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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The condensed
consolidated interim financial statements included herein, presented in accordance with United States generally accepted accounting
principles, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented not misleading.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">These statements
reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair
presentation of the information contained therein. It is suggested that these condensed consolidated interim financial statements
be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto included
in the Company's Form 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">Results of
operations for the interim period are not indicative of annual results.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">Competitive
Companies, Inc. (the “Company” or “CCI”) was incorporated in the state of Nevada in October 2001 and acts
as a holding company for its operating subsidiaries. The Company's headquarters are located in San Antonio, Texas. The Company
is involved in providing next generation fixed and mobile wireless broadband Internet services nationally and internationally
to wholesale, retail and enterprise customers with a special focus on the small medium business market.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The accompanying
condensed consolidated interim financial statements include the accounts of the following entities. All significant inter-company
transactions have been eliminated in the preparation of these financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 28%; text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="width: 26%; text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="width: 20%; text-align: center"><font style="font-size: 8pt">State of </font></td>
<td style="width: 1%; text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="width: 22%; text-align: center"><font style="font-size: 8pt">Relationship</font></td>
<td style="width: 1%; text-align: justify"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt">Name of Entity (1) </font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt">Form of Entity </font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt">Incorporation </font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt">March 31, 2017</font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: rgb(238,238,238)">
<td style="text-align: left"><font style="font-size: 8pt">Competitive Companies, Inc.</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Corporation</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Nevada</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Parent</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Wireless Wisconsin LLC</font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Limited Liability Company</font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Wisconsin</font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (2)</font></td>
<td style="text-align: justify"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: rgb(238,238,238)">
<td style="text-align: left"><font style="font-size: 8pt">Innovation Capital Management, Inc.</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Corporation</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Delaware</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (2)</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Innovation Capital Management, LLC</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Limited Liability Company</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Texas</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (2)</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: rgb(238,238,238)">
<td style="text-align: left"><font style="font-size: 8pt">Wytec International, Inc.</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Corporation</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Nevada</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (3)</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Wylink, Inc.</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Corporation</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Texas</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (4)</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: top; background-color: rgb(238,238,238)">
<td style="text-align: left"><font style="font-size: 8pt">Capaciti Networks, Inc.</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">Corporation</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Texas</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Subsidiary (5)</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">(1) Certain
non-operational holding companies have been excluded.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">(2) Wholly-owned
subsidiary of Competitive Companies, Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">(3) As of
March 31, 2017, CCI owned a 10% interest in Wytec on an “as converted basis” with respect to Wytec’s Series
A and Series B Preferred Stock consolidated under the variable interest entity model.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">(4) Wholly-owned
subsidiary of Wytec International, Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">(5) During
2016, Capaciti was sold, in full, from CCI to Wytec and as of March 31, 2017, Capaciti is a wholly owned subsidiary of Wytec.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The operations
of each consolidated subsidiary is further detailed below:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Wireless
Wisconsin LLC (“Wireless WI”) – Provides high speed wireless Internet
connections to residents in rural communities, as well as some DSL internet services
to businesses and residents within various markets throughout rural Wisconsin. The Company
operates in both a regulated and non-regulated environment.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Innovation
Capital Management, Inc. (“ICM”) – Formed to manage capital raising
activities.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Innovation
Capital Management, LLC (“ICMLLC”) – Formed to engage in strategic
marketing relationships.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Wytec
International, Inc. (“Wytec”) – Provider of wireless internet access
serviced infrastructures and provides internet access services primarily to the small
and medium business market.</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Wylink,
Inc. (“Wylink”) – Applies for and registers links (each a “Registered
Link”).</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 5%"></td><td style="width: 5%"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify; width: 90%"><font style="font-size: 8pt">Capaciti
Networks, Inc. (“Capaciti”) – Provides the WyQuote system to market
internet access services</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In October
2016, the Company entered into an agreement with Wytec pursuant to which the Company agreed to exchange shares of Wytec common
stock owned by the Company in consideration for the cancellation of intercompany debts. After consummation of the transaction,
the Company’s percentage ownership of Wytec decreased to 11% On an “as converted” basis with respect to Wytec’s
outstanding convertible Preferred Stock Wytec is now consolidated as a variable interest entity. The Company is the primary beneficiary
of Wytec and controls it through its governing board and continuity of management.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The condensed
consolidated financial statements are prepared using accounting principles generally accepted in the United States of America
applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course
of business. The Company has incurred continuous losses from operations, has an accumulated deficit of $18,919,720 at March 31,
2017, and has reported negative cash flows from operations in most periods over the last seven years. In addition, the Company
does not currently have the cash resources to meet its operating commitments for the next twelve months. The Company’s ability
to continue as a going concern must be considered in light of the problems, expenses, and complications frequently encountered
by entrance into established markets and the competitive nature of the industry in which the Company operates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The Company’s
ability to continue as a going concern is dependent on the Company’s ability to generate sufficient cash from operations
to meet its cash needs and/or to raise funds to finance ongoing operations and repay debt. There can be no assurance that the
Company will be successful in its efforts to raise additional debt or equity capital and/or that cash generated by operations
will be adequate to meet the Company’s needs. These factors, among others, indicate that the Company may be unable to continue
as a going concern for a reasonable period of time. The condensed consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The cost
of equipment and materials purchased, and contract labor incurred, for the construction of network, plant property and equipment,
and the installation of registered links on behalf of customers is held in Construction in Process until construction is completed.
No depreciation or amortization is applied to Construction in Process. Once construction is complete and network element is placed
in service, the costs are either capitalized or expensed as cost of goods sold as appropriate.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">Wytec currently
has a total of 6,774,412 common stock purchase warrants outstanding to purchase a total of 6,774,412 shares of Wytec common stock
exercisable until various dates through December 31, 2017, 1,731,104 of which are exercisable at an exercise price of $5.00 per
share, 3,844,808 of which are exercisable at an exercise price of $1.50 per share, 75,000 of which are exercisable at an exercise
price of $1.45 per share, 373,500 of which are exercisable at an exercise price of $1.25 per share, and 750,000 of which are exercisable
at an exercise price of $1.00 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The following
is a summary of activity of CCI and Wytec outstanding common stock warrants:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Number of CCI Warrants</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Number of Wytec Warrants</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="width: 70%"><font style="font-size: 8pt">Balance, December 31, 2015</font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">87,571,429</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">2,805,672</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants granted</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">4,680,608</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants exercised</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">207,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants repurchased</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">87,571,429</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Warrants expired</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">170,000</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Balance, December 31, 2016</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">7,109,280</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants granted</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">50,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants exercised</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">384,868</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants repurchased</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Warrants expired</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Balance, March 31, 2017</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">6,774,412</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Exercisable, March 31, 2017</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">6,774,412</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Number of CCI Warrants</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Number of Wytec Warrants</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="width: 70%"><font style="font-size: 8pt">Balance, December 31, 2015</font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">87,571,429</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">2,805,672</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants granted</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">4,680,608</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants exercised</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">207,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants repurchased</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">87,571,429</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Warrants expired</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">170,000</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Balance, December 31, 2016</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">7,109,280</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants granted</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">50,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants exercised</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">384,868</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Warrants repurchased</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">–</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Warrants expired</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Balance, March 31, 2017</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">6,774,412</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Exercisable, March 31, 2017</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">–</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">6,774,412</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In October
2012, the Company granted employees options to purchase 3,000,000 shares of common stock exercisable at $0.01 per share with a
three year vesting schedule and expiration dates four years from the grant date. In August 2015, one of the employees resigned
from the Company and forfeited his 1,000,000 stock options. As of December 31, 2016, the remaining 2,000,000 stock options expired.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In April
2014, the Company granted 10,000,000 stock options to purchase 10,000,000 shares of its common stock to the Company’s chief
executive officer, exercisable at $0.025 per share with a three year vesting schedule and an expiration date of April 17, 2019.
For the three month periods ended March 31, 2017 and 2016, the stock-based compensation related to these option grants was $8,500
and $8,500, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In September
2014, the Company granted employees options to purchase 1,500,000 shares of common stock each exercisable at $0.02 per share with
a three year vesting schedule and an expiration date of September 1, 2018. In July 2015, one of the employees was terminated from
the Company and forfeited his 750,000 stock options prior to the first vesting milestone. For the three month periods ended March
31, 2017 and 2016, the stock-based compensation related to these option grants was $625 and $625, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In May 2015,
the Company granted 750,000 options to one employee to purchase 750,000 shares of common stock, exercisable at $0.02 per share
with a three year vesting schedule and an expiration date of May 14, 2019. For the three month periods ended March 31, 2017 and
2016, the stock-based compensation related to these option grants was $1,000 and $1,000, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">During the
three months ending March 31, 2016, Wytec issued 311,250 shares of Wytec Series B Preferred Stock and 311,250 common stock purchase
warrants for $933,750 in cash.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">During the
three months ended March 31, 2017 Wytec issued 40,000 shares of Wytec Series B Preferred Stock and 40,000 Wytec common stock purchase
warrants for $120,000 in cash and 10,000 shares of Wytec Series B Preferred Stock and 10,000 Wytec common stock purchase warrants
in exchange for one Registered Link.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">During the
three months ending March 31, 2016, Wytec refunded $37,500 that had been received for the purpose of issuing 12,500 shares of
Wytec Series B Preferred Stock to one investor. The shares of Wytec Series B Preferred Stock were never issued to the investor,
and the funds were returned.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">During the
three months ending March 31, 2017, Wytec issued 384,868 shares of Wytec common stock in exchange for $569,052 in cash and the
exercise of 384,868 common stock purchase warrants, and Wytec received $60,000 in cash for the purpose of exercising additional
common stock purchase warrants but the holder has not executed the required documents.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><font style="font-size: 8pt">In
October 2016, the Company’s board of directors and majority shareholders authorized a planned spin-off of Wytec (“Spin-Off”).
As of March 31, 2017, CCI owns 865,552 shares, approximately 10%, of the outstanding common stock of Wytec, (assuming all outstanding
shares of Wytec’s Series A and Series B Preferred Stock are converted into Wytec common stock) and 1,731,104 Wytec common
stock purchase warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">On December
9, 2016, CCI filed an information statement on schedule 14C and on January 10, 2017, Wytec filed a registration statement on form
S-1 with the Securities and Exchange Commission (the “SEC”). These filings describe in detail the terms and conditions
of the Spin-Off. Upon the S-1 Registration Statement being declared effective by the SEC, Wytec will no longer be owned by the
Company, as the Company will distribute 100 % of its remaining shares of Wytec common stock and Wytec common stock purchase warrants
to its shareholders. Wireless WI, ICM, and ICM LLC, will continue to be wholly owned subsidiaries of the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In April
2017, the Company purchased 386,847 shares of its common stock from a director for a cash payment of $10,000. In April 2017, Wytec
issued 483,434 shares of Wytec common stock to twelve investors pursuant to the exercise of warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In April
2017, Wytec authorized the payment of a cash bonus of $12,796 to its chief executive officer.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In May 2017,
Wytec issued 75,000 shares of Wytec common stock to two investors pursuant to the exercise of warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">Through May
3, 2017, Wytec loaned $341,140 to the Company in the form of an unsecured non-interest bearing account.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In May 2017,
Wytec issued a total of 9,500 warrants to purchase 9,500 shares of Wytec common stock to one unrelated service provider. The warrants
are exercisable at a price of $1.50 per share until December 31, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">Effective
May 3, 2017, Tina Bagley was appointed as a director of the Company and as a director of Wytec.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
120000
933750
865552
1731104
10000
10000
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">March 31,</font></td><td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">December 31,</font></td><td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2017</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="width: 70%; text-align: left"><font style="font-size: 8pt">Telecommunication equipment and computers</font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">1,095,191</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">1,070,838</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Furniture and fixtures</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">44,746</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">61,702</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,139,937</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,132,540</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Less accumulated depreciation</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(580,991</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(529,143</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">$</font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">558,946</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: left; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">$</font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font-size: 8pt">603,397</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td> </td>
<td colspan="2" style="text-align: center">March 31,</td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center">December 31,</td>
<td> </td>
</tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">2016</td><td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="width: 70%; text-align: left">Telecommunication equipment and computers</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,095,191</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,070,838</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">44,746</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">61,702</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,139,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,132,540</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(580,991</td><td style="text-align: left; padding-bottom: 1pt">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(529,143</td><td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">558,946</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">603,397</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense totaled $54,797 and
$52,868 for the three months ending March 31, 2017 and 2016, respectively.</p>