Subsequent events

3 Months Ended

Mar. 31, 2016

Note 12 – Subsequent events

On April 28, 2016, the Board of Directors made a stock option award to the Company’s Chief Executive Officer and Chair of the Board. The non-qualified stock option award to acquire 766,500 shares of common stock represents approximately 6% of outstanding shares of common stock as of the record date for the Company’s upcoming 2016 Annual Meeting of Stockholders. The stock option grant has an exercise price of $1.35 per share, which is the fair market value of the common stock on the date of grant, a ten year term and a vesting schedule of 25% vesting of the award on the first annual anniversary of the date of grant and then 6.25% vesting each quarter thereafter over three additional years. The stock option award is contingent on receipt of stockholder approval at the Company’s 2016 Annual Meeting of Stockholders, as the award was made outside of the Company’s stockholder-approved incentive plans. If the stockholders do not approve the award, the stock option award will terminate.

On May 11, 2016, the Company priced a private placement financing under which, upon closing, it expects to receive $10.4 million upon the issuance of units, each unit consisting of one share of common stock and a warrant to acquire 0.75 of a share of common stock.