Subsequent Events
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3 Months Ended |
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Mar. 31, 2013
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Subsequent Events [Abstract] | |
Subsequent Events |
NOTE 15 - Subsequent Events
Management has evaluated events occurring after the date of these financial statements through the date these financial statements were issued, other than disclosed below. There were no material subsequent events as of that date.
In April 2013, the Company sold 3,800,000 shares of common stock and issued 1,900,000 warrants and raised $950,000 in gross proceeds. In connection with the sale of these securities, the Company paid placement agent fees of $26,500, issued to the placement agent 68,000 warrants and issued 2,518,356 shares of common stock to investors who previously purchased shares of the Companys common stock as an inducement for the investors new investment and in consideration for dilution resulting from this offering.
On April 19, 2013, the Company and its co-defendants in that action entitled Daniel Fisher v. BioZone Pharmaceuticals, et al; U.S.D.C., ND Cal. Case No. C 12-03716 WHA (the Fisher Action) entered into a settlement resolving the Fisher Action. The Company, despite what it perceived as valid defenses to enforcement, agreed to honor, in full, the terms of Fishers Employment and Stock Purchase Agreements. The Company, inter alia, agreed to convey the total consideration for Fishers interest in BioZone Laboratories and other Company subsidiaries, as well as the balance of the consideration under Fishers Employment Agreement. In return, the Company is obtaining a dismissal of the Fisher Action, a full general release, and will release Fisher as against claims the Company had against him. Upon completion of the settlement agreement and Board approval of the same, the Company will disclose the complete settlement terms in a subsequent filing.
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