0001513162-15-000456.txt : 20150803 0001513162-15-000456.hdr.sgml : 20150801 20150803171323 ACCESSION NUMBER: 0001513162-15-000456 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20150803 DATE AS OF CHANGE: 20150803 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLUE CALYPSO, INC. CENTRAL INDEX KEY: 0001399587 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 208610073 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-53981 FILM NUMBER: 151023212 BUSINESS ADDRESS: STREET 1: 19111 NORTH DALLAS PARKWAY STREET 2: SUITE 200 CITY: DALLAS STATE: TX ZIP: 75287 BUSINESS PHONE: 972.695.4776 MAIL ADDRESS: STREET 1: 19111 NORTH DALLAS PARKWAY STREET 2: SUITE 200 CITY: DALLAS STATE: TX ZIP: 75287 FORMER COMPANY: FORMER CONFORMED NAME: JJ&R Ventures, Inc. DATE OF NAME CHANGE: 20070515 10-Q 1 form10q.htm FORM 10-Q form10q.htm - Generated by SEC Publisher for SEC Filing  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended June 30, 2015

 

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition Period from _________ to _________

 

Commission file number: 000-53981

 

BLUE CALYPSO, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

20-8610073

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

101 W Renner Rd, Suite 280

Richardson, Texas 75082

(Address of principal executive offices) (Zip Code)

 

(972) 695-4776

(Registrants telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x  No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x   No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,”  “accelerated filer,”  and “smaller reporting company”  in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

              (Do not check if a smaller reporting company)

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

As of August 3, 2015, there were 5,013,366 shares of registrants common stock outstanding.

 


 
 

 

BLUE CALYPSO, INC.

INDEX

       

 

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1.

Financial Statements

 

 

 

 

 

 

 

Condensed consolidated balance sheets as of June 30, 2015 (unaudited) and December 31, 2014

3

 

 

 

 

 

 

Condensed consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 (unaudited)

4

 

 

 

 

 

 

Condensed consolidated statement of stockholders’ equity for the six months ended June 30, 2015 (unaudited)

5

 

 

 

 

 

 

Condensed consolidated statements of cash flows for the six months ended June 30, 2015 and 2014 (unaudited)

6

 

 

 

 

 

 

Notes to condensed consolidated financial statements (unaudited)

7-14

 

 

 

 

 

ITEM 2.  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15-23

 

 

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

23

 

 

 

 

 

ITEM 4.

Controls and Procedures

23

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

 

ITEM 1.

Legal Proceedings

24-25

 

 

 

 

 

ITEM 1A.

Risk Factors

25

 

 

 

 

 

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

 

 

 

 

 

ITEM 3.

Defaults Upon Senior Securities

25

 

 

 

 

 

ITEM 4.

Mine Safety Disclosures

25

 

 

 

 

 

ITEM 5.

Other Information

25

 

 

 

 

 

ITEM 6. Exhibits

26-29

 

 

 

 

SIGNATURES

30

 

Note: On June 26, 2015, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value, whereby 250,666,631 outstanding shares of the Company’s common stock were converted into 5,013,366 shares of the Company's common stock. The reverse stock split was effective in the market commencing on July 2, 2015. All per share amounts and number of shares in the condensed consolidated financial statements, related notes and other items throughout this Form 10-Q have been retroactively restated to reflect the reverse stock split.

 


 
 

Table of Contents

PART I –  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BLUE CALYPSO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

June 30,

2015

 

December 31,

2014

 

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

$

74,725

 

$

1,103,201

Accounts receivable, net

 

79,618

 

 

167,396

Prepaid expenses and other current assets

 

47,912

 

 

50,356

Total current assets

 

202,255

 

 

1,320,953

 

 

 

 

 

 

Property and equipment, net

 

10,022

 

 

6,315

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Deferred offering costs

 

79,912

 

 

-

Capitalized software development costs, net of accumulated amortization of $1,156,478 and $986,502 as of June 30, 2015 and December 31, 2014, respectively

 

775,190

 

 

794,551

Total assets

$

1,067,379

 

$

2,121,819

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

108,139

 

$

24,600

Accrued expenses

 

107,040

 

 

236,526

Deferred revenue

 

                           -

 

 

1,100

Total current liabilities

 

215,179

 

 

262,226

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000,000 shares authorized: Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; -0- and 161,827 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively

 

                            -

 

 

16

Common stock, $0.0001 par value; 680,000,000 shares authorized, 5,013,366 and 4,902,639 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively

 

501

 

 

490

Additional paid in capital

 

34,323,624

 

 

34,026,321

Accumulated deficit

 

(33,471,925)

 

 

(32,167,234)

Total stockholders' equity

 

852,200

 

 

1,859,593

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

1,067,379

 

$

2,121,819

See the accompanying notes to these unaudited condensed consolidated financial statements

3


 
 
 

BLUE CALYPSO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2015

 

2014

 

2015

 

2014

REVENUE

$

109,489

 

$

122,032

 

$

225,214

 

$

286,247

Cost of revenue

 

44,665

 

 

71,046

 

 

99,777

 

 

144,793

Gross profit

 

64,824

 

 

50,986

 

 

125,437

 

 

141,454

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

105,681

 

 

144,949

 

 

154,255

 

 

308,466

General and administrative

 

566,078

 

 

1,178,874

 

 

1,101,625

 

 

2,251,250

Depreciation and amortization

 

88,154

 

 

84,776

 

 

172,775

 

 

168,191

Total operating expenses

 

759,913

 

 

1,408,599

 

 

1,428,655

 

 

2,727,907

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(695,089)

 

 

(1,357,613)

 

 

(1,303,218)

 

 

(2,586,453)

 

 

 

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivative liabilities

 

                        -

 

 

487

 

 

 -

 

 

2,030

Interest expense

 

(757)

 

 

(96,126)

 

 

(1,473)

 

 

(614,190)

Total other expense

 

(757)

 

 

(95,639)

 

 

(1,473)

 

 

(612,160)

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

$

(695,846)

 

$

(1,453,252)

 

$

(1,304,691)

 

$

(3,198,613)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

$

(0.14)

 

$

(0.34)

 

$

(0.26)

 

$

(0.78)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

4,985,204

 

 

4,218,096

 

 

4,951,625

 

 

4,110,304

See the accompanying notes to these unaudited condensed consolidated financial statements


4
 

 

BLUE CALYPSO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

SIX MONTHS ENDED JUNE 30, 2015

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

Paid in

Capital

 

 

 

 

Total

Stockholders'

Equity

 

Preferred Stock

 

Common Stock

 

 

Accumulated

Deficit

 

 

Shares

 

Amount

 

Shares

 

Amount

 

 

 

Balance, January 1, 2015

161,827

 

$

16

 

4,902,639

 

$

490

 

$

34,026,321

 

$

(32,167,234)

 

$

1,859,593

Conversion of preferred shares to common shares

(161,827)

 

 

(16)

 

47,646

 

 

5

 

 

11

 

 

 -

 

 

                           -

Shares issued for services rendered

 -

 

 

-

 

19,461

 

 

2

 

 

128,399

 

 

-

 

 

128,401

Stock based compensation

-

 

 

-

 

43,620

 

 

4

 

 

168,893

 

 

-

 

 

168,897

Net loss

  -

 

 

 -

 

 -

 

 

 

 

 -

 

 

(1,304,691)

 

 

(1,304,691)

Balance, June 30, 2015

 -

 

$

 -

 

5,013,366

 

$

501

 

$

34,323,624

 

$

(33,471,925)

 

$

852,200

See the accompanying notes to these unaudited condensed consolidated financial statements


5


 
 

 

BLUE CALYPSO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

 

 

 

 

Six months ended June 30,

 

2015

 

2014

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net loss

$

(1,304,691)

 

$

(3,198,613)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

172,775

 

 

168,191

Bad debt expense

 

19,141

 

 

                          -

Amortization of debt discounts

 

                              -

 

 

125,550

Interest from warrant modification

 

                              -

 

 

460,949

Change in fair value of derivative liabilities

 

                              -

 

 

(2,030)

Stock based compensation

 

168,897

 

 

1,109,565

Common stock issued for services rendered

 

128,401

 

 

80,000

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

68,637

 

 

(65,287)

Prepaid expenses

 

2,444

 

 

35,430

Accounts payable

 

83,539

 

 

(56,197)

Accrued expenses

 

(129,486)

 

 

44,396

Deferred revenue

 

(1,100)

 

 

48,069

  Net cash used in operating activities

 

(791,443)

 

 

(1,249,977)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Purchase of fixed assets

 

(6,506)

 

 

                          -

Software development costs

 

(150,615)

 

 

(63,434)

  Net cash used in investing activities

 

(157,121)

 

 

(63,434)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Proceeds from exercise of options

 

                              -

 

 

21,728

Deferred offering costs

(79,912)

-

Proceeds from exercise of warrants

 

                              -

 

 

1,024,558

  Net cash (used) provided by financing activities

 

(79,912)

 

 

1,046,286

 

 

 

 

 

 

Net decrease in cash

 

(1,028,476)

 

 

(267,125)

 

 

 

 

 

 

Cash at beginning of period

 

1,103,201

 

 

1,294,882

Cash at end of period

$

74,725

 

$

1,027,757

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION

 

 

 

 

 

Cash paid for interest

$

1,473

 

$

 -

Cash paid for income taxes

$

 -

 

$

 -

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

Issuance of shares upon conversion of Series A convertible preferred stock

$

16

 

$

-

 

 

 

 

 

 

See the accompanying notes to these unaudited condensed consolidated  financial statements

 

6

 


 
 

Table of Contents

 

BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Blue Calypso, Inc., a Delaware corporation (the "Company”), is engaged in the development, sales, delivery, licensing and enforcement of technology and intellectual property focused on mobile shopper engagement and digital word-of-mouth marketing and advertising. In January 2014, the Company transitioned from a development stage enterprise to an operating company.

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the operating results for the full year ending December 31, 2015, or any other period.  These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of December 31, 2014 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 17, 2015.

 

NOTE 2 –GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

 

As of June 30, 2015, the Company had cash of $74,725 and a working capital deficit of $12,924. During the six months ended June 30, 2015, the Company used net cash in operating activities of $791,443. The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (See Note 14) for a purchase price of $500,000.  It is anticipated that the proceeds from this note will provide the Company with cash sufficient to fund operations through September 2015. 

 

The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, preferred stock, convertible debentures and the exercise of warrants. On April 6, 2015, the Company entered into a letter of engagement with a third party firm pursuant to which the firm will act as the sole book runner and lead managing underwriter in connection with a potential registered follow–on offering of common stock or a combination of common stock and warrants. On May 26, 2015, the Company filed a Registration Statement on Form S-1 associated with this potential offering. In conjunction with the potential offering, we have applied for our shares to be listed on a national securities exchange. There can be no assurance that the follow-on offering will be completed, that our application to the national securities exchange will be accepted or that funds associated with this potential offering will be available on terms acceptable to the Company, or that the funds from such offering will be sufficient to enable the Company to fully execute its business plan or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.  

 

Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

 

7

 


 
 

Table of Contents

 

BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

 

Concentrations of Credit Risk

 

As of June 30, 2015, three customers represented 35%, 27% and 18% of the Company’s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company’s accounts receivable.

 

During the three months ended June 30, 2015, two customers represented 56% and 20% of total revenue.

 

During the six months ended June 30, 2015, three customers represented 60%, 15% and 11% of total revenue.

 

During the three months ended June 30, 2014, three customers represented 57%, 15% and 12% of total revenue.

 

During the six months ended June 30, 2014, three customers represented 46%, 24% and 14% of total revenue.

 

Deferred Offering Costs

The Company classifies amounts related to a potential future offering not closed as of the balance sheet date as Deferred Offering Costs. During the six months ended June 30, 2015, the Company capitalized costs in the amount of $79,912 as Deferred Offering Costs in the accompanying condensed consolidated balance sheet.

Net Loss per Share

 

The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period,adjusted to give effect to the 50-for-1 reverse stock split, which was effective in the market on July 2, 2015 (see Note 4), and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

 

8

 


 
 

Table of Contents

 

BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:

 

 

June 30,

2015

 

June 30,

2014

 

 

Convertible notes payable

-

 

60,000

Series A convertible preferred stock

-

 

220,913

Options to purchase common stock

565,939

 

517,406

Warrants to purchase common stock

220,913

 

240,092

 Restricted stock units

-

 

88,843

Totals

786,852

 

1,127,254


Recent Accounting Pronouncements

 

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled “Simplifying the Presentation of Debt Issuance Costs.” The new guidance specifies that debt issuance costs under the new standard are to be netted against the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement.  The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for public business entities and interim periods within those fiscal years.  Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

 

There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

 

Subsequent Events

 

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.

 

NOTE 4 STOCKHOLDERSEQUITY

 

On June 26, 2015, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value, whereby 250,666,631 outstanding shares of the Company’s common stock were converted into 5,013,366 shares of the Company's common stock. The reverse stock split was effective in the market commencing on July 2, 2015. All per share amounts and number of shares in the condensed consolidated financial statements, related notes and other items throughout this Form 10-Q have been retroactively restated to reflect the reverse stock split.

 

9


 
 

Table of Contents

 

BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

 

On March 3, 2015, 161,827 shares of the Company’s Series A Convertible Preferred Stock were converted into an aggregate of 47,646 shares of common stock at the stated conversion price of $3.395 per share.

 

During the six months ended June 30, 2015, the Company issued 8,188 shares of its common stock as consideration for investor relations services valued at $60,000.

 

During the six months ended June 30, 2015, the Company issued 11,273 shares of its common stock as consideration for legal services valued at $68,401.

 

Options

 

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices for 2015. Prior to 2015, the Company derived the volatility figure from an index of historical stock prices for comparable entities. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla" options, as defined in the accounting standards codification.

 

The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. 

 

In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.

 

The Company estimated forfeitures related to option grants at a weighted average annual rate of  0% per year, as the Company does not yet have adequate historical data, for options granted during the three and six months ended June 30, 2015 and 2014.

 

The following assumptions were used in determining the fair value of employee and vesting non-employee options during the three and six months ended June 30, 2015 and 2014:

 

 

June 30,

2015

 

June 30,

2014

Risk-free interest rate

1.68% - 2.07%

 

2.13% - 2.73%

Dividend yield

0%

 

0%

Stock price volatility

123.45%-145.24%

 

77.6% - 79.2%

Expected life

5 - 10 years

 

8-10  years

Weighted average grant date fair value

$5.98

 

$5.50

 

In January 2015, the Company granted options to purchase 7,500 shares of common stock to a new board member. These options vest over a 3 year period, have a term of 10 years, and contain an exercise price of $5.00 per share. The options had an aggregate grant date fair value of $34,945.

 

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BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

 

In April 2015, the Company granted options to purchase 80,000 shares of common stock to board members.  These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share.  The options had an aggregate grant date fair value of $493,774.

 

In May 2015, the Company granted an option to purchase 10,000 shares of common stock to a consultant.  These options vest beginning June 30, 2015 through March 31, 2017 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share.  The options had an aggregate grant date fair value of $52,049.

 

In May 2015, the Company granted an option to purchase 1,000 shares of common stock to an employee.  These options vest over three years on the grant date anniversary, have a term of 10 years and contain an exercise price of $6.50 per share.  The options had an aggregate grant date fair value of $5,570.

 

In May 2015, the Company granted an option to purchase 20,000 shares of common stock to a new board member.  These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share.  The options had an aggregate grant date fair value of $128,115.

 

In June 2015, the Company granted options to purchase 8,000 shares of common stock to four consultants.  These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share.  The options had an aggregate grant date fair value of $41,688.

 

The following table summarizes the stock option activity for the six months ended June 30, 2015:

 

 

 

 

 

 

 

Weighted
Average

Remaining

Contractual Term

 

 

 

 

 

 

Weighted-Average
Exercise Price

 

 

Aggregate

Intrinsic Value

 

Shares

 

 

 

Outstanding at January 1, 2015

441,064

 

$

8.44

 

4.2

 

$

858,766

Granted

126,500

 

$

6.88

 

10.0

 

 

 

Canceled/expired

(1,625)

 

5.73

 

 

 

 

 

Outstanding at June 30, 2015

565,939

 

$

8.09

 

4.9

 

$

118,486

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

344,683

 

$

8.05

 

3.7

 

$

110,570

 

The following table presents information related to stock options at June 30, 2015:

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

Weighted

Average

Remaining Life

In Years

 

 

 

 

 

 

 

 

Exercisable

Number of

Options

 

Exercise

Price

 

Number of

Options

 

 

 

 

 

 

$

0.00-5.00

 

165,081

 

4.0

 

149,247

 

5.01-12.50

 

375,449

 

5.3

 

174,494

 

12.51-25.00

 

15,008

 

4.7

 

15,008

 

25.01-45.00

 

10,401

 

4.7

 

5,934

 

 

 

565,939

 

4.9

 

344,683

 

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BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

 

As of June 30, 2015, stock-based compensation of $747,826 remains unamortized and is expected to be amortized over the weighted average remaining period of 3 years.

 

The stock-based compensation expense related to option grants was $112,744 and $168,897 during the three and six months ended June 30, 2015, respectively, and $157,828 and $233,545 during the three and six months ended June 30, 2014, respectively.

 

Restricted Stock

 

As of June 30, 2015, the Company did not have any unissued restricted shares.  Stock based compensation expense related to restricted stock grants was $-0- for the three and six months ended June 30, 2015, and $438,010 and $876,020 for the three and six months ended June 30, 2014, respectively. 

Warrants

    

The following table summarizes the warrant activity for the six months ended June 30, 2015:

 

 

 

 

 

 

 

Weighted-Average

Remaining

Contractual Term

 

Aggregate

Intrinsic

Value

 

 

 

Weighted-Average

Exercise Price

 

 

 

Shares

 

 

 

Outstanding at January 1, 2015

220,913

 

$

5.00

 

1.7

 

$

1,325,478

Grants

-

 

 

 

 

 

 

$

-

Exercised

-

 

 

 

 

 

 

 

 

Forfeitures or expirations

-

 

 

 

 

 

 

 

 

Outstanding at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457

                   

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

The Company appointed a new Chief Financial Officer during August 2014.  The Company utilizes Assure Professional, LLC (“Assure”) to provide certain outsourced accounting services.  The Company’s current Chief Financial Officer is a partial owner of Assure.  The Company incurred expense of $6,750 and $13,500 in exchange for these services during the three and six months ended June 30, 2015, respectively.  Included in accounts payable at June 30, 2015 was $4,500 due to Assure.

 

Mr. D. Jonathan Merriman was appointed to the Company’s Board of Directors during December 2014.  Mr. Merriman is the CEO of Merriman Capital, Inc. (“Merriman”).  Merriman provides capital market advisory services to the Company for which we incurred expense of $30,000 and $60,000 during the three and six months ended June 30, 2015, respectively. The Company primarily issues common stock in exchange for monthly services and no amount was due to Merriman at June 30, 2015. 

 

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BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

 

NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

Litigation

 

On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486. The Company filed additional suits against IZEA, Inc. on October 17, 2012, Yelp, Inc. on October 17, 2012, and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of Illinois, which the Court denied on September 27, 2013.  On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the district court's denial of its motion to transfer. On April 23, 2014, the petition was denied by the Federal Circuit.

Between July 19, 2013 and October 3, 2013, Groupon filed petitions with the Patent Trial & Appeals Board (“PTAB”) requesting institution of Covered Business Method Review (“CBMR”) of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the CBMR at the PTAB occurred during September 2014.

On December 17, 2014, the PTAB issued final decisions in CBMR proceedings CBM2013-00035, CBM2013-00033, CBM2013-00034, CBM2013-00046 and CBM2013-00044.  In each case, certain claims of each patent were held to be invalid for various reasons.  With respect to the ‘516, ‘679, ‘055 and ‘646 patents, many of the claims survived and the patents remain enforceable.  All of the claims of the ‘670 patent were held invalid.  The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.  A decision on those appeals is expected sometime in early 2016.

 

On April 2, 2015, the District Court lifted the stay and required the parties to file a joint docket control order.  On April 6, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015.  On April 15, 2015, the parties filed their joint docket control order.  The Court entered its docket control order on April 23, 2015.  Due to an apparent scheduling conflict, the Court rescheduled the Markman Hearing to July 8, 2015.

 

On April 22, 2015, the Company filed its third amended complaint against all defendants.  The defendants timely answered on May 11, 2015.  Each of the defendants answers included a counterclaim for invalidity of the patents.  The Company responded to these invalidity contentions on June 1, 2015.

 

On May 13, 2015, the Company filed a motion for entry of an order focusing patent claims and prior art.  That motion requested that the Court narrow the number of claims at issue and the number of prior art references that defendants could use in an attempt to invalidate the Company’s patents.  On May 27, 2015, the Court held a hearing on the motion and ordered defendants to reduce the number of references in support of any invalidity contention against the patents. 

 

On July 13, 2015 the Court entered an order severing the non-active claims out of the case and consolidating claims regarding those patents into a separate set of cases.  These new cases address the claims which were held invalid by the PTAB and which are now on appeal to the Federal Circuit Court of Appeals.

 

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BLUE CALYPSO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015
(unaudited)

 

 

On June 25, 2015, the Company attended mediation with Yelp in an effort to settle the case.  That mediation was recessed to explore settlement options.

 

On July 8, 2015 the Company attended the Markman Hearing in order to construe the claims of the patents.  On July 14, 2015, the Court entered its Memorandum Opinion and Order regarding claim construction.  In that Order, the Court analyzed eleven claim terms.  The Court agreed with Blue Calypso’s proffered construction as to seven terms, chose its own construction as to three terms and agreed with defendants proffered construction as to only one term.  The Court also expressly rejected defendants argument that the term “testimonial tag” was indefinite.  

 

On July 14, 2015, the Company attended court-ordered mediation with Groupon.  The result of that mediation was an impasse.

 

On July 16, 2015, the Company attended court-ordered mediation with IZEA. The parties reached a settlement in principal and are currently negotiating the final terms of the agreement. The potential terms of that settlement are confidential.

 

On July 20, 2015, the Company attended court-ordered mediation with Foursquare. The result of that mediation was an impasse.

 

As part of the Company's settlement with Living Social, the Company's attorney is entitled to additional compensation for the value of certain non-monetary arrangements. As of June 30, 2015, the payment of such compensation is not probable or measurable.

 

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable.

 

NOTE 7 – SUBSEQUENT EVENTS

 

On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (the “July 2015 Note”) for a purchase price of $500,000.  The July 2015 Note is due one year from the issuance date.

 

On January 17, 2016, the Company shall be obligated to pay the lender guaranteed interest equal to 10% of the then outstanding principal. At any time following this date, the July 2015 Note, including all accrued but unpaid interest, default interest and any applicable late charges thereon, shall be convertible at the option of the lender, at a conversion price equal to $7.5321 per share. The July 2015 Note may be prepaid at any time by the Company (i) in shares of common stock of the Company at a 20% discount to the average of the three daily volume weighted average prices of the Company's common stock for the prior three trading days (the “Prepayment Price”), provided the Company is then and for a period prior thereto in compliance with certain equity conditions and/or (ii) in cash at a 120% premium to the amount then outstanding.

 

If the $550,000 principal amount of the July 2015 Note and all accrued but unpaid interest thereof is not paid in full on or before January 16, 2016, the July 2015 Note shall amortize in four equal payments payable on January 20, 2016, February 20, 2016, March 20, 2016 and April 20, 2016. These payments shall be paid (i) in cash at a 120% premium, and/or (ii) in shares of the Company's common stock at the Prepayment Price, provided Blue Calypso is in compliance with certain equity conditions as defined in the July 2015 Note.

 

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ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This report contains  "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  All statements other than statements of historical facts included or incorporated by reference in this quarterly report on Form 10-Q, including without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans and objective of management for future operations, are forward-looking statements.  In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions.

 

We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to:  

   

·     

our ability to raise additional capital;

·     

minimal operating history or revenue; 

·     

our ability to attract and retain qualified personnel; 

·     

market acceptance of our platform;

·     

our limited experience in a relatively new industry;

·     

  regulatory and competitive developments;

·     

intense competition with larger companies;

·     

general economic conditions

·    

failure to adequately protect our intellectual property;

·    

technological obsolescence of our products and services;  

·    

technical problems with our products and services;

·    

loss or retirement of key executives, and

·    

other factors set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission.

 

All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing.  Except as required by law, we assume no duty to update or revise our forward-looking statements.

 

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Business Overview 

 

Blue Calypso develops and delivers mobile shopper marketing, influence and analytics solutions for the business-to-consumer (B2C) marketplace leveraging mobile, social media, gamification and our intellectual property portfolio. We have developed a patented technology platform that enables brands and retailers to engage with shoppers when they are on the path-to-purchase products and services.  Our technology also allows brands to leverage customer relationships to increase brand loyalty and drive revenue through sharing and influencer marketing. We generate revenue from the cloud-based consumption of our technology platform, consulting/services fees, and licensing and/or enforcement of our patented technologies.  Our intellectual property portfolio consists of four US patents (one is in appeal with the Federal Circuit as a result of the PTAB ruling in December 2014) and nine pending patent applications that generally cover methods and systems for communicating advertisements and electronic offers between mobile and desktop communication devices.

 

All of the patents and patent applications that cover the core of our business, i.e., a “System and method for peer-to-peer advertising between mobile communication devices”, have been developed internally by our Founder and Chief Executive Officer, Andrew Levi, and our Director of Innovation, Bradley Bauer, and assigned to our wholly owned subsidiary, Blue Calypso, LLC. In September 2013, we acquired proprietary mobile gamification technology and subsequently applied for two additional patents based upon the enhancement and integration of this technology into our platform.

 

Our proprietary technology platform enables retailers to harness the power and adoption that today’s mobile devices bring to the consumer shopping experience.  We connect brands with store visitors when they are on the path-to-purchase and enable those customers to engage with, and redeem brand content as well as syndicate their brand affinity across the most popular social media channels. Our platform tracks performance, monitors engagement, manages attribution and delivers robust, real-time analytics that provide acute insight regarding the adoption, performance and return on investment of our client’s promotions and location-based content. Our technology is designed to help clients target their marketing messages, attract new customers, increase awareness and drive product sales. For example, campaigns facilitated through our platform can encourage consumers to learn more about products, watch promotional videos about particular products, see product reviews and comparative pricing or click to buy products.  All delivered through a highly engaging mobile “kiosk” or “digital concierge” type experience.

 

Over the last five years, the world has seen mobile, social media, and digital advertising evolve dramatically and actually converge. Through this technological evolution, a sociological shift has occurred in how influential digital media can be when deployed strategically with hyper-targeted content.  

 

Today, retailers are aggressively exploring mobile shopper engagement as the next frontier of the shopping experience.  According to the Consumer Electronics Association, more than half of all consumers use their mobile devices at some point during a shopping experience, however retailers have yet to find a comfortable way of co-existing in this ecosystem of traditional consumer engagement.

 

Through mobile and social media, consumers and brands have their own unique and significant digital audience. According to Facebook, the average user has 130 friends; Twitter states the average user has 300 followers; and on average an individual has 25 unique frequent contacts they communicate with weekly via text messages or mobile calls. Active participation in LinkedIn, Google+, Tumblr and/or a personal blog can further extend one’s direct social reach significantly. With our platform, brand content is not bound by any single app, social media community, website, carrier or device. As a result, brand influencers have the capability to immediately reach hundreds or even thousands of people through their direct personal and digital social relationships.

 

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As a by-product of campaign delivery and recipient interaction, we deliver real-time analytics and business intelligence capabilities, which provide brands the ability to see how campaigns are deployed, where they are getting the most traction, and which are seeing the most activity. The platform also allows brands to assess the conversational response and sentiment to their messages which enables them to adjust their campaigns based on performance.

 

Recent Developments


Recent Accounting Pronouncements

 

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled “Simplifying the Presentation of Debt Issuance Costs.” The new guidance specifies that debt issuance costs under the new standard are to be netted against the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement.  The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for public business entities and interim periods within those fiscal years.  Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard to have a material impact on the Company’s condensed consolidated financial statements.

 

There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.

 

Litigation

 

On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486. The Company filed additional suits against IZEA, Inc. on October 17, 2012, Yelp, Inc. on October 17, 2012, and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of Illinois, which the Court denied on September 27, 2013.  On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the district court's denial of its motion to transfer. On April 23, 2014, the petition was denied by the Federal Circuit.

 

Between July 19, 2013 and October 3, 2013, Groupon filed petitions with the Patent Trial & Appeals Board (“PTAB”) requesting institution of Covered Business Method Review (“CBMR”) of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the CBMR at the PTAB occurred during September 2014.

 

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On December 17, 2014, the PTAB issued final decisions in CBMR proceedings CBM2013-00035, CBM2013-00033, CBM2013-00034, CBM2013-00046 and CBM2013-00044.  In each case, certain claims of each patent were held to be invalid for various reasons.

 

With respect to the ‘516, ‘679, ‘055 and ‘646 patents, many of the claims survived and the patents remain enforceable.  All of the claims of the ‘670 patent were held invalid.  The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.  A decision on those appeals is expected sometime in early 2016.

 

On April 2, 2015, the District Court lifted the stay and required the parties to file a joint docket control order.  On April 6, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015.  On April 15, 2015, the parties filed their joint docket control order.  The Court entered its docket control order on April 23, 2015.  Due to an apparent scheduling conflict, the Court rescheduled the Markman Hearing to July 8, 2015.

  

On April 22, 2015, the Company filed its third amended complaint against all defendants.  The defendants timely answered on May 11, 2015.  Each of the defendants answers included a counterclaim for invalidity of the patents.  The Company responded to these invalidity contentions on June 1, 2015.

 

On May 13, 2015, the Company filed a motion for entry of an order focusing patent claims and prior art.  That motion requested that the Court narrow the number of claims at issue and the number of prior art references that Defendants could use in an attempt to invalidate the Company’s patents.  On May 27, 2015 the Court held a hearing on the motion and ordered defendants to reduce the number of references in support of any invalidity contention against the patents. 

                           

On July 13, 2015 the Court entered an order severing the non-active claims out of the case and consolidating claims regarding those patents into a separate set of cases.  These new cases address the claims which were held invalid by the PTAB and which are now on appeal to the Federal Circuit Court of Appeals. 

 

On June 25, 2015, the Company attending mediation with Yelp in an effort to settle the case.  That mediation was recessed to explore settlement options.

 

On July 8, 2015 the Company attended the Markman Hearing in order to construe the claims of the patents. On July 14, 2015, the Court entered its Memorandum Opinion and Order regarding claim construction.  In that Order, the Court analyzed eleven claim terms.  The Court agreed with Blue Calypso’s proffered construction as to seven terms, chose its own construction as to three terms and agreed with defendants’ proffered construction as to only one term.  The Court also expressly rejected defendants’ argument that the term “testimonial tag” was indefinite.  

 

On July 14, 2015, the Company attended court-ordered mediation with Groupon. The result of that mediation was an impasse.

 

On July 16, 2015, the Company attended court-ordered mediation with IZEA. The parties reached a settlement in principal and are currently negotiating the final terms of the agreement. The potential terms of that settlement are confidential.

 

On July 20, 2015, the Company attended court-ordered mediation with Foursquare. The result of that mediation was an impasse.

 

The court dockets for each case, including the parties’ briefs are publicly available on the Public Access to Court Electronic Records website, or PACER, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts.

 

Other than as noted above, the Company is not a party to any pending legal proceeding nor is its property the subject of any pending legal proceeding that is not in the ordinary course of business or otherwise material to the financial condition of its business. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.

 

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Critical Accounting Policies

  

Use of Estimates    

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

 

Revenue Recognition    

 

Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product or service has occurred, all obligations have been performed pursuant to the terms of the agreement, the sales price is fixed or determinable, and collectability is reasonably assured. Revenue includes fees received from customers for advertising and marketing services. In each case Revenue is recognized when services are performed or licenses are granted to customers.

 

Revenue from the licensing of the Company’s intellectual property and settlements reached from legal enforcement of the Company’s patent rights is recognized when the arrangement with the licensee has been signed and the license has been delivered and made effective, provided license fees are fixed or determinable and collectability is reasonably assured. The fair value of licenses achieved by ordinary business negotiations is recognized as revenue.

 

The amount of consideration received upon any settlement or judgment is allocated to each element of the settlement based on the fair value of each element. Elements related to licensing agreements, royalty revenues, net of contingent legal fees, are recognized as revenue in the consolidated statement of operations. Elements that are not related to license agreements and royalty revenue in nature will be reflected as a separate line item within the other income section of the consolidated statements of operations. Elements provided in either settlement agreements or judgments include: the value of a license, legal release, and interest. When settlements or judgments are achieved at discounts to the fair value of a license, the Company allocates the full settlement or judgment, excluding specifically named elements as mentioned above, to the value of the license agreement or royalty revenue under the residual method. Legal release as part of a settlement agreement is recognized as a separate line item in the consolidated statements of operations when value can be allocated to the legal release.

 

When the Company reaches a settlement with a defendant, no value is allocated to the legal release since the existence of a settlement removes legal standing to bring a claim of infringement and without a legal claim, the legal release has no economic value. The element that is applicable to interest income will be recorded as a separate line item in other income. The Company does not assume future performance obligations in its license arrangements.

 

The Company also has revenue from information technology consulting services. Revenue is recognized in the periods that satisfactory performance of services is delivered to customers. Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the service has occurred, all obligations have been performed pursuant to the terms of the agreement, the sales price is fixed or determinable, and collectability is reasonably assured.

 

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Cost of Revenue    

 

Cost of revenue includes technical service costs directly associated with initiating and supporting a customer social media program, technical service costs directly associated with providing IT consulting and legal fees directly related to the settlement of intellectual property claims that result in licensing and royalty revenue.

 

Intangible Assets

 

The Company capitalizes certain software development costs as well as purchased software upon achieving technological feasibility of the related products. Software development costs incurred and software purchased prior to achieving technological feasibility are charged to engineering and product development expense as incurred. Commencing upon initial product release, capitalized costs are amortized to cost of software licenses using the straight-line method over the estimated life of the product (which approximates the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product), which is generally up to five years.

 

Impairment of Long-Lived Assets     

 

The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the property exceeds its fair market value. No impairment was deemed to exist as of June 30, 2015 and December 31, 2014. The Company re-evaluates the carrying amounts of its amortizable intangibles at least quarterly to identify any triggering events.  As described above, if triggering events require us to undertake an impairment review, it is not possible at this time to determine whether it would be necessary to record a charge or if such charge would be material.

 

Stock-Based Compensation    

 

The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period.  Stock-based compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as if such amounts were paid in cash.

 

Results of Operations

 

Comparison of Three Months Ended June 30, 2015 and 2014

 

Results of Operations 

  

Net Loss.  For the three months ended June 30, 2015, we had a net loss of $695,846, as compared to a net loss of $1,453,252 for the three months ended June 30, 2014. The decrease in net loss resulted primarily from a reduction in our sales and marketing expense of $39,268, general and administrative costs of $612,796 and interest expense of $95,369.

  

Revenue.   Revenue for the three months ended June 30, 2015 was $109,489, as compared to $122,032 in revenues for the same period in 2014.  The majority of the revenue in the current and prior year was derived from our Blue Calypso Labs services.  The decrease in revenue is primarily due to timing in development projects. 

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Cost of Revenue.  Our cost of revenue was $44,665 for the three months ended June 30, 2015, as compared to $71,046 for the same period in 2014. Cost of revenue for the three months ended June 30, 2015 was primarily comprised of costs related to internal IT professional staff members assigned to the Blue Calypso Labs group.

 

Sales and Marketing.  For the three months ended June 30, 2015, sales and marketing expenses decreased by $39,268 to $105,681 as compared to the same period in 2014. Sales and marketing expenses decreased as the Company reduced sales personnel.

 

General and Administrative.  For the three months ended June 30, 2015, general and administrative expenses were $566,078 as compared to $1,178,874 for the three months ended June 30, 2014.  This was primarily due to a reduction of $483,095 in stock based compensation primarily associated with certain restricted stock incentives during the three months ended June 30, 2014.  As a result of the former Chief Executive Officer’s resignation, the Company incurred $438,010 in expense during 2014 with no corresponding 2015 expense.  Additional decrease relates to reductions in headcount and executive compensation. 

 

Depreciation and Amortization.  Depreciation and amortization expenses relate primarily to the amortization of capitalized software development.  Depreciation and amortization expenses were $88,154 for the three months ended June 30, 2015 as compared to $84,776 for the three months ended June 30, 2014, representing an increase of $3,378 which was primarily due to an increase in additional capitalized software during the period.  For the three months ended June 30, 2015, we incurred $73,384 of capitalized software development costs associated with improvements to our commercial platform. This compares to $54,449 of capitalized software development costs for the quarter ended June 30, 2014.  The Company continues to invest in the ongoing improvements to its core platform.

 

Change in fair value of derivative liabilities.  We issued warrants and convertible debt that contain certain reset provisions in connection with financing and debt settlements.  As such, we are required to record these reset provisions as a liability and mark them to market each reporting period.  In 2015, these provisions had expired versus a gain for the three months ended June 30, 2014 of $487.  As of June 30, 2015 there no longer is a liability associated with derivative liabilities as the underlying securities have been converted to common stock and are no longer outstanding.

 

Interest Expense.  Interest expense was $757 for the three months ended June 30, 2015 as compared to $96,126 for the three months ended June 30, 2014. Interest expense for the current period represents credit card and vendor financing.  In comparison, interest for 2014 related to $69,602 in amortization of beneficial conversion features on notes payable, $14,024 related to the inducement of warrants with the remaining amount primarily representing cash interest on notes payable.   

 

Comparison of Six Months Ended June 30, 2015 and 2014

 

Results of Operations 

  

Net Loss.  For the six months ended June 30, 2015, we had a net loss of $1,304,691, as compared to a net loss of $3,198,613 for the six months ended June 30, 2014. The decrease in net loss resulted primarily from a reduction in our sales and marketing expense of $154,211, general and administrative costs of $1,149,625 and interest expense of $612,717.

  

Revenue.   Revenue for the six months ended June 30, 2015 was $225,214, as compared to $286,247 in revenues for the same period in 2014.  The majority of the revenue in the current and prior year was derived from our Blue Calypso Labs services.  The decrease in revenue is primarily due to timing in development projects. 

Cost of Revenue.  Our cost of revenue was $99,777 for the six months ended June 30, 2015, as compared to $144,793 for the same period in 2014. Cost of revenue for the six months ended June 30, 2015 was primarily comprised of costs related to internal IT professional staff members assigned to the Blue Calypso Labs group. 

 

Sales and Marketing.  For the six months ended June 30, 2015, sales and marketing expenses decreased by $154,211 to $154,255 as compared to the same period in 2014. Sales and marketing expenses decreased as the Company reduced sales personnel.

 

               General and Administrative.  For the six months ended June 30, 2015, general and administrative expenses were $1,101,625 as compared to $2,251,250 for the six months ended June 30, 2014.  This was primarily due to a reduction of $940,668 in stock based compensation primarily associated with certain restricted stock incentives during the six months ended June 30, 2014.  As a result of the former Chief Executive Officer’s resignation, the Company incurred the $876,020 in expense during 2014 with no corresponding 2015 expense. 

 

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Depreciation and Amortization.  Depreciation and amortization expenses relate primarily to the amortization of capitalized software development.  Depreciation and amortization expenses were $172,775 for the six months ended June 30, 2015 as compared to $168,191 for the six months ended June 30, 2014, representing an increase of $4,584 which was primarily due to an increase in additional capitalized software during the period.  For the six months ended June 30, 2015, we incurred $150,615 of capitalized software development costs associated with improvements to our commercial platform. This compares to $63,434 of capitalized software development costs for the six months ended June 30, 2014.  The Company continues to invest in the ongoing improvements to its core social media platform.

 

Change in fair value of derivative liabilities.  We issued warrants and convertible debt that contain certain reset provisions in connection with financing and debt settlements.  As such, we are required to record these reset provisions as a liability and mark them to market each reporting period.  In 2015, these provisions had expired versus a gain for the six months ended June 30, 2014 of $2,030.  As of June 30, 2015 there no longer is a liability associated with derivative liabilities as the underlying securities have been converted to common stock and are no longer outstanding.

 

Interest Expense.  Interest expense was $1,473 for the six months ended June 30, 2015 as compared to $614,190 for the six months ended June 30, 2014. Interest expense for the current period represents credit card and vendor financing.  In comparison, interest for 2014 related to $27,500 of interest expense on an outstanding $600,000 notes payable, amortization of beneficial conversion features on notes payable of $125,550 and interest expense related to the modification of warrants to induce conversion of $460,949.  

 

Cash Flows

 

Net cash used in operating activities during the six months ended June 30, 2015 was $791,443 as compared to $1,249,977 for the six months ended June 30, 2014. Cash used in operations for the six months ended June 30, 2015 was comprised of a net loss of $1,304,691 offset primarily by certain non-cash items:  (i) bad debt expense of $19,141; (ii) stock based compensation expenses of $297,298; (iii) depreciation and amortization of $172,775 and (iv) net change in operating assets and liabilities of $24,034.

 

Net cash used in investing activities during the six months ended June 30, 2015 was $157,121, as compared to $63,434 for the six months ended June 30, 2014. This increase was primarily attributable to additional expenditures on the development of our software. 

 

During the six months ended June 30, 2015, we used $79,912 for financing activities as compared to $1,046,286 for the same period in 2014.  For the six months ended June 30, 2015, we utilized $79,912 related to the anticipated follow-on offering. During the six months ended June 30, 2014, the Company received $1,024,558 in proceeds from the exercise of warrants and $21,728 from the exercise of options. 

 

Off Balance Sheet Arrangements

 

None  

 

Liquidity and Capital Resources

 

As of June 30, 2015, the Company had cash of $74,725 and a working capital deficit of $12,924.  During the six months ended June 30, 2015, the Company used net cash in operating activities of $791,443.  The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. 

 

 On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 for a purchase price of $500,000.  It is anticipated that the proceeds from this note will provide the Company with cash sufficient to fund operations through September 2015. 

 

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The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, preferred stock, convertible debentures and the exercise of warrants. On April 6, 2015, the Company entered into a letter of engagement with a third party firm pursuant to which the firm will act as the sole book runner and lead managing underwriter in connection with a potential registered follow–on offering of common stock or a combination of common stock and warrants.  On May 26, 2015 the Company filed a Form S-1 associated with this potential offering.  In conjunction with the potential offering, we have applied for our shares to be listed on a national securities exchange.

 

There can be no assurance that the follow-on offering will be completed, that our application to the national securities exchange will be accepted or that funds associated with this potential offering will be available on terms acceptable to the Company, or that the funds from such offering will be sufficient to enable the Company to fully execute its business plan or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES.

  

(a) Evaluation of disclosure controls and procedures.

 

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

 

Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2015, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

(b) Changes in internal control over financial reporting.

 

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

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PART II  OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486.

 

The Company filed additional suits against IZEA, Inc. on October 17, 2012, Yelp, Inc. on October 17, 2012, and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of California, which the Court denied on September 27, 2013.  On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the district court's denial of its motion to transfer, which remains pending as of the date of this report.   On April 23, 2014, the petition was denied by the Federal Circuit.

 

Between July 19, 2013 and October 3, 2013, Groupon filed petitions with the Patent Trial & Appeals Board (“PTAB”) requesting institution of Covered Business Method Review (“CBMR”) of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the CBMR at the PTAB occurred during September 2014.

On December 17, 2014, the PTAB issued final decisions in CBMR proceedings CBM2013-00035, CBM2013-00033, CBM2013-00034, CBM2013-00046 and CBM2013-00044.  In each case, certain claims of each patent were held to be invalid for various reasons.  With respect to the ‘516, ‘679, ‘055 and ‘646 patents, many of the claims survived and the patents remain enforceable.  All of the claims of the ‘670 patent were held invalid.  The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.  A decision on those appeals is expected sometime in early 2016.

 

On April 2, 2015, the District Court lifted the stay and required the parties to file a joint docket control order.  On April 5, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015.  On April 15, 2015, the parties filed their joint docket control order which has yet to be entered by the Court.  Due to an apparent scheduling conflict, the Court rescheduled the Markman Hearing to July 8, 2015.

 

On April 22, 2015, the Company filed its third amended complaint against all defendants.  The defendants timely answered on May 11, 2015.  Each of the defendants answers included a counterclaim for invalidity of the patents. The Company responded to these invalidity contentions on June 1, 2015.

 

On May 13, 2015, the Company filed a motion for entry of an order focusing patent claims and prior art.  That motion requested that the Court narrow the number of claims at issue and the number of prior art references that defendants could use in an attempt to invalidate the Company’s patents.  On May 27, 2015 the Court held a hearing on the motion and ordered defendants to reduce the number of references in support of any invalidity contention against the patents. 

 

On July 13, 2015 the Court entered an order severing the non-active claims out of the case and consolidating claims regarding those patents into a separate set of cases.  These new cases address the claims which were held invalid by the PTAB and which are now on appeal to the Federal Circuit Court of Appeals. 

 

On June 25, 2015, the Company attended mediation with Yelp in an effort to settle the case.  That mediation was recessed to explore settlement options.

 

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On July 8, 2015 the Company attended the Markman Hearing in order to construe the claims of the patents. On July 14, 2015, the Court entered its Memorandum Opinion and Order regarding claim construction.  In that Order, the Court analyzed eleven  claim terms.  The Court agreed with Blue Calypso’s proffered construction as to seven terms, chose its own construction as to three terms and agreed with defendants’ proffered construction as to only one term.  The Court also expressly rejected Defendants’ argument that the term “testimonial tag” was indefinite.  

 

On July 14, 2015, the Company attended court-ordered mediation with Groupon. The result of that mediation was an impasse.

 

On July 16, 2015, the Company attended court-ordered mediation with IZEA. The parties reached a settlement in principal and are currently negotiating the final terms of the agreement. The potential terms of that settlement are confidential.

 

On July 20, 2015, the Company attended court-ordered mediation with Foursquare. The result of that mediation was an impasse.

 

The court dockets for each case, including the parties’ briefs are publicly available on the Public Access to Court Electronic Records website, or PACER, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts.

Other than as noted above, the Company is not a party to any pending legal proceeding nor is its property the subject of any pending legal proceeding that is not in the ordinary course of business or otherwise material to the financial condition of its business. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.

ITEM 1A.RISK FACTORS

 

Not required 

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.  

 

None

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

                None

 

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ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

 

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

 

Exhibit

Number

 

 

 

Description

2.1

 

Agreement and Plan of Merger and Reorganization, dated as of September 1, 2011, by and among Blue Calypso, Inc., Blue Calypso Acquisition Corp., and Blue Calypso Holdings, Inc. (incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

2.2

 

Agreement and Plan of Merger, dated September 9, 2011, by and between Blue Calypso, Inc., a Nevada corporation, and Blue Calypso, Inc., a Delaware corporation (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 15, 2011).

 

 

 

3.1

 

Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on October 19, 2011).

 

 

 

3.2

 

Certificate of Designation of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.2 to Current Report on Form 8-K filed with the Securities and Exchange Commission on October 19, 2011).

 

 

 

3.3

 

Bylaws of Blue Calypso, Inc., a Delaware corporation, adopted September 9, 2011 (incorporated by reference to Exhibit 3.3 to Current Report on Form 8-K filed with the Securities and Exchange Commission on October 19, 2011).

 

 

 

 3.4

Certificate of Amendment (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on July 2, 2015).

 

  

   

10.1

 

2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.2

 

Form of Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.3

 

Form of Non-Qualified Stock Option Agreement (incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.4

 

Form Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.5

 

Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of Obligations, dated as of September 1, 2011 (incorporated by reference to Exhibit 10.5 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.6

 

Stock Purchase Agreement, by and between Blue Calypso, Inc. and Deborah Flores, dated as of September 1, 2011 (incorporated by reference to Exhibit 10.6 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.7

 

Securities Purchase Agreement, dated as of September 1, 2011, by and among Blue Calypso, Inc. and certain purchasers set forth therein (incorporated by reference to Exhibit 10.7 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

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10.8

 

Registration Rights Agreement, dated as of September 1, 2011, by and among Blue Calypso, Inc. and certain purchasers set forth therein (incorporated by reference to Exhibit 10.9 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.9

 

Form of Warrant (incorporated by reference to Exhibit 10.10 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2011).

 

 

 

10.10

 

Letter Agreement, dated January 16, 2012, by and between Blue Calypso, Inc. and Aztec Systems, Inc. (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 20, 2012).

 

 

 

10.11

 

Promissory Note, dated January 17, 2012, issued by Blue Calypso, Inc. to Aztec Systems, Inc. (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 20, 2012).

 

 

 

10.12

 

Securities Purchase Agreement, dated April 19, 2012, by and between Blue Calypso, Inc. and the Buyer thereto (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.13

 

Senior Secured Convertible Note issued April 19, 2012 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.14

 

Common Stock Purchase Warrant issued April 19, 2012 (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.15

 

Security Agreement, dated April 19, 2012, by and between the Company, Blue Calypso, LLC and the Buyer (incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.16

 

Intellectual Property Security Agreement, dated April 19, 2012, by and between the Company, Blue Calypso, LLC, and the Buyer (incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.17

 

Subsidiary Guarantee, dated April 19, 2012, by Blue Calypso, LLC, in favor of the Buyer (incorporated by reference to Exhibit 10.6 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.18

 

Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.7 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.19

 

Amendment No. 1 to Common Stock Purchase Warrant (incorporated by reference to Exhibit 10.8 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.20

 

Stockholder Agreement, dated April 19, 2012, by and between Andrew Levi and the Company (incorporated by reference to Exhibit 10.9 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2012).

 

 

 

10.21

 

Letter Agreement dated June 1, 2012, between Blue Calypso, Inc. and Bill Ogle effective as of June 1, 2012 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on June 4, 2012).

 

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10.22

 

Form of Subscription Agreement - June 2012 Private Placement (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on July 30, 2012).

 

 

 

10.23

 

Form of Warrant - June 2012 Private Placement (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on July 30, 2012).

 

 

 

10.24

 

Exchange Agreement dated November 9, 2012 between Blue Calypso, Inc. and Aztec Systems, Inc. (incorporated by reference to Exhibit 10.24 to our Quarterly Report on Form 10-Q for the period ended September 30, 2012 filed with the Securities and Exchange Commission on November 19, 2012).

 

 

 

10.25

 

8% Convertible Note dated November 9, 2012 (incorporated by reference to Exhibit 10.24 to our Quarterly Report on Form 10-Q for the period ended September 30, 2012 filed with the Securities and Exchange Commission on November 19, 2012).

 

 

 

10.25

 

Amendment No. 1 to 8% Senior Secured Convertible Debentures between Blue Calypso, Inc. and the Holder dated April 29, 2013 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 3, 2013).

 

 

 

10.26

 

Amendment No. 2 to Common Stock Purchase Warrants between the Company and the Holder dated April 29, 2013 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 3, 2013).

 

 

 

10.27

 

Amendment No. 2 to Common Stock Purchase Warrants between the Company and the Holder dated April 29, 2013 (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 3, 2013).

 

 

 

10.28

 

Securities Purchase Agreement dated May 6, 2013 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2013).

 

 

 

10.29

 

10% Convertible Debenture dated May 6, 2013 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2013).

 

 

 

10.30

 

10% Convertible Debenture dated May 6, 2013 (Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2013).

 

 

 

10.31

 

Amendment No. 1 to 10% Convertible Debenture between Blue Calypso, Inc. and the Holder dated September 13, 2013 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 16, 2013). 

 

 

 

 

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10.32

 

Amendment No. 3 to Common Stock Purchase Warrants between the Company and the Holder dated September 13, 2013 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 16, 2013).  

 

 

 

10.33

 

Amendment No. 2 to Common Stock Purchase Warrant between the Company and the Holder dated September 13, 2013 (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 16, 2013). 

 

 

 

10.34

 

Securities Purchase Agreement dated October 7, 2013 (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on October 11, 2013).

 

 

  

10.35

 

Amendment No. 4 to Common Stock Purchase Warrants between the Company and the Holder dated January 9, 2014 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 10, 2014).  

 

 

 

10.36

 

Amendment No. 3 to Common Stock Purchase Warrant between the Company and the Holder dated January 9, 2014 (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 10, 2014).  

 

 

 

10.37

 

Settlement and Standstill Agreement dated September 26, 2014 by and between Blue Calypso, Inc., Ronald L. Chez, and Individual Retirement Accounts for the benefit of Ronald L. Chez (incorporated by reference to Exhibit 10.1 on Form 8-K filed with the Securities and Exchange Commission on October 2, 2014).

 

 

 

10.38

Form of note purchase agreement dated as of July 20, 2015 by and between the lender, Blue Calypso, Inc., Blue Calypso Holdings, Inc., Blue Calypso LLC and Blue Calypso Latin America, S.A. (incorporated by reference to Exhibit 10.1 to Current Report as form 8-k filed with the Securities and Exchange Commission on July 24, 2015).  

 

 

 

10.39

Form of  Senior Convertable Note issued on July 20, 2015 (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed with the Securities and Exchange Commission on July 24, 2015).

  

  

21.1

 

List of subsidiaries (incorporated by reference to Exhibit 21.1 to our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on April 16, 2012).

 

 

 

31.1

 

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

 

 

31.2

 

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

 

 

32.1

 

Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

32.2

 

Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

101.INS

 

XBRL Instance Document

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XBRL Taxonomy Extension Schema Document

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

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XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

 

29

 


 
 

Table of Contents

 

SIGNATURES 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

       

 

BLUE CALYPSO, INC.

 

 

Date:

 August 3, 2015

By:

/s/ Andrew Levi

 

Name:

Andrew Levi

 

Title:  

Chief Executive Officer

(Principal Executive Officer)

 

30


 

 

 

 

EX-31.1 2 exhibit31_1.htm EXHIBIT 31.1 exhibit31_1.htm - Generated by SEC Publisher for SEC Filing

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULES 13a-14a AND 15d-14a

OF THE SECURITIES AND EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

 I, Andrew Levi, certify that:

 

1.    I have reviewed this quarterly report on Form 10-Q of Blue Calypso, Inc.;

 

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.     The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)   Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

                                                                                                                                                                                    

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

 

Date:  August 3, 2015

 

By:

/s/ Andrew Levi

 

 

 

Andrew Levi

 

 

 

Chief Executive Officer

(Principal Executive Officer)

 

   


 

 

EX-31.2 3 exhibit31_2.htm EXHIBIT 31.2 exhibit31_2.htm - Generated by SEC Publisher for SEC Filing

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULES 13a-14a AND 15d-14a

OF THE SECURITIES AND EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Chris Fameree, certify that:

 

1.     I have reviewed this quarterly report on Form 10-Q of Blue Calypso, Inc.

 

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.     The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)   Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

 

 

Date:  August 3,  2015

 

By:

/s/Chris Fameree

 

 

 

Chris Fameree

 

 

 

Chief Financial Officer

(Principal Financial Officer)

 

 


 

EX-32.1 4 exhibit32_1.htm EXHIBIT 32.1 exhibit32_1.htm - Generated by SEC Publisher for SEC Filing

Exhibit 32.1

 

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

OF BLUE CALYPSO, INC.

PURSUANT TO 18 U.S.C. SECTION 1350

 

 

                In connection with the Quarterly Report on Form 10-Q of Blue Calypso, Inc. (the "Company") for the period ended June 30, 2015, as filed with the Securities and Exchange Commission (the "Report"), I, Andrew Levi, Chief Executive Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, that to my knowledge:

 

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

 

 

Date:  August 3, 2015

 

By:

/s/ Andrew Levi

 

 

 

Andrew Levi

 

 

 

Chief Executive Officer

(Principal Executive Officer)

 

 


EX-32.2 5 exhibit32_2.htm EXHIBIT 32.2 exhibit32_2.htm - Generated by SEC Publisher for SEC Filing

Exhibit 32.2

 

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

OF BLUE CALYPSO, INC.

PURSUANT TO 18 U.S.C. SECTION 1350

 

 

                In connection with the Quarterly Report on Form 10-Q of Blue Calypso, Inc. (the "Company") for the period ended June 30, 2015, as filed with the Securities and Exchange Commission (the "Report"), I, Chris Fameree, Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, that to my knowledge:

 

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

 

 

Date:  August 3, 2015

 

By:

/s/ Chris Fameree

 

 

 

Chris Fameree

 

 

 

Chief Financial Officer

(Principal Financial Officer)

 

 


 

 

 

 

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490 34026321 -32167234 -161827 -16 47646 5 11 19461 2 128399 128401 43620 4 168893 168897 -1304691 5013366 501 34323624 -33471925 19141 125550 460949 168897 1109565 128401 80000 -68637 65287 -2444 -35430 83539 -56197 -129486 44396 -1100 48069 -791443 -1249977 6506 150615 63434 -157121 -63434 21728 79912 1024558 -79912 1046286 -1028476 -267125 1294882 1027757 1473 16 BLUE CALYPSO, INC. 10-Q --12-31 5013366 false 0001399587 Yes No Smaller Reporting Company No 2015 Q2 2015-06-30 <div style="font-size: 12.0pt; font-family: Times New Roman;"> <a name="NOTES"></a> <font style="font-size: 10.0pt; font-weight: bold;">NOTE 1 &#x2013;&nbsp;NATURE OF OPERATIONS AND BASIS OF PRESENTATION</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Blue Calypso, Inc., a Delaware&nbsp;corporation (the "Company&#x201d;), is engaged in the development, sales, delivery, licensing and enforcement of technology and intellectual property focused on mobile shopper engagement and digital word-of-mouth marketing and advertising. In January 2014, the Company transitioned from a development stage enterprise to an operating company.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&#x201c;U.S. GAAP&#x201d;) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the operating results for the full year ending December 31, 2015, or any other period.&nbsp; These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of December 31, 2014 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 17, 2015.<br /></font> </div><br/> <div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-weight: bold;">NOTE 2 &#x2013;GOING CONCERN AND MANAGEMENT&#x2019;S LIQUIDITY PLANS</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As of June 30, 2015, the Company had cash of $74,725&nbsp;and a working capital deficit of $12,924.&nbsp;During the six months ended June 30, 2015, the Company used net cash in operating activities of $791,443.&nbsp; The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company&#x2019;s ability to continue as a going concern.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (See Note 14) for a purchase price of $500,000. It is anticipated that the proceeds from this note will provide the Company with cash sufficient to fund operations through September 2015. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, preferred stock, convertible debentures and the exercise of warrants. On April 6, 2015, the Company entered into a letter of engagement with a third party firm pursuant to which the firm will act as the sole book runner and lead managing underwriter in connection with a potential registered follow&#x2013;on offering of common stock or a combination of common stock and warrants. On May 26, 2015, the Company filed a Registration Statement on Form S-1 associated with this potential offering. In conjunction with the potential offering, we have applied for our shares to be listed on a national securities exchange. There can be no assurance that the follow on offering will be completed, that our application to the national securities exchange will be accepted or that funds associated with this potential offering will be available on terms acceptable to the Company, or that the funds from such offering will be sufficient to enable the Company to fully execute its business plan or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.&nbsp;</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.</font> </div><br/> 74725 -12924 550000 500000 <div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-weight: bold;">NOTE&nbsp;3 </font> <font style="font-family: Arial Unicode MS; font-size: 10.0pt; font-weight: bold;">&#x2013;</font> <font style="font-size: 10.0pt; font-weight: bold;">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Principles of Consolidation</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.&nbsp; All significant intercompany accounts and transactions have been eliminated in consolidation.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Use of Estimates</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company&#x2019;s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Concentrations of Credit Risk</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As of June 30, 2015, three customers represented 35%, 27% and 18% of the Company&#x2019;s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company&#x2019;s accounts receivable.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the three months ended June 30, 2015, two customers represented 56% and 20% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2015, three customers represented 60%, 15% and 11% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the three months ended June 30, 2014, three customers represented 57%, 15% and 12% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2014, three customers represented 46%, 24% and 14% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Deferred Offering Costs</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company classifies amounts related to a potential future offering not closed as of the balance sheet date as Deferred Offering Costs. During the six months ended June 30, 2015, the Company capitalized costs in the amount of $79,912 as Deferred Offering Costs in the accompanying condensed consolidated balance sheet.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Net Loss per Share</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period,&nbsp;adjusted to give effect to the 50-for-1 reverse stock split, which was effective in the market on July 2, 2015 (see Note 4),&nbsp;and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the &#x201c;treasury stock&#x201d;&nbsp;and/or &#x201c;if converted&#x201d;&nbsp;methods as applicable. The computation of basic and diluted loss per share&nbsp;for the three and six months ended&nbsp;June 30, 2015 and 2014 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:</font> </div><br/><table border="0" cellspacing="0" cellpadding="0"> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2015</font></p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2014</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Convertible notes payable</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">60,000</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Series A convertible preferred stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options to purchase common stock</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">517,406</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Warrants to purchase common stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">240,092</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">&nbsp;Restricted stock units</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">88,843</font></p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Totals</font></p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">786,852</font></p></td> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1,127,254</font></p></td> </tr> </table><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Recent Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled &#x201c;Simplifying the Presentation of Debt Issuance Costs.&#x201d; The new guidance specifies that debt issuance costs under the new standard are to be netted&nbsp;against&nbsp;the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement. The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for&nbsp;public business entities&nbsp;and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard will have a material impact on the Company&#x2019;s condensed consolidated financial statements.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Subsequent Events</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.&nbsp; Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.</font> </div><br/> <div style="font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Principles of Consolidation</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.&nbsp; All significant intercompany accounts and transactions have been eliminated in consolidation.</font></div> <div style="font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Use of Estimates</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company&#x2019;s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.</font></div> <div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Concentrations of Credit Risk</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As of June 30, 2015, three customers represented 35%, 27% and 18% of the Company&#x2019;s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company&#x2019;s accounts receivable.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the three months ended June 30, 2015, two customers represented 56% and 20% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2015, three customers represented 60%, 15% and 11% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the three months ended June 30, 2014, three customers represented 57%, 15% and 12% of total revenue.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2014, three customers represented 46%, 24% and 14% of total revenue.</font></div> 0.35 0.27 0.18 0.62 0.20 0.56 0.20 0.60 0.15 0.11 0.57 0.15 0.12 0.46 0.24 0.14 <div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Deferred Offering Costs</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company classifies amounts related to a potential future offering not closed as of the balance sheet date as Deferred Offering Costs. During the six months ended June 30, 2015, the Company capitalized costs in the amount of $79,912 as Deferred Offering Costs in the accompanying condensed consolidated balance sheet.</font></div> <div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Net Loss per Share</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period,&nbsp;adjusted to give effect to the 50-for-1 reverse stock split, which was effective in the market on July 2, 2015 (see Note 4),&nbsp;and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the &#x201c;treasury stock&#x201d;&nbsp;and/or &#x201c;if converted&#x201d;&nbsp;methods as applicable. The computation of basic and diluted loss per share&nbsp;for the three and six months ended&nbsp;June 30, 2015 and 2014 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:</font> </div><br/><table border="0" cellspacing="0" cellpadding="0"> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2015</font></p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2014</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Convertible notes payable</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">60,000</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Series A convertible preferred stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options to purchase common stock</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">517,406</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Warrants to purchase common stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">240,092</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">&nbsp;Restricted stock units</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">88,843</font></p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Totals</font></p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">786,852</font></p></td> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1,127,254</font></p></td> </tr> </table> <div style="font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Recent Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled &#x201c;Simplifying the Presentation of Debt Issuance Costs.&#x201d; The new guidance specifies that debt issuance costs under the new standard are to be netted&nbsp;against&nbsp;the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement. The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for&nbsp;public business entities&nbsp;and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard will have a material impact on the Company&#x2019;s condensed consolidated financial statements.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows.</font></div> <div style="font-size: 12.0pt; font-family: Times New Roman;"><font style="font-size: 10.0pt; font-style: italic;">Subsequent Events</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.&nbsp; Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.</font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2015</font></p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30,</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">2014</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Convertible notes payable</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">60,000</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Series A convertible preferred stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options to purchase common stock</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">517,406</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Warrants to purchase common stock</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">240,092</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">&nbsp;Restricted stock units</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">88,843</font></p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="74%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Totals</font></p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">786,852</font></p></td> <td style="height: 15.95pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; border-bottom: black 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1,127,254</font></p></td> </tr> </table> 60000 220913 565939 517406 220913 240092 88843 786852 1127254 <div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-weight: bold;">NOTE 4 </font> <font style="font-family: Arial Unicode MS; font-size: 10.0pt; font-weight: bold;">&#x2013; </font> <font style="font-size: 10.0pt; font-weight: bold;">STOCKHOLDERS</font> <font style="font-family: Arial Unicode MS; font-size: 10.0pt; font-weight: bold;">&#x2019; </font> <font style="font-size: 10.0pt; font-weight: bold;">EQUITY</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 10.0pt;"> <font style="font-size: 10.0pt;">Effective June 26, 2015 at the state level and July 2, 2015 in the market, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value, whereby 250,666,631 outstanding shares of the Company&#x2019;s common stock were exchanged for 5,013,366 shares of the Company's common stock. All per share amounts and number of shares in the condensed consolidated financial statements and related notes and other items have been retroactively restated to reflect the reverse stock split resulting in the transfer of $24,024 from common stock to additional paid in capital at December 31, 2014.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On March 3, 2015, 161,827 shares of the Company&#x2019;s Series A Convertible Preferred Stock were converted into an aggregate of&nbsp;47,646 shares of common stock at the stated conversion price of $3.395&nbsp;per share.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2015, the Company issued 8,188 shares of its common stock as consideration&nbsp;for investor relations services valued at $60,000.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">During the six months ended June 30, 2015, the Company issued 11,273 shares of its common stock as consideration&nbsp;for legal services valued at $68,401.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Options</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company&#x2019;s historical stock prices for 2015.&nbsp;Prior to 2015, the Company derived the volatility figure from an index of historical stock prices for comparable entities. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the &#x201c;simplified&#x201d; method, which is used for &#x201c;plain-vanilla" options, as defined in the accounting standards codification. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.&nbsp; </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company&#x2019;s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company&#x2019;s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company estimated forfeitures related to option grants at a weighted average annual rate of&nbsp; 0% per year, as the Company does not yet have adequate historical data, for options granted during the three and six months ended June 30, 2015 and 2014.</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The following assumptions were used in determining the fair value of employee and vesting non-employee options during the three and six months ended June 30, 2015 and 2014:</font> </div><br/><table border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30, </font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2015</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30, </font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2014</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Risk-free interest rate</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.68% - 2.07%</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2.13% - 2.73%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Dividend yield</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0%</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Stock price volatility</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">123.45%-145.24%</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">77.6% - 79.2%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Expected life</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5 - 10&nbsp;years</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8-10 &nbsp;years</font></p></td> </tr> <tr style="height: 12.5pt;"> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted average grant date fair value</font></p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$5.98</font></p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$5.50 </font></p></td> </tr> </table><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In January 2015, the Company granted options to purchase 7,500 shares of common stock to a new board member. These options vest over a 3 year period, have a term of 10 years, and contain an exercise price of $5.00 per share. The options had an aggregate grant date fair&nbsp;value of $34,945.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In April 2015, the Company granted options to purchase 80,000 shares of common stock to board members. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $493,774.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In May 2015, the Company granted an option to purchase 10,000 shares of common stock to a consultant. These options vest beginning June 30, 2015 through March 31, 2017 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $52,049.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In May 2015, the Company granted an option to purchase 1,000 shares of common stock to an employee. These options vest over three years on the grant date anniversary, have a term of 10 years and contain an exercise price of $6.50 per share. The options had an aggregate grant date fair value of $5,570.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In May 2015, the Company granted an option to purchase 20,000 shares of common stock to a new board member. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $128,115.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In June 2015, the Company granted options to purchase 8,000 shares of common stock to four consultants. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $41,688.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The following table summarizes the stock option activity for the six months ended June 30, 2015:</font> </div><br/><table style="width: 50%;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted<br />Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Contractual&nbsp;Term</font></p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Weighted-Average</font><br /><font style="font-size: 10pt; font-family: times new roman;">Exercise Price</font></p></td> <td width="2%">&nbsp;</td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Aggregate</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Intrinsic Value</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Shares</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at January 1, 2015</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">441,064 </font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.44</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.2</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">858,766</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Granted</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">126,500 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">6.88</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">10.0</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Canceled/expired</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">(1,625)</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$&nbsp;</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.73</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at June 30, 2015</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.09</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.9</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">118,486</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable at June 30, 2015</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">344,683 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.05</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">3.7</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,570</font></p></td> </tr> </table><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The following table presents information related to stock options at June 30, 2015:</font> </div><br/><table style="width: 50%; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" colspan="4" valign="bottom" width="50%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options Outstanding</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" colspan="3" valign="bottom" width="48%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options Exercisable</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="4" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining Life</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">In Years</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Number of</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Options</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercise</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Price</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Number of</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Options</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0.00-5.00</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">165,081</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.0</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">149,247</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.01-12.50</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">375,449</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.3</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">174,494</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">12.51-25.00</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">15,008</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.7</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">15,008</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">25.01-45.00</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">10,401</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.7</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5,934</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.9</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">344,683</font></p></td> </tr> </table><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As of June 30, 2015, stock-based compensation of $747,826 remains unamortized and is expected to be amortized over the weighted average remaining period of 3 years.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The stock-based compensation expense related to option grants was $112,744 and $168,897 during the three and six months ended June 30, 2015, respectively, and $157,828 and $233,545 during the three and six months ended June 30, 2014, respectively. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Restricted Stock</font> </div><br/><div style="margin-bottom: 12.0pt; text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As of June 30, 2015, the Company did not have any unissued restricted shares.&nbsp; Stock based compensation expense related to restricted stock grants was $-0- for the three and six months ended June 30, 2015, and $438,010 and $876,020 for the three and six months ended June 30, 2014, respectively.&nbsp; </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Warrants</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The following table summarizes the warrant activity for the six months ended June 30, 2015:</font> </div><br/><table style="width: 50%; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted-Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Contractual&nbsp;Term</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" colspan="2" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Aggregate</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Intrinsic</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Value</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Weighted-Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Exercise Price</font></p></td> <td width="2%">&nbsp;</td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Shares</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at January 1, 2015</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.7</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1,325,478</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Grants</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercised</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Forfeitures or expirations</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 12pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at June 30, 2015</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.2</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,457</font></p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable at June 30, 2015</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.2</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,457</font></p></td> </tr> </table><br/> Effective June 26, 2015 at the state level and July 2, 2015 in the market, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value 0.0001 250666631 5013366 24024 161827 47646 3.395 8188 60000 11273 68401 7500 P3Y P10Y 5.00 34945 80000 P10Y 7.00 493774 10000 P10Y 7.00 52049 1000 P3Y P10Y 6.50 5570 20000 P10Y 7.00 128115 8000 P10Y 7.00 41688 747826 P3Y 112744 168897 157828 233545 0 0 438010 876020 <table border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30, </font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2015</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">June 30, </font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2014</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Risk-free interest rate</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.68% - 2.07%</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">2.13% - 2.73%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Dividend yield</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0%</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Stock price volatility</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">123.45%-145.24%</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">77.6% - 79.2%</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Expected life</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5 - 10&nbsp;years</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8-10 &nbsp;years</font></p></td> </tr> <tr style="height: 12.5pt;"> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="66%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted average grant date fair value</font></p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$5.98</font></p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$5.50 </font></p></td> </tr> </table> 0.0168 0.0207 0.0213 0.0273 0.00 0.00 1.2345 1.4524 0.776 0.792 P5Y P10Y P8Y P10Y 5.98 5.50 <table style="width: 50%;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted<br />Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Contractual&nbsp;Term</font></p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 14.5pt;"> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Weighted-Average</font><br /><font style="font-size: 10pt; font-family: times new roman;">Exercise Price</font></p></td> <td width="2%">&nbsp;</td> <td style="height: 14.5pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 14.5pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Aggregate</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Intrinsic Value</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Shares</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at January 1, 2015</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">441,064 </font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.44</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.2</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">858,766</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Granted</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">126,500 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">6.88</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">10.0</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Canceled/expired</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">(1,625)</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$&nbsp;</font></p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.73</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at June 30, 2015</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.09</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.9</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">118,486</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable at June 30, 2015</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">344,683 </font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">8.05</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">3.7</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,570</font></p></td> </tr> </table> 441064 8.44 P4Y73D 858766 126500 6.88 P10Y 1625 5.73 565939 8.09 P4Y328D 118486 344683 8.05 P3Y255D 110570 <table style="width: 50%; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" colspan="4" valign="bottom" width="50%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options Outstanding</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" colspan="3" valign="bottom" width="48%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Options Exercisable</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="4" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining Life</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">In Years</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Number of</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Options</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercise</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Price</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Number of</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Options</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">0.00-5.00</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">165,081</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.0</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">149,247</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.01-12.50</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">375,449</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.3</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">174,494</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">12.51-25.00</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">15,008</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.7</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">15,008</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">25.01-45.00</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">10,401</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.7</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5,934</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">565,939</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">4.9</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="23%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">344,683</font></p></td> </tr> </table> 0.00 5.00 165081 P4Y 149247 5.01 12.50 375449 P5Y109D 174494 12.51 25.00 15008 P4Y255D 15008 25.01 45.00 10401 P4Y255D 5934 565939 P4Y328D 344683 <table style="width: 50%; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Weighted-Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Remaining</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Contractual&nbsp;Term</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="3" colspan="2" valign="bottom" width="16%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Aggregate</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Intrinsic</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Value</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: #000000 1px solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" rowspan="2" colspan="2" valign="bottom" width="14%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Weighted-Average</font></p><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; font-family: times new roman;">Exercise Price</font></p></td> <td width="2%">&nbsp;</td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: center; margin: 0in 0in 0pt; line-height: normal;" align="center"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Shares</font></p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at January 1, 2015</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.7</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1,325,478</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Grants</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercised</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.25pt;"> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Forfeitures or expirations</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 12pt; color: #000000; font-family: times new roman;">-</font></p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.25pt; background-image: none; background-repeat: repeat; background-attachment: scroll; border-bottom: windowtext 1pt solid; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Outstanding at June 30, 2015</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.2</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,457</font></p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background-image: none; background-repeat: repeat; background-attachment: scroll; background-position: 0% 0%; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> </tr> <tr style="height: 15.95pt;"> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="38%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">Exercisable at June 30, 2015</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">220,913</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="12%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">5.00 </font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">1.2</font></p></td> <td style="height: 15.95pt; background: #cceeff; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right">&nbsp;</p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="2%"><p style="margin: 0in 0in 0pt; line-height: normal;"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">$</font></p></td> <td style="height: 15.95pt; background: #cceeff; border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-top: 0in; padding-left: 1.5pt; padding-right: 1.5pt;" valign="bottom" width="14%"><p style="text-align: right; margin: 0in 0in 0pt; line-height: normal;" align="right"><font style="font-size: 10pt; color: #000000; font-family: times new roman;">110,457</font></p></td> </tr> </table> 220913 5.00 P1Y255D 1325478 220913 5.00 P1Y73D 110457 220913 5.00 P1Y73D 110457 <div style="font-size: 12.0pt; font-family: Times New Roman;"> &nbsp;&nbsp; <font style="font-size: 10.0pt; font-weight: bold;">NOTE 5 &#x2013; RELATED PARTY TRANSACTIONS</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">The Company appointed a new Chief Financial Officer during August 2014.&nbsp; The Company utilizes Assure Professional, LLC (&#x201c;Assure&#x201d;) to provide certain outsourced accounting services.&nbsp; The Company&#x2019;s current Chief Financial Officer is a partial owner of Assure.&nbsp; The Company incurred expense of $6,750 and $13,500 in exchange for these services during the three and six months ended June 30, 2015, respectively.&nbsp; Included in accounts payable at June 30, 2015 was $4,500 due to Assure. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Mr. D. Jonathan Merriman was appointed to the Company&#x2019;s Board of Directors during December 2014. Mr. Merriman is the CEO of Merriman Capital, Inc. (&#x201c;Merriman&#x201d;). Merriman provides capital market advisory services to the Company for which we incurred expense of $30,000 and $60,000 during the three and six months ended June 30, 2015, respectively. The Company primarily issues common stock in exchange for monthly services and no amount was due to Merriman at June 30, 2015.&nbsp; </font> </div><br/> 6750 13500 4500 30000 60000 <div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-weight: bold;">NOTE 6 &#x2013; COMMITMENTS AND CONTINGENCIES</font> </div><br/><div style="font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-style: italic;">Litigation</font> </div><br/><div style="margin-bottom: 10.0pt; text-align: justify; margin-right: 3.6pt; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486. The Company filed additional suits against IZEA, Inc. on October 17, 2012, Yelp, Inc. on October 17, 2012, and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of Illinois, which the Court denied on September 27, 2013.&nbsp;On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the district court's denial of its motion to transfer. On April 23, 2014, the petition was denied by the Federal Circuit.</font> </div><br/><div style="margin-bottom: 10.0pt; text-align: justify; margin-right: 3.6pt; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">Between July 19, 2013 and October 3, 2013, Group on filed petitions with the Patent Trial &amp; Appeals Board (&#x201c;PTAB&#x201d;) requesting institution of Covered Business Method Review&nbsp;<font style="font-size: 10pt; vertical-align: baseline; color: black; font-family: Times New Roman;" lang="EN-US">("CBMR")</font> of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the <font style="font-size: 10pt; vertical-align: baseline; color: black; font-family: Times New Roman;" lang="EN-US">CBMR</font> at the PTAB occurred during September 2014. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On December 17, 2014, the&nbsp;<font style="font-size: 10pt; font-family: Times New Roman;" lang="EN-US">PTAB</font> issued final decisions in&nbsp;<font style="font-size: 10pt; font-family: Times New Roman;" lang="EN-US">CBMR</font> proceedings CBM2013-00035, CBM2013-00033, CBM2013-00034, CBM2013-00046 and CBM2013-00044.&nbsp; In each case, certain claims of each patent were held to be invalid for various reasons. With respect to the &#x2018;516, &#x2018;679, &#x2018;055 and &#x2018;646 patents, many of the claims survived and the patents remain enforceable.&nbsp; All of the claims of the &#x2018;670 patent were held invalid.&nbsp; The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.&nbsp; A decision on those appeals is expected sometime in early 2016.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On April 2, 2015, the District Court lifted the stay and required the parties to file a joint docket control order. On April 6, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015. On April 15, 2015, the parties filed their joint docket control order. The Court entered its docket control order on April 23, 2015. Due to an apparent scheduling conflict, the Court rescheduled the Markman Hearing to July 8, 2015.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On April 22, 2015, the Company filed its third amended complaint against all defendants. The defendants timely answered on May 11, 2015. Each of the defendants answers included a counterclaim for invalidity of the patents.The Company responded to these invalidity contentions on June 1, 2015.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On May 13, 2015, the Company filed a motion for entry of an order focusing patent claims and prior art. That motion requested that the Court narrow the number of claims at issue and the number of prior art references that defendants could use in an attempt to invalidate the Company&#x2019;s patents. On May 27, 2015, the Court held a hearing on the motion and ordered defendants to reduce the number of references in support of any invalidity contention against the patents. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 13, 2015 the Court entered an order severing the non-active claims out of the case and consolidating claims regarding those patents into a separate set of cases. These new cases address the claims which were held invalid by the&nbsp;<font style="font-size: 10pt; color: black; font-family: Times New Roman;" lang="EN-US">PTAB</font> and which are now on appeal to the Federal Circuit Court of Appeals. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On June 25, 2015, the Company attended mediation with Yelp in an effort to settle the case. That mediation was recessed to explore settlement options.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 8, 2015 the Company attended the Markman Hearing in order to construe the claims of the patents. On July 14, 2015, the Court entered its Memorandum Opinion and Order regarding claim construction. In that Order, the Court analyzed eleven claim terms. The Court agreed with Blue Calypso&#x2019;s proffered construction as to seven terms, chose its own construction as to three terms and agreed with defendants&#x2019; proffered construction as to only one term. The Court also expressly rejected defendants argument that the term &#x201c;testimonial tag&#x201d; was indefinite. &nbsp;</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 14, 2015, the Company attended court-ordered mediation with Groupon. The result of that mediation was an impasse. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 16, 2015, the Company attended court-ordered mediation with IZEA. The parties reached a settlement in principal and are currently negotiating the final terms of the agreement. The potential terms of that settlement are confidential.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">On July 20, 2015, the Company attended court-ordered mediation with Foursquare. The result of that mediation was an impasse. </font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">As part of the Company's settlement with Living Social, the Company's attorney is entitled to additional compensation for the value of certain non-monetary arrangements. As of June 30, 2015, the payment of such compensation is not probable or measurable.</font> </div><br/><div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt;">In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable. </font> </div><br/> <div style="text-align: justify; font-size: 12.0pt; font-family: Times New Roman;"> <font style="font-size: 10.0pt; font-weight: bold;">NOTE 7 &#x2013; SUBSEQUENT EVENTS</font> </div><br/><div style="text-align: justify; text-indent: 36.0pt; font-family: Times New Roman; font-size: 10.0pt;"> <font style="font-size: 10.0pt;">On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (the &#x201c;July 2015 Note&#x201d;) for a purchase price of $500,000.&nbsp; The July 2015 Note is due one year from the issuance date.</font> </div><br/><div style="text-align: justify; text-indent: 36.0pt; font-family: Times New Roman; font-size: 10.0pt;"> <font style="font-size: 10.0pt;">On January 17, 2016, the Company shall be obligated to pay the lender <font style="font-size: 10pt; color: black; font-family: Times New Roman;" lang="EN-US">guaranteed</font> interest equal to 10% of the then outstanding principal. At any time following this date, the July 2015 Note, including all accrued but unpaid interest, default interest and any applicable late charges thereon, shall be convertible at the option of the lender, at a conversion price equal to $7.5321 per share. The July 2015 Note may be prepaid at any time by the Company (i) in shares of common stock of the Company at a 20% discount to the average of the three daily volume weighted average prices of&nbsp;<font style="font-size: 10pt; color: black; font-family: Times New Roman;" lang="EN-US">the Company's</font> common stock for the prior three trading days (the &#x201c;</font> <font style="font-size: 10pt;">Prepayment Price</font> <font style="font-size: 10.0pt;">&#x201d;), provided the Company is then and for a period prior thereto in compliance with certain equity conditions and/or (ii) in cash at a 120% premium to the amount then outstanding.</font> </div><br/><div style="text-align: justify; text-indent: 36.0pt; font-family: Times New Roman; font-size: 10.0pt;"> <font style="font-size: 10.0pt;">If the $550,000 principal amount of the July 2015 Note and all accrued but unpaid interest thereof is not paid in full on or before January 16, 2016, <font style="font-size: 10pt; color: black; font-family: Times New Roman;" lang="EN-US">the July 2015</font> Note shall amortize in four equal payments payable on January 20, 2016, February 20, 2016, March 20, 2016 and April 20, 2016. These payments shall be paid (i) in cash at a 120% premium, and/or (ii) in shares of <font style="font-size: 10pt; color: black; font-family: Times New Roman;" lang="EN-US">the Company's</font> common stock at the Prepayment Price, provided Blue Calypso is in compliance with certain equity conditions as defined in the July 2015 Note.&nbsp;</font> </div><br/> 550000 500000 P1Y 0.10 7.5321 0.20 P3D 1.20 EX-101.SCH 7 bcyp-20150630.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 001 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) link:presentationLink link:definitionLink link:calculationLink 004 - Statement - CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS` EQUITY link:presentationLink link:definitionLink link:calculationLink 005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - NATURE OF OPERATIONS AND BASIS OF PRESENTATION link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - STOCKHOLDERS` EQUITY link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - RELATED PARTY TRANSACTIONS link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - COMMITMENTS AND CONTINGENCIES link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - Accounting Policies, by Policy (Policies) link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - STOCKHOLDERS` EQUITY (Tables) link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) link:presentationLink link:definitionLink link:calculationLink 018 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share link:presentationLink link:definitionLink link:calculationLink 019 - Disclosure - STOCKHOLDERS` EQUITY (Details) link:presentationLink link:definitionLink link:calculationLink 020 - Disclosure - STOCKHOLDERS` EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options link:presentationLink link:definitionLink link:calculationLink 021 - Disclosure - STOCKHOLDERS` EQUITY (Details) - Stock option activity link:presentationLink link:definitionLink link:calculationLink 022 - Disclosure - STOCKHOLDERS` EQUITY (Details) - Information related employee stock options link:presentationLink link:definitionLink link:calculationLink 023 - Disclosure - STOCKHOLDERS` EQUITY (Details) - Warrant activity link:presentationLink link:definitionLink link:calculationLink 024 - Disclosure - RELATED PARTY TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 025 - Disclosure - SUBSEQUENT EVENTS (Details) link:presentationLink link:definitionLink link:calculationLink 000 - Disclosure - Document And Entity Information link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 8 bcyp-20150630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 9 bcyp-20150630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 10 bcyp-20150630_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT EX-101.PRE 11 bcyp-20150630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT EXCEL 12 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0````(`-F)`T>>@Q`EF@$``$,2```3````6T-O;G1E;G1?5'EP97-= M+GAM;,V874_",!2&_PK9K6&E5?$CP(UXJR3Z!^IVQAK:M6G+@']O.]#H,@TH M2\[-/GA/S_MNIWLNF+SN#+C!5LG*39/2>W-/B,M*4-REVD`5E$);Q7VXM4MB M>+;B2R!L-!J33%<>*C_TL4ZCK4 M12$RR'6V5F%)ZH,U7`0]&2RX]4]/XJ26\A?O`WS[?XVOA;TER/. 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RELATED PARTY TRANSACTIONS (Details) - Jun. 30, 2015 - USD ($)
Total
Total
Assure [Member]    
RELATED PARTY TRANSACTIONS (Details) [Line Items]    
Related Party Transaction, Expenses from Transactions with Related Party $ 6,750 $ 13,500
Due to Related Parties 4,500 4,500
Merriman [Member]    
RELATED PARTY TRANSACTIONS (Details) [Line Items]    
Related Party Transaction, Expenses from Transactions with Related Party $ 30,000 $ 60,000

XML 15 R9.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

Concentrations of Credit Risk

As of June 30, 2015, three customers represented 35%, 27% and 18% of the Company’s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company’s accounts receivable.

During the three months ended June 30, 2015, two customers represented 56% and 20% of total revenue.

During the six months ended June 30, 2015, three customers represented 60%, 15% and 11% of total revenue.

During the three months ended June 30, 2014, three customers represented 57%, 15% and 12% of total revenue.

During the six months ended June 30, 2014, three customers represented 46%, 24% and 14% of total revenue.

Deferred Offering Costs

The Company classifies amounts related to a potential future offering not closed as of the balance sheet date as Deferred Offering Costs. During the six months ended June 30, 2015, the Company capitalized costs in the amount of $79,912 as Deferred Offering Costs in the accompanying condensed consolidated balance sheet.

Net Loss per Share

The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period, adjusted to give effect to the 50-for-1 reverse stock split, which was effective in the market on July 2, 2015 (see Note 4), and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:

 

June 30,

2015

 

June 30,

2014

 

 

Convertible notes payable

-

 

60,000

Series A convertible preferred stock

-

 

220,913

Options to purchase common stock

565,939

 

517,406

Warrants to purchase common stock

220,913

 

240,092

 Restricted stock units

-

 

88,843

Totals

786,852

 

1,127,254


Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled “Simplifying the Presentation of Debt Issuance Costs.” The new guidance specifies that debt issuance costs under the new standard are to be netted against the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement. The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for public business entities and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.2.0.727
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS
6 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]
NOTE 2 –GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

As of June 30, 2015, the Company had cash of $74,725 and a working capital deficit of $12,924. During the six months ended June 30, 2015, the Company used net cash in operating activities of $791,443.  The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (See Note 14) for a purchase price of $500,000. It is anticipated that the proceeds from this note will provide the Company with cash sufficient to fund operations through September 2015.

The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, preferred stock, convertible debentures and the exercise of warrants. On April 6, 2015, the Company entered into a letter of engagement with a third party firm pursuant to which the firm will act as the sole book runner and lead managing underwriter in connection with a potential registered follow–on offering of common stock or a combination of common stock and warrants. On May 26, 2015, the Company filed a Registration Statement on Form S-1 associated with this potential offering. In conjunction with the potential offering, we have applied for our shares to be listed on a national securities exchange. There can be no assurance that the follow on offering will be completed, that our application to the national securities exchange will be accepted or that funds associated with this potential offering will be available on terms acceptable to the Company, or that the funds from such offering will be sufficient to enable the Company to fully execute its business plan or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. 

Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

XML 17 R2.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 74,725 $ 1,103,201
Accounts receivable, net 79,618 167,396
Prepaid expenses and other current assets 47,912 50,356
Total current assets 202,255 1,320,953
Property and equipment, net 10,022 $ 6,315
Other assets:    
Deferred offering costs 79,912  
Capitalized software development costs, net of accumulated amortization of $1,156,478 and $986,502 as of June 30, 2015 and December 31, 2014, respectively 775,190 $ 794,551
Total assets 1,067,379 2,121,819
Current liabilities:    
Accounts payable 108,139 24,600
Accrued expenses $ 107,040 236,526
Deferred revenue   1,100
Total current liabilities $ 215,179 262,226
Stockholders' equity:    
Preferred stock, $0.0001 par value; 5,000,000 shares authorized: Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; -0- and 161,827 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively   16
Common stock, $0.0001 par value; 680,000,000 shares authorized, 5,013,366 and 4,902,639 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively $ 501 490
Additional paid in capital 34,323,624 34,026,321
Accumulated deficit (33,471,925) (32,167,234)
Total stockholders' equity 852,200 1,859,593
Total liabilities and stockholders' equity $ 1,067,379 $ 2,121,819
Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, $0.0001 par value; 5,000,000 shares authorized: Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; -0- and 161,827 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively    
Total stockholders' equity   $ 16
Series A Convertible Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, $0.0001 par value; 5,000,000 shares authorized: Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; -0- and 161,827 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively   $ 16
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,304,691) $ (3,198,613)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 172,775 $ 168,191
Bad debt expense $ 19,141  
Amortization of debt discounts   $ 125,550
Interest from warrant modification   460,949
Change in fair value of derivative liabilities   (2,030)
Stock based compensation $ 168,897 1,109,565
Common stock issued for services rendered 128,401 80,000
Changes in operating assets and liabilities:    
Accounts receivable 68,637 (65,287)
Prepaid expenses 2,444 35,430
Accounts payable 83,539 (56,197)
Accrued expenses (129,486) 44,396
Deferred revenue (1,100) 48,069
Net cash used in operating activities (791,443) $ (1,249,977)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of fixed assets (6,506)  
Software development costs (150,615) $ (63,434)
Net cash used in investing activities $ (157,121) (63,434)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from exercise of options   $ 21,728
Deferred offering costs $ (79,912)  
Proceeds from exercise of warrants   $ 1,024,558
Net cash (used) provided by financing activities $ (79,912) 1,046,286
Net decrease in cash (1,028,476) (267,125)
Cash at beginning of period 1,103,201 1,294,882
Cash at end of period 74,725 $ 1,027,757
SUPPLEMENTAL INFORMATION    
Cash paid for interest $ 1,473  
Cash paid for income taxes    
Non-cash investing and financing activities:    
Issuance of shares upon conversion of Series A convertible preferred stock $ 16  
XML 19 R22.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY (Details) - Stock option activity - Jun. 30, 2015 - USD ($)
Total
Total
Stock option activity [Abstract]    
Outstanding at January 1, 2015   441,064
Outstanding at January 1, 2015   $ 8.44
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 4 years 328 days 4 years 73 days
Outstanding at January 1, 2015   $ 858,766
Granted 126,500  
Granted $ 6.88  
Granted 10 years  
Canceled/expired (1,625)  
Canceled/expired $ 5.73  
Outstanding at June 30, 2015 565,939 565,939
Outstanding at June 30, 2015 $ 8.09 $ 8.09
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 4 years 328 days 4 years 73 days
Outstanding at June 30, 2015 $ 118,486 $ 118,486
Exercisable at June 30, 2015 344,683 344,683
Exercisable at June 30, 2015 $ 8.05 $ 8.05
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 3 years 255 days  
Exercisable at June 30, 2015 $ 110,570 $ 110,570
XML 20 R24.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY (Details) - Warrant activity - 6 months ended Jun. 30, 2015 - Warrant [Member] - USD ($)
Total
Total
STOCKHOLDERS` EQUITY (Details) - Warrant activity [Line Items]    
Outstanding at January 1, 2015   220,913
Outstanding at January 1, 2015 (in Dollars per share)   $ 5.00
SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm 1 year 73 days 1 year 255 days
Outstanding at January 1, 2015 (in Dollars)   $ 1,325,478
Grants    
Grants (in Dollars)    
Exercised    
Forfeitures or expirations    
Outstanding at June 30, 2015 220,913 220,913
Outstanding at June 30, 2015 (in Dollars per share) $ 5.00 $ 5.00
SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm 1 year 73 days 1 year 255 days
Outstanding at June 30, 2015 (in Dollars) $ 110,457 $ 110,457
ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber 220,913  
Exercisable at June 30, 2015 (in Dollars per share) $ 5.00 $ 5.00
SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsExercisableWeightedAverageRemainingContractualTerm 1 year 73 days  
Exercisable at June 30, 2015 (in Dollars) $ 110,457 $ 110,457
XML 21 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 22 R7.htm IDEA: XBRL DOCUMENT v3.2.0.727
NATURE OF OPERATIONS AND BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2015
Disclosure Text Block [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Blue Calypso, Inc., a Delaware corporation (the "Company”), is engaged in the development, sales, delivery, licensing and enforcement of technology and intellectual property focused on mobile shopper engagement and digital word-of-mouth marketing and advertising. In January 2014, the Company transitioned from a development stage enterprise to an operating company.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the operating results for the full year ending December 31, 2015, or any other period.  These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of December 31, 2014 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 17, 2015.

XML 23 R3.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Capitalized software development costs,accumulated amortization (in Dollars) $ 1,156,478 $ 986,502
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock,shares authorized 680,000,000 680,000,000
Common stock,shares issued 5,013,366 4,902,639
Common stock, shares outstanding 5,013,366 4,902,639
Preferred Stock [Member]    
Preferred stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized 5,000,000 5,000,000
Series A Convertible Preferred Stock [Member]    
Preferred stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized 1,700,000 1,700,000
Preferred stock, shares issued 0 161,827
Preferred stock, shares outstanding 0 161,827
XML 24 R17.htm IDEA: XBRL DOCUMENT v3.2.0.727
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) - USD ($)
6 Months Ended
Jul. 20, 2015
Jun. 30, 2015
Jun. 30, 2014
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]      
Cash   $ 74,725  
Working Capital   (12,924)  
Net Cash Provided by (Used in) Operating Activities   $ (791,443) $ (1,249,977)
Subsequent Event [Member]      
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]      
Convertible Debt, Noncurrent $ 550,000    
Proceeds from Convertible Debt $ 500,000    
XML 25 R1.htm IDEA: XBRL DOCUMENT v3.2.0.727
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2015
Aug. 03, 2015
Document and Entity Information [Abstract]    
Entity Registrant Name BLUE CALYPSO, INC.  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   5,013,366
Amendment Flag false  
Entity Central Index Key 0001399587  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Filer Category Smaller Reporting Company  
Entity Well-known Seasoned Issuer No  
Document Period End Date Jun. 30, 2015  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q2  
XML 26 R18.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Deferred Offering Costs (in Dollars) $ 79,912   $ 79,912    
Customer 1 [Member] | Accounts Receivable [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage     35.00%   62.00%
Customer 1 [Member] | Sales [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage 56.00% 57.00% 60.00% 46.00%  
Customer 2 [Member] | Accounts Receivable [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage     27.00%   20.00%
Customer 2 [Member] | Sales [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage 20.00% 15.00% 15.00% 24.00%  
Customer 3 [Member] | Accounts Receivable [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage     18.00%    
Customer 3 [Member] | Sales [Member]          
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]          
Concentration Risk, Percentage   12.00% 11.00% 14.00%  
XML 27 R4.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
REVENUE $ 109,489 $ 122,032 $ 225,214 $ 286,247
Cost of revenue 44,665 71,046 99,777 144,793
Gross profit 64,824 50,986 125,437 141,454
OPERATING EXPENSES:        
Sales and marketing 105,681 144,949 154,255 308,466
General and administrative 566,078 1,178,874 1,101,625 2,251,250
Depreciation and amortization 88,154 84,776 172,775 168,191
Total operating expenses 759,913 1,408,599 1,428,655 2,727,907
Loss from operations $ (695,089) (1,357,613) $ (1,303,218) (2,586,453)
Other expense:        
Change in fair value of derivative liabilities   487   2,030
Interest expense $ (757) (96,126) $ (1,473) (614,190)
Total other expense (757) (95,639) (1,473) (612,160)
NET LOSS $ (695,846) $ (1,453,252) $ (1,304,691) $ (3,198,613)
Net loss per common share, basic and diluted (in Dollars per share) $ (0.14) $ (0.34) $ (0.26) $ (0.78)
Weighted average common shares outstanding, basic and diluted (in Shares) 4,985,204 4,218,096 4,951,625 4,110,304
XML 28 R12.htm IDEA: XBRL DOCUMENT v3.2.0.727
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
NOTE 6 – COMMITMENTS AND CONTINGENCIES

Litigation

On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486. The Company filed additional suits against IZEA, Inc. on October 17, 2012, Yelp, Inc. on October 17, 2012, and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of Illinois, which the Court denied on September 27, 2013. On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the district court's denial of its motion to transfer. On April 23, 2014, the petition was denied by the Federal Circuit.

Between July 19, 2013 and October 3, 2013, Group on filed petitions with the Patent Trial & Appeals Board (“PTAB”) requesting institution of Covered Business Method Review ("CBMR") of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the CBMR at the PTAB occurred during September 2014.

On December 17, 2014, the PTAB issued final decisions in CBMR proceedings CBM2013-00035, CBM2013-00033, CBM2013-00034, CBM2013-00046 and CBM2013-00044.  In each case, certain claims of each patent were held to be invalid for various reasons. With respect to the ‘516, ‘679, ‘055 and ‘646 patents, many of the claims survived and the patents remain enforceable.  All of the claims of the ‘670 patent were held invalid.  The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.  A decision on those appeals is expected sometime in early 2016.

On April 2, 2015, the District Court lifted the stay and required the parties to file a joint docket control order. On April 6, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015. On April 15, 2015, the parties filed their joint docket control order. The Court entered its docket control order on April 23, 2015. Due to an apparent scheduling conflict, the Court rescheduled the Markman Hearing to July 8, 2015.

On April 22, 2015, the Company filed its third amended complaint against all defendants. The defendants timely answered on May 11, 2015. Each of the defendants answers included a counterclaim for invalidity of the patents.The Company responded to these invalidity contentions on June 1, 2015.

On May 13, 2015, the Company filed a motion for entry of an order focusing patent claims and prior art. That motion requested that the Court narrow the number of claims at issue and the number of prior art references that defendants could use in an attempt to invalidate the Company’s patents. On May 27, 2015, the Court held a hearing on the motion and ordered defendants to reduce the number of references in support of any invalidity contention against the patents.

On July 13, 2015 the Court entered an order severing the non-active claims out of the case and consolidating claims regarding those patents into a separate set of cases. These new cases address the claims which were held invalid by the PTAB and which are now on appeal to the Federal Circuit Court of Appeals.

On June 25, 2015, the Company attended mediation with Yelp in an effort to settle the case. That mediation was recessed to explore settlement options.

On July 8, 2015 the Company attended the Markman Hearing in order to construe the claims of the patents. On July 14, 2015, the Court entered its Memorandum Opinion and Order regarding claim construction. In that Order, the Court analyzed eleven claim terms. The Court agreed with Blue Calypso’s proffered construction as to seven terms, chose its own construction as to three terms and agreed with defendants’ proffered construction as to only one term. The Court also expressly rejected defendants argument that the term “testimonial tag” was indefinite.  

On July 14, 2015, the Company attended court-ordered mediation with Groupon. The result of that mediation was an impasse.

On July 16, 2015, the Company attended court-ordered mediation with IZEA. The parties reached a settlement in principal and are currently negotiating the final terms of the agreement. The potential terms of that settlement are confidential.

On July 20, 2015, the Company attended court-ordered mediation with Foursquare. The result of that mediation was an impasse.

As part of the Company's settlement with Living Social, the Company's attorney is entitled to additional compensation for the value of certain non-monetary arrangements. As of June 30, 2015, the payment of such compensation is not probable or measurable.

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable.

XML 29 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
   NOTE 5 – RELATED PARTY TRANSACTIONS

The Company appointed a new Chief Financial Officer during August 2014.  The Company utilizes Assure Professional, LLC (“Assure”) to provide certain outsourced accounting services.  The Company’s current Chief Financial Officer is a partial owner of Assure.  The Company incurred expense of $6,750 and $13,500 in exchange for these services during the three and six months ended June 30, 2015, respectively.  Included in accounts payable at June 30, 2015 was $4,500 due to Assure.

Mr. D. Jonathan Merriman was appointed to the Company’s Board of Directors during December 2014. Mr. Merriman is the CEO of Merriman Capital, Inc. (“Merriman”). Merriman provides capital market advisory services to the Company for which we incurred expense of $30,000 and $60,000 during the three and six months ended June 30, 2015, respectively. The Company primarily issues common stock in exchange for monthly services and no amount was due to Merriman at June 30, 2015. 

XML 30 R23.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY (Details) - Information related employee stock options - Jun. 30, 2015 - $ / shares
Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Number of Options 565,939
Options Exercisable, Weighted Average Remaining Life 4 years 328 days
Options Exercisable, Number of Options 344,683
Exercise Price Range 0.00 - 5.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Number of Options 165,081
Options Exercisable, Weighted Average Remaining Life 4 years
Options Exercisable, Number of Options 149,247
Exercise Price Range 5.01 - 12.50 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Number of Options 375,449
Options Exercisable, Weighted Average Remaining Life 5 years 109 days
Options Exercisable, Number of Options 174,494
Exercise Price Range 12.51 - 25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Number of Options 15,008
Options Exercisable, Weighted Average Remaining Life 4 years 255 days
Options Exercisable, Number of Options 15,008
Exercise Price Range 25.01 - 45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Number of Options 10,401
Options Exercisable, Weighted Average Remaining Life 4 years 255 days
Options Exercisable, Number of Options 5,934
Minimum [Member] | Exercise Price Range 0.00 - 5.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) $ 0.00
Minimum [Member] | Exercise Price Range 5.01 - 12.50 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 5.01
Minimum [Member] | Exercise Price Range 12.51 - 25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 12.51
Minimum [Member] | Exercise Price Range 25.01 - 45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 25.01
Maximum [Member] | Exercise Price Range 0.00 - 5.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 5.00
Maximum [Member] | Exercise Price Range 5.01 - 12.50 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 12.50
Maximum [Member] | Exercise Price Range 12.51 - 25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) 25.00
Maximum [Member] | Exercise Price Range 25.01 - 45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options Outstanding, Exercise Price (in Dollars per share) $ 45.00
XML 31 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share - shares
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share 786,852 1,127,254
Restricted Stock Units (RSUs) [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share   88,843
Series A Preferred Stock [Member] | Convertible Debt Securities [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share   220,913
Common Stock [Member] | Employee Stock Option [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share 565,939 517,406
Common Stock [Member] | Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share 220,913 240,092
Convertible Notes Payable [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share   60,000
XML 32 R15.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

 

June 30,

2015

 

June 30,

2014

 

 

Convertible notes payable

-

 

60,000

Series A convertible preferred stock

-

 

220,913

Options to purchase common stock

565,939

 

517,406

Warrants to purchase common stock

220,913

 

240,092

 Restricted stock units

-

 

88,843

Totals

786,852

 

1,127,254

XML 33 R13.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
NOTE 7 – SUBSEQUENT EVENTS

On July 20, 2015, the Company issued a senior convertible note with a principal amount of $550,000 (the “July 2015 Note”) for a purchase price of $500,000.  The July 2015 Note is due one year from the issuance date.

On January 17, 2016, the Company shall be obligated to pay the lender guaranteed interest equal to 10% of the then outstanding principal. At any time following this date, the July 2015 Note, including all accrued but unpaid interest, default interest and any applicable late charges thereon, shall be convertible at the option of the lender, at a conversion price equal to $7.5321 per share. The July 2015 Note may be prepaid at any time by the Company (i) in shares of common stock of the Company at a 20% discount to the average of the three daily volume weighted average prices of the Company's common stock for the prior three trading days (the “ Prepayment Price ”), provided the Company is then and for a period prior thereto in compliance with certain equity conditions and/or (ii) in cash at a 120% premium to the amount then outstanding.

If the $550,000 principal amount of the July 2015 Note and all accrued but unpaid interest thereof is not paid in full on or before January 16, 2016, the July 2015 Note shall amortize in four equal payments payable on January 20, 2016, February 20, 2016, March 20, 2016 and April 20, 2016. These payments shall be paid (i) in cash at a 120% premium, and/or (ii) in shares of the Company's common stock at the Prepayment Price, provided Blue Calypso is in compliance with certain equity conditions as defined in the July 2015 Note. 

XML 34 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
Accounting Policies, by Policy (Policies)
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentrations of Credit Risk

As of June 30, 2015, three customers represented 35%, 27% and 18% of the Company’s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company’s accounts receivable.

During the three months ended June 30, 2015, two customers represented 56% and 20% of total revenue.

During the six months ended June 30, 2015, three customers represented 60%, 15% and 11% of total revenue.

During the three months ended June 30, 2014, three customers represented 57%, 15% and 12% of total revenue.

During the six months ended June 30, 2014, three customers represented 46%, 24% and 14% of total revenue.
Deferred Charges, Policy [Policy Text Block]
Deferred Offering Costs

The Company classifies amounts related to a potential future offering not closed as of the balance sheet date as Deferred Offering Costs. During the six months ended June 30, 2015, the Company capitalized costs in the amount of $79,912 as Deferred Offering Costs in the accompanying condensed consolidated balance sheet.
Earnings Per Share, Policy [Policy Text Block]
Net Loss per Share

The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period, adjusted to give effect to the 50-for-1 reverse stock split, which was effective in the market on July 2, 2015 (see Note 4), and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share for the three and six months ended June 30, 2015 and 2014 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:

 

June 30,

2015

 

June 30,

2014

 

 

Convertible notes payable

-

 

60,000

Series A convertible preferred stock

-

 

220,913

Options to purchase common stock

565,939

 

517,406

Warrants to purchase common stock

220,913

 

240,092

 Restricted stock units

-

 

88,843

Totals

786,852

 

1,127,254

New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Number 2015-3 entitled “Simplifying the Presentation of Debt Issuance Costs.” The new guidance specifies that debt issuance costs under the new standard are to be netted against the carrying value of the financial liability. Under current guidance, debt issuance costs are recognized as a deferred charge and reported as a separate asset on the balance sheet. The new guidance aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. It is important to note that neither the recognition nor measurement of debt issuance costs is changed as a result of the ASU. Amortization of debt issuance costs is to be recorded as interest expense on the income statement. The effective date of the new guidance is for fiscal years beginning after December 15, 2015, for public business entities and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been issued previously. The Company does not believe the effect of the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows.
Subsequent Events, Policy [Policy Text Block]
Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.
XML 35 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY (Tables)
6 Months Ended
Jun. 30, 2015
Stockholders' Equity Note [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

 

June 30,

2015

 

June 30,

2014

Risk-free interest rate

1.68% - 2.07%

 

2.13% - 2.73%

Dividend yield

0%

 

0%

Stock price volatility

123.45%-145.24%

 

77.6% - 79.2%

Expected life

5 - 10 years

 

8-10  years

Weighted average grant date fair value

$5.98

 

$5.50

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

 

 

 

 

 

 

Weighted
Average

Remaining

Contractual Term

 

 

 

 

 

 

Weighted-Average
Exercise Price

 

 

Aggregate

Intrinsic Value

 

Shares

 

 

 

Outstanding at January 1, 2015

441,064

 

$

8.44

 

4.2

 

$

858,766

Granted

126,500

 

$

6.88

 

10.0

 

 

 

Canceled/expired

(1,625)

 

5.73

 

 

 

 

 

Outstanding at June 30, 2015

565,939

 

$

8.09

 

4.9

 

$

118,486

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

344,683

 

$

8.05

 

3.7

 

$

110,570

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Options Outstanding

 

Options Exercisable

 

 

 

 

 

Weighted

Average

Remaining Life

In Years

 

 

 

 

 

 

 

 

Exercisable

Number of

Options

 

Exercise

Price

 

Number of

Options

 

 

 

 

 

 

$

0.00-5.00

 

165,081

 

4.0

 

149,247

 

5.01-12.50

 

375,449

 

5.3

 

174,494

 

12.51-25.00

 

15,008

 

4.7

 

15,008

 

25.01-45.00

 

10,401

 

4.7

 

5,934

 

 

 

565,939

 

4.9

 

344,683

Schedule Of Warrants Activity [Table Text Block]

 

 

 

 

 

 

Weighted-Average

Remaining

Contractual Term

 

Aggregate

Intrinsic

Value

 

 

 

Weighted-Average

Exercise Price

 

 

 

Shares

 

 

 

Outstanding at January 1, 2015

220,913

 

$

5.00

 

1.7

 

$

1,325,478

Grants

-

 

 

 

 

 

 

$

-

Exercised

-

 

 

 

 

 

 

 

 

Forfeitures or expirations

-

 

 

 

 

 

 

 

 

Outstanding at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457

XML 36 R21.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options - $ / shares
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
STOCKHOLDERS` EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]    
Dividend yield 0.00% 0.00%
Weighted average grant date fair value (in Dollars per share) $ 5.98 $ 5.50
Minimum [Member]    
STOCKHOLDERS` EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]    
Risk-free interest rate 1.68% 2.13%
Stock price volatility 123.45% 77.60%
Expected life 5 years 8 years
Maximum [Member]    
STOCKHOLDERS` EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]    
Risk-free interest rate 2.07% 2.73%
Stock price volatility 145.24% 79.20%
Expected life 10 years 10 years
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUBSEQUENT EVENTS (Details) - July 2015 Note [Member] - Subsequent Event [Member] - USD ($)
1 Months Ended
Jul. 20, 2015
Jul. 20, 2015
Jan. 17, 2016
SUBSEQUENT EVENTS (Details) [Line Items]      
Debt Instrument, Face Amount (in Dollars) $ 550,000 $ 550,000  
Proceeds from Issuance of Debt (in Dollars) $ 500,000    
Debt Instrument, Maturity Period 1 year    
Debt Instrument, Interest Rate, Stated Percentage     10.00%
Debt Instrument, Convertible, Conversion Price (in Dollars per share)     $ 7.5321
Debt Instrument, Prepayment Price, Discount Rate   20.00%  
Debt Instrument, Convertible, Threshold Consecutive Trading Days   3 days  
Debt Instrument, Cash Prepayment, Premium Rate   120.00%  
XML 38 R5.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS` EQUITY - 6 months ended Jun. 30, 2015 - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2014 $ 16 $ 490 $ 34,026,321 $ (32,167,234) $ 1,859,593
Balance (in Shares) at Dec. 31, 2014 161,827 4,902,639      
Conversion of preferred shares to common shares $ (16) $ 5 11    
Conversion of preferred shares to common shares (in Shares) (161,827) 47,646      
Shares issued for services rendered   $ 2 128,399   128,401
Shares issued for services rendered (in Shares)   19,461      
Stock based compensation   $ 4 168,893   168,897
Stock based compensation (in Shares)   43,620      
Net loss       (1,304,691) (1,304,691)
Balance at Jun. 30, 2015   $ 501 $ 34,323,624 $ (33,471,925) $ 852,200
Balance (in Shares) at Jun. 30, 2015   5,013,366      
XML 39 R10.htm IDEA: XBRL DOCUMENT v3.2.0.727
STOCKHOLDERS` EQUITY
6 Months Ended
Jun. 30, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
NOTE 4 STOCKHOLDERS EQUITY

Effective June 26, 2015 at the state level and July 2, 2015 in the market, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value, whereby 250,666,631 outstanding shares of the Company’s common stock were exchanged for 5,013,366 shares of the Company's common stock. All per share amounts and number of shares in the condensed consolidated financial statements and related notes and other items have been retroactively restated to reflect the reverse stock split resulting in the transfer of $24,024 from common stock to additional paid in capital at December 31, 2014.

On March 3, 2015, 161,827 shares of the Company’s Series A Convertible Preferred Stock were converted into an aggregate of 47,646 shares of common stock at the stated conversion price of $3.395 per share.

During the six months ended June 30, 2015, the Company issued 8,188 shares of its common stock as consideration for investor relations services valued at $60,000.

During the six months ended June 30, 2015, the Company issued 11,273 shares of its common stock as consideration for legal services valued at $68,401.

Options

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices for 2015. Prior to 2015, the Company derived the volatility figure from an index of historical stock prices for comparable entities. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla" options, as defined in the accounting standards codification.

The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. 

In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.

The Company estimated forfeitures related to option grants at a weighted average annual rate of  0% per year, as the Company does not yet have adequate historical data, for options granted during the three and six months ended June 30, 2015 and 2014.

The following assumptions were used in determining the fair value of employee and vesting non-employee options during the three and six months ended June 30, 2015 and 2014:

 

June 30,

2015

 

June 30,

2014

Risk-free interest rate

1.68% - 2.07%

 

2.13% - 2.73%

Dividend yield

0%

 

0%

Stock price volatility

123.45%-145.24%

 

77.6% - 79.2%

Expected life

5 - 10 years

 

8-10  years

Weighted average grant date fair value

$5.98

 

$5.50


In January 2015, the Company granted options to purchase 7,500 shares of common stock to a new board member. These options vest over a 3 year period, have a term of 10 years, and contain an exercise price of $5.00 per share. The options had an aggregate grant date fair value of $34,945.

In April 2015, the Company granted options to purchase 80,000 shares of common stock to board members. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $493,774.

In May 2015, the Company granted an option to purchase 10,000 shares of common stock to a consultant. These options vest beginning June 30, 2015 through March 31, 2017 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $52,049.

In May 2015, the Company granted an option to purchase 1,000 shares of common stock to an employee. These options vest over three years on the grant date anniversary, have a term of 10 years and contain an exercise price of $6.50 per share. The options had an aggregate grant date fair value of $5,570.

In May 2015, the Company granted an option to purchase 20,000 shares of common stock to a new board member. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $128,115.

In June 2015, the Company granted options to purchase 8,000 shares of common stock to four consultants. These options vest beginning June 30, 2015 through March 31, 2018 on a quarterly basis, have a term of 10 years and contain an exercise price of $7.00 per share. The options had an aggregate grant date fair value of $41,688.

The following table summarizes the stock option activity for the six months ended June 30, 2015:

 

 

 

 

 

 

Weighted
Average

Remaining

Contractual Term

 

 

 

 

 

 

Weighted-Average
Exercise Price

 

 

Aggregate

Intrinsic Value

 

Shares

 

 

 

Outstanding at January 1, 2015

441,064

 

$

8.44

 

4.2

 

$

858,766

Granted

126,500

 

$

6.88

 

10.0

 

 

 

Canceled/expired

(1,625)

 

5.73

 

 

 

 

 

Outstanding at June 30, 2015

565,939

 

$

8.09

 

4.9

 

$

118,486

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

344,683

 

$

8.05

 

3.7

 

$

110,570


The following table presents information related to stock options at June 30, 2015:

Options Outstanding

 

Options Exercisable

 

 

 

 

 

Weighted

Average

Remaining Life

In Years

 

 

 

 

 

 

 

 

Exercisable

Number of

Options

 

Exercise

Price

 

Number of

Options

 

 

 

 

 

 

$

0.00-5.00

 

165,081

 

4.0

 

149,247

 

5.01-12.50

 

375,449

 

5.3

 

174,494

 

12.51-25.00

 

15,008

 

4.7

 

15,008

 

25.01-45.00

 

10,401

 

4.7

 

5,934

 

 

 

565,939

 

4.9

 

344,683


As of June 30, 2015, stock-based compensation of $747,826 remains unamortized and is expected to be amortized over the weighted average remaining period of 3 years.

The stock-based compensation expense related to option grants was $112,744 and $168,897 during the three and six months ended June 30, 2015, respectively, and $157,828 and $233,545 during the three and six months ended June 30, 2014, respectively.

Restricted Stock

As of June 30, 2015, the Company did not have any unissued restricted shares.  Stock based compensation expense related to restricted stock grants was $-0- for the three and six months ended June 30, 2015, and $438,010 and $876,020 for the three and six months ended June 30, 2014, respectively. 

Warrants

The following table summarizes the warrant activity for the six months ended June 30, 2015:

 

 

 

 

 

 

Weighted-Average

Remaining

Contractual Term

 

Aggregate

Intrinsic

Value

 

 

 

Weighted-Average

Exercise Price

 

 

 

Shares

 

 

 

Outstanding at January 1, 2015

220,913

 

$

5.00

 

1.7

 

$

1,325,478

Grants

-

 

 

 

 

 

 

$

-

Exercised

-

 

 

 

 

 

 

 

 

Forfeitures or expirations

-

 

 

 

 

 

 

 

 

Outstanding at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

220,913

 

$

5.00

 

1.2

 

$

110,457


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Stock option activity'', element us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 with value 4 years 73 days has label periodStartLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Stock option activity'', element us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 with value 4 years 73 days has label periodEndLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Stock option activity'', element us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 with value 4 years 328 days has label periodStartLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Stock option activity'', element us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 with value 4 years 328 days has label periodEndLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Stock option activity'', element us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 with value 3 years 255 days has label periodEndLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Warrant activity'', element bcyp:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm with value 1 year 255 days has label periodStartLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Warrant activity'', element bcyp:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm with value 1 year 255 days has label periodEndLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Warrant activity'', element bcyp:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm with value 1 year 73 days has label periodStartLabel, but the context is a duration, not an instant. It will be treated as if it had no label. In ''STOCKHOLDERS` EQUITY (Details) - Warrant activity'', element bcyp:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantsOutstandingWeightedAverageRemainingContractualTerm with value 1 year 73 days has label periodEndLabel, but the context is a duration, not an instant. 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STOCKHOLDERS` EQUITY (Details) - USD ($)
3 Months Ended 6 Months Ended
Jul. 02, 2015
Jun. 30, 2015
May. 31, 2015
Apr. 30, 2015
Mar. 03, 2015
Jan. 31, 2015
Dec. 31, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2015
Jun. 30, 2014
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Stockholders' Equity, Reverse Stock Split Effective June 26, 2015 at the state level and July 2, 2015 in the market, the Company filed an amendment to its Articles of Incorporation and effected a 50-for-1 reverse stock split of its issued and outstanding shares of common stock, $0.0001 par value                      
Common Stock, Par or Stated Value Per Share (in Dollars per share)   $ 0.0001         $ 0.0001 $ 0.0001   $ 0.0001 $ 0.0001  
Adjustments to Additional Paid in Capital, Other             $ 24,024          
Stock Issued During Period, Value, Issued for Services                     $ 128,401  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)                   126,500    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term                   4 years 328 days 4 years 73 days  
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)                   $ 6.88    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options   $ 747,826           $ 747,826   $ 747,826 $ 747,826  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition                     3 years  
Share-based Compensation                     $ 168,897 $ 1,109,565
Common Stock [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Common Stock, Par or Stated Value Per Share (in Dollars per share) $ 0.0001                      
Conversion of Stock, Shares Converted (in Shares) 250,666,631                      
Conversion of Stock, Shares Issued (in Shares) 5,013,366                      
Series A Convertible Preferred Stock [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Conversion of Stock, Shares Converted (in Shares)         161,827              
Conversion of Stock, Shares Issued (in Shares)         47,646              
Shares Issued, Price Per Share (in Dollars per share)         $ 3.395              
Employee Stock Option [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation               112,744 $ 157,828   168,897 233,545
Employee Stock Option [Member] | New Director [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)     20,000     7,500            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period           3 years            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term     10 years     10 years            
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)     $ 7.00     $ 5.00            
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Intrinsic Value     $ 128,115     $ 34,945            
Employee Stock Option [Member] | Director [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)       80,000                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term       10 years                
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)       $ 7.00                
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Intrinsic Value       $ 493,774                
Employee Stock Option [Member] | Consultants [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)   8,000 10,000                  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term   10 years 10 years                  
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)   $ 7.00 $ 7.00                  
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Intrinsic Value   $ 41,688 $ 52,049                  
Employee Stock Option [Member] | Employees [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)     1,000                  
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     3 years                  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term     10 years                  
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)     $ 6.50                  
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Intrinsic Value     $ 5,570                  
Restricted Stock [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Share-based Compensation               $ 0 $ 438,010   $ 0 $ 876,020
Investor Relations Services [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Stock Issued During Period, Shares, Issued for Services (in Shares)                     8,188  
Stock Issued During Period, Value, Issued for Services                     $ 60,000  
Legal Services [Member]                        
STOCKHOLDERS` EQUITY (Details) [Line Items]                        
Stock Issued During Period, Shares, Issued for Services (in Shares)                     11,273  
Stock Issued During Period, Value, Issued for Services                     $ 68,401