NOTE 2 - GOING CONCERN

The financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going concern. As of September 30, 2013, the Company had negative working capital of approximately $2,593,000 and an accumulated deficit of approximately $147,789,000. This and other factors raise substantial doubt about the Company’s ability to continue as a going concern.

On July 24, 2013, the Company closed its initial public offering for net proceeds to the Company after deducting underwriter discounts and offering expenses of $6,750,673. On August 19, 2013, the Company closed an over-allotment option for net proceeds to the Company, after deducting underwriter discounts, of $1,027,349. The Company believes that additional funding will be required to finance operations over the next twelve months in order to continue developing our product portfolio and commercialize our products for sale. As of September 30, 2013, the Company has a total backlog of $35,400,000. On September 26, 2013, the company received the last remaining FCC testing needed for xMax cognitive radio products to be available for sale. The Company currently estimates that it will begin to fulfill orders associated with its backlog in the fourth quarter of 2013. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital and to fulfill its existing backlog. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.