Health Discovery Corp (HDVY)

[king oil]

Management anticipates that the Registrant will report a net loss for the three months ended June 30, 2016, of $538,265, compared to a loss of $172,428 for the three months ended June 30, 2015. Management believes that the higher net loss will result primarily from the inclusion of an anticipated $255,800 change in the fair value of the warrant liability related to the common stock warrants issued to Series C investors and option awards to employees and consultants.