11. Subsequent Events

Secondary Offering

In July, 2016, the Company completed a secondary offering, in which the Company sold 5,258,000 Class A Units, including 1,650,000 units sold pursuant to the exercise by the underwriters of their over-allotment option, priced at $1.00 per unit, and 7,392 Class B Units, priced at $1,000 per unit. Each Class A Unit consisted of one share of common stock and one warrant to purchase one share of common stock. Each Class B Unit consisted of one share of preferred stock convertible into 1,000 shares of common stock and warrants to purchase 1,000 shares of common stock. The securities comprising the units were immediately separable and were issued separately. In total, the Company issued 5,258,000 shares of common stock, 7,392 shares of preferred stock convertible into 7,392,000 shares of common stock, and warrants to purchase 12,650,000 shares of common stock at a fixed exercise price of $1.00 per share. The Company received proceeds of approximately $11.3 million, net of underwriting and other offering costs.

Subsequent to the secondary offering, 5,018 shares of convertible preferred stock have been converted into 5,018,000 shares of common stock.

Magna Note

In July 2016, the Company paid Magna $888,000 to redeem in full the remaining principal balance and interest related to the Magna Note.

Riverside Debt

In July 2016, the Company paid Riverside $840,000 to redeem in full the remaining principal balance and interest related to the Riverside Debt.