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</LabelSeparator><Level>2</Level><ElementName>us-gaap_RelatedPartyTransactionsDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Timothy N. Tangredi, our Chief Executive Officer
and Chairman, is a founder and a member of the board of directors of Aegis BioSciences, LLC (&amp;#147;Aegis&amp;#148;). Mr. Tangredi
currently owns 52% of Aegis&amp;#146; outstanding equity and spends approximately one to two days per month on Aegis business for
which he is compensated by Aegis. Aegis has two exclusive, world-wide licenses from us under which it has the right to use and
sell products containing our polymer technologies in biomedical and health care applications. As a result of a $150,000 payment
made by Aegis, the first license is considered fully paid and as such no additional license revenue will be forthcoming. Pursuant
to the second license Aegis made an initial one-time payment of $50,000 and is to make royalty payments of 1.5% of the net sales
price it receives with respect to any personal hygiene product, surgical drape or clothing products (the latter when employed in
medical and animal related fields) and license revenue it receives should Aegis grant a sublicense to a third party. To date Aegis
has sold no such products nor has it received any licensing fees requiring a royalty payment be made to us. All obligations for
such payments will end on the earlier of June 2, 2015 or upon the aggregate of all sums paid to us by Aegis under the agreement
reaching $1 million. The term of each respective license runs for the duration of the patented technology.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company rents a building that is owned
by two stockholders of the Company, one of which is the Chief Executive Officer. Rent expense for this building is currently $4,066
per month. The Company recognized rent expense of approximately $12,200 and $11,400 during the three months ended June 30, 2013
and 2012, respectively. The Company recognized rent expense of approximately $24,400 and $22,800 during the six months ended June
30, 2013 and 2012, respectively. At June 30, 2013 and December 31, 2012, $97,835 and $82,195, respectively, were included in accounts
payable for amounts owed for rent.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company also has accrued compensation due
to the Chief Executive Officer and other employees for deferred salaries earned and unpaid as of June 30, 2013 and December 31,
2012 of $1,559,349 and $1,494,739, respectively. The Company determined that total accrued compensation should be classified as
a long term liability, as the Company does not believe it will be repaid within the next year.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The above terms and amounts are not necessarily
indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent
parties.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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