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Note 11. Subsequent Events

On February 18, 2014 the company renegotiated the terms of one of the $50,000 convertible notes, specifically the one dated February 27, 2012. The maturity date was extended to December 1, 2014 and the conversion price has been reduced to $0.19 per share. The interest rate has been amended to 3.25% from February 27, 2014. This will be treated as a note extinguishment in accordance with ASC 470-50.

On February 28, 2014 the company renegotiated the terms of the $100,000 convertible note dated February 25, 2012. A payment was made in the amount of $25,000 on February 28, 2014, reducing the principal to $75,000. Another principal payment of $25,000 will be made on August 1, 2014 and $50,000 on December 1, 2014. Beginning February 25, 2014 through the date of final payment the interest rate was raised to 3.25%. The conversion price for all of the convertible options was reduced to $0.19 per share. This will be treated as a note extinguishment in accordance with ASC 470-50.

On March 6, 2014, a new Chief Academic Officer was named, Dr. Cheri St. Arnauld. She will receive a base salary of $120,000. After the earlier of the six month period and the Adjusted EBITDA milestone is met, the base salary shall be increased to $240,000. Additionally, she was granted 500,000 five-year stock options (exercisable at $0.19 per share), which vest in three equal increments on March 1, 2015, 2016 and 2017, subject to continued employment on each applicable vesting date.

On March 6, 2014, the Academic President of the University announced his retirement effective March 31, 2014 and will assume the title of President Emeritus. From April 1, 2014 to June 30, 2014, he will provide consulting services on an as-needed basis.

On March 10, 2014, several members of the Board of Directors contributed $600,000 in exchange for 3,157,895 shares of common stock and 3,157,895 warrants at $0.19 per share.

On March 11, 2014, the Company appointed Gerard Wendolowski as Chief Operating Officer and Janet Gill as Executive Vice President of the Company. Additionally, Ms. Gill was appointed interim Chief Financial Officer to replace Michael Matte who resigned to pursue other interests. Mr. Matte also entered into a Consulting Agreement with the Company where he agreed to provide part-time services during the period November 1, 2014 through April 30, 2015 in exchange for $150,000.