ITEM 1. LEGAL PROCEDINGS
A previous director of the Company, Darren Hamans, has initiated arbitration proceedings against the Company for unpaid wages and unissued shares of common stock of the Company, stemming from an employment agreement, dated May 8, 2015. The Company believes the claim has no merit as Mr. Hamans was paid fair consideration for the services provided. The Company has attempted to reach an amicable settlement with Mr. Hamans without harming its shareholders. However, such settlement has not been reached and the Company intends to dispute the claim vigorously.