Quarterly report pursuant to Section 13 or 15(d)

Equity

v2.4.0.8
Equity
 6 Months Ended
Jun. 30, 2013
Equity [Abstract]  
Equity
Note 7 – Equity
 
Stock Option Plan
 
The following is a summary of stock options:
 
               
Weighted
        
               
Average
        
         
Weighted
    
Remaining
    
Aggregate
  
   
Number of
    
Average
    
Contractual
    
Intrinsic
  
   
Units
    
Exercise Price
    
Term (in years)
    
Value
  
                         
Outstanding, December 31, 2012
    
2,330,134
    
 $
0.96
      
8.91
    
 $
685,800
  
Cancellation
    
(49,950
 )                        
Outstanding, March 31, 2013
    
2,280,184
    
 $
0.96
      
8.42
    
 $
1,609,035
  
  
All options issued and outstanding are being amortized over their respective service periods. The unrecognized compensation expense at June 30, 2013 was $1,086,848.
 
During the three months ended June 30, 2013 and 2012, the Company recorded option expense of $94,200, and $40,410, respectively. During the six months ended June 30, 2013 and 2012, the Company recorded option expense of $188,400 and $240,400, respectively.
 
On May 31, 2013, the Company entered into an agreement with its former director and consultant, Dr. Rosemary Mazanet. Pursuant to the agreement, the Company terminated the consulting agreement with Dr. Mazanet and Dr. Mazanet resigned as a director. The Company paid Mazanet cash of $25,000 and cancelled options to purchase 49,950 shares of the Company’s common stock at $1.50 per share previously granted.
 
Warrants
 
The following is a summary of warrants:
 
               
Weighted
        
               
Average
        
         
Weighted
    
Remaining
    
Aggregate
  
   
Number of
    
Average
    
Contractual
    
Intrinsic
  
   
Units
    
Exercise Price
    
Term (in years)
    
Value
  
                         
Outstanding, December 31, 2012
    
12,770,636
     $
0.97
      
4.48
     $
6,114,768
  
Warrants exercised
    
(2,211,158
)
    
1.65
                  
Warrants expired
    
(1,023,784
)
    
1.65
                  
Outstanding, June 30, 2013
    
9,535,694
    
$
0.77
      
5.34
 1  
$
9,691,302
  
 
During the six months ended June 30, 2013, the Company issued shares of common stock pursuant to the exercise of A-Warrants originally issued in connection with a private placement that closed in January 2013.  The warrants were exercised at $1.65 per share, resulting in gross proceeds of $3,463,641 received by the Company.