Quarterly report pursuant to Section 13 or 15(d)

10. Subsequent Events

10. Subsequent Events
9 Months Ended
Dec. 31, 2013
Subsequent Events [Abstract]  
10. Subsequent Events

Guarantee of Severance for Hojabr Alimi


On March 21, 2013, the Company’s subsidiary, Ruthigen, Inc., entered into an employment agreement with an effective date of February 4, 2013 (the “Employment Agreement”) with Hojabr Alimi to reflect his new role and responsibilities as Chief Executive Officer of Ruthigen, Inc. Mr. Alimi is the former Chief Executive Officer of the Company.


On January 31, 2014, the Company approved the guarantee of certain severance payments to be made to Mr. Alimi. Pursuant to the terms of the guarantee of severance, if (i) the proposed Ruthigen initial public offering does not occur, (ii) Mr. Alimi ceases to be employed by Ruthigen because Ruthigen is bankrupt or otherwise insolvent, and (iii) Ruthigen severance benefits are due to Mr. Alimi under the Employment Agreement but Ruthigen lacks the financial resources to pay same, then the Company has agreed to pay Mr. Alimi a lump sum payment of $385,000; provided that such severance payment obligation is expressly subject to the same terms and conditions as apply to Ruthigen’s payment thereof as set forth in the Employment Agreement.


All other terms of Mr. Alimi’s employment will continue as described in the Employment Agreement.