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Subsequent Events
3 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events
9. Subsequent Events
 
Management has evaluated subsequent events or transactions occurring through the date on which the condensed consolidated financial statements were issued.

Subsequent to September 30, 2012, the Company granted employees options to purchase an aggregate of 76,000 shares of common stock with an exercise price of $4.95 for a total value of $359,609. The options vest over a three year period and have a term of ten years.

Subsequent to September 30, 2012, the Company granted its Chief Financial Officer options to purchase 250,000 shares of common stock with an exercise price of $4.95 for a total value of $1,182,925. The options vest over a three year period and have a term of ten years.

Subsequent to September 30, 2012, the Company received an aggregate of $100,000 for the purchase of 22,222 shares of common stock at a per share price of $4.50.

Subsequent to September 30, 2012, the Company granted warrants to a consultant to purchase 30,000 common shares at an exercise price of $4.95.

Subsequent to September 30, 2012, the Company’s former Chief Financial Officer exercised options to purchase 63,129 shares of common stock under the Company’s 2009 Incentive Compensation Plan, at an exercise price of $0.80 per share for 14,676 shares, and $2.50 per share for 48,453 shares.

Subsequent to September 30, 2012, the Company received advances of $258,694 from its officers to assist with working capital needs. As of the date of this filing, the Company has repaid $128,165 of such advances.

Subsequent to September 30, 2012, the Company completed private placements for an aggregate of $3,501,975 for the purchase 3,501,975 units at a price of $1.00 per unit. The aggregate amount includes $500,000, which was received from the Company’s Chief Executive Officer. Each unit consists of (i) one share of the Company’s common stock, par value $0.001 per share, and (ii) warrants to purchase three shares of the Company’s common stock at an exercise price of $0.25 per share, which must be exercised within 5 years of February 1, 2013. Substantially all of the proceeds from the sale of the units were used by the Company to satisfy all its obligations under its notes and convertible notes payable (see Note 2).  As of the date of this report 125,000 shares have not been issued.

Subsequent to September 30, 2012, the Company granted 408,345 warrants with an exercise price of $1.00 to the investors who purchased shares in private placements at $4.50 during 2012.

Subsequent to September 30, 2012, the Company converted $761,000 of notes payable and other advances – from stockholders and $72,000 of accounts payable to a related party outstanding into 833,000 units at a price of $1.00 per unit. Each unit consists of (i) one share of the Company’s common stock, par value $0.001 per share, and (ii) warrants to purchase two and three-quarters shares of the Company’s common stock at an exercise price of $0.25 per share, which must be exercised within 5 years of February 15, 2013.  As of the date of this report 165,000 warrants have not been issued.
 
Subsequent to September 30, 2012, the Company issued an aggregate of 8,758,610 shares of common stock to several holders of warrants who elected to exercise 10,825,756 warrants on a "cashless" basis under the terms of the warrants.  The warrants had exercise prices of $0.25 per share (8,559,784 net shares) and $0.35 per share (573,826 net shares).  As of the date of this report 375,000 shares have not been issued.
 
Subsequent to September 30, 2012, the Company granted employees options to purchase an aggregate of 330,500 shares of common stock with an exercise price of $1.60 for a total value of $507,072. The options vest over a three year period and have a term of ten years.
 
Subsequent to September 30, 2012, the Company entered into a settlement agreement with Guaranteed Returns for amounts owed related to the return of expired goods and inventory.  The Company received $50,000 in connection with the agreement for complete satisfaction of all outstanding and past due accounts receivable from Guaranteed Returns, which was received on February 28, 2013.  The balance due to the Company as of September 30, 2012 was $424,525 and is included in accounts receivable on the condensed consolidated balance sheet.  As of September 30, 2012, the Company had fully reserved against the past due balance.

Subsequent to September 30, 2012, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) dated March 28, 2013 with a lender (the "Lender").  Under the terms of the Loan Agreement, the Company borrowed $500,000 from the Lender (the “Loan”).  The Loan will be evidenced by a promissory note (the “Note”), and will bear interest on the unpaid principal balance of the Note until the full amount of principal has been paid at a floating rate equal to the Prime Rate plus four and one-quarter percent (4.25%) per annum.  Under the terms of the Loan Agreement, the Company has agreed to make monthly payments of accrued interest on the first day of every month, beginning on May 1, 2013. The principal amount and all accrued interest on the Promissory Note is payable on March 1, 2015, or earlier on an event of default or a sale or liquidation of the Company.  The Loan may be prepaid in whole or in part at any time by the Company without penalty.
 
The Company granted the Lender a first, priority security interest in all of the Company’s assets, in order to secure the Company’s obligation to repay the Loan. The Loan Agreement contains customary negative covenants restricting the Company’s ability to take certain actions without the Lender’s consent, including incurring additional indebtedness, transferring or encumbering assets, paying dividends or making certain other payments, and acquiring other businesses.  Upon the occurrence of an event of default, the Lender has the right to impose interest at a rate (the “Default Rate”) equal to five percent (5.0%) per annum above the otherwise applicable interest rate. The payment of the Loan may be accelerated prior to their maturity dates upon certain specified events of default, including failure to pay, bankruptcy, breach of covenant, and breach of representations and warranties.
 
In consideration of the Loan, the Company granted the Lender a warrant to purchase 750,000 shares of common stock at a purchase price of $0.35 per share.  Each warrant may be exercised in whole or in part and from time to time for a term of five years from its grant date.  The warrants contain customary anti-dilution and purchase price adjustment provisions.  The warrants are transferable in whole or in part, so long as the transfers comply with applicable securities laws.