Note 7.

Common Stock

During the first quarter ended March 31, 2015, the Company issued 240,625 shares of unregistered stock to qualified individuals pursuant to exemptions from registration under Regulation D and Section 4(2) of the Securities Act of 1933 at 1.60 for proceeds of $357,000, net of $ 28,000 of issuance costs. Further, the Company issued 12,000 shares of common stock in a Series D Preferred Stock conversion as further discussed in Note 8. During the second quarter ended June 30, 2015 the Company issued 711,250 shares at $1.60 for proceeds of $1,138,000 to the President of UNIC Medical of China. UNIC is the Company’s distributor in China and other Asian countries.