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Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events

Note 18 – Subsequent Events

 

On April 4, 2012, the underwriter from the March 29, 2012 public offering (previously disclosed in our Form 8-K filed on March 29, 2012) of 15,000,000 units exercised its over-allotment option for an additional 2,000,000 units (previously disclosed in our Form 8-K filed on April 5, 2012). Each unit consists of one share of common stock and a warrant to purchase one share of common stock with a per share exercise price of $0.51. Additionally in April 2012, the warrants issued in connection with the offering initially exercisable beginning on September 30, 2012, were accelerated and are now exercisable immediately. The Company received additional gross proceeds of $800,000, prior to deducting underwriting discounts, for net proceeds of approximately $744,000.

  

On April 26, 2012 (the “Effective Date”), the Compensation Committee of the Board of Directors adopted a program (the “2012 Option Program”) whereby each participating officer was issued on April 26, 2012 an option (the “Option”) to purchase that number of shares of Common Stock equal to that portion of the participating officer’s gross salary (the “Participating Salary”) for the period May 1, 2012 – July 31, 2012 (the “Election Period”) elected by the participating officer divided by $0.25, the Black-Scholes value of an Option issued under the 2012 Option Program. The Option, the issuance of which is in lieu of payment of the Participating Salary, vests at the end of the month in which the Participating Salary to which it relates would have been paid and has a term of ten years despite any termination of employment of the participating officer. The per share exercise price is $0.36, the closing price of the Common Stock on the date of issuance of the Options. The gross Participating Salary for all participating officers is $181,309 and the total number of Options granted under the 2012 Option Program was 725,235.