Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

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Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
12.
Subsequent Events 
 
Underwritten Public Offering
 
On April 3, 2017, the Company closed an underwritten public offering of 9,473,250 shares of its common stock at a price to the public of $0.40 per share. Proceeds from this offering were approximately $3.8 million before deducting underwriting and estimated offering expenses. The Company intends to use the net proceeds from this offering primarily for working capital, general corporate purposes, and to pay the Company’s monthly obligations under its credit agreement. The shares of common stock were issued pursuant to the Company’s shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission and declared effective on September 25, 2014.
 
On April 3, 2017, the Company issued warrants to purchase an aggregate of 236,831 of the Company’s common stock to the underwriter of this offering. These warrants are immediately exercisable, have an exercise price of $0.44, and expire on March 29, 2022. Pursuant to an anti-dilution provision provided in the warrants dated November 8, 2012 to purchase common stock at an initial exercise price of $2.19, the exercise price of these warrants was adjusted to the public offering price of $0.40. As of April 3, 2017, November 2012 warrants to purchase 362,293 shares of the Company’s common stock were outstanding. These warrants expire in November 2017.
 
Issuance of Additional Shares under the Securities Purchase Agreement
 
Under the Securities Purchase Agreement entered into in the Private Placement, the Company sold and issued to private investors 5,540,000 shares of its common stock at a purchase price of $0.50 per share. The Securities Purchase Agreement contains a “most-favored nation provision” that provides that if the Company, during 120 days from February 27, 2017, issues or sells any common stock or common stock equivalents reasonably believed to be more favorable in terms or conditions than those in the Private Placement, then the Company must amend the terms of the Securities Purchase Agreement to give these private investors the benefit of such favorable terms or conditions. In accordance with this provision, on April 11, 2017, the Company issued an aggregate of 380,717 shares of its common stock to these investors. The Company will issue 1,004,283 additional shares of its common stock if it obtains stockholder approval as required by the applicable rules and regulations of the NASDAQ Capital Market.
 
Amendment and Adjustments of the Perceptive Warrant
 
On April 6, 2017, the Company and Perceptive entered into an amendment and restatement of a warrant to reduce the exercise price from $0.50 to $0.47. The warrant is exercisable for 2,000,000 shares of the Company’s stock. Perceptive will not have the right to exercise the warrant to the extent that after giving effect to such exercise, Perceptive would beneficially own in excess of 9.99% of the common stock outstanding immediately after giving effect to such exercise.