"Given the scale of new market opportunities our development could address, the desire of PC OEMs to secure increasing amounts of metal mesh manufacturing capacity and the Asia concentration of our customer base, we believe strategic partnerships will be an important element of our continued growth. We've had interest from several potential strategic partners that are at various stages of discussion.

During the quarter, we announced entering a memorandum of understanding with GIS, a current Uni-Pixel customer, to negotiate a definitive agreement. The two parties were not able to come to an equitable agreement by the expiration date of April 17, 2017. While GIS remains our valuable customer, we are hoping to continuing discussions at anytime with GIS that will lead to a fair agreement of partnership for both sides. In the meantime, we are continuing discussions with several parties interested in partnering with us. I was in Asia last week reviewing a proposal with one potential partner and have been invited to present to their Board of Directors.

Jalil and I were in Colorado Springs at the beginning of this week to provide a factory tour and discuss the partnership proposal with another potential partner. Given the importance of strategic partnerships, we are dedicating a significant amount time and energy on this initiative.

We are executing our strategy to address new markets one to two years out with new technology development and strategic partnerships. "