Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Mar. 31, 2017
Stockholders' Equity [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. In January 2016 the Company issued a warrant to purchase 125,000 shares of the Company’s common stock to an investor relations firm as partial compensation for consulting services it will provide the Company over a two year period.   Pursuant to applicable policies of the TSX-V, the shares issuable under the warrant will be counted against the limit of shares authorized for issuance under the 2011 Plan, notwithstanding that the warrant was not issued under the 2011 Plan. After giving effect to this limitation there are 683,322 shares remaining available for issuance under the 2011 Plan at March 31, 2017. 

During the three months ended March 31, 2017, the Company granted stock options to employees to purchase 1,031,000 shares of the Company’s common stock at $2.40 per share. Of the 1,031,000 stock options granted, 300,000 are subject to vesting based on continuous service over periods between zero and four years from the date of grant and have terms of ten years. The balance of the total grant, or 731,000, is performance based and will be valued at the time the milestones are reached. The stock options have an aggregate grant date fair value of $528,580.

 

In February 2017, 16,250 stock options were exercised for cash proceeds of $19,825 and the Company cancelled 48,750 stock options.

 

The Company recorded $414,513 and $123,646 of stock based compensation in the three months ended March 31, 2017 and 2016, respectively.

 

 

The following table represents stock option activity for the three months ended March 31, 2017:

 

                Weighted Average     Aggregate  
    Stock Options     Exercise Price     Fair Value     Contractual     Intrinsic  
    Outstanding     Exercisable     Outstanding     Exercisable     Vested     Life (Years)     Value  
Balance – December 31, 2016     4,652,497       1,908,883     $ 0.92     $ 0.41     $ 0.41       8.24     $ -  
Granted     1,031,000       100,000       2.40       2.40       6.25       6.25       -  
Exercised     (16,250 )     -       -       -       -       -       -  
Cancelled     (48,750 )     -       -       -       -       -       -  
Balance – March 31, 2017     5,618,497       2,511,008     $ 1.01     $ 0.58     $ 0.58       6.72     $ 4,034,869  

  

The following table summarizes information on stock options outstanding and exercisable as of March 31, 2017:

 

            Weighted 
Average		   Weighted           Weighted  
Exercise     Number     Remaining   Average     Number     Average  
Price     Outstanding     Contractual Term   Exercise Price     Exercisable     Exercise Price  
                               
$ 0.05       72,876     5.01 years   $ 0.05       72,876     $ 0.05  
$ 0.26       1,024,810     7.03 years   $ 0.26       948,901     $ 0.26  
$ 0.73       1,475,687     7.63 years   $ 0.73       860,817     $ 0.73  
$ 1.00       313,124     8.31 years   $ 1.00       146,457     $ 1.00  
$ 1.10       10,000     8.78 years   $ 1.10       3,333     $ 1.10  
$ 1.17       70,000     8.62 years   $ 1.17       27,500     $ 1.17  
$ 1.22       125,000     8.85 years   $ 1.22       36,458     $ 1.22  
$ 1.50       40,000     8.92 years   $ 1.50       10,833     $ 1.50  
$ 1.55       1,456,000     8.94 years   $ 1.55       283,000     $ 1.55  
$ 2.40       1,031,000     9.84 years   $ 2.40       120,833     $ 2.40
Totals       5,618,497                   2,511,008          

  

Warrants

 

In January 2017, a total of 926,588 warrants were exercised for cash proceeds of $1,853,176. An additional $522,326 was received in January 2017 which was the proceeds from warrants exercised in December 2016. During the three months ended March 31, 2017, 4,695,846 warrants expired.

 

In January and February 2017, consultants to the Company exercised a total of 106,982 warrants for cash proceeds of $29,491. 

 

As of March 31, 2017, the Company has 951,635 warrants outstanding and exercisable to purchase common stock. Such warrants have a weighted average exercise price of $0.39, a weighted average remaining contractual life of 6.25 years and an aggregate intrinsic value of $1,339,531.