Debt

6 Months Ended

Jun. 30, 2016

Short-term notes payable [Abstract]

Debt

5. Debt

Short-term notes payable:

In the fourth quarter of 2015, the Company entered into unsecured convertible promissory note purchase agreements with investors and affiliates of the Company aggregating $1,268 in cash. Promissory notes with a principal amount of $1,068 plus accrued interest converted into shares of our Common Stock on May 19, 2016.

The notes and accrued interest converted at a price of $1.74 per share into 683 shares of our Common Stock. The holders of the notes also received 854 warrants to purchase 854 shares of Common Stock. Such warrants have a 5 year term and are exercisable at a price of $2.175 per share. The Company ascribed a relative fair value to the warrants using the Black-Scholes-Merton valuation model of $586, which was charged to additional paid-in capital during the quarter ended June 30, 2016.

One promissory note with a principal amount of $190, net of $10 in unamortized discount, remains outstanding as of June 30, 2016. This note bears interest at a rate of 24% per year and is due on August 25, 2016. The note can be converted into shares of our Common Stock at the holder's option for a period of 60 days after maturity, at a conversion price based upon a Company pre-money valuation of $5,000. Upon such conversion, the holder would also receive cash payments, payable from 3% of the revenue received by the Company from its European customer, not to exceed three times the aggregate principal amount of $200.