v2.4.1.9
4. Related Party Transactions
 12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

In January 2014, the following related parties participated in the private placement of Series C-3 preferred stock and warrants to purchase the Company’s common stock at an exercise price of $1.25 per share, which was reduced to $0.90 in September 2014.  Each share of Series C-3 preferred stock is convertible into 10 shares of common stock.  All terms were the same as the Series C-1 and C-2 preferred stock issued in the October 2013 private placement:

 

     

 

 

Amount

     Number of Series C-3 Preferred Stock    

 

Number of Warrants

  

 

Gary A. Gelbfish (1)

 Former Chairman of the Board   $ 500,000       50,000       250,000  
Randy Milby CEO and Director   $ 237,000       23,700       118,500  
MW Bridges LLC, an entity for which Randy Milby is Managing Partner     $    13,000           1,300           6,500  

 

Steven W. Lefkowitz

 Director and Former Interim CFO   $ 45,000       4,500       22,500  
Wade Capital Corporation Money Purchase Plan, an entity for which Steven W.  Lefkowitz has voting and investment control     $        30,000               3,000               15,000  

 

(1) Gary A. Gelbfish resigned effective June 13, 2014 and ceased to be a related party 90 days thereafter.

 

In each instance, the purchase was on the same terms as all other purchasers in the offerings.  The Audit Committee of the Board of Directors approved the purchase by these insiders.