Stockholders' Equity | 7. Equity (Deficit) Stock-based compensation expense is based on the estimated grant date fair value of the portion of stock-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes-Merton valuation model. Forfeitures of stock-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the three months ended March 31, 2016 and 2015 was approximately 11.89% and 7.57%, respectively, based on historical data. Valuation and Expense Information: The weighted-average fair value of stock-based compensation is based on the Black-Scholes-Merton valuation model. Forfeitures are estimated and it is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards to employees is amortized over the vesting period of the options. The fair value calculations are based on the following assumptions: Three Months Ended Three Months Ended Risk free interest rate 0.04% - 3.19% 0.04% - 3.73% Expected term (years) 2.82 - 7.00 3.26 - 7.00 Expected volatility 112.75% - 198.90% 91.99% - 198.38% Expected dividends None None There were no stock options granted, and no stock options exercised during the three months ended March 31, 2016. The Company granted 29 stock options during the three months ended March 31, 2015 at a weighted average exercise price of $28.13 per share. No stock options were exercised during the three month period ended March 31, 2015. The following table summarizes the allocation of stock-based compensation expense for the three months ended March 31: 2016 2015 Research and development $19 $65 Sales and marketing 14 52 General and administrative 24 80 Director 8 16 Total stock-based compensation $65 $213 A summary of option activity under the Company's plans for the three months ended March 31, 2016 and 2015 is as follows: Options 2016 2015 Shares Weighted Weighted Aggregate Shares Weighted Weighted Aggregate Outstanding 82 $45.35 57 $56.20 Granted - $- 28 $28.20 Forfeited or (7) $40.51 - $- Outstanding 75 $45.84 3.86 85 $46.90 4.87 Vested and 72 $46.42 3.80 $- 83 $47.40 4.82 $- Exercisable 59 $52.16 3.21 47 $57.70 3.67 The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2016: Range of Exercise Prices Options Outstanding Options Exercisable Number Weighted Weighted Number Weighted $25.00 - $625.00 75 3.86 $ 45.84 59 $ 52.16 A summary of the status of the Company's non-vested shares as of March 31, 2016 is as follows: Non-vested Shares Shares Weighted Non-vested at January 1, 2016 25 $28.61 Forfeited (4) $28.80 Vested (5) $38.06 Non-vested at March 31, 2016 16 $26.47 As of March 31, 2016, there was $179 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements granted under the plans. The unrecognized compensation expense is expected to be realized over a weighted average period of 1.9 years. Preferred Stock Information with respect to the classes of Preferred Stock as of March 31, 2016 is as follows: Class of Annual Annual Liquidation Conversion Total Common Series A-1 8% Quarterly in $1.00 $0.01555 966 50 Series B 10% Quarterly in $1.50 $0.01037 13,861 1,069 Series C 10% Quarterly in $1.50 $0.00777 5,628 579 Series D-1 10% Quarterly in $1.00 $0.00579 8,278 1,144 Series D-2 10% Quarterly in $1.00 $0.00686 6,539 763 Total 35,272 3,605 Information with respect to dividends and Preferred Shares issued for the periods ended March 31 is as follows: Dividends Beneficial Preferred Shares Beneficial March 31, March 31, March 31, March 31, 2016 2015 2016 2015 2016 2015 2016 2015 Series A-1 $19 $17 $3 $- $- $- $- $- Series B 337 302 73 - - - - - Series C 137 123 39 13 - - - - Series D-1 202 145 78 16 - 1,200 - 498 Series D-2 159 143 52 - - - - - Total $854 $730 $245 $29 - $1,200 $- $498 Series D Preferred Stock On March 24, 2015, the Company sold for $1,200 in cash, net of $33 in administrative fees paid in cash to SG Phoenix, 1,233 shares of Series D-1 Preferred Stock. Investors received warrants to purchase 22 shares of Common Stock, immediately exercisable at $29 per share. In October 2015 the investors received additional warrants to purchase 18 shares of Common Stock immediately exercisable at $16 per share, and the exercise price of the March 2015 warrants was reduced to $16 per share consistent with the terms of the July 2015 financing. The warrants expire March 23, 2018. The Company ascribed a value of $422 to the warrants using the Black-Scholes-Merton pricing model. The warrants are exercisable in whole or in part. Warrants A summary of the warrant activity for the three months ended March 31 is as follows: 2016 2015 Warrants Weighted Warrants Weighted Outstanding at beginning of period 206 $28.70 171 $36.13 Issued - $- 22 $28.13 Expired/Canceled - $- (9) $- Outstanding at end of period 206 $28.70 184 34.63 Exercisable at end of period 206 $28.70 184 $34.63 A summary of the status of the warrants outstanding and exercisable as of March 31, 2016 is as follows: Number of Warrants Weighted Average Weighted Average 14 0.04 $2.56 105 0.40 $17.64 33 0.12 $4.42 54 0.54 $4.09 206 1.11 $28.70 |