SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Issuance of Series B Preferred Stock and Series B1 Preferred Stock Shares In-Kind

Pursuant to the terms of our Credit Agreement with our senior lender, we are prohibited from paying dividends in cash and therefore we paid the accrued dividends on our Series B Preferred Stock and Series B1 Preferred Stock, which accrued as of June 30, 2016, in-kind by way of the issuance of 62,822 restricted shares of Series B Preferred Stock pro rata to each of the then holders of our Series B Preferred Stock in July 2016 and the issuance of 97,875 restricted shares of Series B1 Preferred Stock pro rata to each of the then holders of our Series B1 Preferred Stock in July 2016. If converted in full, the 62,822 shares of Series B Preferred Stock would convert into 62,822 shares of common stock and the 97,875 shares of Series B1 Preferred Stock would convert into 97,875 shares of common stock.

Conversion of Series C Preferred Stock

On August 1, 2016, the holder of our 44,000 outstanding shares of Series C Convertible Preferred Stock, converted 12,432 of such shares into 1,243,200 shares of our common stock (each share of Series C Convertible Preferred Stock converts into 100 shares of common stock at the option of the holder thereof). We claim an exemption from registration provided by Section 3(a)(9) of the Securities Act for such issuance, as the security was exchanged by us with our existing security holder in a transaction where no commission or other remuneration was paid or given directly or indirectly for soliciting such exchange. As a result of the conversion, there are 31,568 outstanding shares of Series C Convertible Preferred Stock, which if converted in full, would convert into 3,156,800 shares of common stock.