Fonon Corp. (fka FNON)

[pitboss22]

Completion of Acquisition or Disposition of Assets.

As previously reported on the Current Report on Form 8-K of Raptor Networks Technology, Inc. (the “Company”) filed with the Securities and Exchange Commission on July 11, 2011 (the “Prior Report”), on July 6, 2011, California Capital Equity, LLC (“CCE”), holder of all of the Company’s senior notes, provided the Company notice of default under the senior notes, declaring all amounts thereunder due and payable in full, and of CCE’s intent to exercise its rights and remedies as a secured lender against the Company’s assets.

On August 1, 2011, CCE, in its capacity as a secured lender, held a public foreclosure sale (the “Public Sale”) of substantially all of the Company’s assets, including, but not limited to, the Company’s inventory, equipment, machinery, intellectual property, accounts receivable and other intangibles (collectively, the “Assets”). CCE was the only bidder at the Public Sale, acquiring all of the Assets for a credit bid in the amount of $100,000. The remaining balance of the senior notes in the amount of approximately $11,300,000 remains as an outstanding obligation of the Company.