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Note 9 - Common Stock
 12 Months Ended
Dec. 31, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

9.     Common Stock


Increase in Authorized Shares of Common Stock


At our annual meeting of stockholders held on June 10, 2013, our stockholders approved an amendment to our certificate of incorporation to increase our authorized shares of common stock from 40,000,000 shares to 75,000,000 shares. The amendment to our certificate of incorporation was filed with the Delaware Secretary of State on August 1, 2013.


Common Stock Reserved


A summary of common stock reserved for future issuance as of December 31, 2013 is as follows 


Stock Purchase Warrants

    8,292,226  

Stock Option Plan

    1,197,529  

Series A Convertible Preferred Stock

    202,857  

Series B Convertible Preferred Stock

    4,714,286  

Total

    14,406,898  

Common Stock Transactions


During December 2011, we sold an aggregate of 658,520 shares of our common stock to a group of individual accredited investors (including members of our board of directors and management --see Note 13) for an aggregate purchase price of $441,210. We also issued to the investors warrants to purchase an aggregate of 987,783 shares of common stock at a price of $1.00 per share, which expire in December 2016.


During January 2012, we sold an aggregate of 407,999 shares of our common stock to a group of individual accredited investors (including members of our board of directors and management --see Note 13) for an aggregate purchase price of $273,360. We also issued to the investors warrants to purchase an aggregate of 612,001 shares of common stock at a price of $1.00 per share, which expire in January 2017.


During the period from April to September 2012, we issued an aggregate of 1,882,667 shares of our common stock related to conversions of our Series A Preferred Shares (see Note 8).


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 certain stock purchase warrants, resulting in total proceeds of $1,060,000 and $583,333, respectively (see “Stock Purchase Warrants” below).


During October 2013, we issued 50,000 shares of our common stock to a consultant in exchange for services and recorded general and administrative expense of $20,500 related to the issuance (see Note 10).


During December 2013, we issued an aggregate of 2,048,570 shares of our common stock related to conversions of our Series A Preferred Shares (see Note 8).


Stock Purchase Warrants


As of December 31, 2013, we have the following stock purchase warrants outstanding:


Expiration Date

 

Number of Shares

   

Weighted Average

Exercise Price

 

January 19, 2014

    7,400     $ 1.40  

December 31, 2014

    818,376       16.50  

December 31, 2016

    987,783       1.00  

January 16, 2017

    45,000       1.00  

January 31, 2017

    567,001       1.00  

March 21, 2017

    5,866,666       0.35  

Outstanding at December 31, 2013

    8,292,226     $ 2.07  

During 2011, we recorded $152,126 of general and administrative expense associated with the extension of the expiration dates of warrants to purchase 818,376 shares of common stock which were due to expire in 2011 to 2013.


Effective January 17, 2013, we reduced the exercise price of 2,933,333 certain stock purchase warrants from $0.75 to $0.60 per share. In consideration for the reduction of the exercise price, the holders of the warrants immediately exercised 1,766,667 of the warrants for cash, resulting in total proceeds to the Company of $1,060,000. We also extended the expiration date of the 1,166,666 unexercised warrants from March 21, 2013 to May 21, 2013. We recorded general and administrative expense of $218,551 associated with these warrant modifications. Effective May 14, 2013, we reduced the exercise price of the 1,166,666 remaining warrants from $0.60 to $0.50 per share. In consideration for the reduction of the exercise price, the holders of the warrants immediately exercised all of the remaining 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.


Upon the consummation of the sale of our Series B Preferred Shares in December 2013, the exercise price of warrants to purchase 5,866,666 shares of our common stock issued in connection with our Series A Preferred Shares was reduced from $1.00 to $0.35 pursuant to the anti-dilution provisions contained in the warrant agreements. As this existing contractual provision was unrelated to the sale of the Series B Preferred Shares and the exercise price adjustment was triggered automatically, with no consideration received by the Company, no accounting recognition was given to the adjustment.