P.A.

We have served as the Company’s auditor since 2016.

/s/ Gregory, Sharer & Stuart, P.A.

St. Petersburg, Florida

~~April~~March 229, ~~2018~~2019

F-1

LevelBlox, Inc., formerly known as AlphaPoint Technology, Inc. ~~and Subsidiaries~~

and Subsidiaries

Consolidated Balance Sheets

	December 31,
	2017			2016
	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	1146,~~440~~621		$	1,~~413~~440
Prepaid and other current assets		—48,953			~~5,489~~—
Total current assets		1195,~~440~~574			61,~~902~~440
Total assets	$	1195,~~440~~574		$	61,~~902~~440
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5759,~~004~~755		$	9057,~~912~~004
Accrued expenses		~~459~~705,~~755~~948			~~213~~459,~~258~~755
Advances from stockholders		214,132			53,762
Related party payables		173,594			214,132
Total current liabilities		~~730~~939,~~891~~297			~~357~~730,~~932~~891
Total liabilities		~~730~~939,~~891~~297			~~357~~730,~~932~~891
Commitments and contingencies (Notes 8 and 9)
Commitments and contingencies (Notes 7 and 8)
Stockholders’ deficit:
Common stock, 500,000,000 shares authorized, $0.01 par value, 77,413,259 shares issued and outstanding at December 31, 2017 and 2016		774,133			774,133
Common stock, 500,000,000 shares authorized, $0.01 par value, 97,243,259 and 77,413,259 issued and outstanding at December 31, 2018 and December 31, 2017, respectively		972,433			774,133
Additional paid-in capital		23,~~686~~776,~~683~~727			2,686,683
Accumulated deficit		(45,~~190~~492,~~267~~883	)		(34,~~811~~190,~~846~~267	)
Total stockholders’ deficit		(~~729~~743,~~451~~723	)		(~~351~~729,~~030~~451	)
Total liabilities and stockholders’ deficit	$	1195,~~440~~574		$	61,~~902~~440

The accompanying notes are an integral part of these consolidated financial statements.

F-2

LevelBlox, Inc., formerly known as AlphaPoint Technology, Inc. ~~and Subsidiaries~~

~~Consolidated~~and ~~Statements of Comprehensive Loss~~Subsidiaries

	Year Ended December 31,
	2017			2016
Revenue	$	—		$	2,236
Operating expenses:
Sales and marketing		—			3,666
Compensation		251,719			308,336
Research and development		—			3,000
General and administrative		57,057			90,269
Professional fees		69,645			223,261
Total operating expenses		378,421			628,532
Operating loss		(378,421	)		(626,296	)
Other expenses:
Legal settlement		—			(33,800	)
Loss from continuing operations		(378,421	)		(660,096	)
Discontinued operations:
Loss on discontinued operations		—			(674,626	)
Gain on disposal of discontinued operations		—			499,485
Loss from discontinued operations		—			(175,141	)
Net loss	$	(378,421	)	$	(835,237	)
Net loss per share - basic and diluted:
Net loss per share - continuing operations	$	(0.00	)	$	(0.01	)
Net loss per share - discontinued operations	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding - basic and dilutive		77,413,259			101,568,495
Comprehensive loss:
Net loss	$	(378,421	)	$	(835,237	)
Foreign currency translation adjustments		—			(88,440	)
Reclassification adjustment for amounts included in gain from disposal of discontinued operations		—			191,864
Comprehensive loss	$	(378,421	)	$	(731,813	)

Consolidated Statements of Operations


	Year Ended December 31,
	2018			2017

Revenue	$	—		$	—

Operating expenses:
Compensation		248,209			251,719
Research and development		224,334			—
General and administrative		155,694			57,057
Professional fees		730,990			69,645
Stock compensation		51,389			—
Total operating expenses		1,410,616			378,421

Loss from operations		(1,410,616	)		(378,421	)

Other income		108,000			—

Net loss	$	(1,302,616	)	$	(378,421	)

Net loss per share - basic and diluted:	$	(0.01	)	$	(0.00	)

Weighted average number of common shares outstanding - basic and dilutive		91,290,185			77,413,259

The accompanying notes are an integral part of these consolidated financial statements.

F-3

LevelBlox, Inc., formerly known as AlphaPoint Technology, Inc. ~~and Subsidiaries~~

and Subsidiaries

Consolidated Statements of Stockholders’ Deficit

									Accumulated
	Common Stock					Additional						Total
	Common Stock					Additional			Other						Total
			Par Value			Paid-in			Accumulated			Stockholders’
			Par Value			Paid-in			Comprehensive			Accumulated			Stockholders’
	Shares		$0.01			Capital			Deficit			Deficit
	Shares		$0.01			Capital			Income (Loss)			Deficit			Deficit
Balance as of December 31, 2016	77,413,259		$	774,133		$	2,686,683		$	(3,811,846	)	$	(351,030	)
Balance as of December 31, 2015	135,576,524			1,355,766			3,849,948			(103,424	)		(2,976,609	)		2,125,681
Net loss	—			—			—			(378,421	)		(378,421	)
Foreign currency exchange	—			—			—			(88,440	)		—			(88,440	)
Balance as of December 31, 2017	77,413,259			774,133			2,686,683			(4,190,267	)		(729,451	)
Unwinding of STR acquisition	(58,163,265	)		(581,633	)		(1,163,265	)		191,864			—			(1,553,034	)
Stock issued to consultants for services	8,130,000			81,300			503,700			—			585,000
Net loss	—			—			—			—			(835,237	)		(835,237	)
Stock issued to officer for services	250,000			2,500			48,889			—			51,389
Balance as of December 31, 2016	77,413,259			774,133			2,686,683			—			(3,811,846	)		(351,030	)
Stock issued to directors and advisors for services	1,000,000			10,000			70,000			—			80,000
Net loss	—			—			—			—			(378,421	)		(378,421	)
Stock issued to software development firm for services	200,000			2,000			20,000			—			22,000
Balance as of December 31, 2017	77,413,259		$	774,133		$	2,686,683		$	—		$	(4,190,267	)	$	(729,451	)
Stock and warrants issued in exchange for cash	10,250,000			102,500			447,455			—			549,955
Net loss	—			—			—			(1,302,616	)		(1,302,616	)
Balance as of December 31, 2018	97,243,259		$	972,433		$	3,776,727		$	(5,492,883	)	$	(743,723	)

The accompanying notes are an integral part of these consolidated financial statements.

F-4

LevelBlox, Inc., formerly known as AlphaPoint Technology, Inc. ~~and Subsidiaries~~

and Subsidiaries

Consolidated Statement of Cash Flows

	Year Ended
	December 31,
	2017			2016
	2018			2017
Cash Flows from Operating Activities:
Net loss	$	(~~378~~1,~~421~~302,616	)	$	(~~835~~378,~~237~~421	)
Adjustment to reconcile net loss to net cash used in operations:
Depreciation and amortization		—			274,909
Stock-based expense		689,436			—
Gain on disposal of discontinued operations		—			(499,485	)
Foreign currency exchange gain		—			(15,615	)
Changes in assets and liabilities:
Accounts payable and accrued expenses		~~212~~248,~~589~~944			~~443~~212,~~596~~589
Accounts receivable		—			211,732
Prepaid expenses and other current assets		—			5,489
Prepaid expenses and other current assets		5,489			247
Net Cash Used in Operating Activities	$	(364,236	)	$	(160,343	)
Deferred revenue and customer deposits		—			280,044
Net Cash Used in Operating Activities	$	(160,343	)	$	(139,809	)
Cash Flows from Financing Activities:
Proceeds from payments on notes receivable		—			130,000
Net (repayments to) proceeds from related parties		(40,538	)		160,370
Stockholder advances		160,370			—
Proceeds from the issuance of common stock and warrants		549,955			—
Payments on long-term debt		—			(11,494	)
Net Cash Provided by Financing Activities	$	509,417		$	160,370
Net Cash Provided by Financing Activities	$	160,370		$	118,506
Net change in cash	$	145,181		$	27
Effect of fluctuations in foreign currency exchange rates		—			(21,909	)
Cash at beginning of year		1,440			1,413
Net change in cash	$	27		$	(43,212	)
Cash at end of year	$	146,621		$	1,440
Cash at beginning of year		1,413			44,625
Cash at end of year	$	1,440		$	1,413
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—

NON CASH FINANCING TRANSACTIONS

During ~~2016~~2018, the Company ~~unwound~~issued ~~the~~an ~~STR~~aggregate ~~acquisition,~~total ~~which~~of ~~resulted~~9.13 inmillion ashares ~~reversal~~ of common stock, ~~additional~~to ~~paid-in~~several ~~capital~~consultants and ~~accumulated~~advisors ~~other~~in ~~comprehensive~~exchange ~~totaling~~for services to be rendered over a period of time. The total value of these services yet to be rendered as of December 31, 2018 is $148,~~641~~953,~~474~~ and is reflected as a prepaid expense in the accompanying consolidated balance sheets.

The accompanying notes are an integral part of these consolidated financial statements

F-5

~~AlphaPoint Technology~~LevelBlox, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

1. Nature of Operations and Significant Accounting Policies

Description of Business

LevelBlox, Inc., formerly known as AlphaPoint Technology, Inc., ~~(“AlphaPoint”~~principal ~~or,~~objective ~~collectively~~is to partner with ~~its~~innovative ~~subsidiaries,~~Blockchain ~~the~~technology ~~“Company”)~~focused ~~was~~companies ~~incorporated~~that are interested in pursuing growth through the ~~State~~public ofmarkets. ~~Delaware~~We onare ~~November~~developing ~~13,~~relationships ~~2008.~~with ~~AlphaPoint’s~~a ~~legacy~~portfolio of high-quality businesses and establishing a sustainable business ~~has~~model, ~~been~~to ~~helping~~achieve ~~companies~~superior ~~manage~~and ~~their~~sustainable ITfinancial ~~assets~~results.

~~In October 2015~~LevelBlox, ~~under~~is a ~~share~~developer ~~exchange~~of ~~agreement~~Software Asset Management (~~“SEA”~~SAM) ~~AlphaPoint~~applications ~~acquired~~for ~~100%~~the ofBlockchain. ~~the~~LevelBlox ~~outstanding~~has ~~equity~~developed ofa ~~Strategy~~patent-pending tosoftware ~~Revenue~~application ~~Ltd.~~called AssetCentral (~~“STR”~~AC). inThrough ~~exchange~~AssetCentral ~~for~~use ~~58,163,265~~cases ~~shares~~we ofhave ~~its~~identified ~~common~~the ~~stock~~growing complexity and ascope ~~promissory~~with ~~note~~the incurrent ~~the~~methodology ~~amount~~and tracking of ~~$900,000.~~Software ~~STR,~~Asset ~~Ltd~~Management licenses. ~~was~~LevelBlox’s ~~founded~~SAM inBlockchain ~~2009~~application will connect software entitlements to ~~provide~~their ~~revenue~~licenses ~~acceleration~~and ~~solutions~~components with the software decision makers, to ~~large~~drive ~~organizations~~automation ~~through~~with ~~the~~transparency ~~performance~~to ~~improvement~~reduce SAM content, effort, and ~~effective~~cost. ~~execution~~LevelBlox’s ofBlockchain auditing and compliance tool will assist companies with their ~~sales~~compliance ~~teams~~audits, internal controls, and best business practices.

~~Subsequently,~~LevelBlox ~~the~~has ~~parties to the SEA believe that the intended benefits have not~~ been ~~realized,~~selected ~~and agreed~~ to ~~unwind~~join the ~~transaction~~Oracle ~~and~~Scaleup ~~negotiated~~Ecosystem, and ~~finalized~~ the ~~terms~~Oracle ofCloud anInfrastructure ~~Unwind Agreement (the “Unwind”). The agreement became effective on May 31~~platform, ~~2016,~~utilizing ~~which essentially unwound~~ the ~~SEA.~~global ~~Pursuant to the Unwind~~resources, ~~all~~cloud ~~STR Shareholders surrendered their shares and rights in AlphaPoint and AlphaPoint conveyed to STR Shareholders all of its shares~~technology, ~~rights~~infrastructure and ~~ownership~~expertise ~~interest~~Oracle inhas ~~STR, subject~~ to ~~STR’s payment in full of a $130~~offer,~~000~~ promissory note. As a result of the Unwind, the Company has 58,163,265 fewer shares issued and outstanding. None of the STR Shareholders or their assignees owns any interest in AlphaPoint. In addition, the shareholders of STR agreed to forgive certain intercompany receivables due from AlphaPoint as ~~well as~~ the ~~notes~~company ~~payable~~moves ~~totaling~~into ~~$900,000~~its ~~issued~~next asphase ~~part~~ of ~~the original consideration in the SEA~~growth.

~~Consolidation~~Basis ~~and~~of Presentation

~~These~~In ~~consolidated~~the ~~financial~~opinion ~~statements~~of ~~are~~management, ~~prepared~~all inadjustments ~~conformity~~consisting ~~with~~of ~~U.S.~~normal ~~generally~~recurring ~~accepted~~adjustments ~~accounting~~necessary ~~principles~~for ~~(GAAP).~~a ~~The~~fair ~~preparation~~presentation of (a) the consolidated financial ~~statements,~~position ~~requires~~at ~~that~~December ~~management~~31, ~~make~~2018 ~~estimates~~ and ~~assumptions~~December ~~that~~31, ~~affect~~2017 ~~the reported amounts of assets~~ and ~~liabilities~~(b) ~~and disclosures of contingent assets and liabilities at~~ the ~~date of the~~ consolidated ~~financial~~ statements, ~~as well as reported amounts~~ of ~~revenues~~operations, and ~~expenses~~cash ~~during~~flows for the ~~reporting~~year ~~period.~~ended ~~Accordingly~~December 31, ~~actual~~2018 ~~results~~and ~~could~~2017 ~~differ~~have ~~from~~been ~~those estimates~~made.

~~All~~Application ~~subsidiaries~~of ~~are~~Critical ~~included~~Accounting inPolicies ~~our consolidated financial statements,~~ and ~~all~~Use ~~significant~~of ~~intercompany balances and transactions are eliminated during consolidation.~~Estimates

~~Discontinued~~The ~~Operations~~consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The application of GAAP requires management to make assumptions, judgments and estimates that affect our reported amounts of assets, liabilities, revenue and expenses, and the related disclosures regarding these items. We base the assumptions, judgments and estimates on historical experience and on various other factors that we believe to be reasonable under the circumstances. Actual results could differ significantly from these estimates under different assumptions or conditions. To the extent that there are material differences between these estimates and actual results, our future financial condition or results of operations will be affected. On a regular basis, we evaluate our assumptions, judgments and estimates.

AsWe abelieve ~~result~~that of the ~~STR~~assumptions, ~~Unwind~~judgments ~~transaction~~and ~~described~~estimates ~~above,~~involved ~~AlphaPoint~~in ~~deconsolidated~~ the ~~assets,~~accounting ~~liabilities,~~for ~~income,~~stock-based ~~and~~ expenses ofand ~~STR~~income ~~and~~taxes ~~presented~~have the ~~results~~greatest ofpotential ~~operations~~impact ofon ~~that~~our ~~entity~~consolidated asfinancial ~~discontinued~~statements. ~~operations~~These ~~and~~areas ~~excluded~~are ~~from~~key ~~the~~components ~~Company’s~~of ~~continuing~~our ~~operations~~results ~~for~~of ~~all~~operations ~~periods~~and ~~presented~~are inbased ~~the~~on ~~accompanying~~complex ~~consolidated~~rules ~~statements~~which ofrequire ~~comprehensive~~us ~~loss.~~to Amake ~~gain~~judgments onand ~~the~~estimates. ~~disposal~~Historically, ofour ~~STR~~assumptions, ~~was~~judgments ~~recognized~~and asestimates ~~the~~in ~~excess~~accordance ofwith ~~the~~our ~~consideration~~critical ~~issued~~accounting inpolicies ~~the~~have ~~Unwind~~not ~~over~~materially ~~the~~differed ~~carrying~~from ~~amount~~actual ~~of the net assets disposed~~results.

Foreign Currency Translation

Prior to the Unwind, translation gains and losses were reported as components of accumulated other comprehensive income (“AOCI”), included within stockholders’ equity. AOCI at May 31, 2016 is included as part of the gain on disposal of discontinued operations. Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of comprehensive loss as part of the loss from discontinued operations.

F-6

Fair Value Measurements

The Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The statement applies whenever other statements require or permit assets or liabilities to be measured at fair value.

At each balance sheet date, the Company performs an analysis of all instruments subject to fair value measurement. The Company applied ASC 820 for all non-financial assets and liabilities measured at fair value on a non-recurring basis. As of December 31, ~~2017~~2018 and ~~2016~~2017 the fair values of the Company’s financial instruments approximate their historical carrying amount.

F-6

Cash and Cash Equivalents

Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less when purchased which are readily convertible to cash.

Accounts Receivable, Credit

Accounts receivable consist of amounts due for the delivery of service offerings to customers. An allowance for doubtful accounts is established for any amounts that may not be recoverable, which is based on an analysis of the Company’s customer credit worthiness, and current economic trends. Receivables are determined to be past due, based on payment terms of original invoices. Charge-offs of accounts receivable are made once all collection efforts have been exhausted. The Company does not typically charge interest on past due receivables.

Identifiable Intangible Assets

Intangible assets consist of trademarks, domain names, revenue acceleration platforms, advertising and supply contracts, and customer relationships acquired in a business combination. The cost of these assets is amortized under the straight-line method over their respective useful lives. Trademarks and domain names are amortized over a useful life of 10 years, while the remaining intangible assets are amortized over 5 years. AlphaPoint’s intangible assets were fully amortized as of December 31, 2017.

Business Combinations

The Company follows the acquisition method to account for business combinations. This method requires that when the Company (acquirer) takes control of another entity, the fair value of the underlying exchange transaction is used to establish a new accounting basis of the acquired entity. Furthermore, because obtaining control leaves the Company responsible and accountable for all of the acquiree’s assets, liabilities and operations, the Company recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained.

Impairment of Long-lived assets and intangible property

Share-based payments

Share-based payments to employees and non-employees, including grants of employee stock options or shares of stock are recognized as ~~compensation~~ expense in the financial statements based on their fair values~~, in accordance with FASB ASC Topic 718~~. That expense is recognized over the period during which anservices ~~employee~~are isprovided ~~required to provide services~~ in exchange for the award~~, known as the requisite service period (usually the vesting period)~~.

F-7

The Company may issue restricted stock to consultants for various services. Cost for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is to be measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete.

We use the Black-Scholes option pricing model to determine the estimated fair value of warrants issued in connection with stock.

Revenue recognition

~~Revenue~~The isCompany ~~generally~~recognizes ~~recognized~~revenue ~~when~~under the core principle to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

•Software ~~Evidence~~Development ~~of an arrangement exists; • Delivery has occurred; • Fees are fixed or determinable; and • Collection is considered probable.~~Costs

~~Most~~The ~~of the~~ Company’s ~~revenues~~accounts ~~are~~for ~~generated from~~ software~~-as-a-service~~ ~~(“SaaS”)~~development ~~subscription~~costs ~~offerings~~in ~~and~~accordance ~~related~~with ~~product~~several ~~support~~accounting ~~and~~pronouncements, ~~maintenance;~~including ~~and~~FASB ~~consulting~~ASC ~~services~~730, ~~billed~~Research ~~on a time~~ and ~~materials~~Development ~~basis. SaaS revenues stem mainly from annual subscriptions~~ and ~~are~~FASB ~~recorded~~985-20, ~~evenly~~Costs ~~over the term~~ of ~~the~~Computer ~~subscription.~~Software ~~Any~~to ~~customer~~be ~~payments~~Sold, ~~received~~Leased, inor ~~advance are deferred until they are earned~~Marketed. ~~Consulting and training revenues are recognized as work is performed.~~

~~For~~• ~~revenue~~Costs ~~stemming~~incurred ~~from~~during ~~project~~the ~~work~~period of planning and design, prior to the ~~Company~~period ~~recognizes~~determining ~~revenue~~technological feasibility, for all software developed for use internal and external, has been charged to operations in the ~~extent~~period ofincurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development. ~~All~~• ~~profit~~The isCompany ~~recognized~~may atcapitalize costs incurred in the ~~end~~development of ~~each~~our ~~project~~proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility is determined and prior to our marketing and initial sales.

At December 31, 2018, no software development costs had been capitalized.

Research and Development

The Company expenses research and development costs when incurred. Research and development costs include engineering, programmer costs and testing of product and outputs. Indirect costs related to research and development are allocated based on percentage usage to the research and development. The Company incurred $0224,334 and $~~3,000~~0 in research and development costs for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively, and are included in the loss from ~~continuing~~ operations ~~and discontinued operations, respectively~~.

Income taxes

The Company accounts for income taxes under the liability method. Deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. A valuation allowance may be applied against the net deferred tax due to the uncertainty of its ultimate realization.

Deferred tax assets have been fully offset by a valuation allowance, because at this time the Company believes that it is more likely than not that the future tax benefit will not be realized as the Company has a history of net operating losses.

F-7

Earnings (loss) per share

Basic earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares outstanding during the year. Diluted earnings (loss) per share calculations are determined by dividing net income by the weighted average number of shares plus any potentially dilutive shares. The Company does not have any potentially dilutive instruments and, thus, anti-dilution issues are not applicable.

Risks and concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk include cash in banks in excess of federally insured amounts. The Company manages this risk by maintaining all deposits in high quality financial institutions.

F-8

2. Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has a history of losses resulting in an accumulated deficit. The Company has been dependent on financing from its majority shareholder and related parties to meet its operating obligations. In view of these matters, there is substantial doubt regarding the Company’s ability to continue as a going concern, which is dependent upon the Company’s ability to identify revenue sources and to achieve a level of profitability. The Company intends on financing its future development activities, marketing plan and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

3. Recent Accounting Pronouncements

We have reviewed the FASB issued Accounting Standards Updates (“ASU”) and interpretations thereof that have effectiveness dates during the periods reported and in future periods.

In ~~August~~February 2016, the FASB issued ASU No. 2016-1502, “~~Statement~~Leases”. This ofstandard ~~Cash~~requires ~~Flows~~the ~~(Topic~~lessee ~~230):~~to ~~Classification~~recognize ofvirtually ~~Certain~~all ~~Cash~~of ~~Receipts~~their ~~and~~leases ~~Cash Payments”, which provides guidance~~ on ~~specific~~the ~~cash~~balance ~~flow~~sheet, ~~issues~~by ~~with~~recording ~~the~~a ~~objective~~ right-of-use ~~reducing~~asset ~~diversity in practice in how certain cash receipts~~ and ~~cash~~lease ~~payments~~liability. Public ~~are~~business ~~presented~~entities inwill ~~the~~be ~~statement~~required ofto ~~cash~~adopt ~~flows. ASU~~this ~~2016-15~~standard ~~is effective~~ for ~~annual~~fiscal ~~reporting periods beginning after December 15~~years, ~~2017~~ and interim periods within those fiscal years, ~~with~~beginning ~~early~~after ~~adoption~~December ~~permitted~~15, 2018. Early ~~The~~adoption ~~Company~~is ~~elected~~permitted toupon ~~early~~issuance ~~adopt~~of this ~~ASU~~standard. The inCompany ~~the~~is ~~quarter~~currently ~~ended~~assessing ~~September~~the ~~30,~~impact ~~2016. There~~of ~~have~~the ~~been~~new nostandard ~~changes~~ in ~~our~~order ~~reported~~to ~~statements~~determine ofthe ~~cash~~impact ~~flows~~on ~~as a result of~~ the ~~adoption~~consolidated offinancial ~~ASU 2016-15~~statements.

In ~~April~~May ~~2016~~2014, the FASB issued ASU No. ~~2016~~2014-09, “~~Compensation~~Revenue -from ~~Stock~~Contracts ~~Compensation~~with Customers (Topic ~~718~~606):” ~~Improvements~~that tosupersedes ~~Employee~~most ~~Share-Based~~current ~~Payment~~revenue ~~Accounting~~recognition guidance, including industry-specific guidance.” The ~~updated~~core principle of the new guidance ~~simplifies~~is ~~several~~that ~~aspects~~an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the ~~accounting~~consideration to which the entity expects to be entitled in exchange for ~~share~~those goods or services. The standard provides a five-~~based~~step ~~payment~~analysis ~~award~~of transactions, ~~including:~~to ~~(a)~~determine ~~income~~when ~~tax~~and ~~consequences;~~how ~~(b)~~revenue ~~classification~~is ofrecognized. ~~awards~~Other asmajor ~~either~~provisions ~~equity~~include orthe ~~liabilities;~~capitalization and ~~(c)~~amortization ~~classification~~of oncertain contract costs, ensuring the ~~statement~~time value of ~~cash~~money ~~flows. The~~is ~~amendment~~considered toin the ~~standard~~transaction ~~became~~price, ~~effective~~and ~~for~~allowing ~~annual~~estimates ~~periods~~of ~~beginning~~variable ~~after~~consideration ~~December~~to 15be recognized before contingencies are resolved in certain circumstances. Additionally, ~~2016~~the guidance requires disaggregated disclosures related to the nature, amount, timing, and ~~interim~~uncertainty ~~periods~~of ~~within~~revenue ~~those~~that ~~annual~~is ~~periods~~recognized. ~~Early~~ ~~adoption~~The ~~was~~amendments ~~permitted~~were ~~for~~adopted ~~any~~by ~~interim~~the Company on January 1, 2018. Transition to the new guidance may be done using either a full or ~~annual~~modified ~~period~~retrospective method. ~~The~~ As the Company currently has ~~determined~~not ~~that~~realized ~~the~~revenues during 2018 or 2017, there is no impact onrelated ~~its~~to ~~consolidated~~the ~~financial~~adoption ~~statements~~of ~~was~~this ~~immaterial~~standard for the periods presented.

~~In February 2016, the FASB issued ASU No~~4. 2016-02, “Leases”. This standard requires the lessee to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. Public business entities will be required to adopt this standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted upon issuance of this standard. The new leasing standard requires modified retrospective transition, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently assessing the impact of the new standard in order to determine the impact on the consolidated financial statements. Equity

InOn ~~January 2016~~April 13, 2018, the ~~FASB~~Board ~~issued~~of ~~ASU~~Directors ~~No.~~approved ~~2016-01,~~a ~~“Financial~~Board ~~Instruments~~resolution ~~- Overall~~to ~~(Subtopic~~issue ~~825-10):~~250,000 ~~Recognition~~shares ~~and~~of ~~Measurement~~common ofstock ~~Financial~~to ~~Assets~~James ~~and~~Whelan, ~~Financial~~Chief ~~Liabilities.”~~Technology ~~The~~Officer, ~~updated~~which ~~guidance~~is ~~enhances~~comprised ~~the~~of ~~reporting~~a ~~model~~signing ~~for~~bonus ~~financial~~and ~~instruments,~~compensation ~~which~~in ~~includes~~lieu ~~amendments~~of tosalary ~~address~~from ~~aspects~~the start of ~~recognition,~~his ~~measurement,~~employment ~~presentation~~with ~~and~~the ~~disclosure.~~Company ~~The~~until ~~amendment~~the totime of the ~~standard~~equity isfinancing ~~effective~~that ~~for~~was ~~the~~completed ~~Company~~in ~~beginning~~May on2018 ~~June~~(see 1,discussion ~~2018~~below). The ~~While~~fair ~~the~~value ~~Company~~of isthese ~~currently~~shares ~~assessing~~was ~~the~~determined ~~impact~~based ofon ~~the~~Mr. ~~new~~Whelan’s ~~standard,~~annual itsalary ~~does~~prorated ~~not~~over ~~expect~~the ~~this~~service ~~new~~period ~~guidance~~covered toby ~~have~~this anon-cash ~~material~~compensation. The ~~impact~~resulting onstock-based ~~its~~compensation ~~consolidated~~expense ~~financial~~was ~~statements~~approximately $51,000.

~~In November 2015, the FASB issued ASU No. 2015~~F-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. The new guidance became effective for the Company beginning on January 1, 2017, with early adoption permitted. The standard may be adopted prospectively or retrospectively to all periods presented. The Company determined that adoption of this guidance does not have a material impact on the Company’s consolidated financial statements.8

InOn ~~August~~April ~~2015~~14, 2018 the ~~FASB~~Board ~~issued ASU No. 2015-15 “Interest—Imputation~~ of ~~Interest~~Directors ~~(Subtopic~~approved ~~835-30):~~a ~~Presentation~~Board ~~and~~resolution ~~Subsequent~~to ~~Measurement~~issue ofan ~~Debt~~aggregate ~~Issuance~~total ~~Costs Associated with Line-~~of~~-Credit~~ ~~Arrangements”~~7,700,000 ~~which~~shares ~~requires~~of ~~debt~~common ~~issuance~~stock ~~costs~~ to beAmerican ~~presented~~Capital inVentures ~~the~~and ~~balance~~Leone ~~sheet~~Group, asLLC a(3,850,000 ~~deduction~~to ~~from~~each ~~the~~party) ~~carrying~~in ~~value~~exchange ~~of the associated debt liability. The FASB further clarified that~~ for ~~line-of-credit~~consulting ~~arrangements~~services anrelated ~~entity can continue~~ to ~~defer~~capital ~~and~~raise ~~present~~efforts, ~~debt~~legal ~~issuance costs as an asset~~ and ~~subsequently~~compliance ~~amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement~~guidance, ~~regardless~~and ofstrategic ~~whether~~business ~~there~~planning. The ~~are~~service ~~any~~period ~~outstanding~~covered ~~borrowings~~in on the ~~line-of-credit~~respective ~~arrangement.~~consulting ~~The~~agreements ~~new~~ended ~~guidance~~in ~~should~~August ~~be applied on a retrospective basis~~2018. The ~~adoption~~resulting expense of ~~this~~$539,000 ~~standard~~is ~~did~~included ~~not~~in ~~have~~professional afees ~~material~~in ~~impact on~~ the ~~Company’s~~ consolidated ~~financial~~statement ~~statements~~of operations.

On May 7, 2018, the Company received cash totaling $100,000 from four investors in exchange for an aggregate total of 4,200,000 shares of the Company’s common stock and warrants to purchase an aggregate total of 4,000,000 shares of the Company’s common stock. The warrants have a term of 3 years from the date of issuance and an exercise price of $0.10 per share. The proceeds were allocated among the shares and the warrants based on their relative fair values. The fair value of the shares was determined using the closing price of the Company’s common stock on the transaction date ($0.07 per share). The fair value of the warrants was determined using the Black Scholes Merton option-pricing model, assuming stock price volatility of 174% and a risk-free interest rate of 2.67%. Approximately $55,000 and $45,000 was allocated to the shares and the warrants, respectively. As the warrants are classified as equity instruments, the resulting allocation is deemed a dividend on the shares issued and is reflected in additional paid-in capital in the consolidated balance sheet.

On May 23, 2018, the Company received cash totaling $250,000 from one investor in exchange for an aggregate total of 4,950,000 shares of the Company’s common stock and warrants to purchase an aggregate total of 9,000,000 shares of the Company’s common stock. As a condition of the closing, the Company issued an additional 1,100,000 shares of common stock to a non-profit organization named by the investor. The warrants have a term of 3 years from the date of issuance and an exercise price of $0.10 per share. The proceeds were allocated among the total number of shares issued (6,050,000) and the warrants based on their relative fair values. The fair value of the shares was determined using the closing price of the Company’s common stock on the transaction date ($0.06 per share). The fair value of the warrants was determined using the Black Scholes Merton option-pricing model, assuming stock price volatility of 174% and a risk-free interest rate of 2.67%. Approximately $111,000 and $139,000 was allocated to the shares and the warrants, respectively. As the warrants are classified as equity instruments, the resulting allocation is deemed a dividend on the shares issued and is reflected in additional paid-in capital in the consolidated balance sheet.

On June 15, 2018, the Company issued 500,000 shares of common stock to an Advisory Board Member for services to be rendered in the future. The fair value of these shares was determined based on the closing stock price on that date ($0.11). The resulting stock-based compensation totaled $55,000, of which $27,500 was expensed and included in professional fees in the consolidated statement of operations. The remaining balance of $27,500 is reflected in prepaid expenses and other current assets in the consolidated balance sheet and will be expensed over the remaining service period of nine months.

On July 5, 2018, the Company issued a total of 180,000 shares of common stock to two executive recruitment firms (90,000 shares to each party) in exchange for services valued at an aggregate amount of $36,000. This amount is included in general and administrative expenses in the consolidated statement of operations.

On July 24, 2018 the Company issued 200,000 shares of common stock to a vendor as partial consideration for software development services. The shares were valued at $0.11 per share for a total expense of $22,000, which is included in research and development costs in the consolidated statement of operations.

On July 25, 2018 the Company issued 250,000 shares of common stock to a new member of the Board of Directors. The shares were valued at $0.06 per share for a total expense of $15,000, of which $6,534 is included in professional fees in the consolidated statement of operations. The remaining balance of $8,466 is included in prepaid expenses and other current assets in the consolidated balance sheet and will be expensed over the remaining service period of approximately seven months.

On August 20, 2018, the Company issued 250,000 shares of common stock to an Advisory Board Member for services to be rendered in the future. The fair value of these shares was determined based on the closing stock price on that date ($0.04). The resulting stock-based compensation totaled $10,000, of which $3,671 was expensed and included in professional fees in the consolidated statement of operations. The remaining balance of $6,329 is reflected in prepaid expenses and other current assets in the consolidated balance sheet and will be expensed over the remaining service period of approximately eight months.

On October 18, 2018, the Company issued 250,000 shares of common stock to an Advisory Board Member for services to be rendered in the future. The fair value of these shares was determined based on the closing stock price on that date ($0.04). The resulting stock-based compensation totaled $10,000, of which $3,342 was expensed and included in professional fees in the consolidated statement of operations. The remaining balance of $6,658 is reflected in prepaid expenses and other current assets in the consolidated balance sheet and will be expensed over the remaining service period of approximately seven months.

F-9

InOn ~~May~~November ~~2014~~20, 2018, the ~~FASB~~Company ~~issued~~received ~~ASU~~cash ~~No.~~totaling ~~2014-09~~$199,955 ~~“Revenue~~ from ~~Contracts~~two ~~with~~investors ~~Customers~~in ~~(Topic~~exchange ~~606)”~~for ~~that~~an ~~will~~aggregate ~~supersede~~total ~~most~~of ~~current revenue recognition guidance~~4,950,000 ~~including~~shares ~~industry-specific guidance. The core principle~~ of the ~~new~~Company’s ~~guidance~~common isstock ~~that~~and anwarrants ~~entity~~to ~~will~~purchase ~~recognize~~an ~~revenue~~aggregate tototal ~~depict~~of ~~the~~4,500,000 ~~transfer~~shares of ~~promised~~the ~~goods~~Company’s orcommon ~~services~~stock. The towarrants ~~customers~~have ina anterm ~~amount~~of ~~that~~3 ~~reflects~~years ~~the~~from ~~consideration to which~~ the ~~entity~~date ~~expects~~of toissuance beand ~~entitled~~an inexercise ~~exchange~~price ~~for~~of ~~those~~$0.07 ~~goods~~per ~~or services~~share. The ~~standard~~proceeds ~~provides~~were aallocated ~~five-step~~among ~~analysis~~the oftotal ~~transactions~~number toof ~~determine~~shares ~~when~~issued and ~~how~~the ~~revenue~~warrants isbased ~~recognized.~~on ~~Other~~their ~~major~~relative ~~provisions~~fair ~~include~~values. The ~~the~~fair ~~capitalization~~value ~~and amortization~~ of ~~certain~~the ~~contract~~shares ~~costs,~~was ~~ensuring~~determined using the ~~time~~closing ~~value~~price of ~~money~~the isCompany’s ~~considered~~common instock on the transaction ~~price,~~date ~~and~~($0.05 ~~allowing~~per ~~estimates~~share). The offair ~~variable~~value ~~consideration~~of tothe bewarrants ~~recognized~~was ~~before~~determined ~~contingencies~~using ~~are~~the ~~resolved~~Black inScholes ~~certain~~Merton ~~circumstances.~~option-pricing ~~Additionally~~model, ~~the~~assuming ~~guidance~~stock ~~requires~~price ~~disaggregated~~volatility ~~disclosures~~of ~~related~~176% toand ~~the~~a ~~nature,~~risk-free ~~amount,~~interest ~~timing~~rate of 2.88%. Approximately $108,000 and ~~uncertainty~~$92,000 ofwas ~~revenue~~allocated ~~that~~to isthe ~~recognized~~shares and the warrants, respectively. As ~~The~~the ~~amendments~~warrants are ~~required~~classified toas beequity ~~adopted~~instruments, by the ~~Company~~resulting onallocation ~~January~~is 1,deemed ~~2018.~~a ~~Transition~~dividend toon the ~~new~~shares ~~guidance~~issued ~~may~~and beis ~~done~~reflected ~~using~~in ~~either~~additional apaid-in ~~full~~capital orin ~~modified~~the ~~retrospective~~consolidated ~~method.~~balance sheet. The ~~Company~~shares iswere ~~currently~~not ~~evaluating~~issued ~~the~~until ~~full~~January ~~effect~~of ~~that~~2019, ~~the~~and ~~adoption~~accordingly ofare ~~this~~not ~~standard~~reflected ~~will~~as ~~have~~issued onand ~~the~~outstanding ~~Company’s~~at ~~consolidated~~December ~~financial~~31, ~~statements~~2018.

45. ~~Discontinued~~ ~~Operations~~Related Party Transactions

As a result of the Unwind described in Note 1, AlphaPoint deconsolidated the assets, liabilities, income, and expenses of STR and recorded the results of operations of that entity as discontinued operations in the accompanying consolidated statements of operations. A gain on the disposal of STR was recognized as the excess of the consideration received in the Unwind over the carrying amount of the net assets disposed. The Company followed the guidance in ASC 205-20, Discontinued Operations; ASC 810-10-40, Consolidation – Derecognition; ASC 845, Nonmonetary Transactions; as well as the SEC’s interpretive guidance on discontinued operations, spin-offs, and divestitures.

As a result of this transaction, the Company wrote off the net assets of STR, which had a carrying value on the effective date of the Unwind of $2,494,211 and accumulated other comprehensive loss related to cumulative translation adjustments of $191,864. Consideration received in the Unwind consisted of: (a) $130,000 note receivable, (b) $410,660 intercompany payables to STR forgiven, (c) $900,000 notes payable forgiven, and (d) $1,744,898 fair value of the shares reacquired by AlphaPoint; for a total consideration received of $3,185,558. The resulting gain on disposal was $499,485, which is reflected in discontinued operations in the accompanying consolidated statements of operations. The fair value of the shares reacquired was approximately $0.03 per share, which was the closing price of the stock on May 31, 2016.

Below is a presentation of the results from the STR business included in the net loss from discontinued operations:

	Year ended December 31, 2016
Revenues	$	1,278,820
Cost of Revenues		382,588
Gross Profit		896,232
Operating expenses:
Compensation		807,158
Research and Development		14,488
Professional Fees		147,386
General and Administrative		357,959
Foreign Currency Transaction Gain		(35,259	)
Depreciation and Amortization		274,909
Total Operating Expenses		1,566,641
Interest expense		(4,217	)
Net loss from discontinued operations	$	(674,626	)

F-10

The following table provides the total operating and financing cash flows of the discontinued operations included in the accompanying consolidated statement of cash flows:

	Year ended December 31, 2016
Cash flows from discontinued operating activities:
Net loss from discontinued operations	$	(674,626	)
Adjustments to reconcile Net Loss to net cash used by operating activities:
Depreciation and amortization		274,909
Foreign currency exchange gain		(15,615	)
Changes in assets and liabilities:
Employee advances		(25,958	)
Accounts receivable		211,732
Accounts payable and accrued expenses		144,153
Deferred revenue		282,280
Other current assets		24,932
Other non-current liabilities		22,245
Net Cash Used by Operating Activities	$	244,052
Cash flows from investing activities:
Cash received in the acquisition of STR	$	—
Purchases of property and equipment		—
Net Cash Provided by Investing Activities	$	—
Cash flows from financing activities:
Repayments of long-term debt	$	(11,494	)
Net proceeds from long-term debt		—
Net Cash Used by Financing Activities	$	(11,494	)

5. Income Taxes

The Company has not recognized any income tax expense or benefit for the years ended December 31, 2017 and 2016. The Company has a net operating loss (NOL) carryforward of approximately $2.3 million at December 31, 2017 ($1.9 million at December 31, 2016) which has been offset in its entirety by a valuation allowance due to the uncertainty of realization.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the carryforward period.

On December 22, 2017, the 2017 Tax Act was signed into law. One of the provisions of the 2017 Tax Act reduced the corporate federal income tax rate from 35% to 21% effective January 1, 2018. The Tax ACT also limits the annual amount of NOL that can be used to offset taxable income and extends the carryforward period indefinitely. The Company has not recognized a benefit from the Tax Act.

6. Related Party Transactions

Advances from Shareholders

In support of the Company’s efforts and cash requirements, it has historically relied upon advances from related parties. At December 31, ~~2017~~2018 and ~~2016~~December 31, 2017, advances from shareholders totaled $~~214~~173,~~132~~594 and $53214,~~762~~132, respectively. These advances are non-interest bearing with no set repayment terms.

Additionally, at December 31, ~~2017~~2018 and ~~2016~~December 31, 2017, the Company had accrued compensation payable to ~~Gary~~the ~~Macleod~~Principal Executive Officer in the amount of $~~430~~664,~~100~~700 and $~~195~~430,~~500~~100, respectively.

~~F-11~~6. Income Taxes

7The Company has not recognized any income tax expense or benefit for the years ended December 31, 2018 and 2017. ~~Equity~~ The Company has a net operating loss (NOL) carryforward of approximately $3.1 million at December 31, 2018 ($2.3 million at December 31, 2017) which has been offset in its entirety by a valuation allowance due to the uncertainty of realization.

~~The~~In ~~total~~assessing ~~number~~the ofrealizability ~~shares~~ of ~~capital~~deferred ~~stock~~tax ~~which~~assets, ~~the~~management ~~Company~~considers ~~shall~~whether ~~have~~it ~~authority to issue~~ is ~~five~~more ~~hundred~~likely ~~million~~than ~~(500,000,000)~~not ~~common~~that ~~shares~~some ~~with~~portion aor ~~par~~all ~~value~~ of ~~$0.01,~~the ofdeferred ~~which~~tax ~~77,413,259~~assets ~~have~~will ~~been~~not ~~issued~~be realized. The ~~Company~~ultimate ~~intends~~realization toof ~~issue~~deferred ~~additional~~tax ~~shares~~assets inis andependent ~~effort~~upon tothe ~~raise~~generation ~~capital~~of tofuture ~~fund~~taxable ~~its~~income ~~operations. Common~~during ~~shareholders~~the ~~have~~carryforward ~~one vote for each share held~~period.

No holder of shares of stock of any class is entitled, as a matter of right, to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock of any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend7. Commitments

~~There~~The ~~are~~Company noentered ~~preferred~~into ~~shares~~a ~~authorized~~month orto ~~outstanding~~month rental agreement for its office facilities in Sarasota Florida. No The ~~warrants~~Company oris ~~options~~currently making rent payments on a month-to-month ~~purchase~~basis. ~~stock~~The ~~have~~rental ~~been~~agreement ~~issued~~calls orfor ~~outstanding~~monthly payments of rent of $1,881 plus the costs of utilities and maintenance to the facilities. Rent expense for the years ended December 31, 2018 and 2017 for the facility in Sarasota Florida was $37,000 and $25,000, respectively.

8. ~~Commitments~~Contingencies

The Company entered into a month to month rental agreement for its office facilities in Sarasota Florida, expiring on February 28, 2013. Accordingly, the Company is currently making rent payments on a month-to-month basis. The rental agreement calls for monthly payments of rent of $2,651 plus the costs of utilities and maintenance to the facilities. Rent expense for the years ended December 31, 2017 and 2016 for the facility in Sarasota Florida was $25,087and $30,104, respectively.

9. Contingencies

Some of the officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts. In addition, officers and certain members of upper management have executed employment agreements with the Company, which include, among other things, bonuses contingent on the achievement of certain performance targets and provisions for severance payments in the event of termination without cause.

Litigation

109. Subsequent events

Management has evaluated subsequent events that occurred through the date of this report that would have a material impact on our financial statements. ~~Based on the evaluation, management did not identify any subsequent events that would require adjustment or disclosure in the accompanying consolidated financial statements.~~

F-1210

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

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) ~~and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer),~~ of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO ~~and CFO, as appropriate,~~ to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control Over Financial Reporting.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, ~~2016~~2018. The framework used by management in making that assessment was the criteria set forth in the document entitled ” Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of December 31, ~~2017~~2018, the Company’s internal control over financial reporting was not effective for the purposes for which it is intended, due to a material weakness related to the lack of an audit committee.

Management intends to give consideration to adopting a more rigorous corporate governance, including the formation of an audit committee ~~during~~in ~~2018~~the future.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

ITEM 9B. OTHER INFORMATION

None.

- 13 -

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Our executive officers and directors and their ages as of March 2729, ~~2016~~2019 is as follows:

NAME AND ADDRESS	AGE	POSITION(S)
Gary Macleod 6114 Glen Abbey Lane Bradenton, FL 34202	5455	Co-Founder/Chief Executive Officer and member of the Board of Directors and Director of STR Inc.
Paul Lee Avery 88 Mohican Road Blairstown, NJ 07805	75	Co-Founder/Consultant and member of the Board of Directors
Moishe Gubin 5683 North Lincoln Avenue Chicago, IL 60659	41	Member of the Board of Directors
John Peter Satta 176 Stillwater Road Hardwick, NJ 07825	5860	Co-Founder/Consultant and member of the Board of Directors
Kimberly March-Crew 991 Smithbridge Road Glen Mills, PA 19342	52	Member of the Board of Directors
Peter Breen 35 Amherst Drive Basking Ridge, NJ 07920	5153	Member of the Board of Directors
Katya Fisher 77 Water Street, 8th Floor New York, NY 10005	35	Member of the Board of Directors

Set forth below is a brief description of the background and business experience of our executive officers and directors for the past five years.

Gary Macleod, Chief Executive Officer and Member of the Board of Directors

Since November 2008, Mr. Gary Macleod, the Chief Executive Officer and director of ~~AlphaPoint Technology~~LevelBlox, Inc., has played a key leadership role in translating technical information and new technologies into compelling value propositions to drive customer endorsement and sell-through models for evolving IT Asset Management software solutions. From August 2005 to January 2008, Mr. Macleod was the Chief Executive Officer and director of Non-Invasive Monitoring Systems, Inc. He was responsible for raising capital to ensure organizational survival, steering product introduction efforts, navigating FDA approval activities, filing comprehensive and required publicly-held organization financial reports, overseeing entire program lifecycle including 510K submission proceedings, identifying market demographics, developing long-term business plans, establishing a distributor base, strengthening stakeholder confidence, and restructuring the organization.

Gary Macleod has been involved with the software industry for over twenty-five years. Mr. Macleod brings diversified leadership expertise to information technology and the software sector. He has career successes steering start-up and organizational growth initiatives for dynamic enterprises and technologically sophisticated solutions, products, and services. Mr. Macleod has broad-based expertise spanning information technology, revenue expansion, capital funds generation, market share growth, team building, operations, administration, general management, and finance.

Paul Avery, Co-founder, Consultant, and Member of the Board of Directors

Paul Avery has been with AlphaPoint Technology since its inception in January 2003 and has more than 28 years of computer technology experience, specializing in communications, process documentation and data access. In recent years, he has been dedicated to bringing order out of the pervasive IT infrastructure chaos plaguing enterprises of all kinds. Mr. Avery has demonstrated a profound grasp of the issues of IT management and provided unique insight in developing critical solutions in the field. It was his vision and concepts upon which AlphaPoint Technology was founded. His innovative approach to IT Asset Management (ITAM) led to the conception and development of ground breaking software and service products that have revolutionized the prospects of enterprise ITAM success.

- 14 -

Paul Avery has over twenty years’ experience in the enterprise software market including: data acquisition, product installation, database services, training, and support. Mr. Avery has experience in best practices and documentation in enterprise architecture including: guiding principles, strategy models, conceptual models and capability models. Mr. Avery’s experience includes desktop migration to Microsoft Windows Vista, implementing a System Center Configuration Manager (SCCM) system for the delivery of (push) deployment of project related deployments and infrastructure reconfiguration and consolidation.

John Satta, Co-founder, Consultant, and Member of the Board of Directors

John Satta has been with AlphaPoint Technology since April 2003 and has nearly 30 years’ experience as a design engineer, manager and executive in the defense, electronics and consulting industries. A patent holder in advanced computer architecture, in 1984 Mr. Satta was Co-founder and VP of Engineering of Oryx Corporation, producer of compact high-speed real-time signal processors for military and industrial applications. He started his career designing electronics for various defense contractors. Then he co-founded Oryx Corporation and led a small team that designed and built the then-fastest fully programmable digital signal processing system. Mr. Satta then consulted on system design for several large projects including the USAF F-22 advanced tactical fighter and the USN New Attack Submarine.

John Satta has over twenty-five years’ experience in the enterprise software and hardware sectors. Mr. Satta is a seasoned business analyst / project manager with broad experience in online software development, documentation and marketing. Mr. Satta’s experience also includes requirements elicitation for product development using JAD sessions, case models, static and active wireframes and requirements documents. Mr. Satta is a seasoned veteran of the software development lifecycle using traditional waterfall and Agile methods including Scrum and has experience with UML and RUP.

Kimberly March-Crew, Member of the Board of Directors

Kimberly March-Crew is the President and CEO of Lighthouse Venture Management which she has grown from a one-woman firm, running one business with two clients and a few hundred thousand in billings, to the present multi-company group that enjoys combined annual revenues in excess of 15 million dollars. Lighthouse Venture Management is a conglomerate comprised of a venture capital investment firm (Lighthouse Venture), an information technology support firm (Absolute Computer Support), a professional employee staffing firm (CSS Staffing), and a mobile computing firm (Computer Systems & Solutions). Since she formed Lighthouse Venture Management in 1990, it has grown.

Ms. Crew has over fifteen years’ experience in the enterprise hardware sector. She is a successful serial entrepreneur developing businesses that achieve outstanding results in crowded verticals. Leveraging her early experiences, Ms. Crew has managed to create a portfolio of companies that continue to grow even in the face of economic headwinds. Her specialty is insightful business assessment with clarification of goals, execution and the resources to implement action plans.

Peter Breen, Member of the Board of Directors

Mr. Breen, General Manager and Business Owner of Broadridge Financial Solutions (NYSE: BR), is responsible for all day-to-day operations, overall management, growth and innovation for the Corporate Issuer Solutions division within Broadridge. Broadridge is a $2.4BN NYSE Company with 6,000 employees worldwide. Prior to his arrival at Broadridge, Mr. Breen served as a Managing Director at The Bank of New York-Mellon (NYSE: BK) and oversaw all business development for BNY Mellon’s Shareowner Services business, and served as a member of the Senior Management Team of that business unit. Additionally, Mr. Breen also had the distinct pleasure and honor of serving on BNY Mellon’s Revenue Growth Board, a permanent body of 22 officers, reporting directly to the CEO and Executive Committee. The Board was formed to oversee all revenue related efforts across the entire enterprise.

Mr. Breen studied Economics at Marion Military Institute and The University of Maine. He received his Commission as an Infantry Officer in the United States Army and earned his Airborne Wings as an Army Paratrooper.

~~OTHER~~Katya ~~DIRECTORSHIPS~~Fisher, Esq. Member of the Board of Directors

MrKatya Fisher, Esq. ~~Macleod~~focuses ~~served~~on asrepresenting ainternational ~~Board~~businesses ~~Member~~and ~~(Director)~~entrepreneurs ofwith ~~Non-Invasive~~a ~~Monitoring~~specific ~~Systems,~~focus ~~Inc.,~~on amedia ~~publicly~~and ~~traded~~technologies ~~Company,~~such ~~from~~as ~~November~~blockchain, ~~2005~~cybersecurity, tocryptocurrency ~~January~~and ~~2008~~A. MrI. ~~Macleod~~Katya ~~resigned~~is ~~from~~a member of the ~~Board~~board inof ~~January~~directors ~~2008.~~of NoLevelblox ~~other~~(OTC:LVBX), ~~AlphaPoint~~a ~~Technology~~speaker, ~~Inc.~~emcee, ~~Board~~and ~~members~~co-organizer ~~have~~of ~~had~~various ~~any~~tech ~~Board~~and ~~affiliations~~blockchain orevents ~~have~~and ~~served~~conferences asand is an Ambassador for Women’s Entrepreneurship Day. Katya is a ~~director~~member and former chair of athe ~~U.S.~~Young ~~publicly~~Friends ~~traded~~of ~~company~~the Hermitage Museum Foundation.

A graduate of New York University and Benjamin N. Cardozo School of Law, Katya is a former Howard M. Squadron Fellow at the University of Oxford’s Programme in Comparative Media Law and Policy and has been selected to Super Lawyers as a “Rising Star” in Corporate Law in 2014, 2015, 2016, 2017 and 2018. She is licensed in the state of New York and before the U.S. Tax Court.

Katya has represented numerous high profile entrepreneurs and celebrities in U.S. immigration matters and in 2016 won a USCIS appeal, Matter of Y-S, on behalf of her client.

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Moishe Gubin Member of the Board of Directors

Moishe Gubin, has served as a Director of Optimum Bank since March 2010. Mr. Gubin is Chief Executive Officer of Strawberry Fields REIT, a real estate holding company, which owns properties in multiple states, and owns many other businesses.

Mr. Gubin graduated from Touro Liberal Arts and Science College, in New York, New York, with a BS in Accounting and Information Systems and a Minor in Jewish Studies. Mr. Gubin is the founder of the Midwest Torah Center Inc., a non-profit spiritual outreach center. He also attended Yeshiva Bais Israel where he received a BA in Talmudic Literature. Mr. Gubin has been a licensed Certified Public Accountant in the State of New York since 2010.

OTHER DIRECTORSHIPS

Mr. Macleod served as a Board Member (Director) of Non-Invasive Monitoring Systems, Inc., a publicly traded Company, from November 2005 to January 2008. Mr. Macleod resigned from the Board in January 2008.

Moishe Gubin, has served as a Director of OptimumBank since March 2010 to present. Mr. Gubin is Chief Executive Officer of Strawberry Fields REIT, a real estate holding company, which owns properties in multiple states, and owns many other businesses.

No other LevelBlox, Inc. Board members have had any Board affiliations or have served as a director of a U.S. publicly traded company.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Under Section 16(a) of the Exchange Act, our directors and certain of our officers, and persons holding more than 10 percent of our common stock are required to file forms reporting their beneficial ownership of our common stock and subsequent changes in that ownership with the United States Securities and Exchange Commission. Such persons are also required to furnish the Company with copies of all forms so filed.

Based solely upon a review of copies of such forms filed on Forms 3, 4, and 5, and amendments thereto furnished to us, we believe that as of the date of this report all of our executive officers and directors have complied with all Section 16(a) filing requirements. ~~We have one greater than 10 percent beneficial owner who has not filed reports required to be filed under Section 16(a).~~

CODE OF ETHICS

We adopted a code of ethics on March 10, 2011 that applies to our officers, directors, and employees. Our standards are in writing and are to be posted on our website at a future time. The following is a summation of the key points of the Code of Ethics we adopted:


•	Honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

•	Full, fair, accurate, timely, and understandable disclosure reports and documents that a small business issuer files with, or submits to, the Commission and in other public communications made by our Company;

•	Full compliance with applicable government laws, rules and regulations;

•	The prompt internal reporting of violations of the code to an appropriate person or persons identified in the Code; and

•	Accountability for adherence to the Code

CONFLICTS OF INTEREST

Other than Mr. Gary Macleod, CEO and director, and the Company’s Chief Technology Officer, the management team is comprised of consultants, shareholders and directors that are not obligated to commit their full time and attention to our business and accordingly, they may encounter a conflict of interest in allocating their time between our operations and those of other businesses. In the course of their other business activities they may become aware of investment and business opportunities which may be appropriate for presentation to us as well as other entities to which they owe a fiduciary duty. As a result they may have conflicts of interest in determining to which entity a particular business opportunity should be presented. They may also in the future become affiliated with entities that are engaged in business activities similar to those we intend to conduct.

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In general, officers and directors of a corporation are required to present business opportunities to the corporation if:


•	the corporation could financially undertake the opportunity;

•	the opportunity is within the corporation’s line of business; and,

•	it would be unfair to the corporation and its stockholders not to bring the opportunity to the attention of the corporation.

COMMITTEES OF THE BOARD OF DIRECTORS

Our directors have not established any committees, including an Audit Committee, a Compensation Committee, a Nominating Committee, or any committee performing a similar function. The functions of those committees are being undertaken by our directors. Because we have ~~only~~four ~~two~~ independent directors (Ms. Kimberly March~~-Crew~~, ~~and~~Ms. Katya Fisher, Mr. Peter Breen and Mr. Moishe Gubin), our directors believe that the establishment of committees of the Board would not provide any benefits to our Company and could be considered more form than substance.

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We do not have a policy regarding the consideration of any director candidates that may be recommended by our stockholders, including the minimum qualifications for director candidates, nor have our directors established a process for identifying and evaluating director nominees. We have not adopted a policy regarding the handling of any potential recommendation of director candidates by our stockholders, including the procedures to be followed. Our directors have not considered or adopted any of these policies as we have never received a recommendation from any stockholder for any candidate to serve on our Board of Directors. Given our relative size and lack of directors and officers insurance coverage, we do not anticipate that any of our stockholders will make such a recommendation in the near future.

While there have been no nominations of additional directors proposed, in the event such a proposal is made, our sole officer and director will appoint future nominees.

Our directors are not “audit committee financial experts” within the meaning of Item 401(e) of Regulation S-K. In general, an “audit committee financial expert” is an individual member of the audit committee or Board of Directors who:


•	understands generally accepted accounting principles and financial statements,

•	is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves,

•	has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements,

•	understands internal controls over financial reporting, and

•	understands audit committee functions.

Our Board of Directors is comprised of Mr. Gary Macleod who is involved in the day to day operations, ~~Mr.~~and ~~Paul Avery,~~ Mr. John Satta who were integral to our formation, Moishe Gubin, Katya Fisher, Ms. Kimberly March-Crew and Peter Breen who are Independent. As with most small, early stage companies until such time our Company further develops our business, achieves a stronger revenue base and has sufficient working capital, the Company does not have any immediate prospects to attract additional independent directors. When the Company is able to expand our Board of Directors to include more independent directors, the Company intends to establish an Audit and Compensation Committees of our Board of Directors. It is our intention that one or more of these independent directors will also qualify as an audit committee financial expert. Our securities are not quoted on an exchange that has requirements that a majority of our Board members be independent and the Company is not currently otherwise subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include “independent” directors, nor are we required to establish or maintain an Audit Committee or other committee of our Board of Directors.

We have ~~two~~four independent directors (Moishe Gubin, Katya Fisher, Ms. Kimberly March-Crew and Mr. Peter Breen) and the company has not voluntarily implemented various corporate governance measures, in the absence of which, stockholders may have more limited protections against interested director transactions, conflicts of interest and similar matters.

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ITEM 11. EXECUTIVE COMPENSATION

The table below summarizes all compensation awarded to, earned by, or paid to our named executive officer and financial officer for all services rendered in all capacities to us for the past two years.

							Nonqualified
						Non-Equity	Deferred
Name and				Stock	Option	Incentive Plan	Compensation	All Other
Principal	Year	Salary	Bonus	Awards	Awards	Compensation	Earnings	Compensation	Total
Position		($)	($)	($)	($)	($)	($)	($)	($)
Gary Macleod, CEO, Director	2017 2016	$ 234,600 $ 234,600	— —	— —	— —	— —	— —	— —	$ 234,600 $ 234,600
Gary Macleod	2018	$ 234,600	—	—	—	—	—	—	$ 234,600
Geoff Bicknell, CFO, Director	2017 2016	$ — $ 41,665	— —	— —	— —	— —	— —	— —	$ — $ 41,665
CEO, Director	2017	$ 234,600	—	—	—	—	—	—	$ 234,600

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OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of December 31, 2017.

Outstanding Equity Awards at Fiscal Year-End

OPTION AWARDS

STOCK AWARDS

Name

Number of Securities Underlying Unexercised Option (#) Exercisable

Number of Securities Underlying Unexercised Options (#) Unexercisable

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)

Option Exercise Price ($)

Option Expiration Date

Number of Shares or Units of Stock That Have Not Vested (#)

Market Value of Shares or Units of Stock That Have Not Vested ($)

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)

Gary Macleod

—

There were no grants of stock options since inception to the date of this Annual Report.

We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.

Our directors have not adopted a stock option plan. We have no current plans to adopt a stock option plan, but may choose to do so in the future. If such a plan is adopted, this may be administered by the board or a committee appointed by the board (the “Committee”). The committee would have the power to modify, extend or renew outstanding options and to authorize the grant of new options in substitution therefore, provided that any such action may not impair any rights under any option previously granted. We may develop an incentive based stock option plan for our officers and directors and may reserve up to 10% of our outstanding shares of common stock for that purpose.

OPTIONS GRANTS DURING THE LAST FISCAL YEAR / STOCK OPTION PLANS

We do not currently have a stock option plan in favor of any directors, officer, consultant or employee of our Company. No individual grants of stock options, whether or not in tandem with stock appreciation rights known as SARs or freestanding SARs have been made to our sole director and officer since our inception; accordingly, no stock options have been granted or exercised by our sole director and officer since we were founded.

AGGREGATED OPTIONS EXERCISES IN LAST FISCAL YEAR

No individual grants of stock options, whether or not in tandem with stock appreciation rights known as SARs or freestanding SARs have been made to our sole director and officer since our inception; accordingly, no stock options have been granted or exercised by our directors and sole officer since we were founded.

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LONG-TERM INCENTIVE PLANS AND AWARDS

We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance. No individual grants or agreements regarding future payouts under non-stock price-based plans have been made to our directors or officers or any employee or consultant since our inception; accordingly, no future payouts under non-stock price-based plans or agreements have been granted or entered into or exercised by our directors and sole officer or employees or consultants since we were founded.

EMPLOYMENT CONTRACTS, TERMINATION OF EMPLOYMENT, CHANGE-IN-CONTROL ARRANGEMENTS (All employment agreements were voided at the time of the Unwind.

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On October 15, 2015 the company entered into employment agreements with the following executives:

• Gary Macleod • Geoffrey Bicknell • Matthew Downes • Dominic Jones • James Ninivaggi • Mark Svainson • Martin Dean • Robert Fox • Gerald Letendre

As a result of the unwind agreement with STR, all employment agreements were terminated.

INDEBTEDNESS OF DIRECTORS, OFFICERS AND OTHER MANAGEMENT

Neither our officers or directors nor any associate or affiliate of our company during the last two fiscal years is or has been indebted to our Company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.

DIRECTOR COMPENSATION

Directors who are also employees receive no compensation for serving on the Board. The Company’s non-employee directors may receive options to purchase shares of common stock at the market price on the date they are granted, and are entitled to reimbursement of expenses incurred consequential to their service.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth, as of the date of this report, the total number of shares owned beneficially by our Officers and Directors and Consultants, individually and as a group, and the present owners of 5% or more of our total outstanding shares as of December 31, ~~2014~~2018. The stockholders listed below has direct ownership of their shares and possesses sole voting and dispositive power with respect to the shares.

Title of Class [3]	Name and Address of Beneficial Owner [1]	Number	Percent of Class [2]
Directors and Officers:
Common Stock	Gary Macleod, CEO, Director 6114 Glen Abbey Lane, Bradenton, FL 34202	17,177,528	2217.168%
Common Stock	~~Paul~~Moishe ~~Avery~~Gubin, Director 885683 ~~Mohican~~North ~~Road,~~Lincoln ~~Blairstown~~Avenue Chicago, NJIL ~~07805~~60659	84,~~813~~950,~~750~~000	115.309%
Common Stock	John Satta, Director 176 Stillwater Road, Hardwick, NJ 07825	1,500,000	1.954%
Common Stock	Kimberly March-Crew, Director 991 Smithbridge Road, Glen Mills, PA 19342	250,000	0.325%
Common Stock	Peter Breen, Director 35 Amherst Drive, Basking Ridge, NJ 07920	1,000,000	1.228%
DIRECTORS AND OFFICERS AS A GROUP		28,741,278	36.8%
Common Stock	Katya Fisher, Director	250,000	0.25%
	77 Water Street, 8th Floor, New York, NY 10005
DIRECTORS AND OFFICERS AS A GROUP		25,127,528	26.09%
Greater than 5% Shareholders:
Common Stock	Marion LaSala 688 Pines Lake Drive, Wayne, NJ 07470	10,557,160	1310.685%
Common Stock	Paul Avery 88 Mohican Road, Blairstown, NJ 07808	8,813,750	9.064%

__________

[1] The person(s) named above may be deemed to be a “parent” and “promoter” of our Company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his direct and indirect stock holdings. Mr. Macleod is the only “promoter” of our Company.


[1]	The person(s) named above may be deemed to be a “parent” and “promoter” of our Company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his direct and indirect stock holdings. Mr. Macleod is the only “promoter” of our Company.
[2]	Based on 97,243,259 shares issued and outstanding as of the date of this Annual Report.

[2] Based on 77,413,259 shares issued and outstanding as of the date of this Annual Report.

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Advances from Shareholders

We received advances from shareholders in the amount of $5,699 and $160,370 and made repayments of $46,~~762~~237 and $0 for the years ended December 31, ~~2017~~2018 and ~~2016~~2017, respectively, to fund our operating needs. ~~The accumulation of these advances were in the amount of $214,131 and $53,262 as of December 31, 2017, and 2016, respectively (see Table below).~~

The ~~amounts~~balances ~~were~~due ~~comprised~~at ofDecember ~~$135~~31,~~570~~ ~~and~~2018 ~~$13,262 for the years 2017~~ and ~~2016~~2017, respectively, from Gary Macleod, the majority shareholder; ~~$78,561~~ and ~~$40,500 for the years 2017 and 2016, respectively,~~ from Marion LaSala, a beneficial shareholder are presented below. These obligations have not been formalized by promissory notes or other writing. Terms have not been defined; however, the Company recognizes the nature of the financing and is accruing interest at the lowest legal interest rate, the Applicable Federal Rate. There are no other relationships or related party transactions.

	December 31, 2017		December 31, 2016
	December 31, 2018		December 31, 2017
Balance due to:
Gary Macleod	$	~~135~~89,~~570~~333	$	13135,~~262~~570
Marion LaSala		7884,~~562~~261		4078,~~500~~562
	$	~~214~~173,~~132~~594	$	53214,~~762~~132

Additionally, at December 31, ~~2017~~2018 and ~~2016~~2017, the Company had accrued compensation payable to Gary Macleod in the amount of $~~430~~664,~~100~~700 and $~~195~~430,~~500~~100, respectively.

DIRECTOR INDEPENDENCE

We currently have ~~two~~four independent directors (Ms. Kimberly ~~March-~~Crew, ~~and~~Ms. Katya Fisher, Mr. Peter Breen and Mr. Moishe Gubin) and we do anticipate appointing additional directors in the foreseeable future. If we engage further directors and officers, however, we plan to develop a definition of independence and scrutinize our Board of Directors with regard to this definition.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Audit Fees

We have been billed $2940,~~000~~300 and $4817,000 in fees by our current principal accounting firm, Gregory, Sharer & Stuart, P.A. for audit and review services in connection with the Company’s 10-K and 10-Q filings in ~~2017~~2018 and ~~2016~~2017, respectively.

Audit Related Fees

There were no fees for audit related services for the years ended December 31, ~~2017~~2018 and ~~2016~~2017 paid to our principal accounting firm.

Tax Fees

For the Company’s years ended December 31, ~~2017~~2018 and ~~2065~~2017, we were not billed for professional services rendered by our principal accounting firm for tax compliance, tax advice, and tax planning.

All Other Fees

The Company did not incur any other fees related to services rendered by our principal accountant for the years ended December 31, ~~2017~~2018 and ~~2016~~2017.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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Effective May 6, 2003, the Securities and Exchange Commission adopted rules that require that before our auditor is engaged by us to render any auditing or permitted non-audit related service, the engagement be:


•	approved by our audit committee; or

•	entered into pursuant to pre-approval policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee’s responsibilities to management.

We do not have an audit committee. Our entire board of directors pre-approves all services provided by our independent auditors.

The pre-approval process has just been implemented in response to the new rules. Our board of directors does not have records of what percentage of the above fees were pre-approved. However, all of the above services and fees were reviewed and approved by the entire board of directors either before or after the respective services were rendered.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(b) Exhibits:


31.1	Rule 13a-14(a) Certification of Principal Executive Officer

32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*	Interactive Data Files of Financial Statements and Notes.

* In accordance with Regulation S-T, the Interactive Data Files in Exhibit 101 to the Annual Report on Form 10-K shall be deemed “furnished” and not “filed”.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~ALPHAPOINT TECHNOLOGY~~LEVELBLOX, INC.

By	/s/ Gary Macleod	Date: March 3129, ~~2018~~2019
	Gary Macleod
	Principle Executive Officer

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.

By	/s/ Gary Macleod	Date: March 3129, ~~2018~~2019
	Gary Macleod
	Director
By	/s/ ~~Paul~~Moishe ~~Avery~~Gubin	Date: March 3129, ~~2018~~2019
	Paul Avery
	Moishe Gubin
	Director
By	/s/ John Satta	Date: March 3129, ~~2018~~2019
	John Satta
	Director
By	/s/ Kimberly Crew	Date: March 3129, ~~2018~~2019
	Kimberly March-Crew
	Kimberly Crew
	Director
By	/s/ Peter Breen	Date: March 3129, ~~2018~~2019
	Peter Breen
	Director
By	/s/ Katya Fisher	Date: March 29, 2019
	Katya Fisher
	Director

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