Stockholders Equity Note Disclosure [Text Block] | 13 STOCKHOLDERS’ EQUITY April 2014 Offering On April 22, 2014, the Company closed an underwritten public offering of 526,500 19.00 8,816,000 Reduction in Authorized Shares On June 11, 2014, the Board approved a resolution to amend the Corporation’s Certificate of Incorporation, declaring said resolution to be advisable, and calling for the submission of the following resolution to the shareholders to authorize the Board to decrease the number of authorized shares of common stock from 300,000,000 100,000,000 Purchase Agreements and Registration Rights Agreement with Lincoln Park $ 1,000,000 On September 22, 2014, the Company entered into a Purchase Agreement with Lincoln Park Capital Fund (“Lincoln Park”), pursuant to which we offered 50,000 20.00 961,000 50,000 $ 15,000,000 On September 19, 2014, the Company entered into a Purchase Agreement (the “$15M Purchase Agreement”) and a registration rights agreement with Lincoln Park. In consideration for entering into the transaction, the Company issued 17,500 15 346,000 19.80 15,000,000 The $15M Purchase Agreement provides that, from time to time over the term of the $15M Purchase Agreement, on any business day, as often as every other business day, and at our sole discretion, the Company may require Lincoln Park to purchase up to 10,000 15,000 20.00 20,000 25.00 25,000 30.00 1,000,000 15.00 On October 3, 2014, the Company filed a registration statement on Form S-1 with the SEC to register 478,291 15 17,500 4,857,906 Between October 20, 2014 and May 18, 2015, the Company had drawn down $ 145,000 10,000 0 346,000 346,000 $ 1,331,500 On November 25, 2014, the Company entered into a purchase agreement, pursuant to which the Company sold to Lincoln Park, certain officers and directors of the Company (the “Affiliate Purchasers”) and certain other investors (the “Other Investors”) an aggregate of $ 1,331,500 1,311,500 20,000 50,000 12.50 24,599 13.70 29,560 12.50 Equity Distribution Agreement with Roth Capital Partners, LLC On November 18, 2014, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Roth Capital Partners, LLC (“Roth”), pursuant to which the Company may sell from time to time up to $ 10,000,000 1,000,000 Issuance of common stock to 31 Group On December 30, 2014, the Company issued 3,315 August 2015 Underwritten Offering On August 19, 2015, the Company closed an underwritten public offering of its Class A Units, Class B Units, Series C Warrants and Series D Warrants. The Company offered (i) 2,550,000 1.00 Class A Unit, each of which consists of one share of common stock and 0.5 of a Series A Warrant to purchase one share of its common stock at an exercise price of $1.00 per warrant 2,450,000 0.99 Class B Unit, each of which consists of one pre-funded Series B Warrant to purchase one share of common stock and 0.5 of a Series A Warrant 2,550,000 0.01 1.00 4,950,000 0.01 0.99 0.99 4,975,500 Each Series A Warrant was immediately exercisable at an initial exercise price of $1.00 per share. The Series A Warrants will expire on the fifth anniversary of the initial date of issuance. Each Pre-funded Series B Warrant was immediately exercisable at an initial exercise price of $0.01 per share. The Pre-funded Series B Warrants will expire on the fifth anniversary of the initial date of issuance. Pre-funded Series B Warrants that expire unexercised will have no further value and the holder of such warrant will lose the pre-funded amount. Each Series C Warrant was exercisable for one additional Class A Unit, each of which consists of one share of our common stock and 0.5 of a Series A Warrant to purchase one share of our common stock. The Series C Warrants are exercisable immediately at an initial exercise price of $1.00 per Class A Unit, subject to adjustment. Beginning at the close of trading on the 60th trading day following the date of issuance, and effective beginning on the third (3rd) trading day immediately preceding such 60th trading day, the Series C Warrants will be exercisable at a per Class A Unit exercise price equal to the lowest of (i) the then-effective exercise price per Class A Unit, (ii) 80% of the closing price of our common stock on such 60th trading day and (iii) 80% of the average of the volume weighted average price of our common stock (‘‘VWAP’’) for the three (3) trading days ending and including the 60th trading day following the date of issuance. The Series C Warrants expired at the close of business at 5:00 p.m. (New York time) on November 19, 2015, the 65th trading day following the date of issuance. Each Series D Warrant was exercisable for one additional Class B Unit, each of which consists of one Pre-funded Series B Warrant to purchase one share of our common stock and 0.5 of a Series AWarrant to purchase one share of our common stock. The Series D Warrants are exercisable immediately at an initial exercise price of $0.99 per Class B Unit, subject to adjustment. Beginning at the close of trading on the 60th trading day following the date of issuance, and effective beginning on the third (3rd) trading day immediately preceding such 60th trading day, the Series D Warrants will be exercisable at a per Class B Unit exercise price equal to the lowest of (i) the then-effective exercise price per Class B Unit, (ii) 80% of the closing price of our common stock on such 60th trading day and (iii) 80% of the average of the VWAP for the three (3) trading days ending and including the 60th trading day following the date of issuance. The Series D Warrants will expired at the close of business at 5:00 p.m.(New York time) on November 19, 2015, the 65th trading day following the date of issuance. As a result of the net cash settlement provisions included in each of the warrants issued in the offering, the Company recorded an aggregate $ 3,368,000 1,607,000 945,000 640,000 305,000 At various dates from the date of the offering through December 31, 2015, all 2,450,000 2,450,000 17 1,197,000 From October 1, 2015 through November 19, 2015, 2,250,000 2,250,000 2,250,000 1,125,000 0.2518 From October 1, 2015 through November 19, 2015, 4,665,000 4,665,000 4,665,000 2,332,501 0.2518 4,665,000 4,665,000 Settlement with Holders of Series B Warrants On November 2, 2015, the Company entered into a Settlement Agreement and Mutual Release (the “Agreement”) with certain holders (the “Holders”) of the Company’s Series B Warrants to purchase common stock (the “Original Warrants”), issued in connection with the August 2015 underwritten offering. Upon the consummation of the Agreement, in full and complete satisfaction of all claims that the Holders made or could have made against the Company arising in connection with the Original Warrants, the Company delivered to the Holders new warrants initially exercisable to purchase, in the aggregate, two million four hundred fifty thousand ( 2,450,000 0.00001 0.75 Settlement of Amounts Due to Related Parties In October 2015, George Schmitt, Chief Executive Officer and Chairman of the Board, agreed to convert $ 500,000 892,858 500,000 Shares Issued for Services In 2015, the Company issued 1,363,333 1,325,221 469,411 509,072 Stock Options Equity Incentive Plans: The Company’s stock option plans provide for the grant of options to purchase shares of common stock to officers, directors, other key employees and consultants. The purchase price may be paid in cash or “net settled” in shares of the Company’s common stock. In a net settlement of an option, the Company does not require a payment of the exercise price of the option from the optionee, but reduces the number of shares of common stock issued upon the exercise of the option by the smallest number of whole shares that has an aggregate fair market value equal to or in excess of the aggregate exercise price for the option shares covered by the option exercised. Options generally vest over a three year period from the date of grant and expire ten years from the date of grant. Shares Shares Options Plan Name Options Authorized Options Granted Exercised Forfeited/Expired Outstanding 2004 14,287 14,287 (6,746) (4,683) 2,858 2005 14,287 14,287 (1,000) (13,287) 0 2006 31,429 31,011 (631) (7,242) 23,138 2007 2,858 2,572 (429) 2,143 2009 28,572 35,844 (1,005) (14,970) 19,869 2013 90,630 49,323 (12,644) 36,679 2015 236,500 236,500 (18,000) 218,500 Total 418,563 383,824 (9,382) (71,255) 303,187 The weighted average fair value of options granted was $ 2.16 12.18 2015 2014 Exercise price $ 2.55 $ 14.20 Volatility 116 % 118 % Risk-free interest rate 1.54 % 1.63 % Expected dividend yield 0 % 0 % Expected term (years) 6 6 The risk-free rate is based on the rate for the U.S. Treasury note over the expected term of the option. The expected term for employees represents the period of time that options granted are expected to be outstanding using the simplified method and for non-employee options, the expected term is the full term of the option. Expected volatility is based on the average of the weekly share price changes over the shorter of the expected term or the period from the placement on London Stock Exchange’s AIM Market to the date of the grant. The forfeiture rate for the year ended December 31, 2015 was 5.5 Weighted Number of Options Average (in Shares) Exercise Price Options Outstanding, January 1, 2015 95,940 $ 266.86 Granted 244,500 2.55 Exercised Forfeited or Expired (37,253) 53.75 Options outstanding, December 31, 2015 303,187 79.90 Exercisable, December 31, 2015 65,723 $ 356.27 As of December 31, 2015, the weighted average remaining contractual life was 8.26 4.29 Outstanding Exercisable Weighted Average Number Remaining Weighted Number Weighted Outstanding (in Contractual Life Average Exercisable (in Average Range of Exercise Prices shares) (in years) Exercise Price shares) Exercise Price $2.50 80.50 263,489 9.13 $ 6.34 26,474 $ 34.79 84 238 13,597 6.65 125.17 13,148 124.93 350 700 23,538 0.19 688.20 23,538 688.20 1,225 2,890 2,563 1.01 1,815.45 2,563 1,815.45 303,187 65,723 Under the provisions of ASC 718, the Company recorded approximately $ 530 625 269 305 261 320 0.5 0.6 53.75 In 2015 and 2014, no options were exercised. The intrinsic value of options exercisable at December 31, 2015 and 2014 was $ 0 0 498,000 830,000 The Company had approximately $0.5 million of unrecognized stock-based compensation expense related to unvested stock options, net of estimated forfeitures, as of December 31, 2015, which we expect to be recognized over the next three years. Warrants: The Company has issued warrants, at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance in connection with numerous financing transactions. Number of Weighted Options/Warrants Average (in Shares) Exercise Price Warrants Outstanding, January 1, 2015 462,116 $ 61.60 Granted 23,172,251 0.51 Exercised (14,030,000) 0.13 Forfeited or Expired (585,000) 1.15 Warrants Outstanding, December 31, 2015 9,019,367 4.21 Exercisable, December 31, 2015 9,019,367 $ 4.21 Weighted Average Remaining Number Outstanding (in Contractual Life Exercise Price shares) (in years) $0.75 2,450,000 2.83 $1.00 5,957,501 4.77 $11.50 145,000 4.10 $20.00 42,250 4.14 $21.88 17,145 2.89 $35.00 7,074 2.65 $55.00 57,144 0.13 $68.70 326,680 2.66 $78.70 1,429 0.28 $87.50 14,286 2.04 $350.00 858 1.20 Exercisable, December 31, 2015 9,019,367 |