Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2016
Subsequent Events [Abstract]  
In January 2017, we signed a new lease for 5,248 square feet of office space within the same building of our current satellite office in Burlingame, California commencing February 2017. The lease has a five year term, and rental costs of approximately $17,000 per month.
Effective as of January 9, 2017, we entered into a separation agreement with our former Chief Executive Officer ("CEO") in connection with his resignation from the company. Under the separation agreement, the former CEO will receive a sum of $450,000, payable in six equal installments on January 20, 2017, April 1, 2017, July 1, 2017, October 1, 2017, January 1, 2018 and March 14, 2018; reimbursement of up to approximately $2,300 per month for premiums for continuation coverage for health, dental and vision insurance for our former CEO and his eligible dependents for a period of 12 months or such earlier date when he enrolls for similar coverage with a subsequent employer; acceleration of vesting of a portion of the unvested restricted stock units and unvested stock options; extension of time to exercise all vested stock options until July 9, 2017; participation in the 2016 bonus plan to be paid out in 2017; and approximately $23,000 in satisfaction of any pro-rated bonus for fiscal year 2017.
On February 22, 2017, we raised gross proceeds of $7.5 million in a private placement of units consisting of one share of our common stock and one warrant to purchase one share of common stock. The units were priced at $4.61, which was the average closing price of our common stock for the ten trading days ending February 16, 2017. The warrants have an exercise price of $8.25 per share and are exercisable for a period commencing six months and ending 2.5 years from the closing date.
Effective April 2017, we amended our Goleta office lease to expand our leased space by approximately 2,000 square feet and extend our lease term through July, 2018 with a one year renewal option. Rental costs, including base rent and operating expenses, are approximately $21,000 per month.
We evaluated subsequent events through March 30, 2017, the date of issuance of the consolidated financial statements for the year ended December 31, 2016.