XML 35 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Stockholders' Equity
 3 Months Ended
Mar. 31, 2013
Stockholders' Equity Note Disclosure [Text Block]
5.           Stockholders’ Equity

Common Stock

During January 2013, we issued an aggregate of 1,766,667 shares of our common stock pursuant to the exercise of Series B Warrants, resulting in total proceeds of $1,060,000 (see ”Stock Purchase Warrants” below).

Stock Options

The Company maintains a stock option plan that provides the Board of Directors broad discretion in creating equity incentives for employees, officers, directors and consultants.  The following table presents a summary of stock option transactions during the three months ended March 31, 2013:

   
Number of Shares
   
Weighted Average
Exercise Price
 
Outstanding at December 31, 2012
    1,069,141     $ 4.50  
Granted
    --       --  
Exercised
    --       --  
Forfeited or expired
    (14,999 )     15.28  
Outstanding at March 31, 2013
    1,054,142     $ 4.35  
Exercisable at March 31, 2013
    695,796     $ 6.15  

During the three months ended March 31, 2013 and 2012, we recorded share-based compensation expense related to stock options of $47,274 and $81,576, respectively.  Share-based compensation expense is recognized on a straight-line basis over the requisite service period for the award and is allocated to research and development expense or general and administrative expense based upon the related employee classification.  As of March 31, 2013, there was $224,627 of unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted average period of 2 years.

Stock Purchase Warrants

We have issued stock purchase warrants in connection with financing transactions and also in exchange for services from consultants and others.  The following table presents a summary of stock purchase warrant transactions during the three months ended March 31, 2013:

   
Number of Shares
   
Weighted Average
Exercise Price
 
Outstanding at December 31, 2012
    11,225,559     $ 2.06  
Issued
    --       --  
Exercised
    (1,766,667 )     0.60  
Forfeited or expired
    --       --  
Outstanding at March 31, 2013
    9,458,892     $ 2.29  
Exercisable at March 31, 2013
    8,292,226     $ 2.47  

Effective January 17, 2013, we reduced the exercise price of our then-outstanding Series B Common Stock Purchase Warrants from $0.75 to $0.60 per share.  In consideration for the reduction of the exercise price, the holders of the Series B Warrants immediately exercised 1,766,667 of the Series B Warrants for cash, resulting in total proceeds to the Company of $1,060,000.  We also extended the expiration date of the remaining, unexercised Series B Warrants (1,166,667 shares in the aggregate) from March 21, 2013 to May 21, 2013.  We recorded general and administrative expense of $218,551 associated with these warrant modifications, all of which was recognized during the three month period ended March 31, 2013.

During the three month periods ended March 31, 2013 and 2012, we recorded no expense related to the issuance of stock purchase warrants in exchange for services; and as of March 31, 2013, there was no unrecognized compensation expense related to any compensatory warrant arrangements.

Common Stock Reserved

A summary of our common stock reserved for future issuance is as follows as of March 31, 2013:

Series A Convertible Preferred Stock
    1,050,667  
Common Stock Purchase Warrants
    9,458,892  
Equity Incentive Plans
    1,197,529  
Total
    11,707,088