Subsequent to September 30, 2018, the Company received additional short-term funding of $

368,000

from an investor considered to be a related party because it individually has a beneficial ownership interest in the Company of greater than

%, bringing the total due to investors for these short-term loans to $

10,164,000

The Company and the related party investors are currently working out the terms for these funded amounts (see

NOTE 6 – PROMISSORY NOTES AND OTHER DEBT – Due to Investors).

On November 5, 2018, the Company issued a press release announcing that the 200-for-1 reverse stock split to the Company’s issued and outstanding common stock, par value $0.001 per share (the “Common Stock”), and the 16-for-1 reverse stock split to the Company’s authorized Common Stock (together the “Stock Split”), which was approved by the Company’s stockholders at the Annual Meeting of Stockholders on August 15, 2018, would become effective on Tuesday, November 6, 2018 (the “Effective Date”). As a result of the Stock Split, the Company’s issued and outstanding shares of Common Stock decreased from 504,872,558 shares to approximately 2,524,454 shares (depending on the number of fractional shares that will be rounded up to whole shares) and the number of authorized shares of Common Stock decreased from 800,000,000 shares to 50,000,000 shares. All options, warrants and convertible securities of the Company outstanding immediately prior to the Stock Split were appropriately adjusted by dividing the number of shares of Common Stock into which the options, warrants and convertible securities are exercisable or convertible by 200 and multiplying the exercise or conversion price thereof by 200 as a result of the Stock Split. All share amounts and per share amounts related to the Company’s Common Stock in these condensed consolidated financial statements have been adjusted to give retroactive effect to the Stock Split for all periods presented.