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Subsequent Events
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9 Months Ended |
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Sep. 30, 2012
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| Subsequent Events [Abstract] | |
| Subsequent Events | 11. Subsequent Events On September 28, 2012, we completed a registered direct financing with three investors pursuant to which we issued 6,304,102 shares of our common stock. The price at which the common stock was sold in the financing was $4.07 per share, equal to the consolidated closing bid price for our common shares on the day prior to the issuance. On October 5, 2012, we received telephonic notice from our outside counsel on the transaction that the Staff of The NASDAQ Stock Market LLC had informed such counsel of the Staff's belief that the sale of the shares did not comply with Nasdaq Listing Rule 5365(d). The Staff's concern was based on the fact that the shares were sold at a price that was below our book value per share as reflected in our Form 10-Q for the quarter ended June 30, 2012. As a result, it was the Staff's belief that, pursuant to the Nasdaq Listing Rules, we were not permitted to issue 20% or more of our outstanding common shares, even though the sales price per share was equal to the market value per share on the date immediately preceding the issuance. Following communications by us with the Staff, on October 12, 2012, we received a Letter of Reprimand from the Staff pursuant to Listing Rule 5810(c)(4), based on our noncompliance with Listing Rule 5635(d). The Staff has informed us that it now considers the matter closed. The determination to issue a Letter of Reprimand was based on a number of factors, including that the noncompliance does not appear to have been the result of a deliberate intent to avoid compliance, that we have not demonstrated a pattern of non-compliance, that we relied on the advice of our outside counsel in structuring the financing, our decision to implement additional controls to prevent similar occurrences in the future and the fact that we will not be offering additional securities in the financing. |