SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2014

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

6. SHAREHOLDERS’ EQUITY

The following table details the changes in shareholders’ equity for the quarter ended March 31, 2014:

	Common Stock					Accumulated			Treasury
	Shares	Amount		Paid-In Capital		Deficit			Stock			Total
Balances, January 1, 2014	19,820,258	$	19,824	$	216,703,028	$	(191,470,046	)	$	(9,418	)	$	25,243,388
Net loss						(3,460,037		)	—			(3,460,037		)
Common stock issuance for loan interest and fees	138,406	138		362,945		—			—			363,083
Stock compensation expense	—	—		116,688		—			—			116,688
Common stock issuance, net of issuance costs	4,483,350	4,484		11,244,227		—			—			11,248,711
Balances, March 31, 2014	24,442,014	$	24,446	$	228,426,888	$	(194,930,083	)	$	(9,418	)	$	33,511,833

See Note 7 — Stock Based Compensation, for further discussion of stock compensation expense and restricted stock issuances.

Equity Infusions

Equity Infusion—Registered Direct Offering

On February 12, 2014, the Company completed a registered direct offering with the issuance of 3,960,000 shares of common stock at a price of $2.60 per share for net proceeds of $9,372,885.

Equity Infusion—ATM Sales

On October 31, 2011, the Company entered into an ATM Sales Agreement with BTIG LLC, a major global securities trading firm that acts as our sales agent. Under the ATM Sales Agreement, the Company may sell from time to time, in “at-the-market” offerings, shares of its common stock registered under its currently effective registration statement on Form S-3. On October 31, 2011, the Company filed a prospectus supplement with the Securities and Exchange Commission in connection with the offering, relating to shares of its common stock having an aggregate offering price of up to $15.0 million. The Company pays BTIG a commission equal to 3.0% of the gross proceeds from the sale of any shares pursuant to the ATM Sales Agreement.

From January 17, 2014 to January 31, 2014, the Company sold 523,350 shares of common stock for net proceeds of $1,875,826 under the ATM Sales Agreement. As of March 31, 2014, the Company has a total of $7.1 million available for future sales under the ATM Sales Agreement.