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Subsequent Events
6 Months Ended
Jun. 30, 2011
Note 15 - Subsequent Events

Preferred Stock Conversion

 

In August 2011, certain holders of the Company’s Series A-2 Preferred Stock elected to convert 965 shares of Series A-2 Preferred Stock into 2,413,000 shares of common stock of the Company (the “A-2 Conversion”) at the original conversion price.  Each of the Series A-2 Preferred Stock shares was exchanged for 2,500 shares of common stock, which is consistent with the Series A-2 Preferred Stock Certificate of Designation.  As a result of the A-2 Conversion, there remained 94 shares of Series A-2 Preferred Stock outstanding as of August 3, 2011.

 

In connection with the A-2 Conversion, the Company has elected to exchange the Company’s outstanding Series B Preferred Stock for a new Series B-1 Preferred Stock, par value $0.0001 and stated value $100,000 per share.  The Series B-1 Preferred Stock will rank senior to the Series A-2 Preferred Stock with respect to the distribution of assets on liquidation, dissolution or winding up and will be entitled to the payment of cash dividends.

 

Warrant Conversion

 

In August 2011, the company agreed with certain holders of the Company’s outstanding warrants to exchange an aggregate 623,000 warrants into 335,000 shares of common stock of the Company (the “Warrant Exchange”).  As a result of the Warrant Exchange, there remained 89,000 warrants outstanding as of August 3, 2011.