COMMON STOCK

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 7. COMMON STOCK

 The Company has authorized 150,000,000 shares of Common Stock, of which 60,244,669 and 44,373,461 shares were issued and outstanding as of March 31, 2013 and December 31, 2012, respectively.

January 2013 Financing

 On January 31, 2013 and February 1, 2013, the Company entered into underwriting agreements (collectively, the “Underwriting Agreements”) with Aegis Capital Corp., as a representative of both underwriters (collectively, the “Underwriters”), with respect to the issuance and sale in an underwritten public offering by the Company of an aggregate 15,678,333 shares of the Company’s Common Stock (including 2,045,000 shares sold pursuant to the over-allotment option), at a price to the public of $0.75 per share.

 The net proceeds to the Company, after deducting the underwriting discount and other offering expenses payable by the Company, from the sale of 15,678,333 shares in the offering were approximately $10,626,000.  Subsequent to the offering, the Company used a portion of the net proceeds of the offering to pay off the Promissory Note issued to Platinum-Montaur Life Sciences, LLC (“Montaur”) in connection with the $20 million non-revolving draw credit facility with Montaur. The Note will mature on August 31, 2017.  See Note 13.

Stock Issued in Exchange for Services

 During the three months ended March 31, 2013 and 2012, the Company issued 74,500 and 12,000 shares, respectively, of Common Stock with a fair value of $92,745 and $22,800, respectively, to vendors in exchange for their services.  Expenses associated with these transactions were included in Selling, General and Administrative Expenses in the Consolidated Statements of Operations.