Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2013

4. Accounts Payable and Accrued Expenses

The Company’s management is required to estimate accrued expenses as part of the process of preparing financial statements. Accrued expenses include the following:


	December 31, 2013		December 31, 2012
Research and development expenses	$	470,824	$	1,339,851
Professional fees		201,146		735,990
General and administrative expenses		307,883		121,554
Compensation related expenses		75,885		81,003

	$	1,055,738	$	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 December 31, 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 December 31, 2013. While the fair value of the options will likely be lower than the 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 with the value of the options.