Have a look at Paragraph 2 of those minutes from 11/8/08. You'll see:
"The first order of business was a discussion of the proposal by Dr. Swift to reconvey his ownership of the license for 5hmf with Virginia Commonwealth University (the "License") to the Company. Mr. Goldsmith summarized that in April, 2008 Dr. Swift had entered into a loan agreement ("Prior Loan Agreement") in which he had advanced $28,676 to the Company, posted collateral for a $118,255 letter of credit, funded $3000 for the origination of the letter of credit, interest on the monies advanced and drawn down on the letter of credit and the Company agreed to pay a fee of 20% of the letter of credit amount to Dr. Swift."
So he gave them $28,676 with one hand and they agreed to pay him back $23,651. Then he got a letter of credit from the bank to help with the D&O Insurance and if they didn't pay him back in 90 days he ends up with 5-HMF. They hadn't paid a bill in months, but yet they felt it was good business to hand over one of two assets to this guy...
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