Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

(18) Subsequent Events

The Company evaluated subsequent events through the date on which these financial statements were issued. 

In January 2016, there was a sale of the 2014 New Jersey state net operating loss for approximately $1,561,000 as disclosed in Note 13 Income Taxes (FASB ASC 740 Income Taxes)

A flood occurred on the afternoon of January 5, 2016, caused by a malfunctioning water supply pipe for the sprinkler system covering a large amount of the cleanroom in stagnant water and silt from the sprinkler system. The Company’s newly upgraded Alferon® facility in New Brunswick, NJ., will be constrained in its ability to manufacture product in the near future due to a flood in the upstream processing cleanroom that contains the bioreactor. Fortunately, the emergency systems that were/are in place did work, alerting its personnel and the local Fire Department that the pressure in the sprinkler system had dropped. Once the Fire Department deemed the facility safe to enter, the Company immediately alerted its insurance company and contracted a Damage Mitigation company to minimize the loss. The Company is currently working with equipment manufacturers, construction trades and vendors to assess the damage and curtail the amount of downtime to continue work need to complete the FDA Pre-Approval-Inspection. The Company will provide further updates on the situation and timelines to produce commercial Alferon®, once the damaged has been mitigated and the cleanroom has been re-validated to manufacture Alferon®. The Company will focus on the Early Access Program and clinical sales during this hiatus, as, it believes, the damage should not impede such sales.

On February 17, 2016, the Board of Directors of the Company, by majority vote, terminated the employment of Dr. Carter, our Chairman of the Board, Chief Executive Officer and Chief Scientific Officer. As a result, Dr. Carter also is no longer a director. Dr. Mitchell was named Chairman of the Board. In recent months, the Company has been reexamining its fundamental priorities in terms of direction, corporate culture and its ability to fund operations.

On February 19, 2016, the Board of Directors of the Company also made several changes to its executive management team in light of the termination of Dr. Carter, to provide effective and competent leadership that will properly position the Company to achieve its commercial goals and increase stockholder value. In this regard, Adam Pascale has been named Chief Financial Officer in addition to his current responsibilities as Chief Accounting Officer. Mr. Pascale has been employed with Company for 18 years, with more than two decades of public accounting experience and prior public company experience. He earned a Bachelor of Arts degree in Accounting and Finance from Rutgers University. Mr. Pascale served for several years as a CPA prior to joining the Company, and is a member of both the American and the Pennsylvania Institutes of Certified Public Accountants. Mr. Equels, President of the Company, resigned as Chief Financial Officer to make way for Mr. Pascale.

On February 19, 2016, a complaint was filed against the Company by William A. Carter in the United States District Court for the Southern District of Florida. The Complaint seeks damages against the Company for the alleged wrongful termination of the Plaintiff, the former Chief Executive Officer and Chairman of the Board of Directors of the Company, pursuant to an Engagement Agreement and an Employment Agreement, breach of each such agreement, and for unpaid wages and unlawful retaliation.  The Complaint was served on February 26, 2016. The Response is due on March 17, 2016.  A scheduling order was entered by the Court on February 25, 2016, setting the deadline for the submission of a Joint Scheduling Report and a Joint Proposed Scheduling Order within twenty (20) days of the appearance of the Defendant. No other orders have been entered by the Court. 

On February 25, 2016, the Board of Directors of the Company appointed Thomas K. Equels, the current President of the Company, as the Company’s Chief Executive Officer. In that capacity, he is the principal executive officer of the Company.