Quarterly report pursuant to Section 13 or 15(d)

Common Stock

v3.4.0.3
Common Stock
3 Months Ended
Mar. 31, 2016
Common Stock [Abstract]  
Common Stock

10.Common Stock

The following transactions occurred since December 31, 2015:

Public Offering

On March 2, 2016 the Company closed on a registered direct public offering to issue and sell 15,625,000 shares of common stock and warrants to purchase up to 11,718,750 shares of common stock.  The common stock and warrants were sold in units, consisting of common stock and a warrant to purchase 0.75 shares of common stock, at a price of $0.32 per unit, and the warrants have an exercise price of $0.42 per share.  The total gross proceeds of the offering were $5,000,000.  The warrants issued are exercisable beginning six months after the closing date until the five-year anniversary of the initial exercise date and were recorded as liabilities at fair value. 

A summary of the allocation of the proceeds of the offering is shown below:





 

 

 



 

 

 

Gross Proceeds:

 

$

5,000,000 



 

 

 

Allocated to warrant liabilities:

 

 

2,419,922 

Allocated to common stock and additional paid-in capital

 

 

2,580,078 



 

 

 

Total allocated gross proceeds:

 

$

5,000,000 





The closing costs of $575,751 included 781,250 warrants valued at $155,938 and $419,813 for placement agent and other fees.  Based upon the estimated fair value of the stock and warrants in the units, the Company allocated $169,887 to financing expense and $405,864 as stock issuance costs.



Compensatory Shares

During the three months ended March 31, 2016, the Company issued 135,000 shares to vendors in exchange for investor relations services.  The aggregate market value of the stock issued was $48,749.