NOTE 2. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The following entities make up our continuing operations: (1) TOT Group, Inc., a 100 % owned subsidiary formed in Delaware; (2) Netlab Systems, LLC, a wholly owned subsidiary formed in Florida; (3) NetLab Systems IP, LLC, a wholly owned subsidiary formed in Florida; (4) OOO Net Element Russia ( Net Element Russia ), a wholly owned subsidiary formed in Russia; and (5) Net Element Services, LLC, a wholly owned subsidiary formed in Florida. The subsidiaries listed above are the parent companies of several other subsidiaries, which hold the Company s underlying investments or operating entities. TOT Group is the parent company of TOT Payments, LLC ( TOT Payments ) doing business as Unified Payments a wholly owned subsidiary formed in Florida, Aptito, LLC, a 80 % owned subsidiary formed in Florida (acquired June 18, 2013), TOT Group Europe LTD, a wholly owned subsidiary formed in the United Kingdom, Unified Portfolios, LLC, a wholly owned subsidiary formed in Florida and OOO TOT Group Russia, a wholly owned subsidiary formed in Russia. " TOT Payments, LLC is the parent company of: - Process Pink, LLC, a wholly owned subsidiary formed in Florida; - TOT HPS, LLC, a wholly owned subsidiary formed in Florida; - TOT FBS, LLC, a wholly owned subsidiary formed in Florida; - TOT New Edge, LLC, a wholly owned subsidiary formed in Florida; - TOT BPS, LLC, a wholly owned subsidiary formed in Florida " OOO TOT Group Russia is the parent company of its wholly owned subsidiary OOO Digital Provider (f/k/a OOO TOT Money)(a company formed in Russia), Payonline Systems, LLC (a wholly-owned company formed in Russia), Innovative Payment Technologies, LLC (a wholly-owned company formed in Russia) and TOT Group Kazakhstan, a wholly owned subsidiary formed in Kazakhstan. " Netlab Systems, LLC is the parent company of Tech Solutions LTD (Cayman Islands). " Net Element Russia is the parent company of 99% owned OOO TOT Group. " TOT Group Europe LTD is 100% owner of Polimore Capital