Adfitech Inc (fka ADFT)

[Enterprising Investor]

Subsequent Event

After the end of the first quarter 2012, Adfitech was informed that a post-closing client which accounted for 6.5% of total revenues in the first quarter of 2012, and was a significant customer in 2011, will be exiting the mortgage business and discontinuing the use of Adfitech’s services. The expected wind-down plan will last for three to six months with revenues from this client remaining fairly constant for April and May 2012 and subsequently declining. The loss of this client will not result in a decrease in headcount, as we have other internal opportunities for employees. We expect the loss of revenues from this customer in 2012 to be replaced by increased revenues from other customers as discussed in “Results of Operations”.