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Subsequent Events
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6 Months Ended | ||
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Jun. 30, 2011
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| Subsequent Events [Abstract] | |||
| Schedule of Subsequent Events [Text Block] |
We performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined, except as disclosed herein, that there were no other such events requiring recognition or disclosure in the financial statements.
Loan
On August 3, 2011, we received a loan in the amount of $200,000 from existing investor, Clayton A. Struve. The loan was made pursuant to a Promissory Note, the Note, with a maturity date of November 3, 2011, which may be extended with mutual consent of the parties. The interest rate under the Note is 20% per annum. The Company is required to pay at least three months of interest, regardless of earlier repayment of the Note. The Note may be repaid in cash or (at the option of the investor) by conversion into that number of securities issued in the next financing completed by the Company having an aggregate purchase price equal to the then outstanding principal amount of the Note, plus any accrued and unpaid interest due at the time of conversion.
In connection with the loan, the Company also issued to Mr. Struve a warrant to purchase 26,315 shares of the Company’s Common Stock, $0.01 par value, at an exercise price of $0.76 per share, expiring on August 3, 2014.
Amendments to 30-Month Common Stock Warrants and Series B Warrants
On or about August 10, 2011, we entered into Amendment No. 1 to the Series B Preferred Stock Purchase Warrant, the “Series B Warrant Amendment”, with each of the holders of the outstanding Series B Warrants, which were issued in the Series B Private Placement. The Series B Warrant Amendment extends the term of the Series B Warrants from August 11, 2011 to August 11, 2012. Additionally, the Series B Warrant Amendment amends the Warrants so that they are no longer exercisable for shares of our Series B Convertible Preferred Stock, but will be exercisable for that number of shares of our Common Stock into which the shares of Series B Convertible Preferred Stock subject to the Series B Warrant were previously convertible. The Warrants will have the same aggregate exercise price but, due to this change, will have a per share exercise price equal to one-tenth of the original exercise price.
Also on or about August 10, 2011, we entered into Amendment No. 1 to the 30-Month Common Stock Warrant, the Common Warrant Amendment, with each of the holders of the outstanding 30-Month Common Stock Warrants, which were issued in the Series A Private Placement completed in February 2009. The Common Warrant Amendment extended the term of the 30-Month Common Stock Warrants from August 11, 2011 to August 11, 2012.
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