NOTE 13 — SUBSEQUENT EVENTS

See Note 11 for information relating to our revised API agreement with Telcon, which provides for target annual revenue of more than US$5,000,000 and annual “profit” (i.e., sales margin) to Telcon of US$2,500,000. The Company’s obligations under the revised API supply agreement are secured by a pledge to Telcon of the Telcon convertible bond purchased by the Company in September 2020 and the proceeds thereof. In April 2023, the Company consented to Telcon’s offset as of April 24, 2023 of KRW2.9 billion, or approximately US$2.2 million, against the principal amount of the Telcon Convertible Bond and release of KRW307 million, or approximately US$236,000 in cash proceeds to Telcon in satisfaction the target shortfalls for the year ended 2022. To the extent the annual revenue and “profit” targets provided for in the API supply agreement are not met in 2023 or future years, Telcon may be entitled to payment of the shortfall or offsets against the Telcon convertible bond and other collateral securing the Company’s obligations.

After March 31, 2023, $1,000,000 principal amount of the Company’s outstanding convertible promissory notes was converted into 2,702,702 shares of common stock.