Stockholders Equity (Deficit)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Stockholders’ Equity (Deficit)

Note 10.  Stockholders’ Equity (Deficit)

Common Stock

The Company amended its certificate of incorporation on May 11, 2015, to decrease the number of authorized shares from 600,000,000 on a post reverse split basis to 200,000,000 shares.  The 200,000,000 authorized shares of common stock have a par value of $0.001 per share.  As of June 30, 2015, 6,827,414 shares were issued.  As of December 31, 2014, 334,003 of the 600,000,000 shares were issued.  

Each share of common stock is entitled to one vote.  All shares of common stock rank equally as to voting and all other matters that the holders are entitled to vote on.  The shares of common stock have no preemptive or conversion rights, no redemption or sinking fund provisions, no liability for further call or assessment, and are not entitled to cumulative voting rights.  

Preferred Stock

With the amendment of the Company’s certificate of incorporation the Company has been authorized to issue 10,000,000 shares of preferred stock, each having a par value of $0.001.  The preferred stock may be issued from time to time in one or more series with the authorization of the Company’s Board of Directors.  The Board of Directors have the ability to determine voting power for each series issued, as well as designation, preferences, and relative, participating, optional or other rights and such qualifications, limitations or restrictions thereof.    

Stock Option Plan

In February 2014, pursuant to the Series E Agreement, the amount of shares reserved under the Company’s 2011 Equity Incentive Plan (the “2011 Plan”) was increased to 20% of the total outstanding shares of the Company calculated on a fully diluted basis. The shares reserved under the 2011 Plan were required to be kept at that percentage with each subsequent equity financing.

On May 11, 2015, 940,112 shares were reserved for issuance under the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), including 14,006 shares from the 2011 Plan.  As of June 30, 2015, there were 923,031 shares available for issuance under the 2014 Plan.  

As of June 30, 2015, options to purchase 610,090 shares of Common Stock were outstanding, including 356,050 options that were fully vested. The remaining options vest over 2.7 years.

A summary of the Plans’ stock option activity is as follows:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance at December 31, 2014		595,577		$	3.71	7.8
Granted		17,083			–
Exercised		(1,316	)	4.24			$	2,497
Forfeited		(1,254	)	8.41
Balance at June 30, 2015		610,090		3.99		7.4		5,449,483
Vested and expected to vest at June 30, 2015		597,358		3.91		7.3		5,379,404
Exercisable at June 30, 2015		356,050		3.38		6.4		3,386,727

Below is a summary of stock option grant activity and related fair value information for the six months ended June 30, 2015:  

2015 Grants	Options Granted		Exercise Price		Fair Value of Common Stock on Date of Grant
May		5,000	$	14.64	$	14.64
June		12,083	$	13.83	$	13.83
Total		17,083

Below is a summary of stock option grant activity and related fair value information for the six months ended June 30, 2014:

2014 Grants	Options Granted		Exercise Price		Fair Value of Common Stock on Date of Grant
January		2,094	$	2.15	$	2.15
March		249,361	$	2.15	$	2.15
May		8,685	$	2.15	$	2.15
Total		260,140

As of June 30, 2015, there was total unrecognized compensation expense of $674,100 related to unvested stock options, which the Company expects to recognize over a weighted-average period of approximately 3 years.