10. Subsequent Events
|6 Months Ended|
Jun. 30, 2017
|Subsequent Events [Abstract]|
Grant of Stock Options
In July 2017, the Company’ shareholders elected a new member to the Board of Directors. Upon this election, in accordance with the Company’s Board of Directors compensation policy, the Company granted the new director stock options to purchase a total of 122,567 shares of common stock. The stock options vest monthly through December 31, 2017, are exercisable at $0.19 per share and will expire 10 years from the date of issuance. Total fair value of the stock options amounted to $20,000 which will be expensed over the vesting period.
On July 13, 2017, the Company and Temple University entered into an amendment to the exclusive license agreement related to the Company’s AOT viscosity reduction technology. The amendment defers those outstanding fees in the amount of $135,000 owed by the Company to Temple University under the license agreement, until such time as the Company either receives sales receipts exceeding $835,000 or sublicenses the agreement. Further, the amendment established interest rates for outstanding fees and terms of payment for an annual license fee between the Company and Temple University.
Additionally, on July 13, 2017, the Company and Temple University entered into a payment agreement related to the sponsored research agreement of March 19, 2012 between the parties, as amended on March 19, 2013. Under the terms of the payment agreement, the Company and Temple University agreed to a payment schedule for outstanding fees in the amount of $78,314, owed by the Company to the Temple under the research agreement. Under the terms of the payment agreement, these fees are payable $20,000 upon the effective date of the Agreement, and the balance payable in six equal monthly installments of $9,719.
Conversion of Convertible Notes
From July 1, 2017 up to August 7, 2017, Company issued 3,453,092 shares of restricted common stock upon conversion of previously issued convertible notes in aggregate value of $174,000.
Exercise of Warrants
From July 1, 2017 up to August 7, 2017, the Company issued 2,500,000 shares of restricted common stock on the exercise of warrants in aggregate value of $203,250.
Exercise of Options
In July 2017, the Company issued 271,752 shares of restricted common stock on the exercise of options by a member of the Company’s Board of Directors.
Private Sale of Unregistered Securities
In July, 2017, the Company issued 181,355 shares of restricted common stock at a price of $0.21 per share, total proceeds of $38,000 by a member of the Company’s board of directors in private offerings exempt from registration.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/presentationRef