Creative Medical Technology Holdings Inc (CELZ)

[BFTunechi]

tem 1. Legal Proceedings

In April 2016, the Company entered into an agreement with a third party to perform banking services. The banking services did not materialize and thus the Company cancelled the agreement in June 2016. The Company and the third party are currently in a dispute as to fees under the agreement. The Company believes no consideration is due as the services were not performed. Any proposed litigation or equivalent will be vigorously defended for which the Company expects to prevail. The dispute is currently being litigated in an New York Supreme Court. As of the date of these financial statements the Company has not recorded a loss provision as the amount is not probable.