SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2014

NOTE 9 – SUBSEQUENT EVENTS

From October 1, 2014 through November 7, 2014, we sold an aggregate of 2,520,612 shares of common stock pursuant to the ATM for an aggregate of approximately $26.6 million in gross proceeds at an average selling price of $10.57 per share. Net proceeds were approximately $26.1 million after deducting commissions and other transactions costs.

On October 3, 2014, we entered into a Desk Space Agreement (the “Desk Agreement”) with Coronado Biosciences, Inc. (“CNDO”), to occupy approximately 40% of the New York, NY office space recently leased by CNDO. This Desk Agreement requires us to pay our respective share of the average annual rent and other costs of the 15 year lease. Based on the percentage, we approximate we will have average annual rental obligations of $1.1 million. CNDO does not expect to take possession of the space until late 2015 or early 2016. Michael S. Weiss, our Executive Chairman and Interim Chief Executive Officer, is on the board of directors and is Executive Vice Chairman, Strategic Development of CNDO.

In connection with the Desk Agreement, we paid $80,000, which was recorded in other current assets in the accompanying Condensed Consolidated Balance Sheet as of September 30, 2014. Also in connection with this lease, in October 2014 we agreed to pledge $0.6 million to secure a line of credit as a security deposit for the Desk Agreement.