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Note 5 - Stockholders' Equity
 6 Months Ended
Jun. 30, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

5.     Stockholders’ Equity


Common Stock Transactions


During January and May 2013, we issued an aggregate of 1,766,667 shares and 1,166,666 shares, respectively, of our common stock pursuant to the exercise of Series B Warrants, resulting in total proceeds of $1,060,000 and $583,333, respectively (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 six months ended June 30, 2013:


   

Number of Shares

   

Weighted Average

Exercise Price

 

Outstanding at December 31, 2012

    1,069,141     $ 4.50  

Granted

    --       --  

Exercised

    --       --  

Forfeited or expired

    (59,099 )     4.59  

Outstanding at June 30, 2013

    1,010,042     $ 4.50  

Exercisable at June 30, 2013

    692,866     $ 6.16  

During the three month and six month periods ended June 30, 2013, we recorded share-based compensation expense related to stock options of $35,978 and $83,252, as compared to $81,000 and $162,576 for the three month and six month periods ended June 30, 2012, 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 June 30, 2013, there was $168,766 of unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted average period of 1.8 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 six months ended June 30, 2013:


   

Number of Shares

   

Weighted Average

Exercise Price

 

Outstanding at December 31, 2012

    11,225,559     $ 2.06  

Issued

    --       --  

Exercised

    (2,933,333 )     0.56  

Forfeited or expired

    --       --  

Outstanding at June 30, 2013

    8,292,226     $ 3.47  

Exercisable at June 30, 2013

    8,292,226     $ 3.47  

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.


Effective May 14, 2013, we reduced the exercise price of the remaining outstanding Series B Common Stock Purchase Warrants from $0.60 to $0.50 per share. In consideration for the reduction of the exercise price, the holders of the Series B Warrants immediately exercised all 1,166,666 of the remaining Series B Warrants for cash, resulting in total proceeds to the Company of $583,333. We recorded general and administrative expense of $19,617 associated with this warrant modification, all of which was recognized during the three month period ended June 30, 2013.


During the three and six month periods ended June 30, 2013 and 2012, we recorded no expense related to the issuance of stock purchase warrants in exchange for services; and as of June 30, 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 June 30, 2013:


Common Stock Purchase Warrants

    8,292,226  

Equity Incentive Plans

    1,197,529  

Series A Convertible Preferred Stock

    1,050,667  

Total

    10,540,422