Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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

10.        Stockholders’ Equity

 

Warrant issued

 

A warrant to purchase 12,500 of the Company’s common stock was issued on January 31, 2016 at an exercise price of $6.00 per share. The warrant was fully vested upon issuance and has a term of 1.25 years.

  

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of the warrant.

 

Expected stock volatility     80 %
Risk free interest rate     0.97 %
Expected years until exercise     1.25  
Dividend yield     0.00 %

 

The fair value was $15,476 and was recorded as increase to consulting expense and increase in additional paid in-capital.

  

Stock based compensation

 

The 2014 Stock Incentive Plan (the “2014 Plan”) authorized a total of 1,363,637 shares for option grants. The 2014 Plan provides for the following types of stock-based awards: incentive stock options; non-statutory stock options; restricted stock; and performance-based stock. The 2014 Plan, under which equity incentives may be granted to employees and directors under incentive and non-statutory agreements requires that the option price may not be less than the fair value of the stock at the date the option is granted. Option awards may not have a term exceeding 10 years from the grant date. As of March 31, 2016, the Company had 596,563 shares available for future grants under the 2014 Stock Incentive Plan.

 

Options granted generally have a five-year term and 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 expense recorded was allocated as follows:

 

    Three months ended March 31,  
    2016     2015  
Operations and development costs   $ 50,654     $ -  
Business development and management costs     157,530       -  
Total   $ 208,184     $ -  

 

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of the options.

 

Expected stock volatility     80 %
Risk free interest rate     1.11% - 1.77 %
Expected years until exercise     3.50  
Dividend yield     0.00 %

 

No stock options were exercised during the three months ended March 31, 2016.