Quarterly report pursuant to sections 13 or 15(d)

9. Equity Transactions

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9. Equity Transactions
9 Months Ended
Sep. 30, 2013
Notes to Financial Statements  
9. Equity Transactions

At various times during the first nine months of 2013, the Company entered into subscription agreements with 47 accredited investors, under which the Company issued an aggregate of 45,960,218 shares of common stock and five-year warrants to purchase 22,980,110 shares of the Company’s common stock for aggregate consideration of $3.6 million.   The warrants are exercisable at 125% of the volume weighted-average price of the Company’s common stock for the 10 trading days prior to the date of closing.

 

Also during the first nine months of 2013, an executive officer of the Company converted $102,500 due to him into 1,177,965 shares of common stock and warrants to purchase 588,983 shares of the Company’s common stock, and another director of the Company converted $5,733 due to him into 76,237 shares of common stock and warrants to purchase 38,119 shares of common stock.  The warrants are exercisable at 125% of the volume weighted-average price of the Company’s common stock for the 10 trading days prior to the date of conversion.  In connection with these conversions, and the conversions discussed in note 8, the Company recognized a loss on the extinguishment of debt for the three and nine months ended September 30, 2013 in the amount of $291,995 and $442,574, respectively.

 

Effective as of September 30, 2013, all of the Company’s outstanding Series B-1 Preferred Stock was converted into 62,672,008 shares of the Company’s common stock in accordance with the terms of the Series B-1 Preferred Stock.

 

During the nine months ended September 30, 2013, the Company issued an aggregate of 686,381 shares of common stock to third parties for services valued at $96,845.