Note 7 - Stockholders’ Equity

Stock Options

The Company has an incentive stock plan, the Amended and Restated 2011 Equity Incentive Plan (the “2011 Plan”), and has granted stock options to employees, non-employee directors and consultants from the 2011 Plan. Options granted under the 2011 Plan may be Incentive Stock Options or Non-statutory Stock Options, as determined by the Administrator at the time of grant. As of March 31, 2018, there were 761,793 shares remaining available for issuance under the 2011 Plan. Pursuant to applicable policies of the TSX Venture Exchange (the “TSX-V”), certain equity grants are counted against the pool of options available for issuance, notwithstanding that the equity was not originally granted under the 2011 Plan. Subsequent to March 31, 2018, the Company delisted from the TSX-V. Because of the delisting, previously issued warrants that were counted against the option pool are now added back for future issuance. As of the date of this filing, there were 1,066,793 shares remaining available for issuance under the 2011 Plan.

During the three months ended March 31, 2018, the Company granted stock options to employees to purchase 280,000 shares of the Company’s common stock at $5.30 per share. The stock options have terms of ten years and vest over a two or four-year period. The stock options have an aggregate grant date fair value of approximately $1,028,600.

During the three months ended March 31, 2018, 249,309 stock options were exercised for cash proceeds of $146,438.

The Company recorded stock-based compensation in the three months ended March 31, 2018 and 2017 as follows:.

The following table represents stock option activity for the three months ended March 31, 2018:

The following table summarizes information on stock options outstanding and exercisable as of March 31, 2018:

Warrants

During the three months ended March 31, 2018, warrants to purchase 267,333 shares of the Company’s common Stock were exercised for aggregate cash proceeds of $588,499.