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Evaluation of Subsequent Events
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 17. Evaluation of Subsequent Events

 

On April 3, 2013, the Company closed an underwritten public offering of 8,300,000 units, consisting of one share of common stock and a warrant to purchase 0.50 of a share of common stock, which included 1,245,000 units pursuant to the exercise in full of the over-allotment option granted to the underwriter. After the underwriting discount and estimated offering expenses payable by the Company, the Company received net proceeds of approximately $3.7 million. The warrants are exercisable on the earlier of the first anniversary of the date of issuance, or the day after the date on which the Company files a certificate of amendment increasing its number of authorized shares of Common Stock, and expire on the fifth anniversary of the date such amendment is filed. The exercise price and number of shares of Common Stock issuable upon exercise of the warrants will be subject to adjustment in the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization or similar transaction, among other events as described in the warrants. In addition, the warrants contain full ratchet anti-dilution protection upon the issuance of any common stock, securities convertible into common stock, or certain other issuances at a price below the then-existing exercise price of the warrants, with certain exceptions. The Company agreed with the investors in the Offering to hold a stockholders’ meeting by July 31, 2013 to seek stockholder approval for an increase in the authorized shares of its Common Stock. If the Company is unable to obtain the required stockholder approval by the day following the first anniversary of the issuance date, the Company will be required to pay liquidated damages of $1,000,000.

 

Subsequent events have been evaluated through the date the accompanying condensed consolidated financial statements were issued.