Nexeon MedSystems, Inc. (NXNV) acquired Nexeon MedSystems, Inc. (NXDE) on February 16, 2016. In exchange for 100% of the issued and outstanding preferred stock of the NXDE, immediately prior to the closing of the merger, NXNV issued 1.66 million shares of common stock to the preferred stockholders of NXDE. As a result of the merger, the stockholders of NXDE acquired 9.67% of NXNV's issued and outstanding common stock. All NXDE shares of Common Stock, Options, and Deferred Compensation Units were canceled. In addition, the merger agreement provides for the conversion of $0.65 million of debt and $0.38 million of accrued interest relating to the debt of NXDE under the provisions of a private placement of the NXNV and provides for a Royalty agreement with the shareholders of NXDE. Also pursuant to the merger, NXNV shall pay a 3% royalty to a limited liability company (NXDE LLC) formed in connection with the merger (of which the former NXDE shareholders are members) on Net Product Sales derived by NXNV's, or its affiliates’ or licensees’, commercialization of patents and intellectual property acquired by NXNV through the merger. Nexeon MedSystems, Inc. (NXNV) completed the acquisition of Nexeon MedSystems, Inc. (NXDE) on February 16, 2016.