Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

11. Subsequent Events


The Company has evaluated subsequent events through the date which the condensed consolidated financial statements were available to be issued.


On April 19, 2018, Stephen Clarke resigned as president and chief executive officer and as a member of the Board. Mr. Clarke has agreed to serve as a consultant to the Company on an as-needed basis. As a result of Dr. Clarke’s resignation, the Company will be obligated to make key-man payments of $2 million and $1 million to Interstate Battery and Johnson Controls, respectively, payable, at the option of the Company, in cash or shares of the Company’s common stock, unless Interstate Battery or Johnson Controls, as the case may be, approves the successor to Dr. Clarke. See Note 10.


Dr. Clarke’s resignation as an officer the Company is regarded as a termination without cause under his employment agreement with the Company. Pursuant to his employment agreement, Dr. Clarke is entitled to one-time severance benefits that includes severance and benefits continuation expense of approximately $0.9 million paid out over a 2-year period in consideration of his execution of a customary release and separation agreement. Additionally, Dr. Clarke was granted an extension of the exercise period of his stock options upon termination from 90 days to 2 years. The expense related to the modification of these stock option awards is approximately $15,000.