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7. Stockholders' Equity
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9 Months Ended |
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Dec. 31, 2014
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| Stockholders' Equity | |
| Stockholders' Equity |
Authorized Capital
On December 4, 2014, the Company held a special meeting of stockholders, which approved an amendment to the Company’s Restated Certificate of Incorporation, as amended, increasing the number of authorized common stock, $0.0001 par value per share, from 14,285,715 shares to a total of 30,000,000 shares. The total number of preferred shares authorized was not increased and remains at 714,286 authorized shares.
Registered Direct Sale of Common Stock
On April 2, 2014, the Company entered into an At-the-Market Issuance Sales Agreement with MLV & Co. LLC (“MLV”) under which the Company may issue and sell shares of common stock having an aggregate offering price of up to $9,159,000 from time to time with MLV acting as the Company’s sales agent. The Company will pay MLV a commission rate equal to 3.0% of the gross proceeds from the sale of any shares of common stock sold through MLV as agent under the Sales Agreement. During the three months ended December 31, 2014, the Company sold 75,278 shares of common stock under this agreement which resulted in gross proceeds of $159,000 and net proceeds of $127,000 (after deducting commissions, legal and accounting costs). During the nine months ended December 31, 2014, the Company sold 467,934 shares of common stock under this agreement which resulted in gross proceeds of $1,443,000 and net proceeds of $1,341,000 (after deducting commissions, legal and accounting costs).
Common Stock Issued to Settle Fees for Services Provided
On April 24, 2009, the Company entered into an agreement with Advocos LLC, a contract sales organization that serves as part of the Company’s sales force, for the sale of the Company’s tissue care products in the United States. Pursuant to the agreement, the Company agreed to pay the contract sales organization a monthly fee and commissions in return for providing a direct salesforce and management of the salesforce. The Company agreed to issue the contract sales organization cash and or shares of common stock as compensation for its services. On September 30, 2014, the Company issued 32,501 shares of common stock valued at $76,000 in connection with this agreement to settle outstanding fees of which $14,000 was outstanding at March 31, 2014. The Company has determined that the fair value of the common stock, which was calculated when the shares were issued, was more readily determinable than the fair value of the services rendered. Accordingly, the Company recorded the fair value of the stock as expense. During the nine months ended December 31, 2014, the Company recorded $62,000 of expense settled with common stock. The expense was recorded as selling, general and administrative expense in the accompanying condensed consolidated statements of comprehensive loss. |