Subsequent Events

Rights Offering

On November 12, 2015, the Company filed a registration statement on Form S-1 with the SEC, which disclosed the Company’s intention to commence a rights offering of the Company’s common stock. The Company made the rights offering by distributing subscription rights to shareholders owning Company common stock on the record date. The record date for the offering was December 24, 2015, with an expiration date of January 25, 2016. The Registration Statement under the Securities Act of 1933, as amended, to which the rights offering related was declared effective on December 18, 2015.

Each subscription right entitled a shareholder to purchase shares of the Company’s common stock in the offering on a pro rata basis and included an oversubscription right to allow a shareholder that had exercised all of its basic subscription rights to purchase, again on a pro rata basis, any shares subject to the offering but not subscribed for by the shareholders under their basic subscription rights. The Company raised $3.5 million through the rights offering and issued 39,026,839 shares at a price of $.09 per share.

Additional Equity Contributions

On March 28, 2016, the Company received $1,200,000 in additional equity by issuing 10,000,000 shares of its common stock, $0.04 par value, to 200 NNH, LLC, (the "Investor") a new private investor, which will be used to fund working capital. Pursuant to the Stock Purchase Agreement, there is a lock-up period of 18 months, during which time the Investor cannot sell the shares acquired. The Investor also has the right to send a representative to meetings of the Company's Board of Directors as a non-voting observer for so long as the Investor owns at least 5% of the Company's outstanding shares.

The following table provides unaudited pro forma results to show the effect of the additional equity raised on Cash and Stockholder's equity:



	December 31, 2015			Additional Equity Raised		Pro Forma including Additional Equity
(in thousands)
Cash	$	2,035		$	4,712	$	6,747

Stockholder's equity:
Common stock, par value $.04 per share; Authorized: 240,000,000 shares; Issued: 78,025,998 shares; Outstanding: 78,016,603 shares, at December 31, 2015: 117,052,837 issued and 117,043,442 outstanding shares, as adjusted	3,121			1,961		5,082
Additional paid-in capital	156,195			2,751		158,946
Accumulated deficit	(159,028		)	—		(159,028		)
Less: Treasury stock, at cost; 9,395 shares at December 31, 2015	(71		)	—		(71		)
Total stockholders’ equity	$	217		$	4,712	$	4,929