EQUITY

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

EQUITY

NOTE 4 - EQUITY:

a. During the six months ended June 30, 2015, the Company granted stock options to employees and directors to purchase a total of 1,739,417 shares of the Company’s common stock. The options have exercise prices ranging from $0.28 to $0.83 per share, which were the fair market value of the Company’s common stock on the date of each respective grant. Of the 1,739,417 options described above, 671,951 options are fully vested as of their grant date. The remaining options are subject to a three-year vesting period, with one-third of such awards vesting each year.

In calculating the fair value of the above options the Company used the following assumptions: dividend yield of 0%; expected term of 5-6.5 years; expected volatility of 62.68%-69.35%; and risk-free interest rate of 1.41%-1.71%.

The fair value of the above options, using the Black-Scholes option-pricing model, was approximately $0.62 million.

b. During the six months ended June 30, 2015, the Company granted a total of 1,323,349 restricted shares of the Company’s common stock to employees, of which 432,988 restricted shares are subject to a one-year vesting period, 92,500 restricted shares are fully vested as of their grant date and are subject to a 6 month lock up period, 329,028 restricted shares are subject to a six-month vesting period and 468,833 restricted shares are subject to a three-year vesting period, with one-third of such awards vesting each year.

The fair value of the above restricted shares was approximately $0.96 million.

c. On March 9, 2015, the Company sold 34,369,675 shares of its common stock and warrants to purchase 34,369,675 shares of common stock in a registered direct offering. Each purchaser received a warrant to purchase one share of common stock for each share of common stock that it purchased in the offering. The warrants, which are classified as equity, have a term of exercise of 5 years from the date of issuance and an exercise price of $0.55. This offering resulted in net proceeds to the Company of approximately $12.4 million after deducting placement agent fees and other offering expenses.