XML 47 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Event-Public Offering of Common Stock and Warrants
12 Months Ended
Dec. 31, 2013
Subsequent Events [Abstract]  
Subsequent Event-Public Offering of Common Stock and Warrants

11. Subsequent Event-Public Offering of Common Stock and Warrants

Public Offering of Common Stock and Warrants

On February 18, 2014, the Company closed on a public offering of common stock and warrants, in which the Company raised approximately $11,106,000 in net proceeds, after deducting placement agents’ fees and before other offering expenses. Investors purchased an aggregate of approximately $12 million of units, in a registered public offering, at a price per unit of $2.05. Each unit consisted of one share of common stock and 0.5 of a warrant to purchase a share of the Company’s common stock. A total of 5,853,657 shares of common stock were issued and warrants for the purchase of 2,926,829 common stock were issued. The warrants are exercisable immediately after issuance, have a five-year term and an exercise price of $2.75 per share. Also, in connection with the offering, the Company issued to its placement agent and related persons warrants to purchase 292,682 shares of the Company’s common stock, which are exercisable 180 days after issuance, have a five-year term and an exercise price of $2.56 per share.

The warrants contain limitations that prevent the holders of the warrants from acquiring shares upon exercise of the warrants that would result in the number of shares beneficially owned by it and its affiliates exceeding 9.99% of the total number of shares of the Company’s common stock then issued and outstanding. In addition, upon certain changes in control of our Company, the holder of a warrant can elect to receive, subject to certain limitations and assumptions, securities in a successor entity equal to the value of the warrant or if holders of common stock are given a choice of cash or property, then cash or property equal to the value of the outstanding warrants.

As of March 17, 2014, investors in the public offering exercised 989,874 warrants into 989,874 shares of the Company’s common stock for net proceeds of approximately $2,722,000.