Note 14—Subsequent Event

Subsequent to December 31, 2014, the Company commenced a private offering of securities through a private placement of units of restricted shares of common stock and warrants to purchase shares of its common stock. These shares carry certain restrictions typical of shares that have not been registered under the Securities Act of 1933, as amended. As of March 27, 2015, the Company has received subscriptions pertaining to approximately 840,000 shares of common stock, each of which includes a warrant to purchase an additional share of stock. As of such date, none of the subscription agreements have been accepted by the Company and, accordingly, none of these shares or warrants have been issued. There can be no assurance that these subscriptions will ever be accepted by the Company. The placement agent agreement requires us to pay fees of 13% of aggregate proceeds received from share sales and 5% of all amounts received upon the exercise of warrants and the placement agent will be issued warrants to purchase our shares of common stock equal to 10% of the total shares sold in the offering. The agreement with our current placement agent expires on April 15, 2015, but may be extended with both parties’ approval.