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Short-term notes payable
12 Months Ended
Dec. 31, 2012
Short-term notes payable [Abstract]  
Short-term notes payable

7. Short-term notes payable:

In February and March 2012, the Company borrowed $25 and $100 from Phoenix Venture Fund LLC, respectively, at 10% per annum in the form of demand notes. All principal and accrued interest was repaid in cash in the amount of $132 in September 2012.

In April 2012, the Company entered into the April 2012 Purchase Agreement with the April 2012 Investors, and issued the April 2012 Notes for $1,000, receiving $982 in cash, net of expenses of $17. In connection with the issuance of the notes, the Company recorded a discount on notes for $64, as the result of the conversion of the notes in November 2012, the discount was fully amortized to interest expense. The April 2012 Notes had an interest at the rate of 10% per annum and a maturity date of April 22, 2013. The April 2012 Notes automatically converted into shares of Series D-2 Preferred Stock at the Final Closing. In connection with the issuance of the April 2012 Notes, the Company also issued to the April 2012 Investors warrants to purchase 5,000 shares of Common Stock at an exercise price of $0.05 per share. The April 2012 Warrants are exercisable for a period of three years from the date of issue. The company ascribed a value of $47 to the April 2012 Warrants, which was recorded as a discount to notes payable and as a derivative liability. In connection with the April 2012 Purchase Agreement, the Company paid $17 in consulting fees and issued an aggregate of 349 warrants at an exercise price of $0.05 per share to two consultants. These warrants are exercisable for three years from the date of issue, and the Company ascribed to them a value of $3, using a modified Black Scholes pricing model with the following assumptions: risk free interest rate of 0.40; expected life of three years; expected volatility of 213%; and a dividend yield of zero. The related warrant value was recorded as a professional service fee expense and as a derivative liability. The April 2012 Notes and accrued interest was automatically converted into shares of Series D-2 Preferred Stock at a price of $1.00 per share upon the consummation of the Final Closing, which occurred on November 15, 2012 for $1,057.

In August and September 2012, the Company borrowed $50 and $50 from Phoenix Banner Holdings LLC, respectively, at 10% per annum in the form of demand notes. All principal and accrued interest was repaid in cash in the amount of $102 from the proceeds of the November 2012 closing.

In September 2012, the Company entered into the September 2012 Subscription Agreements with the September 2012 Investors. Under the terms of the September 2012 Subscription Agreements, the September 2012 Investors purchased approximately $1,103 of September 2012 Notes, and, subject to the satisfaction of certain closing conditions, agreed to purchase at the Final Closing approximately 1,103 shares of Series D-2 Preferred Stock at a purchase price of $1.00 per share. The Company received $778 net of expenses in cash for the September 2012 Notes, and proceeds of $967net of offering costs of $115 for 1,082 of Series D-2 Preferred Stock at the Final Closing. The September 2012 Notes had an interest at the rate of 10% per annum, and a maturity date of December 31, 2012. The September 2012 Notes and accrued unpaid interest were converted into 1,121 shares of Series D-2 Preferred Stock at a price of $1.00 per share upon the consummation of the Final Closing, which occurred on November 15, 2012. The Series D-2 Preferred Stock is convertible into shares of the Company's Common Stock at a conversion price of $0.05 per share (subject to adjustment). The Final Closing was subject to stockholder approvals and the satisfaction of customary closing conditions. A portion of the proceeds from the September 2012 Notes was used to repay approximately $225 in demand notes to a related party and an employee of the Company, and for working capital and general corporate purposes in the ordinary course of business. In connection with the September 2012 Subscription Agreements, the Company, after the Final Closing, the Company issued an aggregate of 294 warrants to four consultants and 3,000 warrants to Phoenix and as a finder's fee in connection with the financing at an exercise price of $0.05 per share and recorded a derivative liability in the amount of $1 and $7, respectively.

In November 2012, shareholders approved an increase in the Company's authorized capital and the issuance of Series D-1 Convertible Preferred Stock (the "Series D-1 Preferred Stock") and Series D-2 Convertible Preferred Stock (the "Series D-2 Preferred Stock" together with the Series D-1 Preferred Stock, the "Series D Preferred Stock"). In November 2012 the Company converted approximately $3,099 of short-term debt and accrued interest into shares of Series D Preferred Stock net of offering costs of $190. The Company sold, for cash in a private placement, 1,082 of additional shares of Series D Preferred Stock at a purchase price of $1.00 per share and received $967 net of offering costs of $115.

On December 2, 2011, the Company entered into a Note and Warrant Purchase Agreement (the "December 2011 Purchase Agreement") with Philip Sassower, the Company's Chairman and CEO, and other investors (the "December 2011 Investors"). Under the terms of the December 2011 Purchase Agreement, the Company issued unsecured convertible promissory notes in the aggregate amount of $500 (the "December 2011 Notes") to the December 2011 Investors. The December 2011 Notes bear interest at the rate of 10% per annum, and have a maturity date of December 20, 2012. The December 2011 Notes are also convertible at the option of the December 2011 Investors into securities sold in the Company's next equity financing with gross proceeds to the Company in excess of $1. In connection with the issuance of the December 2011 Notes, the Company also issued to the December 2011 Investors warrants to purchase an aggregate of 5,556 shares of the Company's Common Stock at an exercise price of $0.0225 per share. The company ascribed a value of $13 to the warrants using a modified Black Scholes pricing model with the following assumptions; risk free interest rate of 0.39, expected life of three years, expected volatility of 202%, and a dividend yield of 0. The warrant value was recorded as a discount to notes payable and as a derivative liability. The warrant is exercisable for a period of three years. As of December 31, 2012, the fair value of the warrant was $1. The December 2011Notes and accrued interest were converted into 550 shares Series D-1 Preferred Stock at the November Closing. The remaining discount was amortized to expense.

On September 20, 2011, the Company entered into a Note and Warrant Purchase Agreement (the "September 2011 Purchase Agreement") with Phoenix Banner Holdings, LLC (the "September 2011 Investor"), an entity affiliated with Phoenix Venture Fund LLC ("Phoenix"), the Company's largest stockholder. Under the terms of the September 2011 Purchase Agreement, the Company issued an unsecured convertible promissory note in the amount of $500 (the "September 2011 Note") to the September 2011 Investor. The September 2011 Note bears interest at the rate of 10% per annum, and had a maturity date of September 20, 2012 which was subsequently amended to extend the due date through December 31, 2012. The September 2011 Note is also convertible at the option of the September 2011 Investor into securities sold in the Company's next equity financing with gross proceeds to the Company in excess of $1. In connection with the issuance of the September 2011 Note, the Company also issued to the September 2011 Investor a warrant to purchase 5,556 shares of the Company's Common Stock at an exercise price of $0.0225 per share. On September 20, 2011 the company ascribed a value of $7 to the warrants using a modified Black Scholes pricing model with the following assumptions; risk free interest rate of 0.42, expected life of three years, expected volatility of 204%, and a dividend yield of 0. The warrant value was recorded as a discount to notes payable and as a derivative liability. The warrant is exercisable for a period of three years. As of December 31, 2012, the fair value of the warrant was $9. The September 2011Note and accrued interest were converted into 560 shares of Series D-1 Preferred Stock at the November 2012 closing.

On September 2, 2011 the Company borrowed an aggregate of $100 from Phoenix Venture Fund LLC and an employee of the Company and issued unsecured demand notes to each. These notes are due on demand and bear interest at the rate of 10% per annum. All principal and interest were paid in cash in September 2012, in the amount of $107.

The Company used the net proceeds from the transaction for working capital and general corporate purposes.

Interest expense associated with the Company's indebtedness for the years ended December 31, 2012 and 2011, was $189 and $24, respectively, of which $100 and $21, respectively, was related party expense. Amortization of debt discount and deferred financing costs for the year ended December 31, 2012 and 2011, was $64 and $3, respectively, of which $14 and $3, respectively, was related party expense.