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Stockholders' Equity
 9 Months Ended
Sep. 30, 2016
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 7 – Stockholders’ Equity
 
Common Stock and Preferred Stock
 
The Company is authorized to issue 62,500,000 shares of common stock and 2,000,000 shares of preferred stock. Preferences, limitations, voting powers and relative rights of any preferred stock to be issued may be determined by the Company’s Board of Directors. The Company has not issued any shares of preferred stock.
 
In February 2015, the Company completed an underwritten public offering of common stock whereby 2,990,000 shares were issued at $5.85 per share. Gross proceeds from the offering totaled $17.5 million and net cash proceeds approximated $16.3 million. Expenses of the offering approximated $1.2 million, including underwriting fees of $1,049,000, underwriter legal fees and other costs of $55,000, and other costs of $108,000.
 
Equity Incentive Plan
 
The Company has an Equity Incentive Plan (the Plan) which provides for the granting of options to purchase shares of common stock, stock awards to purchase shares at no less than 85% of the value of the shares, and stock bonuses to officers, employees, board members, consultants, and advisors. The Compensation Committee of the Board of Directors is authorized to administer the Plan and establish the grant terms, including the grant price, vesting period and exercise date. As of September 30, 2016, the number of shares reserved for issuance under the Plan totaled 1,399,828 shares. The Plan provides for quarterly increases in the available number of authorized shares equal to the lesser of 10% of any new shares issued by the Company during the quarter immediately prior to the adjustment date or such lesser amount as the Board of Directors shall determine. 
 
In the nine months ended September 30, 2016, the Company granted 171,900 stock options under the Plan to employees. The stock options have exercise prices at the grant date fair value of $4.21 - $4.85 per share with a weighted-average of $4.22 per share, contractual lives of 10 years, and vest over 4 years. The fair value of stock options granted estimated on the date of grant using the Black-Scholes option valuation model was $419,000. The recognized compensation expense associated with these grants for the nine months ended September 30, 2016 was $52,000. The following weighted-average assumptions were utilized in the calculation of the fair value of the stock options:
 
Expected life
 
6.25 years
 
Weighted average volatility
 
73
%
Forfeiture rate
 
12
%
Weighted average risk-free interest rate
 
1.56
%
Expected dividend rate
 
0
%
 
In March 2016, the Company authorized 44,112 shares of common stock to be issued under the Plan to its three independent directors in accordance with board agreements and which will be earned quarterly for service in 2016. The fair value of the stock at the time of grant was $3.40 per share for a total value of $150,000. The Company recognized $37,000 and $112,000 in general and administrative expense for the three and nine months ended September 30, 2016 and will recognize the remaining $38,000 in the remainder of 2016.
 
In accordance with the Plan, options for the purchase of 7,504 shares of common stock were exercised in 2014 prior to vesting and the shares of common stock purchased were issued with a declining repurchase right in favor of the Company at the exercise price of $4.88 per share. The Company may repurchase shares if, prior to December 31, 2016, the employee terminates employment or certain other designated events occur. At September 30, 2016, 1,668 shares remained subject to this repurchase right.
 
Outstanding stock option grants at September 30, 2016 and December 31, 2015 totaled 890,050 shares and 723,400 shares with the right to purchase 522,120 shares and 257,391 shares being vested and exercisable at September 30, 2016 and December 31, 2015, respectively. Stock grants made to date through September 30, 2016 and December 31, 2015 totaled 246,542 shares and 213,458 shares, respectively. The recognized compensation expense associated with these grants for the three and nine months ended September 30, 2016 and 2015 totaled $199,000, $604,000, $259,000 and $676,000, respectively. At September 30, 2016, the number of shares reserved under the Plan but unissued totaled 263,236. At September 30, 2016, there was $849,000 of total unrecognized compensation cost related to non-vested share based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.3 years.
 
Consultant Stock Plan
 
The Company has a 2013 Consultant Stock Plan (the Consultant Plan) which provides for the granting of shares of common stock to consultants who provide services related to capital raising, investor relations, and making a market in or promoting the Company’s securities. The Company’s officers, employees, and board members are not entitled to receive grants from the Consultant Plan. The Compensation Committee of the Board of Directors is authorized to administer the Consultant Plan and establish the grant terms. The number of shares reserved for issuance under the Consultant Plan on September 30, 2016 totaled 116,139 with 85,389 of those shares unissued. The Consultant Plan provides for quarterly increases in the available number of authorized shares equal to the lesser of 1% of any new shares issued by the Company during the quarter immediately prior to the adjustment date or such lesser amount as the Board of Directors shall determine.  In August 2016, the Company granted 10,000 shares of common stock under the Consultant Stock Plan to a consultant for services from June 2016 to May 2017 and subject to completion of service each quarter. The fair value of the stock at the time of grant was $4.85 per share for a total value of $49,000 which the Company will recognize in general and administrative expense on a pro-rated quarterly basis. The Consultant Plan expense for the three and nine months ended September 30, 2016 and 2015 was $12,000, $32,000, $10,000, and $10,000, respectively.
 
Warrants
 
The Company has the following warrants outstanding at September 30, 2016:
 
 
 
Total Outstanding Warrants
 
Exercise Price
 
Warrants
 
Weighted Average
Exercise Price
 
Life
(in years)
 
$
1.80
 
 
80,000
 
$
1.80
 
 
4.38
 
$
5.00
 
 
345,000
 
$
5.00
 
 
0.57
 
$
10.00
 
 
20,313
 
$
10.00
 
 
2.43
 
 
 
 
 
445,313
 
$
4.65
 
 
 
 
 
During the nine months ended September 30, 2016, the Company issued 60,883 shares of common stock through net settlement cashless exercises of warrants to purchase 118,959 shares at $2.20 per share when the closing prices on the date of exercises were a weighted average of $4.51 per share.