BOLLINGER INNOVATIONS, INC. — Director's Dealing 2014

Sep 18, 2014

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Net Element, Inc. (NETE)
CIK: 0001499961
Period of Report: 2014-09-15

Reporting Person: Arco Group LLC (10% Owner)
Reporting Person: Piovanetti Francesco (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2014-09-15	Common Stock	S	100000	$4.8268	Disposed	1055520	Direct
2014-09-15	Common Stock	S	100000	$4.3605	Disposed	955520	Direct
2014-09-15	Common Stock	S	50000	$4.153	Disposed	905520	Direct
2014-09-15	Common Stock	S	100000	$4.031	Disposed	805520	Direct
2014-09-15	Common Stock	S	52352	$4.0234	Disposed	753168	Direct
2014-09-15	Common Stock	S	100000	$4	Disposed	653168	Direct
2014-09-15	Common Stock	S	50000	$3.7164	Disposed	603168	Direct
2014-09-15	Common Stock	S	25000	$3.6654	Disposed	578168	Direct
2014-09-15	Common Stock	S	250000	$3.0006	Disposed	328168	Direct
2014-09-17	Common Stock	S	50000	$3.6406	Disposed	278168	Direct
2014-09-17	Common Stock	S	102648	$3.2657	Disposed	175520	Direct
2014-09-17	Common Stock	S	170000	$2.9148	Disposed	5520	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Warrants	$7.5	2017-10-02	Common Stock (3714000)	3714000	Direct

Footnotes

F1: Mr. Piovanetti is the ultimate beneficial owner of 5,520 shares of common stock, par value $0.0001 per share, of the Issuer (the "Shares"), consisting of: (i) 4,600 Shares held by Bond Street Management LLC ("BSM"); and (ii) 920 Shares held by Arco International Group LLC ("AIG"). Mr. Piovanetti owns one third of the outstanding equity interest in BSM And has voting control, investment discretion and dispositive power over the Shares held by BSM. Mr. Piovanetti is the ultimate beneficiary of AIG and has voting control, investment discretion and dispositive power over the Shares held by AIG.

F2: Each of Arco Group LLC ("Arco Group"), Mr. Piovanetti, BSM and AIG disclaim beneficial ownership of these Shares except to the extent of their respective pecuniary interest therein.

F3: Mr. Piovanetti has a majority, controlling interest in Arco Group and, consequently, Mr. Piovanetti has investment discretion and dispositive power over the Shares held by Arco Group. Thus, Mr. Piovanetti is considered an indirect owner of said Shares.

F4: Mr. Piovanetti is the ultimate beneficiary of 3,714,000 warrants of the Issuer with an exercise price of $7.50 per share and an expiration date of October 2, 2017 (the "Warrants"), which are held by Arco Group. Thus, Mr. Piovanetti is considered an indirect owner of said Warrants.

F5: Each of Arco Group and Mr. Piovanetti disclaim beneficial ownership of these Warrants except to the extent of their respective pecuniary interest therein.