Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Note 11. Commitments and contingencies

Legal Proceedings

Settled in 2014

None

Pending as of December 31, 2014

In 2014, we became subject to a lawsuit brought by D&D Technologies, Inc. (“D&D”) in the state of New Jersey for breach of contract and breach of implied covenant of good faith that occurred in 2013 and prior by the former CytoCore for failure to pay for past contractual services. The original complaint was dismissed and then refiled by D&D. D&D is seeking damages over $86,000 plus equitable relief. In 2015, the Company and D&D engaged in settlement negotiations and at the time of this filing had verbally agreed to settle the matter for approximately $15,000, however, no formal written settlement has yet been entered into.

CytoGlobe is subject to a court settlement on an alleged breach of the German competition law with Hologic Deutschland GmbH from August 2013. Both parties appealed the district court verdict at the higher regional court in September 2013, however at this time, the court has not schedule any further action and until such time as it does, the matter is at a standstill. As part of the decision from the local court, which the Company is appealing, the Company could be subject to a penalty up to a maximum of $304,000 if in the future it is found by the court to have improperly infringed on the product design of Hologic Deutchland GmbH.

Other Commitments

As a result of cash constraints experienced by the former CytoCore, the Illinois Franchise Taxes due for the year 2013, 2012, 2011, 2010 and 2009 have not been filed or paid. The Company believes that it has made adequate provision for the liability including penalties and interest. As the Company has moved its corporate headquarters out of the state of Illinois, it does not expect its liability going forward to increase substantially.