Subsequent Events

6 Months Ended

Jun. 30, 2016

9. Subsequent Events

On August 11, 2016, the Company entered into a term note agreement with a third-party company (“Borrower”) for a loan of $150,000, plus expenses incurred by the Company in connection with the execution of this term note. The note is due at the earlier of (1) February 13, 2017, or (ii) the occurrence of certain events, as defined in the agreement. The note is secured by a personal guarantee of the principal officer of the Borrower as well as a corporate guarantee by MDB. The current principal amount as of August 11, 2016, including expenses incurred by the Company, is $153,500. The term note provides that the principal amount of the loan will be increased by $350,000, plus expenses incurred by the Company in connection with the note, if and when the principal officer of the Borrower provides additional security for the total loan amount in the form of a mortgage on certain real estate. The interest rate on the borrowed amount is 8% per annum. The loan agreement contains additional covenants, representations and events of default.