Stockholders Equity (Deficit)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity (Deficit)

Note 11.  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 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 September 30, 2015, 6,841,260 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

Pursuant to 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-based Compensation

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.  No new equity awards may be granted under the 2011 Plan.  

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 September 30, 2015, there were 923,031 shares available for issuance under the 2014 Plan.  

As of September 30, 2015, options to purchase 590,139 shares of common stock were outstanding, including 371,563 options that were fully vested. The remaining options vest over 2.5 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		(13,764	)	2.47			$	92,582
Forfeited		(8,757	)	5.42
Balance at September 30, 2015		590,139		4.01		7.1		5,258,488
Vested and expected to vest at September 30, 2015		580,001		4.01		7.1		5,203,992
Exercisable at September 30, 2015		371,573		3.45		6.3		3,508,953

Below is a summary of stock option grant activity under the 2014 Plan and related fair value information for the nine months ended September 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 under the 2011 Plan and related fair value information for the nine months ended September 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

The Company issued 27,500 RSUs in the nine months ended September 30, 2015 at a weighted average grant date fair value of $5.45.  The RSUs vest 100% on March 31, 2016.  As of September 30, 2015, there was total unrecognized compensation expense of $583,701 related to unvested stock options, which the Company expects to recognize over a weighted-average period of approximately 2.5 years. There is an additional $149,875 of unrecognized compensation expense related to RSUs, which will be recognized over the weighted average remaining service period of six months.