Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 10: Stockholders' Equity

The Equity Incentive Plan of 2009, effective June 24, 2009, authorizes the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock and other stock awards.A maximum of 15,000,000 shares of common stock is reserved for potential issuance pursuant to awards under the Equity Incentive Plan of 2009.Unless sooner terminated, the Equity Incentive Plan of 2009 will continue in effect for a period of 10 years from its effective date.As of September 30, 2012, the Company issued 7,758,104 securities to Directors and consultants consisting of an aggregate 2,088,734 shares of common stock and options to purchase 5,669,370 shares.The shares issued to consultants had prices ranging from $0.25 to $2.30 based on the NYSE MKT closing price.

The aggregate stock options had various exercise prices ranging from $0.26 to $2.81, had terms of ten years, issued at a premium value of 110% of the NYSE MKT stock closing price and vested over varying periods of time upon grant.

In June 2012, the Equity Distribution Agreement (the "Old EDA") with Maxim Group LLC ("Maxim") expired. Under the Old EDA, the Company could sell up to approximately 32,000,000 shares of its common stock from time to time through Maxim as its sales agent. Under the Old EDA, Maxim was entitled to a commission at a fixed commission rate of 4.0% of the gross sales price per Share sold, up to aggregate gross proceeds of $10,000,000, and, thereafter, at a fixed commission rate of 3.0% of the gross sales price per share sold. The Company had no obligation to sell any shares under this program, and either party was permitted to terminate the Old EDA at any time without penalty.During the nine months ended September 30, 2012, the Company sold no shares through this program and received no net cash proceeds.The Company sold an aggregate of 520,000 shares over the life of the Old EDA that resulted in net cash proceeds of approximately $293,000 and commissions paid to Maxim of approximately $12,000.

On July 23, 2012, the Company entered into a new EDA with Maxim (the "EDA") pursuant to which the Company may sell up to $75,000,000 worth of its shares of Common Stock from time to time through Maxim, as sales agent.Under the EDA, Maxim is entitled to a fixed commission rate of 4.0% of the gross sales price of Shares sold under the EDA, up to aggregate gross proceeds of $10,000,000, and thereafter, at a fixed commission rate of 3.0% of the gross sales price of Shares sold under the EDA.Sales of the Shares, if any, may be made in transactions that are deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers' transactions, including on the NYSE MKT, at market prices or as otherwise agreed with Maxim.The Company has no obligation to sell any of the Shares and may at any time suspend offers under the EDA or terminate the EDA.The Shares are being sold pursuant to the Company's Universal Shelf Registration Statement on Form S-3, declared effective by the Securities and Exchange Commission on July 2, 2012. On September 14, 2012, the Company filed a Prospectus Supplement with the Securities and Exchange Commission related to the offering of 20,000,000 shares under the ATM.On October 5, 2012, the Company filed an updated Prospectus Supplement.As a result, at the date of this report, an aggregate of 40,000,000 shares are allocated for public sale under the Prospectus Supplement pursuant to the ATM.As of September 30, 2012, the Company had sold an aggregate of 10,699,700 shares that resulted in net cash proceeds of approximately $9,268,000.The commissions paid to Maxim were approximately $393,000.

The proceeds from this financing are intended to be used to fund infrastructure growth including manufacturing, regulatory compliance and market development.