On February 15, 2014, Mr. Sean W. Kennedy, a Director of Applied Visual Sciences, Inc. since July 14, 2003, notified the Company of his decision to resign effective immediately. Mr. Kennedy had previously served as a member of Company's Audit, Nominating, Compensation and Special Committees during his tenure, and was a consultant to the Company since May 27, 2008. Mr. Kennedy's resignation is to that he can devote his full attention to his company, BND Software, and other activities.