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Line of Credit and Debt
3 Months Ended
Mar. 31, 2012
Line of Credit and Debt [Abstract]  
LINE OF CREDIT AND DEBT

NOTE 8 – LINE OF CREDIT AND DEBT

The Company entered into a Loan and Security Agreement with MidCap Financial, LLC (whose interests were later assigned to its affiliate MidCap Funding III, LLC) and Silicon Valley Bank in May 2010. In connection with the Loan and Security Agreement, the Company issued two secured promissory notes in an aggregate principal amount of $3 million, at 14.25%, secured by the Company’s assets, and warrants to purchase up to an aggregate of 101,694 shares of Common Stock at an exercise price of $1.77 per share with an expiration date of May 26, 2015. The per share price of the warrants was subsequently reduced in September 2010 to $0.84 per share in connection with Waiver and Amendment No. 1 to the Loan and Security Agreement.

During February 2011, the Company repaid all outstanding balances under the Loan and Security Agreement, which included approximately $2.6 million in principal, $30,000 of accrued interest, and $169,000 of loan related expenses and MidCap Funding III, LLC and Silicon Valley Bank released their security interest in the Company’s assets. Unamortized costs totaling approximately $225,000, excluding interest, associated with the term loan payable were expensed in February 2011. MidCap Financial, LLC and Silicon Valley Bank also performed a cashless exercise of all of their warrants during February 2011, which resulted in the combined issuance of 78,172 shares of unregistered stock. The Loan and Security Agreement was terminated in February 2011.

 

In December 2011, the Company financed approximately $433,000 of insurance premiums payable in nine equal monthly installments of approximately $48,000 each, including a finance charge of 2.50%. As of March 31, 2012, there was $242,000 outstanding under this arrangement. Such amount is included in Accrued Liabilities in the accompanying consolidated financial statements.