NOTE 8.

OTHER ITEMS:

The Company has accrued approximately $0.6 million for payment of dividend on its Series A Preferred Stock due for the quarter ended March 31, 2018. The Company has been unable to declare and pay such dividend due to a lack of available cash. The Company is working to raise capital from which it would be able to pay the dividend owed; however, there can be no assurance that the Company will be able to raise any capital or pay the dividend. The Company is also negotiating with its Series A Preferred Stock holders regarding the payment of the accrued dividend and to amend the terms of its Series A Preferred Stock.