On April 8, 2016, 4net Software Inc. entered into and closed a Securities Purchase Agreement among the
Company and Merlin Partners LP, Ancora Catalyst Fund LP, and Steven N. Bronson. Pursuant to the terms of the Securities Purchase Agreement, effective April 8, 2016 Leonard Hagan resigned as a Director on the 4net Software Inc.'s Board of Directors, and Brian Hopkins and Jeff Anderson were appointed as Directors. Additionally, Steven N. Bronson resigned as the Company's Chairman of the Board, Chief Executive Officer and President and Brian Hopkins was appointed as Chairman of the Board, Chief Executive Office and President.