Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Deficit) (Tables)

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of principal assumptions used in the measurement of the fair values of the warrants

Provided below are the principal assumptions used in the measurement of the fair values of the warrants.

	Consulting			IPO			O-A			Consulting			Consulting
	09/08/14			08/05/15			08/13/15			10/31/15			11/02/15
Fair market value of shares	$	1.64		$	5.00		$	5.36		$	5.00		$	4.89
Assumed exercise price	$	0.0034375		$	6.00		$	6.00		$	3.00		$	6.00
Term in years		3			5			5			2.75			1
Volatility		80	%		80	%		80	%		80	%		80	%
Annual rate of dividends		0	%		0	%		0	%		0	%		0	%
Discount rate		1.02	%		1.64	%		1.57	%		1.26	%		1.26	%
Call option value	$	1.49		$	3.05		$	3.34		$	2.28		$	1.21
Warrant shares issued		436,364			660,000			64,193			12,500			30,000
Warrants fair value	$	713,745		$	2,013,870		$	214,243		$	28,460		$	36,266

Schedule of the allocation of stock-based compensation

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

			Period From
	Year Ended		Inception (June 20, 2014)
	December 31, 2015		to December 31, 2014
Operations and development costs	$	119,144	$	-
Business development and management costs		181,627		-
Total	$	300,771	$	-

Schedule of assumptions used in the black-scholes-Merton option-pricing model

The following assumptions were used in the Black-Scholes-Merton option pricing model to estimate the fair value of the awards granted during the year ended December 31, 2015.

Expected stock volatility	80	%
Risk free interest rate	1.32% - 1.75	%
Expected years until exercise	3.42 - 3.5
Dividend yield	0.00	%

Schedule of stock option activity

The following table summarizes the stock option activity for the year ended December 31, 2015.

				Weighted Average
				Exercise Price		Weighted-Average
	Number of Shares			Per Share		Remaining Term
Outstanding as of December 31, 2014		-			-	-

Granted		777,779		$	3.94	4.4years
Forfeited		(25,455	)	$	3.56	-
Outstanding as of December 31, 2015		752,324		$	3.95	4.4years
Vested and exercisable as of December 31, 2015		-			-	-

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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