On December 31, 2018, the principal balance of $9.4 million on the 10% Unsecured Promissory Notes and the Series B Unsecured Promissory Notes (collectively, the Unsecured Notes) previously issued by PetroShare Corp. became due. The Company was unable to pay such principal balance by December 31, 2018. As a result, the Company sent a notification to the Unsecured Note holders informing them of the default and that it will provide a formal proposal to address the Unsecured Notes on or before January 31, 2019. The Company paid the interest on the Unsecured Notes current through December 31, 2018.