SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2017

NOTE G – SUBSEQUENT EVENT

On July 10, 2017, the Company was notified that it was not awarded a contract with a state agency for which it has held a contract in excess of 10 years. The contract in question is included in the February 2016 complaint that the Company filed in the Supreme Court of the State of New York in Columbia County against Premier Biotech Inc., Premier Biotech Labs, LLC (“together “Premier Biotech”) and its principals, including its President Todd Bailey, and Peckham Vocational Industries, Inc (“Peckham”). (together the “Defendants”). The complaint seeks preliminary and permanent injunctions and a temporary restraining order against the Defendants (for their benefit or the benefit of another party or entity) related to the solicitation of Company customers (specifically related to this customer and others) as well as damages related to any profits and revenues that would result from actions taken by the Defendants related to Company customers (specifically related to this customer and others). The Company believes that the Defendants actions related to this customer and a RFP that was issued by the state agency resulted in the loss of the contract award to the Company and the award of the contract to Peckham and Premier Biotech. This contract historically accounted for 10-15% of the Company’s annual revenue. The Company will continue to hold its current contract with the agency through September 30, 2017. The Company did protest the award of the contract to Peckham and Premier Biotech, and the state agency advised the Company on July 26, 2017 that they denied the Company’s protest of the award. The Company is currently reviewing whether further actions can be taken related to this account.