Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

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Subsequent Events
9 Months Ended
Sep. 30, 2015
Subsequent Events [Text Block]

Note 12. Subsequent Events

On October 19, 2015 we sold 99,934 common shares for total gross proceeds of approximately $116,000 through the ATM financing arrangement we have in place (See Note 9 – Stockholders’ Equity).

Short-Term Non-Qualified Option Grants

On November 20, 2015, the Compensation Committee of the Board of Directors granted short-term non-qualified stock options relating to approximately 1.1 million shares under the 2015 Equity Incentive Plan to employees and consultants of the Company. These stock options vested immediately, all with a strike price of $0.92, which was the closing price of the Company’s stock on November 20, 2015. These options have a 10 year contractual term.

Long-Term Non-Qualified Option Grants

On November 20, 2015 the Compensation Committee of the Board of Directors granted long-term non-qualified stock options relating to approximately 2.9 million shares to employees, consultants and directors of the Company. Out of this total, approximately 2.5 million stock options issued to employees and consultants vest one-third on each anniversary of the grant date over three years. The remaining approximate 0.4 million stock options were issued to the directors of the Company and vest over a one year period on the anniversary date of the grant. These stock options have a strike price of $0.92, which was the closing price of the Company’s stock on November 20, 2015. These options have a 10 year contractual term.  

All such long-term non-qualified stock options issued in excess of the three million shares authorized under the 2015 Equity Stock Plan (which total approximately 2.2 million out of the total approximate 2.9 million options granted) were issued contingent upon shareholder approval of an increase in the number of shares available under the 2015 Equity Stock Plan (with such number of contingent options to be granted is granted pro-rata among the grantees).   The Compensation Committee also amended the 2015 Equity Incentive Plan to permit grants of stock options, stock appreciation rights and other equity awards relating to up to 1.5 million shares to any one individual during any one year period.