Annual report pursuant to section 13 and 15(d)

24. Subsequent Events

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24. Subsequent Events
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
24. Subsequent Events

At a closing held on January 24, 2014 (the “Second Closing”), the Company accepted subscriptions from and issued to a total of 39 accredited investors an aggregate of 4,358 shares of its Series B-2 Preferred Stock and Investor Warrants to purchase 13,945,600 shares of the Company’s common stock and received gross cash proceeds of $4,358,000.  The proceeds, net of transaction expenses, will be used for general corporate purposes.   The Series B-2 Preferred Stock and Investor Warrants issued to Investors in the Second Closing contain terms that are identical to those described in note 14. In addition, since the Investor Warrants issued in the Second Closing are not indexed to the Company’s common stock, the Company recognized a derivative liability associated with these warrants in the amount of $1.3 million.

 

On March 28, 2014, the Company held its 2013 Annual Meeting of Stockholders (the “Annual Meeting”) at which, among other things, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 550,000,000 to 900,000,000. The amendment was filed with the Secretary of State of Delaware on March 28, 2014. Upon such filing, the Share Authorization Date was fixed, the Series B-2 Preferred Stock became convertible in accordance with its terms and the Investor Warrants became exercisable.