|
Note 10 - Subsequent Events
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events [Text Block] |
10.
Subsequent
Events
July
2012 Private Placement
In
early July 2012, the Company entered into Securities Purchase
Agreements (collectively, the “Purchase
Agreement”) with certain investors (the
“Investors”) for the private placement of shares
of the Company’s common stock and warrants to purchase
shares of the Company’s common stock, at a purchase
price of $1.10 per unit (the “Financing
Transaction”). Each unit consisted of one
share of common stock and a warrant (an “Investor
Warrant”) to purchase one-half share of common
stock. The pricing for the Financing Transaction
was set by the Company on June 25, 2012. As part of the
Financing Transaction, the Company also entered into
Registration Rights Agreements with the Investors
(collectively, the “Registration Rights
Agreement”), pursuant to which the Company agreed to
file a registration statement with the SEC covering the
resale of the shares of common stock issued to the Investors
under the Purchase Agreement and the shares of common stock
that are issuable to the Investors upon exercise of the
Investor Warrants. The Company filed that registration
statement on August 13, 2012.
In
the Financing Transaction, the Company sold to the Investors
approximately 5.5 million shares of common stock, together
with Investor Warrants to purchase approximately 2.7 million
shares of common stock, for aggregate gross proceeds of
$6,000,000. Each Investor Warrant is exercisable
for five years from the date of issuance and has an exercise
price of $1.45 per share, subject to adjustment as provided
therein. Non-employee directors of the Company
invested a total of $269,980 in the Financing Transaction.
The Company’s placement agent for the Financing
Transaction, and its sub-placement agents, earned commissions
of approximately $480,000 as well as warrants to purchase
approximately 0.4 million shares of the Company’s
common stock (the “Placement Agent Warrants”).
The Placement Agent Warrants have the same terms and
conditions as the Investor Warrants, except that the
Placement Agent Warrants have an exercise price of $1.10 per
share. In connection with the Financing Transaction, the
Company entered into registration rights agreements with the
Investors pursuant to which the Company agreed to prepare and
file a registration statement with the SEC under the
Securities Act of 1933 (the “Securities Act”)
covering the resale of the shares of common stock and the
shares of common stock underlying the warrants that we issued
in the financing. The Company will bear the costs,
including legal and accounting fees, associated with the
registration of those shares. Once the
registration statement is filed, the Company will be required
to use commercially reasonable efforts to have the
registration statement declared effective as soon as
practicable. In the event the registration
statement is not filed on or prior to the filing deadline set
forth in the registration rights agreements, the registration
statement is not declared effective by the SEC on or prior to
the effectiveness deadline set forth in the registration
rights agreements, or if the Company fails to continuously
maintain the effectiveness of the registration statement
(with certain permitted exceptions), the Company will incur
certain liquidated damages to the Investors, up to a maximum
amount of 6% of the investor’s investment in the
Financing Transaction.
At
June 30, 2012, the Company had received funds from
prospective investors in the Financing Transaction totaling
$989,520 associated with the Financing Transaction. However,
the Company and these investors did not enter into a
Securities Purchase Agreement until early July
2012. Therefore, the $989,520 was reflected in the
cash and cash equivalents balance and as a current liability
classified as deposits in the Company’s June 30, 2012
condensed balance sheet. The table below reflects,
on a pro forma basis, the impact of the Financing Transaction
on the Company’s condensed balance sheet as if it had
occurred on June 30, 2012:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||