7. SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

7. SUBSEQUENT EVENT

2013 Annual Meeting of Stockholders

At the 2013 annual meeting of stockholders of the Company held on August 8, 2013 (the “2013 Annual Meeting”), the holders of the Company’s common stock voted to approve an amendment to the Company’s Certificate of Incorporation to authorize the classification of the Company’s Board of Directors into three classes of directors with staggered three-year terms of office, to permit stockholder action only at a duly called meeting and to prohibit stockholder action by written consent.

The votes on the related proposals were as follows:

Proposal	For	Against	Abstain	Broker Non-Votes
To approve an amendment to the Company’s Certificate of Incorporation to authorize the classification of the Company’s Board of Directors into three classes of directors with staggered three-year terms of office	5,373,978	9,993	0	N/A
To approve an amendment to the Company’s Certificate of Incorporation to permit stockholder action only at a duly called meeting and to prohibit stockholder action by written consent	5,383,971	0	0	N/A

The stockholders further voted to elect each of the following seven directors to serve on the Company’s Board of Directors as Class I, Class II and Class III directors for the following terms, in each case until their successors are elected and qualified:

Class I Directors - Term expiring 2014

Director	Votes For	Votes Withheld	Broker Non-Votes
Dov A. Goldstein, M.D.	5,383,971	0	N/A
Bryant E. Fong	5,383,971	0	N/A

Class II Directors - Term expiring 2015

Director	Votes For	Votes Withheld	Broker Non-Votes
Steven A. Elms	5,383,971	0	N/A
Eric I. Richman	5,383,971	0	N/A
Adam S. Grossman	5,383,971	0	N/A

Class III Directors - Term expiring 2016

Director	Votes For	Votes Withheld	Broker Non-Votes
Jerrold P. Grossman, D.P.S.	5,383,971	0	N/A
Lawrence P. Guiheen	5,383,971	0	N/A

Finally, the Company’s stockholders voted on the proposal to ratify the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2013, as follows:

Proposal	For	Against	Abstain	Broker Non-Votes
To ratify the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2013	5,383,971	0	0	N/A

Amendment to Securities Purchase Agreement

On August 12, 2013, the Company entered into an amendment to its securities purchase agreement, dated as of February 13, 2012.  The amendment serves to extend the period during which the Company must use commercially reasonable efforts to complete a financing transaction (the "First Follow-On Financing") pursuant to which it would sell common stock or common stock equivalents resulting in gross proceeds of at least $5 million, from August 13, 2013 to December 24, 2013. 

The counterparties signing the amendment were Burrill Capital Fund IV, LP ("Burrill"), Aisling Capital II, LP ("Aisling") and Jerrold and Adam Grossman (together with their related entities, the "Grossman Group").   The Company's director Steven Elms is the managing member of a control person of Aisling and the Company's director Dr. Dov Goldstein is a partner at Aisling.  The Company's director Bryant Fong is a managing director of the control person of Burrill.  Adam Grossman is the Company's President and Chief Executive Officer and a director.  Jerrold Grossman is a director of the Company.

Under the securities purchase agreement, as amended, in the event the Company is unable to raise at least $5 million in the First Follow-On Financing, then Burrill, Aisling and the Grossman Group will subscribe to purchase $1.5 million, $2.0 million and $0.5 million, respectively, which amounts will decline proportionately if the Company raises more than $1 million in addition to the amounts contributed by such investors.