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SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Note 14 - SUBSEQUENT EVENTS

On October 25, 2017, the Company received $250,000 by issuing a convertible promissory note (“Convertible Note”) to an individual that is due April 25, 2018 (“Maturity Date”). The Convertible Note shall accrue interest at 8% per annum and is unsecured. The conversion price of the Common Stock into which the Principal Amount, or the then outstanding interest due thereon, shall be the lower of $7.00 or the price per share of the latest closing of a debt or equity offering by the Company greater than $3,000,000. Pursuant to issuing this Convertible Note, the Company issued to the holder of this Convertible Note a warrant to purchase 50,000 shares of Common Stock at an exercise price at the lower of $7.00 per share or the price per share of the latest closing of a debt or equity offering by the Company greater than $3,000,000.

 

On October 15, 2017, the Company entered into an advisory board member consulting agreement with Brent McMahon (“Consultant”). The term of this consulting agreement is for one year. As consideration for entering into this consulting agreement, the Company shall grant 100,000 shares of the Company’s Common Stock shares (“Performance Shares”) based on the following timeline: (a) the first 50,000 Performance Shares will be granted to the Consultant upon execution of the consulting agreement and (b) the second 50,000 Performance Shares will be granted to the Consultant within ninety (90) days from the execution of the consulting agreement. On October 30, 2017, the Company issued 50,000 common stock shares at $3.50 per share for consulting services to be performed over a one-year period. The total value of this issuance was $175,000

 

On November 8, 2017, the Company received $250,000 by issuing a convertible promissory note (“Convertible Note”) to an individual that is due May 8, 2018 (“Maturity Date”). The Convertible Note shall accrue interest at 8% per annum and is unsecured. The conversion price of the Common Stock into which the Principal Amount, or the then outstanding interest due thereon, shall be the lower of $7.00 or the price per share of the latest closing of a debt or equity offering by the Company greater than $3,000,000. Pursuant to issuing this Convertible Note, the Company issued to the holder of this Convertible Note a warrant to purchase 50,000 shares of Common Stock at an exercise price at the lower of $7.00 per share or the price per share of the latest closing of a debt or equity offering by the Company greater than $3,000,000.

 

On October 27, 2017 the Company entered into a development agreement with Therapix Biosciences Ltd. (“Therapix”), a specialty clinical-stage pharmaceutical company dedicated to the development of cannabinoid-based drugs headquartered in Israel. The Company will formulate and develop pharmaceutical products using Therapix's proprietary compounds while utilizing the Company’s proprietary OTF technology. Total cost of the project is $140,000.

 

On November 10, 2017, the Company entered into an Assignment Agreement (“Assignment”) with CK Sciences, LLC (“CKS”) where CKS entered into a Sponsored Research Agreement (“SRA”) with The Technion Research & Development Foundation Ltd. (“TRDF”), effective February 2, 2017. The Company previously advanced TRDF $642,500 to commence the Research Project (“Payment”). As consideration for the Payment CKS agrees to assign the rights to CURE granted to CKS under section 6 of the SRA (“Intellectual Property Rights”) to make, use and sell products that are regulated by FDA and a foreign equivalent body using oral thin film technology or transdermal technology (“CURE Field”). The Company shall negotiate any license directly with TRDF and CKS will retain all rights under Section 6 of the SRA to make use and sell products in any field other than the CURE Field. The term of the Assignment is from March 2, 2017 to March 2, 2018.

 

On November 10, 2017, The Company received 269,000 shares of a private company, Oak Therapeutics, Inc. (“Oak”), for partial consideration for the grant rights by the Company to Oak under a license agreement between the Company and Oak. As a result of the Company receiving shares of Oak, the Company will own approximately 60% of Oak and therefore the Company will consolidate Oak’s financial statements during the fourth quarter 2017.