NET ELEMENT, INC. : Entry into a Material Definitive Agreement, Material Modification to Rights of Security Holders, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

As previously reported, on December 29, 2017, Net Element, Inc. (the "Company"), entered into, and consummated the transactions contemplated by, a Unit Purchase Agreement (the "Purchase Agreement") with ESOUSA Holdings, LLC, a New York limited liability company ("ESOUSA"). Pursuant to the Purchase Agreement, on December 29, 2017, the Company sold to ESOUSA, among other securities, 404,676 five-year warrants to purchase shares of Company common stock (the "Purchase Warrants") at a purchase price of $0.125 per share and exercise price of $11.12 per share.

On November 3, 2021, the Company and ESOUSA agreed to reduce the exercise price of the Purchase Warrants from $11.12 to $6.796 per share (the "Reduced Exercise Price") in consideration for the exercise in full of all, but not less than all, Purchase Warrants by ESOUSA to acquire shares of the Company's common stock.

The Company entered into an exercise price reduction offer letter agreement (the "Letter Agreement") with ESOUSA to purchase a total of 404,676 shares of the Company's common stock. Pursuant to the Letter Agreement, ESOUSA and the Company agreed that ESOUSA would exercise its Purchase Warrants with respect to all of the shares of the Company common stock underlying such Purchase Warrants for the Reduced Exercise Price.

The Company expects to receive aggregate gross proceeds of approximately $2,750,178 from the exercise of the Purchase Warrants by ESOUSA. After the full exercise of the Purchase Warrants by ESOUSA, no Purchase Warrants will be outstanding.

The foregoing description of the Letter Amendment and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the full text of the Letter Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Item 3.03 Material Modifications to Rights of Security Holders.

The information contained above in Item 1.01 is hereby incorporated by reference into this Item 3.03.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

10.1 Letter Agreement, dated as of November 3, 2021 between the Company and

ESOUSA Holdings, LLC
104  Cover Page Interactive Data File (formatted as Inline XBRL)



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