Note 14 – Subsequent Events

On March 15, 2018, the Company issued 310,527 shares of common stock to executives for their accrued and unpaid bonuses awarded May 31, 2017. The stock had a grant date fair value of $0.57 per share, as determined on date of grant, by the Company’s Compensation Committee. Out of the total 310,527 shares of common stock issued, 159,011 were tendered for payment of income taxes and will be recorded as treasury stock.

On March 23, 2018, the Company completed its Warrant Tender Offer, as fully described in Note 5, expired. Upon completion of the Warrant Tender Offer, 77 Original Warrants to purchase up to 3,027,263 shares of common stock had been validly tendered and not withdrawn in the Warrant Tender Offer, for gross cash proceeds to the Company of approximately $1.5 million. In connection with the Offer, the Company paid a cash fee of approximately $73,000 to the soliciting agent.