Related Party Transactions

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

6. Related Party Transactions

Sichenzia Ross Friedman Ference LLP (“SRFF”), provided legal services to the Company. For the three months ended March 31, 2014, SRFF invoiced the Company on an aggregate amount of $204,708 for legal services rendered. In addition, as disclosed in Note 5, during the three months ended March 31, 2014, Mr. Kesner was awarded 75,000 non-qualified stock options (the “Director Options”) to acquire shares of the Company's common stock and 600,000 non-qualified options with a term of five (5) years and an exercise price of $5.83. Mr. Kesner is a director and partner of SRFF.

On January 6, 2014, the Board of Directors of Spherix Incorporated appointed Richard Cohen as its Chief Financial Officer, and Michael Pollack resigned as the interim Chief Financial Officer of the Company, effective January 3, 2014. Mr. Cohen is serving as the Company’s Chief Financial Officer pursuant to an agreement with Chord Advisors LLC (“Chord”), of which Mr. Cohen is Chairman. In consideration for Mr. Cohen’s services, the Company has agreed to pay Chord a monthly fee of $20,000 ($5,000 of which will be payable in shares of the Company’s common stock). In April 2014, the Company modified this agreement to pay Chord a monthly fee of $20,000 in cash.