SideChannel Inc (SDCH)

[Slojab]

NOTE 9 - SUBSEQUENT EVENTS

The following individuals were awarded common stock bearing a restrictive legend pursuant to Rule 144: Michael Hufnagel was issued 10,000 shares of common stock as a quarterly employee bonus. Robert LeBlanc was issued 25,000 shares of common for patent work. Gino Mauriello was issued 20,000 shares of common stock for his tenure as a Board Director. Albert Carlson was issued 50,000 shares of common stock as an annual bonus. Eric Marquez was issued 70,000 shares of common stock for his tenure as a Board Director and as a CFO stock award. Michael De La Garza was issued 300,000 shares of common stock for his tenure as Chairman of the Board and as a CEO stock award. The fair value of all 475,000 shares is $2,579,250 and will be recorded in fiscal 2017.

The Company has continued to raise equity financing through a Private Placement Memorandum. After September 30, 2016, the Company has sold 406,500 shares of common shares at $2.00 per share and received $784,520, net of offering costs.

The Company issued 25,000 shares for software termination settlement. The fair value of the shares on December 6, 2016 was $106,250