Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Summary of Share Based Fair Value Assumptions

The fair value of options granted were estimated using the Black-Scholes-Merton option pricing model based on the assumptions in the table below:

Year ended December 31,	2013		2012
Expected dividend yield		0%		0%
Expected volatility		62%-63%		55% - 67%
Risk-free interest rate		1.64% - 1.98%		0.4% - 3.7%
Expected life (in years)		5.7 – 6.1		2.9 - 10.0

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity, including grants to non-employees, for the years ended December 31, 2013 and 2012:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)
Options outstanding at December 31, 2011		4,164,090	$	0.48		7.58
Granted		11,769,866		0.07
Cancelled		(2,962,834)		0.14
Exercised		(48,356)		0.07
Options outstanding at December 31, 2012		12,922,766	$	0.08		8.70
Options assumed through merger with SafeStitch		3,547,750		0.75
Granted		3,015,696		0.44
Cancelled		(30,643)		0.08
Exercised		(341,133)		0.16
Options outstanding at December 31, 2013		19,114,436	$	0.26		7.95

Summary of Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)
Exercisable at December 31, 2013		10,031,605	$	0.30		7.23
Vested or expected to vest at December 31, 2013		18,788,438	$	0.26		7.94

Summary of Unvested Stock Option Activity

The following table summarizes the unvested stock option activity:

			Weighted-Average
	Number of Shares		Fair Value
Unvested options at December 31, 2011		1,683,733	$	0.33
Granted		11,769,866		0.07
Vested		(3,612,025)		0.14
Forfeited		(1,303,895)		0.23
Unvested options at December 31, 2012		8,537,679	$	0.08
Unvested options assumed through merger with SafeStitch		1,116,000		0.49
Granted		3,015,696		0.19
Vested		(3,559,092)		0.25
Forfeited		(27,452)		0.04
Unvested options at December 31, 2013		9,082,831	$	0.22