XML 34 R24.htm IDEA: XBRL DOCUMENT v2.3.0.15
Subsequent Events
9 Months Ended
Sep. 30, 2011
Subsequent Events
Note 18 – Subsequent Events
 
Subsequent to September 30, 2011, the Company delisted its shares from the NASDAQ Capital Market, based in part, on the Company’s continued non-compliance with the minimum stockholders’ equity requirement for continued listing on The NASDAQ Capital Market.
 
The decision to delist its shares from NASDAQ was also made in view of the Company’s contractual obligations to the Buyers of the Company’s Notes and Warrants – see Note 5.  On October 27, 2011, the Company and each of the Buyers entered into separate Letter Agreements which modified certain terms of the transaction documents entered into with the Buyers.  Pursuant to the terms of the Notes, as amended, the Company was contractually obligated to delist its shares of common stock from the Nasdaq Capital Market and simultaneously list or designate for quotation its common stock on another eligible market by November 4, 2011, to avoid an event of default under the Notes and to regain compliance with various other terms of the transaction documents. The result of these modifications will result in a fourth quarter mark-to-market adjustment to the warrants and derivative liabilities increasing the value of the derivative liability by approximately $0.5 million with an offsetting increase to interest expense.
 
We have evaluated events subsequent to the balance sheet date through the date of our Form 10-Q filing for the quarter ended September 30, 2011 and determined there have not been any other material events that have occurred that would require adjustment to or disclosure in our unaudited condensed consolidated financial statements.