Quarterly report pursuant to Section 13 or 15(d)

Securities Purchase Agreement

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Securities Purchase Agreement
 3 Months Ended
Jan. 31, 2014
Notes to Financial Statements  
Securities Purchase Agreement

(10) Securities Purchase Agreements

 

On May 11, 2011, the Company and certain investors entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company agreed to sell an aggregate of 295,833 shares of its Common Stock and warrants to purchase a total of 221,875 shares of its Common Stock to such investors for aggregate net proceeds, after deducting fees to the Placement Agent and other offering expenses payable by the Company, of approximately $2,998,000. The Common Stock and warrants were sold in fixed combinations, with each combination consisting of one share of Common Stock and 0.75 of one warrant, with each whole warrant exercisable for one share of Common Stock. The purchase price was $11.28 per fixed combination. The warrants became exercisable six months and one day following the closing date of the Offering and will remain exercisable for five years thereafter at an exercise price of $13.56 per share. The exercise price of the warrants is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions. The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s Common Stock. After the one year anniversary of the initial exercise date of the warrants, the Company has the right to call the warrants for cancellation for $.006 per share in the event that the volume weighted average price of the Company’s Common Stock for 20 consecutive trading days exceeds $27.12.

 

On September 18, 2013, the Company and certain investors entered into a securities purchase agreement (the “Purchase Agreement”) in connection with the Offering, pursuant to which the Company agreed to sell an aggregate of 350,931 shares of its common stock and warrants to purchase a total of 350,931 shares of its common stock to such investors for aggregate gross proceeds, before deducting fees to the Placement Agent and other estimated offering expenses payable by the Company, of approximately $807,000. The common stock and warrants were sold in fixed combinations, with each combination consisting of one share of common stock and one warrant, with each warrant exercisable for one share of common stock. The purchase price was $2.30 per fixed combination. On September 23, 2013, the offering of 350,000 shares and warrants was closed with net proceeds to the Company of $695,491 after accounting for all expenses of the offering.

 

The Company’s statement of stockholder’s equity for the nine month period ended January 31, 2014 is as follows:

 

    Number of
Common
Shares		     Common
Stock		     Additional
Paid-In
Capital		     (Accumulated
Deficit)		     Total
Stockholders’
Equity		  
Balance at April 30, 2013     1,754,662     $ 1,754,662     $ 19,287,931     $ (18,052,321 )   $ 2,990,272  
Issuance of shares under Registered Direct Offering     350,000       350,000       345,491               695,491  
Net loss                             (2,066,608 )     (2,066,608 )
Stock-based compensation expense                     43,399               43,399  
Balance at January 31, 2014     2,104,662     $ 2,104,662     $ 19,676,821     $ (20,118,929 )   $ 1,662,554