Note 11 — Resignation Agreement

 

On January 9, 2015, the Company entered into a Resignation and Release Agreement (the “Resignation Agreement”) with Paul Bundschuh, the Company’s former Chief Marketing Officer. Under the terms of the Resignation Agreement, Mr. Bundschuh is to receive the full severance benefits to which he would have been entitled under his employment agreement if he had been terminated without cause. In addition, 10,000 stock options previously issued to Mr. Bundschuh and scheduled to vest on December 31, 2015 were immediately vested upon execution of the Resignation Agreement and recorded an expense of $26,067. The Company recorded an additional accrual of $140,000 related to the Resignation Agreement. At March 31, 2015, the remaining balance was $87,507 and is included in accrued expenses.