XML 75 R36.htm IDEA: XBRL DOCUMENT v3.20.1
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2018
Schedule of Fair Value of Stock Options Assumptions

The fair value of common stock options granted during the nine months ended September 30, 2018 were calculated using the Black-Scholes option-pricing model utilizing the following assumptions:

 

Risk-free interest rate   2.27% to 2.91 %
Expected dividend yield     0.00 %
Expected volatility     108.34% to 130.08 %
Expected life     3-6 years  
Summary of Stock Option Activity

A summary of the common stock option activity during the nine months ended September 30, 2018 is as follows:

 

                Weighted  
                Average  
          Weighted     Remaining  
    Number     Average     Contractual  
    of     Exercise     Life  
    Shares     Price     (in Years)  
Common stock options outstanding at January 1, 2018     2,176,637     $ 1.25       9.25  
Granted     8,131,750       0.84          
Exercised     (125,000)       0.20          
Forfeited     (435,285)       1.57          
Expired     (54,271)       1.60          
Common stock options outstanding at September 30, 2018     9,693,831       0.63       9.58  
Common stock options exercisable at September 30, 2018     1,264,995       1.31       8.69  
Schedule of Exercise Prices of Common Stock Options

The exercise prices of common stock options outstanding and exercisable are as follows as of September 30, 2018:

 

    Options     Options  
Exercise   Outstanding     Exercisable  
Price   (Shares)     (Shares)  
Under $1.00     6,111,500       45,832  
$1.01 to $1.25     1,818,859       866,658  
$1.26 to $1.50     45,000       1,949  
$1.51 to $1.75     487,222       130,139  
$1.76 to $2.00     1,055,000       190,417  
$2.01 to $2.25     135,000       -  
$2.26 to $2.50     41,250       30,000  
      9,693,831       1,264,995  
Summary of Warrant Activity

A summary of the Financing Warrants activity during the nine months ended September 30, 2018 is as follows:

 

                Weighted  
                Average  
          Weighted     Remaining  
    Number     Average     Contractual  
    of     Exercise     Life  
    Shares     Price     (in Years)  
                   
Financing Warrants outstanding at January 1, 2018     1,289,172     $ 0.29          
Issued     1,986,558       1.24          
Exercised     (842,117 )     0.20          
Issued as result of the reset provision on August 3, 2018     640,405       0.83          
Financing Warrants outstanding at September 30, 2018     3,074,018       1.20       4.5  
Financing Warrants exercisable at September 30, 2018     3,074,018       1.20       4.5  
Summary of Stock-based Compensation

A summary of stock based compensation and equity-based expense charged to operations or capitalized during the three months and nine months ended September 30, 2018 and 2017 is as follows:

 

    Restricted     Common     Channel              
    Stock     Stock     Partner     Financing        
    Awards     Options     Warrants     Warrants     Total  
During the three months ended September 30, 2018:                                        
Cost of revenue   $ 1,972     $ -     $ (1,630)     $ -     $ 342  
Research and development     28,216       65,798       -       -       94,014  
General and administrative     960,939       169,683       -       -       1,130,622  
Total costs charged to operations     991,127       235,481       (1,630)       -       1,224,978  
Capitalized platform development     334,749       27,744       -       -       362,493  
Total stock based compensation   $ 1,325,876     $ 263,225     $ (1,630)     $ -     $ 1,587,471  
                                         
During the three months ended September 30, 2017:                                        
Cost of revenue   $ -     $ -     $ 35,000     $ -     $ 35,000  
Research and development     -       -       -       -       -  
General and administrative     261,749       216,920       -       -       478,669  
Total costs charged to operations     261,749       216,920       35,000       -       513,669  
Capitalized platform development     243,484       -       -       -       243,484  
Total stock based compensation   $ 505,233     $ 216,920     $ 35,000     $ -     $ 757,153  
                                         

During the nine months ended

September 30, 2018:

                                        
Cost of revenue   $ 1,972     $ -     $ 153,447     $ -     $ 155,419  
Research and development     28,216       67,088       -       -       95,304  
General and administrative     2,354,801       810,586       -       -       3,165,387  
Total costs charged to operations     2,384,989       877,674       153,447       -       3,416,110  
Capitalized platform development     1,366,161       142,728       -       -       1,508,889  
Total stock based compensation   $ 3,751,150     $ 1,020,402     $ 153,447     $ -     $ 4,924,999  
                                         

During the nine months ended

September 30, 2017:

                                        
Cost of revenue   $ -     $ -     $ 115,000     $ -     $ 115,000  
Research and development     -       -       -       -       -  
General and administrative     801,743       408,432       -       32,335       1,242,510  
Total costs charged to operations     801,743       408,432       115,000       32,335       1,357,510  
Capitalized platform development     688,302       -       -       -       688,302  
Total stock based compensation   $ 1,490,045     $ 408,432     $ 115,000     $ 32,335     $ 2,045,812  
Channel Partner Warrants [Member]  
Schedule of Fair Value of Stock Options Assumptions

The fair value of Channel Partner Warrants issued during the nine months ended September 30, 2018 were calculated using the Black-Scholes option-pricing model utilizing the following assumptions:

 

Risk-free interest rate     2.53% to 2.89 %
Expected dividend yield     0.00 %
Expected volatility     95.73% to 108.10 %
Expected life     3-5 years  
Summary of Warrant Activity

A summary of the Channel Partner Warrants activity during the nine months ended September 30, 2018 is as follows:

 

                Weighted  
                Average  
          Weighted     Remaining  
    Number     Average     Contractual  
    of     Exercise     Life  
    Shares     Price     (in Years)  
                   
Channel Partner Warrants outstanding at January 1, 2018     1,303,832     $ 1.48          
Issued     295,000       1.74          
Exercised     -       -          
Forfeited     (499,824)       1.39          
Channel Partner Warrants outstanding at September 30, 2018     1,099,008       1.50       3.82  
Channel Partner Warrants exercisable at September 30, 2018     261,696       1.47       3.81