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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2016
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
8.Commitments and Contingencies

 

Leases

 

The Company leases a plant in Kentucky under an operating lease which expires May 31, 2016. Minimum base rental payments of $7,031 for the final two months of the lease term are required under the lease. Monthly base rental payments approximate $3,500. The lease agreement also provides for additional rents based on increases in building operating costs and real estate taxes. Management is currently discussing renewal lease options for the Kentucky plant and expects to operate on a month-to-month lease arrangement until a final agreement has been accepted. In addition, Innate operates in Puerto Rico in space owned by one of the parties to the joint venture. Rent expense for the three month periods ended March 31, 2016 and 2015, was $16,616 and $20,461, 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 annual compensation of up to $145,000 and the issuance of stock options, at exercise prices of $0.40 and $0.80, to purchase 4,530,000 shares of common stock issuable upon the Company’s revenue exceeding $5,000,000 and $10,000,000, as defined. In addition, the agreements provide for bonus compensation to these individuals aggregating up to 15% (with no individual having more than 5%) of the Company’s pretax income.

 

Restricted Stock

 

The Company has entered into an agreement with consultants of Innate to issue each consultant 150,000 restricted shares of Immudyne, Inc. common stock for each $500,000 distributed by Innate to the Company. As of March 31, 2016 no shares have been issued under this agreement. The amount of shares to be issued by the Company to consultants is capped at 3,000,000.

 

Legal Matters

 

In the normal course of business operations the Company may become involved in various legal matters. At March 31, 2016, 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.