Quarterly report pursuant to Section 13 or 15(d)

STOCK WARRANTS, OPTIONS AND GRANTS

v3.8.0.1
STOCK WARRANTS, OPTIONS AND GRANTS
 3 Months Ended
Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
STOCK WARRANTS, OPTIONS AND GRANTS

NOTE 14. STOCK WARRANTS, OPTIONS AND GRANTS

 

Stock options. During the three months ended March 31, 2018 and 2017, we issued 145,000 and 112,500 options to purchase our common stock, respectively, to members of our Board, independent contractors, executive officers and employees.  

 

The fair value of all stock options granted for the three months ended March 31, 2018 and 2017 was determined to be $98,333 and $47,635, respectively, using the Black-Scholes option pricing model with the following assumptions:

 

 

 

Options issued three months ended March 31, 2018

 

 

Options issued three months ended March 31, 2017

 

Dividend yield

 

 

0%

 

 

 

0%

 

Expected volatility

 

78%

 

 

85%

 

Risk free interest rate

 

2.46% - 2.56%

 

 

1.93%

 

Expected life (years)

 

 

5.00

 

 

 

5.00

 

 

A summary of stock option activity is as follows:

 

 

 

Common stock options

 

 

Weighted-

average

exercise price

 

 

Aggregate

intrinsic

value

 

 

Weighted-average

remaining contractual

term (years)

 

Outstanding – December 31, 2017

 

 

2,811,250

 

 

 

0.54

 

 

$

1,849,517

 

 

 

3.65

 

Issued

 

 

145,000

 

 

 

1.06

 

 

 

—

 

 

 

—

 

Exercised

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Expired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding – March 31, 2018

 

 

2,956,250

 

 

$

0.57

 

 

$

1,397,117

 

 

 

3.49

 

Exercisable – March 31, 2018

 

 

2,057,916

 

 

$

0.50

 

 

$

1,102,116

 

 

 

3.16

 

 

A summary of unvested stock option activity is as follows:

 

 

 

Common stock

options

 

 

Weighted-average

exercise price

 

 

Aggregate

intrinsic

value

 

 

Weighted-average

remaining contractual

term (years)

 

Unvested – December 31, 2017

 

 

825,557

 

 

$

0.63

 

 

$

467,379

 

 

 

4.27

 

Granted

 

 

145,000

 

 

 

1.06

 

 

 

—

 

 

 

—

 

Vested

 

 

(72,223

)

 

 

0.52

 

 

 

—

 

 

 

—

 

Forfeited or expired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unvested – March 31, 2018

 

 

898,334

 

 

$

0.71

 

 

$

295,001

 

 

 

4.13

 

 

As of March 31, 2018, our unrecognized stock-based compensation expense associated with the stock options issued was $323,230, which will be amortized over a weighted-average of 2.06 years.

 

Warrants.  On August 29, 2016, in connection with the Breakaway Term Loan Agreement, we issued the lenders the Warrants to purchase 1,965,780 shares of our common stock at an initial exercise price of $0.30 per share. On April 24, 2018, we paid $1,333,333 to redeem the Warrants in full upon extinguishment of the Breakaway Term Loan (Note 16).