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&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Subsequent to June 30, 2013, we sold three Notes totaling $890,000
to UBP on the same terms as previously sold Notes. The Notes will mature on November 14, 2016.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On July 29, 2013, the Company signed a sixty-five month&amp;#160;lease
for a new office space in Raleigh, North Carolina with the expected commencement date of December 1, 2013. The new office is approximately
7,300 square feet. The new monthly rental payments start with approximately $13,000 per month and escalate over the term of the
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