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Stockholders' Equity
 12 Months Ended
Dec. 31, 2013
Equity [Abstract]  
Stockholders' Equity

14. Stockholders’ Equity

Preferred Stock - Our authorized preferred stock consists of 10,000,000 shares of preferred stock with a par value of $0.001, of which no shares have been issued or are outstanding.

Common Stock - Our authorized common stock consists of 200,000,000 shares of common stock with a par value of $0.001, of which 95,814,565 shares and 58,040,230 shares were issued and outstanding as of December 31, 2013 and 2012, respectively.

During the year ended December 31, 2013, we issued shares of common stock as follows:

 

     Common Stock
Shares		      Amount  

Common stock issued for services

      69,017       $ 198,858   

Common stock issued for Quest acquisition

      22,000,000         55,000,000   

Note and interest conversions

      8,472,539         3,148,493   

Warrant conversions

      7,232,779         21,698,338   
  

 

 

     

 

 

  
     37,774,335       $ 80,045,689   

Common Stock for Services - We issued 69,017 shares of common stock to employees and consultants during the year ended December 31, 2013 for $198,858 of services included in operating expenses.

Warrants – At December 31, 2012, we had outstanding exercisable warrants, as adjusted, to purchase 6,905,576 shares of common stock at $0.37 per share. On March 29, 2013, we issued an exercisable warrant to purchase 500,000 shares of common stock at $0.37 per share. As of December 31, 2013, there were no outstanding exercisable warrants remaining after the exercise of the warrants on March 29, 2013 for 7,405,576 shares. At December 31, 2012, we had outstanding contingent warrants, as adjusted, to purchase 1,381,113 shares of common stock at $0.37 per share, which were cancelled upon conversion of the Convertible Note on July 16, 2013. See the discussion under Note 9 for further details regarding the issued warrants related to the Convertible Note, subsequent amendment, and exercise of warrants.

 

The following table summarizes the warrants issued and outstanding as of December 31, 2013:

 

Warrants Issued and Outstanding as of December 31, 2013

  
     Date of      Exercise
Price		      Shares of  

Description

    Issuance      Expiration         Common Stock  

Exercisable warrants

            

Warrant 1-1

      03/22/12         03/21/17       $ 0.37         1,381,115   

Warrant 1-5

      10/10/12         10/09/17       $ 0.37         5,524,461   

Warrant 1-6

      03/29/13         03/21/17       $ 0.37         500,000   

Less warrants exercised

               (7,405,576 ) 
           

 

 

  

Total exercisable warrants

               —     

Contingent warrants

            

Warrant 1-2

      03/22/12         03/21/17       $ 0.37         345,278   

Warrant 1-3

      03/22/12         03/21/17       $ 0.37         345,278   

Warrant 1-4

      03/22/12         03/21/17       $ 0.37         690,557   

Less warrants cancelled

               (1,381,113 ) 
           

 

 

  

Total contingent warrants

               —     
           

 

 

  

Total warrants issued and outstanding

  

      —     
           

 

 

  

Stock Option Plan - In October 2012, we adopted our 2012 Incentive Compensation Plan (the “2012 Plan”) as the sole plan for providing equity-based incentive compensation to our employees, non-employee directors, and other service providers. The plan allows for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other incentive awards to our employees, non-employee directors, and other service providers who are in a position to make a significant contribution to our success and our affiliates. The purposes of the plan are to attract and retain individuals, further align employee and stockholder interests, and closely link compensation with our performance. The plan is administered by our board of directors. Our policy is to fulfill any exercise of options from common stock that is authorized and unissued. The maximum number of shares of common stock available for grant under the plan is 7,500,000. Stock compensation expense prior to October 2012 related to options granted prior to the Earth911 Merger that was superseded by the 2012 Plan at the time of the Earth911 Merger. The number of shares available for award under the plan is subject to adjustment for certain corporate changes in accordance with the provisions of the plan.

Following is a summary of stock option activity from January 1, 2012 through December 31, 2013:

 

     Stock Options  
     Number of
Shares		      Exercise
Price Per
Share		      Weighted-
Average
Exercise Price
Per Share		  

Outstanding at January 1, 2012

      1,381,115      $ 2.35      $ 2.35  

Granted

      1,969,000         2.00 – 2.79         2.10   

Canceled/Forfeited

      —          —          —    
  

 

 

        

Outstanding at December 31, 2012

      3,350,115         2.00 – 2.79         2.20   

Granted

      1,150,500         2.05 – 2.65         2.11   

Canceled/Forfeited

      358,667        2.10 – 2.79        2.18  
  

 

 

        

Outstanding at December 31, 2013

      4,141,948         2.00 – 3.25         2.48   
  

 

 

        

The weighted-average grant-date fair value of options granted was $1.69 and $2.10 for the years ended December 31, 2013 and 2012, respectively.

For the years ended December 31, 2013 and 2012, the intrinsic value of options outstanding was $72,125 and $2,331,698, respectively, and of options exercisable was $22,500 and $1,199,613, respectively.

 

The following additional information applies to options outstanding at December 31, 2013:

 

Ranges of

Exercise

Prices

    Outstanding at
December 31,
2013		      Weighted-
Average
Remaining
Contractual
Life		      Weighted-
Average
Exercise
Price		      Exercisable at
December 31,
2013		      Weighted-
Average
Exercise
Price		  

$2.00 – $3.25

      4,141,948         8.5       $ 2.48         2,939,448       $ 2.63   

The following additional information applies to options outstanding at December 31, 2012:

 

Ranges of

Exercise

Prices

    Outstanding at
December 31,
2012		      Weighted-
Average
Remaining
Contractual
Life		      Weighted-
Average
Exercise
Price		      Excercisable at
December 31,
2012		      Weighted-
Average
Exercise
Price		  

$2.00 – $2.79

      3,350,115         9.6       $ 2.20         1,922,782       $ 2.27   

Stock-based compensation expense for stock based incentive awards was $2,194,390 and $1,661,673 for the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, the balance of unearned stock-based compensation to be expensed in future periods related to unvested share-based awards, as adjusted for expected forfeitures, was approximately $2,435,000. The weighted-average period over which the unearned stock-based compensation is expected to be recognized is approximately 2.2 years.

Stock-Based Compensation - We account for all stock-based payment awards made to employees and directors, including stock options and employee stock purchases, based on estimated fair values. We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period, net of forfeitures.

We use the Black-Scholes-Merton option-pricing model as our method of valuation. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair value of share-based payment awards on the date of grant as determined by the Black-Scholes-Merton model is affected by our stock price as well as other assumptions. These assumptions include the expected stock price volatility over the term of the awards, the actual and projected employee stock option exercise behaviors, and an estimated forfeiture rate.

The weighted-average estimated value of employee stock options granted during the years ended December 31, 2013 and 2012 were estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions:

 

     Years Ended December 31,  
     2013     2012  

Expected volatility

      105 %      155 % 

Risk-free interest rate

      1.51 %      0.70 % 

Expected dividends

      0.00 %      0.00 % 

Expected term in years

      5.8        5.4