On September 4, 2017, Generation Next Franchise Brands, Inc. and D&K Engineering, Inc. entered into a letter agreement indicating that the parties have agreed to terminate the Manufacturing Supply Agreement by and between the Company and D&K, dated May 16, 2017. The parties are terminating the Agreement due to the parties’ inability to come to a mutually agreeable final production schedule that meets the Company’s demand of preordered units. As of the date of termination, the Company had no outstanding obligations under the Agreement and D&K refunded the unused balance of the prepayments to the Company. The company did not incur any early termination penalties.