XML 31 R15.htm IDEA: XBRL DOCUMENT v3.6.0.2
Stockholders' Equity
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Stockholders' Equity
Stockholders' Equity
Authorized, Issued, and Outstanding Common Shares
The Company’s common stock has a par value of $0.001 per share and consists of 125,000,000 authorized shares as of December 31, 2016 and 2015, respectively; 24,609,411 and 13,905,599 shares were issued and outstanding as of December 31, 2016, and December 31, 2015, respectively. The following table summarizes common stock share activity for the years ended December 31, 2016 and 2015:
 
Shares of
Common Stock
Balance, December 31, 2014
8,512,103

Common stock issued through April 2015 Offering
5,376,622

Common stock issued through employee stock purchase plan
16,874

Balance, December 31, 2015
13,905,599

Common stock issued through Shelf Registration
10,696,456

Common stock issued through employee stock purchase plan
7,356

Balance, December 31, 2016
24,609,411


Shares Reserved for Future Issuance
The Company had reserved shares of common stock for future issuance as follows:
 
December 31,
 
2016
 
2015
Outstanding stock options
1,819,444

 
1,379,727

Outstanding Series C-1 Preferred warrants
14,033

 
14,033

Warrants to purchase common stock associated with June 2016 Public Offering
4,218,750

 
—

Warrants to purchase common stock associated with Loan Agreement
122,435

 
—

For possible future issuance under 2014 Equity Incentive Plan (Note 10)
668,921

 
552,415

For possible future issuance under 2014 Employee Stock Purchase Plan (Note 10)
72,338

 
50,283

For possible future issuance under 2015 Inducement Plan (Note 10)
165,000

 
165,000

Total common shares reserved for future issuance
7,080,921

 
2,161,458

Liquidation Rights
In the event of any liquidation or dissolution of the Company, the holders of the common stock are entitled to the remaining assets of the Company legally available for distribution.
Dividends and Voting Rights
The holders of the common stock are entitled to receive dividends if and when declared by the Company. The holders of the common stock have the right to one vote per share.
Preferred Stock
On May 7, 2014, the Company amended and restated its articles of incorporation relating to its approved capital structure. The Company's board of directors has authorized the Company, subject to limitations prescribed by Delaware law, to issue up to 5,000,000 shares of preferred stock with a par value of $0.001 per share in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions. The Company's board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by the stockholders. The Company's board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. There were no shares of preferred stock issued and outstanding as of December 31, 2016 and 2015, respectively.
Warrants Associated with Convertible Preferred Stock Issuances
In July 2006, the Company issued warrants to purchase 196,923 shares of Series C-1 Preferred Stock, which converted into the right to purchase 14,033 shares of common stock in connection with our IPO, however, we refer to these warrants as our Series C-1 Preferred warrants. The Series C-1 Preferred warrants were issued in conjunction with a loan financing agreement with an original exercise price of $3.25 per share of Series C-1 Preferred, which converted into an exercise price of$45.61 per share of common stock in connection with our IPO. These warrants remain outstanding as of December 31, 2016 and will expire on May 7, 2019, which is the five year anniversary of the Company's IPO. The fair value at the date of grant for these instruments was $459, which was recorded as a debt discount. The debt discount related to these warrants was fully amortized as of December 31, 2010. The Company determined that the warrants should be recorded as a derivative liability and stated at fair value at each reporting period. As of December 31, 2016 and 2015, the fair value of the warrant derivative liability was zero.
Warrants Associated with June 2016 Public Offering
On June 21, 2016, the Company completed the June 2016 Public Offering of its common stock and warrants pursuant to the Company's effective Shelf Registration (see Note 1). Each purchaser received a warrant to purchase 0.45 of a share for each share purchased in the June 2016 Public Offering. There is not expected to be any trading market for the warrants. Each warrant was exercisable immediately upon issuance, will expire five years from the date of issuance, and has an exercise price of $3.00 per share. The warrants contain a provision where the warrant holder has the option to receive cash, equal to the Black-Scholes fair value of the remaining unexercised portion of the warrant, as cash settlement in the event that there is a fundamental transaction (contractually defined to include various merger, acquisition or stock transfer activities). Due to this provision, ASC 480, Distinguishing Liabilities from Equity requires that these warrants be classified as liabilities. The fair values of these warrants have been determined using the Black-Scholes valuation model, and the changes in the fair value are recorded in the accompanying statements of operations. During the year ended December 31, 2016, the Company recorded a loss of $1,906 due to the change in fair value of the warrant liability. As of December 31, 2016, the fair value of the warrant liability was $6,601.
Warrant Associated with Loan Agreement
Pursuant to the Loan Agreement, on the Closing Date the Company issued to Solar the Solar Warrant to purchase an aggregate of up to 122,435 shares of the Company’s common stock at an exercise price of $3.6754 per share. The Solar Warrant will expire five years from the date of the grant. The Solar Warrant was classified as equity and recorded at its relative fair value at issuance in the stockholders' equity section of the balance sheet.