Link Bit Consulting Co. Ltd., the wholly-owned subsidiary of Grand Perfecta, Inc. (together with Link Bit Consulting Co. Ltd., Grand Perfecta or the company) entered into a loan agreement with Toshiro Ohshimo, an unrelated third party (the lender), pursuant to which the lender loaned to the company JPY 100,000,000 (current USD value approximately USD 954,893). Under the terms of the loan agreement, interest accrues on the unpaid principal at the rate of 15% per annum and is payable monthly. Principal is due and payable in a lump sum on December 15, 2016. Mr. Shuya Watanabe, a director, the chief executive officer, and a principal stockholder of the Company, agreed to be jointly and severally liable with the Company for repayment of the loan to the lender.