Quarterly report pursuant to Section 13 or 15(d)

Warrants And Options

v3.7.0.1
Warrants And Options
 3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Note 8 - Warrants and Options

a) Warrants

 

See Note 7.

 

The following table summarizes the changes in warrants outstanding of the Company during the three month period ended March 31, 2017:

 

    Number of Warrants    

Weighted Average

Exercise Price ($)

  
Outstanding at December 31, 2016     2,162,638       2.40  
Granted     -       -  
Exercised     (19,500 )     (2.22 )
Expired     -       -  
Outstanding at March 31, 2017     2,143,138       2.40  
                 
Exercisable at March 31, 2017     1,993,138       2.39  

 

On February 14, 2017, the Company modified the performance criteria for a vesting milestone on an employee warrant agreement, as a result the Company re-measured warrants held by an employee, to purchase 25,000 shares of common stock at an exercise price of $2.47 per share. These warrants vest on achievement of certain business objectives and expire 3 years from the date of vesting. The Company has calculated the estimated fair market value of these warrants using the Black-Scholes Option Pricing model and the following assumptions: term: 0.5 years, stock price: $4.52, exercise price: $2.47, 55.65% volatility, 0.66% risk free rate.

 

Below is a table summarizing the warrants issued and outstanding as of March 31, 2017, which have a weighted average exercise price of $2.40 per share and an aggregate weighted average remaining contractual life of 1.67 years.

 

Date Issued   Number Outstanding    

Number

Exercisable

    

Exercise

Price ($)

     Contractual Life (Years)     Weighted Average Remaining Contractual Life (Years)    

Expiration

Date

   Proceeds to Company if Exercised ($)  
05/11/12     341,458       341,458       2.60       5.0       0.02     05/10/17     887,791  
03/20/13     150,000       -       2.47     4.0 to 6.0       0.28     06/30/20 to 12/31/21     370,500  
06/10/13     29,750       29,750       2.00       5.0       0.02     06/10/18     59,500  
08/07/13     45,000       45,000       2.40       4.0       0.01     08/07/17     108,000  
11/25/13     456,063       456,063       2.40       5.0       0.34     11/25/18     1,094,551  
12/31/13     64,392       64,392       2.40       5.0       0.05     12/31/18     154,541  
02/26/14     963,475       963,475       2.20       5.0       0.86     02/26/19     2,119,645  
09/05/14     10,000       10,000       2.40       3.0       0.00     09/05/17     24,000  
09/26/14     24,000       24,000       3.00       3.0       0.01     09/26/17     72,000  
11/17/14     19,000       19,000       3.75       3.0       0.01     11/17/17     71,250  
11/14/16     40,000       40,000       4.53       4.0       0.07     11/14/20     181,200  
      2,143,138       1,993,138                       1.67           5,142,978  

 

Total remaining unrecognized compensation cost related to non-vested warrants is approximately $67,427 and is expected to be recognized over a period of 2.0 years.

   

b) Options

 

The following table summarizes the changes in options outstanding of the Company during the three month period ended March 31, 2017:

 

   

Number

of Options

    

Weighted Average

Exercise Price ($)

  
Outstanding at December 31, 2016     2,384,300       3.75  
Granted     761,000       4.99  
Exercised     -       -  
Expired     (5,000 )     5.31  
Outstanding at March 31, 2017     3,140,300       4.05  
                 
Exercisable at March 31, 2017     1,560,133       3.60  

 

On January 1, 2017, the Company granted stock options to purchase 50,000 shares of common stock. These options vest on January 1, 2018 and expire 5 years after the vesting date, with an exercise price of $4.80 per share. The Company has calculated the estimated fair market value of these options at $157,890, using the Black-Scholes Option Pricing model and the following assumptions: term 6 years, stock price $4.57, exercise price $4.80, 80.70% volatility, 2.26% risk free rate.

 

On February 13, 2017, the Company granted stock options to purchase 25,000 shares of common stock. These options vest on February 13, 2018 and expire 5 years after the vesting date, with an exercise price of $5.00 per share. The Company has calculated the estimated fair market value of these options at $76,773, using the Black-Scholes Option Pricing model and the following assumptions: term 6 years, stock price $4.52, exercise price $5.00, 80.17% volatility, 2.24% risk free rate.

 

On March 1, 2017, stock options to purchase 5,000 shares of common stock expired unexercised.

 

On March 30, 2017, the Company granted stock options to purchase 686,000 shares of common stock. These options vest on March 30, 2018 and expire five years after their vesting date, with an exercise price of $5.00 per share. The Company has calculated the estimated fair market value of these options at $1,898,322, using the Black-Scholes Option Pricing model and the following assumptions: term of 6 years, stock price $4.18, exercise price $5.00, 79.41% volatility, 2.25% risk free rate.

   

Below is a table summarizing the options issued and outstanding as of March 31, 2017, all of which were issued pursuant to the 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (for option issuances commencing in 2016) and which have a weighted average exercise price of $4.05 per share and an aggregate weighted average remaining contractual life of 3.82 years.

 

Date
Issued		   Number
Outstanding		     Number
Exercisable		     Exercise
Price ($)		     Contractual
Life (Years)		    

Weighted

Average

Remaining
Contractual Life (Years)

     Expiration
Date		   Proceeds to Company if
Exercised ($)		  
11/25/11     404,000       404,000     4.00-5.00     5.5-7.0       0.12     05/25/17-11/25/18     1,818,000  
09/01/12     15,000       15,000     5.31-6.31     5.0-6.0       0.01     09/01/17-09/01/18     89,650  
03/20/13     37,000       37,000     2.35-4.35     4.5-7.0       0.02     09/20/17-03/20/20     123,950  
09/02/13     16,300       16,300     2.35-4.35     4.5-7.0       0.01     03/02/18-09/02/20     54,605  
05/16/14     25,000       20,833     3.00-5.00     3.5-6.0       0.01     11/16/17-05/16/20     100,000  
08/18/14     645,000       645,000     2.50 and 3.00     4.5 and 5.5       0.50     02/18/19-02/18/20     1,773,750  
05/18/15     20,000       20,000       3.80       4.5       0.02     11/18/19     76,000  
07/23/15     317,000       317,000       4.00       4.5       0.28     01/23/20     1,268,000  
08/17/15     75,000       75,000       3.75       5.0       0.08     08/17/20     281,250  
04/15/16     775,000       -       4.00       6.0       1.24     04/15/22     3,100,000  
06/23/16     15,000       -       4.00       6.0       0.02     06/23/22     60,000  
09/13/16     25,000       -       4.65       6.0       0.04     09/13/22     116,250  
11/11/16     10,000       10,000       5.00       6.0       0.02     11/11/22     50,000  
01/01/17     50,000       -       4.80       6.0       0.09     01/01/23     240,000  
02/13/17     25,000       -       5.00       6.0       0.05     02/13/23     125,000  
03/30/17     686,000       -       5.00       6.0       1.31     03/30/23     3,430,000  
      3,140,300       1,560,133                       3.82           12,706,455  

 

Total remaining unrecognized compensation cost related to non-vested stock options is approximately $2,208,363 and is expected to be recognized over a period of 1.0 years.