2.4.0.8019 - Disclosure - Common Stock Purchase Warrantstruefalsefalse1false
falsefalseContext_6ME__30-Jun-2013http://www.sec.gov/CIK0001355839duration2013-01-01T00:00:002013-06-30T00:00:001true
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2us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel| 1falsefalsefalse00<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">12. Common Stock Purchase Warrants </font></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In January 2011, we completed an equity financing that raised gross proceeds of $8,500,000 from the issuance of 4,250,000 shares of common stock at a price of $2.00 per share and warrants to purchase an aggregate of 2,125,000 shares of common stock.  The warrants are exercisable any time on or before January 19, 2016 and have an exercise price of $2.50 per share.  We received $7,915,700 in net proceeds from the equity financing after deducting offering expenses of $584,300.  The exercise price of the warrants and number of shares of common stock to be received upon the exercise of the warrants are subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions.</font></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">We also issued warrants to purchase 255,000 shares of our common stock to the placement agent and our advisors in January 2011 in connection with the equity financing as consideration for their services.  These warrants have the same terms, including exercise price, registration rights and expiration, as the warrants issued to the investors in the equity financing.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Warrant Liability</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In connection with the issuance of these warrants, the Company recorded a warrant liability on its Consolidated Balance Sheet based on the estimated fair value of the warrants at the issuance date.  The warrants are valued at the end of each reporting period with changes recorded as mark-to-market adjustment on warrant liability on the Company’s Consolidated Statement of Operations.  The fair value of these warrants was $445,075<font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font>and $1,616,325 at June 30, 2013 and December 31, 2012, respectively, based on a model developed with the assistance of an independent third-party valuation expert.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The mark-to-market income on these warrants was $70,275 and $117,125 for the three months ended June 30, 2013 and June 30, 2012, respectively, and $1,171,250 and ($1,171,250) for the six months ended June 30, 2013 and June 30, 2012, respectively, and was not presented within loss from operations.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Common Stock Issued for Warrants Exercised</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In April 2011, we issued 37,500 shares of our common stock and received net proceeds of $88,125 after an investor exercised warrants at an exercise price of $2.50 per share.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The following table summarizes warrant activity for the six months ended June 30, 2013:</font></div>
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<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Number of</font></div>
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Warrants</font></div>
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<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Weighted</font></div>
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style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Average</font></div>
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Exercise Price</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Stock Warrants:</font></div>
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<td align="left" valign="top" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<td align="left" valign="top" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Outstanding at December 31, 2012</font></div>
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<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,342,500</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></div>
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<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2.50</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div>
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<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></div>
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<td align="left" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td style="text-align: right;" valign="top" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercised</font></div>
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<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></div>
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<td align="left" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<td align="left" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td style="text-align: right;" valign="top" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited</font></div>
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width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 2px solid;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="right" style="border-bottom: black 2px solid;" valign="top" width="9%">
<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></div>
</td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 2px solid;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td style="border-bottom: black 2px solid; text-align: right;" valign="top" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<td align="left" style="padding-bottom: 2px;" valign="bottom" width="76%">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Outstanding at June 30, 2013</font></div>
</td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 2px solid;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="right" style="border-bottom: black 2px solid;" valign="top" width="9%">
<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,342,500</font></div>
</td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 2px solid;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="right" style="border-bottom: black 2px solid;" valign="top" width="9%">
<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2.50</font></div>
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<td align="left" style="padding-bottom: 2px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Warrants exercisable at June 30, 2013</font></div>
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<td align="left" style="padding-bottom: 4px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 4px double;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="right" style="border-bottom: black 4px double;" valign="top" width="9%">
<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,342,500</font></div>
</td>
<td align="left" style="padding-bottom: 4px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="padding-bottom: 4px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
<td align="left" style="border-bottom: black 4px double;" valign="top" width="1%">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></div>
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<td align="right" style="border-bottom: black 4px double;" valign="top" width="9%">
<div align="right" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2.50</font></div>
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<td align="left" style="padding-bottom: 4px;" valign="top" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>falsefalsefalse | nonnum:textBlockItemTypenaThe entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details.No definition available.false0
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