19. SUBSEQUENT EVENTS

Completion of Public Offering of Securities

On June 13, 2012, pursuant to securities purchase agreements with investors dated June 7, 2012, the Company completed a registered public offering of 5,420,800 shares of its common stock, warrants to purchase up to an aggregate of 2,710,400 shares of its common stock at an exercise price of $1.25 per share, expiring five years from issuance, and warrants to purchase up to an aggregate of 5,420,800 shares of its common stock at an exercise price of $1.00, exercisable for 90 days from issuance, for total gross proceeds of $5,420,800. The net proceeds of the offering, after deducting approximately $379,000 in placement agent fees and approximately $200,000 in other estimated transaction expenses, are estimated to be approximately $4.8 million.

Dismissal of Class Action Litigation

On June 11, 2012, the class action litigation pending against the Company (see Note 14) was dismissed with prejudice. The plaintiffs did not file a notice of appeal prior to the expiration of the deadline for such filing on July 13, 2012.