Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Note 9. Commitments and Contingencies

The Company currently leases 13 vehicles for sales and service employees, delivery and other purposes with expirations ranging from May 2015 through February 2018. The current minimum monthly payment for these vehicle leases is approximately $6,024.

The Company has several operation leases for office, laboratory and manufacturing space. The Company’s operating lease for one of its German facilities can be cancelled by either party with a 3 months’ notice, its Poland facility can be terminated by either party with a six month notice. Monthly rent payments for the German and Poland facilities are Euro 4,000 ($4,513 as of March 31, 2015) and PLN 6,240 ($1,645 as of March 31, 2015) respectively. The Company’s laboratory facility in Chicago, IL terminates June 30, 2015 and requires monthly payments of $1,070. The Company also sublease its former Chicago laboratory facility for $3,916 per month. The lease for this facility terminates October 30, 2016 and require monthly rent payments of $4,270. The Company’s Orlando facility has escalating rents ranging from $2,345 to $2,563 per month and terminates July 31, 2018. The total aggregate monthly lease payments (net of the sublease) required on these leases is approximately $9,800.

In 2014, the Company 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. This settlement has been accrued as of March 31, 2015 and included in account payable and accrued expenses on the accompanying condensed consolidated balance sheet.