NOTE 18

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SUBSEQUENT EVENTS

During February 2016, the Company entered into an Advisory Agreement with the Placement Agent, according to which, the Company retained the Placement Agent on a non-exclusive basis to provide certain advisory services. In accordance with the terms of the Advisory Agreement, the Company extended the expiration date of the warrants issued to the Placement Agent in connection with the 2010 Offering and the 2012 Offering until December 31, 2019. The Advisory Agreement has a term of six months and shall automatically renew thereafter for additional 30 day terms unless terminated by either party upon receipt of 30 days prior written notice. The Company is in the process of evaluating the impact, if any, of the expiration date extension of the abovementioned warrants on the results of its operations.

On March 17, 2016, the Company’s Board of Directors appointed two new directors, Leslie Seff and Angela Strand, to the Board of Directors and approved the following compensation for all three non-employee directors serving on the Board: (i) an annual cash payment in the amount of $15,000, payable in four equal quarterly installments of $3,750 each on the last day of each calendar quarter commencing with the second quarter of 2016, subject to the director’s continued service as of each such date; (ii) an annual cash payment to the chairperson of the Nominating and Corporate Governance Committee in the amount of $10,000, payable in four equal quarterly installments of $2,500 each, on the last day of each calendar quarter commencing with the second quarter of 2016, subject to the chairperson’s continued service as of each such date; and (iii) a one-time grant of options to each non-employee director to purchase up to an aggregate of 26,666 shares of the Company’s Common Stock, at an exercise price of $4.50 per share, under and pursuant to the 2010 Share Incentive Plan. Each director’s option grant will vest in eight equal quarterly increments of 3,333.25 each (subject to the director’s continued service as of each such date) commencing with the second quarter of 2016.

On March 17, 2016, the Company’s Board of Directors approved an amendment to the 2010 Share Incentive Plan to increase the number of shares of the Company’s Common Stock reserved for issuance under the 2010 Share Incentive Plan from 529,555 shares to 1,000,000 shares.