The Company will have a negative working capital balance after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder. The current fair saleable value of the Company’s assets do not exceed the amount of the liabilities of the Company. The Company has entered into new notes payable agreements since September 30, 2018, in the aggregate principal amount of approximately $2.1 million, of which approximately $1.65 million was disclosed in Note 7, Subsequent Events , included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. The current gross notes payable outstanding balance is approximately $4.1 million, of which approximately $1.6 million is due and payable in the quarter ending March 31, 2019.