12.

Subsequent Events

Exercise of Preferred Stock Warrants

From July 1 to July 10, 2015, 28,699 of the Company’s Series B-1 warrants were exercised at an exercise price of $7.45 per share, 329,559 of the Series B-1 warrants were exercised at an exercise price of $2.6075 per share and 32,138 of the Series C warrants were exercised at an exercise price of $5.215 per share, resulting in total aggregate cash proceeds to the Company of $1.2 million. See Note 9.

Initial Public Offering

In connection with the IPO discussed in Note 1, the following events occurred:

•

The Company is obligated to pay $5.5 million in cumulative accrued dividends in cash to the Company’s Series B and Series B-1 redeemable convertible preferred stockholders. See Note 8.

•

An aggregate of 750,946 shares of common stock were issued to the Company’s Series C and Series D redeemable convertible preferred stockholders, in payment of $3.9 million of cumulative accrued dividends. See Note 8.

•

An aggregate of 390,680 shares of common stock were issued on the net exercise of 493,648 preferred stock warrants at the IPO price of $17 per share. See Note 9.

•

The 2015 Plan and the 2015 Employee Stock Purchase Plan, as described below, were adopted.

•

An aggregate of 365,535 shares of common stock reserved but not issued under the 2008 Plan became available for grant under the 2015 Plan.

•

The Company recorded $0.1 million in additional stock-based compensation related to the achievement of a performance-based stock option grant to an executive officer. See Note 10.

•

The Company filed its amended and restated certificate of incorporation on July 21, 2015, authorizing 500,000,000 shares of common stock and 10,000,000 shares of preferred stock.

Adoption of 2015 Equity Incentive Plan

On July 14, 2015, the 2015 Equity Incentive Plan (the “2015 Plan”) became effective. The 2015 Plan will serve as a successor to the Company’s 2008 Stock Plan. The 2015 Plan permits the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units, performance awards, cash awards and stock bonuses. The Company reserved 3,400,000 shares of common stock for issuance under the 2015 Plan, plus the remaining reserved and unissued shares under the 2008 plan on the effective date of the 2015 Plan.

Adoption of 2015 Employee Stock Purchase Plan

On July 15, 2015, the 2015 Employee Stock Purchase Plan was adopted in order to enable eligible employees to purchase shares of the Company’s common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. The 2015 Employee Stock Purchase Plan will not become effective until such time as the Compensation Committee determines in the future. The Company initially reserved 700,000 shares of common stock for issuance under the 2015 Employee Stock Purchase Plan. The aggregate number of shares issued over the term of the 2015 Employee Stock Purchase Plan will not exceed 3,400,000 shares of common stock.