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11. CONTRACTS AND AGREEMENTS | 12 Months Ended
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Dec. 31, 2014
Notes to Financial Statements |
11. CONTRACTS AND AGREEMENTS | In September 2014, the Company entered into a Sales and Distribution Agreement, superseding previous agreements, with TOMI Panama covering Panama, El Salvador, Guatemala, Nicaragua, Columbia, Honduras, Costa Rica and Ecuador. TOMI Panama is its exclusive distributor of the Company’s products and services within the country of Panama. For the year ended December 31, 2014, revenues of approximately $400,000 were recognized with regards to TOMI Panama. On September 25, 2014, the Company appointed Norris Gearhart as Principal Operating Officer of the Company and entered into an employment agreement with him. The agreement provides for a base salary of $126,000 per year and bonus in the form of 100,000 shares of the Company’s restricted stock valued at $29,000. The restricted shares were issued in October of 2014. On October 15, 2014, the Company entered into a manufacturing and development agreement with RG Group, Inc. The agreement does not provide for any minimum purchase agreements and is for a term of 2 years. For the year ended December 31, 2014, RG Group, Inc. manufactured substantially all of the Company’s equipment.

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