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NOTE 5: CONVERTIBLE NOTES AND DETACHABLE WARRANTS
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3 Months Ended |
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Mar. 31, 2012
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| Debt Disclosure [Text Block] |
NOTE
5: CONVERTIBLE
NOTES AND DETACHABLE WARRANTS
10%
Senior Convertible Notes due August 15, 2011
Pursuant
to the terms of a Securities Purchase Agreement dated August
14, 2008, the Company issued and sold to a group of
institutional investors 10% senior convertible notes in the
aggregate principal amount of $5.0 million due August 15,
2011. These notes were convertible at any time prior to
August 15, 2011 at a conversion price of $2.24 per share. As
part of the Company’s analysis of the convertible debt
and related warrants, the Company reviewed and followed the
guidance of FASB ASC 718-10, ASC 815-40-15, ASC 470-20-30 and
ASC 105-10-05.
As
part of the securities purchase agreement, the Company issued
to the purchasers of its 10% senior convertible notes due
August 15, 2011, warrants to purchase an aggregate of 558,036
shares of common stock at any time prior to August 15, 2011
at a price of $2.24 per share. The warrants were classified
in 2008 as equity based on relative fair value. The relative
fair value of these warrants was determined in 2008 using the
Black-Scholes pricing model.
As
of August 15, 2011, the Notes were paid in full and all
associated warrants had expired.
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