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Capital Stock Transactions
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3 Months Ended | |||
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Jun. 30, 2011
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| Capital Stock Transactions |
Preferred Stock
There
are 100 shares of Series A Convertible Preferred
Stock(“Series A”) authorized, issued and outstanding.
The Series A has a par value of $0.0001 per share. The Series A
holders are entitled to: (1) vote on an equal per share basis as
common stock, (2) dividends paid to the common stock holders on an
as if-converted basis and (3) a liquidation preference equal to the
greater of $10 per share of Series A (subject to adjustment) or
such amount that would have been paid to the common stock holders
on an as if-converted basis. The holder of the Series
A has agreed not to exercise certain rights until such
time as the Amended ValueAct Note has been repaid in
full.
Common Stock and Warrants
On
April 1, 2011, 347,244 shares of common stock of the Company were
issued to two former employees of the Company, as compensation, at
the closing market price on that date of 58 cents per share,
resulting in a total value of $201. In addition, the employees each
agreed to cancel options to purchase 173,622 shares of common stock
in connection with their respective termination agreements which
were valued at $132. The Company determined the fair value of the
cancelled options using the Black-Scholes option pricing model and
the following assumptions: expected life of 5.11
years, a risk free interest rate of 1.76%, a dividend yield of
0% and volatility of 75%. The net value of the termination was
$69.
On
April 6, 2011, the Company issued 150,000 shares of common stock of
the Company to a vendor. The shares vest over a one year
period. The shares were valued at the closing market
price on that date of 55 cents per share. The overall
value was determined to be $83, of which $22 was recorded in the
period ended June 30, 2011.
On
April 6, 2011, the Company issued warrants to purchase 75,000
shares of the Company’s common stock to a vendor, as
compensation for services rendered, at 25 cents per share. The
Company determined the fair value of the warrants issued to be a
$28, using the Black-Scholes option pricing model and the following
assumptions: expected life of 3.00 years, a risk
free interest rate of 1.36%, a dividend yield of 0% and
volatility of 75%. The warrants vest over a six
month period and $14 of expense has been recorded in the period
ended June 30, 2011.
In
May 2011, 150,000 shares of common stock of the Company were issued
to a vendor as a settlement, at the closing market price on that
date of 40 cents per share, resulting in a total value of
$60.
In
June 2011, the Company entered into a consulting agreement,
pursuant to which, the Company issued warrants to purchase 150,000
shares of the Company’s common stock at an exercise price of
47 cents per share. The Company determined the fair value of the
warrants issued to be $33, using the Black-Scholes option pricing
model and the following assumptions: expected life
of 3.00 years, a risk free interest rate of 0.74%, a
dividend yield of 0% and volatility of 75%. The options vest
over a one year period and $1 of expense has been
recorded in the period ended June 30, 2011.
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