20.

Registered Direct Offering

On October 7, 2011, the company entered into a Placement Agency Agreement (the "Placement Agency Agreement") with C.K. Cooper & Co., Inc. ("CKCC") and an Engagement Agreement (the "Engagement Agreement") with Rodman & Renshaw LLC ("Rodman") whereby it engaged them as co-placement agents (the "Placement Agents") relating to a registered direct offering by the company to select investors. In addition, as of October 7, 2011, the company entered into a securities purchase agreement with certain institutional and/or accredited investors pursuant to which the company agreed to sell an aggregate of 5,874,998 shares of its common stock, par value $0.001 per share, and warrants to purchase a total of 2,937,497 shares of common stock to the investors for gross proceeds of $4.1 million. The purchase price of a share of common stock and warrant was $0.70. The warrants are exercisable for a period of four years commencing on the six month anniversary of the date on which they were issued and have an initial exercise price of $1.00 per share. The exercise price of the warrants is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions. The value of these warrants using the Black Scholes option pricing model was approximately $1.83 million. The transaction closed on October 13, 2011 and the net proceeds to the company, after deducting placement agent fees and expenses and the company's offering expenses, were approximately $3.6 million.