On October 3, 2012, the Investor converted 228,186 shares of Preferred Stock into 17,552,769 shares of Common Stock.

On May 9, 2012, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market notifying the Company that the minimum bid price per share for its common stock fell below $1.00 for a period of 30 consecutive business days and that therefore the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2). The Company was initially provided 180 calendar days, or until November 5, 2012, to regain compliance with the minimum bid price requirement.

On November 7, 2012, Nasdaq granted the Company’s request for an additional 180-days, or until May 6, 2013, for the Company to regain compliance with the minimum bid price requirement.