x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
(State
or other jurisdiction of
incorporation
or organization)
|
36-3898269
(I.R.S.
Employer Identification No.)
|
Page
|
||
PART
I
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
Financial
Statements:
|
|
Unaudited
Condensed Balance Sheets
|
4
|
|
Unaudited
Condensed Statements of Operations
|
5
|
|
Unaudited
Condensed Statement of Stockholders’ Equity (Deficiency)
|
6
|
|
Unaudited
Condensed Statements of Cash Flows
|
8
|
|
Notes
to Unaudited Condensed Financial Statements
|
10
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
23
|
Item
3.
|
Quantitative
and Qualitative Disclosure About Market Risk
|
36
|
Item
4T.
|
Controls
and Procedures
|
36
|
PART
II
|
OTHER
INFORMATION
|
|
Item
1.
|
Legal
Proceedings
|
37
|
Item
1A.
|
Risk
Factors
|
37
|
Item
6.
|
Exhibits
|
37
|
Signatures
|
38
|
|
·
|
the
development of our product
candidates;
|
|
·
|
the
regulatory approval of our product
candidates;
|
|
·
|
our
use of clinical research centers and other
contractors;
|
|
·
|
our
ability to find collaborative partners for research, development and
commercialization of potential
products;
|
|
·
|
acceptance
of our products by doctors, patients or
payers;
|
|
·
|
our
ability to market any of our
products;
|
|
·
|
our
history of operating losses;
|
|
·
|
our
ability to compete against other companies and research
institutions;
|
|
·
|
our
ability to secure adequate protection for our intellectual
property;
|
|
·
|
our
ability to attract and retain key
personnel;
|
|
·
|
availability
of reimbursement for our product
candidates;
|
|
·
|
the
effect of potential strategic transactions on our
business;
|
|
·
|
our
ability to obtain adequate financing;
and
|
|
·
|
the
volatility of our stock price.
|
June
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(See
Note 1)
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 294,568 | $ | 106,023 | ||||
Restricted
cash
|
174,967 | 730,499 | ||||||
Other
current assets
|
55,311 | 37,718 | ||||||
Total
current assets
|
524,846 | 874,240 | ||||||
Investment
in Hedrin JV
|
268,314 | - | ||||||
Property
and equipment, net
|
6,009 | 9,072 | ||||||
Secured
12% notes payable issue costs
|
305,445 | 330,756 | ||||||
Other
assets
|
34,895 | 34,895 | ||||||
Total
assets
|
$ | 1,139,509 | $ | 1,248,963 | ||||
Liabilities
and Stockholders' Deficiency
|
||||||||
Current
Liabilities:
|
||||||||
Secured
10% notes payable
|
$ | - | $ | 70,000 | ||||
Accounts
payable
|
172,911 | 542,296 | ||||||
Accrued
expenses
|
785,333 | 874,072 | ||||||
Derivative
liability
|
838,889 | - | ||||||
Total
current liabilities
|
1,797,133 | 1,486,368 | ||||||
Secured
12% notes payable, net
|
1,583,685 | 1,174,107 | ||||||
Interest
payable on secured 12% notes payable
|
116,431 | 15,237 | ||||||
Exchange
obligation
|
3,949,176 | 2,949,176 | ||||||
Total
liabilities
|
7,446,425 | 5,624,888 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders’
deficiency:
|
||||||||
Preferred
stock, $.001 par value. Authorized 1,500,000 shares; no shares issued and
outstanding at June 30, 2009 and December 31, 2008
|
- | - | ||||||
Common
stock, $.001 par value. Authorized 300,000,000 shares; 70,624,232
shares issued and outstanding at June 30, 2009 and December 31,
2008
|
70,624 | 70,624 | ||||||
Additional
paid-in capital
|
54,916,893 | 54,821,379 | ||||||
Deficit
accumulated during the development stage
|
(61,294,433 | ) | (59,267,928 | ) | ||||
Total
stockholders’ deficiency
|
(6,306,916 | ) | (4,375,925 | ) | ||||
Total
liabilities and stockholders' deficiency
|
$ | 1,139,509 | $ | 1,248,963 |
Three
months ended June 30,
|
Six
months ended June 30,
|
Cumulative
period
from
August
6, 2001
(inception)
to
June
30,
|
||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
||||||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Costs
and expenses:
|
||||||||||||||||||||
Research
and development
|
6,644 | 565,728 | 51,580 | 1,365,799 | 28,343,415 | |||||||||||||||
General
and administrative
|
470,616 | 901,538 | 983,017 | 1,715,598 | 17,445,290 | |||||||||||||||
In-process
research and development charge
|
- | - | - | - | 11,887,807 | |||||||||||||||
Impairment
of intangible assets
|
- | - | - | - | 1,248,230 | |||||||||||||||
Loss
on disposition of intangible assets
|
- | - | - | - | 1,213,878 | |||||||||||||||
Total
operating expenses
|
477,260 | 1,467,266 | 1,034,597 | 3,081,397 | 60,138,620 | |||||||||||||||
Operating
loss
|
(477,260 | ) | (1,467,266 | ) | (1,034,597 | ) | (3,081,397 | ) | (60,138,620 | ) | ||||||||||
Other
(income) expense:
|
||||||||||||||||||||
Equity
in losses of Hedrin JV
|
95,900 | 87,718 | 231,686 | 107,593 | 481,686 | |||||||||||||||
Change
in fair value of derivative
|
746,667 | - | 816,667 | - | 688,889 | |||||||||||||||
Interest
and other income
|
(61,900 | ) | (132,772 | ) | (188,627 | ) | (187,429 | ) | (1,469,158 | ) | ||||||||||
Interest
expense
|
134,510 | - | 259,960 | - | 350,784 | |||||||||||||||
Realized
gain on sale of marketable equity securities
|
- | - | - | - | (76,032 | ) | ||||||||||||||
Total
other (income) expense
|
915,177 | (45,054 | ) | 1,119,686 | (79,836 | ) | (23,831 | ) | ||||||||||||
Net
loss
|
(1,392,437 | ) | (1,422,212 | ) | (2,154,283 | ) | (3,001,561 | ) | (60,114,789 | ) | ||||||||||
Preferred
stock dividends (including imputed amounts)
|
- | - | - | - | (1,179,644 | ) | ||||||||||||||
Net
loss applicable to common shares
|
$ | (1,392,437 | ) | $ | (1,422,212 | ) | $ | (2,154,283 | ) | $ | (3,001,561 | ) | $ | (61,294,433 | ) | |||||
Net
loss per common share:
|
||||||||||||||||||||
Basic
and diluted
|
$ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | ||||||||
Weighted
average shares of common stock outstanding:
|
||||||||||||||||||||
Basic
and diluted
|
70,624,232 | 70,624,232 | 70,624,232 | 70,624,232 |
Common
stock
shares
|
Common
stock
amount
|
Additional
paid
-in capital
|
Deficit
accumulated
during
development
stage
|
Other
|
Total
stockholders’
equity
(deficiency)
|
|||||||||||||||||||
Stock
issued at $0.0004 per share for subscription receivable
|
10,167,741 | $ | 10,168 | $ | (6,168 | ) | $ | - | $ | (4,000 | ) | $ | - | |||||||||||
Net
loss
|
- | - | - | (56,796 | ) | - | (56,796 | ) | ||||||||||||||||
Balance
at December 31, 2001
|
10,167,741 | 10,168 | (6,168 | ) | (56,796 | ) | (4,000 | ) | (56,796 | ) | ||||||||||||||
Proceeds
from subscription receivable
|
- | - | - | - | 4,000 | 4,000 | ||||||||||||||||||
Stock
issued at $0.0004 per share for license rights
|
2,541,935 | 2,542 | (1,542 | ) | - | 1,000 | ||||||||||||||||||
Stock
options issued for consulting services
|
- | - | 60,589 | - | (60,589 | ) | - | |||||||||||||||||
Amortization
of unearned consulting services
|
- | - | - | - | 22,721 | 22,721 | ||||||||||||||||||
Common
stock issued at $0.63 per share, net of expenses
|
3,043,332 | 3,043 | 1,701,275 | - | - | 1,704,318 | ||||||||||||||||||
Net
loss
|
- | - | (1,037,320 | ) | (1,037,320 | ) | ||||||||||||||||||
Balance
at December 31, 2002
|
15,753,008 | 15,753 | 1,754,154 | (1,094,116 | ) | (37,868 | ) | 637,923 | ||||||||||||||||
Common
stock issued at $0.63 per share, net of expenses
|
1,321,806 | 1,322 | 742,369 | - | 743,691 | |||||||||||||||||||
Effect
of reverse acquisition
|
6,287,582 | 6,287 | 2,329,954 | - | 2,336,241 | |||||||||||||||||||
Amortization
of unearned consulting costs
|
- | - | - | - | 37,868 | 37,868 | ||||||||||||||||||
Unrealized
loss on short-term investments
|
- | - | - | - | (7,760 | ) | (7,760 | ) | ||||||||||||||||
Payment
for fractional shares for stock combination
|
- | - | (300 | ) | - | (300 | ) | |||||||||||||||||
Preferred
stock issued at $10 per share, net of expenses
|
- | - | 9,045,176 | - | 1,000 | 9,046,176 | ||||||||||||||||||
Imputed
preferred stock dividend
|
418,182 | (418,182 | ) | - | ||||||||||||||||||||
Net
loss
|
- | - | - | (5,960,907 | ) | (5,960,907 | ) | |||||||||||||||||
Balance
at December 31, 2003
|
23,362,396 | 23,362 | 14,289,535 | (7,473,205 | ) | (6,760 | ) | 6,832,932 | ||||||||||||||||
- | ||||||||||||||||||||||||
Exercise
of stock options
|
27,600 | 27 | 30,073 | - | 30,100 | |||||||||||||||||||
Common
stock issued at $1.10, net of expenses
|
3,368,952 | 3,369 | 3,358,349 | - | 3,361,718 | |||||||||||||||||||
Preferred
stock dividend accrued
|
- | - | - | (585,799 | ) | 585,799 | - | |||||||||||||||||
Preferred
stock dividends paid by issuance of shares
|
- | - | 281,073 | - | (282,363 | ) | (1,290 | ) | ||||||||||||||||
Conversion
of preferred stock to common stock at $1.10 per share
|
1,550,239 | 1,551 | (1,380 | ) | - | (171 | ) | - | ||||||||||||||||
Warrants
issued for consulting services
|
- | - | 125,558 | - | (120,968 | ) | 4,590 | |||||||||||||||||
Amortization
of unearned consulting costs
|
- | - | - | - | 100,800 | 100,800 | ||||||||||||||||||
Unrealized
gain on short-term investments and reversal of unrealized loss on
short-term investments
|
- | - | - | - | 20,997 | 20,997 | ||||||||||||||||||
Net
loss
|
- | - | - | (5,896,031 | ) | - | (5,896,031 | ) | ||||||||||||||||
Balance
at December 31, 2004
|
28,309,187 | 28,309 | 18,083,208 | (13,955,035 | ) | 297,334 | 4,453,816 | |||||||||||||||||
Common
stock issued at $1.11 and $1.15, net of expenses
|
11,917,680 | 11,918 | 12,238,291 | - | - | 12,250,209 | ||||||||||||||||||
Common
stock issued to vendor at $1.11 per share in satisfaction of accounts
payable
|
675,675 | 676 | 749,324 | - | - | 750,000 | ||||||||||||||||||
Exercise
of stock options
|
32,400 | 33 | 32,367 | - | - | 32,400 | ||||||||||||||||||
Exercise
of warrants
|
279,845 | 279 | 68,212 | - | - | 68,491 | ||||||||||||||||||
Preferred
stock dividend accrued
|
- | - | - | (175,663 | ) | 175,663 | - | |||||||||||||||||
Preferred
stock dividends paid by issuance of shares
|
- | - | 477,736 | - | (479,032 | ) | (1,296 | ) | ||||||||||||||||
Conversion
of preferred stock to common stock at $1.10 per share
|
8,146,858 | 8,147 | (7,251 | ) | - | (896 | ) | - | ||||||||||||||||
Share-based
compensation
|
- | - | 66,971 | - | 20,168 | 87,139 | ||||||||||||||||||
Reversal
of unrealized gain on short-term investments
|
- | - | - | - | (12,250 | ) | (12,250 | ) | ||||||||||||||||
Stock
issued in connection with acquisition of Tarpan Therapeutics,
Inc.
|
10,731,052 | 10,731 | 11,042,253 | - | 11,052,984 | |||||||||||||||||||
Net
loss
|
- | - | - | (19,140,997 | ) | (19,140,997 | ) | |||||||||||||||||
Balance
at December 31, 2005
|
60,092,697 | 60,093 | 42,751,111 | (33,271,695 | ) | 987 | 9,540,496 | |||||||||||||||||
Cashless
exercise of warrants
|
27,341 | 27 | (27 | ) | - | - | ||||||||||||||||||
Share-based
compensation
|
- | - | 1,675,499 | - | 1,675,499 | |||||||||||||||||||
Unrealized
loss on short-term investments
|
- | - | - | - | (987 | ) | (987 | ) | ||||||||||||||||
Costs
associated with private placement
|
- | - | (15,257 | ) | - | - | (15,257 | ) | ||||||||||||||||
Net
loss
|
- | - | - | (9,695,123 | ) | - | (9,695,123 | ) | ||||||||||||||||
Balance
at December 31, 2006
|
60,120,038 | 60,120 | 44,411,326 | (42,966,818 | ) | - | 1,504,628 |
Common
stock
shares
|
Common
stock
amount
|
Additional
paid
-in capital
|
Deficit
accumulated
during
development
stage
|
Other
|
Total
stockholders’
equity
(deficiency)
|
|||||||||||||||||||
Common
stock issued at $0.84 and $0.90 per shares, net of
expenses
|
10,185,502 | $ | 10,186 | $ | 7,841,999 | $ | - | $ | - | $ | 7,852,185 | |||||||||||||
Common
stock issued to directors at $0.72 per share in satisfaction of accounts
payable
|
27,776 | 28 | 19,972 | - | - | 20,000 | ||||||||||||||||||
Common
stock issued in connection with in-licensing agreement at $0.90 per
share
|
125,000 | 125 | 112,375 | - | - | 112,500 | ||||||||||||||||||
Common
stock issued in connection with in-licensing agreement at $0.80 per
share
|
150,000 | 150 | 119,850 | - | - | 120,000 | ||||||||||||||||||
Exercise
of warrants
|
10,327 | 15 | 7,219 | - | - | 7,234 | ||||||||||||||||||
Cashless
exercise of warrants
|
5,589 | - | (6 | ) | - | - | (6 | ) | ||||||||||||||||
Share-based
compensation
|
- | - | 1,440,956 | - | - | 1,440,956 | ||||||||||||||||||
Warrants
issued for consulting
|
- | - | 83,670 | - | - | 83,670 | ||||||||||||||||||
Net
loss
|
- | - | - | (12,032,252 | ) | (12,032,252 | ) | |||||||||||||||||
Balance
at December 31, 2007
|
70,624,232 | 70,624 | 54,037,361 | (54,999,070 | ) | - | (891,085 | ) | ||||||||||||||||
Sale
of warrant
|
- | - | 150,000 | - | - | 150,000 | ||||||||||||||||||
Share-based
compensation
|
- | - | 463,890 | - | - | 463,890 | ||||||||||||||||||
Warrants
issued with secured 12% notes
|
- | - | 170,128 | - | - | 170,128 | ||||||||||||||||||
Net
loss
|
- | - | - | (4,268,858 | ) | - | (4,268,858 | ) | ||||||||||||||||
Balance
at December 31, 2008
|
70,624,232 | 70,624 | 54,821,379 | (59,267,928 | ) | - | (4,375,925 | ) | ||||||||||||||||
Cumulative
effect of a change in accounting principle
|
- | - | (150,000 | ) | 127,778 | - | (22,222 | ) | ||||||||||||||||
Balance
at January 1, 2009, as adjusted
|
70,624,232 | 70,624 | 54,671,379 | (59,140,150 | ) | - | (4,398,147 | ) | ||||||||||||||||
Share-based
compensation
|
- | - | 192,470 | - | - | 192,470 | ||||||||||||||||||
Warrants
issued with secured 12% notes
|
- | - | 46,125 | - | - | 46,125 | ||||||||||||||||||
Warrant
issued to placement agent
|
- | - | 6,919 | - | - | 6,919 | ||||||||||||||||||
Net
loss
|
- | - | - | (2,154,283 | ) | - | (2,154,283 | ) | ||||||||||||||||
Balance
at June 30, 2009
|
70,624,232 | $ | 70,624 | $ | 54,916,893 | $ | (61,294,433 | ) | $ | - | $ | (6,306,916 | ) |
Six
months ended June 30,
|
Cumulative period
from
August 6, 2001
(inception) to
June
30,
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
loss
|
$ | (2,154,283 | ) | $ | (3,001,561 | ) | $ | (60,114,789 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
Equity
in losses of Hedrin JV
|
231,686 | 107,593 | 481,686 | |||||||||
Share-based
compensation
|
192,470 | 295,664 | 4,021,343 | |||||||||
Amortization
of OID and issue costs on Secured 12% Notes
|
248,856 | - | 287,430 | |||||||||
Change
in fair value of derivative
|
816,667 | 688,889 | ||||||||||
Shares
issued in connection with in-licensing agreement
|
- | - | 232,500 | |||||||||
Warrants
issued to consultant
|
- | - | 83,670 | |||||||||
Amortization
of intangible assets
|
- | - | 145,162 | |||||||||
Gain
on sale of marketable equity securities
|
- | - | (76,032 | ) | ||||||||
Depreciation
|
3,063 | 15,631 | 224,994 | |||||||||
Non
cash portion of in-process research and development charge
|
- | - | 11,721,623 | |||||||||
Loss
on impairment and disposition of intangible assets
|
- | - | 2,462,108 | |||||||||
Other
|
- | 2,962 | 23,917 | |||||||||
Changes
in operating assets and liabilities, net of acquisitions:
|
- | |||||||||||
Decrease/(increase)
in restricted cash
|
555,532 | - | (174,967 | ) | ||||||||
Decrease/(increase)
in prepaid expenses and other current assets
|
(17,591 | ) | 80,311 | 2,935 | ||||||||
Decrease/(increase)
in other assets
|
- | - | (49,895 | ) | ||||||||
Increase/(decrease)
in accounts payable
|
(369,386 | ) | (662,139 | ) | 593,124 | |||||||
Increase/(decrease)
in accrued expenses
|
(88,739 | ) | 257,569 | 245,012 | ||||||||
Net
cash used in operating activities
|
(581,725 | ) | (2,903,970 | ) | (39,201,290 | ) | ||||||
Cash
flows from investing activities:
|
||||||||||||
Purchase
of property and equipment
|
- | (8,972 | ) | (239,608 | ) | |||||||
Cash
paid in connection with acquisitions
|
- | - | (26,031 | ) | ||||||||
Net
cash provided from the purchase and sale of short-term
investments
|
- | - | 435,938 | |||||||||
Investment
in JV
|
(13,620 | ) | - | |||||||||
Proceeds
from sale of license
|
- | - | 200,001 | |||||||||
Net
cash (used in) provided by investing activities
|
- | (22,592 | ) | 370,300 | ||||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from the Hedrin JV agreement
|
500,000 | 2,703,230 | 3,199,176 | |||||||||
Sale
of warrant
|
- | 150,000 | 150,000 | |||||||||
Repayment
of Secured 10% Notes
|
(70,000 | ) | - | |||||||||
Proceeds
from sale of Secured 12% Notes
|
340,270 | 1,345,413 | ||||||||||
Repayments
of notes payable to stockholders
|
- | - | (884,902 | ) | ||||||||
Proceeds
related to sale of common stock, net
|
- | - | 25,896,262 | |||||||||
Proceeds
from sale of preferred stock, net
|
- | - | 9,046,176 | |||||||||
Proceeds
from exercise of warrants and stock options
|
- | - | 138,219 | |||||||||
Other,
net
|
- | - | 235,214 | |||||||||
Net
cash provided by financing activities
|
770,270 | 2,853,230 | 39,125,558 | |||||||||
Net
(decrease) increase in cash and cash equivalents
|
188,545 | (73,332 | ) | 294,568 | ||||||||
Cash
and cash equivalents at beginning of period
|
106,023 | 649,686 | - | |||||||||
Cash
and cash equivalents at end of period
|
$ | 294,568 | $ | 576,354 | $ | 294,568 |
Six
months ended June 30,
|
Cumulative
period
from
August
6, 2001
(inception)
to
June
30,
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Interest
paid
|
$ | - | $ | - | $ | 26,033 | ||||||
Supplemental
disclosure of noncash investing and financing activities:
|
||||||||||||
Investment
in Hedrin JV
|
$ | 500,000 | $ | 250,000 | $ | 750,000 | ||||||
Warrants
issued with Secured 12% Notes
|
53,044 | - | 223,172 | |||||||||
Common
stock issued in satisfaction of accounts payable
|
- | - | 770,000 | |||||||||
Imputed
and accrued preferred stock dividend
|
- | - | 1,179,644 | |||||||||
Conversion
of preferred stock to common stock
|
- | - | 1,067 | |||||||||
Preferred
stock dividends paid by issuance of shares
|
- | - | 759,134 | |||||||||
Issuance
of common stock for acquisitions
|
- | - | 13,389,226 | |||||||||
Issuance
of common stock in connection with in-licensing agreement
|
- | - | 232,500 | |||||||||
Marketable
equity securities received in connection with sale of
license
|
- | - | 359,907 | |||||||||
Warrants
issued to consultant
|
- | - | 83,670 | |||||||||
Net
liabilities assumed over assets acquired in business
combination
|
- | - | (675,416 | ) | ||||||||
Cashless
exercise of warrants
|
- | - | 33 |
1.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
LIQUIDITY
|
3.
|
COMPUTATION
OF NET LOSS PER COMMON SHARE
|
4.
|
SHARE-BASED
COMPENSATION
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
General
and administrative expense:
|
||||||||||||||||
Share-based
employee compensation cost
|
$ | 87,981 | $ | 75,362 | $ | 191,700 | $ | 215,405 | ||||||||
Share-based
consultant and non-employee cost
|
39 | - | 77 | - | ||||||||||||
88,020 | 75,362 | 191,777 | 215,405 | |||||||||||||
Research
and development expense:
|
||||||||||||||||
Share-based
employee compensation cost
|
- | 27,735 | - | 80,000 | ||||||||||||
Share-based
consultant and non-employee cost
|
353 | (287 | ) | 693 | 259 | |||||||||||
353 | 27,448 | 693 | 80,259 | |||||||||||||
Total
share-based cost
|
$ | 88,373 | $ | 102,810 | $ | 192,470 | $ | 295,664 |
Six
months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Expected
volatility
|
93 | % | 92 | % | ||||
Dividend
yield
|
- | - | ||||||
Expected
term (in years)
|
6 | 6 | ||||||
Risk-free
interest rate
|
2.08 | 2.81 |
Shares
|
Weighted
average
exercise
price
|
Weighted
Average
Remaining
Contractual
Term
(years)
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Outstanding
at December 31, 2008
|
10,633,836 | $ | 0.938 | |||||||||||||
Granted
|
- | |||||||||||||||
Exercised
|
- | |||||||||||||||
Cancelled
|
- | |||||||||||||||
Outstanding
at June 30, 2009
|
10,633,836 | $ | 0.938 | 6.440 | $ | - | ||||||||||
Exercisable
at June 30, 2009
|
9,298,010 | $ | 1.021 | 6.160 | $ | - | ||||||||||
Weighted-average
fair value of options granted during the six month period ended June 30,
2009
|
None
issued
|
5.
|
COMMITMENTS
AND CONTINGENCIES
|
6.
|
JOINT
VENTURE
|
7.
|
SECURED
10% NOTES PAYABLE
|
8.
|
SECURED
12% NOTES PAYABLE
|
Shares Issuable
Upon Exercise
of Nordic's Put
|
Additional
Shares Issuable
Upon Exercise
of Nordic's Put,
if Certain
Conditions Are
Met
|
Shares Issuable
Upon Exercise
of Nordic's
Warrant
|
Total Shares
Issuable Upon
Exercise of
Nordic's Put and
Warrant
|
|||||||||||||
Before
the 12% Notes Transaction
|
26,785,714 | 8,928,572 | 7,142,857 | 42,857,143 | ||||||||||||
Antidilution
shares
|
14,880,953 | 4,960,317 | 3,968,254 | 23,809,524 | ||||||||||||
After
the 12% Notes Transaction
|
41,666,667 | 13,888,889 | 11,111,111 | 66,666,667 |
9.
|
LICENSE
AGREEMENTS
|
10.
|
DERIVATIVE
LIABILITY
|
Six Months ended June 30,
|
Increase
|
%
Increase
|
||||||||||||||
2009
|
2008
|