Equity

6 Months Ended

Jun. 30, 2015

Stockholders' Equity [Abstract]

Stockholders' Equity

5. Equity

Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes-Merton valuation model.

Forfeitures of stock-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the three months ended June 30, 2015 and 2014, was approximately 7.54% and 9.85%, respectively, based on historical data.

Valuation and Expense Information:

The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized using the accrual method over the vesting period of the options. The fair value calculations are based on the following assumptions:

	Six Months Ended June 30, 2015	Six Months Ended June 30, 2014
Risk free interest rate	0.04% - 3.73%	0.04% - 4.89%
Expected life (years)	3.26 - 6.88	3.26 - 7.00
Expected volatility	93.63% - 198.38%	91.99% - 198.38%
Expected dividends	None	None

The Company granted 1,000 and 36,633 stock options during the three and six months ended June 30, 2015 at a weighted average exercise price of $0.0224 per share. There were no stock options exercised during the three and six months ended June 30, 2015.

The Company granted 2,500 stock options during the three and six months ended June 30, 2014 at a weighted average exercise price of $0.0273 per share. There were no stock options exercised during the three and six months ended June 30, 2014.

The following table summarizes the allocation of stock-based compensation expense related to stock option grants for the three and six months ended June 30:

	Three Months Ended June 30,		Three Months Ended June 30,
	2015	2014	2015	2014
Research and development	$ 47	$ 21	$ 113	$ 48
Sales and marketing	$ 34	$ 24	$ 86	$ 37
General and administrative	$ 65	$ 37	$ 145	$ 83
Director options	$ 12	$ 4	$ 27	$ 9
Total stock-based compensation expense	$ 158	$ 86	$ 371	$ 177

A summary of option activity under the Company's plans as of June 30, 2015 and 2014 is as follows:

Options	2015				2014
	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value	Shares	Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1,	72,012	$ 0.04		$ -	69,537	$ 0.05		$ -
Granted	36,633	$ 0.02		$ -	2,500	$ 0.03		$ 7
Exercised	-	-		$ -	-	$ -		$ -
Forfeited or expired	(1,045)	$ 0.03		$ -	(50)	$ 0.22		$ -
Outstanding at June 30	107,600	$ 0.04	4.59	$ -	71,987	$ 0.05	4.60	$ 7
Vested and expected to vest at June 30	104,525	$ 0.03	3.24	$ -	46,864	$ 0.05	4.24	$ -
Exercisable at June 30	65,365	$ 0.04	3.56	$ -	51,984	$ 0.05	4.24	$ -

The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2015:

Range of Exercise Prices	Options Outstanding			Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price Per Share	Number Outstanding	Weighted Average Exercise Price Per Share
$ 0.0100 - $0.0200	3,000	6.48	$ 0.019	334	$ 0.020
$0.0210 - $0.0300	54,009	5.38	$ 0.023	20,850	$ 0.025
$0.0310 - $0.0600	31,556	4.29	$ 0.046	25,147	$ 0.046
$0.0610 - $0.2000	19,035	2.55	$ 0.066	19,034	$ 0.066
	107,600	4.59	$ 0.037	65,365	$ 0.048

A summary of the status of the Company's non-vested shares as of June 30, 2015, is as follows:

Non-vested Shares	Shares	Weighted Average Grant-Date Fair Value Per Share
Non-vested at January 1, 2015	14,954	$ 0.0374
Granted	36,633	$ 0.0196
Forfeited	(1,020)	$ 0.0207
Vested	(8,332)	$ 0.0297
Non-vested at June 30, 2015	42,235	$ 0.0233

As of June 30, 2015, there was a total of $443 of unrecognized compensation expense related to non-vested stock-based compensation arrangements granted under the plans. The unrecognized compensation expense is expected to be realized over a weighted average period of 3.2 years.

Preferred Stock

Information with respect to the class of Preferred Stock at June 30, 2015 is as follows:

Class of Preferred Stock	Annual Dividend	Annual Dividend Payable, in Cash or In Kind	Per Share Liquidation Preference	Per Share Conversion Price	Total Preferred Shares Outstanding	Common Shares to be issued if Fully Converted
Series A-1	8%	Quarterly in Arrears	$ 1.00	$ 0.1400	910	6,502
Series B	10%	Quarterly in Arrears	$ 1.50	$ 0.0433	12,867	296,945
Series C	10%	Quarterly in Arrears	$ 1.50	$ 0.0225	5,225	232,203
Series D-1	10%	Quarterly in Arrears	$ 1.00	$ 0.0225	7,357	326,987
Series D-2	10%	Quarterly in Arrears	$ 1.00	$ 0.0500	6,070	121,409

Information with respect to in-kind dividends issued on the Company's Preferred stock for the three and six-month periods ended June 30, 2015 and June 30, 2014 is as follows:

	Dividends				Beneficial Conversion Feature Related to dividends
	Three Months Ended June 30,		Six Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,
	2015	2014	2015	2014	2015	2014	2015	2014
Series A-1	$ 17	$ 21	$ 35	$ 41	$ -	$ -	$ -	$ -
Series B	313	284	615	558	-	-	-	-
Series C	127	115	250	226	-	13	13	50
Series D-1	179	107	324	201	-	12	16	43
Series D-2	149	132	292	255	-	-	-	-
Total	$ 785	$ 659	$ 1,516	$ 1,281	$ -	$ 25	$ 29	$ 93

Series D Preferred Stock

On February 7, 2014, the Company sold for $733 in cash, net of a $47 administrative fee paid in cash to SG Phoenix and a nonrelated third party, 520 Shares of Series D-1 preferred stock and 260 shares of Series D-2 Preferred Stock. The investors received one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire December 31, 2016. The warrants are exercisable in whole or in part and contain a cashless exercise provision.

On March 6, 2014, the Company sold for $406 in cash, net of $4 in administrative fees paid in cash to an unrelated third party, 273 Shares of Series D-1 preferred stock and 137 shares of Series D-2 Preferred Stock. The investors received one hundred percent (100%) warrant coverage. These warrants are immediately exercisable and expire December 31, 2016. The warrants are exercisable in whole or in part and contain a cashless exercise provision.

SG Phoenix received warrants to purchase 3,000 shares of common stock, and two unrelated parties received warrants to purchase an aggregate of 1,600 shares of common stock in payment of administrative and finder's fees associated with the financings, in addition to the cash payments discussed above. These warrants are immediately exercisable and expire three (3) years from the date of issuance. The warrants are exercisable in whole or in part and contain a cashless exercise provision.

On March 24, 2015, the Company sold for $1,200 in cash, net of $33 in administrative fees paid in cash to SG Phoenix, 1,233 Shares of Series D-1 preferred stock. The investors received 27,400 warrants, immediately exercisable into common stock of the Company at $0.0225 per share. The warrants expire March 23, 2018. The Company ascribed a value of $366 to the warrants using the Black-Scholes-Merton pricing model. See the warrant table below for more detail. The warrants are exercisable in whole or in part and contain a cashless exercise provision.

Warrants

On February 23, 2015, the Company and Venture Champion Asia Limited, an affiliate of IGC Global Limited, mutually agreed to terminate the $2,000 Credit Agreement signed in May 2014. At the time of the termination of the Credit Agreement, no amount was owed by the Company under the Credit Agreement, and contemporaneously with the termination of the Credit Agreement, the 10,909 warrants were likewise terminated.

A summary of the warrant activity is as follows:

	June 30, 2015		June 30, 2014
	Shares	Weighted Average Exercise Price Per Share	Shares	Weighted Average Exercise Price Per Share
Outstanding at beginning of period	213,521	$ 0.0289	77,155	$ 0.0289
Issued	27,399	$ 0.0275	72,589	$ 0.0275
Expired	(16,258)	$ 0.0500	(4,333)	$ 0.0225
Outstanding at end of period	224,662	$ 0.0272	145,411	$ 0.0289
Exercisable at end of period	224,662	$ 0.0272	145,411	$ 0.0289

A summary of the status of the warrants outstanding and exercisable as of June 30, 2015, is as follows:

Number of Shares	Weighted Average Remaining Life (Years)	Weighted Average Exercise Price Per Share
27,400	2.77	$ 0.0225
193,968	1.52	$ 0.0275
3,294	0.38	$ 0.0500
224,662	1.65	$ 0.0272