Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 10. Stockholders’ Equity

(a) Stock options and stock award activity 

The following table illustrates the common stock options granted during the six months ended June 30, 2018: 

Title	Grant ‎date	No. of ‎options		Weighted ‎average ‎exercise ‎price		Weighted ‎average ‎grant date ‎fair value		Vesting ‎terms	Assumptions used in Black-Scholes ‎option pricing model
Consultants	January - June 2018		15,000	$	0.34	$	0.29	Immediately	Volatility	114 -118	%
									Risk free interest rate	2.22 -2.82	%
									Expected term, in years	6
									Dividend yield	0.00	%
Management,	January - June 2018		57,000	$	0.25	$	0.22	2 years	Volatility	118	%
Directors and									Risk free interest rate	2.96	%
Employees									Expected term, in years	6
									Dividend yield	0.00	%

The following table illustrates the common stock options granted during the six months ended June 30, 2017:

Title	Grant ‎date	No. of ‎options		Weighted ‎average ‎exercise ‎price		Weighted ‎average ‎grant date ‎fair value		Vesting ‎terms	Assumptions used in Black-Scholes ‎option pricing model
Management,	January - June 2017		161,500	$	3.80	$	3.40	1-3 years	Volatility	109-115 %
Directors and									Risk free interest rate	2.22-2.53 %
Employees									Expected term, in years	6-10
									Dividend yield	0.00	%

The following table illustrates the stock awards during the six months ended June 30, 2018.

Title	Grant date	No. of ‎stock ‎awards		Weighted ‎average ‎grant date ‎fair value		Vesting ‎terms
Consultants	January - June 2018		100,000	$	0.38	Immediately

The fair value of stock awards was determined using the share price on the date of grant.

There were no stock awards during the six months ended June 30, 2017.

The following table summarizes information about stock option activity for the six months ended June 30, 2018:

	Options
	No. of ‎options			Weighted ‎average ‎exercise ‎price		Exercise price ‎range	Weighted ‎average ‎grant date ‎fair value		Aggregate ‎Intrinsic ‎Value (in ‎thousands)
Outstanding at December 31, 2017		519,014		$	9.80	$0.80 - $80.00	$	9.40	$	-
Granted		72,000		$	0.27	$0.25-$0.34	$	0.23	$	-
Forfeited/cancelled		(15,417	)	$	15.78	$3.40-$80.00	$	11.96		-
Outstanding at June 30, 2018		575,597		$	8.40	$0.25 - $61.00	$	8.20	$	-
Exercisable at June 30, 2018		395,847		$	11.60	$0.34 - $61.00	$	11.40	$	-

As of June 30, 2018, unamortized stock-based compensation for stock options was $0.2 million, with a weighted-average recognition period of approximately 1.5 years.

(b) Warrants

The following table illustrates warrants granted during the six months ended June 30, 2018:

Title	Grant date	No. of ‎warrants		Weighted ‎average ‎exercise ‎price		Weighted ‎average ‎grant date ‎fair value		Vesting ‎terms	Assumptions used in Black-Scholes ‎option pricing model
Investors	January - June 2018		474,667	$	0.47	$	0.19	Six months	Volatility	118	%
									Risk free interest rate	2.90	%
									Expected term, in years	5
									Dividend yield	0.00	%

The following table illustrates warrants granted during the six months ended June 30, 2017:

Title	Grant date	No. of ‎warrants		Weighted ‎average ‎exercise ‎price		Weighted ‎average ‎grant date ‎fair value		Vesting ‎terms	Assumptions used in Black-Scholes ‎option pricing model
Investors	January - June 2017		52,910	$	10.00	$	3.80	Immediately	Volatility	109	%
									Risk free interest rate	1.89	%
									Expected term, in years	5
									Dividend yield	0.00	%
Noteholders	January - June 2017		83,333	$	4.00	$	2.16	Immediately	Volatility	105	%
									Risk free interest rate	1.91	%
									Expected term, in years	5
									Dividend yield	0.00	%

The following table summarizes information about warrants outstanding at June 30, 2018:

	Number of ‎Warrants		Weighted ‎Average ‎Exercise ‎Price		Exercise ‎price range
Warrants outstanding at December 31, 2017		18,695,677	$	3.00		$0.86-$200.00
Warrants issued		474,667		0.47	$	0.47
Warrants expired		-		-		-
Outstanding and exercisable at June 30, 2018		19,170,344	$	2.90		$0.47-$200.00

The 83,333 warrants issued with the April 2017 Convertible Notes were valued using the Monte Carlo model, which is a pricing model that incorporates all of the required inputs of a Black-Scholes model and Monte Carlo simulation process that capture additional features of the warrant related to its fair value estimate, but are outside of the Black-Scholes model. The warrants contain a provision whereby if the Company completes a transaction with an effective price per share lower than the exercise price of the warrants then the exercise price shall be reduced and the number of warrant shares issuable shall be increased such that the aggregate exercise price payable after taking into account the decrease in the exercise price, shall be equal to the aggregate exercise price prior to such adjustment. The allocated fair value of the warrant of $180,000 is the mean of the present value of the future cash flows resulting from the Monte Carlo simulation process. The fair value of $180,000 was calculated using the Monte Carlo model and the allocated value of $180,000 was recorded as additional paid-in capital.

Stock-based compensation expense for stock options and awards and warrants for the three months ended June 30, 2018 and 2017 was $40,000 and $(97,000), respectively, which has not been tax-effected due to the recording of a full valuation allowance against net deferred tax assets. Stock-based compensation expense for stock options and awards and warrants for the six months ended June 30, 2018 and 2017 was $122,000 and $165,000, respectively, which has not been tax-effected due to the recording of a full valuation allowance against net deferred tax assets.

(c) Series E Convertible Preferred Stock 

For the six months ended June 30, 2018, 7,699 shares of Series E Convertible Preferred Stock were converted into 14,634,268 shares of our common stock. For the six months ended June 30, 2018, we recorded dividends of approximately $251,000.