Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.19.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2019
Stockholders' Equity Note [Abstract]  
Stockholders’ Equity

Note 6 - 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 September 30, 2019, there were 1,374,524 shares remaining available for issuance under the 2011 Plan.

 

During the nine months ended September 30, 2019, the Company granted stock options to employees and non-employee directors to purchase 2,579,000 shares of the Company's common stock with grant date prices that ranged between $1.72 to $3.15 per share. The stock options have terms of ten years and are subject to vesting based on continuous service of the awardee over periods ranging between zero and four years. The stock options have an aggregate grant date fair value of $3,266,611.

 

The stock options granted during the nine months ended September 30, 2019 included an option to purchase 430,000 shares of common stock that contained service and performance conditions to be met for those options to begin vesting. The option holder had to be continuously employed to meet the service condition and attain certain funding milestones over a two-year period to satisfy the performance condition.

 

During the nine months ended September 30, 2019, stock options to purchase 233,214 shares of common stock were exercised for cash proceeds of $273,572.

 

During the nine months ended September 30, 2019, stock options to purchase 177,672 shares of common stock were cancelled and the shares underlying such awards were returned to the stock option pool for future issuance.

 

The Company recorded stock-based compensation as follows:

 

    For the Three Months Ended
September 30,		     For Nine Months Ended
September 30,		  
    2019     2018     2019     2018  
Research and development   $ 201,259     $ 1,188,545     $ 711,401     $ 2,299,934  
General and administrative     383,251       424,809       1,300,932       1,100,598  
Total   $ 584,510     $ 1,613,354     $ 2,012,333     $ 3,400,532  

 

The following table represents stock option activity for the nine months ended September 30, 2019:

 

                Weighted Average        
    Stock Options     Exercise Price     Fair Value     Contractual     Aggregate  
    Outstanding     Exercisable     Outstanding     Exercisable     Vested     Life (Years)     Intrinsic Value  
Balance – December 31, 2018     5,488,282       4,384,294     $ 2.10     $ 1.32     $ 1.32       5.80     $    -  
Granted     2,579,000       -       -       -       -       -       -  
Exercised     (233,214 )     -       -       -       -       -       -  
Cancelled     (177,672 )     -       -       -       -       -       -  
Balance – September 30, 2019     7,656,396       4,646,317     $ 2.14     $ 1.50     $ 1.50       6.27     $ 1,657,554  

 

The following table summarizes information on stock options outstanding and exercisable as of September 30, 2019:

 

Grant Price     Weighted Average Exercise     Total     Number     Weighted Average
From     To     Price     Outstanding     Exercisable     Remaining Contractual Term
$ 0.26     $ 2.02     $ 0.89       3,298,353       3,282,936     3.81 years
$ 2.10     $ 4.60     $ 2.47       3,665,043       936,167     8.89 years
$ 5.30     $ 8.86     $ 6.62       693,000       427,214     8.61 years
                  Totals       7,656,396       4,646,317      

 

Warrants

 

During the nine months ended September 30, 2019, warrants to purchase 50,000 shares of the Company's common stock were exercised for aggregate cash proceeds of $57,500.

 

                Weighted Average        
    Warrants     Exercise Price     Fair Value     Contractual     Aggregate  
    Outstanding     Exercisable     Outstanding     Exercisable     Vested     Life (Years)     Intrinsic Value  
Balance – December 31, 2018     4,964,205       4,907,223     $ 2.39     $ 2.39     $ 1.14       2.27     $ -  
Granted     -       -       -       -       -       -       -  
Exercised     (50,000 )     -       -       -       -       -       -  
Cancelled     (6,982 )     -       -       -       -       -       -  
Balance – September 30, 2019     4,907,223       4,907,223     $ 2.40     $ 2.40     $ 1.11       1.55     $ 883,793  

 

During the nine months ended September 30, 2019, warrants to purchase 6,982 shares of the Company's common stock expired and were cancelled.