Quantum Capital Inc. (QTCI)

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The company has retired the larger $75,000-dollar convertible note (principle and interest) associated with the acquisition, leaving the smaller $50,000 dollar convertible note with a maturity date of December 14, 2017, the company expects to utilize its option and retire the note with cash not shares. There currently are no other convertible notes.

After retiring the note, the current capitalization of the company is as follows:

Outstanding Shares: 353,823,324

Restricted Shares: 232,400,000 (203,679,586 held by management.)

Free Trading: 121,423,324

At this current time, the company does not anticipate any change in the capitalization of the company.