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EARNINGS PER SHARE (Tables)
9 Months Ended
Sep. 30, 2013
EARNINGS PER SHARE [Abstract]  
Common shares excluded from calculating basic and diluted net loss per common share
Shares used in calculating basic and diluted net loss per common share exclude these potential common shares as of September 30, 2013 and December 31, 2012:

 
September 30, 2013
 
December 31, 2012
Warrants to purchase common stock (1)
5,757,420
 
2,041,165
Stock options to purchase common stock
1,014,907
 
158,409
Unvested restricted common stock
---
 
300
Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 (2)
3,766,316
 
5,617,974
Common stock issuable upon the assumed conversion of our convertible notes payable from June 2011 and July 2011 (3)
309,818
 
368,637
Common stock issuable upon the assumed conversion of our Series A preferred stock (4)(5)
---
 
1,002,634
Total
10,848,461
 
9,189,119

(1)
As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes.
(2)
The outstanding principal balance and the accrued and unpaid interest of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations.  For the purposes of this Table, we have assumed a conversion price of $0.35 per share and no ownership limitations.
(3)
The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively.  The accrued and unpaid interest for each convertible note payable may be converted, at the option of Mr. Gray, into shares of common stock at a conversion price based upon the average of the five trading days prior to the payment date, which for the purposes of this Table we have assumed to be September 30, 2013.
(4)
The outstanding Series A preferred stock and the accrued and unpaid dividends thereon are convertible into shares of the Company's common stock at the Company's option at any time after six-months from the date of issuance of the Series A preferred stock.  The conversion price for the holder is fixed at $0.70 per share with no adjustment mechanisms, resets, ratchets, or anti-dilution covenants other than the customary adjustments for stock splits.  For the purposes of this Table, we have assumed a conversion price of $0.70 per share.
(5)
On August 15, 2013, we provided notice to Ironridge for the redemption of all of our Series A Shares held by Ironridge, a total of 65 Series A Shares. An affiliate of Ironridge, the issuer of promissory notes held by us, due 7.5 years from the issue date, in the principal amount of $969,000, agreed to accept the cancellation of the promissory notes held by us as full and final payment for the redemption amounts of the Series A Shares.