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P5Y P24M P22M P18M P24M P24M 170000 2008-04-30 2014-01-31 2012-03-31 2012-12-23 2012-03-31 2012-12-23 2014-12-31 100000 200000 32000 16800 50000 50000 50000 27500 27500 51243 50000 200000 1111112 320000 200000 1595239 96613 7232 0.0137 0.0033 0.0180 0.0033 0.0180 0.63 0.54 0.59 0.66 0.59 25839492 0.08 P8Y9M29D 244494 P16M Under the terms of the Company's agreement with investors in the October 2008 financing, 1,920,000 shares of common stock were the maximum number of shares allocated to the Company's existing shareholders at the time of the offering (also referred to as the original shareholders or the "Founders"). Since the total of the Company's fully diluted shares of common stock was greater than 1,920,000 shares, in order for the Company to proceed with the offering, the Board of Directors approved a reverse stock split of 1-for-1.2545. After this split was approved, additional options and warrants were identified, requiring a second reverse stock split in order to reach the 1,920,000 shares. The second reverse stock split on the reduced 1-for-1.2545 balance was determined to be 1-for-1.33176963. Taken together, if only one reverse stock split was performed, the number would have been a reverse stock split of 1-for-1.670705. On June 6, 2008, the Board of Directors approved the first reverse stock split. The authorized number of shares of common stock of 20,000,000 was proportionately divided by 1.2545 to arrive at 15,942,607. On October 20, 2008, the Board of Directors (i) approved the second reverse stock split pursuant to which the authorized number of shares of common stock of 15,942,607 was proportionately divided by 1.33177 to arrive at 11,970,994 shares and (ii) approved a resolution to increase the number of authorized shares of the Company's common stock from 11,970,994 to 40,000,000, which was approved by the Company's shareholders holding a majority of the shares entitled to vote thereon at a special meeting of shareholders held on December 3, 2008. 0.12 21138 300000 2500000 0.065 0.12 0.15 0.15 0.24 0.08 20000000 0.08 0.15 0.15 -713367 -2101525 -21392636 32664003 107824939 13955057 0 0 0 32664003 107824939 13955057 31736049 84210232 2209000 2390000 73000 44000 2282000 2434000 2282000 2434000 0 0 1.00 10242000 2017 560874 16800 100000 200000 32000 89300 122774 0 378599 0 0 0 0 0 156243 222356 471574 378599 378599 2010-06-12 2010-12-23 2009-10-26 2010-09-21 2011-01-01 2012-11-06 0.12 0.12 0.08 0.12 0.06 0.20 0.12 0.18 0.084 0.35 0.18 0.15 2013-04-06 0 26408 February 2013 February 2013 February 2013 February 2013 March 2013 36000 37000 38000 39000 3600 five years 17690 2018-01-31 0.35 0.05 0.50 0.05 0.50 0.05 0.50 0.05 0.50 0.05 0.50 0.46 0.01 0.65 0.01 0.65 0.01 0.65 0.01 0.65 0.01 0.65 1071847 1071847 -3453 169179 1145212 14946 -151118 166063 149757 19422 -21856 868772 -88290 14080 6293 147403 -4689 0 910 40419 -1562 681 78 12053 -724 0 3701 25014 -5571 2408 6083 30740 -6122 631 1338 20811 -44160 1622 870278 111652 1506 89796 97572 149007 0 1604 6293 0 40481 714 62 1624 33 12081 337 28 752 337 2408 539 6109 0 631 592 6714 0 53437 10615 54775 51815 479910 0.22 0.50 486564 6654 25000 3000000 30000 2000 46000 10000 0.20 0.2000 0.20 600000 156243 300000 84657 300000 300000 60000 4615385 4615385 42700000 600000 1546667 7500000 277778 0.09 30000 0.15 26500000 26500000 0.014 0.065 1562430 155000 2013-04-30 2013-08-31 (i) financing raising not less than $1 million, compensation of $75,000; (ii) a going private transaction, compensation of $200,000 and (iii) 3% of the gross proceeds of the NASDAQ underwriting, which payment shall under no circumstances be less than $200,000 or greater than $3,000,000. 25000 0.065 0 597282 0 15000 0 497902 0 15000 15000 156243 357163 53574 16000000 0.20 0.24 0.20 2000000 4000000 listing the Company's shares on NASDAQ pursuant to an underwritten offering of the Company's securities resulting in gross proceeds of between $5 million and $30 million then the Company shall deliver to Dr. Herschkowitz the following compensation: (A) $75,000 upon consummating the shell merger, (B) $150,000 upon consummating the qualifying financing round and (C) 3% of the gross proceeds of the NASDAQ underwriting, which payment shall under no circumstances be less than $200,000 or greater than $1,000,000. The Company shall reimburse Dr. Herschkowitz at his actual out-of-pocket cost for reasonable expenses incurred in connection with the shell transactions but in no event in an amount greater than $10,000. Founders shares, 1,000,000 pre-split 23,492 (40,000 pre-split) shares valued at $.0167 per share as compensation for loan guarantees by management Compensation for loan guarantees by management Conversion of convertible notes by management Investment, "October 2008 financing" Investment including 670 shares issued as a 10% finder's fee For payment of patent legal fees For vendor contractual consideration Employment agreements Investment Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008. The shares reduce by 1/3 yearly and are returned to the Company as the debt is paid. The Company purchased shares previously issued to a former officer equal to the cost of withholding taxes advanced by the Company. The value here represents the net pay from the transaction that was retained by the Company. The number of shares underlying options and warrants outstanding as of March 31, 2013 and March 31, 2012 are 84,210,232 and 31,736,049 respectively. The effect of the shares that would be issued upon exercise of such options and warrants has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. 21138 185299 0001446159bior:SokPartnersMember2012-12-31 240000 357282 13110 00014461592013-04-012013-04-30 2013-08-31