Effective August 9, 2018, Robert A. DeSantis resigned from the BSQUARE Corporation's Board of Directors. Effective August 11, 2018, upon the recommendation of the Governance and Nominating Committee of the board, Robert J. Peters was appointed as a member of the Board to fill the vacancy on the Board resulting from the resignation of Mr. DeSantis. Mr. Peters will serve as a Class I Director and, as such, his term of office will expire at the Company’s 2019 Annual Meeting of Shareholders. Mr. Peters was also appointed to the company’s newly established Ad Hoc Strategic Review Committee. Mr. Peters is a principal of Palogic Value Management, L.P. a position he has held since January 2007. Pursuant to that certain previously disclosed Board Observer and Standstill Agreement dated effective June 25, 2018 by and between the company and PVM, Palogic Value Fund, L.P. and Palogic Capital Management, LLC Mr. Peters served as an observer to the board prior to his appointment as a Class I Director.