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Equity, Stock Plan and Warrants (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Summary of Changes in Stock Options Outstanding

A summary of the changes in the total stock options outstanding during the nine months ended September 30, 2016 follows:

						Weighted
						Average
		Options				Exercise Price
Outstanding and expected to vest, at December 31, 2015			1,941,194			$	6.54
Granted			418,000			$	1.39
Forfeited or expired			(156,253	)		$	9.36
Exercised			(3,050	)		$	1.23
Outstanding and expected to vest, at September 30, 2016			2,199,891			$	5.37
Vested and exercisable at September 30, 2016			1,536,078			$	7.02

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair values of the Company’s options were estimated on the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions:

		Three Months ended September 30, 2016				Three Months ended September 30, 2015				Nine Months ended September 30, 2016				Nine Months ended September 30, 2015
Expected life (years)			5 years				5 years				5 years				5 years
Interest rate			1.11	%			1.63	%			1.11 to 1.63	%			1.31 to 1.63	%
Dividend yield			—				—				—				—
Volatility			97.48	%			157.66	%			97.48 to 157.66	%			144.34 to 157.66	%
Forfeiture rate			—				—				—				—
Weighted average fair value of options granted		$	1.11			$	1.15			$	1.02			$	1.41

Schedule of Outstanding Warrants

Information regarding outstanding warrants as of September 30, 2016 is as follows:

Grant date		Warrants Outstanding				Exercisable				Weighted Exercise Price				Remaining Life (Years)
June 10, 2009			15,796				15,796			$	7.50				2.68
August 31, 2009			24,934				24,934			$	7.50				2.68
October 2, 2009			205,000				205,000			$	5.00				3.08
March 15, 2010			8,337				8,337			$	7.50				3.25
April 5, 2010			930				930			$	7.50				3.25
April 16, 2015 (1)			1,151,121				1,151,121			$	1.50				3.25
November 5, 2015 (1)			38,371				38,371			$	1.50				3.50
November 30, 2015 (1)			8,030,871				8,030,871			$	1.50				4.17

Total			9,475,360				9,475,360

(1)

The exercise price of the warrants and the number of shares for which the warrants are exercisable are subject to certain adjustments if the Company issues or sells additional shares of common stock or common stock equivalents at a price per share less than the exercise price then in effect, or without consideration.

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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