Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.4.0.3
Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Equity

 

Note 8 - Equity

 

During the three months ended March 31, 2016, the Company issued 717,273 shares of common stock for gross proceeds of $1.5 million as part of its At-The-Market (“ATM”) sales agreement with an investment bank.

 

During the three months ended March 31, 2016, the Company issued 125,862 common shares for the cashless exercise of warrants.

 

Restricted Stock

 

During the three months ended March 31, 2016, the Company granted 10,750 shares of restricted common stock to a consultant with a fair value of $19,350 based on the stock price on the grant date. The shares vested upon execution of the consulting agreement.

  

During the three months ended March 31, 2016 and 2015, the Company recorded approximately $0.1 million and $1.2 million, respectively, in stock-based compensation for all of the restricted shares outstanding. 

 

During the three months ended March 31, 2016, 15,500 restricted shares vested and the Company issued common shares.

 

Stock Options

 

Following is a summary of option activities for the three months ended March 31, 2016:

 

    Number of Units     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  
Outstanding, December 31, 2015     3,971,583       4.34       8.01       2,964,146  
Granted     244,500       2.14       9.88       -  
Cancelled     (100,000 )     1.91       -       -  
Outstanding, March 31, 2016     4,116,083       4.27       7.85       937,786  
                                 
Exercisable, March 31, 2016     2,006,628       3.61       6.37       893,426  

  

During the three months ended March 31, 2016, the Company granted employees 244,500 options to purchase the Company’s common stock with an exercise price ranging from $1.79 per share to $2.25 per share, a term of 10 years, and a vesting period of 4 years. The options have an aggregated fair value of $382,685 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 1.38% to 1.66% (2) expected life of 6 years, (3) expected volatility of 87.95%, and (4) zero expected dividends. During the three months ended March 31, 2016, the Company recorded $12,339 in stock-based compensation in relation to these options.

 

 The fair value of all options issued and outstanding are being amortized over their respective vesting periods. The unrecognized compensation expense at March 31, 2016 was $6.6 million. During the three months ended March 31, 2016 and 2015, the Company recorded total option expense of $0.8 million and $1.0 million respectively.

 

Warrants

 

Following is a summary of warrant activities for the three months ended March 31, 2016:

 

    Number of Units     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  
                         
Outstanding, December 31, 2015     8,954,031       3.73       2.93       10,199,230  
Exercised     (183,718 )     -       -       -  
Outstanding, March 31, 2016     8,770,313       3.78       2.68       4,782,278  
                                 
Exercisable, March 31, 2016     8,485,313       3.65       2.50       4,782,278  

   

During the three months ended March 31, 2016, 183,718 warrants were exercised by the warrant holders. The Company issued 125,862 shares of common stock as a result of these exercises.

 

During the three months ended March 31, 2016 and 2015, the Company recorded stock-based compensation expense related to the warrants of $57,144 and $56,516, respectively.