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Subsequent Events
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
9. Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.

 

Stock Option Grants

 

On July 6, 2016, the Company granted options to non-employee directors of the Company to purchase an aggregate of 161,804 shares of common stock under the Company's stock equity plan at an exercise price of $0.35 per share for an aggregate grant date value of $55,550.  The options vested on the grant date and have a term of ten years.  The options were granted as part of director compensation approved by the Compensation Committee.

 

Stock Options Exercised

 

On July 27, 2016, the Company issued an aggregate of 1,492,078 shares of Common Stock to an officer and the directors of the Company who elected to exercise options to purchase 3,091,475 shares of Common Stock on a cashless basis under the terms of the options.  The options had exercise prices ranging from $0.09 to $0.30 per share.

 

Stock Warrants Exercised

 

On July 27, 2016, the Company issued an aggregate of 721,776 shares of Common Stock to an officer of the Company who elected to exercise warrants to purchase 1,125,000 shares of Common Stock on a cashless basis under the terms of the warrants.  The warrants had exercise prices ranging from $0.10 to $0.12 per share.

 

Common Stock Issuance

 

On July 28, 2016, the Company entered an Exchange Agreement with Dellave Holdings LLC ("Dellave") whereby the Company issued an aggregate of 2,253,528 shares of Common Stock in exchange for the extinguishment of accounts payable balances totaling $698,594 held by Dellave.  The exchange was based on the prior day's closing price of $0.31.   Mr. Timothy Reilly is the managing member of Dellave.  Mr. Reilly is also the managing member of Melrose Capital Advisors, LLC, the Company's senior lender.