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657GOLDE6

11/07/16 8:46 AM

#1236 RE: A2dJ #1235

last 10Q:

PART II.

ITEM 1. LEGAL PROCEEDINGS

James Giordano, our previous CEO, filed a lawsuit on August 26, 2015 since refiled on April 14, 2016 in the State of Connecticut in Hartford County. The claim is in a total amount of no less than $220,833 for past salaries. The Company does not agree with this complaint and will respond as soon as practical. The Company has recorded a liability of $175,000 in regards to the disputed claim.