SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2017

Note 11: SUBSEQUENT EVENT

On July 6, 2017, the Board of Directors of the Company approved the 2017 bonus program for Dr. Glynn Wilson, our Chief Executive Officer and President, and Mr. Michael J. Loiacono, our Chief Financial Officer, Treasurer and Secretary, as recommended by the Compensation Committee of the Board of Directors. Under such bonus program, Dr. Wilson and Mr. Loiacono are eligible for bonuses of up to $140,000 and $60,000, respectively, equaling up to 50% and 30%, of their respective base salaries.

The bonus amount of up to $140,000 to Dr. Wilson is to be allocated upon the achievement of the following objectives:

(i)

up to 40% of the bonus amount for meeting scientific, technical and clinical objectives;

(ii)

up to 20% of the bonus amount for financial performance and corporate objectives related to our raising capital; and

(iii)

up to 40% of the bonus amount designated to be discretionary as determined by the Board.

In order for Dr. Wilson to achieve his eligible bonus of $140,000, he would need 100% attainment in each of the above objectives.

The bonus amount of up to $60,000 to Mr. Loiacono is to be allocated upon the achievement of the following objectives:

(i)

up to 33.3% of the bonus amount for meeting corporate and operational objectives;

(ii)

up to 33.3% of the bonus amount for financial performance objectives including related to our raising capital; and

(iii)

up to 33.3% of the bonus amount designated to be discretionary as determined by the Board.

In order for Mr. Loiacono to achieve his eligible bonus of $60,000, he would need 100% attainment in each of the above objectives.

The bonuses will be paid in a combination of cash and common stock at the discretion of the Compensation Committee.