Stockholders’ equity

In May 2018, the Company’s shareholders approved a reduction in the number of authorized shares of stock from 240 million to 55 million, of which 5 million are authorized as preferred stock and 50 million as common stock.

Recent issuances

In January 2018, the Company completed a public offering of 3,692,307 Common Shares and warrants for 4,246,153 Common Shares. Net proceeds to the Company were $10.6 million after deducting discounts, fees, and expenses. Intrexon Corporation, the Company’s majority shareholder, participated in the offering, purchasing 1,538,461 Common Shares and warrants for 1,538,461 Common Shares for gross proceeds of $5.0 million.

As of June 30, 2018, the Company has issued 249,824 Common Shares in conjunction with the exercise of warrants, with total proceeds of $811,928.

Warrants

In connection with a public offering of Common Shares that was completed in January 2018, the Company issued warrants to purchase 4,246,153 Common Shares. Each warrant has an exercise price per share of $3.25, is immediately exercisable, and will expire five years from the date of issuance. The following table summarizes information about outstanding warrants at June 30, 2018:



	Number of warrant shares		Weighted average exercise price
Outstanding at December 31, 2017	—		$	—
Issued	4,246,153		3.25
Exercised	(249,824	)	3.25
Outstanding at June 30, 2018	3,996,329			$3.25
Exercisable at June 30, 2018	3,996,329			$3.25

Share-based compensation

Restricted stock

A summary of the Company’s unvested shares of restricted stock as of June 30, 2018, is as follows:



	Shares		Weighted average grant date fair value
Unvested at December 31, 2017	2,697			$11.37
Granted	11,151		2.50
Vested	(2,318	)	5.93
Unvested at June 30, 2018	11,530			$3.88

During the six months ended June 30, 2018 and 2017, the Company expensed $13,664 and $12,070, respectively, related to the Chairman’s restricted stock awards. At June 30, 2018, the balance of unearned share-based compensation to be expensed in future periods related to the restricted stock awards is $44,649. The period over which the unearned share-based compensation is expected to be earned is approximately 2.7 years.

Stock options

The Company’s option activity is summarized as follows:



	Number of options		Weighted average exercise price
Outstanding at December 31, 2017	227,203			$9.39
Issued	113,561		2.50
Expired	(800	)	9.90
Outstanding at June 30, 2018	339,964			$7.09
Exercisable at June 30, 2018	238,943			$7.76

Unless otherwise indicated, options issued to employees, members of the Board of Directors, and non-employees are vested over one to three years and are exercisable for a term of ten years from the date of issuance.

The weighted average fair value of stock options granted during the six months ended June 30, 2018, was $1.65. The total intrinsic value of all options outstanding was $96,636 and $17,454 at June 30, 2018, and December 31, 2017, respectively. The total intrinsic value of exercisable options was $34,141 and $17,454 at June 30, 2018, and December 31, 2017, respectively.

The following table summarizes information about options outstanding and exercisable at June 30, 2018:



Weighted average exercise price of outstanding options	Number of options outstanding	Weighted average remaining estimated life (in years)	Number of options exercisable	Weighted average exercise price of outstanding and exercisable options
$2.50 - $5.70	204,034	6.1	128,739
$6.90 - $9.60	53,175	4.2	53,175
$10.50 - $10.80	4,000	5.6	4,000
$14.20 - $23.40	78,755	7.7	53,029
	339,964		238,943	$7.76

Total share-based compensation on stock-option grants amounted to $106,425 and $36,682 for the six months ended June 30, 2018 and 2017, respectively. At June 30, 2018, the balance of unearned share-based compensation to be expensed in future periods related to unvested share-based awards was $240,916. The period over which the unearned share-based compensation is expected to be earned is approximately 1.7 years.