Stockholders Equity

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Stockholders' Equity

Note 11. Stockholders’ Equity

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 March 31, 2016, 7,006,317 shares were issued. As of December 31, 2015, 6,845,638 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. No shares of preferred stock have been issued to date.    

Stock-based Compensation

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. On March 24, 2016, 273,769 additional shares were registered and reserved for issuance under the Company’s 2014 Equity Incentive Plan. As of March 31, 2016, there were 588,507 shares available for issuance under the 2014 Plan.  

As of March 31, 2016, options to purchase 1,045,060 shares of common stock were outstanding, including 477,472 options that were fully vested. As of March 31, 2016, there was total unrecognized compensation expense of $1,103,971 related to unvested stock options, which the Company expects to recognize over a weighted-average period of approximately 2.97 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, 2015		736,645		$	4.18	7.5		$	947,794
Granted		312,700		2.88
Forfeited		(4,285	)	5.38
Balance at March 31, 2016		1,045,060		3.64			8.0	$	457,858
Vested and expected to vest at March 31, 2016		938,460		3.64		7.8		$	424,453
Exercisable at March 31, 2016		477,472		3.51		6.5		$	240,992

The Company issued 27,500 restricted stock units (“RSUs”) in the year ended December 31, 2015 at a weighted average grant date fair value of $5.45. The RSUs vested 100% on March 31, 2016. Compensation expense of $62,652 was recognized relating to the RSUs for the three months ended March 31, 2016. There is no unrecognized compensation expense related to RSUs.

The stock-based compensation expense recorded in the condensed statements of operations for the periods ended March 31, 2016 and 2015 were $170,048 and $76,548, respectively.

2014 Employee Stock Purchase Plan

In April 2015, the company’s stockholders approved the 2014 Employee Stock Purchase Plan (“ESPP”), which became effective in May 2015. Initially, the ESPP authorized the issuance of up to 110,820 shares of common stock pursuant to the purchase rights granted to the Company’s employees or to employees of the Company’s designated affiliates. The number of shares of common stock reserved for issuance automatically increased in accordance with the plan by 68,442 on January 1, 2016. The ESPP enables participants to contribute up to 15% of such participant’s eligible compensation during a defined period (not to exceed 27 months) to purchase common stock of the Company. The purchase price of common stock under the ESPP will be the lesser of:  (i) 85% of the fair market value of the Company’s common stock on the first date of an offering or (2) 85% of the fair market value of a share of the Company’s common stock on the date of purchase. No shares of stock have been purchased under the plan since its initiation in January 2016. The first purchase date will be June 10, 2016.