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Subsequent Events
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 13 - Subsequent Events

 

Except for the event(s) discussed below, there were no subsequent events that required recognition or disclosure. The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission.

 

Compensation Increase and Option Grant for Chief Financial Officer

 

On January 15, 2019, the Board of Directors (the “Board”) of the Company approved an increase of the base salary to be paid to the Chief Financial Officer of the Company (our “CFO”), from $285,000 per year to $305,000 per year, effective immediately. The Board also granted to our CFO options to purchase up to an aggregate of 100,000 shares of the common stock of the Company at an exercise price of $0.32 per share, with 25,000 options being exercisable immediately and with 25,000 options vesting on each of the first, second and third anniversary of the grant date.

 

Resignation of Chief Commercial Officer

 

On January 15, 2019, the Board accepted the resignation of the Chief Commercial Officer of the Company (our “former CCO”), effective immediately. He will remain as a member of the Board. Simultaneous with his resignation as our CCO, the Company and our former CCO entered into a Consulting Agreement dated as of January 15, 2019 pursuant to which our former CCO agreed to provide certain consulting services regarding the Company’s FDA-approved Prestalia product for a fee of $3,000 per month.

 

Resignation of Chief Financial Officer

 

On March 11, 2019, our CFO submitted his resignation as our CFO and from any other positions (whether as an officer, director or otherwise) that he may hold with the Company or any of its subsidiaries, effective March 22, 2019. The Company anticipates that he will be available to assist in the transition of his ongoing activities on behalf of the Company to his successor following the effective date of his resignation. His services have been retained for the preparation and filing of this document.

 

Resignation and Appointment of Chief Executive Officer

 

On April 4, 2019, the Company entered into an employment agreement with our new CEO, Nancy R. Phelan, effective immediately, who was also appointed to serve as Secretary of the Company. In connection with the appointment of our new CEO and Secretary, Robert C. Moscato, Jr. resigned from such positions, and also from his position as a member of the Board of Directors of the Company effective immediately.

 

The Employment Agreement provides for a three-year term and a base salary of $360,000 per year, which is subject to review and adjustment by the Board from time to time. Our new CEO shall be eligible for an annual discretionary cash bonus with a target of 50% of her base salary, subject to her achievement of any applicable performance targets and goals established by the Board. We granted to our new CEO options to purchase an aggregate of 1,500,000 shares of our common stock, of which 400,000 are exercisable immediately, 600,000 vest on a monthly basis over a two year period beginning on April 4, 2020, and 500,000 vest upon the achievement of certain product sales and stock price targets.