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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2017
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

NOTE 10 – Stock-Based Compensation

 

NeuroOne formally adopted an equity incentive plan (“the 2016 Plan”) on October 27, 2016 which was subsequently adopted by the Company upon completion of the Acquisition. In addition, the Company adopted a 2017 Equity Incentive Plan (the “2017 Plan”) on April 17, 2017. The 2016 and 2017 Plans provide for the issuance of restricted shares and stock options to employees, directors, and consultants of the Company. The Company reserved 2,292,265 shares of common stock (as adjusted for the exchange ratio in connection with the Acquisition) for issuance under the 2016 and 2017 Plans on a combined basis. The Company began granting stock options and restricted stock awards in the second quarter of 2017. During the year ended December 31, 2017, 365,716 stock options for shares of common stock were granted to directors and consultants at a weighted average exercise price of $0.035 per share. The stock options granted during the year ended December 31, 2017 had a weighted average grant date fair value of $0.014 per share with various vesting periods and expire in ten years from the date of grant. In addition, the Company issued 215,453 shares of restricted common stock at a grant date fair value of $0.034 with performance vesting conditions from the 2016 Plan during the year ended December 31, 2017. All performance vesting conditions for the restricted common stock were met and there were no unvested shares as of December 31, 2017. Compensation expense associated with restricted common stock shares was $7,220.

  

The following table summarizes the Company’s stock option plan activity for the years ended December 31, 2017 as follows:

 

        Weighted-    
     Weighted  Average    
     Average  Remaining  Aggregate 
  Number of  Exercise  Contractual  Intrinsic 
  Options  Price  Term (years)  Value(1) 
             
Outstanding at December 31, 2016  —  $—   —  $— 
Granted  365,716  $0.03   —   — 
Exercised  —  $—   —   — 
Forfeited/Cancelled  —  $—   —   — 
Outstanding at December 31, 2017  365,716  $0.03   9.3  $908,920
Vested and exercisable at December 31, 2017  365,716  $0.03   9.3  $908,920
Vested and expected to vest at December 31, 2017  365,716  $0.03   9.3  $908,920

 

 

(1)The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of our common stock as of December 31, 2017 of $2.52 per share, respectively.

 

Stock-based compensation expense, including stock options and restricted stock, was included in general and administrative and research and development costs as follows in the accompanying consolidated statements of operations:

 

  2017 
General and administrative $2,065 
Research and development  74,729 
Total stock-based compensation $76,794 

  

The weighted-average assumptions used in the Black-Scholes option-pricing model are as follows for the stock options granted during the year ended December 31, 2017:

 

  2017 
    
Expected stock price volatility  47.8%
Expected life of options (years)  5.0 
Expected dividend yield  0%
Risk free interest rate  1.9%

 

During the year ended December 31, 2017, 365,716 stock options and 215,453 restricted stock awards vested, respectively. The weighted average grant date fair value per share of options and restricted stock awards vesting during the year ended December 31, 2017 was $0.014 and $0.034, respectively. No stock options were forfeited during the year ended December 31, 2017. As of December 31, 2017, 1,711,096 shares were available for future issuance on a combined basis under the 2016 and 2017 Plans.