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Subsequent Event
12 Months Ended
Dec. 31, 2016
Subsequent Events [Abstract]  
Subsequent Event

15. Subsequent Events

 

Stock Option Grants

 

In January 2017, the Company granted stock options to purchase 2,151,402 shares of common stock to employees, including 1,698,260 options that were granted to senior management of the Company. The options are exercisable for a period of ten years from the date of grant with exercise prices ranging from $1.53 to $1.97 per share. The options vest over a four year term, of which one-fourth vests on the one year anniversary of the date of grant and the remaining options vest quarterly over three years thereafter. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $2,012,162 (a weighted average of $0.94 per share).

 

On March 6, 2017, the Company granted options to purchase 40,000 shares of its common stock to an outside attorney in connection with its Rights Offering completed in March 2017. The options are exercisable for a period of 4 years from the date of grant at an exercise price of $1.76, which was 120% of the closing price of the Company’s common stock on March 6, 2017. The options vested immediately upon grant. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $19,600 (or $0.49 per share).