XML 59 R48.htm IDEA: XBRL DOCUMENT v3.4.0.3
WARRANTS AND EMBEDDED DERIVATIVES (Details 2)
$ in Thousands
3 Months Ended
Mar. 31, 2016
USD ($)
shares
Balances, beginning of year 305,068,558
Balances, end of year 350,283,333 [1]
Number Of Warrants [Member]  
Balances, beginning of year 305,068,558
Issuance of warrants with January Term Loan 45,214,775
Periodic fair value adjustments | $
Balances, end of year 350,283,333
Warrant Liability [Member]  
Balances, beginning of year 54,412
Issuance of warrants with January Term Loan 8,571
Periodic fair value adjustments | $ $ 4,216
Balances, end of year 67,199
[1] As of March 31, 2016, the Company has 300,000,000 common shares authorized. As of March 31, 2016, there were 75,311,764 common shares issued and outstanding and the Company would need an additional 405,431,803 common shares to accommodate the exercise and conversion of all of the common stock options, warrants, convertible debt, and unvested restricted stock presently outstanding. Accordingly, the Company has an authorized share deficiency of 180,743,567 shares to accommodate all such exercise and conversion requests through the remaining unissued common shares. In order to increase the number of shares available to cover the authorized share deficiency, the Company would need either to (i) amend its articles of incorporation to increase the amount of its authorized common shares or (ii) effect a reverse stock split which would decrease the current number of shares issued and outstanding as well as the number of shares issuable upon exercise or conversion of its outstanding stock options, warrants and convertible debt. Either of these corporate actions would require shareholder approval. If the Company is not able to cure the authorized share deficiency by the point when holders of such options, warrants and convertible debt attempt to exercise or convert such securities and the Company no longer has common shares available to fill such exercise or conversion, the Company would be required to settle a portion of its warrant and derivative liabilities in cash which requires that these instruments continue to be classified as liabilities rather than equity instruments. However, as discussed in Note 9, 294,294,399 of the Company's outstanding warrants are held by Calm Waters which is currently restricted by contractual agreement from owning more than 4.99% of the Company's common stock through exercise of the warrants, convertible debentures and ownership of the Company's common stock.