On June 1, 2015, the Board of Directors of the Company approved an increase of 250,000 shares authorized for issuance under the 2006 Stock Plan as of April 1, 2015, and an increase of 2,256,762 shares authorized for issuance under the 2011 Stock Plan as of April 1, 2015. 

Pursuant to an At-the-Market Issuance Sales Agreement with MLV & Co. LLC dated April 2, 2014, 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 through MLV acting as the Company’s sales agent. The Company sold 500,000 shares of common stock on June 9, 2015, for gross proceeds of $907,000 and net proceeds of $879,000 after deducting commissions and other offering expenses. Between July 6 and July 8, 2015, the Company sold 275,000 shares of common stock, for gross proceeds of $461,000 and net proceeds of $447,000 after deducting commissions and other offering expenses. The Company has sold an aggregate 1,242,934 shares of common stock to date, for gross proceeds of $2,811,000 and net proceeds of $2,667,000 after deducting commissions and other offering expenses under the agreement with MLV. The Company pays 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.

On June 29, 2015, the stockholders of the Company approved a reverse stock split of the Company’s outstanding common stock and to proportionally decrease the total number of shares that the Company is authorized to issue at a whole number ratio in the range of 1-for-5 to 1-for-9, such ratio to be determined in the discretion of the Company’s Board of Directors, and authorized the Company’s Board of Directors to effect the reverse stock split, if their judgment it is necessary, at any time until June 29, 2016, upon which date the resolution lapses.