Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity (Tables)

v3.8.0.1
Stockholders’ Equity (Tables)
3 Months Ended
Mar. 31, 2018
Stockholders Equity Tables  
Schedule of Warrants Outstanding
    March 31,     December 31,  
Outstanding Warrants   2018     2017  
Issued to Investors on October 25, 2013, entitling the holders to purchase 250,000 common shares in the Company at an exercise price of $11.50 per common share up to and including April 24, 2021. In 2016, 59,450 of these warrants were exchanged for common stock, and all remaining warrant holders agreed to new warrant terms which excluded any potential net cash settlement provisions in exchange for a reduced exercise price of $6.25 per share.     163,986       163,986  
                 
Issued to Investors on November 17, 2014, entitling the holders to purchase 546,919 common shares in the Company at an exercise price of $11.55 per common share up to and including May 16, 2022. On June 30, 2016, the warrant holders agreed to new warrant terms which excluded any potential net cash settlement provisions in order to classify them as equity in exchange for a reduced exercise price of $6.25 per share.     546,919       546,919  
                 
Issued to an investor on August 10, 2016, entitling the holders to purchase 500,000 common shares in the Company at an exercise price of price of $0.01 per share, up to and including December 31, 2019. These warrants were exercised in January 2018.     -       500,000  
                 
Issued to Series B Preferred Stock investors on January 30, 2018, entitling the holders to purchase 666,664 common shares in the Company at an exercise price of price of $1.875 per share, up to and including July 30, 2018.     666,664       -  
                 
Issued to an investment bank regarding the Series B Preferred Stock investment on January 30, 2018, entitling the holder to purchase 133,432 common shares in the Company at an exercise price of price of $1.50 per share, up to and including January 30, 2021.     133,432       -  
                 
      1,511,001       1,210,905  
Schedule of Share-based Compensation, Stock Options, Activity

Stock option transactions to the employees, directors and consultants are summarized as follows for the three months ended March 31, 2018:

 

   

Options

Outstanding 

   

Weighted

Average

Exercise

Price

   

Weighted

Average

Grant Date

Fair Value

 
Beginning of the period     3,976,884     $ 3.58     $ 2.49  
Granted     -       -       -  
Exercised     -       -       -  
Forfeited     -       -       -  
Expired     (3,334 )   $ 50.25     $ 30.73  
End of the period     3,973,550     $ 3.54     $ 2.53  
                         
Options exercisable     3,551,136     $ 3.60     $ 2.60  

 

Stock option transactions to the employees, directors and consultants are summarized as follows for the year ended December 31, 2017:

 

   

Options

Outstanding

   

Weighted

Average

Exercise

Price

   

Weighted

Average

Grant Date

Fair Value

 
Beginning of the year      2,172,581     $ 6.70     $ 4.83  
Granted     1,854,277       1.05       0.77  
Exercised     -       -       -  
Forfeited     -       -       -  
Expired     (49,974 )     45.53       38.70  
End of the year     3,976,884     $ 3.58     $ 2.49  
                         
Options exercisable     2,434,148     $ 4.84     $ 3.36  

Schedule of Non-Vested Options, Activity
    Shares    

Weighted-

Average Fair

Value

Grant Date

   

Weighted

Average

Exercise Price

 
Non-vested – December 31, 2016     450,476     $ 3.60     $ 5.40  
                         
Granted     1,854,277     $ 0.77     $ 1.05  
Vested     (762,017 )     1.67       2.54  
Forfeited     -       -       -  
Non-vested – December 31, 2017     1,542,736     $ 1.10     $ 1.58  
                         
Granted     -       -       -  
Vested     (1,120,322 )   $ 1.03     $ 1.05  
Forfeited                        
Non-vested – March 31, 2018     422,414     $ 1.95     $ 3.00  
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

The following table provides certain information with respect to the above-referenced stock options that are outstanding and exercisable at March 31, 2018:

 

    Stock Options Outstanding     Stock Options Vested  
    Weighted                 Weighted              
    Average                 Average              
    Remaining           Weighted     Remaining           Weighted  
    Contractual     Number     Average     Contractual     Number     Average  
    Life     of     Exercise     Life     of     Exercise  
Exercise Prices   -Years     Awards     Price     -Years     Awards     Price  
                                         
$1.05-$2.00     9.31       2,528,666     $ 1.18       9.29       2,318,030     $ 1.19  
$2.01-$6.00     7.61       821,174     $ 4.59       7.61       651,429     $ 4.58  
$6.01-$20.00     4.88       505,694     $ 7.47       4.68       463,661     $ 7.58  
$20.00-$45.00     1.41       118,016     $ 29.85       1.41       118,016     $ 29.85  
Total     8.16       3,973,550     $ 3.54       8.12       3,551,136     $ 3.60  

   

The following table provides certain information with respect to the above-referenced stock options that are outstanding and exercisable at December 31, 2017:

 

    Stock Options Outstanding     Stock Options Vested  
    Weighted                 Weighted              
    Average                 Average              
    Remaining           Weighted     Remaining           Weighted  
    Contractual     Number     Average     Contractual     Number     Average  
    Life     of     Exercise     Life     of     Exercise  
Exercise Prices   -Years     Awards     Price     -Years     Awards     Price  
                                         
$1.05-$2.00     9.56       2,528,666     $ 1.18       9.28       1,197,708     $ 1.33  
$2.01-$6.00     7.86       821,174     $ 4.59       7.86       651,429     $ 4.58  
$6.01-$20.00     5.12       505,694     $ 7.47       4.93       463,661     $ 7.58  
$20.01-$45.00     1.66       118,016     $ 29.85       1.66       118,016     $ 29.85  
$45.01-$72.00     0.18       3,334     $ 50.25       0.18       3,334     $ 50.25  
Total     8.40       3,976,884     $ 3.58       7.70       2,434,148     $ 4.84  

Schedule of Service-based Payment Award, Stock Options, Valuation Assumptions

Weighted average assumptions used in the Black Scholes option-pricing model for the service-based stock options issued for the years ended December 31, 2017, was as follows: 

 

    Year ended  
    December 31,  
    2017  
       
Average risk-free interest rate     2.15 %
Average expected life- years     5.67  
Expected volatility     87.24 %
Expected dividends   $ 0.0  

 

In accordance with ASC 718, the market-based and performance-based long-term non-qualified option grants awards issued in 2017 were assigned a fair value of $0.80 per option share (total value of $0.9 million) on the date of grant using a Monte Carlo simulation. The following assumptions were used in the Monte-Carlo simulation model:

 

Expected volatility   87.5% to 91 %
Risk free interest rate   2.24% to 2.42 %
Dividend yield rate     0 %
Weighted average remaining expected life   4.2 years  
Closing price per share – common stock   $ 1.05