Subsequent Events

3 Months Ended

Mar. 31, 2015

11. Subsequent Events

Second Amendment to the SWK Credit Agreement

On April 3, 2015 (the “Second Amendment Closing Date”), the Company entered into a second amendment (the “Second Amendment”) to the SWK Credit Agreement. Pursuant to the Second Amendment, the Company drew the remaining $2,000,000 of the Loan Commitment Amount, thereby increasing the total amount advanced to the Company under the SWK Credit Agreement to $12,000,000. The maturity date for the term loan under the SWK Credit Agreement remains July 30, 2020, or such earlier date on which the Loan Commitment Amount is terminated, pursuant to the terms of the SWK Credit Agreement.

In addition, on the Second Amendment Closing Date, the Company issued warrants to purchase an aggregate of 2,702,702 shares of Common Stock (the “Second Amendment Warrants”) to the Lenders advancing the term loan to the Company on the Second Amendment Closing Date. The Second Amendment Warrants are exercisable up to and including April 3, 2021 at an exercise price of $0.37 per share, subject to adjustment. A Lender may exercise its Second Amendment Warrant on a cashless basis at any time. In the event a Lender exercises its Second Amendment Warrants on a cashless basis, the Company will not receive any proceeds. The exercise price of the Second Amendment Warrants is subject to customary adjustments for stock splits, stock dividends, recapitalizations and the like.