1.	The Company

Le@P Technology, Inc. (the “Company”) currently has no business operations, and has no revenues or revenue-producing activities (with the limited exception that, as noted in Section 1 of this Item 1 below, [the Company] currently leases the Real Property (as defined below) on a month-to-month basis). The Company has ongoing expenses as well as substantial indebtedness and liabilities.

As previously reported on the Company’s Current Report on Form 8-K dated December 27, 2012 (the “December 2012 8-K”), the M. Lee Pearce Living Trust (the “Majority Stockholder Trust”), of which the Company’s indirect and beneficial majority stockholder, M. Lee Pearce, M.D. (“Dr. Pearce”), is the 100% beneficial owner (Dr. Pearce, together with entities owned or controlled by him that own capital stock of the Company are collectively referred to as the “Majority Stockholder”), provided the Company with a $1,200,000 loan in December 2012 (the “December 2012 Loan”), on the terms disclosed (including a 3.75% interest rate and maturity date for principal and all accrued interest of March 31, 2015). Based on the Company’s year-to-date and anticipated operating expenses and management’s internally prepared cash budget, management believes that the Company’s current cash and cash equivalents will be sufficient to fund the Company’s working capital requirements at least through December 31, 2014.

As previously reported, during 2013, the Company’s Board of Directors (the “Board” or “Board of Directors”) plans to focus on, consider and (as applicable and as it deems appropriate) pursue potential investment, joint venture and acquisition opportunities (including particularly those in the health care technology, products and services and life sciences arenas) (“Opportunities”) that come to the attention of Board members or management. This may include Opportunities introduced by Dr. Pearce. The Board has held planning discussions regarding this matter during 2013 with both management and, though a Board representative, with Dr. Pearce, but no specific Opportunities are currently being pursued by the Company. The Company’s internally prepared cash budget for 2013 includes an allocation of $100,000 for limited funding of the investigation and initial pursuit of possible Opportunities, of which $12,765 has been expended through September 30, 2013. The ability of the Company to reach agreement on and/or ultimately consummate any such Opportunities is dependent upon, among other things, its ability to obtain additional funding and financing for, and to source, negotiate and execute on, such Opportunities (and to fund and provide for post-transaction personnel, support, working capital and other needs as applicable).

The only material asset of the Company (other than cash and cash equivalents and prepaid expenses) is certain real property located in Broward County, Florida (the “Real Property”), which is owned by the Company’s wholly-owned subsidiary, Parkson Property LLC (“Parkson”). The Real Property is zoned light industrial, consists of approximately one and one-third acres and is currently undeveloped. On August 12, 2013, the Company entered into a month-to-month lease of the Real Property to a third party tenant, under which lease the Company receives rental income of $1,000 per month. The Real Property is encumbered by a note (as discussed and defined further in Note 3 below, the “December 2012 Parkson Replacement Note”) and related mortgage in the aggregate principal amount as of September 30, 2013 of $821,184; the December 2012 Parkson Replacement Note bears interest at the rate of 3.75% per annum and matures (both principal and all accrued interest) on March 31, 2015. The indebtedness evidenced by the December 2012 Parkson Replacement Note substantially exceeds the value of the Real Property, and the financing and operating costs associated with the Real Property exceed the amount [the Company] receives under the month-to-month lease. The Company’s internally prepared cash budget for 2013 includes an allocation of $100,000 for the limited funding of initial commercial development plans, including anticipated architectural fees and permitting/development expenses, but not including actual construction costs, regarding the Real Property, none of which has been expended through September 30, 2013.

Operating Losses and Cash Flow Deficiencies

As noted above, the Company currently has no business operations and, other than the lease of the Real Property on a month-to-month basis, has no revenues or revenue-producing activities. The Company has ongoing expenses as well as substantial indebtedness and liabilities. During the past several years, the Company has relied entirely upon the Majority Stockholder Trust to fund working capital and expenses (and to extend maturities on indebtedness owing to the Majority Stockholder Trust and affiliates), acting in its discretion. Notwithstanding this, neither the Majority Stockholder Trust nor any other party has any commitment or obligation to provide additional funding or financing (or to extend the maturity dates on existing indebtedness), including in connection with negotiating, reaching a definitive agreement with respect to or consummating any prospective Opportunity or completing the commercial development of the Real Property. In addition, if the Majority Stockholder Trust, in its discretion, were to provide or facilitate any such funding or financing, there can be no assurance that the Majority Stockholder Trust would continue to do so (or extend maturity dates on existing indebtedness) in the future, or regarding the amount, terms, restrictions or conditions of any such funding or financing. The Company’s efforts to obtain additional financing may require significant effort, costs and expenditures, and if the Company succeeds in obtaining such financing, the financing terms could be onerous and result in substantial dilution of existing equity positions and increased interest expense.