Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

6. Related Party Transactions:

On December 30, 2009, the Company entered into an Emezine™ Settlement Agreement (the "Settlement Agreement") with Accentia Biopharmaceuticals, Inc., a related party ("Accentia"), Arius One and Accentia Pharmaceuticals, Inc. f/k/a TEAMM Pharmaceuticals Inc., a subsidiary of Accentia. Pursuant to the Settlement Agreement, the Company has received a warrant to purchase 2 million shares of common stock of Accentia's majority-owned subsidiary, Biovest International, Inc. ("Biovest"), from Accentia. Such warrant has an exercise price equal to 120% of the closing bid price of Biovest's common stock as of the date the bankruptcy court overseeing Accentia's Chapter 11 reorganization entered a final order authorizing Accentia to carry out the Settlement Agreement, which was $0.89 per share. During the three months ended March 31, 2011, the stock price of Biovest's common stock decreased, resulting in a derivative loss of $0.6 million which is included within the derivative loss in the accompanying condensed consolidated statement of operations. During the three months ended March 31, 2012, the stock price of Biovest's common stock increased, resulting in a derivative gain of $0.3 million. This derivative gain partially offsets the overall derivative loss that is in the accompanying condensed consolidated statement of operations.