The Company entered into a Binding Term Sheet (“Term Sheet”) with SG Austria and Austrianova pursuant to which the parties reached an agreement to amend certain provisions of the APA, the Diabetes Licensing Agreement and the Cannabis Licensing Agreement. The Term Sheet states that the Company will pay Austrianova periodic payments totaling $900,000 upon execution of the amendments required by the Term Sheet. As of January 31, 2018, the amendments to the APA, the Diabetes Licensing Agreement and Cannabis Licensing Agreement to be entered into pursuant to the Term Sheet have not been finalized. The terms have been generally agreed to and the Company has made payments totaling $600,000. As of January 31, 2018, the Company’s obligation under the Term Sheet is $300,000. (See Note 10).