XML 37 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
Stockholders' Equity
 12 Months Ended
Dec. 31, 2015
Shareholders' Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 13: STOCKHOLDERS’ EQUITY

 

On October 15, 2015, directly related to the ConeXus merger, we issued 16,000,000 shares of our common stock valued at $0.22 per share on the acquisition date for a fair value of $3.52 million.

 

On August 20, 2014, under reverse acquisition accounting, the amount of common stock reflects the equity structure of the legal acquirer (the par value and the number of shares outstanding of WRT). Under purchase accounting, stockholders’ equity reflects the recognition of approximately 46.2 million shares of our common stock issued and outstanding upon completion of the merger. Amounts in additional paid-in capital represent that of Creative Realities, adjusted to reflect the additional fair value of our shares issued, less the par value of our shares outstanding after the combination, and includes $1.4 million to reflect the portion of the purchase price related to the total estimated fair value of WRT warrants and the vested stock options outstanding on the merger date. Accumulated deficit represents that of Creative Realities prior to the merger date.

 

In addition to the warrants outstanding related to the Series A Convertible Preferred Stock discussed in Note 11, we have other warrants outstanding at December 31, 2015. As discussed in Note 1, in connection with the merger transaction, we issued a warrant to the parent of Creative Realities to purchase 1.8 million our common shares at an as adjusted exercise price of $0.37 per share. These warrants expire in August 2019. As discussed in Note 2, outstanding WRT warrants carried over, which in the aggregate allow for purchase of up to 2.8 million shares at prices ranging from $.70 to $83.37 and a weighted average exercise price of $7.60.

 

Under reverse acquisition accounting, as the accounting acquirer, Creative Realities is deemed (for accounting purposes only) to have issued replacement options to the registrant’s option holders, replacement warrants to the registrant’s warrant holders, in addition to the other issuances of warrants described above. All of registrant’s stock options were deemed to have vested in connection with a change of control (contemplated as part of the original award) as of the effective date of the transaction on August 20, 2014, and were included as purchase price consideration.

 

A summary of outstanding options is included below:

 

     Weighted          
     Average  Weighted     Weighted 
     Remaining  Average     Average 
Range of Exercise Number  Contractual  Exercise  Options  Exercise 
Prices between Outstanding  Life  Price  Exercisable  Price 
$0.19 - $0.45  7,758,536   9.38  $0.30   1,358,537  $0.24 
$0.46 - $0.79  90,000   8.04   0.79   90,000  $0.20 
$0.80 - $12.25  50,042   6.59   3.56   50,042  $3.56 
   7,898,578   6.44  $0.27         

 

 

  Options  Weighted Average 
  Outstanding  Exercise Price 
Balance, December 31, 2014 5,613,977  $1.45 
Granted  7,557,714   0.19 
Exercised  -   - 
Forfeited or expired  (5,273,113)  0.78 
Balance, December 31, 2015 7,898,578  $0.33 

 

The weighted average remaining contractual life for options exercisable is 9.26 years as of December 31, 2015.