Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
3 Months Ended
Mar. 31, 2017
Stockholders Equity Note [Abstract]  
Stockholders Equity Note Disclosure [Text Block]
9.
Stockholders’ Equity
 
Private Placement
 
On February 27, 2017, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company agreed to issue and sell to the investors in a private placement (the “Private Placement”) an aggregate of 5,540,000 shares of the Company’s common stock at a purchase price of $0.50 per share. The Company closed the Private Placement on the same day as it entered into the Securities Purchase Agreement and received aggregate gross proceeds of $2,770,000. In connection with the Private Placement, the Company paid an aggregate of $196,000 of financial advisory fees and $40,000 of administrative fees, which were recorded as a reduction of additional paid-in capital.
 
Stock-Based Compensation
 
During the three months ended March 31, 2017 and 2016, the Company recognized $491,000 and $1.7 million of stock-based compensation expense, of which, $11,000 and $82,000 is included in cost of revenues and $480,000 and $1.6 million is included in selling, general and administrative expenses in the condensed consolidated statements of operations, respectively. As of March 31, 2017, there was $1.9 million of unrecognized stock-based compensation expense which will be amortized over a weighted average period of 1.2 years.