The authorized capital stock of Purchaser consists of 5,000,000 shares of preferred stock, par value $0.001 per share, and 75,000,000 shares of common stock, par value $0.001 per share. As of the date of this APA, 1,515,000 shares of Series A Preferred Stock are issued and outstanding and approximately 66,548,517 shares of common stock (or CannaSys Stock) are issued and outstanding. The issued and outstanding shares of preferred stock and common stock are validly issued, fully paid, nonassessable, and subject to no restrictions on transfer other than Securities Act restrictions applicable to restricted securities. There are no treasury shares. Purchaser is in the process of amending its articles of incorporation to recapitalize the company by causing a reverse-split of its current issued and outstanding shares of common stock and to increase its authorized shares of common stock to enable Purchaser to issue and deliver the CannaSys Stock required under the terms of this APA.