Subsequent Events

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Subsequent Events

16.   Subsequent Events

Subsequent to December 31, 2011, the Company’s Chief Financial Officer was issued 92,858 shares of common stock per a cashless exercise of a stock option to purchase 105,450 shares of common stock.

Subsequent to December 31, 2011, the Company issued 25,823 shares of Series B convertible preferred stock valued at $244,001 to the Series B convertible preferred stock owners as payment in kind for dividends.

Subsequent to December 31, 2011, the Company issued an aggregate of 38,891 shares of common stock at a per share price of $4.50 to investors in a private offering.

Subsequent to December 31, 2011, the Company issued 8,332 shares of common stock upon the exercise of options to purchase common stock for $2.80 to $3.60 per share with aggregated net proceeds of $26,662.

Subsequent to December 31, 2011, the Company granted four Directors options to purchase an aggregate of 60,000 shares of common stock with an exercise price of $6.99 for an aggregate grant date fair value of $391,028 under a previously approved option plan. The options vest over a three year period and have a term of ten years.

Subsequent to December 31, 2011, the Company granted employees options to purchase an aggregate of 30,000 shares of common stock with an exercise price of $6.99 for an aggregate grant date fair value of $195,514 under a previously approved option plan. The options vest over a three year period and have a term of ten years.

Subsequent to December 31, 2011, the Company received advances from certain shareholders aggregating $595,000 (of which $230,000 has been repaid as of the date of this report).

Management has evaluated subsequent events or transactions occurring through the date on which the consolidated financial statements were issued.