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Share-Based Compensation | 3 Months Ended
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Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation |
12. | Share-Based Compensation
On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Sophie Pibouin, a director of the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 128,000 shares prior to the expiration date of April 29, 2025 at an exercise price of $0.75. The options granted vested on a graded scale over a period of time through October 31, 2015. On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Murray Gross, a director of the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 640,000 shares prior to the expiration date of April 29, 2025 at an exercise price of $0.75. 400,000 of the options granted immediately vested on the date of grant, and the remaining 240,000 options granted will vest upon the date at which the Company first reports two consecutive fiscal quarters with revenues of One Million Dollars ($1,000,000) each. The unvested options were not exercisable after the director’s termination of continuous service, on September 30, 2017, as defined in the agreement. On January 1, 2016, the Company granted employees stock options to purchase 250,000 shares at an exercise price of $0.90 per share in accordance with the 2015 Plan, with vesting continuing until 2019. The total fair value of $196,250 for these stock options will be recognized by the Company over the applicable vesting period. On February 10, 2016, the Company granted employees stock options to purchase 210,000 shares at an exercise price of $0.96 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $174,748 for these stock options will be recognized by the Company over the applicable vesting period. On December 6, 2016, the Company granted one employee stock options to purchase 100,000 shares at an exercise price of $0.76 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $63,937 for these stock options will be recognized by the Company over the applicable vesting period. On March 15, 2017, the Company granted one employee stock options to purchase 100,000 shares at an exercise price of $0.85 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $70,872 for these stock options would have been recognized by the Company over the applicable vesting period. These options were forfeited during 2017 upon the termination of the employee and expiry of the exercise period. The total stock option compensation for the three months ended March 31, 2017 was $4,357. On September 25, 2017, the Company granted an employee stock options to purchase 750,000 shares at an exercise price of $0.30 per share and 500,000 shares at an exercise price of $0.38 per share, in accordance with the 2015 Plan, with vesting continuing until 2019. The 500,000 shares will vest quarterly through 2019, and they are also subject to availability contingencies relating to pending shareholder approval of an amendment to the 2015 Plan. The total fair value of $321,011 for these stock options will be recognized by the Company over the applicable vesting period. The weighted average estimated values of director and employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during the three months ended March 31, 2018 and 2017, were based on estimates at the date of grant as follows:
|  | April 30, |  |  | January 1, |  |  | February 10, |
|  | 2015 Grant |  |  | 2016 Grant |  |  | 2016 Grant |
Risk-free interest rate |  |  | 1.43 | % |  |  | 1.76 | % |  |  | 1.15 | %
Weighted average expected term |  |  | 5 years |  |  |  | 5 years |  |  |  | 5 years |
Expected volatility |  |  | 143.10 | % |  |  | 134.18 | % |  |  | 132.97 | %
Expected dividend yield |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
|  | December 6 |  |  | March 15, |  |  | September 25, |
|  | 2016 Grant |  |  | 2017 Grant |  |  | 2017 Grant |
Risk-free interest rate |  |  | 1.84 | % |  |  | 2.14 | % |  |  | 1.85 | %
Weighted average expected term |  |  | 5 years |  |  |  | 5 years |  |  |  | 5 years |
Expected volatility |  |  | 123.82 | % |  |  | 121.19 | % |  |  | 130.79 | %
Expected dividend yield |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
A summary of stock option activity during the twelve months ended March 31, 2018 and 2017 under our stock option agreements is as follows:
|  |  |  |  |  |  |  | Weighted- |  |  |
|  |  |  |  | Weighted- |  |  | Average |  |  |
|  | Shares |  |  | Average |  |  | Remaining |  | Aggregate |
|  | Under |  |  | Exercise |  |  | Contractual |  | Intrinsic |
|  | Option |  |  | Price |  |  | Life |  | Value |
Outstanding at January 1, 2018 |  |  | 2,238,000 |  |  | $ | 0.55 |  |  | 9 years |  |  | 79,200 |
Granted |  |  | - |  |  |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  |  |  |  |  |  |  |  |  |
Forfeited and expired |  |  | - |  |  |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2018 |  |  | 2,238,000 |  |  | $ | 0.55 |  |  | 9 years |  | $ | 79,200 |
Exercisable at March 31, 2018 |  |  | 1,095,500 |  |  | $ | 0.67 |  |  | 8 years |  | $ | 79,200 |
The weighted-average grant date fair value of options granted during the three months ended March 31, 2017 was $0.71. There were no grants during the three months ended March 31, 2018. As of March 31, 2018, and December 31, 2017, there was $372,691 and $434,779, respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of two years. The total fair value of stock options that vested during the three months ended March 31, 2018 and 2017 was $112,662 and $82,937, respectively.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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