In connection with a claim filed against the Company by two individuals (the “Plaintiffs”), in the Los Angeles Superior Court, seeking damages for breach of implied covenant of good faith and fair dealing, and promissory fraud, asserting entitlement to two million shares of our common stock the Plaintiffs filed a motion to further amend their complaint., The motion was granted on July 25, 2018 which has delayed the trial date from September 12, 2018 to May 8, 2019 in the Los Angeles Superior Court. Management believes that this case lacks merit and intends to continue to defend it vigorously. As such, no amounts have been provided for in the consolidated financial statements with respect to this claim. In the event that the court decided in favor of the Plaintiffs, the Company may have to issue an additional two million shares of its common stock from treasury, causing dilution for existing shareholders of the Company. Additionally, the Company may have to reimburse the Plaintiffs legal fees for which management does not currently have an estimate.