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Subsequent Events
3 Months Ended
Apr. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

10.        Subsequent Events

 

Common Stock Financing

On June 4, 2012, we issued and sold an aggregate of 2,000,000 shares of our common stock to three separate investors at a price of $0.25 per share, resulting in approximately $500,000 in aggregate proceeds. The shares have not been, nor will they be, registered under the Securities Act or any state securities laws and have been issued in reliance on an exemption from the registration requirements of the Securities Act afforded by Section 4(2) thereof.

 

Termination of Purchase Agreements with Lincoln Park

On May 18, 2012, we delivered notice to Lincoln Park of our termination of the $7.5M Purchase Agreement and the $2.5M Purchase Agreement. The termination notice is described in more detail in our Current Report on Form 8-K, which we filed with the SEC on May 21, 2012. There have been, and there will be, no sales of our common stock to Lincoln Park under the either purchase agreement after the date of that notice.

 

NASDAQ Delisting Appeal

As previously disclosed, on September 16, 2011, we received a deficiency letter, or the Notification Letter, from the NASDAQ Stock Market, or NASDAQ, notifying us that our common stock no longer met NASDAQ’s requirements for continued listing on the NASDAQ Capital Market under NASDAQ Listing Rule 5550(a)(2), or the Bid Price Rule, because the minimum bid price of our common stock did not equal or exceed $1.00 at least once over a period of 30 consecutive trading days prior to the date of the Notification Letter. Under NASDAQ Listing Rule 5810(c)(3)(A), we were afforded 180 calendar days, or until March 14, 2012, to regain compliance with the Bid Price Rule. We did not regain compliance with the Bid Price Rule by such date because the closing bid price of our common stock did not meet or exceed $1.00 per share for at least 10 consecutive business days during the applicable 180-day period. Accordingly, on March 15, 2012, we received from NASDAQ a second deficiency letter, or the Second Notification Letter, notifying us that our common stock continues to be at risk of delisting from the NASDAQ Capital Market. As described in the Second Notification Letter, we were not eligible for an additional grace period to regain compliance with the Bid Price Rule because, based on current market information and our stockholders’ equity as reported in our Quarterly Report on Form 10-Q for the period ended October 31, 2011, we do not satisfy all applicable requirements for initial listing on the NASDAQ Capital Market under NASDAQ Listing Rule 5505.

 

In accordance with NASDAQ’s applicable procedures, we appealed NASDAQ’s delisting determination by submitting to NASDAQ a written plan of compliance, which included our commitment to implement a reverse stock split of our common stock, and appearing before a NASDAQ Hearings Panel, or the Panel, at an oral hearing that took place on May 17, 2012. According to applicable NASDAQ guidance, we expect that we will receive a written decision from the Panel regarding our appeal within 30-45 days after the date of the hearing. If the Panel reaches a negative decision, we could choose to appeal the Panel’s decision through a further appeal process with the NASDAQ Listing and Hearing Review Council, but whether or not we chose to pursue such an appeal, trading of our common stock on the NASDAQ Capital Market would be suspended two business days after the date of the negative decision.

 

As we have not yet received the Panel’s decision, we have not determined whether or not we would pursue an appeal of a decision to delist our common stock. Even if we decided to pursue a further appeal, our efforts could be unsuccessful and our common stock could be delisted from the NASDAQ Capital Market.