Annual report pursuant to Section 13 and 15(d)

Common Stock

v2.4.1.9
Common Stock
12 Months Ended
Dec. 31, 2014
Common Stock [Abstract]  
Common Stock

10.Common Stock

The following transactions occurred during the years ended December 31, 2014 and 2013:

a)On May 10, 2013, the Company issued 120,000 shares of stock to a vendor in exchange for investor relations services.  The market value of the stock issued was $0.31, and the total market value of the issuance was $37,200.

b)On June 10, 2013, the Company issued 200,000 shares of stock to a vendor in exchange for financial advisory services.  The market value of the stock issued was $0.50, and the total market value of the issuance was $100,000.

c) On July 26, 2013 the Company closed on a registered direct public offering to issue and sell 11,400,000 shares of common stock and warrants to purchase up to 3,990,000 shares of common stock.  The common stock and warrants were sold in units, consisting of common stock and a warrant to purchase 0.35 shares of common stock, at a price of $0.50 per share, and the warrants have an exercise price of $0.59 per share.  The total gross proceeds of the offering were $5,700,000.  The warrants issued are exercisable beginning six months after the closing date until the five-year anniversary of the closing date and were recorded as liabilities at fair value. 

The closing costs of $637,334 included 456,000 warrants valued at $110,489 and $526,845 for placement agent and other fees.  Based upon the estimated fair value of the stock and warrants in the units, the Company allocated $112,559 to financing expense and $524,775 as stock issuance costs.

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

 

 

 

 

 

 

 

 

 

 

Gross Proceeds:

 

$

5,700,000 

 

 

 

 

Allocated to liabilities:

 

 

        

   Warrant liabilities

 

 

1,406,441 

   Less: Warrants allocated to placement agent

 

 

(110,489)

Total allocated to liabilities

 

 

1,295,952 

 

 

 

 

 

 

 

 

Allocated to equity:

 

 

 

   Common stock and additional paid-in capital

 

 

4,404,048 

 

 

 

 

Total allocated gross proceeds:

 

$

5,700,000 

 

d)On August 1, 2013, the Company issued 120,000 shares of stock to a vendor in exchange for investor relations services.  The market value of the stock issued was $0.53, and the total market value of the issuance was $63,600.

e)On October 10, 2013, the Company issued 200,000 shares of stock to a vendor in exchange for financial advisory services.  The market value of the stock issued was $0.53, and the total market value of the issuance was $106,000.

f) On October 16, 2013, the Company closed on a registered direct public offering to issue and sell 10,192,309 shares of common stock and warrants to purchase up to 3,567,309 shares of common stock.  The common stock and warrants were sold in units, consisting of common stock and a warrant to purchase 0.35 shares of common stock, at a price of $0.52 per share, and the warrants have an exercise price of $0.575 per share.  The total gross proceeds of the offering were $5,300,001.  The warrants issued are exercisable beginning six months after the closing date until the five-year anniversary of the closing date and were recorded as liabilities at fair value. 

The closing costs of $519,368 included 407,692 warrants valued at $87,368 and $432,000 for placement agent and other fees.  Based upon the estimated fair value of the stock and warrants in the units, the Company allocated $91,653 to financing expense and $427,715 as stock issuance costs.

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

 

 

 

 

 

 

 

 

 

 

Gross Proceeds:

 

$

5,300,001 

 

 

 

 

Allocated to liabilities:

 

 

        

   Warrant liabilities

 

 

1,157,561 

   Less: Warrants allocated to placement agent

 

 

(87,368)

Total allocated to liabilities

 

 

1,070,193 

 

 

 

 

 

 

 

 

Allocated to equity:

 

 

 

   Common stock and additional paid-in capital

 

 

4,229,808 

 

 

 

 

Total allocated gross proceeds:

 

$

5,300,001 

 

g)  During the year ended December 31, 2013, option holders exercised stock options to purchase shares of the Company’s common stock for cash of $90,000, and the Company issued 375,000 shares.

h)During the year ended December 31, 2013, warrant holders exercised warrants to purchase shares of the Company’s common stock for cash of $2,209,667, and the Company issued 4,681,497 shares.

i)On January 21, 2014 the Company closed on a registered direct public offering to issue and sell 19,047,620 shares of common stock and warrants to purchase up to 4,761,905 shares of common stock.  The common stock and warrants were sold in units, consisting of common stock and a warrant to purchase 0.25 shares of common stock, at a price of $1.05 per share, and the warrants have an exercise price of $1.28 per share.  The total gross proceeds of the offering were $20,000,001.  The warrants issued are exercisable beginning six months and one day after the closing date until the five-year anniversary of the closing date and were recorded as liabilities at fair value. 

The total closing costs of the offering were $1,365,754, which consisted of placement agent and other professional fees.  Based upon the estimated fair value of the stock and warrants in the units, the Company allocated $206,172 to financing expense and $1,159,582 as stock issuance costs.

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

 

 

 

 

 

 

 

 

 

Gross Proceeds:

 

$

20,000,001 

 

 

 

 

Allocated to liabilities:

 

 

        

   Warrant liabilities

 

 

3,691,429 

 

 

 

 

 

 

 

 

Allocated to equity:

 

 

 

   Common stock and additional paid-in capital

 

 

16,308,572 

 

 

 

 

Total allocated gross proceeds:

 

$

20,000,001 

 

j)On February 10, 2014, the Company issued 300,000 shares of stock to two vendors in exchange for investor relations and financial advisory services.  The market value of the stock issued was $1.12, and the total market value of the issuance was $336,000.

k)  On April 14, 2014, an option holder exercised 125,000 stock options by a net exercise.  The Company withheld 99,010 shares in treasury as payment for the exercise price, and issued 25,990 shares to the option holder. 

l)On August 1, 2014, the Company issued 100,000 shares of stock to a vendor in exchange for investor relations services.  The market value of the stock issued was $0.73, and the total market value of the issuance was $73,000.

m)  During the year ended December 31, 2014, option holders exercised stock options to purchase shares of the Company’s common stock for cash of $258,955, and the Company issued 323,693 shares.

n)During the year ended December 31, 2014, warrant holders exercised warrants to purchase shares of the Company’s common stock for cash of $5,947,268, and the Company issued 11,738,220 shares.