OPEXA THERAPEUTICS, INC., 10-Q filed on 5/14/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2013
May 10, 2013
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
OPXA 
 
Entity Registrant Name
OPEXA THERAPEUTICS, INC. 
 
Entity Central Index Key
0001069308 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Smaller Reporting Company 
 
Entity Common Stock, Shares Outstanding
 
8,070,130 
CONSOLIDATED BALANCE SHEETS (USD $)
Mar. 31, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 7,834,336 
$ 592,004 
Other current assets
1,166,430 
1,077,546 
Total current assets
9,000,766 
1,669,550 
Property & equipment, net of accumulated depreciation of $1,572,821 and $1,494,510, respectively
1,189,328 
1,265,041 
Restricted cash
500,000 
1,000,000 
Deferred financing costs, net of amortization of $111,578 and $58,639, respectively
158,540 
211,479 
Other long-term assets
104,027 
 
Total assets
10,952,661 
4,146,070 
Current liabilities:
 
 
Accounts payable
830,658 
412,096 
Accrued expenses
931,119 
473,879 
Deferred revenue
1,395,348 
 
Total current liabilities
3,157,125 
885,975 
Long term liabilities:
 
 
Deferred revenue
3,384,552 
 
Total liabilities
6,918,304 
1,262,738 
Commitments and contingencies
   
   
Stockholders' equity:
 
 
Preferred stock, no par value, 10,000,000 shares authorized, none issued and outstanding
   
   
Common stock, $0.01 par value, 100,000,000 shares authorized, 7,991,559 and 6,249,369 shares issued and outstanding
79,916 
62,494 
Additional paid in capital
117,743,543 
112,432,458 
Deficit accumulated during the development stage
(113,789,102)
(109,611,620)
Total stockholders' equity
4,034,357 
2,883,332 
Total liabilities and stockholders' equity
10,952,661 
4,146,070 
Unrelated Party
 
 
Long term liabilities:
 
 
Convertible debt, net of unamortized discount
301,410 
318,658 
Related Party Transactions
 
 
Long term liabilities:
 
 
Convertible debt, net of unamortized discount
$ 75,217 
$ 58,105 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Property & equipment, accumulated depreciation
$ 1,572,821 
$ 1,494,510 
Deferred financing costs, amortization
111,578 
58,639 
Preferred stock, no par value
   
   
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
   
   
Preferred stock, shares outstanding
   
   
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
7,991,559 
6,249,369 
Common stock, shares outstanding
7,991,559 
6,249,369 
Unrelated Party
 
 
Convertible debt, unamortized discount
2,253,590 
3,136,342 
Related Party Transactions
 
 
Convertible debt, unamortized discount
$ 554,783 
$ 571,895 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 122 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Revenue:
 
 
 
Option Revenue
$ 220,100 
 
$ 220,100 
Research and development
1,621,366 
1,490,097 
78,118,717 
General and administrative
1,102,435 
816,196 
31,220,051 
Depreciation and amortization
78,311 
67,355 
1,728,469 
Loss on disposal of assets
 
 
513,345 
Operating loss
(2,582,012)
(2,373,648)
(111,360,482)
Interest income
1,874 
136 
1,360,571 
Other income and expense, net
37,910 
 
699,056 
Gain on extinguishment of debt
 
 
1,612,440 
Gain on derivative instruments
 
 
1,941,826 
Gain on sale of technology
 
 
3,000,000 
Interest expense
(1,635,254)
(487)
(11,042,513)
Net loss
$ (4,177,482)
$ (2,373,999)
$ (113,789,102)
Basic and diluted loss per share
$ (0.58)
$ (0.41)
 
Weighted avg shares outstanding - Basic and diluted
7,239,102 
5,762,028 
 
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)
Total
Beneficial Conversion Feature
Warrants Attached to Debt
Cash
Common Stock
Common Stock
Cash
Additional Paid in Capital
Additional Paid in Capital
Beneficial Conversion Feature
Additional Paid in Capital
Warrants Attached to Debt
Additional Paid in Capital
Cash
Accumulated Deficit
Balances at December 31, 2012 at Dec. 31, 2012
$ 2,883,332 
 
 
 
$ 62,494 
 
$ 112,432,458 
 
 
 
$ (109,611,620)
Balances at December 31, 2012 (in shares) at Dec. 31, 2012
 
 
 
 
6,249,369 
 
 
 
 
 
 
Conversion of convertible notes (in shares)
365,263 
 
 
 
365,263 
 
 
 
 
 
 
Conversion of convertible notes
1,000,000 
 
 
 
3,652 
 
996,348 
 
 
 
 
Discount related to:
 
 
 
 
 
 
 
 
 
 
 
Discount
 
141,829 
195,969 
 
 
 
 
141,829 
195,969 
 
 
Shares issued for:
 
 
 
 
 
 
 
 
 
 
 
cash, net of offering costs (in shares)
 
 
 
 
 
1,376,927 
 
 
 
 
 
cash, net of offering costs
 
 
 
3,579,522 
 
13,770 
 
 
 
3,565,752 
 
Warrant expense
219,553 
 
 
 
 
 
219,553 
 
 
 
 
Option expense
191,634 
 
 
 
 
 
191,634 
 
 
 
 
Net loss
(4,177,482)
 
 
 
 
 
 
 
 
 
(4,177,482)
Balances at March 31, 2013 at Mar. 31, 2013
$ 4,034,357 
 
 
 
$ 79,916 
 
$ 117,743,543 
 
 
 
$ (113,789,102)
Balances at March 31, 2013 (in shares) at Mar. 31, 2013
 
 
 
 
7,991,559 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended 122 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Cash flows from operating activities
 
 
 
Net loss
$ (4,177,482)
$ (2,373,999)
$ (113,789,102)
Adjustments to reconcile net loss to net cash used in operating activities
 
 
 
Stock payable for acquired research and development
 
 
112,440 
Stock issued for acquired research and development
 
 
26,286,589 
Stock issued for services
 
 
2,061,743 
Stock issued for debt in excess of principal
 
 
109,070 
Amortization of discount on notes payable due to warrants and beneficial conversion feature
1,237,662 
 
8,094,392 
Loss/(Gain) on extinguishment of debt
 
 
(1,612,440)
Depreciation
78,311 
67,355 
1,728,469 
Amortization of debt financing costs
52,939 
 
635,956 
Option expense
411,187 
205,420 
16,677,120 
Loss/(Gain) on derivative instruments
 
 
(1,941,826)
Loss on disposition of fixed assets
 
 
513,345 
Changes in:
 
 
 
Deferred revenue
4,779,900 
 
4,779,900 
Other current assets
(115,589)
(880,983)
(1,268,642)
Accounts payable - third parties and related parties
418,562 
1,022,532 
257,911 
Accrued expenses
457,240 
(225,743)
1,062,478 
Other assets
(104,027)
 
(104,027)
Net cash provided by (used in) operating activities
3,038,703 
(2,185,418)
(56,396,624)
Cash flows from investing activities
 
 
 
Purchase of property & equipment
(2,598)
(245,841)
(2,224,797)
Restricted cash
500,000 
 
(500,000)
Net cash provided by (used in) investing activities
497,402 
(245,841)
(2,724,797)
Cash flows from financing activities
 
 
 
Common stock and warrants sold for cash, net of offering costs
3,623,738 
 
53,077,535 
Common stock repurchased and canceled
 
 
(325)
Proceeds from exercise of warrants and options
 
 
1,248,588 
Proceeds from third party debt
550,000 
 
13,288,184 
Proceeds from related party debt
100,000 
 
730,000 
Deferred financing and offering costs
(17,511)
 
(527,003)
Repayment on related party notes payable
(100,000)
 
(100,000)
Repayments on notes payable
(450,000)
 
(761,222)
Net cash provided by financing activities
3,706,227 
 
66,955,757 
Net change in cash and cash equivalents
7,242,332 
(2,431,259)
7,834,336 
Cash and cash equivalents at beginning of period
592,004 
7,109,215 
 
Cash and cash equivalents at end of period
7,834,336 
4,677,956 
7,834,336 
Cash paid for:
 
 
 
Income tax
   
   
   
Interest
18,647 
487 
173,756 
NON-CASH TRANSACTIONS
 
 
 
Issuance of common stock to Sportan shareholders
 
 
147,733 
Issuance of common stock for accrued interest
 
 
789,287 
Issuance of warrants to placement agent
 
 
37,453 
Conversion of notes payable to common stock
1,000,000 
 
8,709,980 
Conversion of accrued liabilities to common stock
 
 
197,176 
Conversion of accounts payable to note payable
 
 
93,364 
Discount on convertible notes relating to:
 
 
 
Warrants
195,969 
 
6,170,341 
Beneficial conversion feature
141,829 
 
3,444,982 
Stock attached to notes
 
 
1,287,440 
Fair value of derivative instrument
 
 
4,680,220 
Derivative reclassified to equity
 
 
2,349,266 
Unpaid additions to property and equipment
 
182,952 
 
Amortization of deferred offering costs to paid-in capital
$ 45,450 
 
$ 92,789 
Shares issued as deferred offering costs
1,234 
 
150,365 
Basis of Presentation
Basis of Presentation
Note 1.  Basis of Presentation

The accompanying interim unaudited consolidated financial statements of Opexa Therapeutics, Inc. (“Opexa” or the “Company”), a development stage company, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Opexa’s latest Annual Report filed with the SEC on Form 10-K.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.  Notes to the financial statements that would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year as reported in Form 10-K have been omitted.

The accompanying consolidated financial statements include the accounts of Opexa and its wholly owned subsidiary, Opexa Hong Kong Limited (“Opexa Hong Kong”). All intercompany balances and transactions have been eliminated in the consolidation.
Significant Accounting Polices
Significant Accounting Polices
Note 2.  Significant Accounting Polices

Revenue Recognition.  Opexa recognizes revenue in accordance with FASB ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) consideration is fixed or determinable; and (4) collectability is reasonably assured.

On February 4, 2013, Opexa entered into an Option and License Agreement (the “Merck Agreement”) with Ares Trading SA (“Merck”), a wholly owned subsidiary of Merck Serono S.A.  Pursuant to the terms, Merck has an option to acquire an exclusive, worldwide (excluding Japan) license of the Company’s Tcelna™ program for the treatment of multiple sclerosis (“MS”).  Tcelna is currently in a Phase IIb clinical trial in patients with Secondary Progressive MS (“SPMS”). The option may be exercised by Merck prior to or upon the Company’s completion of the Phase IIb Trial.

Opexa received an upfront payment of $5 million for granting the option. If the option is exercised, Merck would pay the Company an upfront license fee of $25 million unless Merck is unable to advance directly into a Phase III clinical trial of Tcelna for SPMS without a further Phase II clinical trial (as determined by Merck), in which event the upfront license fee would be $15 million. After exercising the option, Merck would be solely responsible for funding development, regulatory and commercialization activities for Tcelna in MS, although the Company would retain an option to co-fund certain development in exchange for increased royalty rates.  The Company would also retain rights to Tcelna in Japan, certain rights with respect to the manufacture of Tcelna, and rights outside of MS.

Opexa evaluated the Merck Agreement and determined that the $5 million upfront payment from Merck has “stand-alone value”. Opexa’s continuing performance obligations, in connection with the $5 million payment, include the execution and completion of the Phase IIb clinical trial in SPMS using commercially reasonable efforts at the Company’s own costs.  As a “stand-alone value” term in the Merck Agreement, the $5 million upfront payment is determined to be a single unit of accounting, and is recognized as revenue on a straight-line basis over the exclusive option period based on the expected completion term of the Phase IIb clinical trial in SPMS.  Opexa includes the unrecognized portion of the $5 million as deferred revenue on the consolidated balance sheets.

Cash and Cash Equivalents.  Opexa considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. Investments with maturities in excess of three months but less than one year are classified as short-term investments and are stated at fair market value.

Opexa primarily maintains cash balances on deposit in accounts at a U.S.-based financial institution.  The aggregate cash balance on deposit in these accounts is insured by the Federal Deposit Insurance Corporation up to $250,000.  Opexa’s cash balances on deposit in these accounts may, at times, exceed the federally insured limits.  Opexa has not experienced any losses in such accounts.

At March 31, 2013, Opexa invested approximately $7.7 million in a savings account.  For the three months ended March 31, 2013, the savings account recognized an average market yield of 0.25%.  Interest income of $1,874 was recognized for the three months ended March 31, 2013 in the consolidated statements of expenses.
Other Current Assets
Other Current Assets
Note 3.  Other Current Assets

Other current assets consisted of the following at March 31, 2013 and December 31, 2012:

Description
  
March 31,
2013
    
December 31,
2012
  
Supplies inventory
   $ 491,377     $ 604,179  
Deferred offering costs
     309,969       341,166  
Prepaid expenses
     365,084       132,201  
    $ 1,166,430     $ 1,077,546  

Supplies inventory at March 31, 2013 and December 31, 2012 includes reagents and supplies that will be used to manufacture Tcelna and placebo product in Opexa’s Phase IIb clinical study. Opexa expects to amortize these prepaid reagents and supplies to research and development costs in the consolidated statements of expenses over the course of the clinical study.

Deferred offering costs at March 31, 2013 and December 31, 2012 include costs incurred from third parties in connection with the implementation of an at-the-market program (“ATM Agreement”) in September 2012 pursuant to which Opexa may sell shares of its common stock from time to time depending upon market demand through a sales agent in transactions deemed to be an “at-the-market” offering as defined in Rule 415 of the Securities Act of 1933.  As of March 31, 2013, the remaining costs of $88,446 in connection with the implementation of the ATM Agreement remained capitalized and are included in other current assets in the consolidated balance sheets. Upon the sales of shares of common stock under the ATM Agreement, the remaining capitalized costs are offset against the proceeds of such sales of shares of common stock.

Deferred offering costs at March 31, 2013 also include costs incurred from third parties in connection with the implementation of a $1.5 million Purchase Agreement and a $15 million Purchase Agreement (collectively, the “Purchase Agreements”) in November 2012 pursuant to which Opexa has the right to sell to Lincoln Park Capital Fund, LLC (“Lincoln Park”) an aggregate of up to $16.5 million in shares of its common stock, subject to certain conditions and limitations.  As of March 31, 2013, the remaining costs of $221,523 in connection with the implementation of the Purchase Agreements remained capitalized and are included in other current assets in the consolidated balance sheets.  Upon the sales of shares of common stock under the Purchase Agreements, the remaining capitalized costs are offset against the proceeds of such sales of shares of common stock.

Prepaid expenses at March 31, 2013 include advance payments totaling $220,374 made to vendors and consultants for the conduct of the Phase IIb clinical trial in SPMS.
Restricted Cash
Restricted Cash
Note 4.  Restricted Cash

Pursuant to the July 2012 Note financing, $1.0 million of the gross proceeds were initially required to be maintained in a segregated account and subject to a deposit control agreement while the July 2012 Notes are outstanding.  Pursuant to a waiver executed by the holders of in excess of two-thirds (66-2/3%) of the principal amount of the outstanding July 2012 Notes and accepted by Opexa, the amount of the cash subject to the deposit control agreement was reduced to $500,000 on January 29, 2013.  In exchange for such waiver, the Company issued warrants to the holders of the July 2012 Notes to purchase an aggregate of 187,500 shares of the Company’s common stock (see Note 11).  As of March 31, 2013, the $500,000 balance in the controlled account is reported as restricted cash in the consolidated balance sheets.
Deferred Financing Costs
Deferred Financing Costs
Note 5.  Deferred Financing Costs

Deferred financing costs at March 31, 2013 consist of costs incurred from third parties in conjunction with the July 2012 Notes.  The costs in connection with the debt financing were capitalized and are amortized to interest expense over the term of the related debt. As of March 31, 2013, the unamortized deferred financing costs totaling $158,540 are reported as deferred financing costs in the consolidated balance sheets. During the quarter ended March 31, 2013, Opexa amortized $52,939 of deferred financing costs as interest expense.
Other Assets
Other Assets
Note 6.  Other Assets

Other long-term assets at March 31, 2013 consist of legal costs incurred from third parties in conjunction with the Merck Agreement.  These costs were capitalized and are amortized to general and administrative expenses on the consolidated statements of operations in conjunction with the recognition of revenue on a straight-line basis over the exclusive option period based on the term of the Phase IIb clinical trial in SPMS. During the quarter ended March 31, 2013, Opexa amortized $6,765 of legal costs to general and administrative expenses on the consolidated statements of operations.  Opexa included the current portion of the legal costs of $42,887 in other current assets on the consolidated balance sheets and the long term portion of the legal costs of $104,027 in other long-term assets on the consolidated balance sheets.
Convertible Promissory Notes
Convertible Promissory Notes
Note 7.  Convertible Promissory Notes

On January 23, 2013, Opexa closed a private offering consisting of convertible notes (the “January 2013 Notes”) and warrants to purchase shares of common stock for gross proceeds of $650,000 of which $100,000 was from a related party (see Note 8).  The January 2013 Notes are scheduled to mature on January 23, 2014 and accrue interest at the rate of 12% per annum, compounded annually.  The January 2013 Notes are convertible into common stock at the option of the investors at a price of $1.30 per share, subject to certain limitations.  The principal balance plus accrued interest is payable within five business days of the receipt by Opexa of an aggregate of at least $7.5 million in proceeds from the sale of its equity securities and/or as payments from one or more partners or potential partners in return for granting a license, other rights, or an option to license or otherwise acquire rights with respect to Tcelna.

The January 2013 Notes were analyzed at issuance for a beneficial conversion feature and Opexa concluded that a beneficial conversion feature exists. The beneficial conversion feature was measured using the commitment-date stock price and was determined to be $141,829 of which $21,820 was attributable to the related party.  Opexa also analyzed the Notes for derivative accounting consideration and determined that derivative accounting does not apply.

In connection with the issuance of the January 2013 Notes, Opexa also issued Series J warrants to purchase an aggregate of 243,750 shares of Opexa’s common stock (see Note 11), subject to certain limitations and adjustments.  The relative fair value of the warrant liabilities of $195,969, together with the beneficial conversion feature of $141,829 were recognized as a debt discount and are amortized to interest expense in the consolidated statements of expenses over the term of the January 2013 Notes using the effective interest method. 

On February 26, 2013, following the receipt of $3.25 million in gross proceeds during February 2013 from the sale of common stock and warrants to purchase shares of common stock, and following the receipt of the upfront payment of $5 million from Merck on February 20, 2013, Opexa paid principal and interest totaling $567,368 to holders of the January 2013 Notes, of which $100,000 was to a related party, and issued 77,034 shares of common stock to one holder of the January 2013 Notes who elected to convert the principal of $100,000. 

During the quarter ended March 31, 2013, the debt discount of $337,798 in connection with the January 2013 Notes was fully amortized to interest expense.

In February 2013, three of the third party holders of the July 2012 Notes elected to convert their principal amounts of $900,000 into shares of the Company’s Series A convertible preferred stock with further immediate conversion into 288,229 shares of the Company’s common stock.  As of March 31, 2013, an aggregate of $3,185,000 in principal amount of the July 2012 Notes to third parties and related parties is reported as long term liabilities in the consolidated balance sheets, of which $630,000 was issued to related parties (see Note 8).
 
The following table provides a summary of the changes in convertible debt – third parties, net of unamortized discount, during the quarter ended March 31, 2013:

Balance at December 31, 2012
   $ 318,658  
January 2013 Notes, face value
     550,000  
Discount on beneficial conversion feature of January 2013 Notes at issuance
     (120,009 )
Discount on fair value of Series J warrant liability at issuance
     (165,820 )
Repayment of January 23, 2013 Notes
     (450,000 )
Conversion of January 23, 2013 Notes into common stock
     (100,000 )
Conversion of July 25, 2012 Notes into common stock
     (900,000 )
Amortization of debt discount to interest expense through March 31, 2013
     1,168,581  
Balance at March 31, 2013
   $ 301,410  
Related Party Transactions
Related Party Transactions
Note 8.  Related Party Transactions

Investors in the January 2013 Notes offering included one member of Opexa’s Board of Directors who was issued a note with a principal amount of $100,000 (see Note 7).

The following table provides a summary of the changes in convertible debt – related parties, net of unamortized discount, during the quarter ended March 31, 2013:

Balance at December 31, 2012
   $ 58,105  
January 2013 Notes, face value
     100,000  
Discount on beneficial conversion feature of January 2013 Notes at issuance
     (21,820 )
Discount on fair value of Series J warrant liability at issuance
     (30,149 )
Repayment of January 23, 2013 Notes
     (100,000 )
Amortization of debt discount to interest expense through March 31, 2013
     69,081  
Balance at March 31, 2013
   $ 75,217  

For the quarter ended March 31, 2013, cash compensation totaling $25,000 earned by Director David E. Jorden for his service as Opexa’s Acting Chief Financial Officer is reported in general and administrative expense in the consolidated statements of expenses.  Concurrent with the appointment of Karthik Radhakrishnan as Chief Financial Officer on March 29, 2013, Mr. Jorden resigned as the Company’s Acting Chief Financial Officer but will continue in his role as director on Opexa’s Board. As of March 31, 2013, cash compensation totaling $8,333 was due to Mr. Jorden and is included in accounts payable in the consolidated balance sheets.
Equity
Equity
Note 9.  Equity

For the quarter ended March 31, 2013, equity related transactions were as follows:
 
●
In January 2013, 125,000 shares of common stock were sold and 975 additional commitment shares were issued to Lincoln Park under the $1.5 million purchase agreement for net proceeds of $142,400.
   
●
365,263 shares of common stock were issued in connection with the conversion of the January 2013 and July 2012 Notes (see Note 7).
   
●
In February 2013, Opexa sold an aggregate of 167,618 shares of common stock under the ATM Agreement for gross proceeds of $536,417.
   
●
On February 11, 2013, Opexa sold an aggregate of 1,083,334 units in a registered offering, with each unit consisting of one share of common stock and a warrant to purchase half (0.5) a share of common stock, at a price of $3.00 per unit, for gross proceeds of $3,250,002. The shares of common stock and warrants were immediately separable and were issued separately such that no units were issued. The warrants are exercisable immediately upon issuance, have a four-year term and an exercise price of $3.00 per share. A fee of 6.0% of the gross proceeds was paid to the placement agent.
 
For the quarter ended March 31, 2013, $350,530 was netted against additional paid in capital as stock offering costs.
Stock-Based Compensation
Stock-Based Compensation
Note 10.  Stock-Based Compensation

Stock Options
 
The 2010 Stock Incentive Plan (the “2010 Plan”) provides for the grant of equity incentive awards to employees, directors and consultants of Opexa in the form of incentive stock options or nonqualified stock options, as well as restricted stock, stock appreciation rights, restricted stock units and performance awards that may be settled in cash, stock or other property.  The 2010 Plan is the successor to and continuation of Opexa’s June 2004 Compensatory Stock Option Plan (the “2004 Plan”). A total of 625,000 shares of common stock are authorized to be issued for awards made under the 2010 Plan through September 2020, plus (i) the number of shares subject to stock options outstanding under the 2004 Plan that are forfeited or terminate prior to exercise and would otherwise be returned to the share reserves under the 2004 Plan and (ii) any reserved shares under the 2004 Plan that were not issued or subject to outstanding grants.  In addition, shares subject to awards granted under the 2010 Plan that terminate or expire before being exercised or settled will become available for grant under the 2010 Plan. As of March 31, 2013, options to purchase an aggregate of 903,289 shares were issued and outstanding.

Opexa accounts for share-based compensation, including options and nonvested shares, according to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, "Share Based Payment.” During the three months ended March 31, 2013, Opexa recognized option expense of $191,634 which includes the related expense for the options that are expected to vest based on achievement of their related performance conditions (see below). Unamortized stock compensation expense as of March 31, 2013 amounted to $1,126,780.

Stock Option Activity
     
         A summary of stock option activity for the three months ended March 31, 2013 is presented below:

   
Number of
Shares
    
Wtd. Avg.
Exercise Price
    
Wtd. Avg.
Remaining
Contract Term
(# years)
    
Intrinsic
Value
  
Outstanding at January 1, 2013
     824,620     $ 5.54              
Granted
     125,000       2.34              
Exercised
     -       -              
Forfeited and canceled
     (46,331 )     4.73              
                             
Outstanding at March 31, 2013
     903,289     $ 5.14       7.7     $ 104,769  
                                 
Exercisable at March 31, 2013
     485,124     $ 6.63       6.5     $ 100,730  

Option awards are granted with an exercise price equal to the market price of Opexa’s stock at the date of issuance, generally have a ten-year life, and have various vesting dates that range from no vesting or partial vesting upon date of grant to full vesting on a specified date. Opexa estimates the fair value of stock options using the Black-Scholes option-pricing model and records the compensation expense ratably over the service period.

During the three months ended March 31, 2013, an option to purchase an aggregate of 125,000 shares was granted to an employee at an exercise price of $2.34.  This option has a term of ten years and has a vesting schedule of three years. Fair value of $285,226 was calculated using the Black-Scholes option-pricing model.  Variables used in the Black-Scholes option-pricing model for the option issued to an employee during the three months ended March 31, 2013 include (1) discount rate of 1.87%, (2) expected term of 5.25 years, (3) expected volatility of 194% and (4) zero expected dividends.

During the three months ended March 31, 2013, options to purchase 46,331 shares were forfeited and cancelled.
 
Warrant Activity

A summary of warrant activity for the three months ended March 31, 2013 is presented below:

   
Number of
Shares
    
Wtd. Avg.
Exercise Price
    
Wtd. Avg.
Remaining
Contract Term
(# years)
    
Intrinsic
Value
  
Outstanding at January 1, 2013
     3,579,087     $ 5.64              
Granted
     972,918       2.21              
Exercised
     -       -              
Forfeited and canceled
     (1,129,359 )     7.65              
                             
Outstanding at March 31, 2013
     3,422,646     $ 4.01       3.5     $ 480,000  
                                 
Exercisable at March 31, 2013
     3,422,646     $ 4.01       3.5     $ 480,000  
 
In connection with the January 2013 Notes (see Note 7), investors were issued five-year warrants to purchase up to an aggregate of 243,750 shares of common stock, at an exercise price of $1.24 per share. The estimated relative fair value of the investor warrants was $195,969 and was calculated using the Black-Scholes valuation model. The following assumptions were used: (1) no expected dividends, (2) risk free interest rate of 0.76%, (3) expected volatility of 191% and (4) expected life of five years. Opexa can redeem the warrants at $0.01 per share if the Company’s common stock closes at or above $10.00 per share for 20 consecutive trading days.

Pursuant to a waiver executed by the holders of in excess of two-thirds (66-2/3%) of the principal amount of the outstanding July 2012 Notes and accepted by Opexa, the amount of the cash subject to the deposit control agreement was reduced to $500,000 on January 29, 2013.  In exchange for such waiver, the Company issued warrants to the holders of the July 2012 Notes to purchase an aggregate of 187,500 shares of the Company’s common stock.  The warrants have an exercise price of $1.21 per share and a five-year term.  The estimated fair value of the warrants was $219,553 and was calculated using the Black-Scholes valuation model.  The following assumptions were used: (1) no expected dividends, (2) risk free interest rate of 0.90%, (3) expected volatility of 191% and (4) expected life of five years.  Opexa can redeem the warrants at $0.01 per underlying share of common stock if the common stock closes at or above $10.00 per share for 20 consecutive trading days.

In connection with the February 2013 registered offering (See Note 10), Opexa issued warrants to the investors on February 11, 2013 to purchase an aggregate of 541,668 shares of common stock at an exercise price of $3.00 per share. These warrants have a term of four years and were immediately exercisable.
Subsequent Events
Subsequent Events
Note 11.  Subsequent Events

Subsequent to March 31, 2013, Opexa granted its directors, officers and employees options to purchase an aggregate of 263,572 shares of common stock with a fair value of $451,915 at an exercise price of $1.75.

Subsequent to March 31, 2013, Opexa issued to its officers an aggregate of 78,571 shares of restricted common stock with a fair value of $1.75 per share.
Other Current Assets (Tables)
Other Current Assets
Other current assets consisted of the following at March 31, 2013 and December 31, 2012:

Description
  
March 31,
2013
    
December 31,
2012
  
Supplies inventory
   $ 491,377     $ 604,179  
Deferred offering costs
     309,969       341,166  
Prepaid expenses
     365,084       132,201  
    $ 1,166,430     $ 1,077,546  
Related Party Transactions (Tables)
Summary of Changes in Convertible Debt - Third Parties, Net of Unamortized Discount 
The following table provides a summary of the changes in convertible debt – third parties, net of unamortized discount, during the quarter ended March 31, 2013:

Balance at December 31, 2012
   $ 318,658  
January 2013 Notes, face value
     550,000  
Discount on beneficial conversion feature of January 2013 Notes at issuance
     (120,009 )
Discount on fair value of Series J warrant liability at issuance
     (165,820 )
Repayment of January 23, 2013 Notes
     (450,000 )
Conversion of January 23, 2013 Notes into common stock
     (100,000 )
Conversion of July 25, 2012 Notes into common stock
     (900,000 )
Amortization of debt discount to interest expense through March 31, 2013
     1,168,581  
Balance at March 31, 2013
   $ 301,410  
Summary of Changes in Convertible Debt - Third Parties, Net of Unamortized Discount 
The following table provides a summary of the changes in convertible debt – related parties, net of unamortized discount, during the quarter ended March 31, 2013:

Balance at December 31, 2012
   $ 58,105  
January 2013 Notes, face value
     100,000  
Discount on beneficial conversion feature of January 2013 Notes at issuance
     (21,820 )
Discount on fair value of Series J warrant liability at issuance
     (30,149 )
Repayment of January 23, 2013 Notes
     (100,000 )
Amortization of debt discount to interest expense through March 31, 2013
     69,081  
Balance at March 31, 2013
   $ 75,217  
Stock-Based Compensation (Tables)
Stock Option Activity 
A summary of stock option activity for the three months ended March 31, 2013 is presented below:

   
Number of
Shares
    
Wtd. Avg.
Exercise Price
    
Wtd. Avg.
Remaining
Contract Term
(# years)
    
Intrinsic
Value
  
Outstanding at January 1, 2013
     824,620     $ 5.54              
Granted
     125,000       2.34              
Exercised
     -       -              
Forfeited and canceled
     (46,331 )     4.73              
                             
Outstanding at March 31, 2013
     903,289     $ 5.14       7.7     $ 104,769  
                                 
Exercisable at March 31, 2013
     485,124     $ 6.63       6.5     $ 100,730  
Warrant Activity 
A summary of warrant activity for the three months ended March 31, 2013 is presented below:

   
Number of
Shares
    
Wtd. Avg.
Exercise Price
    
Wtd. Avg.
Remaining
Contract Term
(# years)
    
Intrinsic
Value
  
Outstanding at January 1, 2013
     3,579,087     $ 5.64              
Granted
     972,918       2.21              
Exercised
     -       -              
Forfeited and canceled
     (1,129,359 )     7.65              
                             
Outstanding at March 31, 2013
     3,422,646     $ 4.01       3.5     $ 480,000  
                                 
Exercisable at March 31, 2013
     3,422,646     $ 4.01       3.5     $ 480,000  
Significant Accounting Policies - Additional Information (Detail) (USD $)
3 Months Ended 122 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Summary Of Significant Accounting Policies [Line Items]
 
 
Option and License Agreement, upfront payment recognized
$ 220,100 
$ 220,100 
Investment in savings account
7,700,000 
7,700,000 
Percentage of interest recognized from savings account investment
0.25% 
0.25% 
Interest income from savings account investment
1,874 
 
Maximum
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Deposit insured by the Federal Deposit Insurance Corporation
250,000 
250,000 
Option and License Agreement
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Option and License Agreement, upfront payment received
5,000,000 
5,000,000 
Licensing milestone
25,000,000 
25,000,000 
Option and License Agreement, upfront payment recognized
5,000,000 
 
Option and License Agreement, deferred revenue
5,000,000 
5,000,000 
Option and License Agreement |
Licensing fee if Merck is unable to advance directly to Phase III trials of Tcelna
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Licensing milestone
$ 15,000,000 
$ 15,000,000 
Other Current Assets (Detail) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Other Assets, Current [Line Items]
 
 
Supplies inventory
$ 491,377 
$ 604,179 
Deferred offering costs
309,969 
341,166 
Prepaid expenses
365,084 
132,201 
Other current assets
$ 1,166,430 
$ 1,077,546 
Other Current Assets - Additional Information (Detail) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
$1.5 Million Purchase Agreement with Lincoln Park
Jan. 31, 2013
$1.5 Million Purchase Agreement with Lincoln Park
Mar. 31, 2013
$15 Million Purchase Agreement with Lincoln Park
Mar. 31, 2013
ATM Agreement
Third Party
Mar. 31, 2013
Purchase Agreement
Other Current Assets
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
 
 
 
 
 
 
 
Implementation cost
$ 309,969 
$ 341,166 
 
 
 
$ 88,446 
$ 221,523 
Purchase agreement, aggregate shares opexa has right to sell
16,500,000 
 
1,500,000 
1,500,000 
15,000,000 
 
 
Advance payments to vendors and consultants
$ 220,374 
 
 
 
 
 
 
Restricted Cash - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2013
Jan. 31, 2013
Dec. 31, 2012
Restricted Cash and Cash Equivalents Items [Line Items]
 
 
 
Restricted cash
$ 500,000 
 
$ 1,000,000 
Convertible secured promissory notes, percentage of principal amount outstanding
66.67% 
 
 
Warrants issued to purchase common stock
187,500 
243,750 
 
Deferred Financing Costs - Additional Information (Detail) (USD $)
3 Months Ended 122 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Dec. 31, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
 
 
 
Deferred financing costs
$ 158,540 
$ 158,540 
$ 211,479 
Deferred financing costs, amortized
$ 52,939 
$ 635,956 
 
Other Assets - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2013
General and Administrative Expense
 
Schedule of Other Assets [Line Items]
 
Legal costs, amortized
$ 6,765 
Other Current Assets
 
Schedule of Other Assets [Line Items]
 
Legal costs, current
42,887 
Other Assets
 
Schedule of Other Assets [Line Items]
 
Legal costs, long-term
$ 104,027 
Convertible Promissory Notes - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 122 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended
Jan. 31, 2013
Mar. 31, 2013
Mar. 31, 2013
Mar. 31, 2013
July 2012 Notes
Mar. 31, 2013
Common Stock
Feb. 28, 2013
January 2013 Notes
Mar. 31, 2013
January 2013 Notes
Feb. 28, 2013
January 2013 Notes
Common Stock
Mar. 31, 2013
Option and License Agreement
Mar. 31, 2013
Related Party
Mar. 31, 2013
Related Party Transactions
Mar. 31, 2013
Related Party Transactions
July 2012 Notes
Feb. 28, 2013
Convertible debt
Jan. 23, 2013
Convertible debt
Feb. 28, 2013
Convertible debt
Common Stock
Jan. 23, 2013
Convertible debt
Related Party
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross proceed from the issuance of a convertible note
 
$ 550,000 
$ 13,288,184 
 
 
 
 
 
 
 
 
 
 
$ 650,000 
 
$ 100,000 
Debt Instrument, Maturity Date
 
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 23, 2014 
 
 
Convertible debt instrument, effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
12.00% 
 
 
Convertible debt, conversion price
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1.30 
 
 
Minimum receipt of proceeds from sale of equity securities and/or as payments from partners to pay any remaining balance of note payable
 
 
 
 
 
 
 
 
 
 
 
 
 
7,500,000 
 
 
Number of business days to pay remaining convertible debts
 
 
 
 
 
 
 
 
 
 
 
 
 
5 days 
 
 
Debt instrument, beneficial conversion feature
141,829 
141,829 
 
 
 
 
 
 
 
 
21,820 
 
 
 
 
 
Discount on warrant
195,969 
195,969 
6,170,341 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants issued
243,750 
187,500 
187,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross proceeds from sales of common stock and warrants to purchase common stock
 
3,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option and License Agreement, upfront payment received
 
 
 
 
 
 
 
 
5,000,000 
 
 
 
 
 
 
 
Principal and interest paid
 
567,368 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
Common shares issued, note conversion
 
365,263 
 
 
365,263 
 
 
77,034 
 
 
 
 
 
 
 
 
Convertible notes, principal amount converted
 
 
 
(900,000)
 
100,000 
 
 
 
 
 
 
900,000 
 
 
 
Convertible notes, amortized debt discount
 
1,237,662 
8,094,392 
 
 
 
337,798 
 
 
 
 
 
 
 
 
 
Common shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
288,229 
 
Long term liabilities
 
 
 
$ 3,185,000 
 
 
 
 
 
 
 
$ 630,000 
 
 
 
 
Summary of Changes in Convertible Debt Third Parties Net of Unamortized Discount (Detail) (USD $)
3 Months Ended 122 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Debt Instrument [Line Items]
 
 
Balance at December 31, 2012
$ 318,658 
 
January 2013 Notes, face value
550,000 
 
Repayment of January 23, 2013 Notes
(450,000)
 
Amortization of debt discount to interest expense through March 31, 2013
(1,237,662)
(8,094,392)
Balance at March 31, 2013
301,410 
301,410 
Beneficial Conversion Feature
 
 
Debt Instrument [Line Items]
 
 
Discount on convertible debt
(120,009)
(120,009)
Warrants Attached to Debt
 
 
Debt Instrument [Line Items]
 
 
Discount on convertible debt
(165,820)
(165,820)
Convertible debt
 
 
Debt Instrument [Line Items]
 
 
Amortization of debt discount to interest expense through March 31, 2013
1,168,581 
 
January 2013 Notes
 
 
Debt Instrument [Line Items]
 
 
Principal amount of Notes converted to common stock
(100,000)
 
July 2012 Notes
 
 
Debt Instrument [Line Items]
 
 
Principal amount of Notes converted to common stock
$ (900,000)
 
Related Party Transactions - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2013
Jan. 31, 2013
Related Party Transactions
Related Party Transaction [Line Items]
 
 
Convertible secured promissory notes, principal amount
 
$ 100,000 
Annual compensation to Acting Chief Financial Officer
25,000 
 
Accounts payable-related parties
$ 8,333 
 
Equity - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 122 Months Ended 1 Months Ended 1 Months Ended
Feb. 28, 2013
Feb. 11, 2013
Jan. 23, 2013
Jan. 29, 2013
Mar. 31, 2013
Mar. 31, 2013
Feb. 28, 2013
ATM Agreement
Mar. 31, 2013
$1.5 Million Purchase Agreement with Lincoln Park
Jan. 31, 2013
$1.5 Million Purchase Agreement with Lincoln Park
Jan. 31, 2013
$1.5 Million Purchase Agreement with Lincoln Park
Issuance of Equity
Equity Note [Line Items]
 
 
 
 
 
 
 
 
 
 
Common shares issued
 
 
 
 
 
 
167,618 
 
 
125,000 
Purchase agreement, aggregate shares opexa has right to sell
 
 
 
 
$ 16,500,000 
$ 16,500,000 
 
$ 1,500,000 
$ 1,500,000 
 
Net proceeds from shares sold
 
 
 
 
 
 
536,417 
 
 
142,400 
Common stock issued as fee
 
 
 
 
 
 
 
 
 
975 
Common shares issued, note conversion
 
 
 
 
365,263 
 
 
 
 
 
Common shares issued
 
1,083,334 
 
 
 
 
 
 
 
 
Warrants settlement ratio
 
Each unit consisting of one share of common stock and a warrant to purchase half (0.5) a share of common stock 
 
 
 
 
 
 
 
 
Share issue to private offering, price per share
 
$ 3.00 
 
 
 
 
 
 
 
 
Proceeds from issuance of common stocks and warrants, net
 
3,250,002 
 
 
3,623,738 
53,077,535 
 
 
 
 
Warrant term
4 years 
4 years 
5 years 
5 years 
 
 
 
 
 
 
Warrant exercise price
$ 3.00 
$ 3.00 
$ 1.24 
$ 1.21 
 
 
 
 
 
 
Commission rate on gross proceed for common stock sold
 
6.00% 
 
 
 
 
 
 
 
 
Amount netted against additional paid in capital as stock offering costs
 
 
 
 
$ 350,530 
 
 
 
 
 
Stock-Based Compensation - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended
Feb. 28, 2013
Feb. 11, 2013
Jan. 23, 2013
Jan. 29, 2013
Mar. 31, 2013
Jan. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share based compensation, common stock shares issued and outstanding
 
 
 
 
903,289 
 
824,620 
Option expense recognized
 
 
 
 
$ 191,634 
 
 
Unamortized stock compensation expense
 
 
 
 
1,126,780 
 
 
Number of Shares, Granted
 
 
 
 
125,000 
 
 
Number of Shares, Forfeited and canceled
 
 
 
 
46,331 
 
 
Warrant term
4 years 
4 years 
5 years 
5 years 
 
 
 
Warrants issued to purchase common stock
 
 
 
 
187,500 
243,750 
 
Warrant exercise price
$ 3.00 
$ 3.00 
$ 1.24 
$ 1.21 
 
 
 
Warrant redemption price per share
 
 
$ 0.01 
$ 0.01 
 
 
 
Terms for warrant redeem
 
 
Opexa can redeem the warrants at $0.01 per share if the Company's common stock closes at or above $10.00 per share for 20 consecutive trading days. 
The warrants at $0.01 per underlying share of common stock if the common stock closes at or above $10.00 per share for 20 consecutive trading days. 
 
 
 
Number of common stock to be issued upon exercise of warrant
541,668 
 
 
187,500 
 
 
 
Maximum
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Warrants issued to purchase common stock
 
 
243,750 
 
 
 
 
Warrants Attached to Debt
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Discount rate
 
 
0.76% 
 
 
 
 
Expected life
 
 
5 years 
 
 
 
 
Expected volatility rate
 
 
191.00% 
 
 
 
 
Expected dividends
 
 
0 
 
 
 
 
Estimated fair value of warrants
 
 
195,969 
 
 
 
 
Common Stock Warrants issued to Release a Claim on Cash
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Discount rate
 
 
 
 
0.90% 
 
 
Expected life
 
 
 
 
5 years 
 
 
Expected volatility rate
 
 
 
 
191.00% 
 
 
Estimated fair value of warrants
 
 
 
 
219,553 
 
 
Stock Options
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Stock option, term
 
 
 
 
10 years 
 
 
Employee Option
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Stock option, term
 
 
 
 
10 years 
 
 
Number of Shares, Granted
 
 
 
 
125,000 
 
 
Weighted average exercise price, Granted
 
 
 
 
$ 2.34 
 
 
Vesting period
 
 
 
 
3 years 
 
 
Fair value of stock granted during period
 
 
 
 
285,226 
 
 
Discount rate
 
 
 
 
1.87% 
 
 
Expected life
 
 
 
 
5 years 3 months 
 
 
Expected volatility rate
 
 
 
 
194.00% 
 
 
Expected dividends
 
 
 
 
$ 0 
 
 
2010 Plan
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Stock based compensation, common stock shares authorized
 
 
 
 
625,000 
 
 
Share based compensation, common stock shares issued and outstanding
 
 
 
 
903,289 
 
 
Stock Option Activity (Detail) (USD $)
3 Months Ended
Mar. 31, 2013
Number of Shares
 
Number of Shares, Outstanding at beginning of period
824,620 
Number of Shares, Granted
125,000 
Number of Shares, Exercised
   
Number of Shares, Forfeited and canceled
(46,331)
Number of Shares, Outstanding at end of period
903,289 
Number of Shares, Exercisable at end of period
485,124 
Weighted average exercise price
 
Weighted average exercise price, Outstanding at beginning of period
$ 5.54 
Weighted average exercise price, Granted
$ 2.34 
Weighted average exercise price, Exercised
   
Weighted average exercise price, Forfeited and canceled
$ 4.73 
Weighted average exercise price, Outstanding at end of period
$ 5.14 
Weighted average exercise price, Exercisable at end of period
$ 6.63 
Weighted average remaining contract term
 
Weighted average remaining contract term, Outstanding at end of period
7 years 8 months 12 days 
Weighted average remaining contract term, Exercisable at end of period
6 years 6 months 
Intrinsic Value
 
Intrinsic Value, Outstanding at end of period
$ 104,769 
Intrinsic Value, Exercisable at end of period
$ 100,730 
Warrant Activity (Detail) (Warrants Attached to Debt, USD $)
3 Months Ended
Mar. 31, 2013
Warrants Attached to Debt
 
Number of Shares
 
Number of Shares, Outstanding at beginning of period
3,579,087 
Number of Shares, Granted
972,918 
Number of Shares, Exercised
   
Number of Shares, Forfeited and canceled
(1,129,359)
Number of Shares, Outstanding at end of period
3,422,646 
Number of Shares, Exercisable at end of period
3,422,646 
Weighted average exercise price
 
Weighted average exercise price, Outstanding at beginning of period
$ 5.64 
Weighted average exercise price, Granted
$ 2.21 
Weighted average exercise price, Exercised
   
Weighted average exercise price, Forfeited and canceled
$ 7.65 
Weighted average exercise price, Outstanding at end of period
$ 4.01 
Weighted average exercise price, Exercisable at end of period
$ 4.01 
Weighted average remaining contract term
 
Weighted average remaining contract term, Outstanding at end of period
3 years 6 months 
Weighted average remaining contract term, Exercisable at end of period
3 years 6 months 
Intrinsic Value
 
Intrinsic Value, Outstanding at end of period
$ 480,000 
Intrinsic Value, Exercisable at end of the period
$ 480,000 
Subsequent Events- Additional Information (Detail) (USD $)
3 Months Ended 1 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Stock Awards Issued
Subsequent Event [Line Items]
 
 
Options granted, shares
125,000 
263,572 
Options granted, fair value
 
$ 451,915 
Options granted, weighted average exercise price
$ 2.34 
$ 1.75 
Restricted stock issued, shares
 
78,571 
Restricted stock issued, fair value per-share
 
$ 1.75