Convertible Notes Payable

12 Months Ended

Dec. 31, 2015

Text Block [Abstract]

Convertible Notes Payable

5. Convertible Notes Payable

In October 2012, the Company entered into convertible notes payable agreements (“2012 Notes”) with investors for a total of $4.5 million. The 2012 Notes bear a fixed interest rate of 8% accruing from the date of the issuance of 2012 Notes, with principal and unpaid interest payable on January 31, 2013. The 2012 Notes are convertible into shares of the next preferred stock financing at the purchase price of those shares, or into shares of Series B convertible preferred stock at $0.45 per share, at the option of the holder, or may be paid in cash in the event of a default.

In January 2013, the holders of the 2012 Notes converted principal of $4.5 million and $88,000 of accrued interest, into 10,195,552 shares of Series B preferred convertible stock at a price of $0.45 per share.