Quarterly report pursuant to Section 13 or 15(d)

Stockholder's Equity

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Stockholder's Equity
 6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Stockholder Equity

6.         Stockholder’s Equity

  

Common stock issued

 

On September 24, 2014 the Company effected a forward stock split whereby each share of issued common stock was converted into 4,800 shares of common stock of the Company. On June 24, 2015, the Company effected a reverse stock split whereby each share of issued common stock was converted into 0.91 shares of common stock of the Company. All share and per share amounts in periods preceding the stock split have been adjusted to reflect both splits retroactively.

 

On June 9, 2015, the Company filed a registration statement on form S-1 with the Securities and Exchange Commission. The registration was for the sale of common stock to raise proceeds of $30,000,000. See Note 9 for more details on the IPO.

 

Stock based compensation

 

As of June 30, 2015, the Company had 753,638 shares available for future grants under our 2014 Stock Incentive Plan (the “2014 Plan”).

 

Options to purchase stock granted under the 2014 Plan may not exceed a ten year term. Options granted vest over a three year period. One third the first year, one third the second year and the remaining third vest on a monthly basis in the third year.

 

The stock-based compensation and expense recorded was allocated as follows:

 

    Period from        
    Inception (June   Three Months   Six Months
    20, 2014) to June   Ended June 30,   Ended June 30
      30, 2014       2015       2015  
Operations and development costs     —     $ 32,131.     $ 32,131.  
Business development and management costs     —       49,470       49,470  
Total     —     $ 81,601     $ 81,601  

 

The following assumptions were used in the Black-Scholes option-pricing model to estimate the fair value of the awards granted during the six month period ended June 30, 2015:

 

    Six Months Ended
    June 30, 2015
Expected stock volatility     80.0 %
Risk free interest rate     1.32% - 1.75 %
Expected years until exercise     3.5  
Dividend yield     0.00 %

 

The following table summarizes the stock option activity for the six months ended June 30, 2015. 

                     
        Weighted-Average   Weighted-Average  
    Number of Shares   Exercise Price Per Share   Remaining  
Term                    
Outstanding as of December 31, 2014     —     —     —  
Granted     700,908   $ 3.58     4.7 years  
Exercised     —     —     —  
Forfeited     (90,909 ) $ 3.56     —  
Outstanding as of June 30, 2015     609,999   $ 3.59     4.7 years  
Vested and exercisable as of June 30, 2015     —     —     —