Equity

3 Months Ended

Mar. 31, 2016

Stockholders' Equity [Abstract]

Stockholders' Equity

7. Equity (Deficit)

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 March 31, 2016 and 2015 was approximately 11.89% and 7.57%, 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 over the vesting period of the options.

The fair value calculations are based on the following assumptions:

	Three Months Ended March 31, 2016	Three Months Ended March 31, 2015
Risk free interest rate	0.04% - 3.19%	0.04% - 3.73%
Expected term (years)	2.82 - 7.00	3.26 - 7.00
Expected volatility	112.75% - 198.90%	91.99% - 198.38%
Expected dividends	None	None

There were no stock options granted, and no stock options exercised during the three months ended March 31, 2016. The Company granted 29 stock options during the three months ended March 31, 2015 at a weighted average exercise price of $28.13 per share. No stock options were exercised during the three month period ended March 31, 2015.

The following table summarizes the allocation of stock-based compensation expense for the three months ended March 31:

	2016	2015
Research and development	$19	$65
Sales and marketing	14	52
General and administrative	24	80
Director	8	16
Total stock-based compensation	$65	$213

A summary of option activity under the Company's plans for the three months ended March 31, 2016 and 2015 is as follows:

Options	2016				2015
	Shares	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value	Shares	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1	82	$45.35			57	$56.20
Granted	-	$-			28	$28.20
Forfeited or expired	(7)	$40.51			-	$-
Outstanding at March 31	75	$45.84	3.86		85	$46.90	4.87
Vested and expected to vest at March 31	72	$46.42	3.80	$-	83	$47.40	4.82	$-
Exercisable at March 31	59	$52.16	3.21		47	$57.70	3.67

The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2016:

Range of Exercise Prices	Options Outstanding			Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price	Number Outstanding	Weighted Average Exercise Price
$25.00 - $625.00	75	3.86	$ 45.84	59	$ 52.16

A summary of the status of the Company's non-vested shares as of March 31, 2016 is as follows:

Non-vested Shares	Shares	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016	25	$28.61
Forfeited	(4)	$28.80
Vested	(5)	$38.06
Non-vested at March 31, 2016	16	$26.47

As of March 31, 2016, there was $179 of total 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 1.9 years.

Preferred Stock

Information with respect to the classes of Preferred Stock as of March 31, 2016 is as follows:

Class of Preferred Stock	Annual Dividend	Annual Dividend Payable, in Cash or In Kind	Liquidation Preference	Conversion Price	Total Preferred Shares Outstanding	Common Shares to be issued if Fully Converted
Series A-1	8%	Quarterly in Arrears	$1.00	$0.01555	966	50
Series B	10%	Quarterly in Arrears	$1.50	$0.01037	13,861	1,069
Series C	10%	Quarterly in Arrears	$1.50	$0.00777	5,628	579
Series D-1	10%	Quarterly in Arrears	$1.00	$0.00579	8,278	1,144
Series D-2	10%	Quarterly in Arrears	$1.00	$0.00686	6,539	763
		Total			35,272	3,605

Information with respect to dividends and Preferred Shares issued for the periods ended March 31 is as follows:

	Dividends		Beneficial Conversion Feature Related to Dividends		Preferred Shares		Beneficial Conversion Feature Related to Preferred Shares Issued
	March 31,		March 31,		March 31,		March 31,
	2016	2015	2016	2015	2016	2015	2016	2015
Series A-1	$19	$17	$3	$-	$-	$-	$-	$-
Series B	337	302	73	-	-	-	-	-
Series C	137	123	39	13	-	-	-	-
Series D-1	202	145	78	16	-	1,200	-	498
Series D-2	159	143	52	-	-	-	-	-
Total	$854	$730	$245	$29	-	$1,200	$-	$498

Series D Preferred Stock

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. Investors received warrants to purchase 22 shares of Common Stock, immediately exercisable at $29 per share. In October 2015 the investors received additional warrants to purchase 18 shares of Common Stock immediately exercisable at $16 per share, and the exercise price of the March 2015 warrants was reduced to $16 per share consistent with the terms of the July 2015 financing. The warrants expire March 23, 2018. The Company ascribed a value of $422 to the warrants using the Black-Scholes-Merton pricing model. The warrants are exercisable in whole or in part.

Warrants

A summary of the warrant activity for the three months ended March 31 is as follows:

	2016		2015
	Warrants	Weighted Average Exercise Price	Warrants	Weighted Average Exercise Price
Outstanding at beginning of period	206	$28.70	171	$36.13
Issued	-	$-	22	$28.13
Expired/Canceled	-	$-	(9)	$-
Outstanding at end of period	206	$28.70	184	34.63
Exercisable at end of period	206	$28.70	184	$34.63

A summary of the status of the warrants outstanding and exercisable as of March 31, 2016 is as follows:

Number of Warrants	Weighted Average Remaining Life	Weighted Average Exercise Price per share
14	0.04	$2.56
105	0.40	$17.64
33	0.12	$4.42
54	0.54	$4.09
206	1.11	$28.70