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Commitments and Contingencies
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
10.       Commitments and Contingencies
 
Leases
 
The Company leases a plant in Kentucky under an operating lease which expires May 31, 2016.  Future minimum base rental payments required under the lease are as follows:
 
Year ending
December 31
     
2014
  $ $41,675  
2015
    42,187  
2016
    17,578  
Total
  $ $101,440  
 
Monthly base rental payments approximate $3,400.  The lease agreement also provides for additional rents based on increases in building operating costs and real estate taxes. Rent expense for the years ended December 31, 2013 and 2012, was $55,430 and $59,204, respectively.
 
Employment and Consulting Agreements
 
The Company has entered into various agreements with officers, directors, employees and consultants that expire in one to five years.  The agreements provide for the issuance of stock options, at exercise prices ranging from $0.40 to $5.00, underlying 6,950,000 shares of common stock issuable upon the Company’s revenue exceeding amounts ranging from $5,000,000 to $100,000,000, as defined.  The Company’s President’s annual base salary of $120,000 was amended to $145,600 effective October 12, 2012. Annual compensation agreements for other officers, directors, employees and consultants range from $5,000 per month to $15,000 per month.  In addition, the agreements provide for bonus compensation to these individuals aggregating 16.5 percent of the Company’s pretax income.
 
During 2013 the Company entered into a consulting agreement, effective February 1, 2013 with an unrelated third party.  Under the terms of the agreement, the consultant receives $15,000 per month, and an option to purchase 250,000 shares of common stock at $0.20 per share which vested on May 1, 2013 and expires 2023.  In addition, the consultant received options to purchase 375,000 shares of common stock at $0.40 and 375,000 options at $0.80, contingent on the Company’s revenue exceeding $5,000,000 and $100,000,000 as defined.  In June 2013, the Company agreed to issue to this individual  additional options which allow the employee to purchase an aggregate of 1,500,000 shares at exercise prices ranging from $1.50 to $5.00, contingent upon the Company’s revenue exceeding $20,000,000, $50,000,000 and $100,000,000 as defined.
 
Legal Matters
 
In the normal course of business operations the Company may become involved in various legal matters. At December 31, 2013, the Company’s management does not believe that there are any potential legal matters that could have an adverse effect on the Company’s financial position.
 
In October 2013, the Company agreed to a judgment against the estate of a former officer and related individuals, and on March 12, 2014, a settlement was reached with these parties in the amount of $386,000.  Legal settlement proceeds of $210,000, net of related legal costs of $176,000 (see note 11), are recorded in the accompanying statement of operations for the year ended December 31, 2013.  During the year ended December 31, 2013, the Company received net proceeds of $78,000 and the balance, $132,000 net of related legal costs, is recorded as legal settlement proceeds receivable in the accompanying balance sheet as of December 31, 2013.  The Company received the balance due at December 31, 2013, $132,000 net of related legal costs, in March 2014.
 
In November 2009, the Company entered into a settlement agreement to resolve all aspects of litigation relating to a patent suit. As part of that settlement agreement, the Company received $440,000 as reimbursement for litigation costs. The Company also was awarded $200,000 in eight installments of $25,000 every six months beginning on January 15, 2011, in return for an exclusive patent license. The term of the license agreement is consistent with the term of the $25,000 semiannual payments. The $25,000 installments are being recorded as revenue only upon receipt of the funds. As of December 31, 2013, $50,000 remained to be paid to the Company under this agreement.