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Organization
9 Months Ended
Sep. 30, 2014
Organization [Abstract]  
Organization

Note 1:  Organization

 

Background

 

The Company was originally incorporated in Massachusetts on October 14, 1998 as EMUmail, Inc. and changed its name on April 1, 2010 to SMTP.com, Inc. The Company has historically focused on the execution of email delivery for marketing and enterprise application customers but has broadened its product set through acquisitions to include marketing automation and e-mail campaign management products.The Company's services are marketed directly by the Company and through reseller partners.

 

On November 23, 2010, the Company formed a Delaware corporation, SMTP, Inc. for the purpose of changing the structure of the Company from a Massachusetts corporation to a Delaware corporation and to increase the number of authorized shares outstanding. Also on November 23, 2010, the Company entered into a Merger agreement between SMTP, Inc. and SMTP.com, Inc. whereby the surviving corporation would be SMTP, Inc. (the “Surviving Corporation”), the newly formed Delaware corporation.

 

On December 26, 2013, the Company filed a Certificate of Amendment to its Certificate of Incorporation (the "Certificate of Amendment"), with the Secretary of State of the State of Delaware, to effect a 1-for-5 reverse stock split of its common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every five shares of the Company's pre-Reverse Stock Split common stock was combined and reclassified into one share of its common stock. All data for common stock, options and warrants have been adjusted to reflect the 1-for-5 reverse stock split for all periods presented. In addition, all common stock prices, and per share data for all periods presented have been adjusted to reflect the 1-for-5 reverse stock split.

 

On August 15, 2014, the Company acquired substantially all the assets and assumed the liabilities of SharpSpring LLC. See Note 3 for more discussion.  On October 17, 2014, the Company acquired substantially all the assets and assumed the liabilities of the GraphicMail, group companies.  See Note 11 for more discussion.