Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.4.0.3
Subsequent Events
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
12. SUBSEQUENT EVENTS

On April 27, 2016, the Board of Directors appointed Chairman Jay H. Nussbaum to the position of Chief Executive Officer. Kevin Hess resigned as Chief Executive Officer and was appointed to the position of Chief Technology Officer.

 

On April 27, 2016, the Board of Directors increased from four directors to five directors. Lt. General Michael T. Flynn (Retired) was appointed as an independent director and Vice Chairman of the Board for a two year term. General Flynn has also been appointed to the Strategic Advisory Board.  The Company issued 100,000 shares of restricted common stock with monthly vesting provisions for twenty-four months services pursuant to a Director Agreement. The Vice Chairman can earn a pro rata portion of the shares, calculated on a twenty-four month vesting period, in the event the Vice Chairman relinquishes his position and board seat prior to the expiration date of the Director Agreement.

 

On April 27, 2016, the Company issued 150,000 shares of restricted common stock with monthly vesting provisions to two members of its Strategic Advisory Board for 12 month’s services. The advisors can earn a pro rata portion of the shares, calculated based on the twelve-month vesting period, in the event the service agreements are terminated prior to the expiration date as described in the agreements.

 

On April 27, 2016, the Company issued 1,150,000 shares of restricted common stock outside of the 2015 Equity Plan to five management employees pursuant to stock award agreements. The shares will vest upon consummation of a significant equity and/or debt financing at least equal to the November 2015 financing which raised $3,725,000 provided that the holder remains engaged by the Company through the vesting date.

 

On April 27, 2016, the Company issued 110,000 options and warrants from the 2015 Equity Plan to six employees and consultants for services provided. These options were immediately vested and were granted with an exercise price of $2.91 and the expiration date of April 27, 2019.