Virtual Interactive Technologies (VRVR) Risk Analysis

The market price of our common stock has been and is likely in the future to be volatile. Our common stock price may fluctuate in response to factors such as: - Announcements by us regarding resources, liquidity, significant acquisitions, equity investments and divestitures, strategic relationships, addition or loss of significant customers and contracts, capital expenditure commitments, loan, note payable and agreement defaults, loss of our subsidiaries and impairment of assets,   - Issuance or repayment of debt, accounts payable or convertible debt for general or merger and acquisition purposes,   - Sale of a significant number of shares of our common stock by shareholders,   - General market and economic conditions,   - Quarterly variations in our operating results,   - Investor relation activities,   - Announcements of technological innovations,   - New product introductions by us or our competitors,   - Competitive activities, and   - Additions or departures of key personnel. These broad market and industry factors may have a material adverse effect on the market price of our common stock, regardless of our actual operating performance. These factors could have a material adverse effect on our business, financial condition and results of operations.

Our articles of incorporation currently authorize the issuance of 20,000,000 shares of our preferred shares, of which 645,612 shares of our preferred shares are issued and outstanding at September 30, 2020. Our board of directors has the power to issue shares without shareholder approval, and such shares can be issued with such rights, preference, and limitations as may be determined by our board of directors. The rights of holder of common stock will be subject to and may be adversely affected by the rights of any holders of preferred stock that may be issued in the future. Although we presently have no commitments or contracts to issue any shares of preferred stock, authorized and unissued preferred stock could delay, discourage, hinder or preclude an unsolicited acquisition of our company, could make it less likely that shareholders receive a premium for their shares as a result of any such attempt, and could adversely affect the market prices of, and the voting and other rights, of the holders of outstanding shares of our common stock.

To the extent that any of our officers and directors are also directors and officers of other companies, conflicts of interest may arise between their duties as our officers and directors and as directors and officers of other companies. In addition, in the past the Company entered into supplier, financing and consulting arrangements with entities controlled by directors of the Company, and we may consider entering into such arrangements in the future. These factors could have a material adverse effect on our business, financial condition and results of operations.

Without any anti-takeover provisions, there are limited deterrents for a take-over of our Company, which may result in a change in our management and directors that we cannot control.

The laws of the State of Nevada provide that our directors will not be liable to us or our shareholders for monetary damages for all but certain types of conduct as directors of the company. Our Articles of Incorporation and Bylaws permit us to indemnify our directors and officers against all damages incurred in connection with our business to the fullest extent provided or allowed by law. The exculpation provisions may have the effect of preventing shareholders from recovering damages against our directors caused by their negligence, poor judgment or other circumstances. The indemnification provisions may require us to use our limited assets to defend our directors and officers against claims, including claims arising out of their negligence, poor judgment, or other circumstances.