SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2013

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

5. SHAREHOLDERS’ EQUITY

Reverse Stock Split

Immediately following the close of trading on January 22, 2013, the Company completed a 1 for 10 reverse stock split for its common stock. With the reverse stock split, every ten shares of the Company’s issued and outstanding common stock were combined into one issued and outstanding share of common stock. The reverse stock split had no effect on the par value of the shares or the authorized number of shares of the Company. The reverse split reduced the number of URI’s outstanding common stock from approximately 161.1 million shares to approximately 16.1 million shares. All share data herein has been retroactively adjusted for the reverse stock split as of December 31, 2012.

The following table details the changes in shareholders’ equity for the six months ended June 30, 2013:

	Common Stock			Paid-In			Accumulated			Treasury
	Shares	Amount		Capital			Deficit			Stock
Balances, December 31, 2012	16,150,163	$	16,154	$	207,338,549		$	(162,201,908	)	$	(9,418	)
Net loss	—	—		—			(7,997,178		)	—
Stock compensation expense	—	—		183,316			—			—
Common stock issued — payment of loan principal and interest	1,992,127	1,992		5,093,841			—			—
Common stock issued — shareholder rights offering	1,547,843	1,548		3,597,884			—			—
Common stock issued for services	83,200	83		291,417			—			—
Restricted stock issuance	246,925	247		(247		)	—			—
Balances, June 30, 2013	20,020,258	$	20,024	$	216,504,760		$	(170,199,086	)	$	(9,418	)

See Note 6 — Stock Based Compensation for further discussion of stock compensation expense and restricted stock issuance.

Equity Infusion—Shareholder Rights Offering

In March 2013, the Company completed the Rights Offering, whereby each URI shareholder and warrant holder received one non-transferrable subscription right for each share of common stock owned or subject to a warrant as of 5:00pm ET on January 28, 2013. Every subscription right entitled the holder to purchase 0.3119 of a share of common stock of URI at a price of $2.55 per whole share.

Under the Rights Offering, the Company raised $3.6 million in cash, net of expenses and $5.0 million was used to repay the short term financing from RCF, whereby RCF was issued 1.96 million shares of the Company’s common stock. Also in connection with the RCF loan facility, the Company issued 31,343 shares of common stock in 2013 to pay fourth quarter 2012 and first quarter 2013 interest accrued on the loan of $16,667 and $79,167, respectively.