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On January 10, 2014, Archer USA appealed the High Court&#146;s decision to the Supreme Court of Denmark. The Supreme Court has declined to hear Archer USA&#146;s appeal and Archer USA has no further opportunities for appeal in Denmark. The judgment entered against Archer USA in Denmark is for $2,549,794, plus interest of approximately $1,292,047, plus fees of approximately $168,000. If Archer USA did pay this judgment, the trustee would owe Archer USA, as a creditor of the estate, approximately $3,000,000 as of March 31, 2014. We believe that it is not probable that Archer USA will pay any amounts as a result of this judgment. We believe the proceedings in the Danish courts suffered from serious violations of United States public policy and due process requirements. In addition, we believe the judgment rendered by the Danish courts is not supported by and offends bankruptcy law and principles of both Denmark and the United States. We intend to vigorously contest the validity and enforceability of this judgment in the United States and to vigorously dispute any attempt made to enforce this judgment or collect these amounts.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font-size: 8pt">We are a party to a wage action captioned James O&#146;Brien v. iLoop Mobile, Inc., Lenco Mobile, Inc. and Matthew R. Harris, No. 12-2-12705-1 (King County Superior Court, filed 4/13/2012). Plaintiff claimed breach of contract and failure to pay wages under a 2011 iLoop employment agreement and Archer USA/Lenco Mobile retention bonus agreement between Plaintiff and the Company.&#160; In his complaint, Plaintiff sought retention bonus payments and/or six months&#146; wages under the employment agreement; double damages in the amount of any wage liability for willful nonpayment of wages, attorneys&#146; fees and costs, plus pre and post-judgment interest.&#160; The court granted summary judgment in defendants&#146; favor, dismissing the claim under the 2011 iLoop employment agreement, all claims against Matthew Harris, as well as the claim for double damages for willful nonpayment.&#160; The plaintiff&#146;s only surviving claim was tried and, following trial, the court entered judgment against plaintiff and in favor of defendants. The plaintiff has appealed the judgment. 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