Quarterly report pursuant to Section 13 or 15(d)

Warrants And Options

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Warrants And Options
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Note 8 - Warrants And Options

a) Warrants

 

On February 23, 2015, 25,000 warrants were exercised at a price of $2.20 per share, giving cash proceeds to the Company of $55,000. As a result, a total of 25,000 shares of common stock were issued.

 

On May 10, 2015, 26,685 warrants with an exercise price of $1.75 per share terminated by their terms.

 

On June 11, 2015, 100,000 warrants were exercised at a price of $0.50 per share, giving cash proceeds to the Company of $50,000. As a result, a total of 100,000 shares of common stock were issued.

 

On July 20, 2015, 25,000 warrants were exercised at a price of $2.20 per share, giving cash proceeds to the Company of $55,000. As a result, a total of 25,000 shares of common stock were issued.

 

On September 16, 2015, 12,500 warrants were exercised at a price of $2.20 per share, giving cash proceeds to the Company of $27,500. As a result, a total of 12,500 shares of common stock were issued.

 

Below is a table summarizing the warrants issued and outstanding as of September 30, 2015, which have a weighted average exercise price of $2.01 per share and a weighted average remaining contractual life of 4.7 years.

 

Date   Number     Exercise     Contractual     Expiration   Proceeds to Company if  
Issued   Outstanding     Price $     Life (Years)     Date   Exercised $  
03/15/11     100,000       0.50       5     3/15/2016     50,000  
03/24/11     100,000       0.50       5     3/24/2016     50,000  
04/01/11     100,000       0.50       5     4/1/2016     50,000  
06/21/11     100,000       0.50       5     6/21/2016     50,000  
07/13/11     250,000       1.05       5     07/13/16     262,500  
05/11/12     344,059       2.60       4     05/10/16     894,553  
03/20/13     150,000       2.47       3     03/20/16     370,500  
                            to 12/20/19        
06/10/13     29,750       2.00       5     12/10/18     59,500  
08/07/13     45,000       2.40       3     08/07/16     108,000  
11/25/13     456,063       2.40       5     11/25/18     1,094,551  
12/31/13     64,392       2.40       5     11/25/18     154,541  
01/28/14     10,000       2.40       3     01/28/17     24,000  
02/26/14     1,468,475       2.20       5     02/26/19     3,230,645  
09/05/14     10,000       2.40       3     09/05/17     24,000  
09/26/14     24,000       3.00       3     09/26/17     72,000  
11/17/14     19,000       3.75       3     11/17/17     71,250  
      3,270,739                           6,566,040  

 

b) Options

 

On May 18, 2015, the Company granted options to purchase 20,000 shares. These options vest six months after the date of grant, and expire four years after the vesting date, with an exercise price of $3.80 per share. The Company has calculated the estimated fair market value of these options using the Black-Scholes Option Pricing model and the following assumptions: term 4.5 years, stock price $3.45, exercise price $3.80, 72.1% volatility, 1.54% risk free rate.

 

On May 18, 2015, the Company amended the expiry period of 630,000 stock options, originally granted on November 25, 2011. The expiration period was extended from three to four years for all 630,000 stock options.

 

On July 23, 2015, the Company granted options to purchase 327,000 shares, at an exercise price of $4.00 per share. All of the 327,000 options will vest on January 23, 2016 and will expire on January 23, 2020. The Company has calculated the estimated fair market value of these options using the Black-Scholes Option Pricing model and the following assumptions: term 4.5 years, stock price $3.55, exercise price $4.00, 88.3% volatility, 1.65% risk free rate.

 

On August 14, 2015, the Company amended the vesting date of 10,000 stock options, originally granted on August 18, 2014, from August 18, 2015 to August 16, 2015.

 

On August 17, 2015, the Company granted options to purchase 75,000 shares, at an exercise price of $3.75 per share. All of the 75,000 options vested on August 17, 2015 and will expire on August 17, 2020. The Company has calculated the estimated fair market value of these options using the Black-Scholes Option Pricing model and the following assumptions: term 5.0 years, stock price $3.31, exercise price $3.75, 87.9% volatility, 1.58% risk free rate.

 

During the nine month period ended September 30, 2015, 40,000 options expired unexercised following the cessation of a consultant’s contract.

 

Below is a table summarizing the options issued and outstanding as of September 30, 2015, which have a weighted average exercise price of $3.50 per share and a weighted average remaining contractual life of 3.9 years. 

 

Date   Number     Exercise     Contractual     Expiration   Proceeds to Company if  
Issued   Outstanding     Price $     Life (Years)     Date   Exercised $  
11/25/11     630,000     3.00-5.00     4.5-7.0     05/25/16-11/25/18     2,520,000  
09/01/12     30,000     4.31-6.31       3.0     03/01/16-09/01/18     159,300  
12/13/12     100,000       3.01       3.0     12/13/15     301,000  
03/20/13     37,000     2.35-4.35       3.0     09/20/16-03/20/19     123,950  
09/02/13     16,300     2.35-4.35       3.0     03/02/14-09/02/16     54,605  
05/16/14     25,000     3.00-5.00     3.0-5.5     11/16/17-05/16/20     100,000  
08/18/14     670,000     2.50-3.00     4.5-5.5     02/18/19-02/18/20     1,842,500  
08/18/14     20,000       3.00       0.5-1.4     11/17/15     60,000  
05/18/15     20,000       3.80       4.5     11/18/19     76,000  
07/23/15     327,000       4.00       4.5     01/23/20     1,308,000  
08/17/15     75,000       3.75       5.0     08/17/20     281,250  
      1,950,300                           6,826,605  

 

Total remaining unrecognized compensation cost related to non-vested stock options is approximately $651,235 and is expected to be recognized over a period of two years.