On January 10, 2019, DPW Holdings, Inc. executed a term sheet (the “Term Sheet”) which sets a summary of terms and conditions of a forbearance agreement with Cavalry Fund I LP (“Cavalry”), pursuant to which, for a period of ten trading days, Cavalry shall not exercise its right to foreclose on certain outstanding notes issued by the Company on October 10, 2018, and November 29, 2018. The Company is highly confident that the parties will come to a final definitive agreement within the 10-trading-day period.