In addition, Evans continues to pursue certain claims against a former officer of Implant Sciences and Accurel..........

The Preferred Stock, however, will be subject to cancellation, without consideration and without liability to the Company, under certain conditions related to the Company's continued cooperation in the pursuit (as controlled and funded by Evans and its counsel) of certain claims against a former officer of both the Company and Accurel related to the Accurel acquisition, including the outcome of such litigation.