of registrant’s principal executive offices
and principal place of business)
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following box. ☐
If any of the securities being registered on this Form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection
with dividend or interest reinvestment plans, check the following box: ☒
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. ☐
If this Form is a registration statement pursuant to General Instruction
I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under
the Securities Act, check the following box. ☐
If this Form is a post-effective amendment to a registration statement
filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule
413(b) under the Securities Act, check the following box. ☐
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large
accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 7(a)(2)(B) of the Securities Act. ☐
This prospectus relates to the proposed resale
or other disposition from time to time of up to 14,333,010 shares of common stock, $0.01 par value per share, of Creative Realities,
Inc. (the “Company”) by the selling shareholders identified in this prospectus. We are not selling any shares of common stock
under this prospectus and will not receive any of the proceeds from the sale or other disposition of common stock by the selling shareholders.
The selling shareholders or their pledgees, assignees
or successors-in-interest may offer and sell or otherwise dispose of the shares of common stock described in this prospectus from time
to time through public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately
negotiated prices. The selling shareholders will bear all commissions and discounts, if any, attributable to the sales of such shares.
We will bear all other costs, expenses and fees in connection with the registration of such shares. See “Plan of Distribution”
beginning on page 5 for more information about how the selling shareholders may sell or dispose of its shares of common stock.
Our common stock is listed on The NASDAQ Capital
Market under the symbol “CREX.” The last reported per share price for our common stock was $1.42, as quoted on The NASDAQ
Capital Market on February 3, 2022.
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement
that we have filed with the Securities and Exchange Commission (the “SEC”), pursuant to which the selling shareholders may,
from time to time, offer and sell or otherwise dispose of the securities covered by this prospectus. You should not assume that the information
contained in this prospectus is accurate on any date subsequent to the date set forth on the front cover of this prospectus or that any
information we have incorporated by reference is correct on any date subsequent to the date of the document incorporated by reference,
even though this prospectus is delivered or securities are sold or otherwise disposed of on a later date. It is important for you to
read and consider all information contained in this prospectus, including the information incorporated by reference into this prospectus,
in making your investment decision. You should also read and consider the information in the documents to which we have referred you
under the captions “Where You Can Find More Information” and “Important Information Incorporated by Reference”
in this prospectus.
Neither we nor the selling shareholders have authorized
any dealer, salesman or other person to give any information or to make any representation other than those contained or incorporated
by reference in this prospectus. You should not rely upon any information or representation not contained or incorporated by reference
in this prospectus. This prospectus does not constitute an offer to sell or the solicitation of an offer to buy any of our securities
other than the securities covered hereby, nor does this prospectus constitute an offer to sell or the solicitation of an offer to buy
any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Persons
who come into possession of this prospectus in jurisdictions outside the United States are required to inform themselves about, and to
observe, any restrictions as to the offering and the distribution of this prospectus applicable to those jurisdictions.
We further note that the representations, warranties
and covenants made in any agreement that is filed as an exhibit to any document that is incorporated by reference in the prospectus were
made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the
parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations,
warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should
not be relied on as accurately representing the current state of our affairs.
Unless the context requires otherwise or unless
otherwise indicated, all references to “Creative Realities,” the “Company,” “we,” “our,”
or “us” refer collectively to Creative Realities, Inc.
This prospectus does not constitute, and any
prospectus supplement or other offering materials related to an offering of securities described in this prospectus will not constitute,
an offer to sell, or a solicitation of an offer to purchase, the offered securities in any jurisdiction to or from any person to whom
or from whom it is unlawful to make such offer or solicitation in such jurisdiction.
PROSPECTUS SUMMARY
The following is a summary of what
we believe to be the most important aspects of our business and the offering of our securities under this prospectus. We urge you to
read this entire prospectus, including the more detailed financial statements, notes to the financial statements and other information
incorporated by reference from our other filings with the SEC. Each of the risk factors could adversely affect our business, operating
results and financial condition, as well as adversely affect the value of an investment in our securities. You should not put undue reliance
on the forward-looking statements in this document, which speak only as of the date on the cover of this prospectus.
Company Overview
Creative Realities, Inc. is a Minnesota corporation
that provides innovative digital marketing technology solutions to a broad range of companies, individual brands, enterprises, and organizations
throughout the United States and in certain international markets. We have expertise in a broad range of existing and emerging digital
marketing technologies across approximately 15 vertical markets, as well as the related media management and distribution software platforms
and networks, device and content management, product management, customized software service layers, systems, experiences, workflows,
and integrated solutions. Our technology and solutions include: digital merchandising systems and omni-channel customer engagement systems;
content creation, production and scheduling programs and systems; a comprehensive series of recurring maintenance, support, and field
service offerings; interactive digital shopping assistants, advisors and kiosks; and, other interactive marketing technologies such as
mobile, social media, point-of-sale transactions, beaconing and web-based media that enable our customers to transform how they engage
with consumers.
Our main operations are conducted directly through
Creative Realities, Inc. and our wholly owned subsidiary Creative Realities Canada, Inc., a Canadian corporation. Our wholly owned subsidiary,
Allure Global Solutions, Inc., a Georgia corporation, is effectively dormant. CRI Acquisition is a wholly owned subsidiary incorporated
to merge into Reflect Systems, Inc. (“Reflect”) in connection with our pending merger between Reflect.
Corporate Organization
Our principal offices are located at 13100 Magisterial
Drive, Ste 100, Louisville, Kentucky 40223, and our telephone number at that office is (502) 791-8800.
We originally incorporated and organized as a
Minnesota corporation under the name “Wireless Ronin Technologies, Inc.” in March 2003. Our business initially focused on
the provision of expertise in digital media marketing solutions to customers, including digital signage, interactive kiosks, mobile,
social media and web-based media solutions. We acquired the assets and business of Broadcast International, Inc., a Utah corporation
and public registrant, through a merger transaction that was effective as of August 1, 2014. Then on August 20, 2014, we consummated
a merger transaction with Creative Realities, LLC, a privately owned Delaware limited liability company, in which we issued a majority
of our issued and outstanding shares of common stock. In that merger transaction, we acquired the interactive marketing technology business
of Creative Realities that we currently operate. Shortly after that merger, we changed our corporate name from “Wireless Ronin
Technologies, Inc.” to “Creative Realities, Inc.” On October 15, 2015, we acquired the assets and business of ConeXus
World Global, LLC, a privately-owned Kentucky limited liability company for which we issued preferred and common stock. In that merger
transaction, we acquired the systems integration and marketing technology business of ConeXus World that we currently operate. On May
23, 2016, we dissolved Broadcast International, Inc. On November 20, 2018, we acquired Allure Global Solutions, Inc. (“Allure”),
an enterprise software development.
Private Placement of Shares of Common Stock and Warrants
On February 3, 2022, the Company entered into a
securities purchase agreement (the “Securities Purchase Agreement”) with the selling shareholder, pursuant to which the Company
agreed to issue and sell to the selling shareholder, in a private placement priced at-the-market under Nasdaq rules, (i) 1,315,000 shares
(the “Shares”) of the Company’s common stock, and accompanying warrants to purchase an aggregate of 1,315,000 shares
of common stock, and (ii) pre-funded warrants to purchase up to an aggregate of 5,851,505 shares of common stock (the “Pre-Funded
Warrants”) and accompanying warrants to purchase an aggregate of 5,851,505 shares of common stock (collectively, the “Private
Placement”). The accompanying warrants to purchase common stock are referred to herein collectively as the “Common Stock Warrants.”
Under the Securities Purchase Agreement, each Share and accompanying warrants to purchase common stock were sold together at a combined
price of $1.535, and each Pre-Funded Warrant and accompanying warrants to purchase common stock were sold together at a combined price
of $1.5349, for gross proceeds of approximately $11.0 million, before deducting placement agent fees and estimated offering expenses payable
by the Company. The Private Placement closed on February 3, 2022. The Company intends to use the net proceeds from the Private Placement
to fund, in part, payment of the closing cash consideration in its pending merger transaction (the “Merger”) with Reflect
Systems, Inc. (“Reflect”), which is expected to be completed on or about February 15, 2022.
Each Pre-Funded Warrant has an exercise price of
$0.0001 per share, is exercisable immediately and will be exercisable until the Pre-Funded Warrant is exercised in full. The Common Stock
Warrants expire five years from the date of issuance, have an exercise price of $1.41 per share and are exercisable immediately.
Under the terms of the Pre-Funded Warrants and
the Common Stock Warrants, the Company may not effect the exercise of any such warrant, and a holder will not be entitled to exercise
any portion of any such warrant, if, upon giving effect to such exercise, the aggregate number of shares of common stock beneficially
owned by the holder (together with its affiliates) would exceed 4.99% of the number of shares of common stock outstanding immediately
after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of such warrant, which percentage
may be increased or decreased at the holder’s election upon 61 days’ notice to the Company subject to the terms of such warrants,
provided that such percentage may in no event exceed 9.99%.
In addition, the Company may not effect the exercise
of any such warrant, and a holder will not be entitled to exercise any portion of any such warrant, for a number of warrant shares in
excess of that number of warrant shares which, upon giving effect to such exercise, would cause (i) the aggregate number of shares of
sommon stock beneficially owned by the holder (together with its affiliates) to exceed 19.99% of the total number of issued and outstanding
shares of common stock of the Company following such exercise, or (ii) the combined voting power of the securities of the Company beneficially
owned by the holder (together with its affiliates) to exceed 19.99% of the combined voting power of all of the securities of the Company
then outstanding following such exercise, in either case as such percentage ownership is determined in accordance with the terms of such
warrant, unless Company shareholder approval is obtained to exceed more than such 19.99% of the total number of issued and outstanding
shares of common stock of the Company following such exercise in accordance with the rules of The Nasdaq Stock Market.
In certain circumstances, upon a fundamental transaction
of the Company, the holders of common stock Warrants will have the right to require the Company to repurchase such warrants at their fair
value using a Black Scholes option pricing formula; provided that such holder may not require the Company or its successor entity to repurchase
such warrants for the Black Scholes value in connection with a fundamental transaction that is not approved by the Board of Directors,
and therefore not within the Company’s control.
The Securities Purchase Agreement contains customary
representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company
and the Purchaser, including for liabilities arising under the Securities Act of 1933, as amended, other obligations of the parties and
termination provisions.
In connection with the Private Placement, the Company
entered into a registration rights agreement (the “Registration Rights Agreement”) with the selling shareholder, pursuant
to which the Company agreed to register for resale the Shares, as well as the shares of common stock issuable upon exercise of the Pre-Funded
Warrants and the Common Stock Warrants (the “Warrant Shares”). Under the Registration Rights Agreement, the Company has agreed
to file a registration statement covering the resale by the Purchaser of the Shares and Warrant Shares (together, the “Registrable
Securities”) no later than February 4, 2022. The Company has agreed to use commercially reasonable efforts to cause such registration
statement to become effective and to keep such registration statement effective until the date the Shares and Warrant Shares covered by
such registration statement have been sold or may be resold pursuant to Rule 144 without restriction (the “Effectiveness Period”).
The Company has agreed to be responsible for all fees and expenses incurred in connection with the registration of the Registrable Securities.
The registration statement of which this prospectus forms a part has been filed in accordance with the Registration Rights Agreement.
The foregoing summary descriptions of the Securities
Purchase Agreement, Pre-Funded Warrants, the Common Stock Warrants, and the Registration Rights Agreement do not purport to be complete
and are qualified in their entirety by reference to the full text of such documents, which are filed as exhibits to the registration statement
of which this prospectus forms a part and are incorporated by reference herein.
This prospectus covers the sale or other disposition
by the selling stockholder of up to the total number of shares of our common stock that were issued to the selling shareholder pursuant
to the Securities Purchase Agreement, plus the total number of shares of our common stock issuable upon exercise of the Pre-Funded Warrants
and the Common Stock Warrants issued to the selling shareholder, without giving effect to the beneficial ownership limitations described
above.
Risk Factors
Our business is subject to
numerous risks. For a discussion of the risks you should consider before purchasing shares of our common stock, see “Risk
Factors” on page 3 of this prospectus.
The Offering
This prospectus relates to the proposed resale
or other disposition from time to time of up to 14,333,010 shares of our common stock, $0.01 par value per share, by the selling shareholder
identified in this prospectus. Such shares are comprised of 1,315,000 Shares purchased by the selling shareholder from the Company, and
13,018,010 Warrant Shares issuable upon the exercise of warrants issued to the selling shareholder. See “Selling Shareholders”
and “Plan of Distribution.”
The selling shareholder may offer to sell the shares
being offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated
prices. Our common stock is listed on the Nasdaq Capital Market under the symbol “CREX.”
We will not receive any of the proceeds from the
sale of shares of our common stock in this offering.
RISK FACTORS
An investment in our securities involves a high
degree of risk. Before purchasing the securities offered by this prospectus, you should carefully consider the risks, uncertainties and
additional information (i) contained herein or in any applicable prospectus supplement, (ii) set forth in our most recent Annual Report
on Form 10-K filed with the SEC on March 10, 2021, which is incorporated by reference into this prospectus, and (iii) set forth in our
future filings with the SEC that are incorporated by reference into this prospectus.
For a description of these reports and documents,
and information about where you can find them, see “Where You Can Find More Information” and “Important Information
Incorporated by Reference.” The risks and uncertainties in this prospectus and in the documents incorporated by reference in this
prospectus are those that we currently believe may materially impact the Company and could result in the loss of all or a portion of
your investment in our common stock. Additional risks not presently known or are currently deemed immaterial could also materially and
adversely affect our financial condition, results of operations, business and prospects.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated
by reference herein contain, and any prospectus supplement may contain, forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended,
or the Exchange Act. All statements other than statements of historical facts contained in this prospectus and the documents incorporated
by reference herein contain, and any prospectus supplement, are forward-looking statements. These statements relate to future events
or to our future financial performance and involve known and unknown risks, uncertainties and other factors which may cause our actual
results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied
by the forward-looking statements. Forward-looking statements may include, but are not limited to, statements about:
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our
ability to satisfy the conditions to consummate our pending merger with Reflect, and upon such consummation, to realize the benefits
of such merger;
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the
adequacy of funds for future operations;
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future
expenses, revenue and profitability;
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trends
affecting financial condition and results of operations;
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ability
to convert proposals into customer orders under mutually agreed upon terms and conditions;
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general
economic conditions and outlook, including those as a result of the COVID-19 pandemic;
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the
ability of customers to pay for products and services received;
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the
impact of changing customer requirements upon revenue recognition;
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customer
cancellations;
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the
availability and terms of additional capital;
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industry
trends and the competitive environment;
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the
impact of the company’s financial condition upon customer and prospective customer relationships;
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potential
litigation and regulatory actions directed toward our industry in general;
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the
ultimate control of our management and our Board of Directors by our controlling shareholder, Slipstream Communications, LLC;
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our
reliance on certain key personnel in the management of our businesses;
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employee
and management turnover;
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the
existence of material weaknesses in internal controls over financial reporting;
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the
inability to successfully integrate the operations of acquired companies; and
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the
fact that our common stock is presently thinly traded in an illiquid market.
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In some cases, you can identify forward-looking
statements by terms such as “may”, “will”, “should”, “could”, “would”, “expects”,
“plans”, “anticipates”, “believes”, “estimates”, “projects”, “predicts”,
“potential” “propose,” and similar expressions (or the negative versions of such words or expressions) intended
to identify forward-looking statements.
These statements reflect our current views with
respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not
place undue reliance on these forward-looking statements. We discuss many of these risks in greater detail in our reports filed from
time to time under the Securities Act and/or the Exchange Act. We encourage you to read these filings as they are made. Also, these forward-looking
statements represent our estimates and assumptions only as of the date of the document containing the applicable statement.
You should read this prospectus, the documents
incorporated by reference herein, and any prospectus supplement that we have authorized for use in connection with this offering completely
and with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking
statements in the foregoing documents by these cautionary statements.
Unless required by law, we undertake no obligation
to update or revise any forward-looking statements to reflect new information or future events or developments. Thus, you should not
assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements.
USE OF PROCEEDS
We will not receive any of the proceeds from the
sale of shares of our common stock in this offering. The selling shareholder will receive all of the proceeds from this offering.
SELLING SHAREHOLDERS
The shares of common stock being offered by the
selling shareholders are those previously issued to the selling shareholders, and those issuable to the selling shareholders, upon exercise
of the warrants. For additional information regarding the issuances of those shares of common stock and warrants, see “Prospectus
Summary-- Private Placement of Shares of Common Stock and Warrants” above. We are registering the shares of common stock in order
to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of the shares of common
stock and the warrants, the selling shareholders have not had any material relationship with us within the past three years.
The table below lists the selling shareholders
and other information regarding the beneficial ownership of the shares of common stock by each of the selling shareholders. The second
column lists the number of shares of common stock beneficially owned by each selling shareholder, based on its ownership of the shares
of common stock and warrants, as of February 3, 2022, assuming exercise of the warrants held by the selling shareholders on that date,
without regard to any limitations on exercises.
The third column lists the
shares of common stock being offered by this prospectus by the selling shareholders.
In accordance with the terms of a registration
rights agreement with the selling shareholders, this prospectus generally covers the resale of the sum of (i) the number of shares of
common stock issued to the selling shareholders in the “Prospectus Summary--Private Placement of Shares of Common Stock and Warrants”
described above and (ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if
the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement was initially
filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment
as provided in the registration right agreement, without regard to any limitations on the exercise of the warrants. The fourth column
assumes the sale of all of the shares offered by the selling shareholders pursuant to this prospectus.
Under the terms of the warrants, a selling shareholder
may not exercise any such warrants to the extent such exercise would cause such selling shareholder, together with its affiliates and
attribution parties, to beneficially own a number of shares of common stock which would exceed 4.99% or 9.99%, as applicable, of our then
outstanding shares of common stock following such exercise, excluding for purposes of such determination shares of common stock issuable
upon exercise of such warrants which have not been exercised. The number of shares in the second and fourth columns do not reflect this
limitation. The selling shareholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”
Name of Selling Shareholder
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Number of Shares of
Common Stock
Owned Prior to
Offering
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Maximum Number of
Shares of Common
Stock to be Sold
Pursuant to this
Prospectus
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Number of Shares of
Common Stock
Owned After
Offering
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Armistice Capital Master Fund Ltd.(1)
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14,333,010
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14,333,010
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0
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(1)
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Armistice Capital Master Fund Ltd., a Cayman Islands exempted company, or the Master Fund, holds (i)
1,315,000 shares of common stock, (ii) Pre-Funded Warrants to purchase 5,851,505 shares of common stock, and (iii) Common Warrants
to purchase up to 7,166,505 shares of common stock. The Pre-Funded Warrants and Common Warrants are each subject to certain
beneficial ownership limitations that prohibit the Master Fund from exercising any portion of either of them if, following the
exercise, the Master Fund’s ownership of our common stock would exceed the relevant warrant’s ownership limitations. The
shares held by the Master Fund may be deemed to be indirectly beneficially owned by: (i) Armistice Capital, LLC, or Armistice
Capital, as the investment manager of the Master Fund, and (ii) Steven Boyd, as the Managing Member of Armistice Capital. Armistice
Capital and Mr. Boyd disclaim beneficial ownership of the securities except to the extent of their respective pecuniary interests
therein.
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PLAN OF DISTRIBUTION
Each selling shareholder (the “Selling
Shareholder”) of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell
any or all of their securities covered hereby on the principal trading market or any other stock exchange, market or trading facility
on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Shareholder
may use any one or more of the following methods when selling securities:
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ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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block
trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block
as principal to facilitate the transaction;
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purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;
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an
exchange distribution in accordance with the rules of the applicable exchange;
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privately
negotiated transactions;
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settlement
of short sales;
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in
transactions through broker-dealers that agree with the Selling Shareholders to sell a specified number of such securities at a stipulated
price per security;
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through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
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a
combination of any such methods of sale; or
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any
other method permitted pursuant to applicable law.
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The Selling Shareholders
may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the “Securities
Act”), if available, rather than under this prospectus.
Broker-dealers engaged by
the Selling Shareholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from the Selling Shareholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts
to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of
a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown
in compliance with FINRA Rule 2121.
In connection with the sale
of the securities or interests therein, the Selling Shareholders may enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The Selling
Shareholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The Selling Shareholders may also enter into option or other transactions with
broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution
may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The Selling Shareholders
and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the
meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents
and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the
Securities Act. Each Selling Shareholders has informed the Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.
The Company is required to
pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify
the Selling Shareholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We agreed to keep this prospectus
effective until the earlier of (i) the date on which the securities may be resold by the Selling Shareholders without registration and
without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance
with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities
have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition,
in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and regulations under the
Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities
with respect to the shares of common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement
of the distribution. In addition, the Selling Shareholders will be subject to applicable provisions of the Exchange Act and the rules
and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the shares of common stock by
the Selling Shareholders or any other person. We will make copies of this prospectus available to the Selling Shareholders and have informed
them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with
Rule 172 under the Securities Act).
LEGAL MATTERS
The validity of any securities offered from time
to time by this prospectus and any related prospectus supplement will be passed upon by Maslon LLP, Minneapolis, Minnesota.
EXPERTS
The financial statements of Creative Realities, Inc. and subsidiaries
as of December 31, 2020, and for the year then ended, incorporated by reference in this Prospectus by reference to the Company’s
Annual Report on Form 10-K for the year ended December 31, 2020, have been audited by Deloitte & Touche LLP, an independent registered
public accounting firm, as stated in their report. Such financial statements are incorporated by reference in reliance upon the report
of such firm given upon their authority as experts in accounting and auditing.
The consolidated balance sheet of Creative Realities,
Inc. and subsidiaries as of December 31, 2019, and the related consolidated statements of operations, shareholders’ equity, and
cash flows for the year then ended, have been audited by EisnerAmper LLP, independent registered public accounting firm, as stated in
their report which is incorporated herein by reference, which report includes an explanatory paragraph that refers to Creative Realities,
Inc.’s change in accounting for leases. Such financial statements have been incorporated herein in reliance on the report of such
firm given upon their authority as experts in accounting and auditing.
Baker Tilly US, LLP, an independent registered
public accounting firm, has audited Reflect Systems, Inc.’s financial statements as of December 31, 2020 and 2019 and for the years
ended December 31, 2020 and 2019 incorporated by reference in this Prospectus by reference to the Company’s Current Report on Form
8-K filed February 4, 2022. Such financial statements have been incorporated in this prospectus in reliance upon the report of such firm
given upon their authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy statements and other information
regarding issuers that file electronically with the SEC, including us. The address of the SEC website is www.sec.gov.
The representations, warranties and covenants
made by us in any agreement that is filed as an exhibit to the registration statement of which this prospectus is a part were made solely
for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such
agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties
or covenants were made as of an earlier date. Accordingly, such representations, warranties and covenants should not be relied on as
accurately representing the current state of our affairs.
We maintain an Internet site at http://www.cri.com.
Information found on, or accessible through, our website is not a part of, and is not incorporated into, this prospectus, and you should
not consider it part of this prospectus or part of any prospectus supplement.
IMPORTANT INFORMATION INCORPORATED BY REFERENCE
The SEC allows us to “incorporate by reference”
information into this prospectus, which means that we can disclose important information to you by referring you to another document
filed separately with the SEC. You should read the information incorporated by reference because it is an important part of this prospectus.
Information in this prospectus supersedes information incorporated by reference that we filed with the SEC prior to the date of this
prospectus, while information that we file later with the SEC will automatically update and supersede the information in this prospectus.
We incorporate by reference into this prospectus and the registration statement of which this prospectus is a part the information or
documents listed below that we have filed with the SEC:
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●
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Our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on March 10, 2021;
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●
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Our Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2021, June 30, 2021
and September 30, 2021, which were filed with the SEC on May 17, 2021, August 16, 2021 and November 15, 2021, respectively; and
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●
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Current Reports on Form 8-K (or amendment(s) thereto) filed with the SEC on January
7, 2021, January
15, 2021, February
3, 2021, February
19, 2021, March
4, 2021, May 19, 2021, November 15, 2021, February 1, 2022 and February 4, 2022; and
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|
●
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The description of the Company’s common stock set forth in into the Company’s Registration Statement on Form 8-A filed with the SEC on November 14, 2018 by reference to the description under the caption “Description of Securities – Common Stock” in the prospectus forming a part of the Company’s Registration Statement on Form S-1, as amended (Registration No. 333-225876), which was filed with the SEC on October 31, 2018.
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We also incorporate by reference any future filings
(other than current reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that are related to such
items unless such Form 8-K expressly provides to the contrary) made with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Exchange Act, including those made after the date of the initial filing of the registration statement of which this prospectus is a part
and prior to effectiveness of such registration statement, until we file a post-effective amendment that indicates the termination of
the offering of the common stock made by this prospectus and will become a part of this prospectus from the date that such documents
are filed with the SEC. Information in such future filings updates and supplements the information provided in this prospectus. Any statements
in any such future filings will automatically be deemed to modify and supersede any information in any document we previously filed with
the SEC that is incorporated or deemed to be incorporated herein by reference to the extent that statements in the later filed document
modify or replace such earlier statements.
We will provide at no cost to each person, including
any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the documents that are incorporated by reference in
this prospectus but not delivered with this prospectus, including exhibits that are specifically incorporated by reference in such documents.
You may request a copy of such documents by writing or telephoning us at the following address or telephone number:
Creative Realities, Inc.
Attention: Corporate Secretary
13100 Magisterial Drive, Suite 100
Louisville, KY 40223
(502) 791-8800
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses Of Issuance And Distribution.
The following table sets forth the estimated costs
and expenses, other than underwriting discounts and commissions, payable by us in connection with the offering of securities being registered.
The selling shareholders will not bear any portion of such expenses. All the amounts shown are estimates, except for the SEC registration
fee.
SEC registration fee
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$
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1,793.70
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Legal fees and expenses
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$
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10,000
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Accounting fees and expenses
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$
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30,000
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Miscellaneous expenses
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$
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2,000
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Total
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$
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43,793.70
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Item 15. Indemnification of Directors and Officers.
The registrant is subject to Minnesota Statutes,
Chapter 302A, the Minnesota Business Corporation Act (the “Corporation Act”). Section 302A.521 of the Corporation
Act provides in substance that, unless prohibited by its articles of incorporation or bylaws, a Minnesota corporation must indemnify an
officer or director who is made or threatened to be made a party to a proceeding by reason of the former or present official capacity
of the person against judgments, penalties, fines, including, without limitation, excise taxes assessed against the person with respect
to an employee benefit plan, settlements, and reasonable expenses, including attorneys’ fees and disbursements, incurred by such
person in connection with the proceeding, if certain criteria are met. These criteria, all of which must be met by the person seeking
indemnification, are as follows: (a) such person has not been indemnified by another organization or employee benefit plan for the
same judgments, penalties, fines, including, without limitation, excise taxes assessed against the person with respect to an employee
benefit plan, settlements, and reasonable expenses, including attorneys’ fees and disbursements, incurred by the person in connection
with the proceeding with respect to the same acts or omissions; (b) such person must have acted in good faith; (c) no improper
personal benefit was obtained by such person and such person satisfied certain statutory conflicts of interest provisions, if applicable;
(d) in the case of a criminal proceeding, such person had no reasonable cause to believe that the conduct was unlawful; and (e) in the
case of acts or omissions occurring in such person’s performance in an official capacity, such person must have acted in a manner
such person reasonably believed was in the best interests of the corporation or, in certain limited circumstances, not opposed to the
best interests of the corporation. In addition, Section 302A.521, subd. 3, requires payment by the registrant, upon written request,
of reasonable expenses in advance of final disposition in certain instances. A decision as to required indemnification is made by a majority
of the disinterested directors present at a meeting at which a disinterested quorum is present, or by a designated committee of disinterested
directors, by special legal counsel, by the disinterested shareholders, or by a court.
The registrant also maintains a director and officer
insurance policy to cover the registrant, its directors and its officers against certain liabilities. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted for our directors, officers, and controlling persons pursuant to the foregoing provisions
or otherwise, we have been advised that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.
Item 16. Exhibits.
The following exhibits are filed as part of this
registration statement:
Exhibit
Number
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Description
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3.1
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Articles of Incorporation, as amended (incorporated by reference to registrant’s Amendment No. 1 to Form SB-2 filed on October 12, 2006).
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3.2
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Articles of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the registrant’s Form 8-K filed with the SEC on September 17, 2014)
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3.3
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Articles of Amendment Filed on October 17, 2018 (incorporate by reference to Exhibit 3.3 to the registrant’s registration statement on Form S-1 filed October 17, 2018)
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3.4
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Series A-1 Convertible Preferred Stock Certificate of Designation of Preferences, Rights and Limitations filed October 30, 3015 (incorporated by reference to Exhibit 4.2 of the registrant’s Registration Statement on Form S-1 filed with the SEC on February 11, 2016)
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3.5
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Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the registrant’s Form 8-K filed with the SEC on September 17, 2014)
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3.6
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Articles of Amendment (incorporated by reference to Exhibit 3.1 to the registrant’s Form 8-K filed with the SEC on October 16, 2014)
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3.7
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Articles of Amendment Filed on October 17, 2018 (incorporated by reference to Exhibit 3.3 to the registrant’s registration statement on Form S-1 filed October 17, 2018)
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3.8
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Statement of Cancellation of Certificate of Designation of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the registrant’s Form 8-K filed with the SEC on March 18, 2019)
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3.9
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Statement of Cancellation of Certificate of Designation of Series A-1 Convertible Preferred Stock (incorporated by reference to Exhibit 3.2 to the registrant’s Form 8-K filed with the SEC on March 18, 2019)
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3.10
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Amended and Restated Bylaws (incorporated by reference to the registrant’s Current Report on Form 8-K filed on November 2, 2011)
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4.1
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Specimen certificate evidencing shares of Common Stock (incorporated by reference to Exhibit 4.2 of the registrant’s Registration Statement on Form SB-2 (File No. 333-136972), filed with the SEC on August 29, 2006).
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4.2
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Description of Registrant’s Securities (incorporated by reference to the registrant’s Annual Report on Form 10-K filed with the SEC on March 13, 2020)
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4.3
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Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed February 4, 2022)
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4.4
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Form of Common Stock Warrant (incorporated by reference to Exhibit 4.2 to the registrant’s Current Report on Form 8-K filed February 4, 2022)
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5.1
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Opinion of Maslon LLP*
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10.1
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Form of Securities Purchase Agreement dated February 3, 2022 by and between Creative Realities, Inc. and the selling shareholders (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed February 4, 2022)
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10.2
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Form of Registration Rights Agreement dated February 3, 2022 by and between Creative Realities, Inc. and the selling shareholders (incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed February 4, 2022)
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23.1
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Consent of Baker Tilly US, LLP*
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23.2
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Consent of EisnerAmper LLP*
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23.3
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Consent of Deloitte & Touche LLP*
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23.4
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Consent of Maslon LLP (included as part of Exhibit 5.1)*
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24.1
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Power of Attorney (included on signature page)
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107
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Filing Fee Table*
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Item 17. Undertakings.
The undersigned registrant hereby undertakes:
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(a)
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(1)
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To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
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(i)
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to include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
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(ii)
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to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, an increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
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(iii)
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to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
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provided, however, that the undertakings set forth in
paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective amendment by
those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section
15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form
of prospectus filed pursuant to Rule 424(b) of this chapter that is part of the registration statement.
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(2)
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That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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(3)
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To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
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(5)
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That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser:
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(i)
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Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
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(ii)
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Each prospectus required to be filed pursuant to Rule 424(b)(2), 424(b)(5), or 424(b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), 415(a)(1)(vii), or 415(a)(1)(x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
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(6)
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That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
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(i)
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Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
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(ii)
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Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
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(iii)
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The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
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(iv)
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Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
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(b)
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The undersigned registrant hereby undertakes that, for the purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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(h)
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Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form
S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city
of Louisville, state of Kentucky, on February 4, 2022.
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CREATIVE REALITIES, INC.
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/s/ Richard Mills
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Richard Mills
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Chief Executive Officer
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POWER OF ATTORNEY
Each person whose signature appears below hereby
constitutes and appoints Richard Mills and Will Logan, and each of them, as his true and lawful attorneys-in-fact and agents, with full
power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents
and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or his substitutes
or substitute, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated below.
Signature
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Title
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Date
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/s/ Richard Mills
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Director, Chief Executive Officer
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February 4, 2022
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Richard Mills
|
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(principal executive officer)
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/s/ Dennis McGill
|
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Chairman of the Board
|
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February 4, 2022
|
Dennis McGill
|
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/s/ Will Logan
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Chief Financial Officer
|
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February 4, 2022
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Will Logan
|
|
(principal accounting and financial officer)
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/s/ Donald A. Harris
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Director
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February 4, 2022
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Donald A. Harris
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/s/ Stephen Nesbit
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Director
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February 4, 2022
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Stephen Nesbit
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/s/ David Bell
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Director
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February 4, 2022
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David Bell
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