Subsequent Events

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

8. Subsequent Events

Stock Option Grants

On July 15, 2014, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued Director Options with a term of five (5) years and an exercise price of $1.61 to the individuals listed below for the number of shares of common stock set forth opposite their respective names:

· Anthony Hayes, Chief Executive Officer and Director – 100,000 shares, vesting immediately;

· Edward Karr – 200,000 shares, vesting immediately;

· Douglas Brown – 200,000 shares, vesting immediately;

· Alexander Poltorak – 200,000 shares, vesting immediately; and

· Robert Vander Zanden – 200,000 shares, vesting immediately.

Also on July 15, 2014, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued 25,000 options with a term of five (5) years and an exercise price of $1.61 to Hayley Behrmann, an employee of the Company. The options shall vest immediately.

Contract Settlement

Effective June 30, 2014, the Company resolved a contractual dispute with a financial advisor whereby the Company paid $150,000 in cash and $225,000 in shares of registered common stock.  The settlement of the contractual dispute was completed on July 10, 2014.  This aggregate amount has been included in accounts payable and accrued expenses on the condensed consolidated balance sheet as of June 30, 2014.  The underlying agreement between the Company and financial advisor remains in effect through December 2014.