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Note 13 - Subsequent Events
3 Months Ended
Mar. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

13.           Subsequent Events


The Company has evaluated all events or transactions through the date of this filing. During this period the Company identified the following events for disclosure:


On April 14, 2014, the Company entered into an Amendment and Waiver Agreement (the “April Amendment and Waiver Agreement”) to the Securities Purchase Agreement dated February 22, 2011, and as further amended in July 2012, January 2013, February 2013 and September 2013. The April Amendment and Waiver Agreement reestablished the availability and extended the period of time in which the remaining funds under the third closing (up to $750,000) could be sold. The April Amendment and Waiver Agreement also waived certain corporate milestones and conditions to necessary to complete the third closing and waived any defaults under the terms of the Purchase Agreement.


In connection with the April Amendment and Waiver Agreement, the Company issued and sold to GCP IV LLC (i) a 5% Senior Secured Convertible Debenture of the Company (the “April 2014 Notes”) with a principal amount of $250,000, and (ii) a Common Stock Purchase Warrant to purchase up to 4,166,667 shares of the Company’s common stock at an initial exercise price of $0.09 per share (the “April 2014 Warrants”), for a total purchase price of $250,000.


The terms and conditions of the April 2014 Notes are substantially similar to those of the previously issued tranches of convertible notes, as described in Note 10 to our Condensed Consolidated Financial Statements.


The April 2014 Warrants are exercisable for a period of five years at an exercise price of $0.09 per share. The April 2014 Warrants may be exercised on a cashless basis if there is no effective registration statement registering the Warrant Shares. The exercise price is adjustable for certain dilutive issuances, including issuances of securities at an effective price per share lower than the exercise price, rights offerings, mergers or sales of assets and certain other customary anti-dilution provisions.


On May 9, 2014, in relation to the proposed transaction described below and in Note 1 to our Condensed Consolidated Financial Statements, the Company entered into an agreement with a certain holder of outstanding convertible notes and warrants, in which the Company agreed to sell warrants to purchase up to 940,189 of common stock at a per share exercise price of $0.53 per share. As part of the agreement, the proceeds received will be held in escrow until the closing of a proposed private placement transaction which would occur subsequent to the proposed merger transaction described in Note 1. The final issuance of the warrants is contingent upon the consummation of this proposed merger transaction.


On May 14, 2014, the Company filed a proxy statement with the Securities and Exchange Commission describing the form of a proposed merger transaction, as described in Note 1 to our Condensed Consolidated Financial Statements.