Warrants

12 Months Ended

Dec. 31, 2014

Warrants and Rights Note Disclosure [Abstract]

Warrants

There were no warrants granted during the three months ended December 31, 2013 and the year ended December 31, 2014. Warrants outstanding to purchase the Company's common stock as of December 31, 2014 were as follows (in thousands):

	Vesting Date	Warrants Outstanding	Weighted Average Exercise Price
	(in thousands, except per share amounts)
Fundraising	November 2007	24	$	12.38
Convertible debenture	Various 2009	278	$	16.26
Convertible debenture	Various 2010	385	$	13.25
Convertible debenture	May 2011	48	$	16.26
Mortgage renewal	August 2011	20	$	15.00
Convertible debenture	August 2011	32	$	13.25
Convertible debenture	September 2011	49	$	15.00
Convertible debenture	Various 2012	319	$	15.00
Notes payable	Various 2013	86	$	13.92
Referral Fees	September 2013	7	$	13.25
		1,248

15. Warrants

Warrants Issued to Customers and Service Providers

The Company issues warrants to certain non-employees as an incentive to do business. All warrants granted to customers and other non-employees were exercisable as of December 31, 2014. These warrants expire five to seven years from the date of the grant.

On August 14, 2011, warrants were issued to the bank as part of the renegotiation of the loan referenced in Note 9, which were exercisable immediately. The warrants were recorded as debt issuance costs and amortized to interest expense over the life of the note. These warrants expire 10 years and 1 month from the grant date.

Warrants Issued for Referral Fees

The company granted 7 fully vested warrants in association with referral fees during September 2013. The value of warrants was $202 and was recorded as an expense in the consolidated statement of operations. There were no warrants granted for referral fees in 2012.

Warrants Issued for Fundraising

The Company granted warrants to certain non-employees in exchange for successful introductions that subsequently generated capital for the Company during its funding rounds. Costs associated with warrants issued for fundraising efforts are considered stock issuance costs associated with the respective capital balances of those introduced and reflected as contra‑equity.

Warrants Issued With Convertible Debentures

The Company granted warrants in connection with the convertible debenture securities issued as described in Note 8. The value of warrants credited to equity in the years ended September 30, 2012 and 2011 was $1,660 and $969, respectively. Additionally, the Company issued fully‑vested warrants in May 2011 and August 2011 in conjunction with the conversion of the 2009 and 2010 Debentures. The fair value of the warrants of $340 was recognized as interest expense. These warrants expire five to ten years from the date of the grant.

Warrants Issued with Non-Convertible Notes

In connection with the issuance of the Notes in January 2013, the Company issued to the purchasers of the Notes detachable warrants to purchase an aggregate of 86 shares of common stock with an exercise price equal to the greater of $13.92 and 90% of the price at which shares of common stock are offered to the public in a qualifying initial public offering. The warrants, which expire in January 2018 became exercisable 180 days after the closing of the IPO. The Company recorded the fair value of the warrants, calculated using the Black-Scholes model, as a discount to the Notes. Since the exercise price was not fixed, the warrants were classified as liabilities, and the fair value of the warrants of $454 was included within other long-term liabilities on the condensed consolidated balance sheet prior to IPO. As a result of the completion of the IPO, the exercise price became fixed and the fair value of the warrants of $435 was reclassified to additional paid-in capital.

There were no warrants granted during the three months ended December 31, 2013 and the year ended December 31, 2014. Warrants outstanding to purchase the Company's common stock as of December 31, 2014 were as follows (in thousands):

	Vesting Date	Warrants Outstanding	Weighted Average Exercise Price
	(in thousands, except per share amounts)
Fundraising	November 2007	24	$	12.38
Convertible debenture	Various 2009	278	$	16.26
Convertible debenture	Various 2010	385	$	13.25
Convertible debenture	May 2011	48	$	16.26
Mortgage renewal	August 2011	20	$	15.00
Convertible debenture	August 2011	32	$	13.25
Convertible debenture	September 2011	49	$	15.00
Convertible debenture	Various 2012	319	$	15.00
Notes payable	Various 2013	86	$	13.92
Referral Fees	September 2013	7	$	13.25
		1,248