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Subsequent Events
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6 Months Ended |
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Jun. 30, 2013
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| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
11. SUBSEQUENT EVENTS
Equity Matters and Issuances
Series B Preferred Stock
The exchange agreement entered into between the Series B preferred stockholder and the Company on June 10, 2013 represented modification of the original conversion feature of the Series B preferred stock when originally issued. As a result, the incremental 1,500,000 shares of common stock and the 600,000 warrants exercisable at immediately at $2.25 per share and an expiration date of June 10, 2016 issued in July 2013 represent an aggregate loss of $1,905,000.
Common Stock
In August 2013, the Company and the holder of the $150,000 of past due convertible notes, subject to yet to be issued Board of Directors approval, agreed to convert the note and accrued interest thereon on the basis of $0.50 per share and issue 300,000 warrants exercisable at $2.25 per share which vest immediately and expire on August 11, 2016. This agreement represents a modification of the original conversion feature when the notes were initially issued and for which an aggregate loss of approximately $114,000.
During the period of July 1, 2013 through August 13, 2013 the Company received $407,500, net of issuance costs and issued 850,000 shares of its common stock valued at $145,085 and warrants to purchase 850,000 shares of the Company’s common stock at $2.25 per share valued at $297,915 which vest immediately and expire three years from date of issuance. Additionally, the Company issued 1,050,000 shares of its common stock valued at $172,942 and 1,050,000 warrants to purchase 1,050,000 common shares at $2.25 per share valued at $352,058 which vest immediately and expire three years from date of issuance. The latter issuance of common stock and warrants related to the Stock Subscription Payable on the Company’s balance sheet at June 30, 2013.
On July 3, 2013, the Company entered into an agreement with a firm to serve as a placement agent in a financing transaction whereby the Company issued 125,000 shares of its common stock at $1.30 per share and valued at $162,500. Furthermore the Company agreed to issue an additional 100,000 shares of its common stock on the second month anniversary of this agreement and an additional 100,000 shares on the third month anniversary of this agreement.
On August 1, 2013, the Company issued a firm 11,132 shares of its common stock to a consultant at a price of $1.53 and valued at $16,988 as part of its consulting agreement entered into on December 10, 2012.
On August 1, 2013, the Company issued 15,000 shares of its common stock under the Company’s 2012 Omnibus Incentive Plan to an employee as compensation at a price of $1.30 per share and valued at $19,500.
On August 12, 2013, the Company issued 25,000 shares of its common stock under the Company’s 2013 Omnibus Incentive Plan at a price of $1.50 per share and valued at $37,500 for legal services.
Litigation Matters
On July 31, 2013, the Company participated in an arbitration with a former consultant regarding certain compensatory matters. The arbitrator has thirty days in which to issue a ruling, but has not yet done so.
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