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Subsequent Events.
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 9. Subsequent Events.

 

On May 8, 2013, the Company issued 327,600 warrants to certain consultants in satisfaction of $81,900 of accrued consulting fees. The five-year warrants issued will vest upon the Company’s first commercial sale of product or upon a change of control of the Company, and are exercisable at $0.50 per share.

 

Between March 12 and May 8, 2013, officers, directors, and other related parties made cash advances to the Company totaling $146,341. On May 8, the Company issued 698,046 warrants to certain of these in lieu of cash repayment of $116,341 of these advances. The warrants issued are immediately exercisable, five-year warrants exercisable at $0.50 per share.

 

On May 8, 2013, the Company executed a consulting agreement with its interim CEO, Stan Myrum, effective as of April 23, 2013.

 

Under the terms of his consulting agreement, Mr. Myrum will earn an hourly fee to be paid in cash, and was issued a commitment fee of 150,000 warrants to purchase our common stock.  The agreement expires July 21, 2013, with automatic, successive two-month extension periods unless either party terminates the agreement.  Mr. Myrum will be eligible for an undetermined, mutually agreed upon bonus upon entering each extension period. The warrants will vest upon the first to occur of (a) the first commercialization by the Company of its products or (b) a Change of Control of the Company.  The warrants issued are immediately exercisable, five-year warrants exercisable at $0.50 per share.