Preferred Stock And Common Stock

9 Months Ended

Sep. 30, 2014

Preferred Stock And Common Stock [Abstract]

Preferred Stock And Common Stock

6.Preferred Stock and Common Stock

The Company has authorized 10,000,000 shares of preferred stock with a par value of $0.001 per share. Shares of preferred stock may be issued in one or more series with rights and restrictions as may be determined by the Company. No shares of preferred stock have been issued as of September 30, 2014 and December 31, 2013.

In January 2014, the Company issued 236,739 shares of common stock to its executives and an employee pursuant to its 2011 Equity Incentive Plan. These shares were valued at $532,663, or $2.25 per share, the market value of the shares of common stock on the date of issuance, and have been expensed as general and administrative expenses.

In March 2014, the Company issued 50,498 shares of common stock to an executive and an employee pursuant to its 2011 Equity Incentive Plan. These shares were valued at $109,581, or $2.17 per share, the market value of the shares of common stock on the date of issuance, and have been expensed as general and administrative expenses.

In June 2014, the Company issued an aggregate of 130,436 shares of common stock to its non-employee directors pursuant to its 2011 Equity Incentive Plan for prior and future service to the Company. These shares were valued at $300,000 or $2.30 per share, the market value of the shares of common stock on the date of issuance. The Company recorded general and administrative expenses of $75,000 and $225,000 for the three and nine months ended September 30, 2014, respectively, related to this stock issuance.

During the nine months ended September 30, 2014, 297,749 shares of common stock were surrendered by certain executives and employees of the Company to cover tax obligations in connection with their fully vested and restricted stock awards. The total value of these shares was $645,679, which was based on the market price on the date the shares were surrendered.