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Stockholders' Equity
 3 Months Ended
Mar. 31, 2015
Stockholders' Equity [Abstract]  
Stockholders' Equity
6.Stockholders’ Equity

 

In January 2014 the Company issued 100,000 shares of restricted common stock, valued at $28,000 to a consultant.

 

Service-Based Stock Options

 

Service-based options issued by the Company to various employees and consultants amounted to 10,335,000 at December 31, 2014 and March 31, 2015. All outstanding options are exercisable and have a cashless exercise provision, and certain options provide for accelerated vesting provisions and modifications, as defined, if the Company is sold or acquired. The intrinsic value of options outstanding and exercisable at March 31, 2015 amounted to $80,000.

  

The following is a summary of outstanding service-based options at March 31, 2015:

 

Exercise Price  Number of
Options		  Weighted Average
Remaining
Contractual
Life		 
        
$0.10  $1,000,000   3 years 
$0.20 - $0.25   8,185,000   7 years 
$0.40   1,150,000   7 years 
 Total  $10,335,000     

 

Performance-Based Stock Options

 

In August 2014, the Company issued 300,000 options with an exercise price of $0.20 to a consultant. The options are contingent upon the completion of a clinical study as defined. Management has valued these options at $8,000 and is amortizing them over the implicit service period of one year. At March 31, 2015, $4,000 had been amortized and the balance of $4,000 remained to be amortized during the year ending December 31, 2015.

 

As of March 31, 2015 in addition to the 300,000 options above, the Company had granted performance-based options to purchase 9,375,000 shares of common stock at exercise prices ranging from $0.20 to $5.00. The options expire at various dates between 2021 and 2024 and are exercisable upon the Company achieving annual sales revenue ranging from $2,000,000 and $100,000,000. The fair value of these performance-based options aggregated $340,000 and will be expensed over the implicit service period commencing once management believes the performance criteria will be met. Accordingly, at March 31, 2015, the unearned compensation for performance based options is $340,000.

 

Stock based compensation expense amounted to $2,000 and $0 for the three months ended March 31, 2015 and 2014, respectively. Such amounts are included in compensation and related expenses in the accompanying statement of operations.

 

Warrants

 

Warrants outstanding and exercisable amounted to 3,772,720 at December 31, 2014 and March 31, 2015. The weighted average exercise price of warrants outstanding at March 31, 2015 is $0.29. The warrants expire in 2015 and 2016.