On March 18, 2013, in an effort to reduce the company’s expenses, Mr. Joseph Hayden advised the Board of Directors of Applied Energetics, Inc. that he is resigning as President of the company effective April 1, 2013 but agreed to continue to serve as a consultant to the company. The board and Mr. Hayden agreed that Mr. Hayden would continue to serve as the company’s principal executive officer, principal financial officer and principal accounting officer.

Applied Energetics, Inc.’s common stock has been deleted from OTC Bulletin Board (OTCBB) effective July 23, 2012 on account of its ineligibility for quotation on OTCBB due to quoting inactivity under SEC Rule 15c2-11.

On July 8, 2012, General James M. Feigley, Chairman of the Board of Applied Energetics, Inc., advised the Board of Directors that the Marine Corps requested that he Co-Chair a team of both active and retired General Officers to analyze its current weapons acquisition system and make recommendations for its immediate improvements. Mr. Feigley further advised the Board that this activity will begin on or about July 16, 2012 and continue through October and that he has accepted this appointment. The comprehensive nature of this task is such that he would be unable to devote the time necessary to properly discharge his duties as Chairman of the Board of Applied Energetics. The needs of both the shareholders and employees of the company deserve the undivided attention of its Chairman which this new responsibility would preclude. As such he resigned his position and membership on the Board effective July 9, 2012. General Feigley also suggested to the members of the Board that The size of the Board should be reduced to three members to reduce the overall Board of Directors compensation. On July 8, 2012, Mr. James Harlan voluntarily agreed to resign from his position as a director effective July 9, 2012. On July 9, 2012, the Board of Directors appointed Mark Lister to serve as Chairman and increased the director compensation payable to George Farley and John Levy to $50,000 per annum, in view of the additional duties and responsibilities on the remaining directors. General Feigley served as a member of the Nominating and Governance Committee and Compensation Committee of the Board and Mr. Harlan served as a member of the Audit Committee of the Board and Chairman of the Compensation Committee of the Board.