“In the case of Venture Lending & Leasing -vs- Vert Capital Corp, Pocket Games and its recently acquired subsidiary, Kicksend, were named as defendants in court documents and a judgement filed against Pocket Games as Adam Levin’s company, Vert Capital, put up no defense to the case against them. Pocket Games is in communication with Venture Lending & Leasing and, as of August 2018, an agreement in principle is in discussion to resolve the issue. Based on this judgement, the Company has recorded accrued judgement payable and loss on deconsolidation in the amount of $1,068,339 for the year ended October 31, 2016.”