Annual report pursuant to Section 13 and 15(d)

Commitments

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Commitments
 12 Months Ended
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 13 — Commitments

Lease
On March 24, 2014, the Company entered into a lease for 14,782 square feet of office and laboratory space located at 4120 Freidrich Lane, Suite 100, Austin, Texas 78744. The triple net lease has a term of 48 months and commenced on June 1, 2014. The annual base rent in the first year of the lease is $154,324 and increases by $3,548 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building. The Company has a one-time option to terminate the lease on May 31, 2017 with a termination payment of approximately $99,000 if it elects to exercise this option.
The Company leased its former facility in Spicewood, Texas under a non-cancelable operating lease that expired on June 26, 2014.
At December 31, 2014, the remaining annual base rent commitments under the lease, assuming no early termination, are as follows:
 
 
For the year ended December 31,
Amount
2015
$
156,394
2016
159,941
2017
163,489
2018
68,736
Total
$
548,560
Rent expense incurred for the years ended December 31, 2014 and 2013 amounted to $137,559 and $37,930, respectively.
Employment Agreements
On January 8, 2014, the Company entered into an employment agreement with its Chief Executive Officer. The employment agreement has a term of three years. The agreement provides for severance payments upon termination without cause. Consequently, if the Company releases the executive without cause or due to a change in control, as defined in the employment agreement, the severance due would be a minimum one year’s salary of $300,000, plus any pro-rated bonus and vacations days earned but unused. The executive will be entitled to continue to participate in employee benefit plans, at the Company’s sole expense, for a period of one year following the termination of his employment.
On August 11, 2014 and September 16, 2014, the Company entered into employment agreements with executive management personnel that provide for severance payments upon termination without cause. The severance payment due would be six months’ salary, plus any pro-rated bonus and vacation days earned but unused. The executives will be entitled to continue to participate in employee benefit plans, at the Company’s sole expense, for a period of six months following the termination of employment.