Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2013

3. Accounts Payable and Accrued Expenses

The Company’s accounts payable and accrued expenses consisted of the following:


	September 30, 2013		December 31, 2012
Research and development expenses	$	695,724	$	1,339,851
Professional fees		664,326		735,990
General and administrative expenses		247,800		121,554
Compensation related expenses		74,843		81,003

	$	1,682,693	$	2,278,398

On February 15, 2013, the Company entered into Settlement Agreements with Michael Mullen and William Guinness, both members of the Board of Directors of the Company, pursuant to which the Company agreed to satisfy certain outstanding obligations to those individuals which, in aggregate, totaled $167,400 by issuing fully vest options to purchase a total of 167,400 shares of the common stock of Alseres Neurodiagnostics, Inc. ( a wholly owned subsidiary of the Company) at a purchase price to be established by the Company coincident with the closing of an equity financing for Alseres Neurodiagnostics, Inc. The options must be exercised, in whole or in part on or before February 28, 2018. The common stock issued pursuant to the exercise of the options will bear all appropriate restrictive legends on resale or disposition of the common stock. As of September 30, 2013 the options had not yet been issued nor is the closing of an equity financing certain to occur therefore the associated liability of $167,400 remains outstanding and is recorded in accrued expenses on the balance sheet at September 30, 2013. While the fair value of the options will likely be lower than value of the current liability, the Company has determined it is not appropriate to recognize a gain at this time given the uncertainty of these events and the variability associated the with valuation of the options.