11. Payable to Related Parties

On March 17, 2014, we delivered written notice to CRA terminating the Advisory Agreement effective May 16, 2014. We attempted to effectuate an orderly transition with CRA. However, on April 1, 2014, CRA and certain of its affiliates filed suit in Orange County (CA) Superior Court containing certain assertions against the Company, its directors and officers. The filing of this claim and lack of contractually-mandated cooperation by CRA effectively accelerated termination of the Advisory Agreement as of the date of the filed claim. Plaintiffs and defendants have exchanged initial discovery and other information requests but little information has been exchanged until the court enters a protective order. On May 19, 2014, the Company filed a counter claim against plaintiffs and certain individuals affiliated with CRA and affiliated entities. Based upon our examination of the assertions made by CRA, we believe that they are without merit, and the Company will vigorously defend itself, its directors and officers against these claims. Additionally, when CRA provides certain supporting documentation to us, we will evaluate if any further amounts are due to CRA. We believe that net amounts currently owed to the Company by CRA exceed any amounts that may be due to CRA. However, based on the information we currently have available, we currently have limited ability to evaluate the collectability of such amounts, so they have accordingly been fully reserved.