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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2017
Stockholders Equity Note [Abstract] |
Stockholders Equity Note Disclosure [Text Block] |
14. | Stockholders’ Equity
Preferred Stock The Company has authorized 1,000,000 shares of preferred stock, $0.001 par value per share, which may be divided into series and with preferences, limitations and relative rights determined by the Board of Directors. Common Stock On May 6, 2016, the Company held its 2016 annual meeting of stockholders. The stockholders approved an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of common stock from 45,714,286 to 95,000,000 shares. 2011 Plan The Company maintains the 2011 Long-Term Incentive Plan (the “2011 Plan”) that provides for the granting of stock options, restricted stock units (“RSUs”), restricted stock and other awards to employees, directors and others. A total of 182,857 shares of common stock have been authorized for issuance under the 2011 Plan, of which, as of December 31, 2017, 30,903 shares were available for future issuances. 2014 Plan The Company maintains the 2014 Long-Term Incentive Plan (the “2014 Plan”) that provides for the granting of stock options, RSUs, restricted stock and other awards to employees, directors and others. On February 26, 2015 and May 6, 2015, the Company’s Board of Directors and the Company’s shareholders, respectively, approved an amendment to the 2014 Plan to increase the total number of shares of common stock authorized for issuance under the 2014 Plan by an additional 350,000 shares. On April 26, 2017 and June 23, 2017, the Company’s Board of Directors and the Company’s shareholders, respectively, approved an amendment to the 2014 Plan to increase the total number of shares of common stock authorized for issuance under the 2014 Plan by an additional 400,000 shares. A total of 950,000 shares of common stock are reserved for award under the 2014 Plan, of which, as of December 31, 2017, 92,459 shares were available for future issuances. Private Placement On February 27, 2017, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company agreed to issue and sell to the investors in a private placement (the “Private Placement”) an aggregate of 554,000 shares of the Company’s common stock at a purchase price of $5.00 per share. The Company closed the Private Placement on the same day as it entered into the Securities Purchase Agreement and received aggregate gross proceeds of approximately $2.8 million. In connection with the Private Placement, the Company paid an aggregate of $196,000 of financial advisory fees and $40,000 of administrative fees, which were recorded as a reduction of additional paid-in capital. The Securities Purchase Agreement contains a “most-favored nation” provision that provides that if the Company, during 120 days from February 27, 2017, issues or sells any common stock or common stock equivalents reasonably believed to be more favorable in terms or conditions than those in the Private Placement, then the Company must amend the terms of the Securities Purchase Agreement to give the private investors the benefit of such favorable terms or conditions. In connection with the common stock sold in the Public Offering (as defined below) and in accordance with this provision, on April 11, 2017, the Company issued an aggregate of 38,072 shares of its common stock to these investors. On June 23, 2017, the Company held its 2017 annual meeting of stockholders during which the stockholders approved the issuance of the remaining 100,428 additional shares of common stock to be issued to the investors, and, following the meeting, on June 23, 2017, the Company issued the remaining shares. Underwritten Public Offering On April 3, 2017, the Company closed an underwritten public offering (the “Public Offering”) of 947,325 shares of its common stock at a price to the public of $4.00 per share. The Company received aggregate gross proceeds of approximately $3.8 million. In connection with the Public Offering, the Company paid an aggregate of $365,000 of financial advisory fees and $92,000 of administrative fees, which were recorded as a reduction of additional paid-in capital. The shares of common stock were issued pursuant to the Company’s shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission and declared effective on September 25, 2014. On April 3, 2017, the Company issued warrants to purchase an aggregate of 23,686 of the Company’s common stock to the underwriter of this offering. These warrants are immediately exercisable, have an exercise price of $4.40, and expire on March 29, 2022. The warrants had an aggregate issuance date fair value of $78,000 which was recorded as both a debit and credit to additional paid in capital. Pursuant to an anti-dilution provision provided in the warrants dated November 8, 2012 to purchase common stock at an initial exercise price of $21.90, the exercise price of these warrants was adjusted to the public offering price of $4.00. As of April 3, 2017, November 2012 warrants to purchase 36,231 shares of the Company’s common stock were outstanding. These warrants expired in November 2017. Stock-Based Compensation For the year ended December 31, 2017, the Company recognized $2.0 million of stock-based compensation expense, of which, $45,000 is included in cost of revenues and $2.0 million is included in selling, general and administrative expenses in the consolidated statements of operation. For the year ended December 31, 2016, the Company recognized $4.9 million of stock-based compensation expense, of which, $0.2 million is included in cost of revenues and $4.7 million is included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2017, there was $0.7 million of unrecognized stock-based compensation expense which will be amortized over a weighted average period of 0.8 years. Restricted Stock During the year ended December 31, 2017, the Company granted an aggregate of 181,936 shares of restricted stock to employees with an aggregate grant date value of $621,000, which will be recognized proportionate to the vesting period. The shares vest as follows: (i) 66,936 shares vest on September 21, 2017, (ii) 5,000 shares vest on December 31, 2017, (iii) 50,000 shares vest on June 23, 2018, and (iv) 60,000 shares vest pursuant to the satisfaction of certain performance conditions. During the year ended December 31, 2016, the Company granted an aggregate of 102,500 shares of restricted stock to employees with an aggregate grant date value of $1,076,000, which will be recognized proportionate to the vesting period. The shares vest as follows :(i) 32,500 vested the earlier of February 9, 2017 or the participants termination of service by the Company without cause and (ii) 70,000 shares vest pursuant to the satisfaction of certain performance conditions. A summary of restricted stock award activity during the year ended December 31, 2017 and 2016 is presented below (in thousands, except per share data):
|  | Number of Shares |  | Weighted Average Grant Date Fair Value Per Share |  | Total Grant Date Fair Value |
Non-vested, December 31, 2015 |  |  | 69 |  | $ | 61.10 |  | $ | 4,226 |
Granted |  |  | 103 |  |  | 10.50 |  |  | 1,076 |
Vested |  |  | (24) |  |  | 60.00 |  |  | (1,428) |
Forfeited |  |  | (1) |  |  | 14.60 |  |  | (12) |
Non-vested, December 31, 2016 |  |  | 147 |  | $ | 26.26 |  | $ | 3,862 |
Granted |  |  | 182 |  |  | 3.41 |  |  | 621 |
Vested |  |  | (137) |  |  | 17.35 |  |  | 2,373 |
Forfeited |  |  | (2) |  |  | 3.87 |  |  | - |
Non-vested, December 31, 2017 |  |  | 190 |  | $ | 11.07 |  | $ | 6,856 |
Warrants See Note 12 - Debt – Senior Secured Term Loan Facility for details associated with a warrant issued in connection with debt. There were no compensatory warrants issued during the year ended December 31, 2017. A summary of the warrant activity during the year ended December 31, 2017 and 2016 is presented below (in thousands, except years and per warrant data):
|  | Number of Warrants |  | Weighted Average Exercise Price per Warrant |  | Weighted Average Remaining Life in Years |  | Intrinsic Value |
Outstanding, December 31, 2015 |  |  | 338 |  | $ | 57.00 |  |  |  |  |  |  |
Issued |  |  | - |  |  | - |  |  |  |  |  |  |
Exercised |  |  | - |  |  | - |  |  |  |  |  |  |
Cancelled |  |  | (1) |  |  | 87.50 |  |  |  |  |  |  |
Outstanding, December 31, 2016 |  |  | 337 |  | $ | 56.90 |  |  |  |  | $ | - |
Issued |  |  | 159 |  |  | 4.66 |  |  |  |  |  |  |
Adjustment for price reset |  |  | 29 |  |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  | - |  |  |  |  |  |  |
Cancelled |  |  | (47) |  |  | 9.35 |  |  |  |  |  |  |
Outstanding, December 31, 2017 |  |  | 478 |  | $ | 32.79 |  |  | 2.4 |  | $ | - |
Exercisable, December 31, 2017 |  |  | 478 |  | $ | 32.79 |  |  | 2.4 |  | $ | - |
The following table presents information related to warrants at December 31, 2017 (in thousands, except years and per warrant data):
Warrants Outstanding |  | Warrants Exercisable |
Exercise Price |  | Outstanding Number of Warrants |  | Weighted Average Remaining Life in Years |  | Exercisable Number of Warrants |
$4.0 - $21.80 |  |  | 233 |  |  | 4.1 |  |  | 233 |
$40.00 - $49.99 |  |  | 98 |  |  | 0.5 |  |  | 98 |
$50.00 - $59.90 |  |  | 104 |  |  | 0.9 |  |  | 104 |
$60.00 - $105.00 |  |  | 43 |  |  | 1.3 |  |  | 43 |
|  |  | 478 |  |  | 2.4 |  |  | 478 |
As of December 31,2017 and 2016, warrants to purchase an aggregate of 210,000 and 81,628 shares of common stock at a weighted average exercise price of $4.70 and $52.40 per share, respectively, were deemed to be a derivative liability. See Note 18– Fair Value Measurement. Stock Options During 2016, the Company granted ten-year options to purchase an aggregate of 164,976 shares of common stock at exercise prices ranging from $8.00 to $22.00 with an aggregate grant date value of $1.3 million to employees and directors pursuant to the 2014 Plan. The options vest as follows: (i) 22,500 shares vest one-twelfth monthly over one year, and (ii) 142,400 shares vest ratably over three years on the anniversaries of the grant date. The grant date value is being amortized over the vesting term. During 2017, the Company granted ten-year options to purchase an aggregate of 258,105 shares of common stock at exercise prices ranging from $2.09 to $5.70 per share with an aggregate grant date value of $642,000 to non-executive employees and directors pursuant to the 2014 Plan. The options vest as follows: (i) 45,045 shares vest one-twelfth monthly over one year, and (ii) 213,060 shares vest in one-fourth increments every six months over a period of two years. The grant date value is being amortized over the vesting term. In applying the Black-Scholes option pricing model to stock options granted, the Company used the following assumptions:
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |
Risk free interest rate |  | 1.81% - 2.43% |  | 1.14% - 2.06% |
Expected term (years) |  | 5.04 – 6.50 |  | 5.04 – 6.50 |
Expected volatility |  | 81.94% - 87.00% |  | 89.53% - 89.95% |
Expected dividends |  | 0.00% |  | 0.00% |
The risk-free interest rate is based on rates of treasury securities with the same expected term as the options. The Company uses the “simplified method” to calculate the expected term of employee and director stock-based options. The expected term used for consultants is the contractual life. The Company is utilizing an expected volatility figure based on a review of the Company’s historical volatility, over a period of time, equivalent to the expected life of the instrument being valued. The expected dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the near future. Option forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate will be adjusted periodically based on the extent to which actual option forfeitures differ, or are expected to differ, from the previous estimate, when it is material. The Company estimated forfeitures related to options at annual rates ranging from 0% to 5% for options outstanding at December 31, 2017 and 2016. The weighted average estimated grant date fair value of the options granted during the years ended December 31, 2017 and 2016 was $2.49 and $7.73 per share, respectively. A summary of the stock option activity during the years ended December 31, 2017 and 2016 is presented below (in thousands, except years and per option data):
|  | Number of Options |  | Weighted Average Exercise Price per Option |  | Weighted Average Remaining Life in Years |  | Intrinsic Value |
Outstanding, December 31, 2015 |  |  | 623 |  | $ | 62.60 |  |  |  |  |  |  |
Granted |  |  | 165 |  |  | 10.50 |  |  |  |  |  |  |
Exercised |  |  | - |  |  | - |  |  |  |  |  |  |
Forfeited |  |  | (68) |  |  | 39.50 |  |  |  |  |  |  |
Outstanding, December 31, 2016 |  |  | 720 |  | $ | 52.90 |  |  |  |  |  |  |
Granted |  |  | 258 |  |  | 3.53 |  |  |  |  |  |  |
Exercised |  |  | - |  |  | - |  |  |  |  |  |  |
Forfeited |  |  | (168) |  |  | 40.60 |  |  |  |  |  |  |
Outstanding, December 31, 2017 |  |  | 810 |  | $ | 39.67 |  |  | 6.3 |  | $ | - |
Exercisable, December 31, 2017 |  |  | 658 |  | $ | 42.71 |  |  | 5.6 |  | $ | - |
The following table presents information related to stock options at December 31, 2017 (in thousands, except years and per option data):
|  | Options Outstanding |  | Options Exercisable |  |  |  |
Range of Exercise Price |  | Weighted Average Exercise Price |  | Outstanding Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life in Years |  | Exercisable Number of Options |
$2.00 - $4.00 |  | $ | 3.52 |  |  | 222 |  |  | 3.57 |  |  | 8.9 |  |  | 68 |
$4.10 - $9.90 |  |  | 8.54 |  |  | 32 |  |  | 8.61 |  |  | 6.8 |  |  | 143 |
$10.00 - $19.90 |  |  | 10.58 |  |  | 80 |  |  | 10.59 |  |  | 7.6 |  |  | 28 |
$20.00 - $29.90 |  |  | 23.08 |  |  | 1 |  |  | 22.90 |  |  | 4.1 |  |  | 1 |
$30.00 - $39.90 |  |  | 33.72 |  |  | 47 |  |  | 33.72 |  |  | 5.6 |  |  | 45 |
$40.00 - $49.90 |  |  | 46.61 |  |  | 68 |  |  | 46.01 |  |  | 6.0 |  |  | 66 |
$50.00 - $59.90 |  |  | 52.99 |  |  | 51 |  |  | 53.20 |  |  | 5.5 |  |  | 39 |
$60.00 - $69.90 |  |  | 66.06 |  |  | 205 |  |  | 66.47 |  |  | 4.4 |  |  | 185 |
$70.00 - $79.90 |  |  | 77.54 |  |  | 3 |  |  | 77.54 |  |  | 6.3 |  |  | 3 |
$80.00 - $89.90 |  |  | 87.40 |  |  | 74 |  |  | 87.36 |  |  | 2.0 |  |  | 53 |
$90.00 - $99.90 |  |  | 90.04 |  |  | 21 |  |  | 90.04 |  |  | 3.5 |  |  | 21 |
$100.00 - $266.90 |  |  | 110.13 |  |  | 6 |  |  | 110.13 |  |  | 5.2 |  |  | 6 |
|  |  |  |  |  | 810 |  |  |  |  |  | 5.6 |  |  | 658 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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