Stockholders' Equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity

Note 11. Stockholders’ equity

Common Stock

As of June 30, 2014, the Company had reserved 6,978,427common stock shares for issuance under its stock option plans, 600,093common stock shares for issuance under its stock purchase plan and 4,482common stock shares to be issued upon exercise of the outstanding warrants.

Accumulated Deficit

Approximately $6.5 million of the Company’s accumulated deficit at December 31, 2013 was subject to restriction due to the fact that the Company’s subsidiaries in China are required to set aside at least 10% of their respective accumulated profits each year to fund statutory common reserves as well as allocate a discretional portion of their after-tax profits to their staff welfare and bonus fund.