ADVANCED CREDIT TECHNOLOGIES INC

As of March 31, 2021, the Company’s liabilities were $323,040 compared to $337,464 in liabilities as of December 31, 2020. This change in the Company’s financial condition was due to a decrease of $19,595 in accounts payable and accrued expenses, along with an increase of $5,171 in accrued interest.

The Company’s operating expenses were $93,564 for the three months ended March 31, 2021 as compared to $130,538 for the three months ended March 31, 2020. This decrease in operating expenses was primarily due to a one-time software impairment expense in 2020. In addition, the Company’s expenses either decreased or remained flat in all but four expense categories: professional fees, travel and entertainment, rent and other operating expense. The Company experienced changes in expense categories as noted below.

Stock compensation expenses were $0 for the three months ended March 31, 2021, compared to $8,000 for the three months ended March 31, 2020. This decrease in stock compensation expense was due to a one-time grant of common stock for services rendered by an outside contractor in the first quarter of 2020.

Rent expenses were $1,917 for the three months ended March 31, 2021, compared to $195 for the three months ended March 31, 2020. This increase in rent exepnse was due to the Company entering into a new office lease in June of 2020.

During the first three months of 2021, the Company raised $20,000 for the operations of the Company through the unregistered sale of 250,000 shares of restricted common stock. In addition, the Company raised $93,000 for the operations of the Company by way of 4,650,000 recorded as “shares to be issued”. In addition, the Company issued 600,000 shares for officers and directors shares previously disclosed as “shares to be issued”, and the Company renegotiated an agreement with a prior director resulting in an increase in shares to be issued per the agreement from 923,076, which were previously disclosed in “shares to be issued” to 1,600,000.