Annual report pursuant to Section 13 and 15(d)

Equity

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Equity
 12 Months Ended
Dec. 31, 2012
Equity [Abstract]  
Equity
13. Equity

 

  a. Common Stock Purchase Agreement: In March 2010, we sold to Fusion Capital Fund II, LLC (Fusion Capital), an Illinois limited liability company, 540,541 shares for proceeds of $1.0 million under a common stock purchase agreement, as amended. In connection with this sale, we issued 120,000 shares of our common stock to Fusion Capital as an additional commitment fee. The agreement with Fusion Capital expired on March 1, 2011.

 

  b. Stock Warrants: At December 31, 2012, there are 11.5 million warrants outstanding to purchase our common stock. The warrants are exercisable at prices ranging from $0.46 to $2.375 per share with a weighted average exercise price per share of $0.68.

 

The following table summarizes information about our outstanding warrants at December 31, 2012:

 

    Exercise Price     Number of Warrants     Expiration Date
Series X   $ 0.46       8,333,333     December 2013
Series AA     0.97       2,400,000     July 2014
Series BB     2.00       300,000     July 2015
Series EE     2.375       134,211     August 2015
Series FF     1.97       30,000     December 2015
Series GG     2.10       333,333     December 2016
    $ 0.68       11,530,877      

 

During 2010, a Bupp Investor exercised 120,000 Series V warrants in exchange for issuance of 120,000 shares of our common stock, resulting in gross proceeds of $37,200. Also during 2010, certain outside investors exercised a total of 60,000 Series Z warrants on a cashless basis in exchange for issuance of 37,778 shares of our common stock.

 

In July 2010, we issued five-year Series BB Warrants to purchase 300,000 shares of our common stock at an exercise price of $2.00 per share to an investment advisory firm in connection with a consulting agreement.

 

 

During 2012, Montaur exercised 6,000,000 Series W warrants in exchange for issuance of 6,000,000 shares of our common stock, resulting in gross proceeds of $1,920,000.

 

See Note 12 for a discussion of Series V, Series Z, Series CC, and Series DD warrant transactions during 2012.

 

  c. Common Stock Reserved: As of December 31, 2012, we have reserved 38,713,946 shares of authorized common stock for the exercise of all outstanding options, warrants, convertible preferred stock and convertible debt.