0001001316 us-gaap:ConvertibleNotesPayableMember 2010-03-08 0001001316 tgtx:IconClinicalResearchMember 2010-03-08 0001001316 us-gaap:ConvertibleNotesPayableMember 2010-03-01 2010-03-08 0001001316 tgtx:IconClinicalResearchMember 2010-03-01 2010-03-08 0001001316 tgtx:ManhattanAndAristonPharmaceuticalsMergerMember 2009-04-01 2010-03-31 0001001316 tgtx:ManhattanAndAristonPharmaceuticalsMergerMember 2010-03-31 0001001316 tgtx:IconClinicalResearchMember 2011-03-31 0001001316 tgtx:BeforeAmendmentMember tgtx:IconClinicalResearchMember 2011-03-31 0001001316 tgtx:AfterAmendmentMember tgtx:IconClinicalResearchMember 2011-03-31 0001001316 2011-12-31 0001001316 2012-01-01 2012-03-31 0001001316 2012-01-01 2012-12-31 0001001316 2012-12-31 0001001316 tgtx:IconConvertibleNotesMember 2012-12-31 0001001316 us-gaap:FairValueInputsLevel1Member 2012-12-31 0001001316 us-gaap:FairValueInputsLevel2Member 2012-12-31 0001001316 us-gaap:FairValueInputsLevel3Member 2012-12-31 0001001316 tgtx:ConvertibleNotesMember 2012-12-31 0001001316 2013-01-01 2013-03-31 0001001316 tgtx:IconClinicalResearchMember 2013-01-01 2013-03-31 0001001316 us-gaap:AdditionalPaidInCapitalMember 2013-01-01 2013-03-31 0001001316 us-gaap:AccumulatedDeficitDuringDevelopmentStageMember 2013-01-01 2013-03-31 0001001316 us-gaap:CommonStockMember 2013-01-01 2013-03-31 0001001316 tgtx:LfbGroupMember 2013-01-01 2013-03-31 0001001316 us-gaap:RestrictedStockMember 2013-01-01 2013-03-31 0001001316 2013-03-31 0001001316 tgtx:IconClinicalResearchMember 2013-03-31 0001001316 tgtx:ManhattanAndAristonPharmaceuticalsMergerMember 2013-03-31 0001001316 tgtx:LfbGroupMember 2013-03-31 0001001316 tgtx:IconConvertibleNotesMember 2013-03-31 0001001316 us-gaap:FairValueInputsLevel1Member 2013-03-31 0001001316 us-gaap:FairValueInputsLevel2Member 2013-03-31 0001001316 us-gaap:FairValueInputsLevel3Member 2013-03-31 0001001316 tgtx:ConvertibleNotesMember 2013-03-31 0001001316 tgtx:CorporateMilestoneMember 2013-03-31 0001001316 tgtx:NonEmployeeRestrictedStockMember 2013-03-31 0001001316 tgtx:ResearchDevelopmentExpensesMember 2013-03-31 0001001316 tgtx:EquityIncentivePlansMember 2013-03-31 0001001316 2011-12-01 2013-03-31 0001001316 2012-03-31 0001001316 us-gaap:AdditionalPaidInCapitalMember 2012-12-31 0001001316 us-gaap:AdditionalPaidInCapitalMember 2013-03-31 0001001316 us-gaap:PreferredStockMember 2012-12-31 0001001316 us-gaap:PreferredStockMember 2013-03-31 0001001316 us-gaap:AccumulatedDeficitDuringDevelopmentStageMember 2012-12-31 0001001316 us-gaap:AccumulatedDeficitDuringDevelopmentStageMember 2013-03-31 0001001316 us-gaap:CommonStockMember 2012-12-31 0001001316 us-gaap:CommonStockMember 2013-03-31 0001001316 us-gaap:ContingentlyIssuableSharesMember 2012-12-31 0001001316 us-gaap:ContingentlyIssuableSharesMember 2013-03-31 0001001316 us-gaap:TreasuryStockMember 2012-12-31 0001001316 us-gaap:TreasuryStockMember 2013-03-31 0001001316 us-gaap:RestrictedStockMember 2012-12-31 0001001316 us-gaap:RestrictedStockMember 2013-03-31 0001001316 2011-11-30 xbrli:shares iso4217:USD iso4217:USDxbrli:shares xbrli:pure TG THERAPEUTICS, INC. 0001001316 --12-31 Smaller Reporting Company tgtx 10-Q false 2013-03-31 Q1 2013 9748491 16455995 15188167 20923750 0 1990759 2375138 2147985 29128 225440 18475882 17788745 1164 1049 2797600 2797600 799391 799391 22074037 21386785 677778 677778 0 677778 677778 0 1117397 1387882 145000 115500 152381 152381 123511 139421 2216067 2472962 1828571 1790476 2479098 0 2479098 2424260 0 2424260 6523736 6687698 0 0 25821 26323 6 6 34534805 37356700 84538 84538 18925793 22599404 15550301 14699087 34534805 37356700 0 0 -18925793 -22599404 25821 26323 6 6 -84538 -84538 22074037 21386785 0.001 0.001 10000000 10000000 0 0 0 0 0.001 0.001 500000000 500000000 25820738 26322671 25820738 26322671 13526 13526 0 38095 57143 16578000 0 16875000 0 354703 810512 163353 1215202 357000 5239667 16741353 1569905 22925179 188509 1530774 4583641 455492 651457 2934737 644001 2182231 7518378 0 0 1104700 17385354 3752136 31548257 -17385354 -3714041 -31491114 3668 1502 17289 0 0 272232 220149 231472 1144313 205297 270400 1930272 -11184 40430 1075480 -17396538 -3673611 -30415634 0 330000 0 330000 -17396538 -3673611 -3673611 -30745634 -7140448 0 -8146230 -10256090 -3673611 -22599404 -2.03 -0.17 5061399 21953803 0 0 25820738 26322671 13526 13526 0 -86 86 85524 188509 1885477 5394153 16578000 0 16875000 0 115 350 0 -54838 -870537 -8147 580691 2509808 -254604 240985 1245052 14852 15910 84578 0 -38095 1942857 -861634 -2204748 -7479289 0 0 1399 0 0 10386 0 0 8987 275188 200000 0 200001 0 0 9824682 12257309 0 12257309 20416 0 75903 0 0 84538 12036893 936920 22658469 11175259 -1267828 15188167 0 0 55271 55487 0 61138 <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 1 &#8211; ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Description of Business</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We are a biopharmaceutical company focused on the acquisition, development and commercialization of innovative and medically important pharmaceutical products for the treatment of cancer and other underserved therapeutic needs. We aim to acquire rights to these technologies by licensing or otherwise acquiring an ownership interest, funding their research and development and eventually either out-licensing or bringing the technologies to market. Currently, the Company is developing therapies for hematologic malignancies: TG-1101 (ublituximab), a novel, third generation monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes; and TGR-1202, an orally available PI3K delta inhibitor. We also hold the development rights to AST-726, a nasally delivered product for the treatment of Vitamin B12 deficiency.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The accompanying unaudited condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) for interim financial information and with the instructions to Form 10-Q and Article&#160;10 of Regulation&#160;S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair presentation of the consolidated financial statements have been included. Nevertheless, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On December 29, 2011, the Company entered into and consummated an exchange transaction agreement (the &#8220;Exchange Transaction&#8221;) with Opus Point Partners, LLC (&#8220;Opus&#8221;) and TG Biologics, Inc. (formerly known as TG Therapeutics, Inc.) (&#8220;TG Bio&#8221;). The stockholders of TG Bio received the majority of the voting shares of the Company, therefore, the merger was accounted for as a reverse acquisition whereby TG Bio was the accounting acquirer (legal acquiree) and the Company was the accounting acquiree (legal acquirer) under the acquisition method of accounting. TG Bio was incorporated in Delaware in November 2010, but did not commence operations until April 2011.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On April 30, 2012, the Company filed a Certificate of Amendment to its Certificate of Incorporation to change its name from Manhattan Pharmaceuticals, Inc. (&#8220;Manhattan&#8221;) to TG Therapeutics, Inc. In conjunction with this change, the subsidiary formerly named TG Therapeutics, Inc. filed a Certificate of Amendment changing its name to TG Biologics, Inc.</p> <p style="text-align: left; background-color: white; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Liquidity and Capital Resources</i></b></p> <p style="text-align: left; background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; background-color: white; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have incurred operating losses since our inception and expect to continue to incur operating losses for the foreseeable future and may never become profitable. As of March 31, 2013, we have an accumulated deficit of $22,599,404.</p> <p style="text-align: left; background-color: white; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our major sources of cash have been proceeds from the private placement of equity securities, the upfront payment from our Sublicense Agreement with Ildong Pharmaceutical Co. Ltd. (&#8220;Ildong&#8221;), and warrant exercises. We have not yet commercialized any of our drug candidates and cannot be sure if we will ever be able to do so. Even if we commercialize one or more of our drug candidates, we may not become profitable. Our ability to achieve profitability depends on a number of factors, including our ability to obtain regulatory approval for our drug candidates, successfully complete any post-approval regulatory obligations and successfully commercialize our drug candidates alone or in partnership. We may continue to incur substantial operating losses even if we begin to generate revenues from our drug candidates.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of March 31, 2013, we had $15,188,167 in cash and cash equivalents. We currently anticipate that our cash and cash equivalents to be sufficient to fund our anticipated operating cash requirements for approximately 15-18 months from March 31, 2013. The actual amount of cash that we will need to operate is subject to many factors, including, but not limited to, the timing, design and conduct of clinical trials for our drug candidates. We are dependent upon significant future financing to provide the cash necessary to execute our current operations, including the commercialization of any of our drug candidates.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our Common Stock is quoted on <font style="color: black;">the OTC Bulletin Board<font style="font-family: times new roman, times, serif;"> </font></font>and trades under the symbol &#8220;TGTX.&#8221;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We treat liquid investments with original maturities of less than three months when purchased as cash and cash equivalents.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Revenue Recognition</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize license revenue in accordance with the revenue recognition guidance of the FASB Accounting Standards Codification, or Codification. We analyze each element of our licensing agreement to determine the appropriate revenue recognition. The terms of the license agreement may include payments to us of non-refundable up-front license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. We recognize revenue from upfront payments over the period of significant involvement under the related agreements unless the fee is in exchange for products delivered or services rendered that represent the culmination of a separate earnings process and no further performance obligation exists under the contract. We recognize milestone payments as revenue upon the achievement of specified milestones only if (1) the milestone payment is non-refundable, (2) substantive effort is involved in achieving the milestone, (3) the amount of the milestone is reasonable in relation to the effort expended or the risk associated with achievement of the milestone, and (4) the milestone is at risk for both parties. If any of these conditions are not met, we defer the milestone payment and recognize it as revenue over the estimated period of performance under the contract.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Research and Development Costs</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Generally, research and development costs are expensed as incurred. Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and amortized over the period that the goods are delivered or the related services are performed, subject to an assessment of recoverability. We make estimates of costs incurred in relation to external clinical research organizations, or CROs, and clinical site costs. We analyze the progress of clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of the amount expensed and the related prepaid asset and accrued liability. Significant judgments and estimates must be made and used in determining the accrued balance and expense in any accounting period. We review and accrue CRO expenses and clinical trial study expenses based on work performed and rely upon estimates of those costs applicable to the stage of completion of a study. Accrued CRO costs are subject to revisions as such trials progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. With respect to clinical site costs, the financial terms of these agreements are subject to negotiation and vary from contract to contract. Payments under these contracts may be uneven, and depend on factors such as the achievement of certain events, the successful recruitment of patients, the completion of portions of the clinical trial or similar conditions. The objective of our policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended. As such, expense accruals related to clinical site costs are recognized based on our estimate of the degree of completion of the event or events specified in the specific clinical study or trial contract.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>In-Process Research and Development</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: italic 10pt times new roman, times, serif;"><font style="font-style: normal; font-weight: normal;">All acquired research and development projects are recorded at their fair value as of the date acquisition. The fair values are assessed as of the balance sheet date to ascertain if there has been any impairment of the recorded value. If there is an impairment, the asset is written down to its current fair value by the recording of an expense. Impairment is tested on an annual basis, and consists of a comparison of the fair value of the in-process research and development with its carrying amount.</font></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Income Taxes</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. If the likelihood of realizing the deferred tax assets or liability is less than &#8220;more likely than not,&#8221; a valuation allowance is then created.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We, and our subsidiaries, file income tax returns in the U.S. Federal jurisdiction and in various states. We have tax net operating loss carryforwards that are subject to examination for a number of years beyond the year in which they were generated for tax purposes. Since a portion of these net operating loss carryforwards may be utilized in the future, many of these net operating loss carryforwards will remain subject to examination.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize interest and penalties related to uncertain income tax positions in income tax expense.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Stock-Based Compensation</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize all share-based payments to employees and to non-employee directors as compensation for service on our board of directors as compensation expense in the consolidated financial statements based on the fair values of such payments. Stock-based compensation expense recognized each period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">For share-based payments to consultants and other third-parties, compensation expense is determined at the &#8220;measurement date.&#8221; The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated based on the then current fair value, at each subsequent reporting date.</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Basic and Diluted Net (Loss) Income Per Share of Common Stock</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Basic net income (loss) per share of Common Stock is calculated by dividing net income (loss) applicable to the Common Stock by the weighted-average number of the Common Stock outstanding for the period. Diluted net loss per share of Common Stock is the same as basic net income (loss) per share of Common Stock since potentially dilutive securities from stock options, stock warrants and convertible preferred stock would have an antidilutive effect either because the Company incurred a net loss during the period presented or because such potentially dilutive securities were out of the money and the Company realized net income during the period presented. The amounts of potentially dilutive securities excluded from the calculation were 10,415,859 and 14,154,452 at March 31, 2013 and 2012, respectively. During the three months ended March 31, 2013 and 2012, the Company incurred a net loss; therefore, all of the dilutive securities are excluded from the computation of diluted earnings per share.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Long Lived Assets and Goodwill</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Long lived assets are reviewed for an impairment loss when circumstances indicate that the carrying value of long-lived tangible and intangible assets with finite lives may not be recoverable. Management&#8217;s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria as well as qualitative measures. If an analysis is necessitated by the occurrence of a triggering event, we make certain assumptions in determining the impairment amount. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Goodwill is reviewed for impairment annually, or when events arise that could indicate that an impairment exists. We test for goodwill impairment using a two-step process. The first step compares the fair value of the reporting unit with the unit's carrying value, including goodwill. When the carrying value of the reporting unit is greater than fair value, the unit&#8217;s goodwill may be impaired, and the second step must be completed to measure the amount of the goodwill impairment charge, if any. In the second step, the implied fair value of the reporting unit&#8217;s goodwill is compared with the carrying amount of the unit&#8217;s goodwill. If the carrying amount is greater than the implied fair value, the carrying value of the goodwill must be written down to its implied fair value. We will continue to perform impairment tests annually, at December 31, and whenever events or changes in circumstances suggest that the carrying value of an asset may not be recoverable.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 2 &#8211; FAIR VALUE MEASUREMENTS</b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We measure certain financial assets and liabilities at fair value on a recurring basis in the financial statements. The hierarchy ranks the quality and reliability of inputs, or assumptions, used in the determination of fair value and requires financial assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.5in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: left;">Level 1 &#8211; quoted prices in active markets for identical assets and liabilities;</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px 0pt 0.25in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.5in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: left;">Level 2 &#8211; inputs other than Level 1 quoted prices that are directly or indirectly observable; and</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px 0pt 0.25in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.5in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: left;">Level 3 &#8211; unobservable inputs that are not corroborated by market data.</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of March 31, 2013 and December 31, 2012, the fair values of cash and cash equivalents, and notes and interest payable approximate their carrying value.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Upon the merger between Manhattan and Ariston Pharmaceuticals, Inc. (&#8220;Ariston&#8221;) in March 2010, Ariston issued $15,452,793 of five-year 5% notes payable (the &#8220;5% Notes&#8221;) in satisfaction of several note payable issuances. The 5% Notes and accrued and unpaid interest thereon are convertible at the option of the holder into Common Stock at the conversion price of $1,125 per share. Ariston agreed to make quarterly payments on the 5% Notes equal to 50% of the net product cash flow received from the exploitation or commercialization of Ariston&#8217;s product candidates, AST-726 and AST-915. The Company has no obligations under the 5% Notes aside from a) 50% of the net product cash flows from Ariston&#8217;s product candidates, if any, payable to noteholders; and b) the conversion feature, discussed above.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with the Exchange Transaction in December 2011, the Company performed a valuation of the assets and liabilities of Manhattan immediately prior to the transaction. <font style="color: black;">The cumulative liability including accrued and unpaid interest of these notes was approximately $16,876,000 immediately prior to the Exchange Transaction, $17,727,000 at December 31, 2012, and $17,943,000 at March 31, 2013. </font>As these notes payable are tied directly to net product cash flows derived from the preexisting products of the Company, this note and accrued interest was recorded at fair value of $3,287,700 as of the date of the Exchange Transaction. No payments have been made on these notes as of March 31, 2013.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We elected the fair value option for valuing the 5% Notes upon the completion of the reverse merger with TG Bio, as discussed above. The Company elected the fair value option in order to reflect in our financial statements the assumptions that market participants use in evaluating these financial instruments.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The valuation methods used to estimate the 5% Notes&#8217; fair value was a discounted cash flow model, where the expected cash flows of AST-726 is discounted to the present using a yield that incorporates compensation for the probability of success in clinical development and marketing, among other factors. The discount rate used in this discounted cash flow model approximated 20% at December 31, 2012 and March 31, 2013. The assumptions, assessments and projections of future revenues are subject to uncertainties, are difficult to predict and require significant judgment. The use of different assumptions, applying different judgment to inherently subjective matters and changes in future market conditions could result in significantly different estimates of fair value and the differences could be material to our consolidated financial statements.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table provides the fair value measurements of applicable financial liabilities as of December 31, 2012 and March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="14" nowrap="nowrap">Financial liabilities at fair value <br />as of December 31, 2012</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 1</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 2</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 3</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; width: 48%;">5% Notes</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">2,479,098</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">2,479,098</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt;">Totals</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="14" nowrap="nowrap">Financial liabilities at fair value <br />as of March 31, 2013</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 1</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 2</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Level 3</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; width: 48%;">5% Notes</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">2,424,260</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%;">2,424,260</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt;">Totals</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Level 3 amounts above represent the fair value of the 5% Notes and related accrued interest.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes the changes in Level 3 instruments during the three months ended March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 60%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 79%;">Fair value at December 31, 2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 18%;">2,479,098</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Interest accrued on face value of 5% Notes</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">215,562</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Change in fair value of Level 3 liabilities</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">(270,400</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Fair value at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The change in the fair value of the Level 3 liabilities is reported in other (income) expense in the accompanying condensed consolidated statement of operations.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 3 - STOCKHOLDERS' EQUITY</b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Preferred Stock</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our amended and restated certificate of incorporation authorizes the issuance of up to 10,000,000 shares of preferred stock, $0.001 par value, with rights senior to those of our common stock, <font style="color: black;">issuable in one or more series. Upon issuance, the Company can determine the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. </font></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Common Stock</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our amended and restated certificate of incorporation authorizes the issuance of up to 500,000,000 shares of $0.001 par value common stock.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Equity Incentive Plans</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Shares available for the issuance of stock options or other stock-based awards under our stock option and incentive plans were 1,966,733 shares at March 31, 2013.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><u>Stock Options</u></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes stock option activity for the three months ended March 31, 2013:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><br /><br /></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>of&#160;shares</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><br /><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>exercise&#160;price</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Contractual</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Term</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Aggregate</b><br /><b>Intrinsic</b><br /><b>Value</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">(in years)</td> <td style="font-weight: bold;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; width: 48%;">Outstanding at December 31, 2012</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">46,904</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">$</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">61.08</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">9.44</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Forfeited</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(313</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,249.85</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 13.5pt;">Expired</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Outstanding at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46,591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46.37</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">9.26</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46,000</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Vested and expected to vest at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,313.30</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">2.33</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Exercisable at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,313.30</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">2.33</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of March 31, 2013, the total compensation cost related to unvested time-based option awards not yet recognized was $0. This amount does not include, as of March 31, 2013, 46,000 non-employee options outstanding which are milestone-based and vest upon certain corporate milestones. Stock-based compensation will be measured and recorded if and when a milestone occurs.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><u>Restricted Stock</u></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Certain employees have been awarded restricted Company Preferred Stock. The restricted stock vesting consists of milestone and time-based vesting. The following table summarizes restricted share activity for the three months ended March 31, 2013:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 65%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number of Shares</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"><font style="font-size: 10pt;"><b>Weighted </b></font><br /><font style="font-size: 10pt;"><b>Average </b></font><br /><font style="font-size: 10pt;"><b>Grant Date </b></font><br /><font style="font-size: 10pt;"><b>Fair Value</b></font></td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 38%;">Outstanding at December 31, 2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">6,614,243</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 2%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">4.49</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">85,524</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6.10</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Vested</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(287,500</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.25</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt;">Forfeited</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Outstanding at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">6,412,267</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">4.62</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: -1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Total expense associated with restricted stock grants was $1,885,477 during the three months ended March 31, 2013. As of March 31, 2013, there was approximately $8,627,000 of total unrecognized compensation cost related to unvested time based restricted stock, which is expected to be recognized over a weighted-average period of 2.6 years. This amount does not include, as of March 31, 2013, 1,517,500 shares of restricted stock outstanding which are milestone-based and vest upon certain corporate milestones; and 2,580,000 shares of restricted stock outstanding issued to non-employees. Milestone based non-cash compensation expense will be measured and recorded if and when a milestone occurs.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><u>Warrants</u></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes warrant activity for the three months ended March 31, 2013:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 75%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Warrants</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>exercise&#160;price</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Aggregate&#160;</b><br /><b>Intrinsic</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Value</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; width: 61%;">Outstanding at December 31, 2012</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">6,781,007</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">1.58</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; width: 10%;">14,563,539</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Issued</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(416,409</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.25</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt;">Expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Outstanding at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">6,364,598</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">1.53</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">25,411,153</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Stock-Based Compensation</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The fair value of stock options granted is estimated at the date of grant using the Black-Scholes pricing model. The expected term of options granted is derived from historical data and the expected vesting period. Expected volatility is based on the historical volatility of our common stock. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. We have assumed no expected dividend yield, as dividends have never been paid to stock or option holders and will not be paid for the foreseeable future. The Company did not grant any stock options during the three months ended March 31, 2013.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes stock-based compensation expense information about stock options and restricted stock for the three months ended March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 75%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -14.2pt; padding-left: 14.2pt; width: 87%;">Stock-based compensation expense associated with restricted stock</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1,885,477</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -14.2pt; padding-left: 14.2pt;">Stock-based compensation expense associated with option grants</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -14.2pt; padding-left: 14.2pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">1,885,477</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 4 &#8211; NOTES PAYABLE</b></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following is a summary of notes payable:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="10"><font style="font-size: 10pt;">&#160;<b>March&#160;31,&#160;2013</b></font></td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="10">December&#160;31,&#160;2012</td> <td style="padding-bottom: 1pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Current<br />portion,&#160;net</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Non-<br />current <br />portion,<br />&#160;net</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Total</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Current <br />portion,&#160;net</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Non-<br />current <br />portion,<br />net</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Total</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 22%;">Convertible 5% Notes Payable</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">-</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,424,260</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,424,260</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">-</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,479,098</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,479,098</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">ICON Convertible Note</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,102,038</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">677,778</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,156,876</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We assumed the preceding notes payable as the result of the Exchange Transaction between the Company and TG Therapeutics, Inc. Accordingly, a valuation using the guidance in the accounting literature for business combinations (ASC 805) was performed and these notes have been presented at their fair value on the date of the transaction.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Convertible 5% Notes Payable</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On March 8, 2010, Manhattan entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among the Company, Ariston Pharmaceuticals, Inc., a Delaware corporation ("Ariston") and Ariston Merger Corp., a Delaware corporation and wholly-owned subsidiary of the Company (the "Merger Sub").&#160; Pursuant to the terms and conditions set forth in the Merger Agreement, on March 8, 2010, the Merger Sub merged with and into Ariston (the "Merger"), with Ariston being the surviving corporation of the Merger.&#160; As a result of the Merger, Ariston became a wholly-owned subsidiary of the Company.&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The 5% Notes and accrued and unpaid interest thereon are convertible at the option of the holder into Common Stock at the conversion price of $1,125 per share.&#160;&#160;Ariston agreed to make quarterly payments on the 5% Notes equal to 50% of the net product cash flow received from the exploitation or commercialization of Ariston&#8217;s product candidates, AST-726 and AST-915.&#160;&#160;<font style="color: black;">The Company has no obligations under the 5% Notes aside from a) 50% of the net product cash flows from Ariston&#8217;s product candidates, if any, payable to noteholders; and b) the conversion feature, discussed above.</font> Interest accrues monthly, is added to principal on an annual basis, every March 8, and is payable at maturity.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with the Exchange Transaction in December 2011, the Company performed a valuation of the assets and liabilities of Manhattan immediately prior to the transaction. <font style="color: black;">The cumulative liability including accrued and unpaid interest of these notes was approximately $16,876,000 immediately prior to the Exchange Transaction, $17,727,000 at December 31, 2012, and $17,943,000 at March 31, 2013. </font>As these notes payable are tied directly to net product cash flows derived from the preexisting products of the Company, this note and accrued interest was recorded at fair value as of the date of the Exchange Transaction. No payments have been made on these notes as of March 31, 2013. See Note 2 for further details.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>ICON Convertible Note Payable</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with the merger with Ariston as discussed above, Ariston satisfied an account payable of $1,275,188 to ICON Clinical Research Limited (&#8220;ICON&#8221;) through the payment of $275,188 in cash and the issuance of a three-year 5% note payable (the &#8220;ICON Note&#8221;).&#160;&#160;The principal was to be repaid in 36 monthly installments of $27,778 commencing in April 2010.&#160;&#160;Interest was payable monthly in arrears. &#160;&#160;On March 1, 2011, Ariston entered into an amended and restated convertible promissory note (the &#8220;Amended ICON Note&#8221;) with ICON. The principal terms of the Amended ICON Note are that monthly payments of principal and interest will be waived for the thirteen month period ended December 31, 2011 (the &#8220;Waiver Period&#8221;) in exchange for a single payment of $100,000 on March 31, 2011, an increase in the interest on the Amended ICON Note from 5% to 8% per annum during the Waiver Period and a balloon payment on January 31, 2012. The Amended ICON Note is convertible at the option of the holder into the Company&#8217;s Common Stock at the conversion price of $562.50 per share. During the three months ended March 31, 2013, the Company recorded $15,910 of interest expense on the Amended ICON Note. At March 31, 2013, the principal amount of the Amended ICON Note was $677,778, of which the entire balance has been classified as current, and interest payable on the Amended ICON Note was $139,421. This note is currently in default as the Company did not make the balloon payment due on January 31, 2012, or any subsequent payments. The Company is currently attempting to negotiate a settlement or alternative arrangement in satisfaction of this note.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><b>NOTE 5 &#8211; LICENSE AGREEMENTS</b></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;">In November 2012, we entered into an exclusive (within the territory) sublicense agreement with Ildong Pharmaceutical Co. Ltd, (&#8220;Ildong&#8221;) relating to the development and commercialization of ublituximab in South Korea and Southeast Asia. Under the terms of the sublicense agreement, Ildong has been granted a royalty bearing, exclusive right, including the right to grant sublicenses, to develop and commercialize ublituximab in South Korea, Taiwan, Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Myanmar.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="color: black;">An upfront payment of $2,000,000, which was received in December 2012 net of $330,000 of foreign income tax withheld, is being recognized as license revenue on a straight-line basis over the life of the agreement, which is through the expiration of the last licensed patent right or 15 years after the first commercial sale of a product in such country, unless the agreement is earlier terminated.&#160;</font>The upfront payment will be recognized as license revenue on a straight-line basis through December 2025, which represents the estimated period over which the Company will have certain ongoing responsibilities under the sublicense agreement.&#160;<font style="color: black;">The Company recorded license revenue of approximately $38,000 for the three months ended March 31, 2013, and has deferred revenue of approximately $1,943,000 associated with this $2,000,000 payment (approximately $152,000 of which has been classified as a current liability) at March 31, 2013.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;">The Company may receive up to an additional $5.0 million in payments upon the achievement of pre-specified milestones. In addition, upon commercialization, Ildong will make royalty payments to the Company on net sales of TG-1101 in the sublicense territory.</p> <div><font size="2" style="font-family:times new roman,times"> <b>NOTE 6 &#8211; RELATED PARTY TRANSACTIONS</b></font></div> <div>&#160;&#160;</div> <p style="margin: 0in 0in 0pt; text-indent: 0.5in;"><font size="2" style="font-family:times new roman,times">On January 30, 2012, the Company entered into an exclusive license agreement with LFB Biotechnologies, GTC Biotherapeutics and LFB/GTC LLC, all wholly-owned subsidiaries of LFB Group, relating to the development of ublituximab (the &#8220;License Agreement&#8221;). In connection with the License Agreement LFB Group was issued 5,000,000 shares of Company Common Stock, and a warrant to purchase 2,500,000 shares of Company Common Stock at a purchase price of $0.001 per share. In addition, on November 9, 2012 the Company nominated Dr. Yann Echelard to the Company&#8217;s Board of Directors as LFB Group&#8217;s nominee. LFB Group maintains the right to nominate a board member until such time as LFB Group owns less than 10% of the outstanding Company Common Stock.</font></p> <div><font size="2" style="font-family:times new roman,times">&#160;&#160;</font></div> <div><font size="2" style="font-family:times new roman,times"> Under the terms of the Company&#8217;s License Agreement with LFB Group, the Company utilizes LFB Group for certain development and manufacturing services. The Company incurred approximately $357,000 in such expenses during the three months ended March 31, 2013, which have been included in other research and development expenses in the accompanying consolidated statements of operations. As of March 31, 2013, the Company has approximately $798,000 recorded in accounts payable related to the aforementioned agreements with LFB Group. In conjunction with the development and manufacturing services discussed above, certain agreements between the Company and LFB Group require payments in advance of services performed or goods delivered. Accordingly, as of March 31, 2013, the Company recorded $2,147,985 in prepaid research and development for such advance payments.</font></div> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Description of Business</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We are a biopharmaceutical company focused on the acquisition, development and commercialization of innovative and medically important pharmaceutical products for the treatment of cancer and other underserved therapeutic needs. We aim to acquire rights to these technologies by licensing or otherwise acquiring an ownership interest, funding their research and development and eventually either out-licensing or bringing the technologies to market. Currently, the Company is developing therapies for hematologic malignancies: TG-1101 (ublituximab), a novel, third generation monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes; and TGR-1202, an orally available PI3K delta inhibitor. We also hold the development rights to AST-726, a nasally delivered product for the treatment of Vitamin B12 deficiency.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The accompanying unaudited condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) for interim financial information and with the instructions to Form 10-Q and Article&#160;10 of Regulation&#160;S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair presentation of the consolidated financial statements have been included. Nevertheless, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On December 29, 2011, the Company entered into and consummated an exchange transaction agreement (the &#8220;Exchange Transaction&#8221;) with Opus Point Partners, LLC (&#8220;Opus&#8221;) and TG Biologics, Inc. (formerly known as TG Therapeutics, Inc.) (&#8220;TG Bio&#8221;). The stockholders of TG Bio received the majority of the voting shares of the Company, therefore, the merger was accounted for as a reverse acquisition whereby TG Bio was the accounting acquirer (legal acquiree) and the Company was the accounting acquiree (legal acquirer) under the acquisition method of accounting. TG Bio was incorporated in Delaware in November 2010, but did not commence operations until April 2011.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On April 30, 2012, the Company filed a Certificate of Amendment to its Certificate of Incorporation to change its name from Manhattan Pharmaceuticals, Inc. (&#8220;Manhattan&#8221;) to TG Therapeutics, Inc. In conjunction with this change, the subsidiary formerly named TG Therapeutics, Inc. filed a Certificate of Amendment changing its name to TG Biologics, Inc.</p> <p style="text-align: left; background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Liquidity and Capital Resources</i></b></p> <p style="text-align: left; background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; background-color: white; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have incurred operating losses since our inception and expect to continue to incur operating losses for the foreseeable future and may never become profitable. As of March 31, 2013, we have an accumulated deficit of $22,599,404.</p> <p style="text-align: left; background-color: white; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our major sources of cash have been proceeds from the private placement of equity securities, the upfront payment from our Sublicense Agreement with Ildong Pharmaceutical Co. Ltd. (&#8220;Ildong&#8221;), and warrant exercises. We have not yet commercialized any of our drug candidates and cannot be sure if we will ever be able to do so. Even if we commercialize one or more of our drug candidates, we may not become profitable. Our ability to achieve profitability depends on a number of factors, including our ability to obtain regulatory approval for our drug candidates, successfully complete any post-approval regulatory obligations and successfully commercialize our drug candidates alone or in partnership. We may continue to incur substantial operating losses even if we begin to generate revenues from our drug candidates.</p> <p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of March 31, 2013, we had $15,188,167 in cash and cash equivalents. We currently anticipate that our cash and cash equivalents to be sufficient to fund our anticipated operating cash requirements for approximately [15-18] months from March 31, 2013. The actual amount of cash that we will need to operate is subject to many factors, including, but not limited to, the timing, design and conduct of clinical trials for our drug candidates. We are dependent upon significant future financing to provide the cash necessary to execute our current operations, including the commercialization of any of our drug candidates.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our Common Stock is quoted on <font style="color: black;">the OTC Bulletin Board<font style="font-family: times new roman, times, serif;"> </font></font>and trades under the symbol &#8220;TGTX.&#8221;</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We treat liquid investments with original maturities of less than three months when purchased as cash and cash equivalents.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Revenue Recognition</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize license revenue in accordance with the revenue recognition guidance of the FASB Accounting Standards Codification, or Codification. We analyze each element of our licensing agreement to determine the appropriate revenue recognition. The terms of the license agreement may include payments to us of non-refundable up-front license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. We recognize revenue from upfront payments over the period of significant involvement under the related agreements unless the fee is in exchange for products delivered or services rendered that represent the culmination of a separate earnings process and no further performance obligation exists under the contract. We recognize milestone payments as revenue upon the achievement of specified milestones only if (1) the milestone payment is non-refundable, (2) substantive effort is involved in achieving the milestone, (3) the amount of the milestone is reasonable in relation to the effort expended or the risk associated with achievement of the milestone, and (4) the milestone is at risk for both parties. If any of these conditions are not met, we defer the milestone payment and recognize it as revenue over the estimated period of performance under the contract.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Research and Development Costs</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Generally, research and development costs are expensed as incurred. Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and amortized over the period that the goods are delivered or the related services are performed, subject to an assessment of recoverability. We make estimates of costs incurred in relation to external clinical research organizations, or CROs, and clinical site costs. We analyze the progress of clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of the amount expensed and the related prepaid asset and accrued liability. Significant judgments and estimates must be made and used in determining the accrued balance and expense in any accounting period. We review and accrue CRO expenses and clinical trial study expenses based on work performed and rely upon estimates of those costs applicable to the stage of completion of a study. Accrued CRO costs are subject to revisions as such trials progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. With respect to clinical site costs, the financial terms of these agreements are subject to negotiation and vary from contract to contract. Payments under these contracts may be uneven, and depend on factors such as the achievement of certain events, the successful recruitment of patients, the completion of portions of the clinical trial or similar conditions. The objective of our policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended. As such, expense accruals related to clinical site costs are recognized based on our estimate of the degree of completion of the event or events specified in the specific clinical study or trial contract.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>In-Process Research and Development</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-indent: 27pt; margin: 0pt 0px; font: italic 10pt times new roman, times, serif;"><font style="font-style: normal; font-weight: normal;">All acquired research and development projects are recorded at their fair value as of the date acquisition. The fair values are assessed as of the balance sheet date to ascertain if there has been any impairment of the recorded value. If there is an impairment, the asset is written down to its current fair value by the recording of an expense. Impairment is tested on an annual basis, and consists of a comparison of the fair value of the in-process research and development with its carrying amount.</font></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Income Taxes</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. If the likelihood of realizing the deferred tax assets or liability is less than &#8220;more likely than not,&#8221; a valuation allowance is then created.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We, and our subsidiaries, file income tax returns in the U.S. Federal jurisdiction and in various states. We have tax net operating loss carryforwards that are subject to examination for a number of years beyond the year in which they were generated for tax purposes. Since a portion of these net operating loss carryforwards may be utilized in the future, many of these net operating loss carryforwards will remain subject to examination.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize interest and penalties related to uncertain income tax positions in income tax expense.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Stock-Based Compensation</i></b></p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We recognize all share-based payments to employees and to non-employee directors as compensation for service on our board of directors as compensation expense in the consolidated financial statements based on the fair values of such payments. Stock-based compensation expense recognized each period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">For share-based payments to consultants and other third-parties, compensation expense is determined at the &#8220;measurement date.&#8221; The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated based on the then current fair value, at each subsequent reporting date.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Basic and Diluted Net (Loss) Income Per Share of Common Stock</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Basic net income (loss) per share of Common Stock is calculated by dividing net income (loss) applicable to the Common Stock by the weighted-average number of the Common Stock outstanding for the period. Diluted net loss per share of Common Stock is the same as basic net income (loss) per share of Common Stock since potentially dilutive securities from stock options, stock warrants and convertible preferred stock would have an antidilutive effect either because the Company incurred a net loss during the period presented or because such potentially dilutive securities were out of the money and the Company realized net income during the period presented. The amounts of potentially dilutive securities excluded from the calculation were 10,415,859 and 14,154,452 at March 31, 2013 and 2012, respectively. During the three months ended March 31, 2013 and 2012, the Company incurred a net loss; therefore, all of the dilutive securities are excluded from the computation of diluted earnings per share.</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Long Lived Assets and Goodwill</i></b></p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Long lived assets are reviewed for an impairment loss when circumstances indicate that the carrying value of long-lived tangible and intangible assets with finite lives may not be recoverable. Management&#8217;s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria as well as qualitative measures. If an analysis is necessitated by the occurrence of a triggering event, we make certain assumptions in determining the impairment amount. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Goodwill is reviewed for impairment annually, or when events arise that could indicate that an impairment exists. We test for goodwill impairment using a two-step process. The first step compares the fair value of the reporting unit with the unit's carrying value, including goodwill. When the carrying value of the reporting unit is greater than fair value, the unit&#8217;s goodwill may be impaired, and the second step must be completed to measure the amount of the goodwill impairment charge, if any. In the second step, the implied fair value of the reporting unit&#8217;s goodwill is compared with the carrying amount of the unit&#8217;s goodwill. If the carrying amount is greater than the implied fair value, the carrying value of the goodwill must be written down to its implied fair value. We will continue to perform impairment tests annually, at December 31, and whenever events or changes in circumstances suggest that the carrying value of an asset may not be recoverable.</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table provides the fair value measurements of applicable financial liabilities as of December 31, 2012 and March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="14">Financial liabilities at fair value <br />as of December 31, 2012</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 1</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 2</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 3</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; width: 48%; font-size: 10pt; padding: 0px;">5% Notes</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">2,479,098</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">2,479,098</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;&#160;&#160;&#160;Totals</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0px; padding-right: 0px; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="14">Financial liabilities at fair value <br />as of March 31, 2013</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 1</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 2</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Level 3</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="2">&#160;</td> <td style="font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0px; width: 48%; padding-right: 0px; font-size: 10pt;">5% Notes</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;&#160;&#160;&#160;Totals</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;"></td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes the changes in Level 3 instruments during the three months ended March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 88%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; width: 85%; font-size: 10pt; padding: 0px;">Fair value at December 31, 2012</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">2,479,098</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">Interest accrued on face value of 5% Notes</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">215,562</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">Change in fair value of Level 3 liabilities</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(270,400</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">Fair value at March 31, 2013</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;"></td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes stock option activity for the three months ended March 31, 2013:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><br /><br /></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>of&#160;shares</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><br /><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>exercise&#160;price</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Contractual</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Term</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Aggregate</b><br /><b>Intrinsic</b><br /><b>Value</b></p> </td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td style="font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2">(in years)</td> <td style="font-weight: bold;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; width: 48%;">Outstanding at December 31, 2012</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">46,904</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">$</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">61.08</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt; width: 10%;">9.44</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; width: 1%;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Granted</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Exercised</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt;">Forfeited</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(313</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,249.85</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 13.5pt;">Expired</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Outstanding at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46,591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46.37</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">9.26</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">46,000</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Vested and expected to vest at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,313.30</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">2.33</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Exercisable at March 31, 2013</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">591</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">3,313.30</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">2.33</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes restricted share activity for the three months ended March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: bold 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: bold 10pt times new roman, times, serif;" colspan="2"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number of Shares</b></p> </td> <td style="padding-bottom: 1pt; font: bold 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2"><font style="font-size: 10pt;"><b>Weighted Average Grant Date Fair Value</b></font></td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 5.4pt; width: 74%; font-size: 10pt;">Outstanding at December 31, 2012</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">6,614,243</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">4.49</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt; font-size: 10pt;">Granted</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">85,524</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">6.10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 13.5pt; font-size: 10pt;">Vested</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(287,500</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2.25</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt; font-size: 10pt;">Forfeited</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt; font-size: 10pt;">--</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; font-size: 10pt;">Outstanding at March 31, 2013</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">6,412,267</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">4.62</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;"></td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes warrant activity for the three months ended March 31, 2013:</p> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;" colspan="2"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Warrants</b></p> </td> <td style="text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;" colspan="2"> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted-</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>average</b></p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>exercise price</b></p> </td> <td style="text-indent: 0px; font: bold 10pt times new roman, times, serif; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; font-weight: bold; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; text-indent: 0px; font-size: 10pt; font-weight: bold; padding: 0px;" colspan="2"><font style="font-size: 10pt;"><b>Aggregate Intrinsic Value</b></font></td> <td style="text-indent: 0px; font-size: 10pt; font-weight: bold; padding: 0px;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; width: 61%; font-size: 10pt; padding: 0px;">Outstanding at December 31, 2012</td> <td style="text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; width: 10%; font-size: 10pt; padding: 0px;">6,781,007</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; width: 10%; font-size: 10pt; padding: 0px;">1.58</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; text-indent: 0px; width: 10%; font-size: 10pt; padding: 0px;">14,563,539</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0.125in; padding-right: 0px; font-size: 10pt; padding-top: 0px;">Issued</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">--</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">--</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0.125in; padding-right: 0px; font-size: 10pt; padding-top: 0px;">Exercised</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">(416,409</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">)</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">2.25</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0.125in; padding-right: 0px; font-size: 10pt; padding-top: 0px;">Expired</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">--</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt; padding-top: 0px;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt; padding-top: 0px;">--</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt; padding-top: 0px;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt; padding-top: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">Outstanding at March 31, 2013</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">6,364,598</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">1.53</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">25,411,153</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;"></td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table summarizes stock-based compensation expense information about stock options and restricted stock for the three months ended March 31, 2013:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; width: 84%; font-size: 10pt; padding: 0px;">Stock-based compensation expense associated with restricted stock</td> <td style="text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">$</td> <td style="text-align: right; text-indent: 0px; width: 13%; font-size: 10pt; padding: 0px;">1,885,477</td> <td style="text-align: left; text-indent: 0px; width: 1%; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">Stock-based compensation expense associated with option grants</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">--</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; text-indent: 0px; font-size: 10pt; padding: 0px;">1,885,477</td> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;"></td> </tr> </table> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0.5in 0pt 0px; font: 10pt times new roman, times, serif;">The following is a summary of notes payable:</p> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0.5in 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; font: 10pt times new roman, times, serif;" colspan="10"> <p style="text-align: left; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>March 31, 2013</b></p> </td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; font: 10pt times new roman, times, serif;" colspan="10"> <p style="text-align: left; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>December 31, 2012</b></p> </td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; font-size: 10pt; padding: 0px;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Current portion, net</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Non-current portion, net</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Current portion, net</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Non-current portion, net</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold;" colspan="2">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; width: 22%; font-size: 10pt; padding: 0px;">Convertible 5% Notes Payable</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,424,260</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,424,260</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,479,098</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,479,098</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; font-size: 10pt; padding: 0px;">ICON Convertible Note</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 0px; text-indent: 0px; padding-left: 0.125in; padding-right: 0px; font-size: 10pt; padding-top: 0px;">Total</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,424,260</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">3,102,038</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">677,778</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">2,479,098</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">3,156,876</td> <td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;"></td> </tr> </table> 14154452 10415859 85524 2479098 0 0 2479098 2424260 0 0 2424260 2479098 0 0 2479098 2424260 0 0 2424260 2479098 2424260 215562 -270400 15452793 P5Y 0.05 0.05 1125 1125 562.50 0.50 16876000 17727000 17943000 3287700 0.20 0.20 46904 46591 0 0 313 0 591 591 61.08 46.37 0 0 2249.85 0 3313.30 3313.30 P9Y5M9D P9Y3M4D P2Y3M29D P2Y3M29D 0 46000 0 6614243 6412267 287500 0 4.49 4.62 6.10 2.25 0 6781007 6364598 0 416409 0 1.58 1.53 0 2.25 0 14563539 25411153 1885477 0 1966733 46000 1517500 2580000 3156876 677778 2479098 3102038 677778 2424260 0.05 0.05 0.08 0.05 0.50 1275188 798000 27778 100000 15910 139421 36 month 2000000 1943000 5000000 936920 936504 416 1885477 1885477 0 936920 936920 416409 0 0001001316us-gaap:RestrictedStockMember2013-03-31 8627000 0001001316us-gaap:RestrictedStockMember2013-01-012013-03-31 P2Y7M6D 0001001316us-gaap:StockOptionMember2013-03-31 0 00010013162013-05-07 26322671 0001001316tgtx:LfbGroupMember2012-01-012012-01-30 2500000 5000000