tv489072-s1 - none - 10.019916s

As filed with the Securities and Exchange Commission on March 26, 2018

Registration No. 333-

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

MONEYONMOBILE, INC.

(Exact name of registrant as specified in its charter)

	TEXAS			7389			20-8592825
	(State or other jurisdiction of incorporation)			(Primary Standard Industrial Classification Code Number)			(IRS Employer Identification Number)

500 North Akard Street Suite 2850
Dallas, TX 75201
(214) 758-8600
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Harold Montgomery
Chief Executive Officer
MoneyOnMobile, Inc.
500 North Akard Street Suite 2850
Dallas, TX 75201
(214) 758-8600
(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies to:

Darrin Ocasio, Esq.
Jay Yamamoto, Esq.
SICHENZIA ROSS FERENCE KESNER LLP
1185 Avenue of the Americas, 37th Floor
New York, New York 10036
Phone: 212-930-9700
Fax: 212-930-9725

Approximate date of commencement of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting 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 filed ☐			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 7(a)(2)(B) of the Securities Act. ☐

CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered(1)	Amount to be Registered		Proposed Maximum Offering Price Per Unit		Proposed Maximum Aggregate Offering Price			Amount of Registration Fee
Subscription Rights to purchase Common Stock, $0.001 par value per share		—		—			—			—(2)
Common Stock, $0.001 par value per share, issuable upon exercise of Subscription Rights		17,250,000		—		$	7,014,712.50(3)		$	873.33
Total		—		—		$	7,014,712.50(3)		$	873.33

(1)

This registration statement relates to (a) non-transferable subscription rights to purchase common stock of the registrant, which subscription rights are to be issued to holders of the registrant’s common stock on a pro rata basis without consideration, and (b) the shares of the registrant’s common stock issuable upon the exercise of such non-transferable subscription rights.

(2)

The subscription rights are being issued without consideration. Pursuant to Rule 457(g) under the Securities Act of 1933, as amended, no separate registration fee is payable with respect to the subscription rights being offered hereby since the subscription rights are being registered in the same registration statement as the securities to be offered pursuant thereto.

(3)

Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act, based on the average of the high and low prices of the Registrant’s Common Stock on the OTCQB on March 26, 2018.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

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The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

PROSPECTUS

SUBJECT TO COMPLETION

DATED MARCH 26, 2018

MONEYONMOBILE, INC.

Subscription Rights to purchase up to 15,000,000 shares of common stock at $[•] per share and the shares of common stock issuable upon the exercise of such Subscription Rights

We are distributing to holders of our common stock, $0.001 par value, and holders of our preferred stock, on an as converted basis, at no charge, non-transferable subscription rights to purchase up to 15,000,000 of our common stock. We refer to the offering that is the subject of this prospectus as the rights offering. In the rights offering, you will receive one subscription right for every share of common stock owned and one subscription right for every share of common stock you would own upon full conversion of the shares of preferred stock owned at 5:00 p.m., Eastern Time, on April [•], 2018, the record date of the rights offering. The subscription rights will not be tradeable. Each subscription right consists of a basic subscription privilege and an over-subscription privilege.

Each basic subscription privilege will entitle you to purchase one share of common stock, which we refer to as the basic subscription right, at a subscription price per share of common stock equal to $[•]. In the event that holders exercise subscription rights for in excess of $6 million (not including the over-subscription privilege), the amount subscribed for by each person will be proportionally reduced, based on the amount subscribed for by each person (not including any over-subscription privilege subscribed for). If you exercise your basic subscription privilege in full, and any portion of the shares of common stock remain available under the rights offering which are unsubscribe, you will be entitled to an over-subscription privilege to purchase a portion of the unsubscribed shares of common stock at the subscription price, subject to proration based on the number of shares of common stock owned and common stock that would be owned upon full conversion of the shares of preferred stock owned on the record date, which we refer to as the over-subscription privilege.

You may only purchase the number of shares of common stock purchasable upon exercise of the number of basic subscription privilege distributed to you in the rights offering, plus the over-subscription privilege, if any. Accordingly, the number of shares of common stock that you may purchase in the rights offering is limited by the number of shares of our common stock you held or would have held upon full conversion of the shares of preferred stock you held on the record date and by the extent to which other stockholders exercise their basic subscription privileges and over-subscription privileges, which we cannot determine prior to completion of the rights offering.

The subscription rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on June [•], 2018, unless the rights offering is extended or earlier terminated by the Company. There is no minimum number of subscription rights that must be exercised in this rights offering, no minimum number that any subscription rights holder must exercise, and no minimum number of common stock that we will issue at the closing of this rights offering. If we elect to extend the rights offering, we will issue a press release announcing the extension no later than 9:00 a.m., Eastern Time, on the next business day after the most recently announced expiration date of the rights offering. We may extend the rights offering for a period not to exceed 30 days in our sole discretion. Once made, all exercises of subscription rights are irrevocable.

We have engaged Advisory Group Equity Services, Ltd., d/b/a RHK Capital (referred to herein as “RHK Capital”) as dealer-manager for this rights offering.

We are conducting the rights offering to raise capital that we intend to use to grow our operations in India and for general corporate purposes. Our independent registered public accounting firm in its report on the March 31, 2017 financial statements has raised substantial doubt about our ability to continue as a going concern. We had cash and cash equivalents in the amount of $4,673,805 as of December 31, 2017. We estimate that the current funds on hand will be sufficient to continue operations through December 2018. See “Use of Proceeds”.

You should carefully consider whether to exercise your subscription rights prior to the expiration of the rights offering. All exercises of subscription rights are irrevocable, even if the rights offering is extended by our board of directors.

If we amend the rights offering to allow for an extension of the rights offering for a period of more than 30 days or make a fundamental change to the terms of the rights offering set forth in this prospectus, you may cancel your subscription and receive a refund of any money you have advanced. Our board of directors may cancel the rights offering at any time prior to the expiration of the rights offering for any reason. In the event the rights offering is canceled, all subscription payments received by the subscription agent will be returned, without interest, as soon as practicable.

In the event that the exercise by a stockholder of the basic subscription privilege or the over-subscription privilege could, as determined by the Company in its sole discretion, potentially result in a limitation on the Company’s ability to use net operating losses, tax credits and other tax attributes, which we refer to as the “Tax Attributes,” under the Internal Revenue Code of 1986, as amended,

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which we refer to as the “Code”, and rules promulgated by the Internal Revenue Service, the Company may, but is under no obligation to, reduce the exercise by such stockholder of the basic subscription privilege or the over-subscription privilege to such number of shares of common stock as the Company in its sole discretion shall determine to be advisable in order to preserve the Company’s ability to use the Tax Attributes.

Our board of directors is making no recommendation regarding your exercise of the subscription rights. The subscription rights may not be sold, transferred or assigned and will not be listed for trading on any stock exchange or market. Shares of our common stock are traded on the OTC Market Group’s OTCQB under the symbol “MOMT”. On March 23, 2018, the closing sales price for our common stock was $0.4333 per share. The shares of common stock issued in the rights offering will also be traded on the OTCQB under the same symbol.

	Subscription Price			Dealer Manager Fees and Expenses(1)			Proceeds, Before Expenses, to us
Per share of common stock		$	[•]		$	[•]		$	[•]
Total(2)		$	6,000,000		$	480,000		$	5,520,000

(1)

In connection with the rights offering, we have agreed to pay RHK Capital, the dealer-manager for this offering, a cash fee up to 6.0% of the gross proceeds of this offering in cash, a non-accountable expense allowance up to 1.8% of the gross proceeds of this offering, and an out-of-pocket accountable expense allowance of 0.2%.

(2)

Assumes that the rights offering is fully subscribed, excluding the over-subscription privilege and that the maximum offering amount in the aggregate of $6 million is subscribed.

The exercise of your subscription rights for shares of our common stock involves risks. See “Risk Factors” beginning on page 13 of this prospectus as well as the risk factors and other information in any documents we incorporate by reference into this prospectus to read about important factors you should consider before exercising your subscription rights.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

The distribution of this prospectus and the offering of the securities in certain jurisdictions may be restricted by law. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the securities and the distribution of this prospectus outside the United States. This prospectus does not constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by this prospectus in any jurisdiction in which it would be unlawful for us to make such an offer or solicitation.

If you have any questions or need further information about this rights offering, please call Mackenzie Partners, Inc., our information agent for the rights offering at (800) 322-2885 (toll free) or email at rightsoffer@mackenziepartners.com.

Dealer-Manager

The date of this prospectus is [•], 2018

You should read this prospectus, the documents incorporated by reference into this prospectus, and any prospectus supplement or free writing prospectus that we may authorize for use in connection with this offering, in their entirety before making an investment decision. You should also read and consider the information in the documents to which we have referred you in the section of this prospectus entitled “Where You Can Find More Information”. These documents contain important information that you should consider when making your investment decision.

We are only responsible for the information contained in, or incorporated by reference into, this prospectus, in any prospectus supplement or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We have not authorized anyone to provide any information other than that contained in this prospectus, in any prospectus supplement or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We are offering to sell, and seeking offers to buy, securities only in jurisdictions where such offers and sales are permitted. The information in this prospectus, in any prospectus supplement or any free writing prospectus is accurate only as of its date, regardless of its time of delivery or of any sale of securities. Our business, financial condition, results of operations and prospects may have changed since that date.

Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market share, is based on information from our own management estimates and research, as well as from industry and general publications and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available information, our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable. In addition, assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in “Risk Factors”. These and other factors could cause our future performance to differ materially from our assumptions and estimates. See “Note Regarding Forward-Looking Statements.”

Except as otherwise indicated herein or as the context otherwise requires, references in this prospectus to “MoneyOnMobile” “the Company,” “we,” “us,” “our” and similar references refer to MoneyOnMobile, Inc.

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COMPANY OVERVIEW

Business Overview

MoneyOnMobile, Inc. is an India-focused technology and transaction processing company offering payment services to retailers. MoneyOnMobile enables Indian retailers to use their mobile phones to pay for third party goods and services on behalf of a consumer, or transfer funds from one consumer to another, or to allow a consumer to withdraw from their bank account. MoneyOnMobile, Inc. is now one of India’s largest mobile payments processing companies offering digital payment services to the predominately cash-using businesses and consumers. With MoneyOnMobile’s system, retailers use their mobile phones to make payments on behalf of their customers for utilities or to transfer currency to other consumers using text-messaging and mobile application technology.

The Company’s payment service is available in every state within India, reaching the cash-using population of businesses and consumers. MoneyOnMobile services enable Indian businesses to use their mobile phones to convert their consumer’s cash into digital transactions to pay for third party goods and services or transfer funds from one person to another using simple SMS text functionality.

Today, after seven years of work in India, we’ve established relationships with over 350,000 retailers throughout the country. We’re in every state in India, and we cover more than 700 cities throughout the country. MoneyOnMobile has served more than 200 million Indian consumers, based on unique phone numbers used in a transaction in that seven-year time period. We’ve also processed over $2 billion on our proprietary MoneyOnMobile digital payments platform.

Corporate Information

MoneyOnMobile, Inc., a Texas corporation headquartered in Dallas, Texas, was incorporated on May 30, 2006, as Toyzap.com, Inc., and became a public company on May 7, 2008, through a self-underwritten registered public offering of 4,000,000 shares of $.001 par value common stock. The offering raised $150,000 that was used to pursue a business strategy that never commenced operations. The “shell company”, Toyzap.com, Inc., was acquired by members of the Company’s current management team, affiliates thereof, and certain other purchasers, on April 23, 2010, pursuant to purchase agreements whereby approximately 99% of the Company’s then issued and outstanding common stock was acquired. At such time, the former management and Board of Directors resigned and a new management team and Board of Directors were appointed, who then redirected the business focus of the Company to the business plan described below. On September 3, 2010, the Company changed its name to “Calpian, Inc.” pursuant to approval obtained at a meeting of our shareholders. On August 9, 2016, the Company changed its name to “MoneyOnMobile, Inc.” pursuant to approval obtained at a meeting of our shareholders. The Company’s common stock began trading in the over the counter (“OTC”) market on March 4, 2009.

In March 2012, the Company began to invest in a Mumbai, India-based mobile money system catering to India’s vast unbanked and under-banked populations with simple transaction services. It allows consumers to deposit cash with one of our retailers. The Company’s investment was achieved by acquiring equity interests in Digital Payments Processing Limited (“DPPL”), a newly-organized company. DPPL maintains an exclusive services agreement with My Mobile Payments Limited (“MMPL”). Additionally, Payblox Technologies (India) Private Limited (“Payblox”), a wholly owned subsidiary of MMPL, organized in October 2010 under the laws of India and headquartered in Mumbai, India, provides certain back office and support services on behalf of MMPL to its customer base. These companies are all organized under the laws of India and headquartered in Mumbai, India. MoneyOnMobile, Inc. is the primary beneficiary of MMPL.

In March 2013, the Company formed a wholly-owned subsidiary, Calpian Commerce, Inc. (“Calpian Commerce”), to own and operate certain assets and liabilities of Pipeline Data, Inc. and its subsidiaries acquired in exchange for a cash payment of $9.75 million. The acquisition was financed by expanding the Company’s senior credit facility from $5 million to $14.5 million.

Effective November 30, 2015 (11:59pm), the Company entered into an Asset Purchase Agreement with eVance Processing Inc. (“eVance”) to divest its Calpian Commerce business segment and certain other U.S. residual portfolio assets of the Company including its partially-owned joint venture Calpian Residual

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SUMMARY OF THE OFFERING

The following summary describes the principal terms of the rights offering, but is not intended to be complete. See the information under the heading “The Rights Offering” in this prospectus for a more detailed description of the terms and conditions of the rights offering.

Securities Offered

We are distributing, at no charge, to holders of our common stock, and holders of our preferred stock, on an as converted basis, non-transferrable subscription rights to purchase up to an aggregate of 15,000,000 shares of our common stock. Holders of our common stock will receive one subscription right for each share of common stock owned and holders of our preferred stock will receive one subscription right for each share of common stock they would own upon full conversion of preferred stock owned at, 5:00 p.m., New York City time, on , 2018; provided, that, the rights may only be exercised for a maximum of 15,000,000 shares, or $6 million of subscription proceeds.

Basic Subscription Privilege

The basic subscription privilege of each subscription right will entitle you to purchase one share of our common stock at a subscription price of $ per share.

Over-Subscription Privilege

If you fully exercise your basic subscription privilege and basic subscription rights are exercised for an amount less than $ , you may also exercise an over-subscription right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among stockholders exercising this over-subscription right.

Record Date

5:00 p.m., Eastern time, on , 2018.

Expiration Date of the Rights Offering

5:00 p.m., Eastern time, on , 2018.

Subscription Price

$ per share, payable in cash. To be effective, any payment related to the exercise of a right must clear prior to the expiration of the rights offering.

Use of Proceeds

We are conducting the Rights Offering to raise equity capital that will be used to repay a portion of our outstanding indebtedness and for general corporate purposes, which may include additional debt repayment. See “Use of Proceeds” for a more detailed description of the intended use of proceeds from the Rights Offering.

Non-Transferability of Rights

The Subscription Rights granted to you may be exercised only by you, and, therefore, you may not sell, transfer or assign your Subscription Rights to anyone else.

Shares Outstanding Before the Rights Offering

78,324,499 shares of our common stock.

Shares Outstanding After the Rights Offering

Assuming 15,000,000 shares of our common stock are issued in the rights offering through the exercise of subscription rights, we anticipate that 93,324,499 shares of our common stock will be outstanding following the completion of the rights offering.

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QUESTIONS AND ANSWERS ABOUT THE RIGHTS OFFERING

The following are examples of what we anticipate will be common questions about the rights offering. The answers are based on selected information included elsewhere in this prospectus. The following questions and answers do not contain all of the information that may be important to you and may not address all of the questions that you may have about the rights offering. This prospectus and the documents incorporated by reference into this prospectus contain more detailed descriptions of the terms and conditions of the rights offering and provide additional information about us and our business, including potential risks related to the rights offering, the shares of common stock offered hereby, and our business. We urge you to read this entire prospectus and the documents incorporated by reference into this prospectus.

Why are we conducting the rights offering?

We are conducting the offering to raise capital that we intend to use to grow our India operations and for general corporate purposes.

What is the rights offering?

We are distributing to holders of our common stock, $0.001 par value, and holders of our preferred stock, on an as converted basis, at no charge, non-transferable subscription rights to purchase shares of common stock. You will receive one subscription right for each whole share of common stock owned and one subscription right for every share of common stock you would own upon full conversion of the shares of preferred stock owned at 5:00 p.m., Eastern Time, on April [•], 2018. Each subscription right will entitle the holder to a basic subscription privilege and an over-subscription privilege.

What are the basic subscription privilege?

A basic subscription privilege will entitle you to purchase one share of common stock, at the subscription price, for each share of common stock held by you and shares of common stock you would own upon full conversion of the shares of preferred stock held by you on the record date of April [•], 2018. For example, if you owned 100 shares of common stock as of the record date, you will receive 100 subscription rights. You may exercise all or a portion of your basic subscription privilege or you may choose not to exercise any basic subscription privilege at all.

If you are a record holder, the number of common shares you may purchase pursuant to your basic subscription privilege is indicated on the subscription rights certificate. If you hold your shares in the name of a broker, dealer, bank, or other nominee who uses the services of the Depository Trust Company, or DTC, you will not receive a subscription rights statement. Instead, DTC will issue one subscription right to your nominee record holder for each share of our common stock that you own or would own upon full conversion of our preferred stock that you own as of the record date. If you are not contacted by your nominee, you should contact your nominee as soon as possible.

If sufficient shares of common stock are available, we will seek to honor your basic subscription request in full. In the event that holders exercise subscription rights for in excess of $6 million (not including the over- subscription privilege), the amount subscribed for by each person will be proportionally reduced, based on the amount subscribed for by each person (not including any over-subscription privilege subscribed for).

See “The Rights Offering — Limitation on the Purchase of Shares of Common Stock” for a description of certain limitations on purchase.

What is the over-subscription privilege?

If you exercise your basic subscription privilege in full, you may also choose to exercise your over- subscription privilege to purchase shares of common stock that the other record holders do not purchase through the exercise of their basic subscription privilege. You should indicate on your subscription rights certificate, or the form provided by your nominee if your shares are held in the name of a nominee, the aggregate amount you would like to apply to purchase shares of common stock pursuant to your over-subscription privilege.

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If sufficient shares of common stock are available, we will seek to honor your over-subscription request in full. If over- subscription requests exceed the number of shares of common stock available, however, we will allocate the available shares of common stock pro-rata among the record holders exercising the over-subscription privilege in proportion to the number of shares of our common stock each of those record holders owned and the number of shares of our common stock issuable upon fully conversion of the preferred stock that each of those record holders owned on the record date, relative to the number of shares owned on the record date by all record holders exercising the over-subscription privilege. If this pro-rata allocation results in any record holders receiving a greater number of shares of common stock than the record holder subscribed for pursuant to the exercise of the over-subscription privilege, then such record holder will be allocated only that number of shares of common stock for which the record holder oversubscribed, and the remaining shares of common stock will be allocated among all other record holders exercising the over-subscription privilege on the same pro rata basis described above. The proration process will be repeated until all shares of common stock have been allocated. See “The Rights Offering — Limitation on the Purchase of Shares of Common Stock” for a description of certain limitations on purchase.

To properly exercise your over-subscription privilege, you must deliver to the subscription agent the subscription payment related to your over-subscription privilege before the rights offering expires. See “The Rights Offering — The Subscription Rights — Over-Subscription Privilege.” To the extent you properly exercise your over-subscription privilege for a number of shares of common stock that exceeds the number of unsubscribed shares of common stock available to you, any excess subscription payments will be returned to you as soon as practicable after the expiration of the rights offering, without interest or penalty.

Our subscription agent for the rights offering, will determine the over-subscription allocation based on the formula described above.

Will fractional shares be issued upon exercise of subscription rights?

No. We will not issue fractional shares of common stock in the rights offering. Any excess subscription payments received by the subscription agent will be returned as soon as practicable after expiration of the rights offering, without interest or penalty.

What effect will the rights offering have on our outstanding common stock?

On March 23, 2018, 78,324,499 shares of our common stock were outstanding. Based on the foregoing, and assuming no other transactions by us involving our common stock prior to the expiration of the rights offering, is fully subscribed for the maximum number of shares of common stock available, approximately 93,324,499 shares of our common stock will be issued and outstanding. The exact number of shares of common stock that we will issue in this rights offering will depend on subscription price and the number of shares of common stock that are subscribed for in the Rights Offering.

How was the subscription price formula determined?

Our board of directors determined the subscription price taking into consideration, among other things, the following factors:

•

the current and historical trading prices of our common stock;

•

the price at which stockholders might be willing to participate in the rights offering;

•

our need for additional capital and liquidity;

•

the cost of capital from other sources; and

•

comparable precedent transactions, including the percentage of shares offered, the terms of the subscription rights being offered, the subscription price and the discount that the subscription price represented to the immediately prevailing closing prices for those offerings.

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In conjunction with the review of these factors, our board of directors reviewed our history and prospects, including our past and present earnings and cash requirements, our prospects for the future, the outlook for our industry and our current financial condition. Our board of directors believes that the subscription price should be designed to provide an incentive to our current stockholders to participate in the rights offering and exercise their basic subscription privilege and their over-subscription privilege.

The subscription price does not necessarily bear any relationship to any established criteria for value. You should not consider the subscription price as an indication of actual value of the Company or our common stock. We cannot assure you that the market price of our common stock will not decline during or after the rights offering. You should obtain a current price quote for our common stock before exercising your subscription rights and make your own assessment of our business and financial condition, our prospects for the future, and the terms of this rights offering. Once made, all exercises of subscription rights are irrevocable.

Am I required to exercise all of the basic subscription privilege I receive in the rights offering?

No. You may exercise any number of your basic subscription rights, or you may choose not to exercise any basic subscription privilege. If you do not exercise any basic subscription privilege, the number of shares of our common stock you own will not change. However, if you choose not to exercise your basic subscription privilege in full, your proportionate ownership interest in the Company will decrease. If you do not exercise your basic subscription privilege in full, you will not be entitled to exercise your over-subscription privilege.

How soon must I act to exercise my subscription rights?

If you received a subscription rights certificate and elect to exercise any or all of your subscription rights, the subscription agent must receive your completed and signed subscription rights certificate and payment for both your basic subscription privilege and any over-subscription privilege you elect to exercise before the rights offering expires on June [•], 2018, at 5:00 PM Eastern Time. If you hold your shares in the name of a broker, dealer, custodian bank, or other nominee, your nominee may establish a deadline before the expiration of the rights offering by which you must provide it with your instructions to exercise your subscription rights, along with the required subscription payment.

May I transfer my subscription rights?

No. The subscription rights may be exercised only by the stockholders to whom they are distributed, and they may not be sold, transferred, assigned or given away to anyone else, other than by operation of law. As a result, a subscription rights certificate may be completed only by the stockholder who receives the statement. The subscription rights will not be listed for trading on any stock exchange or market.

Will our directors and executive officers participate in the rights offering?

To the extent they hold common stock or preferred stock as of the record date, our directors and executive officers will be entitled to participate in the rights offering on the same terms and conditions applicable to other rights holders. None of our directors or executive officers has entered into any binding commitment or agreement to exercise subscription rights received in the rights offering.

Has the board of directors made a recommendation to stockholders regarding the rights offering?

No. Our board of directors is not making a recommendation regarding your exercise of the subscription rights. Stockholders who exercise subscription rights will incur investment risk on new money invested. We cannot predict the price at which our shares of common stock will trade after the rights offering. On March 23, 2018 the closing price of our common stock was $0.4333 per share. The market price for our common stock may be above the subscription price or may be below the subscription price. If you exercise your subscription rights, you may not be able to sell the underlying shares of our common stock in the future at the same price or a higher price. You should make your decision based on your assessment of our business and financial condition, our prospects for the future, the terms of the rights offering and the information contained in this prospectus. See “Risk Factors” for discussion of some of the risks involved in investing in our securities.

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How do I exercise my subscription Rights?

If you are a stockholder of record (meaning you hold your shares of our common stock or preferred stock in your name and not through a broker, dealer, bank, or other nominee) and you wish to participate in the rights offering, you must deliver a properly completed and signed subscription rights certificate, together with payment of the subscription price for both your basic subscription privilege and any over-subscription privilege you elect to exercise, to the subscription agent before 5:00 PM Eastern Time, on June [•], 2018. If you are exercising your subscription rights through your broker, dealer, bank, or other nominee, you should promptly contact your broker, dealer, bank, or other nominee and submit your subscription documents and payment for the shares of common stock subscribed for in accordance with the instructions and within the time period provided by your broker, dealer, bank or other nominee.

What if my shares are held in “street name”?

If you hold your shares of our common stock in the name of a broker, dealer, bank, or other nominee, then your broker, dealer, bank, or other nominee is the record holder of the shares you own. The record holder must exercise the subscription rights on your behalf. Therefore, you will need to have your record holder act for you.

If you wish to participate in this rights offering and purchase shares of common stock, please promptly contact the record holder of your shares. We will ask the record holder of your shares, who may be your broker, dealer, bank, or other nominee, to notify you of this rights offering.

What form of payment is required?

You must timely pay the full subscription price pursuant to the exercise of subscription rights by delivering to the subscription agent a cashier’s check drawn on a U.S. bank; or wire transfer.

When will I receive my new shares of common stock?

The subscription agent will arrange for the issuance of the common stock as soon as practicable after the expiration of the rights offering, payment for the shares of common stock subscribed for has cleared, and all prorating calculations and reductions contemplated by the terms of the rights offering have been effected. All shares that you purchase in the rights offering will be issued in book-entry, or uncertificated, form meaning that you will receive a direct registration (DRS) account statement from our transfer agent reflecting ownership of these securities if you are a holder of record of shares. If you hold your shares in the name of a broker, dealer, bank, or other nominee, DTC will credit your account with your nominee with the securities you purchase in the rights offering.

After I send in my payment and subscription rights certificate to the Subscription Agent, may I cancel my exercise of Subscription Rights?

No. Exercises of subscription rights are irrevocable unless the rights offering is terminated, even if you later learn information that you consider to be unfavorable to the exercise of your subscription rights. You should not exercise your subscription rights unless you are certain that you wish to participate in the rights offering.

How much will the Company receive from the rights offering?

Assuming the rights offering is fully subscribed, including the entire over-subscription privilege, we estimate that the net proceeds from the rights offering will be approximately $5.5 million, after deducting fees and expenses payable to the dealer-manager, and after deducting other expenses payable by us.

What are the limitations on the exercise of the basic subscription privilege and over-subscription privilege?

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no obligation to, reduce the exercise by such stockholder of the basic subscription privilege or the over- subscription privilege to such number of shares of common stock as the Company in its sole discretion shall determine to be advisable in order to preserve the Company’s ability to use the Tax Attributes.

Are there risks in exercising my subscription rights?

Yes. The exercise of your subscription rights involves risks. Exercising your subscription rights involves the purchase of additional shares of our common stock and you should consider this investment as carefully as you would consider any other investment. We cannot assure you that the market price of our common stock will exceed the subscription price, nor can we assure you that the market price of our common stock will not further decline after the rights offering. We also cannot assure you that you will be able to sell shares of our common stock purchased in the rights offering at a price equal to or greater than the subscription price. In addition, you should carefully consider the risks described under the heading “Risk Factors” for discussion of some of the risks involved in investing in our securities.

Can the board of directors terminate or extend the rights offering?

Yes. Our board of directors may decide to terminate the rights offering at any time and for any reason before the expiration of the rights offering. We also have the right to extend the rights offering for period not to exceed 30 days. We do not presently intend to extend the rights offering. We will notify stockholders if the rights offering is terminated or extended by issuing a press release.

If the rights offering is not completed or is terminated, will my subscription payment be refunded to me?

Yes. The subscription agent will hold all funds it receives in a segregated bank account until completion of the rights offering. If we will cancel the offering, you will receive a refund of the money you have advanced, without interest. If you own shares in “street name,” it may take longer for you to receive your subscription payment because the subscription agent will return payments through the record holder of your shares.

How do I exercise my subscription rights if I live outside the United States?

The subscription agent will hold subscription rights certificates for stockholders having addresses outside the United States. To exercise subscription rights, foreign stockholders must notify the subscription agent and timely follow other procedures described in the section entitled “The Rights Offering — Foreign Stockholders”.

What fees or charges apply if I purchase shares of our common stock?

We are not charging any fee or sales commission to issue subscription rights to you or to issue shares to you if you exercise your subscription rights. If you exercise your subscription rights through the record holder of your shares, you are responsible for paying any fees your record holder may charge you.

What are the U.S. federal income tax consequences of exercising subscription rights?

For U.S. federal income tax purposes you will not recognize income or loss in connection with the receipt or exercise of subscription rights in the rights offering. It is our opinion that the rights offering will not be part of a disproportionate distribution, but certain aspects of that determination are not certain. This position is not binding on the Internal Revenue Service (the “IRS”) or the courts, however. You should consult your tax advisor as to the tax consequences of the rights offering in light of your particular circumstances. For a more detailed discussion, see “Material U.S. Federal Income Tax Consequences” on page 32.

To whom should I send my forms and payment?

If your shares are held in the name of a broker, dealer or other nominee, then you should send your subscription documents, rights certificate, notices of guaranteed delivery and subscription payment to that record holder. If you are the record holder, then you should send your subscription documents, rights certificate, notices of guaranteed delivery and subscription payment by hand delivery, first class mail or courier service to:

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Securities Transfer Corporation
2901 N. Dallas Parkway, Suite 380
Plano, Texas 75093

You are solely responsible for completing delivery to the subscription agent of your subscription documents, rights certificate and payment. We urge you to allow sufficient time for delivery of your subscription materials to the subscription agent.

Whom should I contact if I have other questions?

If you have any questions about the rights offering, including questions about subscription procedures and requests for additional copies of this prospectus or other documents, please contact the information agent, Mackenzie Partners, Inc., at (212) 929-5500, (800) 322-2885 (toll free) or by email at rightsoffer@mackenziepartners.com.

Who is the dealer-manager?

RHK Capital will act as dealer-manager for the rights offering. RHK Capital is not underwriting or placing any of the subscription rights being sold in this offering and does not make any recommendation with respect to such rights (including with respect to the exercise of such subscription rights). As contemplated by the dealer-manager agreement, RHK Capital will not solicit any holders of the securities (including the rights) or engage in the offer and sale of such securities in any jurisdiction in which such securities are not qualified or registered for sale in accordance with, or exempt from, the state securities or blue sky laws or Canadian provincial securities laws of such jurisdiction unless and until (i) the Company has advised RHK Capital that such securities have been qualified or registered in accordance with, or are exempt from application of, the state securities or blue sky laws or the Canadian provincial securities laws of such jurisdiction, as applicable, and (ii) RHK Capital possesses all required licenses and registrations to solicit or offer such securities in that jurisdiction. See “Plan of Distribution” on page 38 for a discussion of the fees and expenses to be paid to the dealer-manager in connection with this rights offering.

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WHERE YOU CAN FIND MORE INFORMATION

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act, with respect to the shares of common stock being offered by this prospectus. This prospectus, which constitutes part of the registration statement, does not contain all of the information in the registration statement and its exhibits. For further information about the Company and the common stock offered by this prospectus, we refer you to the registration statement and its exhibits. Statements contained in this prospectus as to the contents of any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects by this reference.

You can read our SEC filings, including the registration statement, over the Internet at the SEC’s website at www.sec.gov. You may also read and copy any document we file with the SEC at its public reference facilities at 100 F Street, NE, Washington, D.C. 20549. You may also obtain copies of these documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference facilities. We will also provide you with a copy of any or all of the reports or documents that have been incorporated by reference into this prospectus or the registration statement of which it is a part upon written or oral request, and at no cost to you. If you would like to request any reports or documents from the company, please contact:

Greg Albright, Head of Global Communications
MoneyOnMobile, Inc.
500 North Akard Street, Ste 2850
Dallas, Texas 75201
Telephone: (214) 758-8600

We are subject to the information reporting requirements of the Securities Exchange Act of 1934, as amended, and we will file reports, proxy statements and other information with the SEC. These reports, proxy statements and other information will be available for inspection and copying at the public reference room and web site of the SEC referred to above. We also maintain a website at www.moneyonmobile.in, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on or accessible through our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus and the documents we incorporate by reference in this prospectus contain forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included or incorporated by reference in this prospectus and the documents we incorporate by reference in this prospectus regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans, and objectives of management are forward- looking statements. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Our forward-looking statements in this prospectus and the documents we incorporate by reference in this prospectus are subject to a number of known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those described or implied in the forward-looking statements, including:

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future financial and operating results;

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our ability to fund operations and business plans, and the timing of any funding or corporate development transactions we may pursue;

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•

the ability of our suppliers to provide products or services in the future of an acceptable quality on a timely and cost-effective basis;

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our ability to continue as a going concern in the face of limited current sales, material negative stockholders’ equity and working capital;

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the ability to manage our considerable short term debt;

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expectations concerning market acceptance of our products and services;

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current and future economic and political conditions;

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overall industry and market trends;

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management’s goals and plans for future operations; and

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other assumptions described in this report underlying or relating to any forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives requires the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. We can give no assurance that any of the assumptions relating to the forward-looking statements included in this prospectus are accurate, and we assume no obligation to update any such forward-looking statements, except as may be required under applicable securities laws.

We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included or incorporated by reference important factors in the cautionary statements included in this prospectus, particularly in the “Risk Factors” section, that could cause actual results or events to differ materially from the forward-looking statements that we make.

You should read this prospectus, the documents incorporated by reference in this prospectus, and the documents that have been filed as exhibits to the registration statement of which this prospectus forms a part or to any document incorporated by reference herein completely and with the understanding that our actual future results may be materially different from what we expect. It is routine for internal projections and expectations to change as the year, or each quarter in the year, progresses, and, therefore, it should be clearly understood that the internal projections and beliefs upon which we base our expectations are made as of the date of this prospectus and may change prior to the end of each quarter or the year.

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RISK FACTORS

An investment in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below together with all of the other information contained in this prospectus, including our consolidated financial statements and the related notes appearing at the end of this prospectus, before making a decision to invest in our common stock or to exercise your subscription rights to purchase shares of our common stock. If any of these risks actually occur, our business, results of operations and financial condition could suffer. In that case, the market price of our common stock could decline, and you may lose all or part of your investment.

Risks Related to this Rights Offering

The Subscription Price determined for this Rights Offering is not necessarily an indication of the value of our common stock.

The Subscription Price is not necessarily related to our book value, results of operations, cash flows, financial condition or the future market value of our common stock. We cannot assure you that you will be able to sell shares purchased in this Rights Offering at a price equal to or greater than the Subscription Price. We do not intend to change the Subscription Price in response to changes in the market price of our common stock prior to the closing of the Rights Offering.

The Rights Offering may cause the price of our common stock to decline.

Depending upon the market price of our common stock at the time of our announcement of the Rights Offering and its terms, including the Subscription Price, together with the number of shares of common stock we could issue if the Rights Offering is completed, may result in a decrease in the market price of our common stock. This decrease may continue after the completion of the Rights Offering. If that occurs, your purchase of shares of our common stock in the Rights Offering may be at a price greater than the prevailing market price.

Because you may not revoke or change your exercise of the Subscription Rights, you could be committed to buying shares above the prevailing market price at the time the Rights Offering is completed.

Once you exercise your Subscription Rights, you may not revoke or change the exercise. The market price of our common stock may decline before the Subscription Rights expire. If you exercise your Subscription Rights, and, afterwards, the market price of our common stock decreases below the Subscription Price, you will have committed to buying shares of our common stock at a price above the prevailing market price and could have an immediate unrealized loss.

Our common stock is traded on the OTC Market Group’s OTCQB under the symbol “MOMT,” and the closing sale price of our common stock on March 23, 2018 was $0.4333 per share. There can be no assurances that the market price of our common stock will equal or exceed the Subscription Price at the time of exercise or at the expiration of the Subscription Rights offering period.

You may not be able to resell any shares of our common stock that you purchase pursuant to the exercise of Subscription Rights immediately upon expiration of the Subscription Rights offering period or be able to sell your shares at a price equal to or greater than the Subscription Price.

If you exercise Subscription Rights, you may not be able to resell the common stock purchased by exercising your Subscription Rights until you, or your broker, custodian bank or other nominee, if applicable, have received those shares. Moreover, you will have no rights as a shareholder of the shares you purchased in the Rights Offering until we issue the shares to you. Although we will endeavor to issue the shares as soon as practicable after completion of the Rights Offering, including the guaranteed delivery period and after all necessary calculations have been completed, there may be a delay between the Expiration Date of the Rights Offering and the time that the shares are issued. In addition, we cannot assure you that, following the exercise of your Subscription Rights, you will be able to sell your common stock at a price equal to or greater than the Subscription Price.

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If you do not exercise your Subscription Rights, you will suffer dilution.

If you do not exercise your Subscription Rights, you will suffer dilution of your percentage ownership of our equity securities relative to shareholders who exercise their Subscription Rights.

As of March 23, 2018, there were 78,324,499 shares of our common stock outstanding. We anticipate issuing a total of 15,000,000 shares of common stock in connection with the Rights Offering.

Based on the number of shares of common stock outstanding as of March 23, 2018 and assuming that no options are exercised and there are no other changes in the number of outstanding shares prior to the expiration of the Rights Offering, if we issue all shares of common stock available in this Rights Offering (to shareholders participating in the Rights Offering), we would have 93,324,499 shares of common stock outstanding following the completion of the Rights Offering.

We may cancel the Rights Offering at any time prior to the expiration of the Rights Offering period, and neither we nor the Subscription Agent will have any obligation to you except to return your subscription payment.

We may at our sole discretion cancel the Rights Offering at any time prior to the expiration of the Rights Offering period. If we elect to cancel the Rights Offering, neither we nor the Subscription Agent will have any obligation with respect to the Subscription Rights except to return to you, without interest or penalty, as soon as practicable any subscription payments.

If you do not act promptly and follow the subscription instructions, your exercise of Subscription Rights will be rejected.

Shareholders that desire to purchase shares in the Rights Offering must act promptly to ensure that all required forms and payments are actually received by the Subscription Agent prior to the Expiration Date of the Rights Offering. If you are a beneficial owner of shares, you must act promptly to ensure that your broker, dealer, custodian bank or other nominee acts for you and that all required forms and payments are actually received by the Subscription Agent prior to the expiration of the Rights Offering period. We are not responsible if your broker, dealer, custodian bank or nominee fails to ensure that all required forms and payments are actually received by the Subscription Agent prior to the expiration of the Rights Offering period. If you fail to complete and sign the required subscription forms, send an incorrect payment amount or otherwise fail to follow the subscription procedures that apply to your exercise in the Rights Offering prior to the expiration of the Rights Offering period, the Subscription Agent may, depending on the circumstances, reject your subscription or accept it only to the extent of the payment received. Neither we nor the Subscription Agent undertakes to contact you concerning, or attempt to correct, an incomplete or incorrect subscription form. We have the sole discretion to determine whether the exercise of your Subscription Rights properly and timely follows the subscription procedures.

If you make payment of the Subscription Price by uncertified personal check, your check may not clear in sufficient time to enable you to purchase shares in the Rights Offering.

Any uncertified personal check used to pay the Subscription Price in the Rights Offering must clear prior to the Expiration Date of the Rights Offering, and the clearing process may require five or more business days. As a result, if you choose to use an uncertified personal check to pay the Subscription Price, it may not clear prior to the Expiration Date, in which event you would not be eligible to exercise your Subscription Rights. You may eliminate this risk by paying the Subscription Price by certified or cashier’s check or bank draft drawn on a U.S. bank.

The receipt of Subscription Rights may be treated as a taxable dividend to you.

The U.S. federal income tax consequences of the Rights Offering will depend on whether the Rights Offering is part of a “disproportionate distribution.” We intend to take the reporting position the Subscription Rights issued pursuant to the Rights Offering (a) are not part of a “disproportionate distribution” and (b) will not be a taxable distribution with respect to your existing securities. The disproportionate distribution rules are complicated, however, and their application is uncertain, and thus counsel is not rendering an opinion regarding the application of such rules. Accordingly, it is possible that

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the IRS could successfully challenge our reporting position and assert that the Rights Offering is a taxable distribution. For a discussion of the tax consequences if this is non-taxable and the tax consequences if this is taxable, see the discussion in “Certain Material U.S. Federal Income Tax Consequences.”

The Subscription Rights are non-transferable and thus there will be no market for them.

You may not sell, transfer or assign your Subscription Rights to anyone else. We do not intend to list the Subscription Rights on any securities exchange or any other trading market. Because the Subscription Rights are non-transferable, there is no market or other means for you to directly realize any value associated with the Subscription Rights.

We will have considerable discretion over the use of the proceeds of the Rights Offering and may not realize an adequate return.

We will have considerable discretion in the application of the net proceeds of this offering. We have not determined the amount of net proceeds that we will apply to various corporate purposes. We may use the proceeds for purposes that do not yield a significant return, if any, for our stockholders.

Risks Relating To the Company

We have incurred significant losses since inception.

We had an accumulated deficit of $59.1 million as of December 31, 2017. We have historically incurred operating losses and may continue to incur operating losses for the foreseeable future. As such, we are subject to all risks incidental to the sales and development of our product offerings, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business. Additionally, the Company’s unaudited interim financial statements as of December 31, 2017 and audited financial statements as of March 31, 2017 have been prepared on the assumption that the Company will continue as a going concern. Our independent accountants have issued in their report stating that our recurring operating losses and negative cash flows from operating activities raise substantial doubt as to our ability to continue as a going concern. There can be no assurance that we will be able to continue as a going concern.

Our success will be dependent on local management team for the foreseeable future.

We believe our success depends on the continued service of local management. Although we currently intend to retain our existing management, we cannot assure such individuals will remain with us. We have no employment agreements with any individuals. The unexpected loss of the services of one or more of our key executives, directors, or advisors, or our inability to find suitable replacements within a reasonable period of time following any such loss, could have a material adverse effect on our ability to execute our business plan and, therefore, have a material adverse effect on our financial condition and results of operations.

We may require additional capital to support business growth, and this capital may not be available on acceptable terms, if at all.

Projected success and growth are dependent on sufficient working capital to fund operations and develop business. The Company’s future capital requirements will depend on many factors, including the extent to which the business is successful, any level of competition experienced by the business, general economic market conditions and the extent and duration of operating losses. The availability of additional funding necessary in order to sustain our operations in the future is uncertain. Additional financing may not be available on terms favorable to us, or at all.

If we are unable to raise additional funds in the public or private markets on acceptable terms, we might not be able to take advantage of unanticipated opportunities, develop new services or products, or otherwise respond to unanticipated competitive pressures, and our business operations and financial condition could be harmed. Without adequate financing, the Company may be required to delay, scale back or eliminate certain personnel, advertising, or marketing efforts or other initiatives. Any inability to obtain additional financing, if required, would have a material adverse effect on the Company’s business and prospects.

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The Company may also be required to borrow additional funds to meet its capital requirements. If the Company borrows additional funds, the Company cannot provide any assurance that such debt can be paid in a timely fashion, which failure may result in material adverse consequences to the Company. There can be no assurance that the Company will be able to secure future debt financing on terms acceptable to the Company or at all. Any debt incurred by the Company will result in the lender thereof having a prior claim to the Company’s assets ahead of any shareholder, including purchasers under the Rights Offering, which could adversely affect the investors’ ability to recover all or any portion of their investment in the Company in the event of insolvency or dissolution

Evolving products and technological changes could make our services obsolete.

We anticipate the services we offer will continue to evolve and be subject to technological change. Accordingly, our ability to maintain a competitive advantage and build the business requires us to continually invest in research and development. Many of the companies we expect to compete with have greater capital resources, research and development staffs, and facilities. Our services could be rendered obsolete by the introduction and market acceptance of competing services, technological advances by current or potential competitors, or other approaches. Additionally, our processing technology platform will require upgrades to meet our business plan, and new problems or delays could develop and limit our ability to grow.

We anticipate the industry in which we operates will be subject to intense competition.

There are several direct competitors conducting business in India, and some have access to large markets of existing phone subscribers. Once these companies fully implement their strategies, the competition in India for the services being provided by us may intensify significantly.

A significant portion of our total assets consists of goodwill and intangible assets, which are subject to a periodic impairment analysis, and a significant impairment determination in any future period could have an adverse effect on our results of operations even without a significant loss of revenue or increase in cash expenses attributable to such period.

We have goodwill and other intangible assets, net totaling $12.7 million and $4.0 million, respectively, at December 31, 2017 relating to our India operations. We perform an annual impairment assessment in the fourth quarter of each fiscal year, or more frequently if indicators of potential impairment exist. The estimated fair value of goodwill could change if we are unable to achieve operating results at the levels that have been forecast, the market valuation of those business units decreases based on transactions involving similar companies, or there is a permanent, negative change in the market demand for the services offered. These changes could result in an impairment of the existing goodwill and/or intangible assets balance that could require a material non-cash charge to our results of operations.

Political, economic, social, and other factors in India may adversely affect businesses.

The ability for businesses to grow may be adversely affected by political, economic, and social factors or changes in Indian law or regulations or the status of India’s relations with other countries. In addition, there may be significant differences between the Indian and U.S. economies such as the rate of gross domestic product growth, the rate of inflation, capital reinvestment, resource self-sufficiency, and balance of payments positions. Government actions in the future could have a significant effect on the Indian economy and have a material adverse effect on our ability to achieve business objectives.

Terrorist attacks and other acts of violence or war within India or involving India and other countries could adversely affect the financial markets and businesses.

Terrorist attacks and other acts of violence could have the direct effect of destroying property causing a loss and interruption of business. For example, India has, from time to time, experienced civil unrest and hostilities with neighboring countries such as Pakistan. The longstanding dispute with Pakistan over the border Indian states of Jammu and Kashmir remains unresolved. If the Indian government is unable to control the violence and disruption associated with these tensions, the results could destabilize the economy

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and, consequently, adversely affect businesses. Also, India has seen an increase in politically motivated insurgencies and a fairly active communist following. Any hostilities or civil unrest could adversely influence the Indian economy and, as a result, negatively affect businesses.

Changes in the exchange rate of the Indian rupee versus the U.S. dollar result in earnings volatility and could negatively impact our reported earnings and the ultimate return on our investment.

MoneyOnMobile’s functional currency is the Indian rupee, and its financial statements must be converted to U.S. dollars when preparing our financial statements. Changes in the exchange rate between the two currencies can cause reported financial results to fluctuate and a weakening rupee relative to the U.S. dollar would negatively impact our earnings. Additionally, the return on our investment in DPPL and MMPL, if any, may be less than expected if the exchange rates are less favorable at the time of realization.

Exchange controls in India may limit our ability to utilize cash flow effectively.

We are subject to India’s rules and regulations on currency conversion with respect to our investments in DPPL and MMPL. In India, the Foreign Exchange Management Act (“FEMA”) regulates the conversion of the Indian rupee into foreign currencies. Today, companies in many industries are permitted to operate in India without any special restrictions, effectively placing them on par with wholly, Indian-owned companies. Foreign exchange controls also have been substantially relaxed. However, the Indian foreign exchange market is not yet fully developed, and there is no assurance the Indian authorities will not revert to regulating companies and imposing new restrictions on the convertibility of the Indian rupee. Any future restrictions on currency exchanges may limit our ability to repatriate India earnings or receive dividends.

We may have difficulty effecting service of process or enforcing judgments obtained in the U.S. against our subsidiaries.

MoneyOnMobile is organized in India and all of its assets are located in India. As a result, in the event of a dispute between our India subsidiaries and us, we may be unable to effect service of process outside of India. In addition, we may be unable to enforce against India operations judgments obtained in U.S. courts.

We have a material weakness in our internal control over financial reporting.

Our management has identified a material weakness in our internal control over financial reporting and as a result concluded that our disclosure controls and procedures were not effective as of December 31, 2017. Although management is in the process of developing and implementing a plan to remediate the deficiency in internal control, there is no assurance that the plan will remediate the material weakness or ensure that our internal controls over financial reporting will be effective in the future.

We have relationships with third parties to provide software that integrates into our platform, and our business could be harmed if we are not able to continue these relationships.

We use software and services licensed and procured from third parties to develop and offer our platform. We may need to obtain future licenses and services from third parties to use intellectual property and technology associated with the development of our platform, which might not be available to us on acceptable terms, or at all. Any loss of the right to use any software or services required for the development and maintenance of our platform could result in termination or delays in some of our services on our platform until equivalent technology is either developed by us, or, if available from others, is identified, obtained, and integrated, which could harm our platform and business. Any errors or defects in third-party software or services could result in errors or a failure of our platform.

Our business could be damaged and subjected to liabilities if there are any cyberattacks trying to disrupt/impede our services to our retailers and their customers.

Our brand, reputation and ability to retain and service our retailers are dependent on the reliable performance of our platform. In the event our platform or business could be negatively impacted. Additionally, our servers could be subjected to denial of service attacks or other methods of blocking communication between our retailers and our system.

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We also store information required to perform the transaction, including but not limited to a consumer’s phone number, their merchant identification number, and bank account details. And with some of the new KYC regulations that have gone into place, we now have to collect and store national ID of some of the consumers and retailers using our platform.

If this data were to be compromised and/or exposed, our business could suffer due to the loss of customers, due to the government revoking our license and/or due to the loss of retailers. We could also suffer financial liabilities due to retailers’ balances being maliciously diverted to an external bank account.

We may rely on third parties when deploying our infrastructure, and in doing so, expose it to security risks outside of our direct control. We rely on outside vendors and contractors to perform services necessary for the operation of the business, and they may fail to adequately secure our user and company content.

We also rely on third party software in our system. This external software may contain defects or lack the necessary security measures. This may expose our business to risks of data exposure and loss of business continuity, which could adversely affect our business.

Our business depends upon the interoperability of our platform across mobile devices, operating systems, and third-party software that we do not control. And we rely on the network connectivity provided by both mobile operators and internet service providers which are also outside our control.

Retailers use our platform on a variety of mobile devices with different models and manufacturers and personal computers which are using operating systems (e.g. different releases of Android, iOS, MacOS, Windows and Linux) and third-party software that we do not control (e.g. web browsers). Changes to these operating systems, networks and third-party software may disrupt our service or prevent it from operating.

Limited Protection of Intellectual Property

Our success and ability to compete in our markets depend, in part, upon our proprietary technology. The Company relies primarily on a combination of copyright, trademarks, service marks, trade secrets, contracts, licenses and technical measures to protect its proprietary rights, which may only provide limited protection. The Company may have no adequate means of protecting its intellectual property and, if the Company does not adequately protect its intellectual property, its business, prospects, financial condition and results of operations could be harmed. Unauthorized parties may attempt to copy or imitate aspects of the Company’s services or products, or obtain and use information and processes that the Company regards as proprietary. It is also possible that any potential future trademarks, service marks, copyrights or other intellectual property rights may be found invalid or unenforceable, or otherwise be successfully challenged. If any such intellectual property rights were to be successfully challenged by a third party, the Company could be deprived of its right to use, or prevent others from using, the methods, marks or other property covered by such intellectual property rights.

We rely on financial institutions to process our payment transactions. Should any of these institutions decide to stop processing our payment transactions, our business could suffer.

Because we are not a bank, we must rely on service operators to process our transactions. If we could not obtain these processing services on acceptable terms from these sources or elsewhere, and if we could not switch to another processor quickly and smoothly, our business could suffer materially.

Risks Relating to Industry

The payments industry is highly competitive and we expect to compete with larger firms having greater financial resources. Such competition could increase and adversely influence our prices to merchants and our operating margins.

We compete in a highly competitive market with a wide variety of processing service providers. Developing and maintaining our growth will depend on a combination of the continued growth in electronic payment transactions and our ability to increase our market share. If competition causes us to reduce the prices we charge, we will have to aggressively control our costs in order to maintain acceptable results of operations.

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Our continued growth depends on our ability to maintain or increase our average net revenue yield.

One of the key measures we use to assess our financial performance is our average net revenue yield, which we calculate by dividing adjusted net revenue by the total payment volume of the transactions we process. Our average net revenue yield may be affected by a number of factors, including changes in the mix of products our retailers process on the platform, increased competition, pressure from merchants and/or retailers, and acquisitions. In order to maintain our competitiveness, we must continue to ensure that our payment processing system provides a more convenient and attractive option for retailers, merchants and customers than alternative systems that may not require payment of a processing fee. Retail banks and various payment service providers are already and may become available to our consumers. To attract consumers, we also offer certain services on a commission-free basis, such as person-to-person transfers and certain payments in e-commerce. Despite our efforts, consumers may still choose to use other payment systems, even if those systems do not offer the convenience that we do, because they charge lower fees. In addition, because retailers are able to switch between different payment processing systems, we may face additional pressure to reduce the fees we charge due to increased competition from other payment service providers.

We are subject to the economic risk and business cycles of our merchants and retailers and the overall level of consumer spending.

The payment services industry depends heavily on the overall level of consumer spending. We are exposed to general economic conditions that affect consumer confidence, consumer spending, consumer discretionary income or changes in consumer purchasing habits. Economic factors such as employment levels, business conditions, energy and fuel costs, interest rates, inflation rate and the strength of the rupee against foreign currencies could reduce consumer spending or change consumer purchasing habits. A reduction in the amount of consumer spending could result in a decrease in our revenue and profits. If our retailers make fewer sales of their products and services using our services or consumers spend less money per transaction, we will have fewer transactions to process at lower amounts, resulting in lower revenue. A further weakening in the economy could have a negative impact on our retailers as well as consumers who purchase products and services using our payment processing systems, which could, in turn, negatively impact our business, financial condition and results of operations, particularly if the recessionary environment disproportionately affects some of the market segments that represent a larger portion of our payment processing volume. In addition, these factors could force some of our merchants and/or retailers to liquidate their operations or go bankrupt, or could cause our retailers to reduce the number of their locations or hours of operation, resulting in reduced transaction volumes. We also have a certain amount of fixed costs, including salaries and rent, which could limit our ability to adjust costs and respond quickly to changes affecting the economy and our business.

We do not control the rates of the fees levied by our retailers on consumers.

Our retailers pay us an agreed fee using a portion of the fees levied by them on consumers for some of our services, for example domestic money transfer. The fee paid to us by the retailers is based on a percentage of the value of each transaction that we process. However, in certain cases the amount of fees levied by a retailer on a consumer for each particular transaction is determined by such retailer at its own discretion. We do not cap the amount of such fees or otherwise control it. We believe that the fees set by our retailers are market-driven, and that our interests and our retailers’ interests are aligned with a view to maintaining fees at a level that would simultaneously result in our retailers’ profitability and customer satisfaction. However, we can provide no assurance that our retailers will not raise fees to a level that will adversely affect the popularity of our products among consumers. At the same time, if we are forced to cap customer fees to protect the strength of our brand or otherwise, we may lose a significant number of retailers, which would reduce the penetration of our physical distribution network. In limited instances, we have introduced such caps at the request of our retailers. No assurance can be made that this trend will not increase. Material increases in customer fees by our retailers or the imposition of caps on the rates of such fees by us could have an adverse effect on our business, financial condition and results of operations.

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Risks Relating To Government Regulation

The payments industry in India is subject to extensive regulation.

Payment system operators like MoneyOnMobile, are subject to the Indian Payments and Settlement Systems Act 2007 and operate under the authority and board oversight of the Reserve Bank of India (“RBI”). Our existing license with the Reserve Bank of India authorizes us to process domestic remittance transactions directly through the government-operated Immediate Payment Switch (IMPS). Although our license is valid through October 24, 2018, the RBI has the authority to revoke our license at any time should it determine that our operations do not continue to meet applicable standards primarily relating to the custody of, and accountability for, consumer funds. Alternative methods to process the same domestic remittance transactions exist which may not require a license, including mobile phone top up and other bill payment transactions, and we may elect in the future to adopt such alternative methods. Absent our successful adoption at some future date of such alternative methods, of which there can be no assurance, the non-renewal or earlier revocation of our existing RBI license could adversely affect our business operations.

Our business activities are subject to complex and evolving foreign laws and regulations regarding privacy, data protection, mobile payment services, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, increased cost of operations, or declines in user growth or engagement, or otherwise harm our business.

We are subject to a variety of laws and regulations abroad that involve matters central to our business, including user privacy, data protection, intellectual property, distribution, electronic contracts and other communications, competition, consumer protection, taxation, banking, securities law compliance, and mobile payment services. The introduction of new products or expansion of our activities in certain jurisdictions may subject us to additional laws and regulations. In addition, foreign data protection, privacy, and other laws and regulations can be more restrictive than those in the United States. These foreign laws and regulations, which may be enforced by private parties or government entities, are constantly evolving and can be subject to significant change. In addition, the application and interpretation of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate, and may be interpreted and applied inconsistently from country to country and inconsistently with our current policies and practices. These laws and regulations can be costly to comply with and can delay or impede the development of new products, result in negative publicity, increase our operating costs, require significant management time and attention, and subject us to inquiries or investigations, claims or other remedies, including fines or demands that we modify or cease existing business practices.

We are subject to federal and state laws regarding anti-money laundering, including the Patriot Act, and if we break any of these laws we could be subject to significant fines and/or penalties, and our ability to conduct business could be limited.

We are subject to U.S. federal anti-money laundering laws and the requirements of the Office of Foreign Assets Control (OFAC), which prohibit us from transmitting money to specified countries or on behalf of prohibited individuals. The Patriot Act in the U.S. mandates several anti-money laundering requirements. The federal government or the states may elect to impose additional anti-money laundering requirements. Changes in laws or regulations that impose additional regulatory requirements, including the Patriot Act, could increase our compliance and other costs of doing business, and therefore have an adverse effect on our results of operation.

Failure to comply with the laws and regulatory requirements of federal and state regulatory authorities could result in, among other things, revocation of required registrations, loss of approved status, termination of contracts with banks, administrative enforcement actions and fines, class action lawsuits, cease and desist orders and civil and criminal liability. The occurrence of one or more of these events could materially adversely affect our business, financial condition and results of operations.

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If we were to inadvertently transmit money on behalf of, or unknowingly conduct business with, a prohibited individual, we could be required to pay significant damages, including fines and penalties. Likewise, any intentional or negligent violation of anti-money laundering laws by our employees could lead to significant fines and/or penalties, and could limit our ability to conduct business in some jurisdiction.

Risks Relating To Our Common Stock

Changes to current accounting principles and our accounting policies could have a significant effect on the Company’s reported financial results or the way in which it conducts its business.

We prepare our financial statements in conformity with U.S. GAAP, which are subject to interpretation by the Financial Accounting Standards Board, the American Institute of Certified Public Accountants, the U.S. Securities and Exchange Commission, and various other authorities formed to interpret, recommend, and announce appropriate accounting principles. A change in these principles and/or management’s own interpretation and application of such principles could have a significant effect on our reported financial results and may even retroactively affect the accounting for previously reported transactions. Our accounting policies that recently have been, or may in the future, be affected by changes in the following accounting principles:

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revenue recognition;

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accounting for goodwill and other intangible assets; and

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accounting issues related to certain contingent convertible debt instruments and their effect on diluted earnings per share.

Changes in these or other rules may have a significant adverse effect on our reported financial results or in the way in which we conduct our business.

Our issuance of preferred stock could adversely affect the value of our common stock.

Our Certificate of Formation provides for the issuance of up to 1.0 million shares of what is commonly referred to as “blank check” preferred stock. Such stock may be issued by our Board of Directors from time to time, without shareholder approval, as one or more separate series of shares as designated by resolution of our Board setting forth the relative rights, privileges, and preferences of the series, including, if any, the: (i) dividend rate; (ii) price, terms, and conditions of redemption; (iii) voluntary and involuntary liquidation preferences; (iv) provisions of a sinking fund for redemption or repurchase; (v) terms of conversion to common stock, including conversion price; and (vi) voting rights. The issuance of such shares, with superior rights and preferences, could adversely affect the interests of holders of our common stock and potentially the value of our common stock. Our ability to issue such preferred stock also could give our Board of Directors the ability to hinder or discourage any attempt to gain control of us by a merger, tender offer at a control premium price, proxy contest, or otherwise.

Our executive officers, directors, and major shareholders hold a majority of our common stock and may be able to prevent other shareholders from influencing significant corporate decisions.

Our directors and executive officers beneficially own a significant portion of our outstanding common stock. As a result, acting together they would be able to influence many matters requiring shareholder approval, including the election of directors and approval of mergers and other significant corporate transactions. This concentration of ownership may have the effect of delaying, preventing, or deterring a change in control, and could deprive our shareholders of an opportunity to receive a premium for their shares of common stock as part of a sale of our company and may affect the market price of our stock.

The price of our common stock may be volatile, which could cause our investors to incur trading losses and fail to resell their shares at or above the price they paid for them.

We cannot predict the extent to which investor interest will lead to the development of an active trading market in our common stock. The failure to achieve and maintain an active market for our common stock means that you may not be able to dispose of your common stock in a desirable manner and the price for our shares may fluctuate greatly.

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Moreover, some companies that have had volatile market prices for their securities have been subject to securities class action suits filed against them. If a suit were to be filed against us, regardless of the outcome, it could result in substantial costs and a diversion of our management’s attention and resources. This could have a material adverse effect on our business, results of operations and financial condition. Further, our ability to file the Company’s periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 on a timely basis may adversely impact the your ability to trade the Company’s shares on the secondary market.

We incur substantial costs as a result of operating as a public company, and our management is required to devote substantial time to comply with public company regulations.

We are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002 as well as other federal and state laws. These requirements may place a strain on our people, systems, and resources. The Exchange Act requires that we file annual, quarterly, and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls over financial reporting, significant resources and management oversight are required. This may divert management’s attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

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THE RIGHTS OFFERING

The following summary contains basic information about our common stock and the offering and is not intended to be complete. It does not contain all the information that may be important to you. Before deciding whether to exercise your Subscription Rights, you should carefully read this Prospectus or any prospectus supplement, including the information set forth under the heading “Risk Factors” and the information that is incorporated by reference into this Prospectus or any prospectus supplement. For a more complete understanding of our common stock, you should read the section entitled “Description of Securities” in this prospectus.

The following describes the Rights Offering in general and assumes, unless specifically provided otherwise, that you are a record holder of our Common Stock or our Preferred Stock on the Record Date. If you hold your shares in a brokerage account or through a dealer or other nominee, please also refer to “— Notice to Brokers and Nominees” below.

The Subscription Rights

We are distributing to the record holders, at no charge, non-transferable subscription rights to purchase shares of common stock at a subscription price per unit to be determined. The subscription price will be equal to $[•]. Each subscription right will entitle you to purchase one share of our common stock. Each record holder will receive one subscription right for each whole share of our common stock owned by such record holder and one subscription right for each whole share of common stock that would be own upon full conversion of the shares of preferred stock owned by such record holder as of the record date. Each subscription right entitles the record holder to a basic subscription privilege and an over-subscription privilege.

Basic Subscription Privilege

Your basic subscription privilege will entitle you to purchase one share of common stock, at the subscription price, held by you on the record date of April [•], 2018. For example, if you owned 100 shares of common stock as of the record date, you will receive 100 subscription rights and will have the right to purchase 100 shares of common stock. You may exercise all or a portion of your basic subscription privilege or you may choose not to exercise any basic subscription privilege at all. Subject to proration, if applicable, we will seek to honor your basic subscription request in full. In the event that holders exercise subscription rights in excess of $6 million (not including the over-subscription privilege), the amount subscribed for by each person will be proportionally reduced, based on the amount subscribed for by each person (not including any Over-Subscription Privilege subscribed for). See “The Rights Offering — Limitation on the Purchase of Shares of Common Stock” for a description of certain limitations on purchase.

Over-Subscription Privilege

If you exercise your basic subscription privilege in full, you may also choose to exercise your over-subscription privilege. Subject to proration, if applicable, we will seek to honor the over-subscription privilege requests in full. If over-subscription privilege requests exceed the number of shares of common stock available, however, we will allocate the available shares of common stock pro rata among the record holders exercising the over-subscription privilege in proportion to the number of shares of our common stock each of those record holders owned on the record date, relative to the number of shares owned exercising the over-subscription privilege. If this pro rata allocation results in any record holder receiving a greater number of shares of common stock than the record holder subscribed for pursuant to the exercise of the over-subscription privilege, then such record holder will be allocated only that number of shares of common stock for which the record holder oversubscribed, and the remaining shares of common stock will be allocated among all other record holders exercising the over-subscription privilege on the same pro rata basis described above. The proration process will be repeated until all shares of common stock have been allocated.

Securities Transfer Corporation, the subscription agent for the rights offering, will determine the over-subscription allocation based on the formula described above.

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To the extent the aggregate subscription payment of the actual number of unsubscribed shares of common stock available to you pursuant to the over-subscription privilege is less than the amount you actually paid in connection with the exercise of the over-subscription privilege, you will be allocated only the number of unsubscribed shares of common stock available to you, and any excess subscription payments will be returned to you, without interest or penalty, as soon as practicable after expiration of the rights offering.

We can provide no assurances that you will actually be entitled to purchase the number of shares of common stock issuable upon the exercise of your over-subscription privilege in full at the expiration of the rights offering. We will not be able to satisfy any requests for shares of common stock pursuant to the over-subscription privilege if all of our stockholders exercise their basic subscription privilege in full, and we will only honor an over-subscription privilege to the extent sufficient shares of common stock are available following the exercise of basic subscription privilege.

Limitation on the Purchase of Shares of Common Stock

You may only purchase the number of whole shares of common stock purchasable upon exercise of the number of basic subscription privilege distributed to you in the rights offering, plus the over-subscription privilege, if any. Accordingly, the number of shares of common stock that you may purchase in the rights offering is limited by the number of shares of our common stock you held on the record date and by the extent to which other stockholders exercise their basic subscription privilege and over-subscription privileges, which we cannot determine prior to completion of the rights offering.

Subscription Price

The subscription price will be equal to $[•]. The subscription price does not necessarily bear any relationship to our past or expected future results of operations, cash flows, current financial condition, or any other established criteria for value.

Determination of Subscription Price

In the determining the subscription price, the board of directors considered a variety of factors including those listed below:

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our need to raise capital in the near term to continue our operations;

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the current and historical trading prices of our common stock;

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a price that would increase the likelihood of participation in the rights offering;

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the cost of capital from other sources;

The subscription price does not necessarily bear any relationship to any established criteria for value. No valuation consultant or investment banker has opined upon the fairness or adequacy of the subscription price. You should not consider the subscription price as an indication of actual value of the company or our common stock. you should not assume or expect that, after the rights offering, our shares of common stock will trade at or above the subscription price in any given time period. The market price of our common stock may decline after the rights offering. We cannot assure you that you will be able to sell the shares of our common stock purchased during the rights offering at a price equal to or greater than the subscription price. You should obtain a current price quote for our common stock before exercising your subscription rights and make your own assessment of our business and financial condition, our prospects for the future, and the terms of this rights offering. Once made, all exercises of subscription rights are irrevocable.

Non-Transferability of Subscription Rights

The subscription rights are non-transferable (other than by operation of law) and, therefore, you may not sell, transfer, assign or give away your subscription rights to anyone. The subscription rights will not be listed for trading on any stock exchange or market.

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Expiration Date; Extension

The subscription period, during which you may exercise your subscription rights, expires at 5:00 PM Eastern Time, on June [•], 2018, which is the expiration of the rights offering. If you do not exercise your subscription rights before that time, your subscription rights will expire and will no longer be exercisable. We will not be required to issue shares to you if the subscription agent receives your subscription rights statement or your subscription payment after that time. We have the option to extend the rights offering in our sole discretion, for a period not to exceed 30 days although we do not presently intend to do so. We may extend the rights offering by giving oral or written notice to the subscription agent before the rights offering expires. If we elect to extend the rights offering, we will issue a press release announcing the extension no later than 9:00 AM Eastern Time, on the next business day after the most recently announced expiration date of the rights offering.

If you hold your shares of common stock in the name of a broker, dealer, custodian bank or other nominee, the nominee will exercise the subscription rights on your behalf in accordance with your instructions. Please note that the nominee may establish a deadline that may be before 5:00 PM Eastern Time, on June [•], 2018, which is the expiration date that we have established for the rights offering.

Termination

We may terminate the rights offering at any time and for any reason prior to the completion of the rights offering. If we terminate the rights offering, we will issue a press release notifying stockholders and the public of the termination.

Return of Funds upon Completion or Termination

The subscription agent will hold funds received in payment for shares in a segregated account pending completion of the rights offering. The subscription agent will hold this money until the rights offering is completed or is terminated. You will not be able to rescind your subscription. Any excess subscription payments, including refunds resulting from will be returned to you as soon as practicable after the expiration of the rights offering, without interest or penalty. If the rights offering is terminated for any reason, all subscription payments received by the subscription agent will be returned as soon as practicable, without interest or penalty.

Shares of Our Common Stock Outstanding After the Rights Offering

On March 23, 2018, 78,324,499 shares of our common stock were outstanding. Based on the foregoing, and assuming no other transactions by us involving our common stock prior to the expiration of the rights offering, if the rights offering is fully subscribed for the maximum number of shares of common stock available, approximately 93,324,499 shares of our common stock will be issued and outstanding. The exact number of shares of common stock that we will issue in this rights offering will depend on Subscription Price and the number of shares of common stock that are subscribed for in the Rights Offering.

Methods for Exercising Subscription Rights

The exercise of subscription rights is irrevocable and may not be canceled or modified. You may exercise your subscription rights as follows:

Subscription by Record Holders

If you are a stockholder of record, the number of shares of common stock you may purchase pursuant to your subscription rights in indicated on the subscription rights statement. You may exercise your subscription rights by properly completing and executing the subscription rights certificate and forwarding it, together with your full payment, to the subscription agent at the address given below under “subscription agent,” to be received before 5:00 PM Eastern Time, on June [•], 2018.

Subscription by Beneficial Owners

If you are a beneficial owner of shares of our common stock that are registered in the name of a broker, dealer, custodian bank, or other nominee, you will not receive a subscription rights certificate.

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Instead, we will issue two subscription rights to such nominee record holder for each share of our common stock held by such nominee at the record date. If you are not contacted by your nominee, you should promptly contact your nominee in order to subscribe for shares in the rights offering and follow the instructions provided by your nominee.

To properly exercise your over-subscription privilege, you must deliver the subscription payment related to your over-subscription privilege before the rights offering expires.

Subscription Agent

The subscription agent for this offering is Securities Transfer Corporation. The address to which subscription rights statements and payments should be mailed or delivered by overnight courier is provided below. If sent by mail, we recommend that you send documents and payments by registered mail, properly insured, with return receipt requested, and that you allow a sufficient number of days to ensure delivery to the subscription agent before the rights offering expires.

Securities Transfer Corporation
2901 Dallas Parkway, Suite 380
Plano, Texas 75093

If you deliver subscription documents or rights certificates in a manner different than that described in this prospectus, then we may not honor the exercise of your subscription rights.

You should direct any questions or requests for assistance concerning the method of subscribing for the shares of our common stock or for additional copies of this prospectus to the information agent, Mackenzie Partners, Inc. at (212) 929-5500, (800) 322-2885 (toll free) or via email at rightsoffer@mackenziepartners.com.

Payment method

Payments must be made in full in U.S. Currency by cashier’s check or by wire transfer, and payable to “Securities Transfer Corporation., as subscription agent for MoneyOnMobile, Inc.” You must timely pay the full subscription payment, including payment for the over-subscription privilege, for the full number of shares of common stock you wish to acquire pursuant to the exercise of subscription rights by delivering a:

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Cashier’s check, drawn on a U.S. Bank payable to “Securities Transfer Corporation., as subscription agent for MoneyOnMobile, Inc.”; or

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Domestic wire transfer of immediately available funds directly to the account maintained by Securities Transfer Corporation, as subscription agent, for purposes of accepting subscriptions in this rights offering at EagleBank, 7815 Woodmont Avenue, Bethesda, MD 20814, Credit: Securities Transfer Corporation as Rights Agent for MoneyOnMobile, Inc., ABA Number: 055003298, Account # 200303717, for further credit to MoneyOnMobile, Inc. and name of the subscription rights holder.

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International wire transfer of immediately available funds directly to the account maintained by Securities Transfer Corporation, as subscription agent, for purposes of accepting subscriptions in this rights offering at Wells Fargo Bank NA, 464 California Street, San Francisco, CA 94104, Credit: Securities Transfer Corporation as Rights Agent for MoneyOnMobile, Inc., ABA Number: 055003298, SWIFT Number WFBIUS6S, Account # 200303717, for further credit to EagleBank, Beneficiary Name: Securities Transfer Corporation as Rights Agent for MoneyOnMobile, Inc. and name of the subscription rights holder.

You should read the instruction letter accompanying the subscription rights statement carefully and strictly follow it. Do not send subscription rights statements or payments directly to us. We will not consider your subscription received until the subscription agent has received delivery of a properly completed and duly executed subscription rights statement and payment of the full subscription amount.

The method of delivery of subscription rights statements and payment of the subscription amount to the subscription agent will be at the risk of the holders of subscription rights. If sent by mail, we recommend that you send those statements and payments by registered mail, properly insured, with return

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receipt requested, or by overnight courier, and that you allow a sufficient number of days to ensure delivery to the subscription agent before the rights offering expires.

Missing or Incomplete Subscription Forms or Payment

If you fail to complete and sign the subscription rights certificate or otherwise fail to follow the subscription procedures that apply to the exercise of your subscription rights before the rights offering expires, the subscription agent will reject your subscription or accept it to the extent of the payment received. Neither we nor our subscription agent undertakes any responsibility or action to contact you concerning an incomplete or incorrect subscription form, nor are we under any obligation to correct such forms. We have the sole discretion to determine whether a subscription exercise properly complies with the subscription procedures.

The payment received will be applied to exercise your subscription rights to the fullest extent possible based on the amount of the payment received. Any excess subscription payments received by the subscription agent will be returned, without interest or penalty, as soon as practicable following the expiration of the rights offering.

Issuance of Common Stock

The shares of common stock that are purchased in the rights offering will be issued in book-entry, or uncertificated, form meaning that you will receive a direct registration (DRS) account statement from our transfer agent reflecting ownership of these securities if you are a holder of record of shares. If you hold your shares of common stock in the name of a custodian bank, broker, dealer, or other nominee, DTC will credit your account with your nominee with the securities you purchased in the rights offering.

No Fractional Shares

We will not issue fractional shares of common stock in the rights offering.

Notice to Brokers and Nominees

If you are a broker, dealer, bank, or other nominee holder that holds shares of our common stock for the account of others on the record date, you should notify the beneficial owners of the shares for whom you are the nominee of the rights offering as soon as possible to learn their intentions with respect to exercising their subscription rights. If a beneficial owner of our common stock so instructs, you should complete the subscription rights statement and submit it to the subscription agent with the proper subscription payment by the expiration date. You may exercise the number of subscription rights to which all beneficial owners in the aggregate otherwise would have been entitled had they been direct holders of our common stock on the record date, provided that you, as a nominee record holder, make a proper showing to the subscription agent by submitting the form entitled “nominee holder certification,” which is provided with your rights offering materials. If you did not receive this form, you should contact our subscription agent to request a copy.

Validity of Subscriptions

We will resolve all questions regarding the validity and form of the exercise of your subscription rights, including time of receipt and eligibility to participate in the rights offering. Our determination will be final and binding. Once made, subscriptions are irrevocable; we will not accept any alternative, conditional, or contingent subscriptions. We reserve the absolute right to reject any subscriptions not properly submitted or the acceptance of which would be unlawful. You must resolve any irregularities in connection with your subscriptions before the expiration date of the rights offering, unless we waive them in our sole discretion. Neither we nor the subscription agent is under any duty to notify you or your representative of defects in your subscriptions. A subscription will be considered accepted, subject to our right to withdraw or terminate the rights offering, only when the subscription agent receives a properly completed and duly executed subscription rights statement and any other required documents and the full subscription payment. Our interpretations of the terms and conditions of the rights offering will be final and binding.

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Stockholder Rights

You will have no rights as a holder of the shares of our common stock you purchase in the rights offering until shares are issued in book-entry form or your account at your broker, dealer, bank, or other nominee is credited with the shares of our common stock purchased in the rights offering.

Foreign Stockholders

We will not mail this prospectus or any subscription rights certificates to stockholders with addresses that are outside the United States or that have an army post office or foreign post office address. The subscription agent will hold these subscription rights certificates for their account. To exercise subscription rights, our foreign stockholders must notify the subscription agent prior 5:00 PM Eastern Time, on June [•], 2018, the third business day prior to the expiration date, of your exercise of Subscription Rights and provide evidence satisfactory to us, such as a legal opinion from local counsel, that the exercise of such Subscription Rights does not violate the laws of the jurisdiction in which such stockholder resides and payment by a U.S. bank in U.S. dollars before the expiration of the offer. If no notice is received by such time or the evidence presented is not satisfactory to us, the Subscription Rights represented thereby will expire.

No Revocation or Change

Once you submit the subscription rights certificate or have instructed your nominee of your subscription request, you are not allowed to revoke or change the exercise or request a refund of monies paid. All exercises of subscription rights are irrevocable, even if you learn information about us that you consider to be unfavorable. You should not exercise your subscription rights unless you are certain that you wish to purchase shares at the subscription price.

U.S. Federal Income Tax Treatment of Rights Distribution

For U.S. federal income tax purposes, we do not believe holders of shares of our common stock should recognize income or loss upon receipt or exercise of a subscription right. See “Material U.S. Federal Income Tax Consequences” on page 32.

No Recommendation to Rights Holders

Our board of directors is not making a recommendation regarding your exercise of the subscription rights. Stockholders who exercise subscription rights risk investment loss on money invested. We cannot assure you that the market price of our common stock will reach or exceed the subscription price after the offering, and even if it does so, that it will not subsequently decline. We also cannot assure you that you will be able to sell shares of our common stock purchased in the rights offering at a price equal to or greater than the subscription price. You should make your investment decision based on your assessment of our business and financial condition, our prospects for the future and the terms of this rights offering. Please see “Risk Factors” on page 13 for a discussion of some of the risks involved in investing in our common stock.

Fees and Expenses

We will pay all fees charged by the subscription agent and by the dealer-manager. You are responsible for paying any other commissions, fees, taxes or other expenses incurred in connection with the exercise of your subscription rights.

Listing

The subscription rights may not be sold, transferred, assigned or given away to anyone, and will not be listed for trading on any stock exchange or market. The shares of our common stock, including the shares to be issued in the rights offering, are traded on OTC Market Group’s OTCQB under the symbol “MOMT”.

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Important

Please follow the directions regarding delivery of subscription rights certificates and payments described above. Do not send subscription rights certificates directly to us. You are responsible for choosing the payment and delivery method for your subscription rights certificate and you bear the risks associated with such delivery. If you choose to deliver your subscription rights certificate and payment by mail, we recommend that you use registered mail, properly insured, with return receipt requested. We also recommend that you allow a sufficient number of days to ensure delivery to the subscription agent prior to the expiration time.

Distribution Arrangements

RHK Capital is the dealer-manager for the rights offering. The dealer-manager will provide marketing assistance and advice to us in connection with the rights offering. RHK Capital is not underwriting or placing any of the rights being sold in this offering and does not make any recommendation with respect to such rights (including with respect to the exercise of such rights). As contemplated by the dealer-manager agreement, RHK Capital will not solicit any holders of the securities (including the rights) or engage in the offer and sale of such securities in any jurisdiction in which such securities are not qualified or registered for sale in accordance with, or exempt from, the state securities or blue sky laws or Canadian provincial securities laws of such jurisdiction unless and until (i) the Company has advised RHK Capital that such securities have been qualified or registered in accordance with, or are exempt from application of, the state securities or blue sky laws or the Canadian provincial securities laws of such jurisdiction, as applicable, and (ii) RHK Capital possesses all required licenses and registrations to solicit or offer such securities in that jurisdiction. See “Plan of Distribution” on page 38 for a discussion of the fees and expenses to be paid to the dealer-manager in connection with this rights offering.

Other Matters

We are not making the rights offering in any state or other jurisdiction in which it is unlawful to do so, nor are we distributing or accepting any offers to purchase any shares of our common stock from subscription rights holders who are residents of those states or other jurisdictions or who are otherwise prohibited by federal or state laws or regulations from accepting or exercising the subscription rights. We may delay the commencement of the rights offering in those states or other jurisdictions, or change the terms of the rights offering, in whole or in part, in order to comply with the securities laws or other legal requirements of those states or other jurisdictions. Subject to state securities laws and regulations, we also have the discretion to delay allocation and distribution of any shares you may elect to purchase by exercise of your subscription privileges in order to comply with state securities laws. We may decline to make modifications to the terms of the rights offering requested by those states or other jurisdictions, in which case, if you are a resident in those states or jurisdictions or if you are otherwise prohibited by federal or state laws or regulations from accepting or exercising the subscription rights, you will not be eligible to participate in the rights offering. However, we are not currently aware of any states or jurisdictions that would preclude participation in the rights offering.

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CAPITALIZATION

The following table sets forth our cash and cash equivalents and our capitalization as of December 31, 2017, on an actual basis and pro forma on an “as adjusted” basis to give effect to the rights offering, assuming gross proceeds from the rights offering of $6.0 million and after deducting estimated offering expenses including dealer-manager fees and expenses of $0.5 million. You should read this table together with the information under the heading “Management’s Discussion and Analysis of Results of Operations and Financial Condition” included in this prospectus for the year ended March 31, 2017, which is incorporated herein by reference. We are unable to predict the actual level of participation in the offerings.

	As of December 31, 2017
	Actual			Offering		Pro Forma
	(unaudited)
Cash and equivalents		$	4,673,805		[*]		$	4,673,805
Long-term liabilities
Long-term debt, including current portion, net			12,462,943					12,462,943
Mandatory redeemable financial instruments, including current portion			3,795,852					3,795,852
Other non-current liabilities			104,536					104,536
Total long-term liabilities			16,363,331					16,363,331
Commitments and contingencies
Preferred stock Series D, $0.001 par value; 2,142 shares authorized, 1,225 shares issued and outstanding			1,225,000					1,225,000
Preferred stock Series F, $0.001 par value; 10,000 shares authorized, 5,702 shares issued and outstanding			5,702,100					5,702,100
Shareholders’ (Deficit)
Preferred stock Series E, $0.001 par value; 25,000 authorized, 2,530 shares issued and outstanding			3					3
Common stock, $0.001; 200,000,000 shares authorized, 75,820,525 shares issued and outstanding			75,820		[*]			75,820
Stock subscribed 1,461,365 shares issued and outstanding			1,461					1,461
Additional paid-in capital			53,983,555		[*]			53,983,558
Accumulated deficit			(59,141,714)					(59,141,714)
Cumulative other comprehensive loss			(1,023,454)					(1,023,454)
Total MoneyOnMobile, Inc. shareholders’ (deficit)			(6,104,329)		[*]			(6,104,329)
Noncontrolling interest			(3,172,269)					(3,172,269)
Total shareholders’ (deficit)			(9,276,598)		[*]			(9,276,598)
Total capitalization		$	11,760,538		[*]		$	11,760,538

The information above is as of December 31, 2017 and excludes:

•

6,805,000 common shares issuable upon the exercise of outstanding stock options with a weighted average exercise price of $0.55;

•

22,208,386 common shares issuable upon the exercise of outstanding warrants with a weighted average exercise price of $0.60;

•

3,067,500 common shares issuable upon the conversion of convertible subordinated notes; and

•

27,932,150 common shares issuable upon the conversion of preferred series stock.

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DILUTION

Purchasers of our common stock in the rights offering will experience an immediate and substantial dilution of the net tangible book value of the shares purchased. At December 31, 2017, we had a net tangible book value (deficit) of approximately $( ) or ($ ) per share of our common stock. After giving effect to the sale of 15,000,000 shares of our common stock in the rights offering at a price per share of $[ ] and after deducting transaction and offering expenses, the pro forma net tangible book value at December 31, 2017, attributable to common stockholders would have been $[ ], or $[ ] per share of our common stock. This amount represents an immediate dilution to purchasers in the rights offering of $[ ]. The following table illustrates this per-share dilution.

	Subscription price				$
	Net tangible book value (deficit) per share prior to the rights offering				$
	Increase in net tangible book per share attributable to the rights offering				$
	Pro forma net tangible book value per share after the rights offering				$
	Dilution in net tangible book value per share to purchasers				$

The information above is as of December 31, 2017 and excludes:

•

6,805,000 common shares issuable upon the exercise of outstanding stock options with a weighted average exercise price of $0.55;

•

22,208,386 common shares issuable upon the exercise of outstanding warrants with a weighted average exercise price of $0.60;

•

3,067,500 common shares issuable upon the conversion of convertible subordinated notes; and

•

27,932,150 common shares issuable upon the conversion of preferred series stock.

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MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES

The following discussion is a summary of material U.S. federal income tax consequences relating to the receipt and exercise (or expiration) of the subscription rights acquired through the rights offering and the ownership and disposition of shares of our common stock received upon exercise of the subscription rights.

This summary deals only with subscription rights acquired through the rights offering, shares of our common stock acquired upon exercise of subscription rights, in each case, that are held as capital assets by a beneficial owner. This discussion does not address all aspects of U.S. federal income taxation that may be relevant to such a beneficial owner in light of their personal circumstances, including the alternative minimum tax and the Medicare contribution tax on investment income. This discussion also does not address tax consequences to holders that may be subject to special tax rules, including, without limitation, insurance companies, real estate investment trusts, regulated investment companies, grantor trusts, tax-exempt organizations, employee stock purchase plans, partnerships and other pass-through entities, persons holding subscription rights, shares of our common stock as part of a hedging, integrated, conversion or constructive sale transaction or a straddle, financial institutions, brokers, dealers in securities or currencies, traders that elect to mark-to-market their securities, persons that acquired subscription rights, shares of our common stock in connection with employment or other performance of services, U.S. Holders (as defined below) that have a functional currency other than the U.S. dollar, U.S. expatriates, and certain former citizens or residents of the United States. In addition, the discussion does not describe any tax consequences arising out of the tax laws of any state, local or foreign jurisdiction, or any U.S. federal tax considerations other than income taxation (such as estate, generation skipping or gift taxation).

The discussion below is based upon the provisions of the Internal Revenue Code of 1986, as amended, or the Code, the United States Treasury regulations promulgated thereunder, rulings and judicial decisions, as of the date hereof, and such authorities may be repealed, revoked or modified, perhaps retroactively. We have not sought, and will not seek, any rulings from the Internal Revenue Service, or the IRS, regarding the matters discussed below. There can be no assurance that the IRS or a court (if the matter were contested) will not take positions concerning the tax consequences of the receipt of subscription rights acquired through the rights offering by persons holding shares of our common stock, the exercise (or expiration) of the subscription rights, the acquisition, ownership and disposition of shares of our common stock that are different from those discussed below.

As used herein, a “U.S. Holder” means a beneficial owner of shares of our common stock, subscription rights, shares of our common stock, as the case may be, that is for U.S. federal income tax purposes: (1) an individual who is a citizen or resident of the United States; (2) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof or the District of Columbia; (3) an estate the income of which is subject to U.S. federal income taxation regardless of its source; or (4) a trust (a) the administration of which is subject to the primary supervision of a court within the United States and one or more United States persons as described in Section 7701(a)(30) of the Code have authority to control all substantial decisions of the trust or (b) that has a valid election under the Treasury Regulations in effect to be treated as a United States person. A “Non-U.S. Holder” is such a beneficial owner (other than an entity or arrangement that is treated as a partnership for U.S. federal income tax purposes) that is not a U.S. Holder.

If any entity or arrangement that is treated as a partnership for U.S. federal income tax purposes is the record owner, the U.S. federal income tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. Holders that are partnerships (and partners in such partnerships) are urged to consult their own tax advisors.

HOLDERS OF SHARES OF OUR COMMON STOCK SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AND THE CONSEQUENCES UNDER FEDERAL ESTATE AND GIFT TAX LAWS, FOREIGN, STATE AND LOCAL LAWS AND TAX TREATIES OF THE RECEIPT, OWNERSHIP AND EXERCISE OF SUBSCRIPTION RIGHTS AND THE ACQUISITION, OWNERSHIP AND DISPOSITION OF SHARES OF OUR COMMON STOCK ACQUIRED UPON EXERCISE OF SUBSCRIPTION RIGHTS.

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Tax Consequences to U.S. Holders

Taxation of Subscription Rights

Receipt of Subscription Rights

Although the authorities governing transactions such as this rights offering are complex and do not speak directly to the consequences of certain aspects of this rights offering, the distribution of subscription rights and the effects of the over-subscription privilege, we do not believe your receipt of subscription rights pursuant to the rights offering should be treated as a taxable distribution with respect to your existing shares of common stock for U.S. federal income tax purposes. Pursuant to Section 305(a) of the Code, in general, the receipt by a stockholder of a right to acquire stock should not be included in the taxable income of the recipient. The general rule of non-recognition in Section 305(a) is subject to exceptions in Section 305(b), which include “disproportionate distributions.” A disproportionate distribution is a distribution or a series of distributions, including deemed distributions, that has the effect of the receipt of cash or other property by some stockholders and an increase in the proportionate interest of other stockholders in a corporation’s assets or earnings and profits.

Our position regarding the tax-free treatment of the subscription rights distribution is not binding on the IRS or the courts. If this position is finally determined by the IRS or a court to be incorrect, whether on the basis that the issuance of the subscription rights is a “disproportionate distribution” or otherwise, the fair market value of the subscription rights would be taxable to holders of our common stock as a dividend to the extent of the holder’s pro rata share of our current and accumulated earnings and profits, if any, with any excess being treated as a return of capital to the extent thereof and then as capital gain.

The following discussion is based upon the treatment of the subscription rights issuance as a non-taxable distribution with respect to your existing shares of common stock for U.S. federal income tax purposes.

Tax Basis in the Subscription Rights

If the fair market value of the subscription rights you receive is less than 15% of the fair market value of your existing shares of common stock (with respect to which the subscription rights are distributed) on the date you receive the subscription rights, the subscription rights will be allocated a zero dollar basis for U.S. federal income tax purposes, unless you elect to allocate your basis in your existing shares of common stock between your existing shares of common stock and the subscription rights in proportion to the relative fair market values of the existing shares of common stock and the subscription rights, determined on the date of receipt of the subscription rights. If you choose to allocate basis between your existing common shares and the subscription rights, you must make this election on a statement included with your timely filed tax return (including extensions) for the taxable year in which you receive the subscription rights. Such an election is irrevocable.

However, if the fair market value of the subscription rights you receive is 15% or more of the fair market value of your existing shares of common stock on the date you receive the subscription rights, then you must allocate your basis in your existing shares of common stock between those shares and the subscription rights you receive in proportion to their fair market values determined on the date you receive the subscription rights.

The fair market value of the subscription rights on the date that the subscription rights are distributed is uncertain, and we have not obtained, and do not intend to obtain, an appraisal of the fair market value of the subscription rights on that date. In determining the fair market value of the subscription rights, you should consider all relevant facts and circumstances, including any difference between the subscription price of the subscription rights and the trading price of our shares of common stock on the date that the subscription rights are distributed, the length of the period during which the subscription rights may be exercised and the fact that the subscription rights are non-transferable.

Exercise of Subscription Rights

Generally, you will not recognize gain or loss upon the effectiveness of the exercise of a subscription right in the rights offering. Your adjusted tax basis, if any, in the subscription right plus the subscription

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price should be allocated between the new common stock and warrant acquired upon exercise of the subscription right. The basis in the stock upon which the subscriptions rights were issued which is allocated to the subscription rights under the prior section entitled “Tax Basis in the Subscription Rights” would be further allocated between the new common stock and the warrant acquired upon exercise of the subscription right in proportion to their relative fair market values on the date the subscription rights were distributed. The subscription price should be allocated between the new common stock and warrant acquired upon exercise of the subscription right in proportion to their relative fair market values on the exercise date. These allocations will establish your initial tax basis for U.S. federal income tax purposes in your new common stock. The holding period of shares of common stock or a warrant acquired upon exercise of a subscription right in the rights offering will begin on the date of exercise.

If you exercise a subscription right received in the rights offering after disposing of the shares of our common stock with respect to which such subscription right is received, then certain aspects of the tax treatment of the exercise of the subscription right are unclear, including (1) the allocation of the tax basis between the shares of common stock previously sold and the subscription right, (2) the impact of such allocation on the amount and timing of gain or loss recognized with respect to the shares of our common stock previously sold and (3) the impact of such allocation on the tax basis of the shares of our common stock acquired upon exercise of the subscription right. If you exercise a subscription right received in the rights offering after disposing of shares of our common stock with respect to which the subscription right is received, you should consult with your own tax advisor.

Expiration of Subscription Rights

If you allow subscription rights received in the rights offering to expire, you should not recognize any gain or loss for U.S. federal income tax purposes, and you should re-allocate any portion of the tax basis in your existing common stock previously allocated to the subscription rights that have expired to the existing common stock.

Taxation of Common Stock

Distributions

Distributions with respect to shares of our common stock acquired upon exercise of subscription rights will be taxable as dividend income when actually or constructively received to the extent of our current or accumulated earnings and profits as determined for U.S. federal income tax purposes.

Dividend income received by certain non-corporate U.S. holders with respect to shares of our common stock generally will be “qualified dividends” subject to preferential rates of U.S. federal income tax, provided that the U.S. holder meets applicable holding period and other requirements. Subject to similar exceptions for short-term and hedged positions, dividend income on our shares of common stock paid to U.S. Holders that are domestic corporations generally will qualify for the dividends-received deduction. To the extent that the amount of a distribution exceeds our current and accumulated earnings and profits, such distribution will be treated first as a tax-free return of capital to the extent of your adjusted tax basis in such shares of our common stock and thereafter as capital gain.

Dispositions

If you sell or otherwise dispose of shares of common stock acquired upon exercise of subscription rights in a taxable transaction, you will generally recognize capital gain or loss equal to the difference between the amount realized and your adjusted tax basis in the shares. Such capital gain or loss will be long-term capital gain or loss if your holding period for such shares is more than one year at the time of disposition. Long-term capital gain of a non-corporate U.S. Holder is generally taxed at preferential rates of U.S. federal income tax. The deductibility of capital losses is subject to limitations.

Information Reporting and Backup Withholding

You may be subject to information reporting and/or backup withholding with respect to the gross proceeds from the disposition of shares of our common stock acquired through the exercise of Subscription Rights. Backup withholding (currently at the rate of 28%) may apply under certain

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circumstances if you (1) fail to furnish your social security or other taxpayer identification number, or TIN, (2) furnish an incorrect TIN, (3) fail to report interest or dividends properly or (4) fail to provide a certified statement, signed under penalty of perjury, that the TIN provided is correct, that you are not subject to backup withholding and that you are a U.S. person for U.S. federal income tax purposes on IRS Form W-9. Any amount withheld from a payment under the backup withholding rules is allowable as a credit against (and may entitle you to a refund with respect to) your U.S. federal income tax liability, provided that the required information is timely furnished to the IRS. Certain persons are exempt from information reporting and backup withholding, including corporations and certain financial institutions, provided that they demonstrate this fact, if requested. You are urged to consult your own tax advisor as to your qualification for exemption from backup withholding and the procedure for obtaining such exemption.

Tax Consequences to Non-U.S. Holders

Taxation of the Subscription Rights

Receipt, Exercise and Expiration of the Subscription Rights

The discussion below assumes that the receipt of Subscription Rights will be treated as a non-taxable distribution. See “Tax Consequences to U.S. Holders — Taxation of Subscription Rights — Receipt of Subscription Rights” above.

Taxation of Distributions on Common Stock

Any distributions of cash or property made with respect to our Common Stock generally will be subject to withholding tax to the extent paid out of our current or accumulated earnings and profits as determined for U.S. federal income tax purposes, if any, at a rate of 30% (or a lower rate prescribed by an applicable income tax treaty). In order to obtain a reduced withholding tax rate, if applicable, you will be required to provide a properly completed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, certifying your entitlement to benefits under a treaty. In addition, you will not be subject to withholding tax if you provide an IRS Form W-8ECI certifying that the distributions are effectively connected with your conduct of a trade or business within the United States (and, if an applicable income tax treaty so provides, are attributable to a permanent establishment within the United States); instead, you generally will be subject to U.S. federal income tax, net of certain deductions, with respect to such income at the same rates applicable to U.S. persons. If you are a corporation, a “branch profits tax” of 30% (or a lower rate prescribed by an applicable income tax treaty) also may apply to such effectively connected income.

Non-U.S. Holders may be required to periodically update their IRS Forms W-8.

Any distribution will also be subject to the discussion below under the headings “Information Reporting and Backup Withholding” and “FATCA.”

Sale or Other Disposition of Our Common Stock

Subject to the discussion below regarding backup withholding and FATCA, you generally will not be subject to U.S. federal income tax on any gain realized on a sale or other disposition of shares of our common stock unless:

•

the gain is effectively connected with your conduct of a trade or business within the United States (and, if an applicable income tax treaty so provides, is attributable to a permanent establishment in the United States);

•

you are an individual, you hold your Subscription Rights, shares of Common Stock as capital assets, you are present in the United States for 183 days or more in the taxable year of disposition and certain other conditions are met (in which case you will be subject to a 30% tax, or such lower rate as may be specified by an applicable income tax treaty, on the net gain derived from the disposition, which may be offset by your U.S.-source capital losses, if any); or

•

we are or have been a “United States real property holding corporation,” or USRPHC, for U.S. federal income tax purposes unless an exception for 5% or less stockholders applies.

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Gain that is effectively connected with your conduct of a trade or business within the United States (and, if an applicable income tax treaty so provides, is attributable to a permanent establishment within the United States) generally will be subject to U.S. federal income tax, net of certain deductions, at the same rates applicable to U.S. persons. If you are a corporation, a “branch profits tax” of 30% (or a lower rate prescribed in an applicable income tax treaty) also may apply to such effectively connected gain.

A domestic corporation is treated as a USRPHC if the fair market value of its United States real property interests equals or exceeds 50% of the sum of (1) the fair market value of its United States real property interests, (2) the fair market value of its non-United States real property interests and (3) the fair market value of any other of its assets which are used or held for use in a trade or business. We believe that we are not currently, and have not been within the relevant testing period, a USRPHC. However, no assurance can be given that we will not become a USRPHC in the future. If we are a USRPHC or become a USRPHC in the future, a Non-U.S. Holder may still not be subject to U.S. federal income tax on a sale or other disposition if an exception for 5% or less stockholders applies. You are urged to consult your own tax advisor regarding the U.S. federal income tax considerations that could result if we are, or become, a USRPHC and with respect to the exception for 5% or less stockholders.

Information Reporting and Backup Withholding

Distributions on our common stock and the amount of tax withheld, if any, with respect to such distributions will generally be subject to information reporting. If you comply with certification procedures to establish that you are not a United States person, additional information reporting and backup withholding should not generally apply to distributions on our Common Stock and information reporting and backup withholding should not generally apply to the proceeds from a sale or other disposition of shares of our common stock. Generally, a Non-U.S. Holder will comply with such procedures if it provides a properly executed IRS Form W-8BEN or W-8BEN-E, as applicable, (or other applicable IRS Form W-8) or otherwise meets documentary evidence requirements for establishing that it is a Non-U.S. Holder, or otherwise establishes an exemption. The amount of any backup withholding will generally be allowed as a refund or credit against your U.S. federal income tax liability, provided that the required information is timely furnished to the IRS.

FATCA

Payments of dividends on our common stock to a Non-U.S. Holder will be subject to a 30% withholding tax if the Non-U.S. Holder fails to provide the withholding agent with documentation sufficient to show that it is compliant with FATCA. Generally such documentation is provided on an executed and properly completed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable. If dividends are subject to the 30% withholding tax under FATCA, they will not be subject to the 30% withholding tax described above under “Tax Consequences to Non-U.S. Holders — Taxation of Distributions on Common Stock.” Starting in 2019, payments of the gross proceeds from a sale or exchange of our Common Stock or other securities may also be subject to FATCA withholding absent proof of FATCA compliance prior to January 1, 2019.

THE PRECEDING DISCUSSION OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES IS NOT TAX ADVICE. HOLDERS OF SUBSCRIPTION RIGHTS, SHARES OF OUR COMMON STOCK SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AND THE CONSEQUENCES UNDER FEDERAL ESTATE AND GIFT TAX LAWS, FOREIGN, STATE AND LOCAL LAWS AND TAX TREATIES OF THE RECEIPT, OWNERSHIP AND EXERCISE OF SUBSCRIPTION RIGHTS AND THE ACQUISITION, OWNERSHIP AND DISPOSITION OF SHARES OF OUR COMMON STOCK.

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USE OF PROCEEDS

Assuming the rights offering is fully subscribed, including the entire over-subscription privilege, we estimate that the net proceeds from the rights offering will be approximately $6.4 million, after deducting fees and expenses payable to the dealer-manager, and after deducting other expenses payable by us.

We currently intend to use the net proceeds from this offering for operating costs, retirement of those note obligations which will have an early maturity date upon the successful closing of this offering, and for general corporate purposes, including working capital and to grow our operation in India.

The expected use of the net proceeds of the offering set forth above represents our estimates based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues and expenditures. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments and related rate of growth. We may find it necessary or advisable to use portions of the proceeds from this offering for other purposes.

From time to time, we evaluate these and other factors and we anticipate continuing to make such evaluations to determine if the existing allocation of resources, including the proceeds of this offering, is being optimized. Pending such uses, we intend to invest the net proceeds of this offering in short-term, interest-bearing, investment-grade securities such as money market funds, certificates of deposit, commercial paper and guaranteed obligations of the U.S. government.

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DISTRIBUTION PLAN

As soon as practicable after the record date for the rights offering, we will distribute the subscription rights and rights certificates to individuals who owned shares of our common stock at 4:00 p.m., Eastern Time, on April [•], 2018. If you wish to exercise your subscription rights and purchase shares of our common stock, you should complete the rights certificate and return it with payment for the shares to the subscription agent, Securities Transfer Corporation, 2901 Dallas Parkway, Suite 380, Plano, TX 75093, 469-633-0101.

See “The Rights Offering-Method of Exercising Subscription Rights.” If you have any questions or need further information about this rights offering, please call Mackenzie Partners, Inc., our information agent for the rights offering at (800) 322-2885 (toll free) or email at rightsoffer@mackenziepartners.com.

RHK Capital is the dealer-manager of this offering and under the terms and subject to the conditions contained in the dealer-manager agreement between us and the dealer-manager, RHK Capital will provide marketing assistance and advice to our company in connection with this offering. We have agreed to pay RHK Capital up to 6.0% of the gross proceeds of this offering in cash and to pay RHK Capital a non-accountable expense allowance up to 1.8% of the gross proceeds of this offering and an out-of-pocket accountable expense allowance of 0.2%. We have also agreed to indemnify RHK Capital and their respective affiliates against certain liabilities arising under the Securities Act. RHK Capital’s participation in this offering is subject to customary conditions contained in the dealer-manager agreement. RHK Capital and its affiliates may provide to us from time to time in the future in the ordinary course of their business certain financial advisory, investment banking and other services for which they will be entitled to receive fees.

Some of our officers, employees and directors may solicit responses from holders of subscription rights. None of our officers, directors or employees will be compensated in connection with their participation in the offering by the payment of commissions or other remuneration based either directly or indirectly on the subscriptions, but will be reimbursed for reasonable expenses.

We have agreed to pay the subscription agent and information agent customary fees plus certain expenses in connection with the rights offering. Except as described in this section, we are not paying any other commissions, underwriting fees or discounts in connection with the rights offering or subsequent re-offer.

Other than as described herein, we do not know of any existing agreements between or among any stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the underlying common stock.

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DESCRIPTION OF SECURITIES

General

At the date hereof, we are authorized by our Articles of Incorporation to issue an aggregate of

•

200,000,000 shares of common stock, par value $0.001 per share,

•

2,200 shares of “Series D” preferred stock, par value $0.001 per share,

•

25,000 shares of “Series E” preferred stock, par value $0.001 per share,

•

20,000 shares of “Series F” preferred stock, par value $0.001 per share,

•

7,000 shares of “Series G” preferred stock, par value $0.001 per share and

•

1,666 shares of “Series H” preferred stock, par value $0.001 per share.

Common Stock

We are authorized to issue up to 200,000,000 shares of common stock, $0.001 par value. Each share of common stock entitles a stockholder to one vote on all matters upon which stockholders are permitted to vote. Common stock does not confer on the holder any preemptive right or other similar right to purchase or subscribe for any additional securities issued by us and is not convertible into other securities. No shares of common stock are subject to redemption or any sinking fund provisions. All the outstanding shares of our common stock are fully paid and non-assessable. Subject to the rights of the holders of the preferred stock, the holders of shares of our common stock are entitled to dividends out of funds legally available when and as declared by our Board of Directors. In the event of our liquidation, dissolution, or winding up, holders of our common stock are entitled to receive, ratably, the net assets available to stockholders after payment of all creditors and any liquidation preference on outstanding preferred stock.

As of December 31, 2017 we had 75,820,525 shares of common stock, 1,225 shares of Preferred Series D stock, 2,530 shares of Preferred Series E stock and 5,702 shares of Preferred Series F stock outstanding,

Preferred Stock

We may issue up to 2,200 shares of “Series D” preferred stock, $0.001 par value, 25,000 shares of “Series E” preferred stock, $0.001 par value and 20,000 shares of “Series F” preferred stock, $0.001 par value. Subsequent to December 31, 2017, we are authorized to issue up to 7,000 shares of “Series G” preferred stock, $0.001 par value and up to 1,666 shares of “Series H” preferred stock, $0.001 par value. Preferred stock issued by the Company may rank senior to the common stock with respect to the payment of dividends or amounts upon liquidation, dissolution, or winding up of us, or both.

The above descriptions of our capital stock and provisions of our Articles of Incorporation and Bylaws are summaries and are qualified by reference to our certificate of incorporation, as amended, and our amended and restated bylaws. We have filed copies of these documents with the SEC as exhibits to the registration statement of which this prospectus forms a part.

Anti-Takeover Effects of Various Provisions of Texas Law and Our Articles of Incorporation

Certain provisions of our Articles and Bylaws may make it less likely that our management would be changed or someone would acquire voting control of our Company without our Board’s consent. These provisions may delay, deter or prevent tender offers or takeover attempts that shareholders may believe are in their best interests, including tender offers or attempts that might allow shareholders to receive premiums over the market price of their common stock.

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MANAGEMENT

Executive Officers, Directors and Key Employees

The following are our current executive officers, directors and key employees and their respective ages and positions as of March 15, 2018:

Name	Age	Position
Harold H. Montgomery	58	Director, Chairman of the Board, Chief Executive Officer, and Secretary
Scott S. Arey	55	Chief Financial Officer
Will Dawson	46	Chief Operating Officer
Ranjeet Oak	47	Head of India Operations
Gerald Ratigan	38	SVP Finance, Chief Accounting Officer
Oleg Gordienko	41	Director
James M. McKelvey	52	Independent Director
Karl Power	56	Independent Director
Max V. Shcherbakov	53	Director
David B. Utterback	57	Director

Executive Officers and Key Employees

Harold H. Montgomery, Chairman of the Board, Chief Executive Officer, and Secretary

Mr. Montgomery, age 58, has been our Chairman of the Board, Chief Executive Officer, and Secretary since April 2010. Since March 2012, Mr. Montgomery has been Chairman of the Board of Digital Payments Processing Limited, a majority-owned subsidiary, and a member of the board of directors of My Mobile Payments Limited (“MoneyOnMobile”), a DPPL affiliate. In 1987, Mr. Montgomery co-founded ART Holdings, Inc. (“ART”), a merchant payment processing company. While a full-time employee of ART, Mr. Montgomery led a team that underwrote and acquired merchant portfolios between 2003 and 2009.

Mr. Montgomery has more than 25 years of payments industry experience including work in the ISO, merchant payment processing and mobile payments vertical markets, and in sourcing capital. He is a widely known industry authority, a speaker at regional and national trade shows, and writes a regular monthly column for Transaction World Magazine. He has been a resource for the Federal Reserve Bank Card Payment Center in Philadelphia and has served the U.S. Congress as an expert witness on credit card legislation. Montgomery attended Stanford University, where he earned BA and MBA degrees. He previously served on the Board of Trustees for the Communities Foundation of Texas, a $1 billion community trust organization, and the Board of St. Mark’s School of Texas. He has served as President of the Dallas Committee on Foreign Relations and Young Audiences of Greater Dallas.

Scott S. Arey, Chief Financial Officer

Mr. Arey, age 55, was appointed as Chief Financial Officer (Principal Financial and Principal Accounting Officer) in October 2013. Mr. Arey has over 25 years experience in finance. After starting his career at KPMG Peat Marwick, Mr. Arey spent 10 years at Bank of America where he was the CFO of the Commercial Banking Division and the International Trade Bank. He is expert in arranging financing in many forms including credit facilities, private placements, public offerings, and project finance. Since leaving Bank of America, Arey has assembled more than $300 million in credit facilities through banks and raised more than $350 million in private placement investments from venture and private equity firm. From 2009 to 2013, Mr. Arey was Chief Financial Officer and Corporate Secretary of Alsbridge, Inc., a provider of IT sourcing advisory and benchmarking services to C-level executives. From 2007 to 2009, Mr. Arey was CFO of Journey Education Marketing, a multi-channel software marketer to the K-12 and post-secondary academic markets.

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Will Dawson, Chief Operating Officer

Mr. Dawson, age 46, is the Chief Operating Officer. Mr. Dawson has over 20 years of experience in the technology industry. Prior to MoneyOnMobile, Mr. Dawson was the Chief Operating Officer at a MasterCard and Smart Communication joint venture, which created mobile money ecosystems in Asia, the Middle East, Africa, and Latin America. Mr. Dawson rolled out mobile money solutions in Turkey with the largest mobile operator and two banks, and in Egypt with the Central Bank of Egypt, a mobile operator, a bank, and a bill payment aggregator. He earned a Bachelor of Science in Mechanical Engineering and a Bachelor of Science in Economics from the University of Pennsylvania, and an MBA from London Business School.

Ranjeet Oak, Head of India Operations

Ranjeet Oak, age 47 Head of India Operations. Mr. Oak is co-founder of MoneyOnMobile in India and is an accomplished mobile payments executive with broad management skills, including strategic planning, business development and business integration. He has over 20 years of industry experience, having lead various divisions of IT education, ITES and BPO organizations. Mr. Oak has also energized our product development and marketing efforts through his extensive industry relationships.

Gerald Ratigan, SVP Finance, Chief Accounting Officer

Mr. Ratigan, age 38, is the SVP Finance, Chief Accounting Officer. Mr. Ratigan has over 15 years of experience in public accounting with Grant Thornton and KPMG, and in private industry, Mr. Ratigan is a licensed CPA in the state of Texas, a certified management accountant and certified in strategy and competitive analysis through the Institute of Management Accountants. Prior to MoneyOnMobile, Mr. Ratigan held various management roles in multiple global organizations. He earned a Bachelor of Business Administration with Honors in Accounting and Finance from the University of Miami, Florida.

Directors

Oleg Gordienko

Mr. Gordienko, age 41, has over 20 years of experience in the financial market. Currently, and from September 2017, Mr. Gordienko serves as Investment Director at S7 Airlines, which is the largest non-state aerospace holding in Eastern Europe. Mr. Gordienko has approximately 14 years’ working experience at Raiffeisen Bank since 2003. From March 2017 to August 2017, he served as Managing Director in charge of large corporate coverage and from September 2012 to March 2017, he was the Managing Director in charge of investment banking at Raiffeisen Bank. Prior to that, from August 2008 to September 2012, he served as the deputy head of investment banking at Raiffeisen Bank. Mr. Gordienko holds a degree from the Financial Academy under the Government of the Russian Federation.

James M. McKelvey

Mr. McKelbey, age 55, was appointed to our Board of Directors in May 2016. Since July 2009, Jim McKelvey served as a member of the board of directors of Square, Inc., a NYSE traded company known for enabling anyone with a mobile device to accept card payments, a company co-founded by Mr. McKelvey. Since July 2013, Mr. McKelvey served as a Managing Director of SixThirty FinTech Accelerator, LLC, a financial technology accelerator. Since March 2012, Mr. McKelvey served as a General Partner of Cultivation Capital, a venture capital firm. Since January 1990, Mr. McKelvey served in various positions at Mira Smart Conferencing, a digital conferencing company. Mr. McKelvey currently serves on the boards of directors of a number of privately-held companies. Mr. McKelvey holds a B.S. in Computer Science and a B.A. in Economics from Washington University in St. Louis.

Karl Power

Karl Power, age 56. From November 2015 until July 2016, Mr. Power has served as a Director to the Board of Directors of Excel Corp. (OTCQB: EXCC). Since August 2011, Mr. Power has been Chairman and CEO of Active In Home Therapy, a health care services provider. Between 2001 and 2010, Mr. Power

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served in various management consultant roles to companies in multiple industries, including in the technology hardware industry, airline industry and online education. Mr. Power has a Masters of Business from University College Dublin and a Management Accountant qualification from the Institute of Management Accountants in London.

Max Shcherbakov

Mr. Shcherbakov, age 53. Since 2008, Mr. Shcherbakov has served as Managing Partner at Aurora Capital Worldwide, a private investment company. From 1999 to 2007, he was Managing Partner at TPG Aurora. Mr. Shcherbakov received his MA degree in Economics from Moscow State University in 1987 and MBA degree from Stanford Graduate School of Business in 1992.

David B. Utterback

Mr. Utterback, age 57, was appointed to our Board of Directors in May 2016. Since 1998, Dr. David B. Utterback has served as a Staff Anesthesiologist at Ocean Springs Hospital, in Ocean Springs, Mississippi, and at Singing River Hospital, in Pascagoula, Mississippi. Dr. Utterback also serves on the board of the American Board of Anesthesiology (since 1991) and on the board of the National Board of Medical Examiners (since 1987). Dr. Utterback holds a B.A. from Dartmouth College, M.D. from University of Illinois College of Medicine, and M.S. in Administrative Medicine from University of Wisconsin.

Summary Compensation Table

The following table sets forth the information as to compensation paid to or earned by our Chief Executive Officer and our two other most highly compensated executive officers during the fiscal years ended March 31, 2017 and 2016. These individuals are referred to in this registration statement as our named executive officers. The information includes the dollar value of base salaries, whether paid or deferred. No separate compensation was paid to executive officers for their services as members of the Board of Directors.

Name and Principal Position	Year		Salary			Bonus			Option Awards(1)			Total
Harold H. Montgomery Chairman of the Board and Chief Executive Officer		2017		$	300,000		$	75,000		$	—		$	375,000
		2016			300,000			125,000			608,748			1,033,748
Scott S. Arey Chief Financial Officer		2017		$	225,000		$	50,000		$	—		$	275,000
Scott S. Arey Chief Financial Officer		2016			225,000			75,000			233,058			533,058
Will Dawson Chief Operating Officer		2017		$	200,000		$	—		$	97,558		$	297,558
Will Dawson Chief Operating Officer		2016			166,500			50,000			124,375			340,875

(1)

The expense recognized by the Company during the relating fiscal year in accordance with the aggregate grant date fair value computed in accordance with FASB ASC Topic 718.

Employment Agreements with Executive Management

As of the date hereof, we have not entered into employment contracts with our officers, but may do so in the future.

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Outstanding Equity Awards at Fiscal Year-End

Certain information concerning outstanding stock options as of March 15, 2018, for our named executive officers:

Name	Number Of Securities Underlying Options (#) Exercisable		Option Exercise Price ($)			Option Expiration Date
Harold H. Montgomery		1,306,000		$	0.50	December 31, 2025(1)
Harold H. Montgomery		694,000		$	0.50	March 4, 2026(1)
Harold H. Montgomery		1,000,000		$	0.34	May 1, 2027(1)
Harold H. Montgomery		500,000		$	0.53	January 31, 2028(1)
Scott S. Arey		500,000		$	0.50	October 3, 2025(1)
Scott S. Arey		400,000		$	1.35	September 18, 2023(1)
Scott S. Arey		100,000		$	0.34	May 1, 2027(1)
Scott S. Arey		100,000		$	0.26	July 6, 2027(1)
Scott S. Arey		100,000		$	0.22	August 14, 2027(1)
Scott S. Arey		100,000		$	0.17	November 14, 2027(1)
Scott S. Arey		100,000		$	0.48	February 20, 2028(1)
Will Dawson		250,000		$	0.70	June 6, 2025(1)
Will Dawson		250,000		$	0.53	November 30, 2026(1)
Will Dawson		250,000		$	0.34	May 1, 2027(1)

(1)

Become void if services are earlier terminated.

Director Compensation

In connection with Mr. Power’s election as a member of the Board on April 5, 2017, the Company agreed to issue Mr. Power a five year warrant to purchase 200,000 shares of the Company’s common stock at an exercise price of $0.4699, the closing price of the Company’s common stock.

In connection with their election as members of the Board on February 7, 2018, the Company agreed to issue to each of Mr. Gordienko and Mr. Shcherbakov a five year warrant to purchase 200,000 shares of the Company’s common stock at an exercise price of $0.66, the closing price of the Company’s common stock.

All other Board of Directors are compensated with 200,000 options annually. Mr. Power currently serves Audit Committee Chair and receives an additional 100,000 options annually. Mr. KcKelvey serves as an Audit Committee Member and receives an additional 50,000 options annually.

Exercise price of options shall be closing strike price for MOMT shares as of the Grant Date. These option immediately vest upon issuance and include a five year lockup option.

Compensation Committee Interlocks and Insider Participation

In matters involving our directors and their separate interests, only disinterested directors vote.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Beneficial Ownership

Shares are deemed to be “beneficially owned” by a person if such person, directly or indirectly, has or shares (a) voting power with respect to such shares, including the power to vote or to direct the voting of such shares; or (b) investment power with respect to such shares, including the power to dispose or to direct the disposition of such shares. In addition, a person is deemed to be the beneficial owner of shares if such person has the right to acquire beneficial ownership of such shares within 60 days. In the following tables, the “Percent Of Class” is based on 78,324,499 issued and outstanding shares of our common stock as of March 23, 2018.

Security Ownership of Certain Beneficial Owners

Unless otherwise indicated, the following table sets forth information as of March 23, 2018, with respect to the shares of our common stock beneficially owned by each person known to us to be the beneficial owner of more than 5% of our common stock.

Name And Address Of Beneficial Owner	Number Of Shares Beneficially Owned		Percent Of Class
Laird Q. Cagan 20400 Steven Creek Blvd. #700, Cupertino CA 95014		15,617,569		7.25%(1)
Mark Houghton-Berry Surrey, UK GU25 4JS		16,844,606		6.17%(1)

(1)

Beneficially owned common stock include the aggregate number of shares directly owned and shares issuable upon exercise of derivative instruments held by the shareholder. Ownership percentages, however, are representative of beneficial ownership limited in the derivative instruments held by the respective shareholder.

Security Ownership of Management

The following table sets forth information with respect to the beneficial ownership of our Company by (a) each of our directors and executive officers, and (b) all of our directors and executive officers as a group as of March 23, 2018.

Name Of Beneficial Owner	Number Of Shares Beneficially Owned		Percent Of Class
Harold H. Montgomery, CEO		6,875,246(1)		8.75%
David B. Utterback, Director		4,647,176(2)		4.99%
Oleg Gordienko, Director		4,680.967(3)		4.99%
Scott S. Arey, CFO		883,334(4)		1.12%
Karl Power, Director		766,704(5)		0.98%
James M. McKelvey, Director		582,500(6)		0.74%
Max Scherbakov, Director		200,000(7)		0.25%
Will Dawson, COO		250,000(8)		0.32%
All Named Executive Officers and Directors as a group (eight persons)		18,945,927		22.14%

(1)

Comprised of: (i) 946,668 shares directly owned by Harold Montgomery; (ii) 3,810,000 shares held in an IRA for the benefit of Mr. Montgomery; (iii) 47,242 shares owned by the Molly Ann Montgomery 1995 Trust and 47,242 shares owned by the Philip Graham Montgomery 1997 Trust, trusts for the benefit of Mr. Montgomery’s children for which Mr. Montgomery is trustee; (iv) 150,000 shares owned by Montgomery Investments, L.P. (the “LP”); (v) 112,500 shares and 12,500 warrants owned by the

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Montgomery Non-Exempt Marital Trust, under trust dated January 1, 2007, (the “Trust”). Mr. Montgomery is a limited partner in the LP. The general partner of LP is a member of Mr. Montgomery’s immediate family. Mr. Montgomery may be deemed a remainder man of the Trust and may be deemed to share investment control over the shares held by the Trust. Mr. Montgomery disclaims beneficial ownership of all of the foregoing securities except to the extent of his pecuniary interest therein; (vi) 319,094 shares and 150,000warrants owned by 4M Land and Cattle Company, Inc. Mr. Montgomery serves as president of this entity; (vii) 30,000 shares owned by trust for which Mr. Montgomery is Trustee; and (viii) 1,250,000 vested options to acquire additional shares of common stock.

(2)

Comprised of: (i) a warrant to purchase 400,000 shares of common stock; (ii) warrants to purchase an aggregate of 269,215 shares of common stock held by David B. Utterback Revocable Trust dtd May 20, 2013 of which Mr. Utterback is Trustee; (iii) 986,980 shares of common stock which represents 33% of shares held by Fairmount St. Investments, LP, an entity of which Mr. Utterback is a 33% beneficial owner; (iv) warrants to purchase an aggregate of 3,428,443shares of common stock which represents 33% of shares held by Fairmount St. Investments, LP, an entity of which Mr. Utterback is a 33% beneficial owner; (v) 70,000 shares directly held by David Utterback; and (vi) 964,346 shares issuable on exercise of immediately convertible preferred shares beneficially owned by David Utterback. Ownership percentages, however, are representative of beneficial ownership as limited by the 4.99% ownership limitation in some of the derivative instruments held.

(3)

Comprised of: (i) 1,217,500 shares and 389,667 warrants directly held by Oleg Gordienko (ii) 3,133,800 shares issuable on exercise of immediately convertible preferred shares beneficially owned by Oleg Gordienko. Ownership percentages, however, are representative of beneficial ownership as limited by the 4.99% ownership limitation in some of the derivative instruments held by the respective shareholder.

(4)

Comprised of: (i) 83,334 shares directly held by Scott Arey and (ii) 800,000 shares issuable upon exercise of immediately exercisable options.

(5)

Comprised of: (i) 466,704 shares directly held by Karl Power and (ii) 300,000 shares issuable upon exercise of immediately exercisable options.

(6)

Comprised of: (i) 456,250 shares issuable on exercise of immediately exercisable warrants beneficially owned by James McKelvey and (ii) 126,250 shares issuable on exercise of immediately convertible preferred shares beneficially owned by James McKelvey.

(7)

Comprised of: (i) 200,000 shares and 200,000 warrants directly held by Max Scherbakov.

(8)

Comprised of: (i)) 250,000 shares issuable upon exercise of immediately exercisable options directly held by Will Dawson.

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Transactions with Related Persons

Happy Cellular Services Limited

The majority shareholder and Chairman of Happy Cellular Services Limited (“Happy Cellular”), is also a shareholder and board member of MMPL. Additionally, a certain number of Happy Cellular retailers are also agents for MoneyOnMobile. Happy Cellular has provided refundable deposits totaling approximately $789,760 and $0 as of December 31 and March 31, 2017 for the Company to increase its volume of immediate payment service transactions. Happy Cellular agents are entitled to a commission for a fixed number of transactions at a fixed rate.

Cagan McAfee Capital Partners, LLC/Cagan Capital, LLC/Laird Cagan

Cagan McAfee Capital Partners, LLC (“CMCP”) is an investment company owned and controlled by Laird Cagan, a former member of our Board of Directors and a significant shareholder. The amounts due, for services rendered, including interest, to CMCP totaled $761,805 as of December 31 and March 31, 2017, and is recorded in Related party payables in the condensed consolidated balance sheets.

In February 2018, the Company and Mr. Laird Cagan entered into a securities exchange agreement, pursuant to which the Company exchanged with Mr. Cagan certain outstanding notes in the aggregate principal amount of $1,889,422 plus $591,151 accrued but unpaid interest for a senior convertible promissory note in the principal amount of $2,480,573 at an interest rate of twelve percent (12%) per annum and payable in full on December 31, 2019.

Oleg Gordienko

Mr. Gordienko is an appointed representative for S7 Finance BV (“S7”) to our Board of Directors, but he does not own shares of S7 nor does he make decisions for S7. Mr. Gordienko owns 1,217,500 shares and 189,667 warrants from these investments. He owns an investment of 60 shares of Preferred Series E. He has an investment in Series F that converts to 3,013,800 shares of common stock. Additionally, Mr. Gordienko received 200,000 warrants for director compensation.

Max Scherbakov

Mr Scherbakov is an appointed representative for S7 to the MOMT board and he chairs a committee at S7 that makes decisions with respect to MOMT. S7 has invested $4,998,000 for 1,666 in Series H Preferred Shares, which converts to 16,660,000 shares of common stock. Additionally, Mr. Scherbakov received 200,000 warrants for director compensation.

Mark Houghton-Berry

In December 2016, Mr. Houghton-Berry provided one of our lenders with a $2.0 million standby letter of credit as collateral for an unsecured line of credit. In March 2017, Mr. Houghton-Berry increased this standby letter of credit to $4.0 million to allow the Company to increase its credit line. As compensation for provided the standby letters of credit, the Company and Mr. Houghton-Berry entered into a performance guarantee agreement for which the Company has pays Mr. Houghton-Berry a monthly fee based on an agreed % of letter of credit. For the fiscal year ending March 31, 2017, Mr. Houghton-Berry earned $109,821. For the nine months ending December 31, 2017, Mr. Houghton-Berry earned $757,500.

Additionally, Mark Houghton-Berry owns 1,190 shares of the Company’s Series G Preferred Stock. And, he. is a director and the sole shareholder of Luscinus Investments Ltd, which owns 575 shares of the Company’s Series F Preferred Stock.

Board of Directors

At March 15, 2018, the Company has six persons serving as directors on our Board of Directors, namely, Harold H. Montgomery, David B. Utterback, James M. McKelvey, Karl Power, Oleg Gordienko and Max V. Shcherbakov. Pursuant to our Bylaws, our directors are elected at the annual meeting of our

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shareholders and, once appointed, serve until their successors are elected and qualified, until their prior death, resignation, or until removed from office in accordance with our Bylaws. Our Bylaws provide that the number of directors on our Board of Directors shall be fixed and changed from time to time by resolution of our Board of Directors or by the vote of our shareholders.

Because our common stock currently is not traded on any national securities exchange or other major trading system, we are not subject to any standards regarding the “independence” of our directors. Karl Power and James M. McKelvey are the members of our Board of Directors that are “independent” as defined in Rule 5605(a)(2) of the Listing Rules of the NASDAQ Stock Market.

Committees of the Board of Directors

Pursuant to our Bylaws, our Board of Directors may establish committees of one or more directors from time-to-time as it deems appropriate. The Company has a compensation, audit and strategic planning committees. Additionally, all matters of corporate governance are addressed by the full Board of Directors. In matters involving our directors and their separate interests, only disinterested directors vote.

	Audit	Compensation	Nomination and Governance
Harold Montgomery			X
David Utterback
Jim McKelvey	X	X	X
Karl Power	X(1)	X
Oleg Gordienko
Max Scherbakov

(1)

Mr. Power serves as the Company’s “audit committee financial expert” as defined by applicable SEC rules.

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DESCRIPTION OF BUSINESS

Business Overview

The Market Opportunity

India has a population of over 1.2 billion people. A substantial portion of that population, it is estimated that over 600 million, are unbanked or underbanked — defined as those adults who do not have a bank account or do not have convenient access to their bank account.

According to The World Bank’s report released in January 2018, India has a $2.2 trillion economy growing at 7% per year, and about 95% of all consumer payments are made using cash. Effecting the simplest transactions (e.g., buying cell-phone minutes, paying for cable or satellite television time, and paying electric or water bills) can be both time consuming and inconvenient. Typically, each service has its own payment location, meaning travel for consumers can be significant and waiting lines can be long. In addition, workers moving from the countryside to the city find the process of sending money home in cash or by courier to be risky, unreliable, and expensive. It is difficult to confirm receipt of the funds transfer, and the recipient may experience significant delays in receiving the money.

The objective of MoneyOnMobile is to connect the predominantly cash-using Indian consumer to the digital world through our pan-India retailer network. The primary growth drivers for our business are providing access to digital financial services so the underbanked may convert their cash into digital payments, all through the retailer’s cellular phone, and access to converting value stored in their bank account into cash. This unique commerce environment is ideally suited for a simplified, readily available, digital payments platform to transform physical cash into a digital transaction. The MoneyOnMobile system can process very small transactions cost effectively.

Approximately 200 million people in India are considered “underbanked” meaning those who have a bank account but no reasonable access to a bank or an ATM. India has about 155,000 bank branches and 200,000 full size ATMs — or roughly about 10% of what is required to match the same availability per capita, as we have in the United States. Providing access to funds for the underbanked is another key growth driver for our Company.

MoneyOnMobile Business Model

Our operating strategy is to be the last mile payment processor of choice across India, working with financial institutions, third-party retailers and other service providers to make consumers’ lives easier. There are two important elements of the MoneyOnMobile system which are key to understanding our position in the market and our business key success factors.

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First, we think of the third party retailer as our customer — the local retailer who is selling our services to consumers. It is important for us to provide our retailers with a money-making value proposition that fits both their needs and capabilities and is also appealing to their local consumer base. Our system is based on a revenue sharing model which means our retailers earn more, the more they transact with us. In that way, MoneyOnMobile is an entrepreneurial business opportunity with a low cost of entry.

Our second group of customers are the merchants for whom we process transactions. These are the utility providers, mobile operators, insurance companies and banks to name a few. It is important that we provide useful services from these merchants that draw consumers to our retailer’s location repeatedly. We continue to focus on how we can engage more deeply with each of these target audiences.

Our competitive advantage is our ability to scale, giving us cost advantages. As we continue to significantly expand our retailer base and processing volume, we will incur limited increased costs to our existing infrastructure. This can be achieved as we have a near-zero transaction cost at the margin, so each additional transaction is a large contributor to the bottom line. It does not cost us any more to do a million and one transactions than it does to do a million transactions — nearly all the marginal profit on that incremental transaction goes to our profit. That is characteristic of payment systems in general, and it is beginning to be realized at MoneyOnMobile.

The average transaction size is usually quite low in India — mobile phone top up for example is about $1.00. A domestic remittance is about $50. And our fee on each transaction is usually small as well. Over time, we assess which retailers are going to be the most productive and then capitalize on those high performing relationships. The key to our success is driving increasingly higher levels of small transactions processed at the lowest possible cost.

One of our key operating metrics is processing volume, which is further defined by the amount of actual tendered currency processed through our network. We can grow our processing volume by increasing the number of services offered on our network, by increasing the number of retailers enabled with our service, and by increasing the inventory turn of cash through our network.

We work with a number of banks and payment processors to increase our merchant service offerings, and will continue to expand our number of partners in order to provide more value to consumer’s daily lives. Our retailer growth is directly attributable to our organic sales efforts through our sales team; at the same time, we also grow our number of merchants by signing up existing organizations or cooperatives to our service. The velocity of money within our network increases through two key factors: increasing the number of deposits collected from our retailers on a daily basis, and by our retailers offering a diverse and profitable mix of cash-in and cash-out services from our merchant partners.

Our Proprietary Payment System Technology

MoneyOnMobile’s unique technological advantage is having a proprietary system designed to have the lowest possible cost of transaction processing. We drive the cost of processing a single transaction as low as possible which, in turn, means we can handle small value payments. Our cost to process those small transactions is far lower than other companies active in our market who have built their systems on legacy bank accounts and card-based systems.

Our model is based on “Open Banking”, which is the use of APIs and other means to connect digitally with our third party merchants (e.g. additional utility providers and banks) . Using our proprietary system, we don’t need the so-called “card rails” or physical cards and the point of sale terminals that go with them to provide our cash-in services. We use technology that is already in the hands of our retailers — the cell phone and the SMS communication system. This long-term structural cost advantage is key to our place in the market. By dropping the cost of digital transactions to the lowest possible amount, our system represents a structural shift in the cost-basis of handling small amounts of money.

MoneyOnMobile’s system now enables the vital everyday transactions Indian consumers need to execute, thereby making for more of a one-stop shopping type outcome. The consumer can visit one of our enabled retailers to perform a variety of transactions from our extensive menu of over 55 products and services. Some of the more popular products are domestic money transfer, cash-out services using our MOM ATM, and payments for bills such as electricity and mobile operators. Our platform also enables

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consumers to buy air, train, or bus tickets through our travel product family, buy goods online using our MOM CART, or even purchase insurance for their two-wheel motor bike or scooter. As an example of the potential scalability of our payment system, there are 150 million such two wheel vehicles in India and the insurance market value is $1 billion annually.

How a MoneyOnMobile Transaction Works

First, our retailer joins the MoneyOnMobile system by making a cash deposit with us and becomes trained on our system. We keep a ledger balance of the deposit. Now the retailer is ready to transact using any of our entry level products and services (some services require additional KYC to be performed on the retailer). Next, the consumer visits a MoneyOnMobile enabled retailer with a need to transact — perhaps paying a utility bill. The consumer hands cash to the retailer who then issues a command to our platform via SMS text messaging, mobile app, or desktop to move funds from his digital balance to the consumer’s bill payment destination — in this case, the consumer’s utility provider.

MoneyOnMobile processes the transaction between the consumer, retailer, and utility provider, and then delivers an SMS text receipt to the consumer to document the digital transaction. When the retailer processes enough transactions to use up his digital balance, he makes another cash deposit to his account, starting the cycle all over again. This is how we digitize cash for financial transactions — over 9 million times each month on average — all without any risk of default or non-payment by the retailer.

Short Term Strategic Goals and Objectives

Our focus for growth in the short term is to deepen retailer engagement and productivity. To accomplish these goals, we are expanding the number of products and services our retailers can use which, in turn, allows them to capture a larger share of consumers monthly spend. The objective is to increase the number of transactions per retailer per month, and therefore revenue per retailer, all while keeping costs low. Expanding our product mix also has the impact of increasing retailer loyalty to our platform, making it more likely they will continue to use our proprietary MoneyOnMobile digital payments platform. The constant engagement of retailer and consumer is critical to our long-term success.

Specifically, we will be expanding the number of retailers who can perform cash-out transactions via one of our MOM ATM products currently deployed in the market. Since its launch in 2017, we have continued to see growing demand and have experienced strong revenue growth from our existing MOM ATM deployments. Our MOM ATM expansion strategy will include an emphasis on new cash-out services, to further diversify and grow our revenue base.

Our Products

Our core products can be broken down into two primary categories: cash-in transactions and cash-out transactions. Within the cash-in product category, we perform cash collection services for a wide range of companies including mobile operators, satellite TV providers, utility companies, e-commerce companies, insurance companies and banks. In addition to these services, we originate domestic remittance transactions, which is the sending of money from one consumer within India to another consumer. Within the cash-out product category, we enable consumers to withdraw cash from their bank accounts. We also allow consumers to access their bank account balance for making purchases at any MoneyOnMobile retail shop.

The MOM ATM

The MOM ATM is a small, hand-held, card-swipe device that connects to a smartphone using simple and common wireless technology. A retailer enabled with a MOM ATM becomes a human-based cash-out point for anyone with a bank account. This service has proved popular in regions where consumers have a bank account but do not have a nearby bank branch or ATM. If you compare India’s ATM to population density to that of the US or Europe, India needs an additional 2 million ATMs. To understand the revenue impact of these devices, we conducted an eight-month study which compared MOM ATM stores vs. non-MOM ATM enabled stores. The findings revealed that net revenue generated for the company from enabled retailers grew an average of 172% when comparing to the month prior to taking on a MOM ATM to the first full month of having the MOM ATM.

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The reason for this significant impact is because of the way retail stores operate in India. They are heavily driven by cash in their drawers. They need some cash to operate, but when they get too much, they need to deposit that cash in the bank. Trips to the bank can be very time consuming, leaving them away from their stores for lengthy periods of time. Additionally, the banks are not open during all business hours. By turning these stores into mini-ATMs, the devices help these retailers monetize the cash in their till by processing cash-out transactions for people who need cash, and taking in more cash for domestic remittance and bill payment.

All of this has enabled and encouraged the retailer to use the MoneyOnMobile platform as much as possible and for as many different types of transactions as possible for both the cash in and out process. We saw proof of that maximizing in the study, which found retailers who had the MOM ATM increasing their processing volumes and transaction counts across all the transaction categories they offer, including prepaid mobile top up, bill payment, and domestic remittances.

Recent Developments: New Products Launched

MOM CART

In September 2017, we announced an agreement with ShopClues, one of India’s largest e-commerce marketplaces, to enable the in-store purchase of ShopClues products using the MoneyOnMobile platform at any of MoneyOnMobile’s participating retailers. Now with our new “MOM CART” service, our retailers have access to the entire product inventory from an online product catalog and thus are no longer limited by the size of their shop.

Customers who visit one of our enabled retailers will order from ShopClues, pay for their goods, and have them delivered to their home or the retailer. Based on recent industry data, the e-commerce market in India is expected to triple in size in three years from $38 billion in 2017 to $119 billion in 2020. This latest enhancement to the MoneyOnMobile platform ensures that anyone in India can shop online, and pay with cash. This agreement opens access to the growing e-commerce market for the unbanked and the underbanked in India.

Two Wheeler Insurance

As of October 2017, MoneyOnMobile will serve as a payment collector for insurance providers offering two-wheeler insurance. While the government of India has mandated liability insurance for all motor vehicles, recent research shows that only approximately 40% of vehicles have complied and are insured, leaving a large market of uninsured vehicles. Our retailers will also be able to process the consumer’s annual renewal payment.

MOM Capital

Our MOM Capital product is a loan service which provides working capital support to our retailers. Typical loan amounts will range from $500 to $5,000. MoneyOnMobile earns a commission based on the loan amount, and our platform is used to disperse the funds as well as to collect the loan repayment premiums. The loan risk itself is assumed by a third party provider, not MoneyOnMobile. We send this third party provider the retailer’s financial profile to assess the retailer’s credit worthiness, and the third party makes a determination as to loan terms.

The MOM Capital product is a good example of our ability to handle small value payments cost effectively. The bottom quartile of these loans only has regular loan repayments amounts of just few dollars. It is it not cost effective for another loan provider to reach these retailers without MoneyOnMobile. Additionally, without MoneyOnMobile, the loan provider would not have access to the retailer’s transactional data used as part of their loan assessment.

Bank of India/Additional MOM ATMs

Our primary area of focus for 2018 is to diversify our MOM ATM product line by bringing on another provider of the MOM ATM units and who will assist with the processing of those transactions. In January of 2018, we took the first step in that diversification when we signed an agreement with Bank of India that calls for the initial deployment of an additional 3,000 MOM ATM units with more to follow.

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The Bank of India is a commercial bank with 5,100 branches and one of India’s longest serving and largest banking institutions. The Bank of India will now be our second bank for processing MOM ATM transactions, which adds diversity and strengthens our product line. The unit itself has been updated with a new user-friendly design, and our sales focus for getting these units into stores will be to target stores likely to have high numbers of card purchase transactions as well as cash-out demand.

Aadhaar Enabled Payment System

We are currently in plans to roll out a biometric-based MOM ATM to allow consumers without a debit card to use our cash-out solution. This fingerprint scanner works using the Aadhaar Enabled Payment System, which is part of the India Stack. Aadhar is a 12-digit unique identifier issued to all Indians. As part of this ID program, the consumer’s ten fingerprints are linked to each individual’s number. It is similar to a social security number in the US. Over 1.19 billion people have been enrolled to date, which is almost 99% of the country. A benefit of this ID is that it allows people to link their bank accounts, mobile phones, and other services to this unique identifier.

Our target for this product is the uncarded and underbanked consumer and the retailers who serve them. Since the system integrates with the India Stack, the open banking system in India, we can use this fingerprint scanner to identify people and authorize their use of funds. For some people, this is the only method of accessing their bank account. What is also exciting about this product is that it permits cash-out withdrawals up to five times larger than our current MOM ATMs. When consumers have been logged into the system via this method, it enables them to send larger domestic money transfers, and will be a key component for us to eventually process inbound international remittance in future.

Competition

Much of the payment activity in India has been focused on consumers who are fully banked, meaning people who have a bank account, they have funds in the account, and have access to banking infrastructure such as a nearby bank branch or ATM. These services function as a front-end for purely digital payments, similar to credit and debit cards. Services like PayTM, MobiKwik and Google Tez fall into this category.

MoneyOnMobile, on the other hand, focuses on providing digital payment processing services to small retailers to help them start, maintain and grow their businesses. Our target segment of retailers primarily service the underbanked segment of the consumer population. There are 14,000,000 of these retailers across the country. The consumers of these retailers predominately transact in cash. If these customers have a bank account, their general behavior is to withdraw the funds from these accounts as cash to perform their daily purchases.

Our three primary services provide essential payment solutions for this retailer segment. The first, domestic money transfer, allows retailers to accept cash from their customers and digitally send this cash to any bank account in the country. The second, bill payment, allows consumers to pay their utility bills, top up their prepaid phone, buy travel tickets, etc. Again consumers pay the retailer in cash and the retailer, through the MoneyOnMobile service, digitize this cash and send it to the biller. The third, MOM ATM, allows consumers who have funds in a bank account to access these funds. It is similar in concept to when you use your debit card at the grocery story to pay for your food and the person working the register asks if you would like cash back. This service allows the consumer access to the funds stored in their bank account and allows the retailer to earn a commission off of the cash in their till.

The primary competition of MoneyOnMobile in the market is inertia. In Domestic Remittance, this means consumer continuing to use the informal and unregulated methods of sending funds to another person. For Utility Bills, this means consumers taking time off work, paying to take transportation to a bill payment center and paying their bills there. For the MOM ATM, it is consumers traveling to the closest bank branch or ATM and standing in line to access their funds.

Companies servicing this same retailer segment and who have a nationwide-footprint include Oxigen, EbixCash (formerly known as ItzCash), and Airtel Money. The primary difference between MoneyOnMobile and these services is focus. While these companies do have retailer-oriented services similar to ours, it is not their sole focus. Each of them provides direct consumer services, which puts them into direct competition with the banks. MoneyOnMobile’s focus on the retailer prevents conflict of interest

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with our key banking partners. It also puts them in direct competition with Google’s Tez, PayTM, Facebook’s WhatsApp, and MobiKwik, all of whom have substantially greater financial, technological, research and development, marketing and personnel resources.

Government Regulation

The industry in which we operate is subject to extensive governmental laws and regulations in the United States and India. There are numerous laws and regulations restricting the purchase, sale, and sharing of personal information about consumers, many of which are new and continue to evolve; accordingly, it is difficult to determine whether and how existing and proposed privacy laws may apply to our businesses in the future. Also, there are numerous consumer statutes and regulations, including the Gramm-Leach-Bliley Act, regarding the possession of consumer-level data with which we must comply. Furthermore, government regulations can change with little to no notice and may result in increased regulation of our product(s), resulting in a greater regulatory burden for us.

Payment system operators in India are subject to the Indian Payments and Settlement Systems Act (PASA) 2007 and operate under the authority and board oversight of the Reserve Bank of India (“RBI”). MoneyOnMobile is a semi closed payment instrument with a Prepaid Payment Instruments (PPI) license, which is up from renewal in October 2018. In the licensing period, the RBI reviews the licensee’s operations, systems, and processes and has the authority to revoke a license at any time should operations not continue to meet RBI standards, primarily those relating to the custody of, and accountability for, consumer funds.

Employees

As of March 1st 2018, the Company employed eight employees from its executive offices located in Dallas, Texas. During the year, we utilized independent consultants to assist with certain accounting, financial reporting, and administrative matters. DPPL and MMPL combined employed approximately 300 hundred full and part-time employees. The Company and our affiliates have no employment or collective bargaining agreements and we believe our employee and independent contractor relationships are satisfactory.

Description of Properties

Our corporate offices are currently located at 500 N. Akard Street, Suite 2850, Dallas, Texas 75201. Our India headquarters are located at the MoM House located at 61 Ramchandra Lane, Kanchpada, Mumbai, India 400064.

Intellectual Property

Among the assets acquired and comprising MoneyOnMobile are proprietary software products, trademarks, trade names, Reserve Bank of India license and other intellectual property together with the related patent and copyright filings and documents protecting such property.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS

EXECUTIVE OVERVIEW

Our strategic vision for MoneyOnMobile is to connect the cash-based Indian consumer to the digital world. MoneyOnMobile is a mobile money service provider allowing Indian consumers, through its robust agent network, to use mobile phones to pay for goods and services, or transfer funds from one person to another using simple SMS text functionality. To date we’ve established relationships with 350,000 retailers throughout the country. We’re in every state in India and we cover over 700 cities throughout the country. There are over 200 million Indian customers, based on unique phone numbers, who have conducted a transaction with MoneyOnMobile.

Overall revenue growth for the company is being driven by our domestic remittance and MOM ATM products and services. In August 2017, we achieved a significant milestone by executing 1 million domestic transfer transactions. We launched this product less than two years ago, going from product launch to 1 million transactions per month. Our MOM ATM is one of our largest revenue lines even though it was only introduced during the 2017 calendar year.

RESULTS OF OPERATIONS

The following analysis of the results of operations for the (i) three and nine months ended December 31, 2017 and 2016; and, (ii) fiscal years ended March 31, 2017 and 2016 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this prospectus. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements because of a number of factors. An investment in our common stock involves a high degree of risk. Readers of this prospectus should carefully consider the risks set forth in the Risk Factors section of this prospectus. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” or similar expressions, variations of those terms or the negative of those terms to identify forward-looking statements. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

	Three Months Ended December 31,						Nine Months Ended December 31,
	2017			2016			2017			2016
Revenues, net		$	2,840,563		$	969,442		$	6,043,555		$	3,459,000
Cost of sales			1,321,074			393,758			2,776,477			1,552,670
Gross profit			1,519,489			575,682			3,267,078			1,906,328
Net loss		$	(4,484,345)		$	(2,949,874)		$	(11,030,604)		$	(7,989,461)

For the three months ended December 31, 2017 as compared to the three months ended December 31, 2016

Revenues in 2017 were higher than in 2016 by $1.9 million or 193.0% due to increases in monthly customer base and higher volume of usage by existing consumers. The primary reason for the increase was growth in domestic remittance and MOM ATM products and services. The Company launched its MOM ATM product in January 2017 and has seen increases in units sold and daily transactions. Additionally, gross profit percentage decreased slightly to 53.5% in 2017 compared to 59.4% in 2016. General and administrative costs increased by $1.1 million or 34.8% compared to 2016 due to higher interest expense and employee incentives for stock options.

Additionally, the Company incurred interest expenses of $2.3 million and $0.4 million in 2017 and 2016, respectively. Net losses attributable to MoneyOnMobile, Inc. shareholders were approximately $(3.9) million, or $(0.05) per share in 2017 compared to $(2.4) million, or $(0.04) per share in 2016.

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For the nine months ended December 31, 2017 as compared to the nine months ended December 31, 2016

Revenues in 2017 were higher than in 2016 by $2.6 million or 74.7% due to increases in monthly customer base and higher volume of usage by existing consumers. The primary reason for the increase was growth in domestic remittance and MOM ATM products and services. The Company launched its MOM ATM product in January 2017 and has seen month over month increases in units sold and daily transactions. Additionally, gross profit percentage decreased slightly to 54.1% in 2017 compared to 55.1% in 2016. General and administrative costs increased by $2.7 million or 31.1% compared to 2016 due to higher interest expense and employee incentives for stock options.

Additionally, the Company incurred interest expenses of $3.5 million and $1.3 million in 2017 and 2016, respectively. Net losses attributable to MoneyOnMobile, Inc. shareholders were approximately $(9.2) million, or $(0.13) per share in 2017 compared to $(5.9) million, or $(0.11) per share in 2016.

For Fiscal Year ending March 31, 2017 as compared to Fiscal Year ending March 31, 2016

	2017			2016
	(unaudited)			(unaudited)
Revenues, net:		$	4,259,798		$	6,295,739
Cost of sales:			1,877,235			3,394,859
Gross profit:			2,382,563			2,900,880
Net loss		$	(13,095,503)		$	(19,727,913)

Revenues in 2017 were lower than in 2016 by $(2.0) million or (32.3)% due to decreases in monthly customer base and lower volume of usage by existing consumers as a result of the India governments demonetization policy initiated in early November 2016. Gross profit percentage was 55.9% in 2017 compared to 46.1% in 2016. General and administrative costs decreased by $(3.5) million or (20.0)% compared to 2016 due to lower fund raising costs and cost saving strategies implemented during the current fiscal year.

Also, in 2017 the Company incurred a $(1.6) million impairment loss on goodwill. There was no goodwill impairment loss in 2016. The impairment loss was related to the decline in our Revenues, net for the fiscal year ended March 31, 2017.

Additionally, the Company incurred interest and financing costs of $1.7 million and $3.0 million in 2017 and 2016, respectively. Net losses attributable to MoneyOnMobile, Inc. shareholders were approximately $(10.0) million, or $(0.18) per share in 2017 compared to $(16.0) million, or $(0.34) per share in 2016. Due to net losses, the Company had no current U.S. federal tax provision in either 2017 or 2016 and deferred tax benefits of cumulative net operating losses and other temporary tax differences have been offset by valuation allowances. State income tax reports are assessments not offset by operating losses.

Liquidity and Capital Resources

Our source of liquidity is principally cash generated from operating activities supplemented as necessary on a short-term basis by various capital raising activities, including sales of our common stock in private placements and subordinated debt borrowings not restricted to specific investing activities. We continue to see significant growth potential in our MoneyOnMobile business segment and have increased our investment. To date we have successfully navigated the complexities of capital raising activities in order to fund these long-term investments. The following discussion highlights changes in our debt structure as well as our cash flow activities and the sources and uses of funds during the nine months ended December 31, 2017.

Our independent registered public accounting firm, in its report on our 2017 consolidated financial statements, raised substantial doubt about our ability to continue as a going concern. Our consolidated interim financial statements as of and for the nine months ended December 31, 2017 do not contain any adjustments for this uncertainty. In response to our cash needs, we raised the following funding as described below. Any additional amounts raised will be used for our future investing and operating cash flow needs. However, there can be no assurance that we will be successful in raising additional amounts of financing.

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Recent Financing Activities:

As of December 31, 2017, our liquidity was $4.7 million, comprised of cash and cash equivalents. Our primary ongoing liquidity requirements are to finance working capital, debt service and subsidiary common stock purchase commitments. The company faces large debt repayments in the near-term and is contemplating numerous strategies to meet is debt obligations as they come due.

Subsequent to December 31, 2017, the Company raised $2 million from investors for 2,195 shares of the Company’s Series F Preferred Stock and raised approximately $5.0 million in exchange for 1,666 shares of the Company’s Series H Preferred Stock and warrants to purchase 3,332,000 shares of the Company’s common stock at an exercise price of $0.50 per share. Additionally, subsequent to December 31, 2017, the Company paid MOM HALL, LLC $0.9 million to settle fully its debt obligation. After payment was made, the Company took possession of the shares of DPPL previously held in escrow by MOM HALL, LLC.

Off-Balance Sheet Arrangements

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

Inflation

Inflation and changing prices have had no material effect on our net sales and revenues or on our income from continuing operations over our two most recent fiscal years.

Critical Accounting Policies and Estimates

Our management’s discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to the fair market value of our assets and accrued stock-based compensation expense. We base our estimates on historical experience, known trends, and events and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. In making estimates and judgments, management employs critical accounting policies.

For a description of our critical accounting policies, please see Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended March 31, 2017. There have not been any material changes to our critical accounting policies since March 31, 2017.

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SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated statement of operations data for the fiscal years ended March 31, 2017 and 2016 derived from our audited consolidated financial statements and related notes included elsewhere in this prospectus. The summary financial data for the nine months ended December 31, 2017 and 2016, and as of December 31, 2017, are derived from our unaudited condensed consolidated financial statements appearing elsewhere in this prospectus and are not indicative of results to be expected for the full year. Our financial statements are prepared and presented in accordance with generally accepted accounting principles in the U.S. The results indicated below are not necessarily indicative of our future performance. You should read this information together with the sections entitled “Capitalization,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes included elsewhere in this prospectus.

	Nine months ended December 31,
	2017			2016
	(unaudited)
Consolidated Statement of Operations Data:
Revenues, net		$	6,043,555		$	3,459,000
Cost of revenues			2,776,477			1,552,670
Gross profit			3,267,078			1,906,328
General and administrative expenses
Salaries and wages			3,232,478			2,338,401
Selling, general and administrative			7,606,681			5,682,691
Depreciation and amortization			484,767			617,468
Total general and administrative			11,323,926			8,638,560
Operating loss			(8,056,848)			(6,732,232)
Other income (expenses)
Interest expense			(3,560,378)			(1,257,229)
Change in fair value of derivative liability			(512,098)			—
Gain on extinguishment of derivative liability			1,197,856			—
Accretion of fair value discount			(99,136)			—
Total other income (expenses)			(2,973,756)			(1,257,229)
Loss from operations, before income tax			(11,030,604)			(7,989,461)
Income tax benefit (expense)			—			—
Net loss			(11,030,604)			(7,989,461)
Preferred stock dividends			(144,814)			(277,980)
Net loss attributable to common stockholders			(11,175,418)			(8,267,441)
Net loss attributable to noncontrolling interest			(1,991,842)			(2,383,554)
Net loss attributable to MoneyOnMobile, Inc. shareholders		$	(9,183,576)		$	(5,883,887)
Other comprehensive income (loss):
Currency translation adjustments, net of tax			135,242			(392,921)
Total comprehensive loss		$	(11,040,176)		$	(8,660,362)
Comprehensive loss attributable to:
Noncontrolling interest			(1,933,509)			(2,501,430)
MoneyOnMobile, Inc. shareholders			(9,106,667)			(6,158,932)
Net loss per share attributable to MoneyOnMobile, Inc. shareholders, basic and diluted		$	(0.13)		$	(0.11)
Weighted average number of shares outstanding, basic and diluted			70,449,899			54,214,721

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	Year ended March 31,
	2017			2016
Consolidated Statement of Operations Data:
Revenues, net		$	4,259,798		$	6,295,739
Cost of revenues			1,877,235			3,394,859
Gross profit			2,382,563			2,900,880
General and administrative expenses
Salaries and wages			3,477,776			3,332,645
Selling, general and administrative			8,039,635			13,282,909
Depreciation and amortization			766,578			737,463
Goodwill impairment			1,592,000			—
Total general and administrative			13,875,989			17,353,017
Operating loss			(11,493,426)			(14,452,137)
Other income (expenses)
Interest expense			(1,702,792)			(3,047,358)
Other			—			(163,669)
Total other income (expenses)			(1,702,792)			(3,211,027)
Loss from continuing operations, before income tax			(13,196,218)			(17,663,164)
Income tax benefit (expense)			100,715			(14,827)
Loss from continuing operations			(13,095,503)			(17,677,991)
Income from discontinued operations, net of tax			—			204,127
Loss on sale of discontinued operations, net of tax			—			(2,254,049)
Net loss			(13,095,503)			(19,727,913)
Preferred stock dividends			(323,918)			—
Net loss attributable to common stockholders			(13,419,421)			(19,727,913)
Net loss attributable to noncontrolling interest			(3,405,877)			(3,775,335)
Net loss attributable to MoneyOnMobile, Inc. shareholders		$	(10,013,544)		$	(15,952,578)
Other comprehensive loss:
Currency translation adjustments, net of tax			404,240			(1,423,659)
Total comprehensive loss		$	(13,015,181)		$	(21,151,572)
Comprehensive loss attributable to:
Noncontrolling interest			(3,510,171)			(4,166,775)
MoneyOnMobile, Inc. shareholders			(9,505,010)			(16,984,797)
Net loss per share from continuing operations		$	(0.24)		$	(0.38)
Net loss per share from discontinued operations		$	—		$	(0.04)
Net loss per share, basic and diluted		$	(0.18)		$	(0.34)
Weighted average number of shares outstanding, basic and diluted			55,711,288			47,075,920

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MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market Information

Our common stock is quoted on the OTC Market Group’s OTCQB under the symbol “MOMT.”

Price Range for Common Stock

On March 23, 2018 the last reported sale price of our common stock was $0.4333. On March 23, 2018 there were approximately 520 record holders of our common stock.

The following table sets forth, for the periods indicated, the high and low bid prices of our common stock as reported by the OTC Market Group’s OTCQB. These quotations reflect inter-dealer prices, without retail mark-up, markdown or commission, and may not necessarily represent actual transactions.

	High			Low
Fiscal 2018
First Quarter		$	0.58		$	0.25
Second Quarter			0.43			0.17
Third Quarter			0.30			0.11
Fourth Quarter (Through March 23, 2018)			0.72			0.32
Fiscal 2017
First Quarter		$	0.88		$	0.54
Second Quarter			1.15			0.67
Third Quarter			0.75			0.46
Fourth Quarter			0.60			0.42

DIVIDEND POLICY

We have never paid or declared any cash dividends on our common stock. Our board of directors sets our dividend policy. We currently intend to retain all available funds and any future earnings for use in the operation and expansion of our business, but we may determine in the future to declare or pay cash dividends on our common stock. Any future determination as to the declaration and payment of dividends will be at the discretion of our board of directors ad will depend on then existing conditions, including our financial condition, results of operations, contractual restrictions, capital requirements, business prospects and other factors that our board of directors considers relevant.

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MONEYONMOBILE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	December 31, 2017			March 31, 2017
			(unaudited)
ASSETS
Current Assets
Cash and equivalents		$	4,673,805		$	2,164,993
Due from distributors (Due from Related party: $108,707 and $106,109 as of December 31 and March 31, 2017)			1,362,754			327,535
Advances to aggregators			210,146			396,399
Other current assets			932,862			925,968
Total current assets			7,179,567			3,814,895
Property and equipment, net			3,442,255			3,483,520
Goodwill			12,712,484			12,508,791
Other intangible assets, net			3,968,838			4,286,938
Other non-current assets			371,528			366,979
Total assets		$	27,674,672		$	24,461,123
LIABILITIES AND SHAREHOLDERS’ (DEFICIT)
Current Liabilities
Accounts payable		$	3,616,125		$	1,769,667
Accrued liabilities			6,790,390			2,589,070
Related party payables			2,554,684			2,037,797
Current portion of long-term debt, net			10,505,526			9,508,025
Derivative liability			368,390			—
Advances from distributors			—			2,108,645
Preferred stock dividends			331,250			186,438
Mandatory redeemable financial instruments – current portion			3,034,615			3,010,254
Total current liabilities			27,200,980			21,209,896
Long-term debt			1,957,417			1,970,965
Mandatory redeemable financial instruments – long-term			761,237			1,443,059
Other non-current liabilities			104,536			106,046
Total liabilities			30,024,170			24,729,966
Commitments and contingencies (See Note 14)
Preferred stock Series D, $0.001 par value; 2,142 shares authorized, 1,225 and 1,225 shares issued and outstanding as of December 31 and March 31, 2017, respectively			1,225,000			1,225,000
Preferred stock Series F, $0.001 par value; 10,000 shares authorized, 5,702 and 0 shares issued and outstanding as of December 31 and March 31, 2017, respectively			5,702,100			—
Shareholders’ (Deficit)
Preferred stock Series E, $0.001 par value; 25,000 authorized, 2,530 and 2,530 shares issued and outstanding as of December 31 and March 31, 2017, respectively			3			3
Common stock, $0.001; 200,000,000 shares authorized, 75,820,525 and 64,069,666 shares issued and outstanding as of December 31 and March 31, 2017, respectively			75,820			64,070
Stock subscribed 1,461,365 and 157,143 shares issued and outstanding as of December 31 and March 31, 2017, respectively			1,461			157
Additional paid-in capital			53,983,555			49,550,769
Accumulated deficit			(59,141,714)			(50,102,952)
Cumulative other comprehensive loss			(1,023,454)			(1,080,141)
Total MoneyOnMobile, Inc. shareholders’ (deficit)			(6,104,329)			(1,568,094)
Noncontrolling interest			(3,172,269)			74,251
Total shareholders’ (deficit)			(9,276,598)			(1,493,843)
Total liabilities and shareholders’ (deficit)		$	27,674,672		$	24,461,123

See Notes to Unaudited Condensed Consolidated Financial Statements.

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TABLE OF CONTENTS

MONEYONMOBILE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS

	Three Months Ended December 31,						Nine Months Ended December 31,
	2017			2016			2017			2016
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues, net		$	2,840,563		$	969,442		$	6,043,555		$	3,459,000
Cost of revenues			1,321,074			393,758			2,776,477			1,552,670
Gross profit			1,519,489			575,682			3,267,078			1,906,328
General and administrative expenses
Salaries and wages			1,287,599			825,678			3,232,478			2,338,401
Selling, general and administrative			2,854,114			2,127,425			7,606,681			5,682,691
Depreciation and amortization			140,042			222,440			484,767			617,468
Total general and administrative			4,281,755			3,175,543			11,323,926			8,638,560
Operating loss			(2,762,266)			(2,599,861)			(8,056,848)			(6,732,232)
Other income (expenses)
Interest expense			(2,284,121)			(350,013)			(3,560,378)			(1,257,229)
Change in fair value of derivative liability			(579,795)			—			(512,098)			—
Gain on extinguishment of derivative liability			1,197,856			—			1,197,856			—
Accretion of fair value discount			(56,019)			—			(99,136)			—
Total other income (expenses)			(1,722,079)			(350,013)			(2,973,756)			(1,257,229)
Loss from operations, before income tax			(4,484,345)			(2,949,874)			(11,030,604)			(7,989,461)
Income tax benefit (expense)			—			—			—			—
Net loss			(4,484,345)			(2,949,874)			(11,030,604)			(7,989,461)
Preferred stock dividends			(45,939)			(277,980)			(144,814)			(277,980)
Net loss attributable to common stockholders			(4,530,284)			(3,227,854)			(11,175,418)			(8,267,441)
Net loss attributable to noncontrolling interest			(596,204)			(852,302)			(1,991,842)			(2,383,554)
Net loss attributable to MoneyOnMobile, Inc. shareholders		$	(3,934,080)		$	(2,375,552)		$	(9,183,576)		$	(5,883,887)
Other comprehensive income (loss):
Currency translation adjustments, net of tax			(237,383)			(272,887)			135,242			(392,921)
Total comprehensive loss		$	(4,767,667)		$	(3,500,741)		$	(11,040,176)		$	(8,660,362)
Comprehensive loss attributable to:
Noncontrolling interest			(653,176)			(934,168)			(1,933,509)			(2,501,430)
MoneyOnMobile, Inc. shareholders			(4,114,491)			(2,566,573)			(9,106,667)			(6,158,932)
Net loss per share attributable to MoneyOnMobile, Inc. shareholders, basic and diluted		$	(0.05)		$	(0.04)		$	(0.13)		$	(0.11)
Weighted average number of shares outstanding, basic and diluted			73,519,865			57,333,039			70,449,899			54,214,721

See Notes to Unaudited Condensed Consolidated Financial Statements.

F-3

TABLE OF CONTENTS

MONEYONMOBILE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended December 31,
	2017			2016
			(unaudited)			(unaudited)
OPERATING ACTIVITIES
Net loss		$	(11,030,604)		$	(7,989,461)
Adjustments to reconcile net loss to cash used in operating activities
Subordinated note discount amortization			1,527,866			575,071
Loss on change in value of derivative liability			512,098			—
Accretion of fair value discount			99,136			—
Depreciation and amortization			484,767			617,468
Stock based compensation			618,093			—
Equity awards issued for services			1,680,860			1,513,532
Gain on extinguishment of derivative liability			(1,197,856)			—
Changes in operating assets and liabilities:
Due from distributors			(1,035,219)			310,150
Other assets			174,810			51,537
Related party payables			516,887			521,748
Accounts payable and accrued liabilities			6,451,198			(1,880,782)
Advances from distributors			(2,108,645)			(1,727,591)
Net cash (used in) operating activities			(3,306,609)			(8,008,328)
INVESTING ACTIVITIES
Purchases of property and equipment			(46,963)			(70,423)
Acquisition of intangible assets			—			(50,830)
Net cash (used in) investing activities			(46,963)			(121,253)
FINANCING ACTIVITIES
Payments on notes payable and bank loan			(3,053,392)			(119,650)
Borrowings on senior and subordinate notes			5,488,981			1,349,257
Issuance of common stock and warrants			908,000			650,000
Issuance of preferred stock for cash			3,372,500			4,071,535
Payments to acquire noncontrolling interest			(875,795)			(268,653)
Proceeds from redemption of warrants for common stock			7,966			1,750,407
Change in bank overdrafts			(154,333)			80,505
Contributions made by noncontrolling interest			—			130,715
Reacquisition of common stock			—			(177,369)
Net cash provided by financing activities			5,693,927			7,466,747
Foreign currency effect on cash flows			168,457			(80,220)
Net change in cash and cash equivalents			2,508,812			(743,054)
Cash and cash equivalents at beginning of period			2,164,993			2,119,794
Cash and cash equivalents at end of period		$	4,673,805		$	1,376,740
Supplemental disclosures (Note 15)

See Notes to Unaudited Condensed Consolidated Financial Statements.

F-4

TABLE OF CONTENTS

MONEYONMOBILE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ (DEFICIT)
For the nine months ended December 31, 2017

	Preferred Stock – Series E					Common Stock					Subscribed Stock					Paid-in Capital			Accumulated Deficit			Noncontrolling Interests			Comprehensive Income (Loss)			Total
	Shares		Amount			Shares		Amount			Shares		Amount			Paid-in Capital			Accumulated Deficit			Noncontrolling Interests			Comprehensive Income (Loss)			Total
Balance, March 31, 2017		2,530		$	3		64,069,666		$	64,070		157,143		$	157		$	49,550,769		$	(50,102,952)		$	74,251		$	(1,080,141)		$	(1,493,843)
Issuance of common stock for cash		—			—		3,063,269			3,063		(36,580)			(37)			904,974			—			—			—			908,000
Issuance of common stock for debt		—			—		170,000			170		—			—			42,330			—			—			—			42,500
Issuance of common stock for collateral		—			—		2,000,000			2,000		—			—			(2,000)			—			—			—			—
Issuance of common stock for services		—			—		3,228,455			3,228		150,000			150			901,967			—			—			—			905,345
Warrants issued for services		—			—		—			—		—			—			684,686			—			—			—			684,686
Warrants issued for debt financing		—			—		—			—		—			—			90,829			—			—			—			90,829
Warrants exercised for common stock		—			—		313,401			313		1,190,822			1,191			6,462			—			—			—			7,966
Stock-based compensation – options		—			—		—			—		—			—			618,093			—			—			—			618,093
Preferred dividends – series D		—			—		—			—		—			—			(144,812)			—			—			—			(144,812)
Redeemable purchase of noncontrolling interest		—			—		—			—		—			—			410,755			—			(402,153)			(8,602)			—
Purchase of subsidiary shares from noncontrolling interest		—			—		2,975,734			2,976		—			—			919,502			—			(910,858)			(11,620)			—
Net loss		—			—		—			—		—			—			—			(9,038,762)			(1,991,842)			—			(11,030,604)
Foreign currency translation adjustment		—			—		—			—		—			—			—			—			58,333			76,909			135,242
Balance, December 31, 2017 (unaudited)		2,530		$	3		75,820,525		$	75,820		1,461,385		$	1,461		$	53,983,555		$	(59,141,714)		$	(3,172,269)		$	(1,023,454)		$	(9,276,598)

See Notes to Unaudited Condensed Consolidated Financial Statements.

F-5

TABLE OF CONTENTS

MONEYONMOBILE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2017
(Unaudited)

1 — BASIS OF PRESENTATION

Certain information and footnote disclosures normally included in consolidated financial statements in accordance with U.S. GAAP have been omitted pursuant to requirements of the U.S. Securities and Exchange Commission (“SEC”). A description of our accounting policies and other financial information is included in our audited consolidated financial statements filed with the SEC on Form 10-K for the year ended March 31, 2017. The disclosures included in our accompanying interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and notes thereto included in the Annual Report on Form 10-K. Operating results for the three and nine months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018.

Going Concern

The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company had a net loss of $(4,484,345) and $(11,030,604) for the three and nine months ended December 31, 2017. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is continuing with its plan to expand its mobile payments and ATM processing operations in India. Management believes that its operating strategy will provide the opportunity for the Company to continue as a going concern as long as it continues to obtain sufficient external financing; however, there is no assurance this will occur. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Reclassifications

Certain previously reported amounts have been reclassified to conform to the current presentation.

2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Company believes the carrying values of cash and equivalents, accounts receivable, other current assets, accounts payable, accrued expenses, and interest payable approximate their fair values. Additionally, the Company believes the carrying value of its senior notes, subordinated notes, and note payable approximate the estimated fair value for debt with similar terms, interest rates, and remaining maturities currently available to companies with similar credit ratings.

The estimated fair value of our common stock issued in share-based payments is measured by the more relevant of: (i) the prices received in private placement sales of our stock or; (ii) its publicly-quoted market price. We estimate the fair value of warrants, other than those included in common stock unit purchases, and stock options when issued or vested using the Black-Scholes option-pricing model which requires the input of highly subjective assumptions. Recognition in shareholders’ equity and expense of the fair value of stock options awarded to employees is on the straight-line basis over the requisite service period and, for grants to non-employees, when the options vest. The fair value of exercisable warrants on the date of issuance issued in connection with debt financing transactions or for services are deferred and expensed over the term of the debt or as services are performed.

F-6

TABLE OF CONTENTS

Convertible Instruments, including Derivatives

Certain debt instrument require us to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. This criteria includes (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Debt discounts under these arrangements are amortized over the term of the related debt to their date of redemption.

We possess financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our condensed consolidated balance sheet. We value these derivative liabilities using the binomial lattice model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability as Other income (expense) in our condensed consolidated statements of operations and comprehensive loss.

Based upon ASC 840-15-25, we have adopted a sequencing approach to our outstanding preferred stock. Pursuant to the sequencing approach, we evaluate our contracts based upon earliest issuance date wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares.

Foreign Currency Translation

The functional currency of MoneyOnMobile, consisting of DPPL, MMPL, SVR and Payblox, is the Indian Rupee. MoneyOnMobile assets and liabilities are translated into U.S. dollars at the exchange rates in effect at each consolidated balance sheet date. Revenues and expenses are translated at quarterly average exchange rates and resulting translation gains or losses are accumulated in other comprehensive loss as a separate component within the accompanying statements of s

	INTERIM CONSOLIDATED FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets — December 31, 2017 (unaudited) and March 31, 2017			F-2
	Condensed Consolidated Statements of Operations — Three and Nine Months Ended December 31, 2017 and 2016 (unaudited)			F-3
	Condensed Consolidated Statements of Cash Flows for the Nine Months ended December 31, 2017 and 2016 (unaudited)			F-4
	Condensed Consolidated Statement of Stockholders’ (Deficit) for the Nine Months ended December 31, 2017 (unaudited)			F-5
	Notes to Condensed Consolidated Financial Statements (unaudited)			F-6 to F-23
	ANNUAL CONSOLIDATED FINANCIAL STATEMENTS
	Report of Independent Registered Public Accounting Firm			F-24
	Consolidated Balance Sheets as of March 31, 2017 and 2016			F-25
	Consolidated Statements of Operations for the Years Ended March 31, 2017 and 2016			F-26
	Consolidated Statements of Stockholders’ Equity (Deficit) for the Years Ended March 31, 2017 and 2016			F-28
	Consolidated Statements of Cash Flows for the Years Ended March 31, 2017 and 2016			F-27
	Notes to Consolidated Financial Statements			F-29 to F-55

	Page
Company Overview		1
Summary of the Rights Offering		3
Questions and Answers Relating to the Rights Offering		5
Where You Can Find More Information		11
Note Regarding Forward Looking Statements		11
Risk Factors		13
The Rights Offering		23
Capitalization		30
Dilution		31
Material U.S. Federal Income Tax Consequences		32
Use of Proceeds		37
Plan of Distribution		38
Description of Securities		39
Legal Proceedings		41
Management		42
Security Ownership of Certain Beneficial Owners and Management		46
Legal Matters		50
Experts		50
Business		51
Management’s Discussion and Analysis of Financial Condition and Results		57
Select Financial Information		60
Market For Common Equity and Related Shareholder Matters		63
Index to Consolidated Financial Statements		F-1

	As of
	December 31, 2017			March 31, 2017			March 31, 2016
Consolidated Balance Sheet Data:
Cash		$	4,673,805		$	2,164,993		$	2,119,797
Property and equipment, net			3,442,255			3,483,520			3,508,835
Total assets			27,674,672			24,461,123			31,504,017
Total liabilities			30,024,170			24,729,966			20,510,621
Total MoneyOnMobile, Inc. shareholders’ equity			(6,104,329)			(1,568,094)			5,004,725
Noncontrolling interest (deficit) equity			(3,172,269)			74,251			5,388,671