Stockholders Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

Note 13. Stockholders’ Equity

Common Stock

The Company amended its certificate of incorporation on May 11, 2015, to decrease the number of authorized shares of common stock 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 June 30, 2016, 7,052,353 and 7,050,957 shares were issued and outstanding, respectively. As of December 31, 2015, 6,845,638 and 6,844,242 shares were issued and outstanding, respectively.  

Preferred Stock

Pursuant to the Company’s amended and restated certificate of incorporation, the Company is 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, with such voting, conversion and other rights and preferences as the board of directors may determine. No shares of preferred stock have been issued to date.    

Stock-based Compensation

2014 Equity Incentive Plan

As of June 30, 2016, there were 546,679 shares available for issuance under the 2014 Plan and options to purchase 1,055,831 shares of common stock were outstanding, including 510,994 options that were fully vested. As of June 30, 2016, there was total unrecognized compensation expense of $1,030,377 related to unvested stock options, which the Company expects to recognize over a weighted-average period of approximately 2.81 years.

In April 2016, in connection with the severance of an employee, the Company accelerated the vesting of 8,957 unvested stock options, as well as the period following termination whereby all of the employee’s vested stock options, including those accelerated as part of the severance agreement, could be exercised for a two year period from the termination date. As a result of this modification, the Company recorded incremental stock-based compensation expense of approximately $13,500 for the three and six months ended June 30, 2016.  

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		359,125		2.51
Exercised		(996	)	2.15
Forfeited		(38,943	)	5.49
Balance at June 30, 2016		1,055,831		3.56			8.0	$	343,795
Vested and expected to vest at June 30, 2016		971,922		3.44		7.8		$	323,258
Exercisable at June 30, 2016		510,944		3.44		6.7		$	204,409

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. The Company issued an additional 30,061 RSUs during the quarter ended June 30, 2016 at a weighted average grant date fair value of $3.38. 4,062 of the RSUs vested upon grant in April 2016 and an additional 1,000 of the RSUs vested upon grant in May 2016. The Company expects to recognize compensation expense for the additional 24,999 shares granted in May 2016 over the remaining service period for this grant of approximately 3.5 years. Compensation expense of $18,593 and $81,245 was recognized relating to the RSUs for the three and six months ended June 30, 2016. Unrecognized compensation expense related to the remaining RSUs was $33,263 at June 30, 2016.

The stock-based compensation expense recorded in the condensed statements of operations for the three and six months ended June 30, 2016 was $152,088 and $322,136, respectively, and $70,000 and $146,548 for the three and six months ended June 30, 2015, 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. 39,978 shares of stock have been purchased under the ESPP since its initiation in January 2016 at a weighted average price per share of $2.54.