SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 8:-     SUBSEQUENT EVENTS

 

a. On April 3, 2015, the Company’s Board of Directors approved a shares for salary program according to which the executive officers of the Company shall have the power and authority to cause the Company to issue shares of Common Stock to directors, officers and employees of the Company as consideration for a reduction in or waiver of cash salary or fees owed to such individuals.

Consequently, during April 2015, the Company issued a total of 400,093 shares of Common Stock to three of its Board of Directors members which are equal to the fair value of the cash accrual at the same date of issuance.

b. On April 16, 2015, Ltd. sent a letter cancelling its Exclusive Distribution Agreement, dated as of April 17, 2013 and as amended (the "Agreement"), with its current distributor in the United Kingdom (the "UK distributor"). On April 20, 2015, the UK distributor alleged that Ltd. breached the Agreement by cancelling it with no legal right to do so. On April 30, 2015, Ltd. responded to the allegations by claiming that the UK distributor caused a material breach of the Agreement, and that the Agreement should be void due to misrepresentations made by the UK distributor concerning its marketing ability in the territory covered by the Agreement. Following Ltd.’s response, on May 6, 2015, the UK distributor informed Ltd. that he plans to take legal action to enforce his rights. 

c. On May 5, 2015, the Company’s Board of Directors approved a certain warrants exercise and replacement agreement according to which the Company (i) will request the investors and the finder from the February 2015 Private Placement to exercise for cash, their outstanding 2,821,613 and 60,356 warrants, respectively, with an original exercise price of $0.24, by May 15, 2015 and (ii) upon such exercise, the Company will issue such investors or finder shares of Common Stock and additional warrants to purchase same amount of shares of Common Stock, for an exercise price of $0.24, having the same terms and conditions of the exercised warrants. Such transaction will be accounted as deemed dividend.

As of May 14, 2015, 1,651,362 of such warrants were exercised into 1,651,362 shares of Common Stock for a total consideration of $396.