NOTE 2 – LIQUIDITY AND CAPITAL RESOURCES

As of April 30, 2016, The Company had a working capital surplus of approximately $2,061,000. This compares to a working capital deficit of approximately $1,246,000 at April 30, 2015.

The Company’s cash and cash equivalents balance at April 30, 2016 was $2,236,000 as compared to $2,364,000 at April 30, 2015.

The Company's future plans and growth are dependent on its ability to increase revenues and continue its business development efforts surrounding its contract award backlog. If the Company continues to incur losses and revenues do not generate from the backlog as expected, the Company may need to raise additional capital to expand its business and continue as a going concern. The Company currently anticipates that its current cash position, along with the receipt of $1,150,000 associated with the Cooper Union settlement (see Footnote 15 – Subsequent Events), will be sufficient to meet its working capital requirements to continue its sales and marketing efforts for at least 12 months from the filing date of this report. If in the future our plans or assumptions change or prove to be inaccurate, the Company may need to raise additional funds through public or private debt or equity offerings, financings, corporate collaborations, or other means. The Company may also be required to reduce operating expenditures or investments in its infrastructure.