Subsequent Events
During the period September 1, 2008 through October 3, 2008, we purchased 1,469,950 shares of our common stock at an aggregate cost of $302,837 pursuant to our stock buyback program.
On September 1, 2008 we purchased Crossflo for $10 million in cash and stock. The average closing price of our common stock as required to be calculated in the Agreement and Plan of Merger was $0.24389 per share. In connection with the transaction we paid $1,955,741 in cash and issued 17,583,235 shares of our common stock with a fair market value of $4,288,375 to Crossflo’s preferred shareholders; we issued 2,844,630 shares of our common stock with a fair market value of $693,777 to our escrow agent, Union Bank of California, to be held until the conditions specified in the Escrow Agreement associated with the Agreement and Plan of Merger are satisfied; we paid $437,388 in cash and issued 5,104,196 shares of our common stock with a fair market value of $1,244,862 to Crossflo’s convertible note holders; we paid $85,548 in cash and issued 1,456,394 shares of our common stock with a fair market value of $355,200 to Crossflo’s appointed broker in connection with the closing of the acquisition; and, we accrued $57,093 to Crossflo’s legal counsel for work performed in affecting the transaction.
The consideration paid to the convertible note holders, the appointed broker, Crossflo’s legal counsel, and a working capital deduction of $64,252, all served to reduce the consideration available for distribution to Crossflo’s preferred shareholders. Prior to the closing of the transaction, we held $817,750 of Crossflo convertible notes which were discharged as additional consideration for the transaction.
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