STOCKHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2015

Stockholders Equity Note [Abstract]

SHAREHOLDER'S EQUITY

8. STOCKHOLDERS’ 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, 2015.

There were 11.5 million and  11.4 million shares of common stock issued and outstanding as of December 31, 2015 and 2014, respectively.

There were 11 thousand shares of class C special stock issued and outstanding as of December 31, 2015 and 2014. 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, 2015 and 2014.

Equity Offering

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.

 

Stock Repurchase Program

In October 2015, our Board of Directors authorized a program to repurchase up to $25.0 million of our common stock. The authorization allows for repurchases to be conducted through open market or privately negotiated transactions through December 31, 2016. We did not purchase any of our common stock under this program in the year ended December 31, 2015 (Note 14). The stock repurchase program may be suspended, modified or discontinued at any time at our discretion.

Warrants

Warrants to purchase an aggregate of 2.1 million shares of our common stock were outstanding and exercisable as of December 31, 2015:

Issue Date	Number of Underlying Shares of Common Stock (in thousands)		Per Share Exercise Price		Expiration Date
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. No warrants were issued or exercised during the year ended December 31, 2015. Warrants to purchase 405 thousand shares of common stock expired during the year ended December 31, 2015.

In December 2014, we issued 2.1 million warrants in conjunction with the issuance of the Notes (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.

We issued no warrants in the year ended December 31, 2013. In December 2013, warrants to purchase an aggregate of 90 thousand shares of common stock were exercised at $9.00 per share. Warrants to purchase an aggregate of 13 thousand shares of common stock expired unexercised during the year ended December 31, 2013.