Related Party Transaction

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transaction

13. Related Party Transaction

On June 2, 2014, Daniel R. Passeri resigned as Chief Executive Officer of the Company and the Company and Mr. Passeri entered into a consulting agreement. The agreement was for an initial term of one year, subject to renewal or earlier termination by the parties. Pursuant to the terms of the consulting agreement, Mr. Passeri agreed to provide 120 hours per month of consulting services to the Company on intellectual property, corporate and strategic matters. In consideration for the services rendered by Mr. Passeri to the Company, the Company agreed to pay Mr. Passeri $32,500 per month until June 1, 2015, provided that if at any time during the consultation period Mr. Passeri obtained full time employment with a third party, then Mr. Passeri and the Company would negotiate a good faith reduction in the number of hours that Mr. Passeri would consult, and thereafter Mr. Passeri would be paid an hourly fee, in lieu of the monthly retainer, for services rendered under the consulting agreement. On December 1, 2014, Mr. Passeri obtained full time employment with a third party. From December 1, 2014 through June 30, 2015, Mr. Passeri was compensated an hourly fee in lieu of a monthly retainer for services rendered to the company.

On June 1, 2015, the Company and Mr. Passeri renewed the agreement for a period of six months. On June 30, 2015, Mr. Passeri resigned from his full-time employment with a third party and, thereafter, the Company requested that Mr. Passeri begin providing 120 hours per month of consulting services for the remainder of the consulting term in exchange for monthly payments of $30,000. Pursuant to the terms of the consulting agreement, the Company recognized expenses of $90,000 and $114,300 during the three and nine month periods ending September 30, 2015, respectively, and expenses of $97,500 and $127,833 during the three and nine months ended September 30, 2014, respectively.