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19. Subsequent Events
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
NOTE 19 - Subsequent Events

19.     Subsequent Events

 

Subsequent to March 31, 2013, the holders of 8,333 shares of Series D Preferred converted these shares into 764,636 shares of common stock: 639,960 shares for the conversion of Series D, 116,581 shares for accrued dividends and 8,094 shares for the price protection feature described in footnote 16. Following this conversion, there are no shares remaining of Series D Preferred.

 

Subsequent to March 31, 2013, the Company sold 6,583,333 shares of its common stock to private investors for $197,500, or $0.03 a share. The Company is attempting to obtain waivers from holders of Series E Preferred Stock for the full-ratchet anti-dilution feature for the conversion price and warrants. If the Company is not successful in obtaining these waivers, this full-ratchet anti-dilution feature will result in an additional 283,500,000 shares of common stock issuable upon conversion of Series E Preferred Stock, the repricing of Series E Preferred Stock warrants from $0.30 a share to $0.03 a share and the issuance of an additional 854,700,000 warrants to buy common stock. While the Company believes it can obtain these waivers, there can be no assurance that we will be able to do so. If these waivers are not obtained, the total of shares required to be reserved for the Series E Preferred Stock conversion and warrants is 1,138,200,000. The Company currently has authorized shares of 500,000,000 and would need to either increase the number of authorized shares or do a reverse stock split to be able to reserve enough shares in such event.