On October 22, 2016, CoroWare, Inc. received a formal notice of default from YA Global Investments, LP (YA Global) with respect to various loan agreements. As a result of Coroware's defaults on the loan agreements, including but not limited to failure to make payment in accordance with the loan agreements, YA Global has accelerated the amount to be immediately due and owing under the Loan Agreements to be a total of $2,885,607.98 ($2,769,990.00 principal and $115,617.98 interest (as of Oct. 18, 2016)). Interest accrues at the rate of $446.46 per day. According to the notice of default, YA Global will proceed with litigation unless Coroware has paid the full amount due and owing by October 28, 2016. The notice of default notes that YA Global is the senior secured creditor with respect to all accounts receivable of Coroware (and its subsidiaries) and directs Coroware to inform all account debtors to remit all sums due Coroware to YA Global.