Quarterly report pursuant to Section 13 or 15(d)

Warrants And Options

v3.20.1
Warrants And Options
3 Months Ended
Mar. 31, 2020
Warrants And Options  
Note 7 - Warrants and Options

a) Warrants

 

The following table summarizes the changes in warrants outstanding of the Company during the three-month period ended March 31, 2020:

 

 

Weighted Average

 

Number of

Warrants

 

Exercise

Price ($)

 

Outstanding at December 31, 2019

 

190,000

 

2.90

 

Granted

 

50,000

 

3.45

 

Exercised

 

-

 

-

 

Expired

 

-

 

-

 

Outstanding at March 31, 2020

 

240,000

 

3.02

 

Exercisable at March 31, 2020

 

190,000

 

2.90

 

Effective February 26, 2020, the vesting criteria of the remaining installment of a warrant originally granted March 20, 2013 to an officer of the Company, and previously amended, was deemed met pursuant to the approval of the Compensation Committee, resulting in the vesting of the Warrant as to 125,000 shares effective February 26, 2020, with an expiration date of February 26, 2023.

 

Effective March 1, 2020, the Company granted warrants to purchase 50,000 shares of common stock to a Company employee for services to the Company. These warrants vest on September 1, 2021 (subject to continued employment through such date) and expire on March 1, 2026.with an exercise price of $3.45 per share. The Company has calculated the estimated fair market value of these warrants  at $86,771, using the Black-Scholes model and the following assumptions: term 3.75 years, stock price $3.44, exercise price $3.45, 69.03% volatility, 0.95% risk free rate, and no forfeiture rate.

 

Below is a table summarizing the warrants issued and outstanding as of March 31, 2020, which have an aggregate weighted average remaining contractual life of 2.90 years.

 

 

Weighted

 

Average

 

Remaining

 

Proceeds to

 

Number

 

Number

 

Exercise

 

Contractual

 

Company if

 

Outstanding

 

Exercisable

 

Price ($)

 

Life (Years)

 

Exercised ($)

 

150,000

 

150,000

 

2.47

 

1.69

 

370,500

 

50,000

 

-

 

3.45

 

5.92

 

172,500

 

40,000

 

40,000

 

4.53

 

0.62

 

181,200

 

240,000

 

190,000

 

724,200

 

Warrant expense of $27,205 and $2,127 was recorded in the three months ended March 31, 2020 and March 31, 2019, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is approximately $79,902 and is expected to be recognized over a period of 1.4 years. As of March 31, 2020, the total intrinsic value of warrants was $96,000.

 

b) Options

 

The following table summarizes the changes in options outstanding of the Company during the three-month period ended March 31, 2020:

 

 

Weighted Average

 

Number of

Options

 

Exercise Price ($)

 

Outstanding at December 31, 2019

 

4,169,301

 

3.88

 

Granted

 

-

 

-

 

Exercised

 

(68,882

)

 

3.33

 

Expired/Cancelled

 

(15,000

)

 

5.00

 

Outstanding at March 31, 2020

 

4,085,419

 

3.90

 

Exercisable at March 31, 2020

 

4,085,419

 

3.90

 

Below is a table summarizing the options issued and outstanding as of March 31, 2020, 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 an aggregate weighted average remaining contractual life of 2.74 years. As of March 31, 2020, a total of 1,149,367 shares of common stock remained available for future issuance under the 2015 Stock Incentive Plan.

 

 

Weighted

 

Average

 

Remaining

 

Proceeds to

 

Number

 

Number

 

Exercise

 

Contractual

 

Company if

 

Outstanding

 

Exercisable

 

Price ($)

 

Life (Years)

 

Exercised ($)

 

2,717

 

2,717

 

2.35

 

0.42

 

6,385

 

310,000

 

310,000

 

2.50

 

0.38

 

775,000

 

310,000

 

310,000

 

3.00

 

0.38

 

930,000

 

685,000

 

685,000

 

3.25

 

4.87

 

2,226,250

 

17,767

 

17,767

 

3.35

 

0.87

 

59,519

 

20,000

 

20,000

 

3.80

 

1.13

 

76,000

 

1,782,837

 

1,782,837

 

4.00

 

2.56

 

7,131,348

 

17,768

 

17,768

 

4.35

 

1.87

 

77,291

 

89,163

 

89,163

 

4.38

 

3.82

 

390,534

 

50,000

 

50,000

 

4.80

 

2.76

 

240,000

 

800,167

 

800,167

 

5.00

 

2.81

 

4,000,835

 

4,085,419

 

4,085,419

 

15,913,162

 

Stock option expense of $165,464 and $338,331 was recorded in the three months ended March 31, 2020 and March 31, 2019, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is approximately $Nil. As of March 31, 2020, the total intrinsic value of stock options was $225,264.