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<P id=PARA1 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>UNITED STATES</B></FONT></P>
<P id=PARA2 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>
<P id=PARA3 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>WASHINGTON, D.C. 20549</B></FONT></P>
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<P id=PARA4 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>FORM 8-K</B></FONT></P>
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<P id=PARA6 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>CURRENT REPORT</B><B> </B><B>PURSUANT</B></FONT></P>
<P id=PARA8 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>TO SECTION 13 OR 15(d) </B><B>OF THE</B></FONT></P>
<P id=PARA9 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>
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<P id=PARA254 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Date of Report: January 27, 2017 (Date of earliest event reported: January 24, 2017)</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></FONT></P>
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<P id=PARA13 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>SALON MEDIA GROUP, INC.</B></FONT></P>
<P id=PARA14 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(Exact name of registrant as specified in charter)</FONT></P>
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<P id=PARA16 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Delaware</B></FONT></P></TD>
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<P id=PARA17 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>0-26395</B></FONT></P></TD>
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<P id=PARA18 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>94-3228750</B></FONT></P></TD></TR>
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<P id=PARA19 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(State or other jurisdiction of </FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">incorporation)</FONT></P></TD>
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<P id=PARA20 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(Commission File Number)</FONT></P></TD>
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<P id=PARA21 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(IRS Employer<BR>Identification No.)</FONT></P></TD></TR>
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<P id=PARA22 style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>870 Market Street</B></FONT></P>
<P id=PARA23 style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>San Francisco, CA</B></FONT></P>
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<P id=PARA25 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>&nbsp;</B></FONT></P>
<P id=PARA26 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>9410</B><B>2</B></FONT></P>
<P id=PARA27 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(Zip Code)</FONT></P></TD></TR>
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<P id=PARA28 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Registrant&#8217;s telephone number, including area code: <B>(415) 870-7566</B></FONT></P></TD></TR>
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<P id=PARA30 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(Former name or former address, if changed since last report)</FONT></P></TD></TR></TABLE>
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<P id=PARA34 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</FONT></P>
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<P id=PARA36 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
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<P id=PARA38 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
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<P id=PARA40 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
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<P id=PARA44 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry Into a Material Definitive Agreement</B></FONT></P>
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<P id=PARA46 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Purchase Agreement</U></FONT></P>
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<P id=PARA48 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><I>Private Placement</I></FONT></P>
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<P id=PARA50 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On January 24, 2017, Salon Media Group, Inc. (the &#8220;Company&#8221;) entered into a Purchase Agreement (the &#8220;Purchase Agreement&#8221;) with purchasers identified therein (each, a &#8220;Purchaser&#8221; and together, the &#8220;Purchasers&#8221;) to issue and sell to the Purchasers in a private placement (the &#8220;Private Placement&#8221;) shares of the Company&#8217;s Series A Mandatorily Convertible Voting Preferred Stock (the &#8220;Series A Preferred Stock&#8221;). The Company has authorized the issuance and sale in the Private Placement up to 2,417,471 shares of the Series A Preferred Stock, at the purchase price of $1.24 per share. </FONT></P>
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<P id=PARA52 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company expects that the completion of the purchase and sale of the shares of the Series A Preferred Stock will occur in two stages, each a &#8220;Closing.&#8221; The initial Closing (the &#8220;Initial Closing&#8221;) was completed on January 26, 2017. In the Initial Closing, the Company sold to the Purchasers an aggregate of 805,824 shares of Series A Preferred Stock for a total purchase price of $1 million. The purchase price was paid either in cash or by delivery for cancellation of certain demand promissory notes made by the Company to certain of the Purchasers who had advanced funds to the Company in anticipation of the Initial Closing. The final Closing (the &#8220;Final Closing&#8221;) shall occur no later than February 24, 2017, or as soon thereafter as may be practicable. The Final Closing will include only investors who have previously indicated interest in participating in the Private Placement.</FONT></P>
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<P id=PARA54 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Purchasers in the Initial Closing included the Company&#8217;s Chief Executive Officer, Jordan Hoffner, and certain of his family members, the Company&#8217;s Chief Financial Officer, Elizabeth Hambrecht, and the Company&#8217;s director, William Hambrecht. </FONT></P>
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<P id=PARA56 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><I>Terms of Series A Preferred Stock</I></FONT></P>
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<P id=PARA58 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Series A Preferred Stock is a newly designated series of the Company&#8217;s authorized preferred stock, par value of $0.001 per share. At a special meeting concluded on January 24, 2017, the Company&#8217;s Board of Directors (the &#8220;Board&#8221;) approved the designation of the Series A Preferred Stock, authorizing for issuance a total of 2,865,623 shares of Series A Preferred Stock. The total authorized amount was determined in order to provide for the aggregate of 2,417,471 shares of Series A Preferred Stock that may be sold in the Private Placement and the aggregate of 448,153 shares of the Series A Preferred Stock the Company agreed to issue pursuant to the Stock Exchange Agreement or the Bridge Financing Agreement (as such terms as defined herein).</FONT></P>
<P id=PARA59 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA60 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The rights, preferences, powers and restrictions of the shares of Series A Preferred Stock are set forth in the Certificate of Designation (the &#8220;Certificate of Designation&#8221;) of the Series A Mandatorily Convertible Voting Preferred Stock, which has been filed with the Secretary of State of the State of Delaware. </FONT></P>
<P id=PARA61 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA62 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Except as may be otherwise provided in the Certificate of Designation, the shares of Series A Preferred Stock will not be entitled to receive any dividends, and shall carry a number of votes equal to the number of shares of Common Stock, par value $0.001 per share (the &#8220;Common Stock&#8221;) issuable upon conversion of the Series A Preferred Stock.&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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<P id=PARA64 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Subject to customary adjustments for stock splits, stock dividends, and similar events, each share of Series A Preferred Stock shall be convertible into 100 shares of Common Stock. The shares of Series A Preferred Stock will automatically convert into shares of Common Stock upon the effectiveness of an amendment to the Company&#8217;s current Restated Certificate of Incorporation (the &#8220;Certificate Amendment&#8221;) authorizing sufficient shares of Common Stock for issuance on the conversion of the Series A Preferred Stock.</FONT></P>
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<P id=PARA66 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><I>Certificate Amendment Expanding Authorized Share Capital</I></FONT></P>
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<P id=PARA68 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Board has approved the Certificate Amendment and on January 25, 2017, the Company obtained a shareholder consent approving the Certificate Amendment. Such consent was executed pursuant to an Irrevocable Proxy from each of William Hambrecht and John Warnock, stockholders who collectively own approximately 80% of the outstanding shares of the Common Stock. The Certificate Amendment will increase the Company&#8217;s authorized shares of Common Stock to 900,000,000. Accordingly, there exists a vote sufficient to adopt such Certificate Amendment, and the Company will prepare a preliminary information statement describing the Certificate Amendment that was authorized by stockholder consent. The Company will file with the Securities and Exchange Commission (the &#8220;Commission&#8221;) the preliminary information statement at least 10 days prior to mailing the definitive information statement to the stockholders, and the Company will file the definitive information statement as soon thereafter as may be practicable. The Company shall file the Certificate Amendment with the Secretary of State of the State of Delaware no later than the 21<SUP style="vertical-align: baseline; position: relative; bottom:.33em;">st</SUP> calendar day following delivery of the definitive information statement to the Company&#8217;s stockholders. The Certificate Amendment will become effective 20 days from the date of mailing the definitive information statement to the stockholders.</FONT></P>
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<P id=PARA70 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><I>Additional Purchase Agreement Terms</I></FONT></P>
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<P id=PARA72 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In addition to certain customary representations and warranties, indemnification rights and closing conditions, the Purchase Agreement contains (i) certain demand and piggyback registration rights, (ii) a right of Spear Point Capital Fund LP, a Purchaser, to propose for election three (3) directors to the Board at the Initial Closing, an additional director after the Final Closing, and a further director mutually acceptable to Spear Point and the Company, and (iii) the condition that all related party advances, advances constituting the &#8220;Bridge Financing&#8221; (as described below) and all shares of Series C Preferred Stock have been converted into shares of Common Stock or Series A Preferred Stock, where, upon the Initial Closing, the only outstanding capital stock of the Company will be Common Stock and Series A Preferred Stock. Such conditions were met prior to the Initial Closing.</FONT></P>
<P id=PARA73 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA74 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The issuance of the shares of Series A Preferred Stock pursuant to the Purchase Agreement is being made in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;), pursuant to Section 4(a)(2) thereof. </FONT></P>
<P id=PARA75 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA76 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><I>Exhibits</I></FONT></P>
<P id=PARA77 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA78 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Purchase Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to Exhibit 10.1.</FONT></P>
<P id=PARA79 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA80 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Certificate of Designation is filed as Exhibit 3.1 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Certificate of Designation does not purport to be complete and is qualified in its entirety by reference to Exhibit 3.1.</FONT></P>
<P id=PARA81 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA82 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Stock Exchange Agreement</U></FONT></P>
<P id=PARA84 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA85 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As a condition to the Initial Closing of the Private Placement, the Company entered into a stock exchange agreement (the &#8220;Stock Exchange Agreement&#8221;) with holders of shares of Series C Preferred Stock and related parties who have made advances to the Company, memorializing such parties&#8217; agreement to convert their Series C Preferred Stock or advances due from the Company into shares of Common Stock (such transactions, the &#8220;Exchange&#8221;).</FONT></P>
<P id=PARA86 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA87 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As reported in the Company&#8217;s Current Report on Form 8-K filed November 15, 2016, all of its then outstanding shares of Series C Preferred Stock (an aggregate of 1,075 shares) were exchanged for an aggregate of 17,200,000 shares of Common Stock. All of the shares of Series C Preferred Stock had been held by non-affiliates of the Company. </FONT></P>
<P id=PARA88 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA89 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In addition, as reported in the Company&#8217;s Current Report on Form 8-K filed November 15, 2016, outstanding related party advances at November 14, 2016, were approximately $8,341,000. The related parties who had made these advances, Mr. John Warnock, then Chairman of the Board, and Mr. William Hambrecht, a director of the Company, agreed to exchange the Company&#8217;s obligations to them for shares of Common Stock. Pursuant to the terms agreed, Mr. Warnock and Mr. Hambrecht were to receive a number of shares of Common Stock equal to the amounts of their respective advances, divided by $0.10. Accordingly, Mr. Warnock, who had advanced $5,428,000 to the Company, received 54,280,000 shares of Common Stock. Under these terms, Mr. Hambrecht, who had advanced $2,913,000, was to receive 29,130,000 shares of Common Stock. The Company reported that these issuances were made on November 14, 2016, along with the issuances to the holders of the Series C Preferred Stock. Mr. Warnock and Mr. Hambrecht entered into the Stock Exchange Agreement on these terms.</FONT></P>
<P id=PARA90 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></P>
<DIV id=PGBK250  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR250  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM250  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">3</DIV>
<HR style="HEIGHT: 2px; PAGE-BREAK-AFTER: always; COLOR: #000000; WIDTH: 100%" noShade>

<DIV id=PGHDR250  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA250.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA91 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">However, the total of all of the issuances in the Exchange when added to the shares of Common Stock outstanding on November 14, 2016, exceeded the total amount of Common Stock then authorized (the total amount authorized being 150,000,000 shares of Common Stock). </FONT></P>
<P id=PARA92 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA93 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accordingly, the Company and Mr. Hambrecht amended the Stock Exchange Agreement with respect to the shares to be issued to Mr. Hambrecht upon the conversion of his advances to the Company. Under this Amendment to Stock Exchange Agreement (the &#8220;Exchange Amendment&#8221;) Mr. Hambrecht agreed that pursuant to the conversion of his advances, he received 2,246,017 shares of Common Stock and, upon the Initial Closing of the Private Placement, would receive 268,840 shares of Series A Preferred Stock. Such shares of Series A Preferred stock issued to Mr. Hambrecht will be converted into 26,884,000 shares of Common Stock in accordance with the terms of the Series A Preferred Stock.</FONT></P>
<P id=PARA94 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA95 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Mr. Warnock and Mr. Hambrecht are affiliates of the Company and participated in the Exchange.</FONT></P>
<P id=PARA96 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA97 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The following table sets forth (i) the securities held, and advances made, by each of the holders of shares of Series C Preferred Stock and the related parties prior to, and tendered in, the Exchange and (ii) the shares of Common Stock owned by each holder of shares of Series C Preferred Stock and related party following the Exchange, as at November 14, 2016:</FONT></P>
<P id=PARA98 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<TABLE id=TBL138  style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellSpacing=0 cellPadding=0 border=0>

<TR id=TBL138.finRow.1>
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 40%">
<P id=PARA99 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Stock</B><B>holder</B></FONT></P></TD>
<TD id=TBL138.finRow.1.lead.D2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.amt.D2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; WIDTH: 1%" colSpan=2>
<P id=PARA100 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Common </B></FONT></P>
<P id=PARA101 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>(outstanding</B><B> </B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>before Exchange</B><B>)</B></FONT></P></TD>
<TD id=TBL138.finRow.1.trail.D2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.lead.D3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.amt.D3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; WIDTH: 1%" colSpan=2>
<P id=PARA102 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Series C Pref. </B></FONT></P>
<P id=PARA103 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>(as converted</B><B> to </B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Common</B></FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B></B><B>)</B></FONT></P></TD>
<TD id=TBL138.finRow.1.trail.D3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.lead.D4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.amt.D4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; WIDTH: 1%" colSpan=2>
<P id=PARA104 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Related Party </B></FONT></P>
<P id=PARA105 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Advances </B></FONT></P>
<P id=PARA106 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>(as converted</B><B> to </B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Common</B><B>)</B></FONT></P></TD>
<TD id=TBL138.finRow.1.trail.D4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.lead.D5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%"><B>&nbsp;</B></TD>
<TD id=TBL138.finRow.1.amt.D5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; WIDTH: 1%" colSpan=2>
<P id=PARA107 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Total</B><B> Common </B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Stock Outstanding </B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>at 11/14/16</B></FONT></P></TD>
<TD id=TBL138.finRow.1.trail.D5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; WIDTH: 1%"><B>&nbsp;</B></TD></TR>
<TR id=TBL138.finRow.2 style="BACKGROUND-COLOR: #cceeff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #cceeff">
<P id=PARA108 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">John Warnock</FONT></P></TD>
<TD id=TBL138.finRow.2.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">34,931,240 </TD>
<TD id=TBL138.finRow.2.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.2.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">-- </TD>
<TD id=TBL138.finRow.2.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.2.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">54,280,000 </TD>
<TD id=TBL138.finRow.2.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.2.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.2.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">89,211,240 </TD>
<TD id=TBL138.finRow.2.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD></TR>
<TR id=TBL138.finRow.3 style="BACKGROUND-COLOR: #ffffff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #ffffff">
<P id=PARA113 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">William Hambrecht</FONT></P></TD>
<TD id=TBL138.finRow.3.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">27,492,732 </TD>
<TD id=TBL138.finRow.3.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.3.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">-- </TD>
<TD id=TBL138.finRow.3.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.3.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">2,246,017</TD>
<TD id=TBL138.finRow.3.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.3.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.3.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">29,738,749 </TD>
<TD id=TBL138.finRow.3.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD></TR>
<TR id=TBL138.finRow.4 style="BACKGROUND-COLOR: #cceeff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #cceeff">
<P id=PARA118 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Shea Ventures</FONT></P></TD>
<TD id=TBL138.finRow.4.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">3,632,962 </TD>
<TD id=TBL138.finRow.4.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.4.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">13,200,000 </TD>
<TD id=TBL138.finRow.4.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.4.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">-- </TD>
<TD id=TBL138.finRow.4.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.4.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.4.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">16,832,962 </TD>
<TD id=TBL138.finRow.4.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD></TR>
<TR id=TBL138.finRow.5 style="BACKGROUND-COLOR: #ffffff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #ffffff">
<P id=PARA123 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other Series C Preferred Holders</FONT></P></TD>
<TD id=TBL138.finRow.5.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">--</TD>
<TD id=TBL138.finRow.5.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.5.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">4,000,000 </TD>
<TD id=TBL138.finRow.5.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.5.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">--</TD>
<TD id=TBL138.finRow.5.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.5.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.5.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">4,000,000 </TD>
<TD id=TBL138.finRow.5.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD></TR>
<TR id=TBL138.finRow.6 style="BACKGROUND-COLOR: #cceeff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #cceeff">
<P id=PARA128 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other Common Stockholders</FONT></P></TD>
<TD id=TBL138.finRow.6.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">10,217,049 </TD>
<TD id=TBL138.finRow.6.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.6.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">-- </TD>
<TD id=TBL138.finRow.6.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.6.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">-- </TD>
<TD id=TBL138.finRow.6.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.6.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; WIDTH: 1%; BACKGROUND-COLOR: #cceeff">&nbsp;</TD>
<TD id=TBL138.finRow.6.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #cceeff">10,217,049 </TD>
<TD id=TBL138.finRow.6.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #cceeff" noWrap>&nbsp;</TD></TR>
<TR id=TBL138.finRow.7 style="BACKGROUND-COLOR: #ffffff">
<TD style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; WIDTH: 40%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.lead.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.symb.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.amt.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">76,273,983 </TD>
<TD id=TBL138.finRow.7.trail.2 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.7.lead.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.symb.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.amt.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">17,200,000 </TD>
<TD id=TBL138.finRow.7.trail.3 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.7.lead.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.symb.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.amt.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">56,526,017</TD>
<TD id=TBL138.finRow.7.trail.4 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD>
<TD id=TBL138.finRow.7.lead.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.symb.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; WIDTH: 1%; BACKGROUND-COLOR: #ffffff">&nbsp;</TD>
<TD id=TBL138.finRow.7.amt.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; WIDTH: 12%; BACKGROUND-COLOR: #ffffff">150,000,000</TD>
<TD id=TBL138.finRow.7.trail.5 style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; WIDTH: 1%; BACKGROUND-COLOR: #ffffff" noWrap>&nbsp;</TD></TR></TABLE>
<P id=PARA139 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA140 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Note that the above table does not include the Series A Preferred Stock received by Mr. Hambrecht, which was issued January 25, 2017.</FONT></P>
<P id=PARA141 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA142 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company notes that its Current Report on Form 8-K filed November 15, 2016 incorrectly reported issuances of Common Stock to Mr. Hambrecht in the total amount of 29,130,000 as originally contemplated in the Stock Exchange Agreement. This Current Report on Form 8-K supersedes the information described in such earlier report. </FONT></P>
<P id=PARA143 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA144 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The issuance of the shares of Common Stock and the shares of Series A Preferred Stock in the Exchange is exempt from registration under the Securities Act pursuant to Section&nbsp;4(a)(2) thereof.</FONT></P>
<P id=PARA145 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA146 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Stock Exchange Agreement is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference. The Exchange Amendment is filed as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Stock Exchange Agreement and the Exchange Amendment does not purport to be complete and is qualified in its entirety by reference to Exhibits 10.2 and 10.3, respectively.</FONT></P>
<P id=PARA147 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></P>
<DIV id=PGBK251  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR251  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM251  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">4</DIV>
<HR style="HEIGHT: 2px; PAGE-BREAK-AFTER: always; COLOR: #000000; WIDTH: 100%" noShade>

<DIV id=PGHDR251  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA251.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA148 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Bridge Financing Agreement</U></FONT></P>
<P id=PARA149 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA150 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As reported on the Company&#8217;s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, from July 1, 2016 through August 12, 2016, the Company received $200,000 in a &#8220;bridge financing&#8221; (the &#8220;Bridge Financing&#8221;). On its balance sheet included in its Quarterly Report in Form 10-Q for the quarter ended September 30, 2016, the Company refers to the Bridge Financing as &#8220;convertible promissory notes.&#8221; The Company&#8217;s Chief Financial Officer, Elizabeth Hambrecht, provided $100,000 of the Bridge Financing.</FONT></P>
<P id=PARA151 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA152 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company entered into certain securities purchase agreements (the &#8220;Bridge Financing Agreements&#8221;) with the parties who provided the financing, memorializing such parties&#8217; agreement to convert their obligations due from the Company into shares of the Company&#8217;s Common Stock. Subsequently, the parties who provided the Bridge Financing agreed to accept shares of Series A Preferred Stock in full satisfaction of the Company&#8217;s obligations to such parties and have entered into an amendment to such effect (the &#8220;Bridge Finance Amendment&#8221;). In accordance with these agreements, the Company, prior to the Initial Closing and as a condition thereof, issued an aggregate of 179,313 shares of Series A Preferred Stock to the parties who had provided the Bridge Financing.</FONT></P>
<P id=PARA153 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA154 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The issuance of the shares of Series A Preferred Stock under the Bridge Financing Agreement as amended by the Bridge Finance Amendment is exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof.</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA156 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></FONT>&nbsp;</P>
<P id=PARA257 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Bridge Financing Agreements are filed as Exhibits 10.4 and 10.5 to this Current Report on Form 8-K and incorporated herein by reference. The Bridge Finance Amendments are filed as Exhibits 10.6 and 10.7 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Bridge Financing Agreements and the Bridge Finance Amendments does not purport to be complete and is qualified in its entirety by reference to Exhibits 10.4 and 10.5, and Exhibits 10.6 and 10.7, respectively.</FONT></P>
<P id=PARA157 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA158 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Item 3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity Securities</B></FONT></P>
<P id=PARA159 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA160 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Purchase Agreement -- Private Placement</U></FONT></P>
<P id=PARA161 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA162 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As described above in Item 1.01, in the Initial Closing under the Purchase Agreement, the Company sold to the Purchasers an aggregate of 805,824 shares of Series A Preferred Stock for a total purchase price of $1 million. Such shares of Series A Preferred Stock shall be automatically converted into 80,582,400 shares of Common Stock upon the effectiveness of the Certificate Amendment. </FONT></P>
<P id=PARA163 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA164 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The information regarding the Private Placement set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The Private Placement of the shares of Series A Preferred Stock, pursuant to the Purchase Agreement, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.</FONT></P>
<P id=PARA165 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA166 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Stock Exchange Agreement</U></FONT></P>
<P id=PARA167 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA168 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As described above in Item 1.01, pursuant to the Stock Exchange Agreement and the Exchange Amendment, all advances from related parties equal to $8,341,000 (as of November 14, 2016) and all outstanding Preferred Stock (consisting of 1,075 shares of Series C Preferred Stock as of November 14, 2016) were converted into Common Stock and Series A Preferred Stock. The advances were converted into 56,526,017 shares of Common Stock and 268,840 shares of Series A Preferred Stock, and the outstanding 1,075 shares of Series C Preferred Stock converted into 17,200,000 shares of Common Stock. Following the conversion of the related party advances and the Series C Preferred Stock, the total number of outstanding shares of Common Stock increased from 76,273,983 to 150,000,000 on November 14, 2016 as shown in the table above. </FONT></P>
<P id=PARA169 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA170 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The information regarding the Exchange set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The issuance of the shares of Common Stock and the shares of Series A Preferred Stock, pursuant to the Stock Exchange Agreement, as amended by the Exchange Amendment, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.</FONT></P>
<P id=PARA171 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></P>
<DIV id=PGBK252  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR252  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM252  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">5</DIV>
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<DIV id=PGHDR252  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA252.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA172 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>Bridge Financing</U></FONT></P>
<P id=PARA173 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA174 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As described above in Item 1.01, pursuant to the Bridge Financing Agreement and the Bridge Finance Amendment, all of the $200,000 in Bridge Financing was converted into 179,313 shares of Series A Preferred Stock. </FONT></P>
<P id=PARA175 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA176 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The information regarding the Bridge Financing set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The issuance of the shares of Series A Preferred Stock, pursuant to the Bridge Financing Agreement, as amended by the Bridge Finance Amendment, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.</FONT></P>
<P id=PARA177 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>&nbsp;</B></FONT></P>
<P id=PARA178 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Item 5.02</B><B> </B><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Offi</B><B>cers</B></FONT></P>
<P id=PARA179 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>&nbsp;</B></FONT></P>
<P id=PARA180 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Board, having obtained sufficient vote by the directors and having accepted the resignation of four (4) previously serving directors, elected three (3) new directors to the Board: (i) Richard MacWilliams, (ii) Rodney Bienvenu, and (iii) Trevor Colhoun. Previously serving directors, Deepak Desai, George Hirsch, James Rosenfield, and John Warnock resigned from the Board upon the election of Mr. MacWilliams, Mr. Bienvenu, and Mr. Colhoun at the Initial Closing. The Board currently consists of (i) Jordan Hoffner, (ii) William Hambrecht, (iii) Richard MacWilliams, (iv) Rodney Bienvenu, and (v) Trevor Colhoun, each of whom will serve on the Board until the next annual meeting of stockholders or until his respective successor is elected and qualified.</FONT></P>
<P id=PARA181 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA182 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">None of the resigning directors had any disagreements with the Company, on any matter relating to the Company&#8217;s operations, policies or practices.</FONT></P>
<P id=PARA183 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA184 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Item 5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Amendments to Articles of Incorporation or Bylaws</B><B>; Change in Fiscal Year</B></FONT></P>
<P id=PARA185 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA186 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company has filed with the Secretary of State of the State of Delaware the Certificate of Designation, which sets forth the rights, preferences, powers and restrictions of the shares of Series A Preferred Stock which were issued, or will be issued, to the Purchasers at each of the Closings, and to the parties under the Stock Exchange Agreement or the Bridge Financing Agreement, as described in Items 1.01 and 3.02 of this Current Report on Form 8-K.</FONT></P>
<P id=PARA187 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA188 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As described in Item 1.01 of this Current Report on Form 8-K, the Certificate of Designation provides that the shares Series A Preferred Stock will automatically convert into share of Common Stock upon the effectiveness of the Certificate Amendment. The information regarding the Certificate of Designation forth in Item 1.01 of this Current Report is incorporated by reference into this Item 5.03. The foregoing description of the Certificate of Designation in this Item 5.03 is qualified in its entirety by reference to the full text of the Certificate of Designation, which is attached as Exhibit 3.1, to this Current Report on Form 8-K and incorporated in this Item 5.03 by reference.</FONT>&nbsp; </P>
<P></P>
<P id=PARA258 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As described in Item 1.01 above, the Certificate Amendment, which increases the authorized share capitalization of the Company, has been approved by the Board and the requisite stockholder vote. Accordingly, the Company will provide notice to stockholders regarding the Certificate Amendment and its effectiveness in accordance with applicable requirements and will file a further report when the Certificate Amendment has become effective. The form of the Certificate Amendment is attached hereto as Exhibit 3.2 and incorporated in this Item 5.03 by reference. </FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</P>
<DIV id=PGBK193  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR193  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM193  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">6</DIV>
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<DIV id=PGHDR193  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA193.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA194 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits </B></FONT></P>
<P id=PARA195 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>&nbsp;</B></FONT></P>
<TABLE id=TBL210  style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; MARGIN-LEFT: 18pt; WIDTH: 90%; MARGIN-RIGHT: 10%; TEXT-INDENT: 0px" cellSpacing=0 cellPadding=0 border=0>

<TR>
<TD style="VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 13%">
<P id=PARA196 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Exhibit</B></FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 86%">
<P id=PARA197 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Description</B></FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA198 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.1</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA199 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certificate of Designation of Series A Mandatorily Convertible Voting Preferred Stock, dated January 24, 2017</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">3.2</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Certificate of Amendment of Restated Certificate of Incorporation of Salon Media Group, Inc., dated January 25, 2017</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA200 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.1</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA201 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Purchase Agreement, dated as of January 24, 2017</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA202 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.2</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA203 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stock Exchange Agreement, dated as of November 14, 2016</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA204 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.3</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA205 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Amendment to Stock Exchange Agreement, dated January 19, 2017.</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA206 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.4</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA207 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bridge Financing Agreement, dated as of August 5, 2016</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">10.5</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Bridge Financing Agreement, dated as of August 5, 2016</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA208 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.6</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA209 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bridge Finance Amendment, dated January 25, 2017.</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">10.7</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Bridge Finance Amendment, dated January 25, 2017.</TD></TR></TABLE>
<P id=PARA211 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></P>
<DIV id=PGBK216  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR216  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM216  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">7</DIV>
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<DIV id=PGHDR216  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA216.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA217 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>SIGNATURES</B></FONT></P>
<P id=PARA218 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA219 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</FONT></P>
<P id=PARA220 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<TABLE id=TBL253  style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; WIDTH: 100%; TEXT-INDENT: 0px" cellSpacing=0 cellPadding=0 border=0>

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<TD style="WIDTH: 50%" vAlign=top width="50%">
<P id=PARA253.1 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 4%" vAlign=top width="38%" colSpan=2>
<P id=PARA253.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><B>SALON MEDIA GROUP, INC.</B></FONT></P></TD>
<TD style="WIDTH: 12%" vAlign=top width="12%">
<P id=PARA253.3 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD></TR>
<TR>
<TD style="WIDTH: 50%" vAlign=top width="50%">
<P id=PARA253.8 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 4%" vAlign=top width="3%">
<P id=PARA253.9 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 34%" vAlign=bottom width="35%" noWrap align=left>
<P id=PARA253.10 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 12%" vAlign=top width="12%">
<P id=PARA253.11 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD></TR>
<TR>
<TD style="TEXT-ALIGN: left; WIDTH: 50%" vAlign=top width="50%" align=left>
<P id=PARA253.12 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="TEXT-ALIGN: left; WIDTH: 4%" vAlign=top width="3%">
<P id=PARA253.13 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By: </FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid; WIDTH: 34%" vAlign=top width="35%" noWrap align=left>
<P id=PARA253.14 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&nbsp;Jordan Hoffner</FONT></P></TD>
<TD style="WIDTH: 12%" vAlign=top width="12%">
<P id=PARA253.15 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD></TR>
<TR>
<TD style="WIDTH: 50%" vAlign=top width="50%">
<P id=PARA253.16 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 4%" vAlign=top width="3%">
<P id=PARA253.17 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>Name:</P></TD>
<TD style="WIDTH: 34%" vAlign=top width="35%">
<P id=PARA253.18 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>Jordan Hoffner</P></TD>
<TD style="WIDTH: 12%" vAlign=top width="12%">
<P id=PARA253.19 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD></TR>
<TR>
<TD style="WIDTH: 50%" vAlign=top width="50%">
<P id=PARA253.20 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD>
<TD style="WIDTH: 4%" vAlign=top width="3%">
<P id=PARA253.21 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>Title:</P></TD>
<TD style="WIDTH: 34%" vAlign=top width="35%">
<P id=PARA253.22 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>Chief Executive Officer</P></TD>
<TD style="WIDTH: 12%" vAlign=top width="12%">
<P id=PARA253.23 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P></TD></TR></TABLE>
<P id=PARA221 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 53.8%"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B></B></FONT>&nbsp;</P>
<P id=PARA222 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 53.8%"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></FONT>&nbsp;</P>
<P id=PARA228 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Dated: January 27, 2017</FONT></P>
<P id=PARA229.1 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<DIV id=PGBK229  style="MARGIN-LEFT: 0pt; WIDTH: 100%; MARGIN-RIGHT: 0pt">
<DIV id=PGFTR229  style="TEXT-ALIGN: center; WIDTH: 100%">&nbsp;</DIV>
<DIV id=PGNUM229  style="FONT-SIZE: 10pt; TEXT-ALIGN: center; WIDTH: 100%">8</DIV>
<HR style="HEIGHT: 2px; PAGE-BREAK-AFTER: always; COLOR: #000000; WIDTH: 100%" noShade>

<DIV id=PGHDR229  style="TEXT-ALIGN: left; WIDTH: 100%">&nbsp;</DIV></DIV>
<P id=PARA229.2 style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></P>
<P id=PARA230 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>EXHIBIT INDEX</B></FONT></P>
<P id=PARA231 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<TABLE id=TBL246  style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; MARGIN-LEFT: 18pt; WIDTH: 90%; MARGIN-RIGHT: 10%; TEXT-INDENT: 0px" cellSpacing=0 cellPadding=0 border=0>

<TR>
<TD style="VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 13%">
<P id=PARA232 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Exhibit</B></FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; WIDTH: 86%">
<P id=PARA233 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Description</B></FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA234 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.1</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA235 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certificate of Designation of Series A Mandatorily Convertible Voting Preferred Stock, dated January 24, 2017</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">3.2</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Certificate of Amendment of Restated Certificate of Incorporation of Salon Media Group, Inc., dated January 25, 2017</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA236 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.1</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA237 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Purchase Agreement, dated as of January 24, 2017</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA238 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.2</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA239 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stock Exchange Agreement, dated as of November 14, 2016</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA240 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.3</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA241 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Amendment to Stock Exchange Agreement, dated January 19, 2017.</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA242 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.4</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA243 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bridge Financing Agreement, dated as of August 5, 2016</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">10.5</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Bridge Financing Agreement, dated as of August 5, 2016</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp; </TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp; </TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">
<P id=PARA244 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10.6</FONT></P></TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">
<P id=PARA245 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bridge Finance Amendment, dated January 25, 2017.</FONT></P></TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; WIDTH: 13%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">&nbsp;</TD></TR>
<TR>
<TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: center; WIDTH: 13%">10.7</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 1%">&nbsp;</TD>
<TD style="VERTICAL-ALIGN: top; WIDTH: 86%">Bridge Finance Amendment, dated January 25, 2017.</TD></TR></TABLE>
<P id=PARA247 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>&nbsp;</B></FONT></P>
<P style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><STRONG></STRONG>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><STRONG>9</STRONG></P></BODY></HTML>
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{"company-data": {"conformed-name": "SALON MEDIA GROUP INC", "cik": "0001084332", "assigned-sic": "7310", "irs-number": "943228750", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26395", "film-number": "17552933"}, "business-address": {"street1": "870 MARKET STREET", "street2": "SUITE 528", "city": "SAN FRANCISCO", "state": "CA", "zip": "94102", "phone": "4158828720"}, "mail-address": {"street1": "870 MARKET STREET", "street2": "SUITE 528", "city": "SAN FRANCISCO", "state": "CA", "zip": "94102"}, "former-company": [{"former-conformed-name": "SALON COM", "date-changed": "20000322"}, {"former-conformed-name": "SALON INTERNET INC", "date-changed": "19990415"}]}
slnm20170126_8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: January 27, 2017 (Date of earliest event reported: January 24, 2017)
SALON MEDIA GROUP, INC.
(Exact name of registrant as specified in charter)
Delaware
0-26395
94-3228750
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
870 Market Street
San Francisco, CA
(Address of principal executive offices)
9410
2
(Zip Code)
Registrant's telephone number, including area code:
(415) 870-7566
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01     Entry Into a Material Definitive Agreement
Purchase Agreement
Private Placement
On January 24, 2017, Salon Media Group, Inc. (the "Company") entered into a Purchase Agreement (the "Purchase Agreement") with purchasers identified therein (each, a "Purchaser" and together, the "Purchasers") to issue and sell to the Purchasers in a private placement (the "Private Placement") shares of the Company's Series A Mandatorily Convertible Voting Preferred Stock (the "Series A Preferred Stock"). The Company has authorized the issuance and sale in the Private Placement up to 2,417,471 shares of the Series A Preferred Stock, at the purchase price of $1.24 per share.
The Company expects that the completion of the purchase and sale of the shares of the Series A Preferred Stock will occur in two stages, each a "Closing." The initial Closing (the "Initial Closing") was completed on January 26, 2017. In the Initial Closing, the Company sold to the Purchasers an aggregate of 805,824 shares of Series A Preferred Stock for a total purchase price of $1 million. The purchase price was paid either in cash or by delivery for cancellation of certain demand promissory notes made by the Company to certain of the Purchasers who had advanced funds to the Company in anticipation of the Initial Closing. The final Closing (the "Final Closing") shall occur no later than February 24, 2017, or as soon thereafter as may be practicable. The Final Closing will include only investors who have previously indicated interest in participating in the Private Placement.
The Purchasers in the Initial Closing included the Company's Chief Executive Officer, Jordan Hoffner, and certain of his family members, the Company's Chief Financial Officer, Elizabeth Hambrecht, and the Company's director, William Hambrecht.
Terms of Series A Preferred Stock
The Series A Preferred Stock is a newly designated series of the Company's authorized preferred stock, par value of $0.001 per share. At a special meeting concluded on January 24, 2017, the Company's Board of Directors (the "Board") approved the designation of the Series A Preferred Stock, authorizing for issuance a total of 2,865,623 shares of Series A Preferred Stock. The total authorized amount was determined in order to provide for the aggregate of 2,417,471 shares of Series A Preferred Stock that may be sold in the Private Placement and the aggregate of 448,153 shares of the Series A Preferred Stock the Company agreed to issue pursuant to the Stock Exchange Agreement or the Bridge Financing Agreement (as such terms as defined herein).
The rights, preferences, powers and restrictions of the shares of Series A Preferred Stock are set forth in the Certificate of Designation (the "Certificate of Designation") of the Series A Mandatorily Convertible Voting Preferred Stock, which has been filed with the Secretary of State of the State of Delaware.
Except as may be otherwise provided in the Certificate of Designation, the shares of Series A Preferred Stock will not be entitled to receive any dividends, and shall carry a number of votes equal to the number of shares of Common Stock, par value $0.001 per share (the "Common Stock") issuable upon conversion of the Series A Preferred Stock.
Subject to customary adjustments for stock splits, stock dividends, and similar events, each share of Series A Preferred Stock shall be convertible into 100 shares of Common Stock. The shares of Series A Preferred Stock will automatically convert into shares of Common Stock upon the effectiveness of an amendment to the Company's current Restated Certificate of Incorporation (the "Certificate Amendment") authorizing sufficient shares of Common Stock for issuance on the conversion of the Series A Preferred Stock.
2
Certificate Amendment Expanding Authorized Share Capital
The Board has approved the Certificate Amendment and on January 25, 2017, the Company obtained a shareholder consent approving the Certificate Amendment. Such consent was executed pursuant to an Irrevocable Proxy from each of William Hambrecht and John Warnock, stockholders who collectively own approximately 80% of the outstanding shares of the Common Stock. The Certificate Amendment will increase the Company's authorized shares of Common Stock to 900,000,000. Accordingly, there exists a vote sufficient to adopt such Certificate Amendment, and the Company will prepare a preliminary information statement describing the Certificate Amendment that was authorized by stockholder consent. The Company will file with the Securities and Exchange Commission (the "Commission") the preliminary information statement at least 10 days prior to mailing the definitive information statement to the stockholders, and the Company will file the definitive information statement as soon thereafter as may be practicable. The Company shall file the Certificate Amendment with the Secretary of State of the State of Delaware no later than the 21
st
calendar day following delivery of the definitive information statement to the Company's stockholders. The Certificate Amendment will become effective 20 days from the date of mailing the definitive information statement to the stockholders.
Additional Purchase Agreement Terms
In addition to certain customary representations and warranties, indemnification rights and closing conditions, the Purchase Agreement contains (i) certain demand and piggyback registration rights, (ii) a right of Spear Point Capital Fund LP, a Purchaser, to propose for election three (3) directors to the Board at the Initial Closing, an additional director after the Final Closing, and a further director mutually acceptable to Spear Point and the Company, and (iii) the condition that all related party advances, advances constituting the "Bridge Financing" (as described below) and all shares of Series C Preferred Stock have been converted into shares of Common Stock or Series A Preferred Stock, where, upon the Initial Closing, the only outstanding capital stock of the Company will be Common Stock and Series A Preferred Stock. Such conditions were met prior to the Initial Closing.
The issuance of the shares of Series A Preferred Stock pursuant to the Purchase Agreement is being made in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(a)(2) thereof.
Exhibits
The Purchase Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to Exhibit 10.1.
The Certificate of Designation is filed as Exhibit 3.1 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Certificate of Designation does not purport to be complete and is qualified in its entirety by reference to Exhibit 3.1.
Stock Exchange Agreement
As a condition to the Initial Closing of the Private Placement, the Company entered into a stock exchange agreement (the "Stock Exchange Agreement") with holders of shares of Series C Preferred Stock and related parties who have made advances to the Company, memorializing such parties' agreement to convert their Series C Preferred Stock or advances due from the Company into shares of Common Stock (such transactions, the "Exchange").
As reported in the Company's Current Report on Form 8-K filed November 15, 2016, all of its then outstanding shares of Series C Preferred Stock (an aggregate of 1,075 shares) were exchanged for an aggregate of 17,200,000 shares of Common Stock. All of the shares of Series C Preferred Stock had been held by non-affiliates of the Company.
In addition, as reported in the Company's Current Report on Form 8-K filed November 15, 2016, outstanding related party advances at November 14, 2016, were approximately $8,341,000. The related parties who had made these advances, Mr. John Warnock, then Chairman of the Board, and Mr. William Hambrecht, a director of the Company, agreed to exchange the Company's obligations to them for shares of Common Stock. Pursuant to the terms agreed, Mr. Warnock and Mr. Hambrecht were to receive a number of shares of Common Stock equal to the amounts of their respective advances, divided by $0.10. Accordingly, Mr. Warnock, who had advanced $5,428,000 to the Company, received 54,280,000 shares of Common Stock. Under these terms, Mr. Hambrecht, who had advanced $2,913,000, was to receive 29,130,000 shares of Common Stock. The Company reported that these issuances were made on November 14, 2016, along with the issuances to the holders of the Series C Preferred Stock. Mr. Warnock and Mr. Hambrecht entered into the Stock Exchange Agreement on these terms.
3
However, the total of all of the issuances in the Exchange when added to the shares of Common Stock outstanding on November 14, 2016, exceeded the total amount of Common Stock then authorized (the total amount authorized being 150,000,000 shares of Common Stock).
Accordingly, the Company and Mr. Hambrecht amended the Stock Exchange Agreement with respect to the shares to be issued to Mr. Hambrecht upon the conversion of his advances to the Company. Under this Amendment to Stock Exchange Agreement (the "Exchange Amendment") Mr. Hambrecht agreed that pursuant to the conversion of his advances, he received 2,246,017 shares of Common Stock and, upon the Initial Closing of the Private Placement, would receive 268,840 shares of Series A Preferred Stock. Such shares of Series A Preferred stock issued to Mr. Hambrecht will be converted into 26,884,000 shares of Common Stock in accordance with the terms of the Series A Preferred Stock.
Mr. Warnock and Mr. Hambrecht are affiliates of the Company and participated in the Exchange.
The following table sets forth (i) the securities held, and advances made, by each of the holders of shares of Series C Preferred Stock and the related parties prior to, and tendered in, the Exchange and (ii) the shares of Common Stock owned by each holder of shares of Series C Preferred Stock and related party following the Exchange, as at November 14, 2016:
Stock
holder
Common
(outstanding
before Exchange
)
Series C Pref.
(as converted
to
Common
)
Related Party
Advances
(as converted
to
Common
)
Total
Common
Stock Outstanding
at 11/14/16
John Warnock
34,931,240
--
54,280,000
89,211,240
William Hambrecht
27,492,732
--
2,246,017
29,738,749
Shea Ventures
3,632,962
13,200,000
--
16,832,962
Other Series C Preferred Holders
--
4,000,000
--
4,000,000
Other Common Stockholders
10,217,049
--
--
10,217,049
76,273,983
17,200,000
56,526,017
150,000,000
Note that the above table does not include the Series A Preferred Stock received by Mr. Hambrecht, which was issued January 25, 2017.
The Company notes that its Current Report on Form 8-K filed November 15, 2016 incorrectly reported issuances of Common Stock to Mr. Hambrecht in the total amount of 29,130,000 as originally contemplated in the Stock Exchange Agreement. This Current Report on Form 8-K supersedes the information described in such earlier report.
The issuance of the shares of Common Stock and the shares of Series A Preferred Stock in the Exchange is exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof.
The Stock Exchange Agreement is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference. The Exchange Amendment is filed as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Stock Exchange Agreement and the Exchange Amendment does not purport to be complete and is qualified in its entirety by reference to Exhibits 10.2 and 10.3, respectively.
4
Bridge Financing Agreement
As reported on the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, from July 1, 2016 through August 12, 2016, the Company received $200,000 in a "bridge financing" (the "Bridge Financing"). On its balance sheet included in its Quarterly Report in Form 10-Q for the quarter ended September 30, 2016, the Company refers to the Bridge Financing as "convertible promissory notes." The Company's Chief Financial Officer, Elizabeth Hambrecht, provided $100,000 of the Bridge Financing.
The Company entered into certain securities purchase agreements (the "Bridge Financing Agreements") with the parties who provided the financing, memorializing such parties' agreement to convert their obligations due from the Company into shares of the Company's Common Stock. Subsequently, the parties who provided the Bridge Financing agreed to accept shares of Series A Preferred Stock in full satisfaction of the Company's obligations to such parties and have entered into an amendment to such effect (the "Bridge Finance Amendment"). In accordance with these agreements, the Company, prior to the Initial Closing and as a condition thereof, issued an aggregate of 179,313 shares of Series A Preferred Stock to the parties who had provided the Bridge Financing.
The issuance of the shares of Series A Preferred Stock under the Bridge Financing Agreement as amended by the Bridge Finance Amendment is exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof.
The Bridge Financing Agreements are filed as Exhibits 10.4 and 10.5 to this Current Report on Form 8-K and incorporated herein by reference. The Bridge Finance Amendments are filed as Exhibits 10.6 and 10.7 to this Current Report on Form 8-K and incorporated herein by reference. The above description of the material terms of the Bridge Financing Agreements and the Bridge Finance Amendments does not purport to be complete and is qualified in its entirety by reference to Exhibits 10.4 and 10.5, and Exhibits 10.6 and 10.7, respectively.
Item 3.02     Unregistered Sales of Equity Securities
Purchase Agreement -- Private Placement
As described above in Item 1.01, in the Initial Closing under the Purchase Agreement, the Company sold to the Purchasers an aggregate of 805,824 shares of Series A Preferred Stock for a total purchase price of $1 million. Such shares of Series A Preferred Stock shall be automatically converted into 80,582,400 shares of Common Stock upon the effectiveness of the Certificate Amendment.
The information regarding the Private Placement set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The Private Placement of the shares of Series A Preferred Stock, pursuant to the Purchase Agreement, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.
Stock Exchange Agreement
As described above in Item 1.01, pursuant to the Stock Exchange Agreement and the Exchange Amendment, all advances from related parties equal to $8,341,000 (as of November 14, 2016) and all outstanding Preferred Stock (consisting of 1,075 shares of Series C Preferred Stock as of November 14, 2016) were converted into Common Stock and Series A Preferred Stock. The advances were converted into 56,526,017 shares of Common Stock and 268,840 shares of Series A Preferred Stock, and the outstanding 1,075 shares of Series C Preferred Stock converted into 17,200,000 shares of Common Stock. Following the conversion of the related party advances and the Series C Preferred Stock, the total number of outstanding shares of Common Stock increased from 76,273,983 to 150,000,000 on November 14, 2016 as shown in the table above.
The information regarding the Exchange set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The issuance of the shares of Common Stock and the shares of Series A Preferred Stock, pursuant to the Stock Exchange Agreement, as amended by the Exchange Amendment, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.
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Bridge Financing
As described above in Item 1.01, pursuant to the Bridge Financing Agreement and the Bridge Finance Amendment, all of the $200,000 in Bridge Financing was converted into 179,313 shares of Series A Preferred Stock.
The information regarding the Bridge Financing set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 3.02. The issuance of the shares of Series A Preferred Stock, pursuant to the Bridge Financing Agreement, as amended by the Bridge Finance Amendment, was undertaken in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof.
Item 5.02
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Offi
cers
The Board, having obtained sufficient vote by the directors and having accepted the resignation of four (4) previously serving directors, elected three (3) new directors to the Board: (i) Richard MacWilliams, (ii) Rodney Bienvenu, and (iii) Trevor Colhoun. Previously serving directors, Deepak Desai, George Hirsch, James Rosenfield, and John Warnock resigned from the Board upon the election of Mr. MacWilliams, Mr. Bienvenu, and Mr. Colhoun at the Initial Closing. The Board currently consists of (i) Jordan Hoffner, (ii) William Hambrecht, (iii) Richard MacWilliams, (iv) Rodney Bienvenu, and (v) Trevor Colhoun, each of whom will serve on the Board until the next annual meeting of stockholders or until his respective successor is elected and qualified.
None of the resigning directors had any disagreements with the Company, on any matter relating to the Company's operations, policies or practices.
Item 5.03
Amendments to Articles of Incorporation or Bylaws
; Change in Fiscal Year
The Company has filed with the Secretary of State of the State of Delaware the Certificate of Designation, which sets forth the rights, preferences, powers and restrictions of the shares of Series A Preferred Stock which were issued, or will be issued, to the Purchasers at each of the Closings, and to the parties under the Stock Exchange Agreement or the Bridge Financing Agreement, as described in Items 1.01 and 3.02 of this Current Report on Form 8-K.
As described in Item 1.01 of this Current Report on Form 8-K, the Certificate of Designation provides that the shares Series A Preferred Stock will automatically convert into share of Common Stock upon the effectiveness of the Certificate Amendment. The information regarding the Certificate of Designation forth in Item 1.01 of this Current Report is incorporated by reference into this Item 5.03. The foregoing description of the Certificate of Designation in this Item 5.03 is qualified in its entirety by reference to the full text of the Certificate of Designation, which is attached as Exhibit 3.1, to this Current Report on Form 8-K and incorporated in this Item 5.03 by reference.
As described in Item 1.01 above, the Certificate Amendment, which increases the authorized share capitalization of the Company, has been approved by the Board and the requisite stockholder vote. Accordingly, the Company will provide notice to stockholders regarding the Certificate Amendment and its effectiveness in accordance with applicable requirements and will file a further report when the Certificate Amendment has become effective. The form of the Certificate Amendment is attached hereto as Exhibit 3.2 and incorporated in this Item 5.03 by reference.
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Item 9.01.     Financial Statements and Exhibits
Exhibit
Description
3.1
Certificate of Designation of Series A Mandatorily Convertible Voting Preferred Stock, dated January 24, 2017
3.2
Certificate of Amendment of Restated Certificate of Incorporation of Salon Media Group, Inc., dated January 25, 2017
10.1
Purchase Agreement, dated as of January 24, 2017
10.2
Stock Exchange Agreement, dated as of November 14, 2016
10.3
Amendment to Stock Exchange Agreement, dated January 19, 2017.
10.4
Bridge Financing Agreement, dated as of August 5, 2016
10.5
Bridge Financing Agreement, dated as of August 5, 2016
10.6
Bridge Finance Amendment, dated January 25, 2017.
10.7
Bridge Finance Amendment, dated January 25, 2017.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SALON MEDIA GROUP, INC.
By:
/s/ Jordan Hoffner
Name:
Jordan Hoffner
Title:
Chief Executive Officer
Dated: January 27, 2017
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EXHIBIT INDEX
Exhibit
Description
3.1
Certificate of Designation of Series A Mandatorily Convertible Voting Preferred Stock, dated January 24, 2017
3.2
Certificate of Amendment of Restated Certificate of Incorporation of Salon Media Group, Inc., dated January 25, 2017
10.1
Purchase Agreement, dated as of January 24, 2017
10.2
Stock Exchange Agreement, dated as of November 14, 2016
10.3
Amendment to Stock Exchange Agreement, dated January 19, 2017.
10.4
Bridge Financing Agreement, dated as of August 5, 2016
10.5
Bridge Financing Agreement, dated as of August 5, 2016
10.6
Bridge Finance Amendment, dated January 25, 2017.
10.7
Bridge Finance Amendment, dated January 25, 2017.
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