Trakopolis IoT Corp. announced that the amending agreement entered into between the Company and its lender, ESW Holdings Inc. has expired, rendering the amendments set forth in the Amending Agreement ineffective. As a result of the expiry of the Amending Agreement, the Company believes that it is in non-compliance with two of the covenants in its amended and restated loan agreement with the Lender dated November 27, 2018, as amended on March 15, 2019 relating to liquidity and the annual value of customer contracts. Failure to comply with the covenants in the Loan Agreement would result in an event of default pursuant to the Loan Agreement which could result in an acceleration of repayment of the indebtedness advanced thereunder which could impede Trakopolis' ability to operate as a going concern and may require Trakopolis to seek creditor protection.