Quarterly report pursuant to Section 13 or 15(d)

Capital Stock

Capital Stock
6 Months Ended
Jun. 30, 2016
Stockholders' Equity Note [Abstract]  
Capital Stock
Note 8 — Capital Stock
Preferred stock
The Company may issue shares of undesignated preferred stock in one or more series. The Board of Directors is authorized to establish and designate the different series and to fix and determine their voting powers and other special rights and qualifications. A total of 5,000,000 shares of preferred stock are authorized as of June 30, 2016 and December 31, 2015, 49,626 of which are designated as Series A Preferred Stock.
There were 49,626 shares of Series A Preferred Stock issued and outstanding on June 30, 2016 and December 31, 2015.
On January 2, 2015 the Company closed a sale of Series A Preferred Stock to Intel Corporation (the “Series A Purchaser”), pursuant to which we issued and sold an aggregate of 49,626 shares of the Company’s Series A Preferred Stock, at a purchase price of $500 per share, for an aggregate purchase price of $24,813,000. Each share of Series A Preferred Stock is convertible, at the option of the Series A holder, into 100 shares of the Company’s common stock (determined by dividing the Series A Original Issue Price of $500 by the Series A Conversion Price. The Series A Conversion Price is $5.00, subject to adjustment in the event of stock splits, dividends or other combinations).  
Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6% per year, compounded quarterly and payable in cash or in kind, at the Company’s sole discretion. As of June 30, 2016, total accrued and unpaid preferred dividends were $2,307,621. As of December 31, 2015, total accrued and unpaid preferred dividends were $1,514,081. There were no declared preferred dividends owed as of June 30, 2016 or December 31, 2015.
The Series A Purchaser has the right, but not the obligation, to participate in any proposed issuance by the Company of its securities, subject to certain exceptions and in such amount as is sufficient to maintain the Series A Purchaser’s ownership percentage in the Company, calculated immediately prior to such applicable financing, at a purchase price equal to the per share price of the Company’s securities in such applicable financing.
In connection with the Series A Private Placement, the Company entered into an investor’s rights agreement with the Series A Purchaser, pursuant to which the Company agreed to file a “resale” registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of all shares of common stock issuable upon conversion of the Series A Preferred Stock. The Company’s registration statement covering the resale of these shares was declared effective by the SEC on February 17, 2015.
Common Stock
The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001 as of June 30, 2016 and December 31, 2015. There were 16,155,529 and 16,087,951 shares of common stock issued and outstanding as of June 30, 2016 and December 31, 2015, respectively.