NOTE 5 – EQUITY

Public Offerings

On December 7, 2016, the Company entered into a securities purchase agreement with various purchasers pursuant to which the Company issued and sold to the purchasers in a registered offering an aggregate of 3,885,000 shares of its common stock, together with Series A common stock purchase warrants (“Series A Warrants”) exercisable for up to an aggregate of 1,942,501 shares of common stock and Series B common stock purchase warrants (“Series B Warrants”) exercisable for up to an aggregate of 3,885,000 shares of common stock. The offering closed on December 13, 2016 and the Company received net proceeds of approximately $6.8 million, after deducting placement agent fees and offering expenses payable by the Company.

The Series A Warrants have an exercise price of $2.75 per share, are immediately exercisable, and will expire on the five year anniversary of the date of issuance. The Series B Warrants were immediately exercisable and expired on the six month anniversary of the date of issuance. No Series B Warrants were exercised.

On April 5, 2017, the Company entered into a securities purchase agreement with various purchasers pursuant to which the Company issued and sold to the purchasers in a registered offering an aggregate of 20,250,032 shares of its common stock, together with warrants (“Warrants”) exercisable for up to an aggregate of 14,175,059 shares of its common stock. The offering closed on April 10, 2017, and the Company received net proceeds of approximately $12.7 million, after deducting placement agent fees and offering expenses payable by the Company.

The Warrants have an exercise price of $1.00 per share. Following the one year anniversary of the date the Warrants are issued, the holders of the Warrants may exercise the Warrants through a cashless exercise, in whole or in part. The Warrants are immediately exercisable and will expire on the five year anniversary of the date of the issuance.

Common Stock Warrants

Below is a table summarizing the warrants issued and outstanding as of June 30, 2017 (“Price” reflects the weighted average exercise price per share):

As of June 30, 2017, the warrants have a weighted average remaining term of 4.72 years and have no intrinsic value.

During the nine month period ended June 30, 2017, the Company received the proceeds related to warrants exercised in July 2016 amounting to $118,801.

Stock Based Compensation

The Company’s Consolidated 2016 Stock Plan (“the Plan”) provides for granting stock options and restricted stock awards to employees, directors and consultants of the Company.

Warrants. During the three and nine month periods ended June 30, 2017, the Company did not recognize any expense related to warrants granted as stock based compensation. As of June 30, 2017, there was no unamortized expense, and the warrants had no intrinsic value. Refer to the Common Stock Warrants table within this note for information regarding all outstanding warrants.

Options. During the three and nine month periods ended June 30, 2017, the Company recognized $410,374 and $1,256,644 of expense related to options granted. Unamortized option expense as of June 30, 2017 for all options outstanding amounted to $987,252. The Company expects to recognize this compensation cost over a weighted-average period of 1.36 years.

Below is a table summarizing the Company’s activity for the nine month period ended June 30, 2017 (“Price” reflects the weighted average exercise price per share):

As of June 30, 2017, the outstanding options have a weighted average remaining term of 4.73 years and have no intrinsic value.

Restricted Stock. During the three and nine month periods ended June 30, 2017, the Company recognized $150,145 and $783,842 of expense related to restricted stock awards. As of June 30, 2017, there was $335,690 of unamortized expense. The Company expects to recognize this compensation cost over a weighted-average period of .53 years.

Below is a table summarizing the Company’s activity for the nine months ended June 30, 2017: