NOTE 12 - SUBSEQUENT EVENTS

In July 2018, the Company raised $250,000 in the Follow-On Bridge Offering from one institutional investor, who had also invested $250,000 in June 2018 in the same offering.

On July 13, 2018 the Board approved the repricing of current employee, director and consultant stock options to $0.10; and an increase of the CEO’s and President’s salaries to $275,000 and $220,000, respectively, provided however, if permanent funding of at least $4,000,000 is not secured by the Company within three (3) months of the August 1, 2018 commencement date of the increased salaries, such salaries would revert to the current reduced amounts.

On July 27, 2018, the Company signed a Stock Purchase Agreement for the purchase of all of the outstanding capital stock of George B. Wittmer Associates Inc. (“GBWA”) of Jacksonville, Florida, from its sole shareholder. The purchase price of $4,500,000 will be paid in cash with $500,000 of that purchase price subject to a two-year promissory note secured by the land of GBWA. Closing is conditioned, among other items, on delivery of the purchase price to the seller, which will require the Company to raise additional financing.

On August 1, 2018, the Company appointed David Shields to the position of Chief Financial Officer. Mr. Shields’ employment agreement provides for a two-year term with renewal options, base salary of $220,000, an equity grant subject to vesting and forfeiture (exact number of shares has not yet been determined), performance-based cash and equity bonuses to be determined by the Board of Directors and other benefits commensurate with the other executive level employees of the Company, a 12-month severance for termination without cause or for “good reason”, non-compete / non-solicitation covenants, and other standard benefits and features.