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Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

The Company evaluated subsequent events through the date of this filing. Except for the following, there are no additional subsequent events to report:

N2 Bio Transaction

As previously disclosed, in September 2013, the Company sold the Bio Business Unit to N2 Bio. The purchase price for the Bio Business Unit was $10.5 million plus the assumption of liabilities of approximately $100 thousand, with $6.0 million paid in cash at closing, a $2.4 million subordinated convertible promissory note (the “N2 Note”), and 310,549 Series A Preferred Units of N2 (the “N2 Units”) valued at approximately $2.1 million. See Note 13 to the unaudited condensed consolidated financial statements.

On October 10, 2014, in order to increase working capital, eliminate significant unpaid rent obligations and substantially reduce future rent obligations, the Company entered into a series of agreements with Roger G. Little, Chairman of the Board of Directors of the Company, and SPI-Trust, a trust of which Mr. Little is the sole trustee and principal beneficiary (the “Transactions”). SPI-Trust is the owner of the building in Bedford, MA in which the Company leases its space. Under the lease prior to the amendment discussed below (the “Bedford Lease”), the Company leased 117 thousand square feet of space at a rate of $16.50 per square foot on a triple net basis, whereby the tenant is responsible for operating expenses, taxes and maintenance of the building, with annual increases of $0.50 per square foot. The Bedford Lease expires on November 30, 2017.

In connection with the Transactions, the Company entered into the following agreements:

1.A Note Purchase and Assignment Agreement with Mr. Little pursuant to which the Company sold the N2 Note to Mr. Little in exchange for (i) $1.5 million in cash and (ii) the forgiveness of $200 thousand of compensation owed by the Company to Mr. Little. In addition, as part of the transaction, Mr. Little was issued a five-year warrant to purchase 1.0 million shares of common stock of the Company for an exercise price per share of $0.276 (representing 120% of the closing price of the common stock on such date).

2.An Equity Ownership Interest Transfer Agreement with SPI-Trust pursuant to which the Company sold the N2 Units to SPI-Trust in exchange for (i) the forgiveness of approximately $1.9 million in unpaid rent for the period from October 1, 2013 through October 31, 2014 and (ii) the agreement to enter into an amendment to the Bedford Lease, as described below.

3.The Third Amendment to Lease Agreement with SPI-Trust pursuant to which the Bedford Lease was amended to, among other things, (i) reduce the leased portion of the premises to 86 thousand square feet of space, effective November 1, 2014, (ii) provide that for the period commencing November 1, 2014 and running through and including July 31, 2015, the Company shall not be required to pay any base rent, (iii) provide that for the period commencing on August 1, 2015 and running through and including January 31, 2016, base rent under the Bedford Lease shall be $5.00 per square foot and (iv) provide that for the period commencing on February 1, 2016 and running through the end of the term (November 30, 2017), base rent under the Bedford Lease shall be $10.00 per square foot. In addition, SPI-Trust can terminate the Bedford Lease upon 6 months’ prior written notice, provided that the Bedford Lease cannot be terminated prior to July 31, 2015.

Other

On December 10, 2013, Stifel, Nicolaus & Company, Inc. ("Stifel") filed a complaint against the Company in the United States District Court for the Southern District of New York (the "Court"), alleging breach of contract related to Stifel's activities acting as an investment banker for us. The complaint alleged that the Company owed certain amounts to Stifel. In October 2014, the Company and Stifel reached a settlement whereby the parties agreed to voluntarily dismiss the action with prejudice, and the Company agreed to pay to Stifel a sum with a net present value of $587 thousand, which amount is secured by a security interest in certain collateral. Payments will be made in installments through July 2019. The Court dismissed the matter with prejudice on October 21, 2014.