Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.10.0.1
Equity
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Equity

Note 4 - Equity 

 

In March 2018, the Company sold an aggregate of 30,237,894 units consisting of an aggregate of 30,237,894 shares of common stock, 7,559,445 series A warrants and 22,678,393 series B warrants, with each series A warrant exercisable for one share of Common Stock at an exercise price of $0.60 per share and each series B warrant exercisable for one share of Common Stock at an exercise price of $0.70 per share, resulting in gross proceeds to Actinium of approximately $15.1 million (each unit was sold at $0.50 per unit), and net proceeds of approximately $13.8 million after deducting expenses relating to dealer-manager fees and other offering expenses. In the event all of the warrants from the March 2018 offering were to be exercised, estimated gross proceeds would be $20.4 million before deducting any dealer-manager fees or expenses.

 

Stock Options

 

During the six months ended June 30, 2018, the Company granted its employees 1,267,500 options to purchase the Company’s common stock with an exercise price ranging from $0.34 to $0.72 per share, a term of 10 years, and a vesting period of 4 years. The options have an aggregated fair value of approximately $0.5 million that was calculated using the Black-Scholes option-pricing model. Variables used in the Black-Scholes option-pricing model include: (1) discount rate range from 2.34% to 2.94% (2) expected life of 6 years, (3) expected volatility range from 79.1% to 80.4%, and (4) no expected dividends. During the six months ended June 30, 2018, options to purchase 641,350 common shares were cancelled upon the termination of employment for several employees.

 

The fair values of all options issued and outstanding are being amortized over their respective vesting periods. The unrecognized compensation expense at June 30, 2018 was approximately $2.5 million. During the six months ended June 30, 2018 and 2017, the Company recorded compensation expense related to stock options of approximately $0.9 million and $1.9 million, respectively.

 

Warrants

 

Following is a summary of warrant activities for the six months ended June 30, 2018:

 

    Number of Shares     Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term
(in years)
    Aggregate
Intrinsic
Value
 
Outstanding, December 31, 2017     25,662,340       1.89       3.62       995,373  
Granted     30,354,770       0.67       2.14          
Exercised     (1,500 )     0.60                  
Expired     -                          
Outstanding, June 30, 2018     56,015,610       1.23       2.47       1,280,523  
                                 
Exercisable, June 30, 2018     55,722,173       1.21       2.46       1,254,273  

 

In March 2018, the Company sold an aggregate of 30,237,894 units consisting of 30,237,894 shares of common stock, 7,559,445 series A warrants and 22,678,393 series B warrants. The series A warrants are exercisable for a period of 1 year at an exercise price of $0.60 per share. The transaction date relative fair value of the series A warrants of $0.5 million was determined utilizing the Black-Scholes option pricing model. Variables used in the Black-Scholes option-pricing model include (1) discount rate of 2.06%, (2) expected term of 1 years, (3) expected volatility of 72%, and (4) no expected dividends. The series B warrants are exercisable for a period of 2.5 years at an exercise price of $0.70 per share. The transaction date relative fair value of the series B warrants of $2.5 million was determined utilizing the Black-Scholes option pricing model. Variables used in the Black-Scholes option-pricing model include (1) discount rate of 2.33%, (2) expected term of 2.5 years, (3) expected volatility of 71%, and (4) no expected dividends.

 

In addition, during the six months ended June 30, 2018, the Company issued 116,930 warrants to consultants, having an aggregate value of approximately $25 thousand and an exercise price range from $0.36 to $0.65.