SHAREHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2014

Stockholders Equity Note [Abstract]

SHAREHOLDER’S EQUITY

8. SHAREHOLDER’S EQUITY

Authorized shares

We are authorized to issue up to 33.3 million shares of common stock with a par value of $0.0001 per share, 0.8 million shares of class C special stock with a par value of $0.0001 per share, and 1.7 million shares of undesignated preferred stock with a par value of $0.0001 per share at December 31, 2014.

There were 11.4 million and 9.6 million shares of common stock issued and outstanding as of December 31, 2014 and 2013, respectively.

There were 11 thousand shares of class C special stock issued and outstanding as of both December 31, 2014 and 2013. Each share of class C special stock entitles its holder to one vote per share. Each share of class C special stock is exchangeable, at the option of the holder, for one share of our common stock, at an exchange price of $90.00 per share, subject to adjustment upon certain capitalization events. Holders of class C special stock are not entitled to receive dividends or to participate in the distribution of our assets if we were to liquidate, dissolve, or wind-up the company. The holders of class C special stock have no cumulative voting, preemptive, subscription, redemption or sinking fund rights.

There were no shares of undesignated preferred stock outstanding as of December 31, 2014 or 2013.

Equity Offerings

On March 10, 2014, we completed a follow-on public offering of 1.6 million shares of our common stock at a public offering price of $31.00 per share (the “March 2014 Offering”). We received gross proceeds of $50.0 million, or net proceeds of $46.7 million after deducting costs of $3.3 million, including the underwriters’ fees and commissions, as well as expenses directly related to the March 2014 Offering. The number of shares sold in the March 2014 Offering includes the exercise in full by the underwriters of their option to purchase an additional 0.2 million shares of common stock.

Warrants

Warrants to purchase an aggregate of 2.5 million shares (as adjusted for the July 17, 2013 one-for-six reverse split, when applicable) of our common stock were outstanding and exercisable as of December 31, 2014:

(in thousands, except per share price)

	Number of
	Underlying Shares	Per Share
Issue Date	Of Common Stock	Exercise Price		Expiration Date
March 8, 2010	145	$	74.88	September 8, 2015
June 23, 2010	99	$	88.20	June 23, 2015
June 23, 2010	6	$	94.68	June 9, 2015
December 30, 2010	147	$	72.00	December 30, 2015
December 30, 2010	9	$	76.50	June 9, 2015
December 4, 2014	1,799	$	96.21	March 1, 2020
December 5, 2014	270	$	96.21	March 1, 2020

All outstanding warrants are classified as equity. In December 2014, we issued 2.1 million warrants in conjunction with the issuance of the Notes (see Note 3). In January 2014, warrants to purchase an aggregate of 20 thousand shares of common stock were exercised at $9.00 per share. In December 2014, warrants to purchase an aggregate of 63 thousand shares of common stock were exercised at $9.00 per share. Warrants to purchase an aggregate of 198 thousand shares of common stock expired unexercised during the year ended December 31, 2014.

During 2013, we issued no warrants. In December 2013, warrants to purchase an aggregate of 90 thousand shares of common stock were exercised. During 2013, warrants to purchase an aggregate of 13 thousand shares of common stock expired unexercised.